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ACKNOWLEDGEMENT

I here express my gratitude to Mr. Bhaskar Majumdar and Mr. Suchitto Shome, both of whom are faculty

members of Asian Council of Logistics Management, for their valuable comment and advice in course of our  personal discussion on various aspects of the topic. I am also indebted to Mr. R.K. Biswas, course co-ordinator of 

ACLM, and Mr. Bhaskar Chaudhury, Vice President of ACLM, for their stimulating words on our course and to

 popularize the logistic management.

My sincere thanks are also due to Mr. Bhaskar Chakraborty, Material Manager, NATCO Plant, EIIL, for 

choosing an appropriate topic for my project. I remain ever grateful to Mr. Bipul Mukherjee, Plant Manager, NATCO, EIIL, for his cordial behavior to me.

I also offer my thanks to every member of material department, Mr. Amit Roy, Mr. Ram Pal, Mr. Rajib

Majumdar, Mr. Soumya Dalal, and others, for their council and active help at every stages of my work.

Finally I want to share my love with everybody of NATCO plant, who provided me a fantastic environment

for my project work.

SOUGATA BISWAS

(ASIAN COUNCIL OF LOGISTICS MANAGEMENT)

 

OPTIMIZATION OF SPACE IN STORES

 PREPARED BY 

 SOUGATA BISWAS 

(ASIAN COUNCIL OF LOGISTICS MANAGEMENT)

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ACKNOWLEDGEMENT

I here express my gratitude to Mr. Bhaskar Majumdar and Mr. Suchitto Shome, both of whom are faculty

members of Asian Council of Logistics Management, for their valuable comment and advice in course of our  personal discussion on various aspects of the topic.

I am also indebted to Mr. R.K. Biswas, course co-coordinator of ACLM, and Mr. Bhaskar Chaudhury,Vice President of ACLM,Dr S. K. Bhattacharya,Secretary of ACLM,Mr P. M. U. Menon, President of ACLM, for 

their stimulating words on our course and to popularize the logistic management.

My sincere thanks are also due to Mr. Bhaskar Chakraborty, Material Manager, NATCO Plant, EIIL, for 

choosing an appropriate topic for my project. I remain ever grateful to Mr. Bipul Mukherjee, Plant Manager,

 NATCO, EIIL, for his cordial behavior to me.

I also offer my thanks to every member of material department, Mr. Amit Roy, Mr. Ram Pal, Mr. RajibMajumdar, Mr. Soumya Dalal, and others, for their council and active help at every stages of my work.

Finally I want to share my love with everybody of NATCO plant, who provided me a fantastic environment

for my project work.

SOUGATA BISWAS

(ASIAN COUNCIL OF LOGISTICS MANAGEMENT)

  Roll No. – 26

Session – 2002 – 2003.

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Preface

Economic policy of the Government of India has been changed since the early days of 90’s. Since then, theIndian Economy is under the process of reformation. This process of reformation has connected India in the world

economy affairs in a much wider magnitude than that of the days before ’91. As a result of that, both industry and

market are facing the challenges of new changed environment.

The market is now open for all and globalize and volatile in nature. So a huge competition is there. Thischanging scenario has changed the type of competition in market and rivalry of the different firms most of those are

monopolistically competitive or oligopolistic in nature.

But change can be implemented easily when tough times reign. Companies in India have been looking at

ways of cutting costs and improving process efficiencies, in their quest to become globally competitive.

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CONTENT

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INTRODUCTION

Cost associated with store space utilization are regarded by accounting department as fixed cost, it is often

overlooked however, that it can be an area of tremendous savings if used efficiently. Store space should be thought

of as a variable as in labor, supplies and utilities, with the same implication that something can and should be done

to control it. Store space utilization has became increasingly important in today’s world of reduce cost and

maximized assets. The total cost of store worker with fringe benefits is about the equivalent of the cost of the leasing

10000 sqft. Of space. Of course it varies, but it does highlight the importance of space.

Storage and handling includes the total storing facility. This is typically 6% of total inventory carrying cost. Thetotal cost in this respect to the company is 35% per annum of the value of inventory held or 3% a month.

