Warehousing in manufacturing
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Transcript of Warehousing in manufacturing
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WAREHOUSINGKrishnadeep Gupta Bhupesh Chetan
Anchal Gautam Gautam Sood
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Warehousing - Definition
Storage of goods.
Includes a wide spectrum of facilities and locations that provide
warehousing, including
the storage of finished goods in the production facility;
the storage of raw materials, industrial goods, and finished
goods while they are in transport.
APICS dictionary defines warehousing as the activities related to
receiving, storing, and shipping materials to and from production or
distribution locations.
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Warehousing Role ofIT
Material direction and tracking - Warehouse Management System (WMS)
Logistics personnel use the WMS to improve warehouse efficiency.
SAP has WMS module which can be installed as a standalone system or
can be integrated with other systems.
Oracle 12i also has WMS which is enhanced by acquisition ofTMS system
from G-Log and has been rechristened as Oracle TransportationManagement.
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Modern trends & value addition
Modern trends: Just In Time (JIT)Warehouse-style retail storesASRS RFID Kiva Systems 3 PL 4 PL
Value addition by warehousing: Transportation consolidation Product mixing Cross-docking Service Protection against contingencies Smoothing
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Some Activities ofWarehouse.
Transportation consolidation
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Some Activities ofWarehouse.
Product mixing
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Some Activities ofWarehouse.
Cross Docking.
Under a cross docking system, pallet loads can be moved directly across the warehouse
floor from receiving to shipping (left). Boxes, however, first must pass through a sorting
system (right)
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ManufacturingOverview and Trends
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Definitions ofManufacturing
Manufacturing is the use of machines, tools and labour to makethings for use or sale.
OrThe transformation of raw materials into finished products,usually on a large scale
OrThe action or process of making goods systematically or on alarge scale
OrChemical, mechanical, or physical transformation of materials,substances, or components into consumer or industrial goods.
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Stages ofManufacturing
Warehousing plays an important role in various stages mentionedabove
Acts as a vital linkage between all the stages
Procurement Fabrication Assembly TestingPackage andDistribution
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Manufacturing Sector in India Growth Trends
Robust growth of 16 per cent in the manufacturing sector for February 2010 as
compared to February 2009.
Large number of companies shifting their manufacturing base to India
India has the largest number of companies, outside of Japan, that have been
recognised for excellence in quality.
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How is growth assessed for manufacturing?
Trends and issues in manufacturing and investment around the world
focus on such things as:
Nature and sources of the considerable variations that occur cross-
nationally in levels of manufacturing and wider
industrial-economic growth;
Competitiveness; and
Attractiveness to foreign direct investors.
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Reasons for the current growth
India has a rich talent pool of scientists, researchers, and engineers
along with its vast, educated English-speaking workforce and the democratic
administration
Possesses requisite skills in product, process and capital engineering
Rapidly expansion in Indias capabilities in engineering design and embedded
software development, Leverages modern-day manufacturing
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Leading Industries in India
Basic metals
Electrical machinery and apparatus
Transport equipment, other than motor vehicles
Textiles
Trailers and semi-trailers
Leather
Leather products and footwear;
Coke, refined petroleum products, nuclear fuel;
Chemicals and chemical products.
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USToy IndustryA general outlook
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USToy Industry
Dolls,Action figures, Stuffed toys, Game sets, mechanical toys Toy and hobby stores 9000 - revenue - $15 billion
Top 50 companies generate about 85 percent of revenue
Population growth among young children (under 12)
Top two Mattel (1st), Hasbro (2nd)
Net revenues - $5.918 billion and $4.021 billion (2008)
Large scale production shifted abroad reduction in employmentin toy industry from 42000 to 15000 in last 16 years
Mostly exported to Canada and Mexico almost 45%
Mostly imported from China almost 90%
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Warehouse management system- Case Study 1Hasbro
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Hasbro - Introduction
US based multinational toy and board game manufacturing
company.
Formed in 1923 by Hassenfield brothers in Pawtucket, Rhode
Island, USAOutsources much of its manufacturing to Chinese companies.
Manufacturing facilities in Ireland and Longmeadow,
Massachusetts.
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Hasbro - Warehousing
Raw material receiving warehouse that handles inbound shipments
in East Longmeadow, Massachusetts
Also store the finished toys here.
Total area under these two warehouses >250000 sq feet
More than 50 personnel have been employed for operations.
It implemented SAP warehouse management module in 1998 for
itsRM
andWIP
warehousing operations. Hasbro further integrated SAPs WM to RF system by Teklogix Inc.
The RF system communicates with modules on vehicles as well as
the ones with the workers handheld units.
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Hasbro - Advantages
Workers were now able to update inventory counts in real time via
RF transmissions. The WMS was also updated real time.
This boosted efficiency of the inbound warehouse operations.
Paperless processes have saved 16 man hours of labor per shift.
CSF of the WMS and RF integration
Teknologixs training and field support
In house experts trained by Teknologix
Implementation of project in phases
Adequate Human Resources deployment
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Indian Automobile IndustryA General Outlook
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Indian Automobile Industry
Seventh Largest in the world
annual production of over 2.6 million units in 2009
By 2050, the country is expected to top the world in car volumes
Rankings (sales wise) Maruti Suzuki, Hyundai, Tata Motors
Electric Car manufacturers Mahindra, REVA, Tata
Recent trends Rs. 1 L range cars Tata Nano
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Average Annual Growth Rates in MajorAutomobileCompanies
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Warehousing Management System- Case StudyMaruti Udyog Limited
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Maruti Udyog Ltd
Largest passenger car manufacturer in India
Annual capacity of 1 Million cars - Turnover of $5 billion
Ability to rollout a car in 45 min
Exporting Cars to various countries
Single Spares Distribution Center for the entire country-Annual spares
turnover of $300 million
Heavy Inbound and Outbound material flow
In-house developed ERP System
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Maruti Udyog Limited - Challenge
A system to manage their end to end spares supply chain execution
Highly scalable supply chain to meet the peaks in market demand
Sub optimal Warehouse Layout - Long Process to bin a material
High rate ofInventory discrepancies
One Part-one Location
Not having any systematic Process in Material Handling
High rate ofManual errors
Discrepancy between items ordered and items shipped to dealers
Absence of real time data during binning and picking operations
Pack list not available content of shipping carton not verifiable
Long Order execution time
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Maruti Udyog Limited The Solution
Decided to revamp its spares distribution operations and implementMARC Warehouse Management System
FloorWise Implementation
Fast-breakApproach for initial phase
Thin Client Installation
Barcode and Dot Matrix Printers
Re-printing option for all the reports on a specified printer using MARC
Run SQL Procedures
One Hub and one print server for each floor
Wedge Scanners to scan Barcodes
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Maruti Udyog Limited - Benefits
W
ell organizedW
arehouse Layout Systematic Process to bin a material
Group Picking,Accurate Inventory Control
O
neP
art-one Location (Fixed Bin) along with Dynamic Locationallocation and Replenishment concepts
System Driven Processing/Material Handling/Containerization
Quick Order execution time (6-8hrs REG & 2-3 hrs VOR)
Minimal scope ofManual errors & Inventory discrepancies
Real time inventory status visibility
High accuracy in order shipping
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THANK YOU