PROJECT ON

OUTBOUND LOGISTIC MANAGEMENT

AT

INDIAN PETROCHEMICALS CORPORATION LIMITED

A Project Report Submitted in Partial Fulfillment of award of MBA e!ree Project Guide Mr. G. Vijaya !Sr. Ma a"er# MOP$ IPCL

Su%&itted By Mita'i S(a( Ro'' No ) *+

AES POST GRADUATE INSTITUTE O, BUSINESS MANAGEMENT AHMEDABAD -UL. /001

S"MMER TRA#N#N$ REPORT ON OUTBOUND LOGISTIC MANAGEMENT AT

INDIAN PETROCHEMICAL CORPORATION LIMITED VADODARA

GUIDED B. Mr. G. Vijaya Sr. Ma a"er# MOP IPCL# VADODARA

SUBMITTED B. Mita'i S(a( AES PGIBM AHMEDABAD

AC2NO3LEDGEMENT
#t !i&e' me !reat plea'ure and per'onal 'ati'faction in pre'entin! t(i' report a' a part of m) &ocational trainin! at #ndian Petroc(emical' Corporation *imited t(at (a' !i&en me fir't (and e+perience of t(e Corporate ,orld# am indebted to man) indi&idual' w(o (a&e eit(er directl) or indirectl) made an important contribution in t(e preparation of t(i' report- # am !rateful to Dr.A.H.2a'ro. ean of AES P$#BM. for !i&in! me opportunit) to e+perience t(e corporate world- # am al'o !rateful to m) facultie'. Mr.Maya 4 -o5(i6ura and Mi55 -i a' Pari4( for t(eir !uidance-

,it( immen'e 'en'e of !ratitude. # (ereb) ta/e t(i' opportunit) to t(an/ m) !uide and mentor. Mr. G Vijaya !Se ior Ma a"er ) MOP$# Mr. -. 2. S&art !Head o7 t(e Mar4eti " O6eratio 5 a d P'a i "$# Mr.B.-.C(a8da !G.M.9MOP$ and Mr. M. A. 2(a !Trai i " Ma a"er$ for t(eir /ind contribution in m) trainin!-

# would li/e to t(an/ t(e entire 'taff of MOP for t(eir immen'e 'upport- # would al'o li/e to t(an/ all t(e re'pondent' w(o'e name' are not mentioned (ere. wit(out w(om t(e report would not (a&e been completed*a't but not t(e lea't # would li/e to place 'pecial t(an/' to m) parent' and friend' for t(eir 'upport-

PRE,ACE
$lobali1ation (a' u'(ered in new c(allen!e' and t(e #ndian companie' are facin! (i!(er le&el' of competition in t(e mar/et place. not onl) from t(e local pla)er' but al'o from all or!ani1ed MNC'- To be 'ucce''ful. t(e be't companie' will (a&e to be 'mart in mana!in! t(e 2 bu'ine'' re'ource' of Man. Material. Mone) and #nformation- Effecti&e plannin! and efficient mana!ement of flow of material and related information from t(e 'upplier to t(e cu'tomer t(rou!( t(e or!ani1ation form' t(e major re'pon'ibilit) of Suppl) C(ain Mana!ementT(e two mont(' e+po'ure to t(e 3Outbound *o!i'tic Mana!ement4 at #ndian Petroc(emical' Corporation *imited 5#PC*6. one of t(e lar!e't petroc(emical' compan) in #ndia (a' !i&en me 'ufficient /nowled!e to feel t(e !ap between t(e t(eoretical and practical /nowled!e- # !ot to /now (ow #PC* carrie' out it' tran'portation of !ood' t(rou!( air. road and water route'. t(e importance of contract between t(e compan) and t(e tran'port a!enc). dome'tic and !lobal e+port procedure'. promotional acti&itie'. pricin! policie'. ware(ou'in! etcurin! m) trainin! pro!ramme # !ot to /now t(at t(eoretical /nowled!e doe'n4t alwa)' wor/out in practical life- For e+ample7 '(orte't route of tran'portation ma) not alwa)' be economical- # (a&e learnt man) more a'pect' re8uired to mould t(e per'onalit) of a mana!ement 'tudent t(at i' not tau!(t in an) cla''roomA' a part of m) trainin!. # wa' !i&en t(e re'pon'ibilit) to 'ol&e t(e problem of (i!( c)cle time between t(e procedure' of TO* to #N9O#CE at * PE ware(ou'e- Ba'ed on ob'er&ation in t(e ware(ou'e. 'e&eral recommendation' are !i&en at t(e end of t(e report to impro&e c)cle time- T(i' would (elp t(e compan) to 'a&e (i!( co't incurred due to improper mana!ement-

E:ECUTIVE SUMMAR.
# (ad wonderful e+perience of under!oin! trainin! at #ndia4' one of t(e lar!e't Petroc(emical' Compan). #PC* for t(e period of : wee/' a' a part of m) MBA curriculum- T(e project # (ad ta/en up wa' pertainin! to t(e 'tud) of outbound lo!i'tic' of #ndu'trial Product'*o!i'tic' in an) or!ani1ation form' t(e foundation of t(e Mar/etin! epartment- #t i'

in&ol&ed in t(e ware(ou'in! and di'patc( of &ariou' product' produced in t(e compan)4' premi'e'- T(e 'trate!ic plannin! in&ol&e' di'patc( of t(e material' w(ic( 'moot(en' t(e function of *o!i'tic'ue to !lobali1ation. t(e lo!i'tic acti&it) (a' under!one a dra'tic c(an!e- #t (a' been modified to 'uc( an e+tent 'o a' to facilitate t(e a&ailabilit) of t(e product' to t(e cu'tomer' in t(e be't po''ible manner#PC* (a' an e+cellent lo!i'tic' ')'tem for t(e di'patc( of it' product' w(ic( en'ure' t(e a&ailabilit) of t(e product' to t(e cu'tomer' on time- T(e newl) introduced ERP ')'tem 3SAP4 inte!rate' different department' of #PC* facilitatin! t(e lo!i'tic function for t(e di'patc( of 'olid and li8uid product'#t i' ob&iou' t(at #PC*4' *o!i'tic' ')'tem' are benc(mar/ed a' one of t(e be't in t(eir cate!or) of #ndu'tr) on worldwide ba'i'- T(e practical /nowled!e t(at # (a&e !ained durin! m) trainin! (a' broadened m) &iew about *o!i'tic'- #t (a' (elped me to under'tand t(e topic of m) 'tud) t(orou!(l)-

INDE:

SrNo<%02;?>:@<=<<<%<0<2<;<?<><:<@%=Content' Compan) Profile Product Portfolio #ntroduction to Mar/etin! of #PC* Mar/etin! and Operation Plannin! 5MOP6 Order Proce'' Procedure Solid Product C)cle Mo&ement T(rou!( SAP i'tribution C(annel at #PC* #ntroduction to *o!i'tic' Outbound *o!i'tic' at #PC* Tran'portation at #PC* #nternational Trade E+port Procedure *o!i'tic Support' Mar/etin! Pricin! Policie' and Promotional Mea'ure' ,are(ou'in! Role of $o&ernment in *o!i'tic' Time Motion Stud) $lo''ar) Biblio!rap() Anne+ure

Pa!e No=> 0: 2> ;0 ;; ;? ?< ?0 ?2 ?? >< >? :< :0 :2 :: :@ @2 @; @?

COMPAN. PRO,ILE

IPCL ) I dia Petroc(e&ica' Cor6oratio Li&ited

T(e #ndian Petroc(emical #ndu'tr) went t(rou!( a lon! and turbulent !e'tation period- T(e need for de&elopment of petroc(emical indu'tr) in #ndia wa' (i!(li!(ted and re&iewed b) Aane Committee a' earl) a' in <@?<-All effort' and plan' t(ereafter

>

failed to !ain momentum- Se&eral international or!ani1ation' li/e "nion Carbide. ow C(emical'. P(ilip' Petroleum. #mperial C(emical'. Standard Oil. Burma S(ell etc-. propo'ed to participate onl) to wit(draw 'ub'e8uentl)- #t 'oon became apparent t(at t(e ma''i&e commitment. to manufacture t(e ba'ic buildin! bloc/' and intermediate' for petroc(emical' mu't come from !o&ernment it'elf- #PC* wa' a manife'tation of t(at 'eriou' commitment#PC* pioneerin! Petroc(emical' Compan) in #ndia wa' incorporated on Marc( %%. <@?@- #PC*4' bu'ine'' compri'e' of pol)mer'. fibre. fibre intermediate'. ')nt(etic rubber. commodit) c(emical'. 'urfactant'. catal)'t' and ad'orbent' bac/ed b) inno&ation from it' tec(nolo!) mana!ement centre. re'earc( centre and product application center'- T(e compan) i' continuou'l) up!radin! it' product' and proce''e'- T(e compan) own' and operate' 0 petroc(emical' comple+- A nap(t(a ba'ed comple+ at 9adodara and a !a' ba'ed comple+ eac( at Na!ot(ane and $and(arT(e compan) produced more t(an o&er a million tone' of merc(ant product'. and !enerate' a turno&er clo'ed to R'-<==billionReliance Petroin&e'tment' *td- 5RPi*6 ac8uired %?B of t(e total &otin! capital of #PC* and mana!ement control at a price of R'-%0< per '(are from t(e !o&ernment of #ndia- RPi* i' a member of Reliance $roup. founded b) i' t(e 'in!le lar!e't di'in&e'tment till dateSub'e8uentl) RPi* made an open offer to '(are(older' of #PC* and ac8uired additional %=B of t(e total &otin! capital- RPiL toda) (a' *1; e<uity 5ta4e in t(e compan)(irub(ai C- Ambani- T(i'

T(e Reliance $roup4' petroc(emical' bu'ine'' i' conducted t(rou!( Reliance #ndu'trie' *imited. w(ic( i' #ndia4' lar!e't pri&ate 'ector compan) in term' of a''et'. re&enue and profit amon! ot(er'(irub(ai4' pioneerin! &i'ion and o&er t(ree decade' of 'ucce''ful operation in!rain in #PC* a uni8ue le&el of e+perti'e. ma/in! t(e compan) competentl) en!ineered for t(e future- T(e Reliance $roup i' t(e leader in t(e petroc(emical' indu'tr) in #ndia. and #PC* a' a 'i!nificant pla)er in t(i' bu'ine''. enjo)' certain ')ner!ie' wit( t(e Reliance $roup- A' a re'ult of t(e ac8ui'ition of mana!ement control b) RPi*. #PC*4' credit ratin! (a' ri'en from AAD 5AA minu'6 to AA-

BOARD O, DIRECTORS

No&i ee5 o7 Re'ia ce Petro i 8e5t&e t Ltd. Mr- Mu/e'( - Ambani E C(airman Mr- Ni/(il R- Me'wani Mr- Anand J Jain Mr- Aamal P- Nana&at) Mr- S- A- Anand Go8er &e t o7 I dia o&i ee5 Mr- $ S Sad(u Mr- Rame'( #- Sin!( I de6e de t Director5 Mr- *alit B(a'in Mr- S(aile'( 9- Carib(a/ti Mr- Sandeep C- J(unar/ar Mr- R- S- *od(a Re"i5tered O77ice P-O- Petroc(emical' 9adodara E 0@<02? $ujarat #ndia-

IMPROVEMENT POST CHANGE IN MANAGEMENT CONTROL

<=

T(e new mana!ement team (a' reDendor'ed t(e compan)4' mi''ion to create &alue for all 'ta/e(older'- All out effort' are bein! made to en(ance producti&it) and control co't for 'uperior &alue additionT(e p()'ical and cultural inte!ration of #PC* and Reliance re'ulted in adoptin! FBe't Practice'G from eac( ot(er- T(i' led to optimal utili1ation of a&ailable re'ource' for en(ancin! producti&it)T(e benefit' of c(an!e in mana!ement control are &i'ible from t(e compan)4' performance in t(e &er) fir't )ear after t(e ac8ui'itionurin! t(e )ear %==%D=0. #PC*4' t(ree manufacturin! 'ite'. namel). 9adodara Comple+. $and(ar Comple+ and Na!ot(ane Comple+ (a&e recorded <2B. %@B and @B increa'e in production capacit) o&er t(e pre&iou' )ear. re'ultin! in o&erall production !rowt( of <:BStep' (a&e been ta/en to utili1e all internall) a&ailable ()drocarbon' a' feed'toc/ or fuel. t(ereb) reducin! e+ternal purc(a'e'- T(i' (a' re'ulted in 'i!nificant 'a&in!'A compre(en'i&e linear pro!rammin! model for t(e entire compan) (a' been de&eloped and implemented for optimi1in! manufacturin! operation' of all t(e t(ree Comple+e',it( !reater focu' and proacti&e action ta/en b) t(e compan). t(e 'pecific ener!) inde+ of t(e compan) (a' come down to 0-?; mmAcal per MT of product from t(e earlier 0->? mmAcal per MT of product-