So it is clear that optimization of space obviously reduce the cost of the company.

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Store functions: -

The stores functions are a vital limb of many of the organizations and industrial concerns and various department. In

view of this wide range there are many variations in application. The relative importance of the stores function

depends upon the nature and size of the industry or activity concerned and in all cases it must be designed to suit the particular needs of the organization it serves. There is no tailor-made or a hide bound system applicable to all

organizations. Thus there is no standard system applicable to all organizations. However, there are some basic andfundamental which must be borne in mind.

The functions of a store can be dividing into

A) Primary functions.

B) Secondary functions.

A) Primary functions: -

The primary functions of the store are to provide a service to the operating functions and this must be fully

appreciated. All other activities although they have their own merits, are subordinate to the main objective.

i) To make available a balance flow of raw material components, tools, equipments and other 

consumable stores as when required for operations.

ii) To provide maintains of materials, spare parts and general stores as and when required.iii) To receive stock and issue finished products.

iv) To arrange for collection, acceptance of scrap and other discarded materials for disposal.v) To arrange for retrieval of components form out of the scrap materials

B) Secondary functions: -

i) Receipt, inspection and acceptance.

ii) Stores accounting.

iii) Stock control.

iv) Feedback information to Material Control Section.v) Help in standardization, classification, codification and variety reduction.

vi) Service information such as

a) Demands for materials and parts giving specification, quantities and deliveries required.

 b) Notifications when stocks are running low.

C) Details of deliveries rejected for quantity and quality.

d) Certification of invoice for quantity and quality.

e) Particulars of anticipated changes in consumption.

f) Warnings of items urgently required for breakdowns.

g) Listing of obsolete, surplus and scrap materials for disposal.

Objectives of optimization of space in stores: -

To more products in a given space you must make

i) Maximum use of building cube.

ii) Effective use of time, labor and equipments.

iii) Ready accessibility of all items.iv) Rapid, easy movement of materials.

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v) Positive item identification.

vi) Maximum protection of materials.

vii) Neat and orderly appearance.

viii) Better use of total overhead space.

ix) Reduce Aisle sizes.

x) Deep pallet storage.

xi) Stake pallet on stock of each other.xii) Store high cube/high movement product in one reserved area of the warehouse.

Maximum use of L-ways for free movement of fork liftUnit of measurement: -

To measure the efficiency of space in stores we use the space ratio as a unit.

Cubic unit of utilized space

Space ratio = X 100

Cubic unit of total space

The space ratio is applied to storage and warehouse operations. A space ratio of 60% in a store would represent afavorable figure.

DIFFERENT MATERIAL HANDLING EQUIPMENTS

XL Live storage racking

Order picking or 'live storage' systems are used for high-density storage of products, which need to be stored and

dispatched with a first in, first-out capability.

Pallet live storage combines good space utilization with automatic stock rotation for palletized loads, making it

 particularly effective in the food industry.

It is also effective where a high number of product varieties are to be stored.

Pallets are loaded onto inclined 'lanes' of gravity rollers. When a load is taken from the picking face, the next palletrolls into position, with replenishment stock loaded at the opposite (upper) end of the lane.

Movement of the pallets within the lane is regulated by a series of speed controllers.

'Carton' live storage, for hand loaded items, operates on a similar principle, with stock loaded and picked from

inclined roller lanes tailored to the size and weight of goods stored.

Order picking time and errors are minimized with goods presented precisely at the picking face, providing anexcellent means of storage in fast-moving assembly, packing and dispatch areas.

When required, electronic picking systems can be incorporated.

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Powered mobile racking

We are going to look at powered mobile racking. This system features pallet racking fixed to bases, which move

electrically. Powered mobile racking maximizes space utilization, enabling up to 80% of the floor area to be

occupied for storage, compared with 30% for conventional wide-aisle pallet racking.

WIDE AISLE PALLET RACKING.

Wide Aisle adjustable pallet racking is the most widely used for storing palletized unit loads. Upright frames and

horizontal beams interlock to form the rack structure. Within the rack each pallet is supported and accessible. Pallet

racking arranged in a wide aisle pattern, requires no specialized handling equipment. Arranged this way it gives highquality storage but may only utilize 40% of the floor space. However, fast throughput and ease of loading and

unloading make this type of storage extremely popular.

