Download pdf - Warehousing in manufacturing

8/7/2019 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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Product mixing


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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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