<<

Net 'ale' for all major product' (a&e increa'ed to t(e pre&iou' )ear. a' a re'ult of initiati&e' for 'tren!t(enin! cu'tomer relation'(ip'- T(i' (a' contributed to impro&ement in operatin! mar!in'T(e #T facilitie' and M#S (a&e been reca't in line wit( t(e be't 'tandard'. and SAP ')'tem (a' been introduced in all t(ree comple+e' wit( attendant benefit' of en(anced efficienc) at all le&el'T(e compan) and it' '(are(older'. wor/er' and emplo)ee' will continue to !et benefit from Reliance4' pro&en &i'ion and mana!ement 'tren!t('. e'tabli'(ed project e+ecution capabilitie'. and demon'trated trac/ record of con'i'tent operational and financial performance- T(e compan) will al'o !et 'i!nificantl) benefited from Reliance4' financial en!ineerin! '/ill'. it' capabilit) to acce'' capital at t(e mo't competiti&e term' and optimi1e financial co't'T(e compan) will be in a po'ition to le&era!e Reliance4' pro&en capabilitie' of ac(ie&in! optimal plant capacit) utili1ation. t(rou!( operational efficiencie'. and low co't deDbottlenec/in! of capacitie'- T(e compan) will al'o enjo) t(e benefit of Reliance4' 'tron! relation'(ip wit( cu'tomer'. tec(nolo!) and e8uipment 'upplier' and ot(er con'tituent'. in t(e dome'tic and international mar/et'-

<%

REVIE3 O, PER,ORMANCE

/00=90/ Production $ro'' Turno&er 0->=MT

/00/90> 2-2=MT

/00>90* 2-?=MT R'-<0;2< crore 5"S H 0=@> m6 R'-%>0 crore 5"S H ?% m6 R'->%%% crore 5"S H <?;% m6 R'-<<-=% 5"S H =-06

/00*90? ;-<:MT R'-@0:? crore 5"S H %<2? m6 R'->:? crore 5"S H <:= m6 R'->?>; crore 5"S H <>;2 m6 R'-0<-?; 5"S H =->%6

/00?901 ;-2mT R'-@;@> crore

R'-;;%>crore R'-@@%< crore 5"S H %=:@ m6 R'-<=>crore R'-%=2 crore 5"S H 20 m6 R'-:=;2 crore 5"S H <?@? m6 R'-:-%0 5"S H =-%6

Net Profit'

R'-<==; crore

Total A''et'

NA

NA

Earnin! per '(are

R'-2-00

R'-2=-2>

<0

S3OT ANAL.SIS O, IPCL

STRENGTHS MultiDproduct and MultiD*ocation S/illed and trained manpower Capti&e power plant' in all t(ree comple+e' A&ailabilit) of fund' for new project' Mar/et I product Se!mentation "tili1ation of R#* infra'tructure for e+port #SO <2==< certification for 9adodara and Na!ot(ane Comple+e' 3EA2NESSES *ow capacit) of plant' Ci!( co't of production Ci!( (uman co't component at 9adodara Comple+e' OPPORTUNITIES Acce'' to alternate feed'toc/ 'upplier' #ncrea'in! alternati&e u'a!e of pla'tic' for different purpo'e' in dome'tic mar/et Capacit) en(ancement of plant' at 9adodara and $and(ar Comple+e' THREATS $rowin! bar!ain' from dome'tic cu'tomer' due to reduction in !o&ernment dutie' *o'' of '/illed manpower AntiDpla'tic mo&ement b) en&ironmental acti&i't'

<2

$rowin! competition7 T(e dome'tic indu'tr) i' li/el) to witne'' immen'e competition !oin! forward wit( #OC all 'et to enter t(e 'e!ment wit( it' R' ?2 bn project- Furt(er. ON$C i' al'o &enturin! into petroc(emical' bu'ine''- ,it( commitment' to reduce and eliminate tariff and nonDtariff barrier'. #ndia. wit( (u!e mar/et potential. mi!(t witne'' entr) of !lobal major' 'uc( a' E++on Mobil. ow C(emical' and S(ell into t(e bu'ine''T(e'e !lobal major' wit( deep poc/et' can actuall) lead into a pricin! war. w(ic( could re'ult in '8uee1in! mar!in'-

Cu'tom' dutie'7 Ci'toricall). t(e dome'tic indu'tr) (a' been protected from o&er'ea' competition b) (i!( import dutie' impo'ed b) t(e !o&ernment- Cowe&er. of late. #mport dut) on pol)mer' (a' been 'teadil) reduced and i' currentl) at %=B- A' part of it' commitment to &ariou' multilateral and bilateral trade a!reement'. t(e !o&ernment i' li/el) to reduce dutie' !oin! forward and t(i' i' li/el) to reduce t(e cu'(ion enjo)ed b) t(e dome'tic pla)er' a' a!ain't t(e landed co't of imported product'-

<;

LOGOS

T(e fir't lo!o con'i'ted of a tetra(edron E repre'entin! t(e molecular 'tructure of t(e 'imple't or!anic c(emicalD met(ane. in a circle-

T(i' deci'ion of t(e !o&ernment. FE&er) t(in! under one roofG in'pired t(e 'econd lo!o of #PC*- #PC* too/ up t(e c(allen!e of 'ettin! up t(e entire inte!rated comple+ at 9adodara-

<?

PRESENT LOGO

#PC*. a' a corporate entit). i' and w(at it '(all 'tri&e to be- T(i' ')mbol or lo!o reflect' t(at #PC* i' a 'in!le matri+ of man) di&er'ified acti&itie' and product'. emer!in! from one 'ource and branc(in! out in different direction'. )et retainin! it' unit) and identit)T(e line' flow upward' and outward' from a common ba'e into infinit). reac(in! for unendin! !rowt(. uni&er'al !oodwill. !eneral pro'perit) and e+cellence in e&er)t(in!T(e !reen color u'ed in t(e de'i!n reinforce' t(e t(eme E a'piration and !rowt(. rooted in t(e eart( and in (armon) wit( t(e ot(er element' E water. li!(t. air and 'pace-

<>

VISION
Be a !loball) preferred bu'ine'' a''ociate wit( re'pon'ible concern for ecolo!). 'ociet) and 'ta/e(older'4 &alue,e '(all 'tri&e to !enerate be't &alue for all a''ociate' we deal wit(. b) con'tantl) inno&atin! and updatin! our'el&e' wit( be't practice' from acro'' t(e world- F T(i 4 %i"# T(i 4 7a5t# a d T(i 4 a(ead. Idea5 are o o e@5 &o o6o'yA.

MISSION
Continuou'l) inno&ate to remain partner' in (uman pro!re'' b) (arne''in! 'cience and tec(nolo!) in t(e petroc(emical' domainCo ti uou5'y I o8ati8e T(i' concept i' in!rained in #PC*4' culture- T(e founder c(airman of our $roup S(ri (irub(ai Ambani 'aid. FOnl) w(en )ou dream it. )ou can do itG under'core' our dri&e to become better and bi!!er compan)Part er5 i (u&a 6ro"re55 T(e product' we ma/e. find t(eir wa) into product' t(at (elp people wit( impro&ed life't)le'- All of u' at #PC* mu't under'tand and ta/e pride in t(i'- ,e mu't al'o u'e t(i' concept to furt(er connect #PC* wit( t(e e+ternal mar/et' we 'er&e- ,(en we t(in/ in term' of mar/et' we 'er&e. we become more out'ideDin focu'ed and we can better 'ee/ !rowt( opportunitie'-

Har e55i " 5cie ce a d tec( o'o"y ,e mu't put our /nowled!e in 'cience and tec(nolo!) to wor/. to create 'olution' for our cu'tomer' and for 'ociet)-

<:

VALUES
I te"rity T(e relation'(ip' t(at are critical to our 'ucce'' depend entirel) on maintainin! t(e (i!(e't et(ical and moral 'tandard'- A' a &ital mea'ure of inte!rit). we will en'ure t(e (ealt(. 'afet) of our communitie'. and protect t(e en&ironment in all we doRe56ect 7or 6eo6'e ,e belie&e in t(e in(erent wort( of people and will (onor our relation'(ip'- ,e. t(e emplo)ee' of #PC*. are t(e en!ine' of &alue creation- Our ima!ination. determination. and dedication are e''ential for !rowt(- ,e will wor/ to celebrate and reward t(e uni8ue bac/!round'. &iewpoint'. '/ill' and talent' of e&er)one at #PC*- Re'pect for people i' mea'ured b) (ow we treat eac( ot(er. b) t(e contribution' t(at flow from our di&er'it). b) t(e producti&it) of our relation'(ip'. and b) a job well done. no matter w(at t(e job i'Our cu'tomer' are our partner' in creatin! &alueJ t(eir lo)alt) i' our !reate't reward- Our '(are(older' are t(e beneficiarie' of our 'ucce''J t(eir onD!oin! commitment to u' i' ba'ed on returnin! to t(em con'i'tent 'uperior return' o&er time- ,e will 'tri&e to an'wer people4' mo't &ital need'7 for food. water. '(elter. tran'portation. communication. (ealt( and medicineU ity ,e are one compan). one team- ,e belie&e t(at 'ucceedin!. a' one enterpri'e i' a' important a' 'ucceedin! independentl)- Balancin! empowerment and interdependence ma/e' u' 'tron!- ,e will wor/ to!et(erJ build relation'(ip' to create !reater &alue for t(e cu'tomer'-

<@

Out5ide9i 97ocu5 ,e belie&e t(at !rowt( come' from loo/in! at opportunit) t(rou!( t(e e)e' of t(e cu'tomer' and all t(o'e we 'er&e- Ta/in! an Fout'ideDinG &iew en'ure' t(at our effort' are alwa)' rele&ant and t(at our uni8ue talent' are applied to Freal worldG opportunitie',e will 'ee t(rou!( t(e e)e' of t(o'e w(o'e li&e' we affect. identif)in! unmet need' and producin! inno&ati&e and la'tin! 'olution'- ,e will brin! to t(i' ta'/ all of our e+perience and /nowled!eA"i'ity At #PC*. we belie&e our future depend' on 'peed and fle+ibilit)D mental. emotional and p()'ical- Re'pondin! re'ourcefull) to 'ociet)4' fa'tDc(an!in! need' i' t(e onl) road to 'ucce''- ,e will meet t(e force' of c(an!e wit( power and !race- ,e will ma/e nece''ar) correction' t(at demon'trate fle+ibilitie' a' well a' coura!e. and t(at (i!(li!(t our abilit) to /eep our'el&e' ali!ned wit( a world in motionI o8ati8e

,e belie&e t(at meanin!ful producti&e c(an!eJ 'ol&in! problem'J onl) come' b) loo/in! at c(allen!e' and opportunitie' from new an!le' and e+erci'in! our curio'it)- #n t(e name of inno&ation. we will ma/e 'cience a wa) of li&in!- ,e will not onl) (arne'' t(e 'cience of t(e p()'ical world. but t(e 'cience of t(e mind and (eart- Our job i' to unloc/ t(e an'wer' t(at ma/e a fundamental difference to people'4 li&e'- ,e will u'e tec(nolo!) to (elp lead 'ociet) forward- ,e will concei&e. de'i!n. en!ineer. and e+ecute 'olution' t(at remo&e barrier' to (uman potential and producti&it)T(e'e &alue' !uide our &i'ion. mi''ion and all our tran'action'-

%=

BUALIT. POLIC.
F,e at #PC* are committed to meet cu'tomer'4 re8uirement' t(rou!( continual impro&ement of our Kualit) Mana!ement S)'tem'- ,e '(all 'u'tain or!ani1ational e+cellence t(rou!( &i'ionar) leader'(ip and inno&ati&e effort'. Co ti ua' I&6ro8e&e t T(i' concept find' it' root' in our mi''ion and i' in!rained in #PC*4' culture- Continual impro&ement will lead to (i!(er reliabilit) in 8ualit) of product' and 'er&ice' needed b) our cu'tomer'- T(i' will ma/e u' out'ideDin focu'ed and pro&ide' u' wit( t(e needed dri&e and direction in ac(ie&in! e+cellence in mana!in! our bu'ine''Vi5io ary Leader5(i6 T(i' mean' t(at we '(all collecti&el) wor/ to 'u'tain e+cellence- Our &i'ion i' to de&elop enablin! leader' w(o will carr) our people to 'u'tain e+cellence. to 'cale newer and (i!(er benc(mar/'-