 NARROW AISLE PALLET RACKING.

 Narrow Aisle racking systems have aisles around 1.6 meters wide. This frees up to 45% of the floor space given

over to aisles in a wide aisle scheme. The net result is a dramatic increase in space utilization. Each pallet issupported which means that stock rotation and accessibility is as good as a wide aisle system.

PUSH BACK PALLET RACKING

 

Push Back pallet racking is a product that combines the benefits of drive-in racking with pallet live storage. Using

 pushback you can access up to four pallets deep from one face. Ideally suited to order picking operations it enables

areas of rack backing onto a wall to be fully utilized.

Push back comprises special rack beams and push back sub frames running from front to back in each bay. Thefabricated sub frames have wheels that run in captive tracks, and as the rear rack beam is slightly higher than the

front the sub frame comes to rest at the front of the bay.

When a standard forklift truck places the first pallet in a bay it sits on the sub frame. Putting a second pallet into the bay pushes the pallet on the sub frame back. Lowering the pallet onto the beams prevents the first pallet from rolling

forward.

The pushback frames support the pallet around its perimeter so it moves easily, either when being pushed back or 

once the front pallet is removed. Gravity does the rest; remove the front pallet and the rear pallet rolls forward

slowly and safely.

DRIVE-IN PALLET RACKING

Eliminating aisles from within the pallet racking system produces a high storage density at the expense of 

selectivity. The first pallet into a lane will be the last out. However, if pallets are received and dispatched in batches

this is not a disadvantage. Each pallet is supported so damage from crushing is eliminated.

Speed of operation is good with standard forklift trucks driving into the lanes to pick and place pallets. It can befurther increased by the provision of lead-in rails and guidance rails within the lanes.

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HEAVY DUTY SYSTEM COMPONENTS

Heavy-duty storage systems are one of the most widely used storage systems, primarily for pallet storage but also

for storage of goods on panels. Solutions for storage requirements for shop floor, Raw Material stores, Finished

Goods stores, … for virtually any workplace that you may need, is possible with Godrej HDS components.

The versatility of the components ensures that they can be configured to make any type of unit, single tier or 2 tiers.

Godrej HDS systems can be especially used for palletized storage with 100% access to the stored goods. Forklifts,

lift trucks, stacker cranes and virtually all types of material handling equipment are used for storage and retrieval,

thus giving the customers a very wide choice of storage options.

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Accessories

The vast array of accessories provides a tailor made solutionfor every storage problem, be it for storage of drums on

 beams or loose items on panels. The accessories include

drum cradle, fork entry bar, HD panels, Guided pallet

supports, column guard, etc.

Applications

Virtually all-different stores and all industries use HDS. These are used to store small parts, boxes, bins, large parts, pallets, etc.

o Raw Material stores

o WIP storage 

o Storage in the production line

o Finished Goods stores

o Automobiles 

o Defence

o Steel Plants 

o

Engineeringo Textiles 

o Consumer Durables 

o Petroleum

o Coal 

o 3rd party warehouses

 Higher Density Storage and Drive-in Racking: -

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The most efficient way of storing a lot of product in a small spaces almost certainly simple block stacking.

A large variety of different products require choice of retrieval. Many products, especially with today’s lightweight

 packaging, cannot support being stacked one on top of the other.

It is these three considerations - selectivity, rotation, and crushability - that give rise to the need for racking.Conventional beam racking is most often the adopted option, since it fulfils all the above criteria, and at an

economical cost.There are however many situations where the absolute need for space utilization outweighs other considerations and

thus dictates the solution.

Growth requiring increased capacity within an existing facility, which cannot be easily expanded;

 New buildings where land availability and/or costs limits size.

We are deliberately omitting discussion about automated systems, but these also are invariably hi-density for both

cost and control considerations.It is these circumstances that create a need for so-called hi-density systems – and there are many.

While the specific topic of this section is Drive-in racking, it must be emphasized that there is no intent to convince

you that this system is the answer to all your problems – only to present the concept.