%<

ISO IN IPCL
3(at i5 ISOC #SO i' deri&ed form t(e $ree/ word. #SOS w(ic( mean' E8ual. Como!eneou' L "niform#SO 'tand' for 3#nternational Or!ani1ation for 'tandardi1ation4- #t i' a worldwide federation of national 'tandard' bodie' form' <;= countrie'. includin! #ndia. ba'ed at $ene&a. Swit1erland. it promote' t(e de&elopment of 'tandardi1ation wit( a &iew to facilitatin! t(e international e+c(an!e of !ood' L 'er&ice'#SOD@=== 'erie' wa' fir't publi'(ed in <@:> 3(at i5 ISO9D000C #SO @=== i' a 'erie' of Model' for Kualit) A''urance- #t 'pecifie' uniform 'tandard' for de&elopin! and maintainin! mana!ement ')'tem' procedure'. met(od' and /eepin! record'- T(u' it i' model for 8ualit) ')'tem 3(at i5 Proce55 &ode' 7or ISO D00=C #SO E @==<7 %=== wa' introduced a' re&i'ion in t(e )ear %===- ,it( t(i' re&i'ion t(e concept of FProce'' modelG wa' introduce to impro&e FEfficienc)G of t(e ')'temA proce'' i' a 'et of ')'tem. w(ic( con&ert' input to output-

ICOM
Proce'' of con&er'ion utili1e' certain Fmean'G li/e people. ')'tem. tool'. etc- and al'o u'e' certain !uideline' or control li/e compan) polic). 'pecification. 'tandard etc- T(u' a proce'' can be mana!ed t(rou!( monitorin! I 6ut# co tro'5# out6ut E &ea 5 !ICOM$ Cence. #SO i' a teamwor/ L participation form e&er) corner be it operation. maintenance. material' finance etc- are e''ential%%

Ei"(t Pri ci6'e5 o7 ISO9D00= =. /. >. *. ?. 1. +. G. Cu5to&er ,ocu5ed Or"a iFatio Leader5(i6 I 8o'8e&e t o7 Peo6'e Proce55 A66roac( Sy5te& A66roac( to Ma a"e&e t Co ti ua' I&6ro8e&e t ,actua' A66roac( To Deci5io Mutua''y %e e7icia' 5u66'ier re'atio 5(i65 3(at i5 ISO ) =*000 !EMS$C
#t wa' introduced in September <@:? wit( t(e publication of t(e #SO E<2=== Standard' b) international or!ani1ation 'tandard. $ene&a. Swit1erland #SO <2=== focu'e' on Mana!ement of En&ironment li/e #SOD@=== focu'e' on cu'tomer Sati'faction<- Pro&ide' a framewor/ for Mana!ement of En&ironment impact' ari'in! out of bu'ine'' acti&itie'. product' and 'er&ice'%- #nte!rate' t(i' en&ironment framewor/ wit( o&erall bu'ine'' mana!ement acti&it) 0- Contain' re8uirement t(at re'ult in a (i!(er and 'tead) impro&ement in performance le&el-

%0

Be e7it5 o7 ISO=*00= I ter a' %e e7it

Structured and controlled en&ironment' mana!ement ')'tem 5EMS6 (elp' to7 En(ance efficienc) of internal proce''e'#ncrea'e' pro!ramme'Better co't control Con'er&ation of natural re'ource' and ener!)E&idence for en&ironment care and 'tatutor)

EHter a' Be e7it

Stren!t(en' En&ironmental credibilit) wit( Cu'tomer' Statutor) bodie' Communit)Ien&ironment !roup #n'urance Judicial ')'tem

%2

ISO ) =*00= Docu&e tatio 5

Followin! are t(e documentation t(at contain under t(e #SOD<2==<

=. E 8iro &e ta' Ma a"e&e t 5y5te& Ma ua'

En&ironmental mana!ement ')'tem manual i' t(e ape+ manual of #PC*DBC formulated on t(e ba'i' of #SO<2==< 'tandard- #t '(ow' t(e &i'ion of t(e mana!ement toward'7 Maintainin! en&ironmental norm' a' per 'tatutor) re!ulation' Con'er&ation of natural re'ource' and minimi1ation of wa'te !enerationIpollutionMinimi1ation of en&ironment impact' of petroc(emical' operation'Creatin! en&ironmental awarene'' in emplo)ee' and 'ociet)Mo&in! toward' !reen econom) t(rou!( tec(nolo!ical inno&ation and continual impro&ement-

/$ E 8iro &e t Sy5te& 6rocedure

ESP de'cribe' t(e met(odolo!) and mea'ure' to ac(ie&e t(e &i'ionIintent of t(e mana!ement 'tated in EMSM-

>$ E 8iro &e ta' A56ect Re"i5ter

EAR pro&ide' t(e ba'i' for en&ironmental mana!ement b) identif)in! and 8uantif)in! 'i!nificant en&ironmental a'pect related to &ariou' acti&itie'. product' and 'er&ice' b) a''i!nin! impact 'core'-

*$ E 8iro &e t Le"a' re"i5ter

E*R de'cribe t(e en&ironmental le!i'lation' applicable to en&ironment a'pect' of our acti&itie'. product and 'er&ice'-

%;

?$ E 8iro &e t &a a"e&e t 6ro"ra&&e

Con'iderin! t(e 'i!nificant en&ironmental a'pect and tec(noDeconomic fea'ibilit). EMP i' ta/en to ac(ie&e t(e objecti&e' and tar!et' in line wit( t(e en&ironment polic)-

1$ O6eratio a' co tro' 6rocedure

OPC 'tipulate' operatin! criteria for operation' and acti&itie' t(at are a''ociated wit( t(e identified 'i!nificant en&ironmental a'pect' in line wit( polic). objecti&e' and tar!et'- OCP al'o co&er t(e 'ituation w(ere t(eir ab'ence could lead to de&iation' form en&ironment polic). objecti&e' and tar!et'-

3(at are t(e 7ocu5 area o7 IPCL# BC 7or t(e year @0?9@01C
ISO9D00=I To e (a ce cu5to&er 5ati57actio i deH !CSI$ ISO9=*00=I Co 5er8atio o7 Jater re5ource5

ENVIRONMENT POLIC.
T(e en&ironment polic) declared b) #PC* read' a' follow'7D Aim' to maintain rele&ant en&ironment norm' a' per pre&ailin! 'tatutor) 'tandard'Stri&e' to con'er&e natural re'ource' and to minimi1e wa'te !eneration in petroc(emical operation'Contribute to a !reen econom) for continual impro&ement and 'u'tainable de&elopment in minimi1in! en&ironmental impact' b) tec(nolo!ical inno&ation and re'earc(-

%?

Encoura!e en&ironmental awarene'' in emplo)ee' and 'ociet) for &i!ilant (a1ard mana!ement and pre&ention of pollution-

SA,ET. E HEALTH POLIC.

T(e 'afet) L (ealt( polic) declared b) #PC* read' a' follow'7D Profe''ionall) mana!e and compl) wit( t(e 'tatutor) pro&i'ion' b) !i&in! (i!( priorit) to (ealt(. 'afet) and en&ironment control pro!ram'En'ure t(at tec(nolo!) ab'orbed. a''imilated. up!raded and de&eloped b) t(e compan) la)' emp(a'i' on 'afet) in and around t(e wor/placeEn'ure continuou' impro&ement in 'afet) and (ealt( a'pect' b) carr)in! out 'afet) audit. ri'/ anal)'i' etcCon'titute 'afet) committee' to promote 'afet) awarene'' and en'ure participation of emplo)ee' in 'afet) and (ealt( related function'Or!ani1e 'tructured trainin! pro!ram' on continuou' ba'i' to educate emplo)ee' and nei!(borin! 'ociet) on 'afet). (ealt( and lo'' pre&ention and control a'pect'En'ure codification of 'afet) 'tandard' and e+tend 'er&ice' to partie' a''ociated wit( t(e compan) on 'afet) a'pect'Reco!ni1e contribution' made b) an indi&idual emplo)ee toward' 'afet) and (ealt( a'pect'-

%>

SI: SIGMA IN IPCL 3(at i5 SiH Si"&aC M Si!ma 5?6 i'7 DT(e <:t( letter of t(e $ree/ alp(abet DSi!ma i' t(e ')mbol of Standard e&iation DA mea'ure of &ariation

VISION

PHILOSOPH.

TOOL BO:

MANAGEMENT S.STEM

DATA BASED METHOD

CUSTOMER ,OCUS

BENCHMAR2

AGGRESSIVE GOAL

SI: SIGMA IS A COMPREHENSIVE S.STEM

3HO ALL ARE DOING SI: SIGMA IN ASIAC

$E. AlliedSi!nal. Motorola. No/ia. To'(iba. Sam'un!. Ford. u Pont. Boein!. American E+pre''. Siemen'. ,(irlpool. Aoda/. C)undai. Etc-

%:

 HISTOR. O, SI: SIGMA

MidD:=4'DA dri&e toward' 1ero defect'. a Metric t(at %eca&e a Vi5io . *ate :=4'. earl) @=4'DA &et(odo'o"y to ac(ie&e t(e !oalMid to *ate @=4'DA compre(en'i&e proce'' impro&ement 5y5te& a d 6(i'o5o6(y complementin! t(e met(odolo!) to ac(ie&e t(e !oalToda)DA metap(or for %u5i e55 a d 6roce55 eHce''e ce.

BENE,ITS O, SI: SIGMA ) ORGANIKATION

Reduction of defect' *ower co't' Ci!(er cu'tomer 'ati'faction S(orter c)cle time Predictable proce''ed

Culture c(an!e Focu' on 8ualit). t(e cu'tomer and doin! it ri!(t Pride in belon! t(e be't Standardi1ation for problem 'ol&in!

Ci!(l) trained wor/force Common lan!ua!e Or!ani1ational. #n'titutional memor)

%@

Ma5ter B'ac4 Be'tI

Role'7 9ariable from compan) to compan) S(ould ma/e C(ampion' life ea'ier in mature deplo)ment Re'pon'ibilit)7 #n'tructor and mentor of Bac/ belt' and $reen belt' Trainin! material de&eloper eplo)ment a''i'tant to core team and c(ampion' Aeeper of project bac/lo! li't ri&er of project clo'ure proce'' *eader of lar!er 'coped project'

B'ac4 Be'tI
Role'7 Practitioner of MA#CI MA 9 Met(odolo!) Re'pon'ibilit)7 #deall) full time facilitatorIleader of 'i+ 'i!ma project team Team '(ould di'co&er and recommend project 'olution E+ecute' 2 to ? project'I )ear

Gree %e'tI
Role'7 Carr) t(e lan!ua!e of Si+ 'i!ma deeper into t(e or!ani1ation Accelerate number of emplo)ee' po'iti&el) b) Si+ Si!ma Re'pon'ibilit)7 Become local ad&ocate

0=

Part E time implementer' of 'maller 'cope project' wit( direct impact to dail) non Si+ Si!ma dutie' A''i't BB wit( team acti&itie' and too application to project area

.e''oJ Be'tI
Role'7 E+tend t(e reac( of t(e Si+ Si!ma lan!ua!e in to t(e trenc(e'Re'pon'ibilitie'7 A''i't Blac/ Belt'I$reen Belt' wit( data collection and tool application Pro&ide in&aluable proce'' e+perti'e to Si+ Si!ma team A''i't Proce'' Owner wit( lon! term implementation of 'olution

Ot(er Ro'e57
Brown Belt'7 Recei&e 'ame trainin! a' Blac/ Belt' but not a full) dedicated Si+ Si!ma leader Functional Mana!er'7 Current mana!er' of potential Blac/ Belt candidate' t(at ma) remain in&ol&ed in t(e reportin! relation'(ip of Blac/ Belt' Si+ Si!ma admini'trator'7 A''i't all Si+ Si!ma Role' in e&ent coordination. communication. and reportin! of Si+ Si!ma acti&itie'-

0<

BE.OND BUSINESS
INSTITUTION BUILDING #PC* (a' (elped in e'tabli'(in! 'e&eral in'titution'. w(ic( in turn (elp to 'u'tain !rowt( of t(e petroc(emical indu'tr) A pioneerin! data ban/ pro&idin! i 7or&atio a d co 5u'ta cy 5er8ice5 in t(e area of petroc(emical' bot( in #ndia and abroadNational committee on u'e of pla'tic' in a!riculture 5NCPA6 wa' con'tituted in <@:< and 'ince it' inceptionJ #PC* (a' been acti&el) 'upportin! it wit( manpower and infra'tructure- NCPA (a' been in'trumented in propa!atin! u'e of pla'tic' in a!riculture uni&er'itie' in different 'tate'Petroc(emical' Mana!ement out'ide or!ani1ation and for #PC* Pla'tic Proce''in! operator trainin!7 A 'c(eme to !eneral trained wor/force for pla'tic proce''in! indu'tr). jointl) wit( #T#'. Mini'tr) of *abor and State $o&ernment'e&elopment #n'titute 5PM #6 wa' e'tabli'(ed in

No&ember <@@<. to 'er&e o&er'ea' trainin! contract and create (uman re'ource' for

0%

ARTS AND SPORTS

#PC* (a' a tradition of 'upportin! acti&itie' related to art'. ae't(etic' and 'port' A beautiful piece of contemporar) 'culpture b) S(ri Na!ji Patel i' a landmar/ in t(e cit) of 9adodara- #t i' al'o ')mbolic of #PC*4' deep commitment to promote art and culture-

A (u!e 'port' comple+ matc(in! international 'tandard' (a' been de&eloped at 9adodara#t (a' (eld men4' and women4' world cup cric/et matc(e'. international tenni' tournament' be'ide' bein! a &enue to &ariou' national and 'tate le&el !ame'- Some of t(e #PC* pla)er' (a&e made t(eir mar/ at 'tate and national le&el in &ariou' 'port'-

A !iant mural adorn' #PC*4' openDair t(eatre at 9adodara#PC* or!ani1e' re!ular camp' for painter'. !rap(ic arti't' and 'culptor'- A Aon/an craft fe'ti&al wa' al'o or!ani1ed at Na!ot(ane in <@@0-

00

T(e calendar t(eme' for t(e la't few )ear' (a&e depicted #ndia4' ric( cultural (erita!eFor in'tance. t(e famou' mu'ician' of 9adodara. t(e maritime (erita!e of Marat(a'.

Nandlal Bo'e4' mural. Briti'( colonial art in 9adodara. and Prof- N- S- Bendre4' paintin!' on Na!ot(ane#PC* (a' 'pon'ored a boo/ on t(e 3Contemporar) Art of 9adodara4-

SOCIO9ECONOMIC DEVELOPMENT
T(e compan). a' a matter of polic). continue' to meet 'ome of t(e ba'ic need' of t(e &illa!e' 'urroundin! t(e comple+e' and de&elopmental wor/ i' prioriti1ed accordin! to t(e need' of t(e people in t(e perip(eral &illa!e'- T(e Compan)4' Social ,elfare and communit) e&elopment initiati&e' focu' on t(e /e) area' of education. (ealt( care and t(e o&erall de&elopment of t(e communitie' in w(ic( t(e compan) operate'- T(e'e initiati&e' are underta/en directl) b) t(e compan) and al'o t(rou!( le!all) con'tituted tru't' and welfare bodie'- S9A ES 5Societ) for 9illa!e e&elopment in Petroc(emical' Area6. MA ER and JA ER tru't' (a&e been e'tabli'(ed for up !radation of infra'tructure facilitie' and de&elopin! t(e rural communit) in t(e &icinit) of #PC* Comple+e'- T(e compan) (a' been 8uic/ to place all it' re'ource' at t(e 'er&ice of t(e nation and communit) in time of cri'i' and emer!enc)-

02

Cealt( camp'. Famil) Plannin! Camp'. pro&ided to nei!(borin! &illa!e'Nur'er) and #ndu'trial Trainin! #n'titute'

i'pen'ar) and Mobile Medical 9an' are

Cattle e&elopment Centre and 9accination camp'Pro&idin! 'ub'idi1ed 'anitation facilitie' to rural familie'Pro&idin! facilitie' li/e 'c(ool buildin!. boo/'. and furniture for librarie' pla) !round'. well'. approac( road' and 'ub'idi1ed bu'D'er&ice to 'c(ool c(ildrenSc(olar'(ip' for !raduate and po't !raduate 'tudent' from $ujaratTec(nical a''i'tance to t(e national in'titute for t(e blindPro&i'ion of drin/in! water at Na!ot(ane &illa!e'9ocational trainin! pro!ram' for t(e )out( and womenTree plantation. dia!no'tic. e)e camp'. educational tour'. trainin! farmer' etc--

ENVIRONMENTAL PRESERVATION #PC* profe''e' t(e doctrine t(at an) economic acti&it) '(ould not erode t(e &er) foundation of 'uc( acti&it)e&elopment '(ould t(erefore be wit( due re!ard' to en&ironment protection and not at t(e co't of it- #PC* (a' formulated a clear and focu'ed 'afet). (ealt( and en&ironment polic) w(ic( reinforce' t(e corporate commitment to t(e'e facet' of bu'ine''#PC* (a'7 Adopted elaborate water treatment and air monitorin! at all 'ite'e&eloped microDor!ani'm for bioDde!radation of c)anide waterA multiDpurpo'e (a1ardou' wa'te incinerator-

0;

e&eloped a %>Dacre e+perimental farm at 9adodara w(ere &e!etable' are !rown and t(e u'e of treated effluent' for a!ricultural produce 'tudiedA li&in! mu'eum of tree' w(ere >= 'pecie' proliferate o&er 2= acre' of landCreated an artificial la/e from treated wa'tewater. w(ic( attract' o&er <== 'pecie' of bird' from all o&er re!ion-

PLASTICULTURE #PC* i' committed to t(e de&elopment of t(e u'e of pla'tic' in a!riculture al'o /nown a' 6'a5ticu'ture. T(e pla'ticulture !roup wor/' wit( t(e objecti&e of pro&idin! 8ualit) end product' li/e pla'tic firm' for linin! canal' 5A!rifilm6. mulc(in!. 'peciali1ed "9 'tabili1ed film for !reen (ou'e'. pla'tic create' for pac/a!in! fruit' and &e!etable'- #t al'o wor/' clo'el) wit( e+i'tin! or!ani1ation' in a!riculture 'ector to e'tabli'( an effecti&e di'tribution c(annel to en'ure timel) a&ailabilit) to t(e end u'er'- #PC* !uide' e+i'tin! manufacturin! unit to t(e u'e of #PC* raw material and a&ailable /now (ow#PC* i' al'o clo'el) in&ol&ed wit( t(e Natio a' Co&&ittee o A"ricu'ture 5NCPA6 under t(e Mini'tr) of A!ricultureu5e o7 P'a5tic5 i

0?

ACCOLADES Be't petroc(emical' compan) worldwide7 <@@= 5C# *ondon6#CMA award for forward tec(nolo!) de&elopment7 <@:<. <@:;. <@@<T(e federation of $ujarat mill' L indu'trie' 5F$M#6 award and t(e de&elopment of 'cientific and indu'trial re'earc( 5 S#R6 award in t(e field of re'earc(National 'afet) award %==< from t(e Briti'( 'afet) council. "A for 'ub'tantial 5@=B6 reduction n incidence rate 5%==%D%==06#ndira $and(i memorial national award for be't en&ironmental and ecolo!ical implementation %==%D%==0#SO <2==< certification %==%D%==0Award of (onor from $ujarat 'afet) council for ac(ie&in! more t(an 0 million manD(our' accident free 'pell' %==%D%==0National ener!) con'er&ation award E %==0 b) t(e mini'tr) of powerNational !a' con'er&ation award E %==0 b) t(e mini'tr) of petroleum and natural !a'-

0>

PRODUCT PORT,OLIO

0:

LINE O, BUSINESS
Pol)mer' S)nt(etic Rubber Fibre L fibre intermediate' #ndu'trial C(emical' Surfactant Sol&ent'

PRODUCT LINEI Product line can be defined a' t(e number of product (a&in! 'imilar need of t(e people#PC* (a' four major product line' &i1--Po'y&er C(e&ica' ,i%re E 7i%re i ter&ediate5 Ru%%er Abo&e product line' are furt(er cla''if) a' mentioned on t(e ne+t pa!e wit( particular product'-

0@

#PC*4' Product *ine

C(emical'

Sol&ent'

Surfactant'

Pol)mer'

Rubber

Fiber L inD termediate'

Acr)lonitrile imet()l Terpt(alate Et()lene $l)col #ndacr)l Supacr)l

Acetonitrile Ammonium Sulp(ate Ben1ene Butadiene But)l Acr)late' Cau'tic Soda Carbon Blac/ Feed 'toc/ Et()lene Et()l acr)late Met()l acr)late Ort(o+)lene Prop)lene

Ci+on Cepton Sol&ent C#N

Et()lene O+ide *inear Al/)l Ben1ene

#ndot(ene #ndoet(ene CC #ndoet(ene C #ndoet(ene ** #ndo&in Ao)lene Ao)lene CP Ao)lene A * Ao)lene A *DCP

Ci'amer <%%= Ci'amer <%%=$P Ci'amer <%%=O$ Ci'amer <%%=PS Ci'amer <%%=CS

2=

Product Port7o'io
5Capacitie' in MTA6

Product' Et()lene Prop)lene Butadiene ButaneD< Ben1ene Ci+on Carbon blac/ feed'toc/ Acr)lonitrile #ndot(ene #ndot(ene **I#ndot(ene C #ndot(ene C Ao)lene Ao)lene CP Ao)lene A * #ndo&in Ci'amer Et()lene O+ide Et()lene $l)col #ndacr)l Supacr)l Acr)late' Petre1 *inear al/)l ben1ene Para +)lene Ort(o +)lene Sol&ent C#N Cepton imet()l Terpt(alate Cau'tic 'oda C(lorine Power5mw(6

9adodara Comple+ <.0=.=== <.=>.2?= 0>.>== D %0.?== <%.=== <>.@== 0=.=== :=.=== D D 0=.=== %;.=== >;.=== ;;.=== ;=.=== <=.=== >.=== <%.=== <%.=== <=.=== ;.=== 20.;== 2:.?== 2>.@== <=.=== %=.=== 0=.=== D D :@

Na!ot(ane Comple+ 2.==.=== ?0.=== D <;.=== D D D D D %.%=.=== D ?=.=== D D D D ;.=== ;=.=== D D D D D D D D D D D D :>

$and(ar Comple+ 0.==.=== 0:.=== D D D D D D D D <?==== D D D <.;=.=== D <=.=== <.==.=== D D D D D D D D D D <.0=.=== <.<;.=== <;2-;

2<

PRODUCT ,LO3 DIAGRAMI VADODARA COMPLE:

INDIAN PETROCHEMICALS CORPORATION LIMITED

2%

A66'icatio o7 Product5
So'id Product5 Mai u5e5 o7 6o'y&er57 Product * PEI** PE C PE PP P9C PBR "'e' Con'umer pac/a!in!Ifilm. e+tru'ion wire'. cable coatin!'. (ea&) dut) ba!'. !arba!e ba!'. mil/ L '(oppin! ba!'Fertili1er'I(ou'e(old pac/a!in!. wo&en 'ac/'. carton'. crate'. lu!!a!e. pipe'. paint'. 'tora!e bin' etcCement pac/a!in!. monofilament )arn. rope'. fi'(in! net',ater pipe'. electrical conduitIwire'. cable'. '(eet'. footwear. fle+ible film' Automobile t)re' L tube'. con&e)or belt'. footwear-

Mai u5e5 o7 7i%re E 7i%re i ter&ediate57 Product' AFI SAF ME$ CAN MT "'e' Te+tile'. /nittin! )arn'. 'weeterPol)e'ter' Acr)lic fibre. Acr)late'. en!ineerin! pol)mer'Pol)e'ter 'taple fibre. pol)e'ter filament )arn'. pol)e'terLi<uid Product5 Mai u5e5 o7 c(e&ica'57 Product' *AB "'e' Raw material for (ou'e(old. indu'trial deter!ent'.

per'onal care product'EOIBENEOENEITO*"ENE P(enol. d)e'tuff. p(armaceutical'. paint'. indu'trial u'e'. Cau'tic Soda caprolactum AluminaIpaper-