All hi-density systems have their own particular advantages and disadvantages – and it has to be understood that

ALL are a compromise in some way or other. (If any one system were perfect, there would be no others!)

There is always a delicate balance between the factors of space utilization, selectivity, rotation, speed of throughput,

flexibility, and (not least) capital costs!

The analysis of these factors is vital, and should be tailored for each particular customer. Very seldom are onecustomer’s criteria identical to another’s.

Indeed, for any given situation, often a combination of systems is the optimum solution.

DRIVE-IN RACKING

Conventional APR is build around frames and beams.

Drive-in rack is based on frames and rails.

While APR supports it’s pallets loads on horizontal beams running left to right, and "face-approached" by the FLTfrom an aisle, Drive-in supports the pallets on rails running from front to back in a corridor normally called a "lane".

The FLT actually drives into this lane (hence the name!) to deposit or retrieve pallets - there are no horizontal left-

to-right members to impede its progress.

The racks are then arranged in blocks separated by access aisles.

The normal "aisle per pallet face" is thus eliminated, giving drive-in racking its space efficiency advantages.Uniformity of Pallet size and quality are vital considerations.

Height is limited, but with proper design can be as high as the normal Reach-truck can cater for.

The interface between handling machines and rack is an even more essential consideration than usual.

For a commonly-used ISO pallet 1200mm wide, the most-often specified aisle width is only 1350mm – providing no

more than 75mm clearance each side of the pallet!

The clear distance (width) between the inside of the rails is normally only 850mm!

It can be clearly seen that the dimensions of the FLT are absolutely crucial:It’s chassis width at ground level (it has to pass between the racks) The height of the main body (battery, engine

compartment, whatever) since this must usually pass beneath the lowest rail level; The width and height of theoverhead guard –for the same reasons; The width of the actual mast – this must pass between rails at all levels.

A comprehensive guide-rail – or even better, plinth – system is strongly recommended and nearly always used – but

this is as much to protect the racks from FLT damage as to actually guide the truck.

As far as usage is concerned, since Drive-in is one of the simplest and least expensive of the hi-density systems, it

has proved very popular – especially in the types of situations mentioned above.

Costs of Drive-in racks typically vary between approx R300Up to R500 per pallet position, depending on load specifications, height, additional complexities, etc.

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It has been used extensively in applications where large numbers of same or similar products are stored – especially

where these are in a "holding-only" type situation. In other words where the product is stored away in a large

quantity for a limited period only, and then shipped out again in large quantities.

This frequently applies to industries such as export fruit, and this business has been one of the largest users of Drive-

in racking in the W Cape in recent years.

One recently popular and often-used application in this industry is for forced, or pressure cooling of fruit prior to

containerization for export. Canvas curtains to form tunnels close of Lanes, and air cooled to the required temp isforced thru the fruit, in it’s packaging, to bring it down to temp more rapidly than would be otherwise possible. This

is not a new concept, having been used in principle for years.The difference is that Drive-in racking enables it to be carried out on multiple levels – often 3 high – instead of a

single layer on the ground.

In ambient storage, Drive-in has proved suitable for a large range of goods where shelf life & rotation are secondary

to space-saving; such as for toilet tissue, packaging, feeds & grains, dried goods, canned dog-food, and baby foods.

There are several disadvantages to Drive-in racking:a. Stock rotation is difficult – though with proper planning and control, not impossible – as we will see from

the next presentation. Each lane, no matter how deep or how high, will be limited to one product only

 b. There will inevitably occur what we call "honey-combing", whereby seldom are all available slots in the

system full of product.

c. This tends to distort the actual available capacity of the system. (Approx 75% – 80% actual occupancy is

common, although exceeded in some applications)

d. Because the trucks actually drive into the racks, the risk of damage to racks and product is far higher than

for normal racks. For the same reason the operation tends to be slower, and operator skills need to be thatmuch more well developed.

Accordingly, adequate operator training is essential – ideally by a professional training body with specificexperience with Drive-in racks.

MATERIAL RACKING PLUS HANDLING

Mobile Scissor Tables

Our range of Mobile Scissor Tables

Platform Trolleys 

A range of Platform and Heavy duty Trolleys

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Hand Pallet Trucks

Hand Pallet Trucks, available in a range of sizes and capacities. High quality robust design

Manual and Powered Stackers 

Highly practical manual and powered lift and drive stackers for effortless handling of loads to 1200kg

Safety Steps & Step mobiles

Our range of Mobile safety steps, Step mobiles and Kick-steps

Gas Cylinder Trolleys 

A range of Gas Cylinder Trolleys, ideal for Hospitals, Medical centers, Pharmaceutical companies and laboratories,also suitable for factory and industrial needs.

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Trucks and Trolleys 

A wide range of Trucks to suit most purposes

Scissor Lifts

A range of Scissor lift tables. All models comply with BS 5323 and applicable European standards, CE marked, low

voltage control circuits, key switch prevents unauthorized use. Easy push controls with emergency stops

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Sack Trucks

A wide range of Sack Trucks, covering all needs.

Roll Containers

Industrial Roll Containers, available in a wide range of sizes.

Plastic Pallets 

Industrial, Medium and Lightweight range of plastic pallets

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Hoppers

Hot or cold, heavy or light, we can provide a hopper to suit the job! Using a hopper in your process will save time &

money

Drum Handling

A wide range of Drum handling equipment

Castors 

Part of our range of castors - designed to meet most needs

 MATERIAL RACKING AND STORAGE 

Rack Protection 

Damage to racks is a major problem with accidental damage from pallets and fork trucks being a real issue in the

modern warehouse. Moderate to severe rack damage can dramatically reduce the capacity of a warehouse and maygive rise to racking collapses and injuries to operatives

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Rackingplus Short Span Shelving Range 

Here at Rackingplus.com we are able to offer a full range of Racking and Shelving products.

As Shelving tends to be better suited to individual needs, we would suggest that you contacted one of our advisers

on Tel. 01924 422282 Fax. 01924 422280.

We would also recommend that you visited our Sister site www.warehouse-systems.co.uk for further information

Racking plus Long Span Shelving Range 

As above, please view our range of long span shelving products, if you do need any help, do not hesitate to contact

us

Racking plus Long Load Racking 

A range of racks for handling long loads and board materials

Pallet Racking

Choose which make you need

Apex Pallet racking is widely regarded as one of the best pallet racking systems available. With the epoxy powder 

coat finish and light gray frame, the appearance is one that is smart and long lasting. Other makes also available

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Small Parts Bins 

Linins the tough original, large choice of sizes and colors, order now for a quick delivery

Industrial Cupboards 

Rugged industrial quality cupboards in wide range of sizes

Identification & Labeling

Aisle markers, bay signs, signs, labels, adhesive letters, racking signs,

Hazardous Storage

Hazardous storage cabinets specially designed for storage of Acid, pesticide (vented) or flammable products

(COSHH).

Drawer Cabinets

The List Range of high quality small parts drawer cabinets.

Document Document boxes and Storage system

Barrier Systems

A range of end of runs racking barriers and column guards

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CASE STUDY-I

Halfords, a Division of Boots PLC, now has a mechanism to ensure that they deliver the right store specific

 phonograms to right stores at the right time, they already had a well discipline manual store planning process.

However they took the decision to streamline the way they plan and managed their space for their portfolio of over 

400 automotive and cycle stores ranging from 14000 sqft. Super stores to 500 s ft. motorway stores.

They begun with a two dimensional CAD training generated by the property department featuring only the basic

fixture location within each of the store layout.

Halfords key business objective was to automate their process and so deliver information to store faster and with

greater accuracy and develop and instant – access space utilization system. That enables the business quickly andeasily understands how space was being utilized at both a macro level and micro level.

In addition there were a number of spin off objectives directly linked up to targeting bespoke display equipment,

merchandising units and point of sell (POS) packs to stores via the link between the planogram and store layout

information.

CASE STUDY -II

Mitsubishi group, a big company occupies tenth position according to fortune 500. MCC PTA INDIA

CORPORATION PVT. LTD. Is a subsidiary unit of Mitsubishi group situated in Haldia, West Bengal, manufacturea solid chemical product. The name of the product is Purified Terepthalic Acid (PTA). They have a big bonded

warehouse to keep packaged finished product for dispatch. The following picture shows the layout of the bondedwarehouse.