LIST O, COMPETITORS
20

Competitor' are t(o'e firm' or indi&idual' pla)in! in t(e 'ame indu'tr) i-e- producin! a 'imilar product- #n ot(er word'. it mean' a t(reat to t(e firm in term' of ac8uirin! t(e mar/et '(areT(e petroc(emical' indu'tr) in #ndia i' dominated b) t(ree lar!e producer' in addition to u'- T(e'e are R#*. $A#* L CP- Moreo&er. 'ince petroc(emical product' can be freel) imported in to #ndia. #PC* L t(eir dome'tic competitor' face competition from product' manufactured b) !lobal manufacture' li/e S(ell L SAB#CT(e) belie&e t(at t(eir co't effecti&e inte!rated petroc(emical' facilitie'. emp(a'i' on cu'tomer 'ati'faction reliabilit) of 'uppl) L product 8ualit) pro&ide t(em wit( competiti&e ad&anta!e' in man) of t(eir product'#PC* c(an!ed in'i!nificantl) w(en R#P*. w(ic( i' part of t(e Reliance !roup. ac8uired mana!ement control of #-P-C-*- T(e lar!e't compan) of Reliance !roup i' R#*. w(ic( i'
#N #A4S lar!e't petroc(emical' compan)- ,e belie&e t(at ')ner!) of #-P-C-* wit( R#*

ow c(emical. E++on Mobil. Ro)al.

utc(.

will enable u' to compare t(e dome'tic L international mar/et more effecti&el)-

POL.MERS

22

R#* L #PC* (a&e t(e fir't L 'econd lar!e't mar/et '(are re'pon'ibilit) in dome'tic pol)mer'- T(e table below !i&e' t(e re'pecti&e mar/et '(are in term' of t(e indu'tr) product'-

I du5try Partici6atio
C(empla't

HDPE LLDPE LDPE

PP

PVC

TOTAL

PP

PP

PP

PP

;-;B

<-0B

OCM S(riram CM Finole+ $A#* Caldia Petro #PC* NOC#* R#* TOTA*B

PP PPP PP <:-?B <?-2B %?-=B >-<B 0<-@B <==-=

PP PP PP <=-=B %<-0B 00-%B PP 0;-2B <==-=

PP PP PP PP PP <==-=B PP PP <==-=

PP PP PP PP >-=B <;-?B PP >>-2B <==-=

2-0B :-;B <?->B PP PP %>-=B PP 0>-@B <==-=

<-=B %-=B 2-=B ;-2B :->B %>-;B <-?B 2:-;B <==-=

,IBRE AND ,IBRE INTERMEDIATES7D

2;

T(e acr)lic fibre indu'tr) (a' (i'toricall) witne''ed low profit mar!in' and operatin! rate' bot( in #ndia L internationall)- T(i' (a' re'ulted in under utili1ation of capacit) b) t(em a' well a' mo't of t(e dome'tic competitor'- T(eir competitor' are7D Acr)lic limitedQ02B Pa'(upati Acr)lic limitedQ%=B 9ard(man Acr)lic limitedQ<2B Con'olidated fibre corporation limitedQ<=B #PC* operate' %<B of t(e dome'tic production capacit)- T(eir competiti&e ad&anta!e in t(i' mar/et i' t(eir acce'' to met()l acr)late w(ic( i' raw material t(at t(e) produce t(em'el&e'- R#* i' lar!e't producer of ME$ in #N #A L operate' ?;B of t(e dome'tic production capacit)- R#* con'ume' a 'i!nificant portion of it' ME$ production a' raw material for it' down'tream pol)mer' unit'- #PC* operate' %2B of t(e dome'tic production capacit) L are t(e lar!e't merc(ant 'eller of ME$ in #ndia- T(e t(ird lar!e't producer of ME$ #ndian !l)col limited operate' :B of production-

2?

INTRODUCTION TO MAR2ETING O, IPCL

Mar4eti " i5 i e8ita%'e i 6re5e t era a5# Lco 5u&er i5 t(e 4i "A. Mar4eti " acti8itie5 i c'ude5 ide ti7icatio o7 u 7u'7i''ed eed a d Ja t5# de7i e5 a d &ea5ure5 J(ic( tar"et &ar4et t(e or"a iFatio ca %e5t 5er8e. Decide5 a a66ro6riate 6roduct# 5er8ice5 a d 6ro"ra&&ed to 5ecure t(o5e &ar4et a d ca''5 u6o e8ery o e i t(e or"a iFatio to t(i 4 a d 5er8e t(e cu5to&er5. #PC*4' Mar/etin! epartment (a' 'i+ bu'ine'' !roup'. w(ic( are <- C(emical L Bu'ine'' $roup %- Pol)mer Bu'ine'' $roup 0- Fibre L Fibre intermediate $roup 2- #nternational Bu'ine'' $roup ;- Mar/etin! operation'L Plannin! $roup ?- Pla'tic culture T(e epartment u'e' bot( t(e met(od' of c(annel' of di'tribution i-e- direct and indirect#PC* al'o (a' it' re!ional office' at A(medabad. Bomba). C(ennai. Aanpur. Coc(in. Patna and B(ubane'(war#PC* e+port' product' li/e * PE. ** PE. C PE. P9C. PPCP. PP. *AB. AF. ME$. PN. Rarn. P#B etc-in Sout( Ea'tern A'ia. $ulf countrie'. African countrie' and Europeel(i. Ban!alore L Calcutta- T(e) (a&e t(eir Sale' Center' at Jaipur. B(a&na!ar. #ndore. Pune. Na!pur.

2>

LOGISTIC ACTIVITIES ,OR DI,,ERENT PRODUCTS ,i%re Grou6

Fibre di&i'ion form' <;B of t(e bu'ine'' of #PC* in term' of it' 'ale' B- T(e cu'tomer profile &arie' from tin) 'ector to middle to &er) lar!e &olume one'- T(ere are about 2= cu'tomer'. majorit) of w(ic( are located in t(e Nort(- T(e Product i' 'upplied directl) on deli&er) ba'i' and al'o from ware(ou'e located in *ud(iana to cater to t(e re8uirement' of t(e cu'tomer'-

C(e&ica' Grou6
C(emical di&i'ion i' formin! appro+imate %=B of t(e total Bu'ine'' of #PC* in term' of it' 'ale' percenta!e- T(e cu'tomer profile &arie' from tin) 'ector to middle to &er) lar!e one'- T(e 'cattered number of cu'tomer' fi!ure' out to %==- T(e product i' 'upplied eit(er on deli&er) ba'i' or directl) to t(e cu'tomer-

Po'y&er Grou6
T(e pol)mer bu'ine'' form' about ?;B of t(e total bu'ine'' of #PC*- T(e cu'tomer profile &arie' from tin) 'ector to medium to &er) lar!e &olume one'- T(e cu'tomer' are 'pread t(rou!(out t(e countr) totalin! to about %=.===- T(e product i' 'upplied to t(e cu'tomer'7 a6 9ia i'tributor' and Con'i!nment 'toc/i'tb6 9ia irect 'ale'-

2:

OB-ECTIVES O, MAR2ETING MANAGEMENT

T(e main acti&it) of t(e de&elopment include' t(e followin!7 Strate!ic mar/et de&elopmentFormulation' of mar/etin! plan'Ica'( flow plan Competitor4' 'trate!) updated and coDoperati&e 'trate!ic re'pon'e'E+pert mar/etin! a' a tool of &alue additionSetup of an effecti&e and efficient ')'tem for e+penditurePrepare all nece''ar) production and 'ale' report'Floatin! &ariou' tender' and preparation of tender document'Strate!ic inte!ration of de&elopment plan' wit( national plan'-

MAR2ET SEGMENTATION
#t i' a fact t(at onl) mar/eter cannot !et ma+imum benefit from an) anal)'i' of mar/etin! a' a w(ole- T(erefore. to 'uit wit( t(e proper mar/et of t(e product' of t(e or!ani1ation. t(e mar/eter (a' to di&ide t(e total mar/et into 'ub mar/et' w(ere t(e !roup of con'umer' i' (a&in! 'ome 'imilar need' and want'. to !et ma+imum bu)er' re'pon'e to mar/etin! pro!ramme- T(e con&entional wa) i' to 'e!ment t(e mar/et into &ariable' li/e a!e. 'e+. famil). 'i1e. income. occupation. famil) life c)cle. etcCere main product' are intended to indu'trial u'e- T(erefore. t(e main tar!et' are t(e indu'trie' t(at are ba'ed on t(e followin! term'7 9Petroc(e&ica'5 Product5 9So'8e t5 9 P'a5tic5 9 C(e&ica'5

#PC* produce' 'uc( product' t(at are directl) or indirectl) related to different communitie'- For e+ample pla'tic product' li/e * PE. C PE etc- (a' broad u'a!e in our da)Dtoda) life. not directl) a' * PE or C PE but t(e) are con&erted into u'able !ood' b) ot(er manufacturer' a' per t(e demand of t(e mar/et-

2@

For e-!- we are u'in!. Pol)et()lene ba!' in out da)DtoDda) life. w(ic( i' made b) * PET(u' e&er) indu'tr) w(ic( i' u'in! pla'tic i' t(e mar/et for #PC*- #t i' true for ot(er product' al'o- T(u' total indu'trial approac( i' ri!(t t(in! for #PC* and it i' doin! 'oCowe&er common people cannot directl) u'e #PC*4' product'Mar4eti " De6art&e t i' t(e ner&e center of an) or!ani1ation- #t i' t(e mo't &ibrant part re'pon'ible for t(e di'tribution of t(e product' produced b) an or!ani1ation- For an indu'trial !ood' manufacturin! compan) li/e #PC*. w(ic( i' mar/et dri&en it i' it' Mar/etin! epartment t(at (a' to be at it' 'er&ice all t(e time- T(e Mar/etin! epartment i' di&ided in7 A- PRO "CTS MANA$EMENT B- SA*ES MANA$EMENT C- S"PPORT MANA$EMENT !A$ PRODUCTS MANAGEMENT T(e Product5 Ma a"e&e t i5 7urt(er di8ided i to > 5u%9"rou65. T(ey are a5 %e'oJI a6 PO*RMERS Bu'ine'' $roup 5PB$6 b6 CCEM#CA*S Bu'ine'' $roup 5CB$6 c6 F#BRES L F#BRE #ntermediate' $roup 5F L F#B$6 T(e Pol)mer' !roup (andle' all t(e Pol)mer Product'- A $eneral Mana!er to w(om t(e eput) $eneral Mana!er. Product Mana!er and ot(er Officer' report'. (ead' t(e Pol)mer !roupT(e 'tructure of C(emical and Fibre !roup i' 'imilar to Pol)mer !roup e+cept t(at t(e) are (eaded b) a eput) $eneral Mana!er- C(emical' and Fibre are not a' lar!e !roup' a' Pol)mer'. t(ereb) re8uirin! comparati&el) le'' manpower-

;=

!B$ THE SALES MANAGEMENT

T(e 'ale' mana!ement !roup compri'e' of e+port' and dome'tic mar/et=. INTERNATIONAL BUSINESS GROUP !IBG$I #PC* i' e''entiall) a manufacture e+porter i-e- e+port' it' manufactured product#n 'ome ca'e' it i' al'o a merc(ant e+porter i-e- it pro&ide' raw material' w(ic( 'ome companie' furt(er proce'' it and t(en #PC* e+port' it#PC*4' major e+portin! countrie' are Sout( Ea't A'ian countrie'. Africa. Sout( America and Au'tralia- Mo't of #PC*4' product' are on FOB 5Free On Board6 ba'i'FOB mean' t(at #PC* (a' to pa) co't incurred to load t(e material on '(ip'- #t al'o e+port' t(e product' on CLF 5Co't and Frei!(t6 ba'i'- CLF mean' t(at t(e compan) (a' to pa) t(e co't' incurred in loadin! t(e !ood' at t(e cu'tomer4' ware(ou'eAmon! Pol)mer'. #PC* e+port' P9C. * PE. ** PE. C PE and APP,ANAmon! C(emical'. #PC* e+port' *AB. CSF. CSP and ME$Amon! Fibre. #PC* e+port' onl) Acr)lic fibre#n #ndia #PC* (a' a di'tributor for di'tribution of it' product'- Similarl) for o&er'ea'. it (a' a''ociate' li/e AM$"*E. 9#NMAR etc- T(e'e a''ociate' (elp in identif)in! #PC*4' cu'tomer' abroad- #PC* 'et' it' product price' ba'ed on t(e Sout( A'ian Mar/et-

!C$ SUPPORT MANAGEMENT

Support !roup a''i't' t(e mar/etin! de&elopment in carr)in! out it' acti&itie'- T(e'e !roup' do not directl) a''i't in t(e mar/etin! acti&itie'. but do 'o indirectl)- #PC*4' mar/etin! !roup (a' 0 'upport !roup'. &i17 <- Strate!ic Mar/etin! $roup 5SM$6 %- Product Application Center 5PAC6 0-Mar/etin! Operation and Plannin! 5MOP6