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8m

The length of the bonded warehouse is 230 m and breadth of the same is 100 m. The available is 8m. Therefore the

available space is (230m X 100m X 8m) or 184000cubic meter. The maximum capacity of the store is 65000 ton of 

the product. Whereas the plant kept the maximum of 50000 – 52000 ton. The packaging material of the product in

most of the cases is bag. Some time they use container for packaging. The weight of the loaded bag is one ton each.

The maximum capacity of the production is 56 ton per hour.

They use three types of forklifts for storing and handling of the product. The capacity of the forklift is 2.5 ton. This

is used for handling of the product. This may cover 3 m height. The width of the fork is 1 m. The forklift is used for 

stacking of the product. The capacity of this is 4 ton. It may cover 6 m height. The third type of forklift is used for loading and unloading of the product. The capacity of this is 6 ton. It may cover 6.5 m to 7m.

 Nature of stacking: -

Ground stacking - Four bags one after another.

EVEREADY INDUSTRIES INDIA LTD. (EIIL)

Eveready Industries India Ltd. (EIIL) has declared 2003 as the “Consolidation Year” for itself and as part of the

same; it has embarked on a cost control drive and sold some of its non-viable properties.

The company’s battery division sold 991 million units last year. Out of this it has exported 35 million batteries. Withthe same time the company is trying not only to retain its present market share which is at present 43.4% of the

domestic market share of 22 billion annually, but also to increase the market share where as the projected market

sale is 1.5 billion batteries annually by the end of 2005.On the export front the mandate is to scale up the figure to

100 million by 2005.

SPACE GIVEN FOR PIE CHART

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Plant Overview

 National Carbon Plant, Taratola is one of the six battery plants of the parent company Eveready Industries India Ltd.

This plant was set up in 1975 and was the first plant where all processes are fully integrated. The plant incorporates

the latest battery technology and high level of automation and manufacturers dry cell Leclanche batteries in two

 basic types – bare bottom paper clad for flash light application, false bottom batteries for a heavy duty, transistor 

applications and multipurpose. The plant has a modern quality assurance system, which comprises of built in

quality, online process control through programmable logic controllers and computers and 100% automatic

electronic testing of the final product. The associated floor operations, materials and finished good control are done

through the mainframe computers. The Plant is also the first in Eastern India to have commissioned solar heating for  process requirements. The Plant also has a well-equipped laboratory for material inspection and a computerized

laboratory for testing final products.

The plant also has a very detailed training program for all its employees which comprises both classroom and on the

 job training to make them understand about the history of the company, business scenario, achievements it have

accomplished, future goals, TQM tools for problem solving, quality circles, suggestion schemes, etc.

Customers are well satisfied with company’s product and for this reason, Taratola amongst other plants, were

selected for manufacturing export products. The Bureau of Indian Standards for manufacture of all its batteries also

licenses the Plant.

THE PRODUCT

950, 950D, 975, 975J, 1050, LAVA, 1050D

Present production scenario

The NATCO PLANT is one of the biggest plants of EIIL. If we go by the statistics then we find that during 1999 – 

2000 financial year it produces 150 millions of batteries whereas in the immediate next year the figure goes unto 162

million and in 2001 –2002 it has managed to produce 180 million of batteries. In the last financial year it was 200

million of batteries. So it is very clear that the plant’s production capacity is on the growth path.

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SPACE GIVEN FOR BAR DIAGRAM

The core problem area

The present scenario of production and the projected growth rate shows that the company is in the growth path. Thus

in order to keep pace with this increase in production the plant’s immediate concern is to find sufficient space in its

 bonded warehouse for its finished products as well as a huge staring capacity is required for intermediate raw

materials an other accessories. But considering the current competitive scenario it will not be a wise decision to

 build up a new building for its storage capacity, unless, one is satisfied with its optimum use of spaces in its existing

warehouse. Thus it is one of the major problem areas of optimum utilization of space of all its store and warehouses.

Apart from this the plant is trying to reduce lead-time in its availability of different types of required raw materials

and thus a way of infusing efficiency in the system.

In order to ensure a continuous flow of outbound product it is necessary to establish a concrete materials availability

norms (of course considering the minimum stock holding concept). Since in most of the cases in the plant bring its

required raw materials from different vendors located in various places across the country, according to the strategic

and competitive efficiencies of the vendors.

Thus it is observed that the company has to rely heavily on the different transport agencies. But in many cases it isseen that transporters take more time to supply the raw materials and thus unnecessarily widens the lead-time, which

should be reduced to achieve better performance of the company.

Inventory Management

Inventory is a buffer between two probabilistic processes –Receipt (supply) and Issue (Demand) of 

materials. Under certainty, inventory requirement is zero, but inventory is required because of certain reasons. RawMaterial inventory enables a firm to decouple its purchasing and production activities to some extent. It provides

flexibility in purchase and production. The farm can wait for an opportune buying moment without affecting its

 production schedule. Likewise the production schedule need not be influenced by immediate purchase activity.

Similarly in – process (WIP inventory) provides flexibility in production scheduling so that an efficient schedule and

high utilization of capacity may be attained without in process inventory, a bottle neck at any stage in the production

 process render idle the machines and facilities at subsequent stages. This results in delay and idle facilities.

But since inventory is an idle asset having economic value and there are cost associated with it, having both too

much and too little, inventory management has a hey role.

The company maintains certain norms for inventory, which are prepared by highest concerning authorityscientifically considering the following;

a. Lead time analysis.

 b. Supply deviation

c. Demand deviationd. Service level

e. Risk level.

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Raw Materials

There are almost 186 raw materials (including packaging materials) among them some are imported from

abroad. These materials are categorized into three on the basis of the famous ABC analysis. For this categorizationannual value (considering standard price and annual usage requirements) of consumption of each material are

arranged in a descending order with their running cumulative totals.

All items up to 75%of cumulative total annual value of consumption (first 75%), all items falling between

75% and 90% of cumulative total annual value of consumption (next 15%), all items falling between 90% and 100%

of cumulative total annual value of consumption (last10%) are classified as ‘A’ class, ‘B’class, ‘C’ class items,

respectively.Obviously from the company’s point of view ‘A’ class items are more important than the ‘B’ class items

and similarly ‘B’ class items are more important than ‘C’ class items.

‘A’ class items

♥ Acetylene Black 50%

♥

Ammonium Chloride♥ EMD

♥ Mill Gabon

♥ 1050 HD vacuums metalized label.

♥ Zinc calot

♥ Bottom cover 

♥ 50 UMS Electrode

♥ Clear lacquered D top

‘B’ class item

♥ Asphalt

♥

Zinc Oxide♥ Gumkaraya

♥ 950 carton with 200 GSM

♥ 1050 primary carton

♥ 950D carton with 200 GSM

♥ 950D vacuum metalized label

♥ Star washer 

♥ 50 UMM Electrode

♥ 50 UMM IMCC Electrode

♥ HDPE TS cover for 950

♥ PLTD steel cap DFB type

♥ SLTD craft paper with 150 GSM

♥ Double side polycoated craft paper ♥ PVC cut tube

And the remaining items are ‘C’ class.

Another important classification is done from the point of frequency of usage of raw material. This is

known as FMS analysis. All items having 12 or more transactions per year, all items between 11 and 4 transaction

 per year and all items between 3 and 0 transactions per year are classified as ‘F’ (fast) moving, ‘M’ (medium)

moving and ‘S’ (slow) moving items respectively.

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The bonded store

Here packaged product are store for dispatch

The available length = 76 ft.

The available breadth = 40 ft.

The available height = 18 ft.

Therefore the available space = 76ft. X 40ft. X 18 ft.

= 54720 cubic ft.

Nature stacking - Row wise facing two sided walls. The products are stacked on the pallets.

The door - Length = 11 ft.Height = 12 ft.

The pallets are stacked without keeping gap between two pallets. Four rows in the right side of the door and four rows are in the left side of the door.

Two pallets are stacked one after one.

Lengthwise 19 pallets are stacked in a row. Total 8 rows.