;<

T(e'e !roup' collect &ital input' in term' of /eepin! updated. late't trend' and de&elopment in t(e dome'tic and international mar/et'- T(e) carr) out 'pecial 'tudie' related to o&erall mar/etin! function' from time to time- T(e) communicate to &ariou' department' and !i&e t(em feedbac/ about t(eir acti&itie'-

=. SMG !Strate!ic Mar/etin! $roup6

T(i' !roup e''entiall) carrie' out acti&itie' related to mar/et re'earc(. mar/et intelli!ence. 'ettin! up data- #t al'o carrie' out 'pecific a''i!nment' and mar/et related 'tudie'T(eir line of control i' re'tricted to carr)in! out mar/et 'pecific or product 'pecific 'tudie'. !ettin! late't information. coDcoordinatin! wit( ot(er product mana!er in 'ettin! of price'-

/. PAC !Product Application Center6

PAC act' a' an interface between t(e compan) and t(e cu'tomer'#t i' t(e tec(nical (and of t(e mar/etin! department#t (elp' in de&elopin! new product' in t(e mar/et#f t(e con'umer (a' an) problem re!ardin! t(e 8ualit). !rade etc of t(e product t(e) (a&e to approac( to t(e PACPAC al'o (a' to communicate t(e information !at(ered b) it to t(e bu'ine'' !roup'-

>. MOP !Mar/etin! Operation and Plannin!6

MOP i' e''entiall) a lo!i'tic !roupT(e mo't important acti&it) of MOP i' to facilitate mo&ement of !ood' from t(e compan)4' plant to it' di'tributor' and cu'tomer'#t coordinate' wit( different tran'port companie' in order to carr) out effecti&e di'tribution of !ood'-

;%

MAR2ETING OPERATIONS AND PLANNING !LOGISTIC GROUP6

#PC* (a' ac(ie&ed con'iderable pro!re'' in t(e area of lo!i'tic' in term' of it' 'ellin! 'trate!) due to t(e economic reform' t(at re'ulted in openin! of t(e dome'tic mar/et to t(e international competitionSpecial !roup' were 'et up to collect and compile mar/et information for a better re'pon'e to t(e mar/et c(allen!e'- Appropriate mar/etin! 'trate!ie' were wor/ed out ba'ed on t(i' informationT(e mo&ement of product i' done t(rou!( an Annual Tran'portation Contract ba'i'. w(ic( i' finali1ed durin! t(e mont( of April e&er) )earT(e compan)4' mar/et i' widel) 'pread o&er %= countrie' in A'ia. Africa and Europe. be'ide' t(e dome'tic mar/et- T(e !rowt( (a' been po''ible becau'e of t(e 'ound mar/etin!. Application networ/T(e Sale' and i'tribution networ/ compri'e' of ; Re!ional Office'. ; Sale' centre'. ? 'ale' office'. >@ di'tributor' and o&er a <== di'tribution point' 'pread acro'' t(e countr)- T(e compan) al'o pro&ide' tec(nical a''i'tance and cu'tomer 'er&ice at eac( of it' Re!ional office'-#PC*4' mar/et friendl) approac( can be /nown b) (ow well it i' 'er&in! it' cu'tomer'- #t a''ure' of pro&idin! 'er&ice' to o&er @=B cu'tomer' wit(in ;= /m' reac( and to ma+imum ;B of t(e cu'tomer' be)ond <== /m'- None of t(e cu'tomer' (a&e to tra&el for more t(an %;= /m' for #PC*4' Product'e&elopment. cu'tomer 'er&ice. 'ale' and di'tribution

;0

IMPORTANCE O, MOP !LOGISTICS GROUP$

MOP !roup i' t(e bac/bone of t(e w(ole or!ani1ation w(ic( i' re'pon'ible for t(e ware(ou'in! and mo&ement of t(e product from different plant' to &ariou' cu'tomer'. di'tributor'. Re!ional Office'. etcT(e principle ta'/ of MOP i' *o!i'tic' mana!ement- T(e lo!i'tic' mo&ement of Solid. *i8uid. $a'eou' product' i' done eit(er b) roadwa)'. railwa)' or e&en b) pipeline'- MOP i' re'pon'ible for mo&in! about ; la/( MT' of #PC*4' product' annuall)T(e Re!ional office' collect t(e order' and 'ubmit t(eir re8uirement' to t(e Pol)mer bu'ine'' $roup. C(emical Bu'ine'' $roup and Fibre bu'ine'' $roup re'pecti&el)T(e Re'pecti&e Bu'ine'' !roup' t(en 'end t(e re8uirement' to t(e Mar/etin! Operation' and Plannin! !roup'- T(e MOP !roup underta/e' all t(e lo!i'tic acti&itie'T(e ot(er acti&itie' include proce''in! frei!(t bill' for pa)ment. co&era!e of in'urance police'. (irin! of ware(ou'e'I'tora!e tan/'. appointment of 'ur&e)or. appointment of CLF A!ent' for e+port. mo&ement t(rou!( rail. '(ippin! and roadwa)'#PC* (a' ; Re!ional office' at el(i. Mumbai. Calcutta. C(ennai and A(medabad

re'pecti&el)- #t' 'ale' center' are at Baroda. aman. C)derabad. #ndore. *ud(iana and Aanpur- #t' 'ale' office' are at Baroda. B(a&na!ar. Jaipur. Na!pur. Pune and Raj/ot-

;2

ORDER PROCEDURE PROCESS

#PC* cu'tomer' can place t(eir order' t(rou!( it' re!ional office' or it' di'tributor'T(e) (a&e to ma/e ad&ance pa)ment t(rou!( c(ec/I ICa'(T(e major function of different Re!ional office' i' to recei&e pa)ment. to ma/e t(e 'ale' order' and to calculate rele&ant ta+e' and di'count' and attend to cu'tomer complaint'- #f all condition' are 'ati'fied. t(en Re!ional officer' enter' t(e cu'tomer order in SAP ')'temAt t(e (ead office t(e concerned Bu'ine'' !roup recei&e' t(e cu'tomer order' from fi&e Re!ional office' located all o&er t(e #ndia- T(e major function of Bu'ine'' !roup i' to decide t(e price' of different material'. cu'tomer wi'e allocation and re!ion wi'e allocation of t(e material'After c(ec/in! t(e a&ailabilit) of material. Bu'ine'' $roup relea'e' t(e pendin! order t(rou!( SAP ')'tem to MOP 5Mar/etin!. operation L plannin!6 departmentT(e major function of MOP i' to c(ec/ t(e a&ailabilit) of material in different ware(ou'e'. to ma/e t(e di'patc( plan. to relea'e t(e di'patc( plan to t(e concerned tran'porter' and to 'ee t(at t(e re'pecti&e loadin! for t(e da) !et' o&er well in ad&ance- T(e final di'patc( plan i' prepared and !i&en to t(e tran'porter' in t(e pre&iou' da) e&enin!- MOP al'o !i&e' 'ome additional di'patc( plan t(rou!(out t(e da). w(ic( a!ain depend' on t(e order t(at come' from t(e (ead office- Tran'porter' (a&e to place t(eir truc/' in ad&ance- T(e Product Tran'fer epartment 5PT 6 relea'e' t(e material to re'pecti&e tran'porter' and in turn tran'porter' deli&er t(e material to cu'tomer'-

;;

SOLID PRODUCT MOVEMENT C.CLE THROUGH SAP

SrNo< Tran'action Code OPOR e'cription of Tran'action Pendin! Order Report T(e MOP prepare' t(i' report in ad&ance ba'ed on t(e a&ailabilit) of material 'toc/ and t(en t(e indent' are placed to t(e tran'porterTruc/ Trac/in! S)'tem Truc/ Par/in! Entr) Ba'ed on t(e indent' placed to t(e Tran'porter'. t(e) arri&e wit( t(eir re'pecti&e truc/'. eac( of t(e truc/ i' allotted t(e Truc/ Reportin! noTruc/ Trac/in! S)'tem Truc/ Order *in/in! Once t(e truc/ i' reported. order lin/in! ta/e' place ba'ed on t(e 8uantit). t)peI!rade of t(e material to be di'patc(ed in t(at truc/Pic/in! and Po't !ood' i''ueAfter t(e truc/ order lin/in! i' done. material pic/in! note i' prepared ba'ed on t(e t)pe. !rade and 8uantit) of material to be mo&ed from a particular location#n&oice Proce''in! and Printin! After t(e truc/ i' loaded wit( t(e re8uired 8uantit) of material. t(e MPN i' (anded o&er wit( t(e in&oice to t(e tran'porter before (e lea&e'Truc/ Trac/in! S)'tem Main $ate E+it After c(ec/in! t(e wei!(t and Tollin! of order. t(e truc/ i' allowed to mo&e-

RTTS TPN

RTTS TO*

9*O%N

O#PS

RTTS M$N

;?

PROCEDURE
T(e MOP department e&er) e&enin! recei&e' pendin! order w(ic( i' to be di'patc(ed t(e ne+t da). from t(e concerned bu'ine'' !roup- Accordin! to t(e pendin! order and t(e production 8uantit) I 'toc/ a&ailabilit) at different ware(ou'e. final di'patc( plan 5plant wi'e L tran'porter wi'e6 i' prepared and !i&en to t(e tran'porter' in t(e e&enin!- MOP al'o !i&e' 'ome additional di'patc( plan for t(e da). w(ic( a!ain depend' on t(e order t(at come' from t(e (ead office- Tran'porter' are informed of t(e plan in ad&anceTran'porter' t(u' !et t(e plan in t(e e&enin! and t(e) (a&e to place t(eir truc/' t(e ne+t da)- #f t(e) fail to place t(eir truc/. t(en t(e) (a&e to pa) t(e nonDplacement penalt). w(ic( i' %; R'- IMT i-e- ;== R' for one truc/ of %=MT- T(e nonDplacement plan i' !i&en to ot(er tran'porter' or truc/' are (ired from t(e open mar/et. and t(e difference in t(e rate will be deducted from t(e re'pecti&e tran'porter' accountAfter truc/' arri&e at t(e #PC* par/in! pla1a. truc/' and t(eir document are c(ec/ed and t(en TPN i' done- ocument. w(ic( are c(ec/ed at t(e par/in! pla1a are dri&in! licen'e. P"C. RC boo/. #n'urance of truc/ and National permit- Before entr) of t(e truc/' in'ide t(e comple+. dri&er (a' to attac( a muffler to t(e truc/ for 'afet) purpo'eT(en t(e truc/ !oe' at wei!(brid!e for wei!(in! t(e empt) truc/ 5,BN6- After t(e'e t(e order lin/in! i' done at t(e concerned ware(ou'e 5TO*6- T(e ware(ou'e emplo)ee' t(en place t(e material t(at i' to be di'patc(ed at t(e loadin! point. wit( t(e (elp of for/lift operator w(o will put t(e re'pecti&e material at t(e loadin! pointT(ere are two for/lift' eac( at loadin! point and at pac/a!in! point for eac( ware(ou'eAfter t(e material (a' been placed at t(e loadin! point. labor' will load t(e material in t(e truc/- #PC* (a' 'i!ned labor contract wit( two labor contractor' and concerned contractor (a' to brin! certain number of labor' a' mentioned in t(e contractT(en t(e Product Tran'fer epartment 5PT 6 ma/e' in&oice 5#N96 cum c(allan of t(e truc/- 5#n&oice cum c(allanDAnne+ure6 T(e truc/ t(en !oe' at wei!(brid!e 5,BN6- At t(i' point t(e 'ecurit) c(ec/' t(e wei!(t and compare' wit( t(e initial i-e- tear wei!(t and find' out t(e difference between t(em- #f t(e difference i' muc( (i!(er t(en t(e truc/ i' 'ent bac/ to t(e ware(ou'eAfter t(i'. Main $ate E+it 5M$N6 of t(e truc/ i' done b) t(e 'ecurit)-

;>

FLOW DIAGRAM FOR DISPATCH PROCEDURE OF SOLID PRODUCTS

TPN 5TR"CA PARA#N$ ENTRR6 ENTRR OF TCE TR"CAS ,B 5,E#$C BR# $E6

,BN 5,E#$C BR# $E ENTRR6 ENTRR TR"CA #S ,E#$CE

TO* 5TR"CA OR ER *#NA#N$6 TR"CA ENTERS TCE ,ARECO"SE

C.CLE TIME

LOADING TIME

P#CA "P NOTE

#N9 5#N9O#CE6 #N9O#CE ONE ,BN 5,E#$C BR# $E EN#T6 *OA E TR"CA #S ,E#$CE

M$N 5MA#N $ATE EN#T6

;:

LIBUID AND GAS PRODUCTS Li<uid 6roduct5 Ben1ene Aromatic Feed'toc/ C? TO*"O* Raw Toluol 5RT*O*6 NAPTCA CD> B"TA #NE *AB CNP *R%;%: CEA9R A*AR*ATE ME$ PE$ ETCRACRR*ATE METCR*ACRR*ATE B"TR*ACRR*ATE AMMON#"M S"*PCATE

GAS PRODUCT CD2 RAFF#NATE E# CD2 RAFF#NATE D ## ETCR*ENE ON# E N#TRO$EN S*OP O#*

;@

LOADING PROCEDURE ,OR LIBUID PRODUCTS

#n ca'e of li8uid loadin! procedure. cu'tomer' (a&e to 'end t(eir truc/' for loadin! t(e material- #n ca'e of 'toc/ tran'fer and e+port. tran'portation i' carried out t(rou!( RE*O$#STCSC(emical $roup located in 9adodara ma/e' 'ale' order'- Order procedure for li8uid product i' 'ame a' 'olid product'-

STEPS ,OR LOADING O, TAN2ERS7

T(e cu'tomer order' are tailed wit( ail) i'patc( PlanEntr) of truc/' 5TPN6- Cere document' 'uc( a' ori!inal RC BOOA. in'urance. P"C. Tan/er' fitne'' certificate 5#''ued b) c(ief controller of e+plo'i&e'6. ri&er *icen'e. National permit. Pre''ure te't 5carried out b) pri&ate a' well a' !o&ernment a!encie'6 etc are C(ec/ed- After t(i' truc/' are p()'icall) c(ec/edT(en t(e Truc/ Order *in/in! 5TO*6 i' done,ei!( Brid!e Entr) 5,BN6After ,BN. if t(e tan/er i' of Relo!i'tic' t(en it i' 'ent for te'tin!Now. Tan/er' are 'ent for loadin!After loadin! t(e material wei!(t brid!e e+it 5,BN6 i' done*oad office e+it- 5*ON6 #n&oice preparationMain $ate E+it 5M$N6

LOADING POINTS
T(ere are <0 loadin! point' for loadin! li8uid at #PC* 9adodara comple+ Sr. PRODUCT NUMBER O, LOADING NoPOINTS < BENOENE % % 0 2 ; ? > NAPTCA CD? *AB CNP ME$ *R %;%: 0 < % % % <

?=

DISTRIBUTION CHANNEL AT IPCL

T(e di'tribution c(annel for 'olid product' i' '(own in t(e followin! bloc/ dia!ram-

Cu5to&er Sa'e5 IPCL 3are(ou5e CUSTOMER

IPCL
P'a t 3are(ou5e

Stoc/
Tran'fer

Di5tri%utor5 3are(ou5e EH6ort

CUSTOMER CUSTOMER

T(e di'tribution i' ba'icall) done t(rou!( road wit( t(e (elp of truc/'- #PC* (a' made a contract wit( 'ome tran'porter' for tran'ferrin! it' !ood' to t(e different citie' in #ndia- #PC* follow' < le&el c(annel for di'tributin! it' !ood' t(rou!( out t(e countr)- #PC* 'ell' it' !ood' t(rou!( di'tributor' ware(ou'e located in different citie' of #ndia- #t al'o pro&ide' door deli&er) of t(e !ood' to it' cu'tomer'#PC* follow' t(ree t)pe' of di'tribution 'trate!ie'<6 Stoc/ Tran'fer %6 irect Sale' 06 E+port

?<

SUPPL. CHAIN MANAGEMENT

Suppl) c(ain mana!ement include' t(e collection of acti&itie' from procurement of raw material to production to deli&er) to t(e end u'er'SCM i' t(e coDordination or inte!ration of a 'erie' of acti&itie'Iproce''e'J w(ic( procure. produce. and deli&er product' and Ior 'er&ice' to cu'tomerPlace i' t(e /e) element of t(e mar/etin! mi+ wit( w(ic( lo!i'tic' interface' directl)Cu'tomer 'er&ice i' an output of t(e lo!i'tic' ')'tem-

LOGISTICS OB-ECTIVEI Minimi1e total co't' of t(e product to t(e cu'tomer w(ere Total co't' Q Tran'portation co't' S ,are(ou'in! co't' S order proce''in! co't' S lot 8uantit) co't' S in&entor) carr)in! co't'-

?%

INTRODUCTION TO LOGISTICS DE,INITIONI LLo"i5tic mean' mana!ement of t(e flow of !ood' or material from point of ori!in to point of con'umption and in 'ome ca'e' e&en to t(e point of di'po'al-G T(e Cou ci' o7 Lo"i5tic5 Ma a"e&e t !CLM$ de7i e5I *o!i'tic' i' t(at part of 'uppl) c(ain proce'' t(at plan'. implement' and control' t(e efficient. effecti&e flow of and 'tora!e of !ood'. 'er&ice' and related information from t(e point of t(e point of con'umption in order to meet t(e cu'tomer'4 re8uirement-

LOGISTICS
INBOUND LOGISTICS
#n inbound lo!i'tic'. t(e material mo&e' from t(e 'upplier to t(e compan)4' raw material ware(ou'e'. t(en tran'portation of raw material from ware (ou'e' to t(e plant' i-e- to t(e production (ou'e'-

OUTBOUND LOGISTICS
#t i' mainl) concerned wit( 0 t)pe' of lo!i'tic'<- Pri&ary 'o"i5tic5I 9 in w(ic( material' mo&e' from plant area to CLF a!ent- 5Co't and frei!(t6 or from compan) ware(ou'e' to t(e CLF ware(ou'e%- Seco dary 'o"i5tic5I 9 in w(ic( material' flow would be from CLF a!ent' to t(e end u'er' 5cu'tomer'6 or w(ole'aler or retailer0- Tertiary 'o"i5tic5I 9 in w(ic( material flow from t(e retailer to t(e cu'tomer'-

OUTBOUND LOGISTICS AT IPCL ?0

B'oc4 dia"ra& o7 order 6rocedure 7or 5o'id 6roduct5 Order

C"STOMER
PLACE THE ORDER !ADVANCED PA.MENT B. CHEBUE OR DRA,T$ RELEASES DISPATCH PLAN PRODUCT DELIVERED THROUGH TRANSPORTERS

PT TTTTT 5,ARECO"SE6

RE$#ONA* OFF#CES
PLACE THE ORDER IN SAP PENDING ORDER RELEASES

CEA OFF#CE 5B"S#NESS $RO"P6

MOP EPARTMENT

E:PLAINATION T(e cu'tomer' of t(e #PC* are located all o&er #ndia- T(e cu'tomer place' t(e order at t(eir re'pecti&e Re!ional office'- T(e cu'tomer (a' to ma/e ad&ance pa)ment' t(rou!( t(e c(e8ue. or ca'(-

T(e major function' of different Re!ional office' are to recei&e pa)ment. to ma/e t(e 'ale' order' and to calculate rele&ant ta+e' and di'count' and attend to cu'tomer complaint'- #f all condition' are 'ati'fied t(en Re!ional office' enter' t(e cu'tomer order in SAP ')'temAt t(e (ead office t(e concern Bu'ine'' !roup recei&e' t(e cu'tomer order' from fi&e Re!ional office' located all o&er t(e #ndia- T(e major function' of Bu'ine'' !roup are to decide t(e price' of different material'. cu'tomer wi'e allocation and re!ion wi'e allocation of t(e material'-

?2

After c(ec/in! t(e a&ailabilit) of material'. Bu'ine'' !roup relea'e' t(e pendin! order t(rou!( SAP ')'tem to MOP 5Mar/etin!. operation L plannin! department6 T(e major function of MOP i' to c(ec/ t(e a&ailabilit) of material in different ware(ou'e'. to ma/e t(e di'patc( plan. to relea'e t(e di'patc( plan to t(e concerned tran'porter' and to 'ee t(at t(e re'pecti&e loadin! for t(e da) !et' o&er well in ad&ance- T(e final di'patc( plan i' prepared and !i&en to t(e tran'porter' in t(e pre&iou' da) e&enin!- MOP al'o !i&e' 'ome additional di'patc( plan t(rou!(out t(e da). w(ic( a!ain depend' on t(e order t(at come' from t(e (ead office- Tran'porter' (a&e to place t(eir truc/' for t(e additional plan !i&en t(rou!(out t(e da)T(e Product Tran'fer epartment 5PT 6 relea'e' t(e material to t(e re'pecti&e tran'porter' and in turn tran'porter' deli&er t(e material to cu'tomer'PRIME ACTIVITIES O, LOGISTICSI T(e /e) acti&itie' of lo!i'tic' are7

=$ I 8e tory Mai te a ce
#t i' u'uall) not po''ible or practical to pro&ide in'tant production or in'tant deli&er) to cu'tomer'- #n order to ac(ie&e a rea'onable de!ree of product a&ailabilit). in&entorie' need to be maintained a' buffer' between 'uppl) and demand- T(e e+ten'i&e u'e of in&entorie' re'ult' in t(e fact t(at. on t(e a&era!e. t(e) account u'e of appro+imatel) on t(ird of lo!i'tic' co't'. ma/in! in&entor) maintenance a /e) lo!i'tic' acti&it)-

/$ Order Proce55i "

Order proce''in! co't tend' to be minor a' compared to tran'portation or in&entor) maintenance co't'- Ne&ert(ele''. it i' a primar) lo!i'tic' acti&it)- #t' e''ential nature come' from t(e fact t(at t(ere i' a critical time element in !ettin! !ood' and 'er&ice' to cu'tomer'- Al'o it i' t(e primar) acti&it) t(at tri!!er' product mo&ement and 'er&ice deli&er)-

06 Tran'portation

?;

For mo't firm'. tran'portation i' t(e mo't important lo!i'tic' acti&it). 'impl) becau'e it ab'orb'. on t(e a&era!e. appro+imatel) two t(ird' of lo!i'tic co't'- FTran'portationG refer' to t(e &ariou' met(od' for mo&in! a product- Road# rai'# Jater and air are ju't a few of t(e popular c(oice'- Mana!ement of t(e tran'portation acti&it) u'uall) in&ol&e' in ma/in! c(oice' re!ardin! t(e met(od of '(ipment. t(e routin!'. and t(e utili1ation of &e(icle capacit)TRANSPORTATION AT IPCL

Effecti&e tran'portation mana!ement can (elp to reduce t(e total co't- #t functionall) pro&ide' two major function'I 6roduct &o8e&e t and 6roduct 5tora"e. Cere at #-P-C-*- Baroda Comple+. t(e main model u'ed for tran'portation are well mana!ed and effecti&e in co't- T(e tran'portation i' done b) road and pipelinePipeline i' u'ed to brin! t(e raw material to plant and final product at loadin! pointT(e road tran'portation i' u'ed for 'olid and li8uid product'For deli&er) of t(e product'. mainl) <@ tran'porter' are 'elected t(rou!( biddin! w(ic( co&er' eac( and e&er) re!ion of #ndia- 9ariou' re!ion' of #ndia are allocated to particular tran'porter- After 'electin! tran'porter. t(e contract procedure ta/e' place- #n contract. t(e contract condition' are written w(ic( are prepared b) e+perti'e of #-P-C-*-

ROAD TRANSPORTATION
SALIENT ,EATURES O, TRANSPORTATION CONTRACT

A contract period i' !enerall) for one )earT(e truc/' '(ould be in perfect roadwort() condition and e8uipped wit( all nece''ar) permit' and licen'e'-

T(e contractor i' re'pon'ible for pa)in! road ta+. entr) ta+. !ood' ta+. RTO ta+ and all ot(er ta+e'. le&ie' and 'urc(ar!e'??