Therefore total pallets are stacked = (19 X 2) X 8

= 304

Utilization of length = 76 ft.

Utilization of breadth = 28 ft.

Utilization of height = 6 ft.

Therefore utilization of space = (76ft.X 28ft.X 6ft.)

= 12768 cubic ft.Therefore space ratio =(12768 cubic ft./ 54720 cubic ft.) X 100

= 23.33 %

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Carton and container store

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The major portion of the store now days are used for packaged finished product. Here also utilized height is 6ft.

Available length = 60ft.

Available breadth = 47ft.Available height = 18ft.

Therefore available space = 50760cubic ft.

Here lengthwise 14 pallets are stacked and breadth wise 13 pallets are stacked.Therefore utilized space = 56ft. X 45.5ft. X 6ft.

= 15288 cubic ft.

Therefore space ratio =(15288cu.ft. /50760 cu.ft.) X 100= 30.12%

Ageing store

Here the batteries are store in 3ft. X 3ft. pallets for ageing. 3days ageing is required for DFB type and 4days ageing

is required for DBB type battery. Each pallet contains approximately 650 units. Stacking of 10 pallets. Utilization of 

height is only 4ft.

Available length = 100 ft.

Available breadth = 64 ft.Available height = 18 ft.

Therefore available space = 115200 cubic ft.

Utilized length = 96 ft.

Utilized breadth = 60 ft.Utilized height = 4 ft.

Therefore utilized space = 23040 cubic ft.

Therefore space ratio =(23040cu.ft. /115200 cu.ft.) X 100 = 20%

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Raw material store (mixing)

Available length = 96 ft.

Available breadth = 64 ft.

Available height = 18 ft.

Therefore available space = 110592 cubic ft.

The materials, which are stacked here: -

I) AC Black 50%

ii) Mill Gaboniii) EMD

iv) 50 UMS Electrode

iv) 50 UMM Electrode

v) Different types manganese

AC Black is placed facing the wall of 64 ft. and it takes 24 ft. in lengthwise. After that different types of 

Manganese are stacked in row wise taking almost 28ft. Of the total 64 ft. of the breadth area and it is followed

 by mill Gabon in the same manner. One should note that out of this 60 ft. X 30ft. area, manganese takes almosttwo third of the area and rest is for Gabon. Besides this, electrode and EMD are stacked columned wise with the

area 48ft. X 16ft. and the remaining area in the store is kept for passage of movement of goods and forklift.

The height utilized for AC Black is 12 ft. and for the manganese and Gabon is 6 stands for the rest it is 8 ft.

Therefore utilized space =(64ft.X24ft.X12ft.)+(48ft.X 28ft.X6ft.)+(48ft.X16ft.X8ft.)

=(18432+8064+6144) cubic ft.

= 32640cubic ft.

Therefore the space ratio =(32640cu.ft. /110592 cu.ft.) X 100

= 29.51 % 

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Different material handling equipments

1. Forklift : - There are three forklifts which are used for material handling and stacking.

Length = 12 ft.

Breadth = 5 ft.

Height = 8 ft.

The capacity of the forklift is 3 ton. And the capacity to lift the fork up to 15ft.height. The

movement of the forklift within the factory is smooth. It can go back where necessary. The only

disadvantage is it takes more space to move.

2. Hand cart: - These are use for lightweight material and used in narrow space where movement of 

forklift is impossible.E.g. handling cartons and containers.

3. Pallets: - There are different types of pallets use for stacking. The most popular pallet is of 4ft.

long, 3.5ft.wide and 0.5ft. Height. These are used for stacking of heavy raw materials and

 packaged finished goods.

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Another type of pallet is of three ft. long, 2.5ft. Wide and 0.3ft. Height. These are used for ageing

the batteries.

4.: - These are used for stacking vent washer and top washer.

Raw Material Store (Paste)

Available length = 56ft.

Available breadth = 30ft.

Available height = 18ft.

Therefore available space = (56ft.X 30ft. X 18ft.)

= 30240 cubic ft.

The materials stacked here

i. Ammonium chlorideii. Corn starch

iii. Rice flour  iv. Wheat flour  

Here also 6ft. Height is utilized