T(e contractor i' re'pon'ible for pro&idin! re8uired number of truc/' a' per indent for eac( de'tination wit(in 'pecified wor/in! (our'- #n ca'e of failure. #-P-C-*- (a' t(e ri!(t to (ire t(e truc/' at open mar/et rate' and deduct t(e difference of rate' from t(e defaultin! contractor-

T(e con'i!nment '(ould be deli&ered wit(in t(e permi''ible tran'it period. failin! w(ic( penalt) will be impo'ed for eac( da) of dela)Tran'D'(ipment i' 'trictl) pro(ibited- T(e tran'porter i' 'olel) re'pon'ible for an) act of ne!li!enceT(e contractor i' re8uired to 'ubmit (i' bill' alon! wit( nece''ar) documentar) e&idence re!ardin! 'afe deli&er) of !ood' at t(e de'tination. wit(in t(e pre'cribed time limit-

Neit(er t(e corporation nor t(e tran'porter i' liable for an) failure or an) dela) if cau'ed b) Force Majeure. i-e- rea'on' li/e fire. e+plo'ion. flood. eart(8ua/e. 'tri/e'. epidemic'. !o&ernment and ot(er uncontrollable act'-

A rea'onable 'ecurit) depo'it a' a percenta!e of e'timated &alue of contract i' obtained from t(e contractor to ta/e care of an) financial lo'' cau'ed to t(e corporation b) t(e contractor-

De'i8ery o7 "ood5 E #t mean' t(at t(e deli&er) of current 8uantit) and 8ualit) of !ood' a' per in&oice at t(e de'tination and obtainin! t(e proof of deli&er) of t(e con'i!nment from t(e con'i!nee on t(e lorr) receipt- T(i' '(all include t(e 'i!nature and rubber 'tamp of t(e con'i!nee. receipt 8ualit). date and time of receipt. '(orta!e'. dama!e'. cut and torn 8ualit). 'weepin! 8uantit)-

Tran'it lo'' and Accident' D #-P-C-*- '(all reco&er t(e full &alue of t(e '(orta!e 8uantit) of !ood'. cau'ed in t(e interalia due to in dama!e. pilfera!e and t(eft in tran'it or nonDdeli&er) etc-

T(e dri&er of t(e &e(icle '(ould carr) t(e duplicate cop) of t(e e+ci'e in&oice w(ic( indicate' e+ci'e particular'- #n t(e e&ent of lo'' of 'uc( document'. dri&er' '(all file a F#R at t(e neare't police 'tation?>

T(e e&ent of an accident. t(eft. pilfera!e. #-P-C-*- i' entitled to reco&er t(e entire &alue of t(e !ood'#n t(e e&ent of an accident. robber). t(eft. pilfera!e. &e(icle (a&in! been 'tolen or lo't or &e(icle meetin! an) uncured incident. nece''ar) action' re8uired under t(e law to be ta/en-

Malpractice' and Contamination of !ood' E T(e tran'porter '(all en'ure t(at t(e !ood' do not !et contaminated due to an) cau'e w(at'oe&er#f a &e(icle u'ed under t(i' a!reement found to be in&ol&ed in an) malpractice b) t(e &e(icle owner or t(e dri&er or an) ot(er per'on. #-P-C-*- '(all blac/li't t(e &e(icle and immediatel) 'u'pend it' operation-

Tran'it Period E A 'tandard tran'it time i' decided for eac( route i' decided- For &e(icle' ta/in! more t(an 'uc( a tran'it time. penalt) '(all be le&iedR*, Re'triction' 5Re!i'tered *aden ,ei!(t6 ET(e tran'porter '(all en'ure t(at t(e wei!(t and t(e &olume of t(e !ood' t(at are loaded for con'i!nment in t(e &e(icle i' wit(in t(e R*, limit' pre'cribed b) t(e &e(icle RTO-

P"C 5Pollution under Control6 E T(e &e(icle' '(all compl) under all pollution re8uirement' includin! P"C certificateTermination E T(e a!reement '(all 'tand automaticall) terminated in t(e e&ent of <- An) part) bein! adjudicated. in'ol&ent or bein! a compan) re'ol&ed or ordered to be wound up %- ,(ere breac(. default or &iolation of an) of t(e term' of t(e a!reement i' committed0- T(e a!reement can be terminated b) eac( part) b) !i&in! a written notice of 0= da)' to t(e ot(er part) wit(out incurrin! an) liabilit)-

CONDITIONS ,OR THE CONTRACT IN IPCL

?:

<-

T(e corporation re'er&e' t(e ri!(t of acceptin! or rejectin! t(e w(ole or an) part of t(e tender- T(e tenderer '(ould code competiti&e or wor/able rate for operatin! t(rou!(out t(e contract period-

%- EM

5Earne't Mone)

epo'it6 E EM

of 'ucce''ful tenderer '(all eit(er be

con&erted in to 'ecurit) depo'it toward' t(e fulfillment of contract or refunded after 'ubmi''ion of ban/ !uarantee0- Securit) depo'it E in ca'e of ca'( 'ecurit) depo'it t(e balance amount i' paid b) wa) a' under emand raft Ban/ !uarantee from an) nationali1ed ban/ or 'pecified ban/ in fa&or of #PC*2- Corporation '(all pa) intere't T :B per annum on t(e ca'(I 'ecurit) depo'it;- FORCE MAJE"RE E uncontrollable condition' li/e fire. e+plo'ion. and natural cau'e' li/e flood. eart( wa/e. 'tri/e' etc- neit(er t(e corporation nor t(e tran'port contractor '(all be liable or deemed to be in fault?- Settlement of di'puteI arbitration E in ca'e of an) di'pute' t(e rule' of arbitration of #ndian council of arbitration '(all be bindin! of t(e part)-

RAIL3A. TRANSPORTATION
Railwa) tran'portation al'o pla)' an important role in outbound lo!i'tic of #-P-C-*

?@

Plannin! 'ta!e D En'ure' a&ailabilit) of order'. material a&ailabilit) 5i-e- !rade wi'e a' per t(e order6. a&ailabilit) of loadin! labor'. cleanin! of wa!on' etcemurra!e i' t(e penalt) for dela) in loadin! t(e material in t(e wa!on' w(ic( i' ma+imum ; (our',arfare i' t(e penalt) for unloadin! t(e material from t(e wa!on' and remo&in! it from t(e platform' to t(e compan)4' de'tination- Ma+imum time limit i' ; (our',RF 5,a!on Re!i'tration Fee6 i' R'-?==ID for 2 w(eeler' and R'- :==ID for : w(eeler'#-P-C-*- product fall under cate!or) %<= for railwa) tran'portation. t(e price' of w(ic( are alread) mentioned in t(e cate!or) li't of t(e railwa)'3C(urc( !ate4 i' t(e controllin! 'tation for ,e'tern Railwa)'Cancellation of boo/in! for wa!on' i' allowed before 2: (our'Railwa) Receipt i' i''ued b) t(e railwa) aut(orit) w(ere it i' mentioned 3'aid to contain 'o and 'o material4- #t mean' railwa) belie&e' w(at t(e compan) 'a)' but it i' not re'pon'ible for an) de&iation in t(e 8uantit) durin! tran'portation-

For 'afet) compan) 'eal' all t(e wa!on' wit( oneD time loc/'Railwa) (a' t(e aut(orit) to c(ec/ t(e !ood' an) time for 8uantit) and 'ecurit) purpo'ee'tination' are informed of t(e plan in ad&ance for 'moot( tran'portation#n'urance of t(e con'i!nment i' ta/en for compen'ation if an) dama!e or lo'' of !ood' ta/e' placeAd&anta!e of railwa) tran'portation i' t(at it 'pread' le'' pollution and t(e !o&ernment earn' re&enue- #t i' c(eaper wa) of tran'portation w(en !ood' are to be tran'ported to fart(er di'tance' in bul/-

i'ad&anta!e E T(ere are more c(ance' of dama!e in (andlin! of !ood' durin! railwa) tran'portation-

TRANSPORTATION B. 3ATER ROUTE INTERNATIONAL TRADE

>=

IMPORTI #mport (a' been defined a' brin!in! into #ndia t(e !ood' from a place out'ide t(e #ndia- #ndia include' t(e territorial water of #ndia- Territorial water' e+tend up to <% nautical mile' into t(e 'ea from t(e coa't of #ndia- T(e liabilit) to pa) import dut) commence' a' 'oon a' !ood' enter t(e territorial water of #ndia- Cowe&er for admini'trati&e purpo'e. it i' collected w(en t(e !ood' are unloaded on t(e land of #ndiaE:PORTI E+port (a' been defined a' ta/in! !ood' out of #ndia to a place out'ide #ndia- T(e liabilit) to pa) e+port dut) commence' a' 'oon a' !ood' lea&e t(e territorial water' of #ndia- Cowe&er. for admini'trati&e purpo'e it i' collected w(en !ood' are on t(e &e(icle for tran'port out of #ndia-

E:PORTS
THEOR. RELATING TO THE TOPIC E+port i' one of t(e mo't lucrati&e bu'ine'' acti&itie' in #ndia- T(e !o&ernment al'o pro&ide' &ariou' incenti&e' to t(e e+porter' for earnin! &aluable forei!n e+c(an!e for t(e countr) b) meetin! t(eir re8uirement' for importin! modern tec(nolo!) and e''ential input'- Be'ide'. t(e income from e+port bu'ine'' i' al'o e+empted to t(e 'pecified e+tent under t(e #ncome Ta+ Act. <@?<- Refund of central e+ci'e L cu'tom dut) on e+port i' al'o made under t(e dut) drawbac/ 'c(eme of t(e !o&t- T(ere i' no 'ale' ta+ on product' meant for e+port'- 9ariou' 'c(eme' (a&e been 'implified to a !reat e+tent under new EN#M polic) %==%D%==>-

De7i itio o7 I ter atio a' Lo"i5tic5I e'i!nin! and mana!in! of a ')'tem t(at control' t(e flow of material in and out of #nternational Corporation-

><

*o!i'tic' !ained reco!nition 'ince ,orld ,ar ## w(en. mar/etin! became predominant o&er manufacturin!. re8uirin! concentrated attention to cu'tomer want'T(e word Flo!i'ticG mean' Ft(e mo&ement. 'tora!e and 'uppl) of troop' and e8uipment-G T(e important point about *o!i'tic' i' t(at it i' muc( more t(an tran'portation or t(e mere p()'ical mo&ement of !ood'- #nternational lo!i'tic' deci'ion affect t(e number and location of production and 'tora!e facilit). production 'c(edule. in&entor) mana!ement and e&en firm4' le&el of in&ol&ement in international competition- #n ot(er word we can 'a) t(at it i' clo'el) a''ociated wit( t(e 3 -u5t i Ti&e !-IT$ mana!ement tec(ni8ue-4 Ba'icall). lo!i'tic' i' t(e abilit) to !et t(e ri!(t product at t(e ri!(t place at t(e ri!(t time- O&erall it i' t(e plannin!. or!ani1in!. controllin! and e+ecution of t(e flow of !ood' from purc(a'in! t(rou!( production and di'tribution to t(e final cu'tomer in order to 'ati'f) t(e re8uirement' of t(e mar/et- #t combine' production. di'tribution and tran'portation on !lobal ba'i'- So. t(e ba'ic function of *o!i'tic' in international competition. i' to create FPlace and Time utilit)G in !ood'. locatin! t(em at t(e ri!(t place. at t(e ri!(t time and al'o in ri!(t 8uantit) to cu'tomer demand-

CATEGORIES O, E:PORTERS E+porter mean' a per'on w(o e+port' or intend' to e+port and (old' a &alid #mportD E+port code number- E+porter' can be cate!ori1ed in to t(e followin!7 Merc(ant E+porter E Ce i' one w(o manufacture' !ood' from t(e mar/et or from a manufacture and t(en 'ell' t(em to forei!n bu)er'-

Manufacture E+porter E Ce i' one w(o manufacture' !ood' (im'elf and intend' to e+port 'uc( !ood' to forei!n bu)er'E+port oriented unit. and E+port proce''in! 1one E "nit' underta/in! to e+port t(eir entire production of !ood' and 'er&ice' ma) be 'et up under t(e EO" 'c(eme and EPO 'c(eme>%

HANDLING O, E:PORTS For an) manufacturer to commence e+port. (e (a' to follow four ba'ic 'tep'7D ,illin!ne'' to e+port and (a&e need for world mar/et 'ur&e)E'tabli'( a bu)er and ne!otiateComplete all formalitie' rele&ant to (i' product' a' per t(e re8uirement of t(e countr) of ori!in Find a 'uitable clearin! and forwardin! a!ent to (andle t(e actual e+port of t(e !ood'T(e 'ucceedin! pa!e' are de&oted to actual mo&ement of car!o from t(e point of ori!in till t(e point of di'c(ar!e-

E:PORT MAR2ETING
#PC* e+port a wide ran!e of product' to appro+imatel) <0 countrie'Major 0 mar/et' are C(ina. 9ietnam and t(e European "nion w(ic( accounted for appro+imatel) ;2B. <@B and t(e :B re'pecti&el) of total e+port'#-P-C-*- obtain' FTrainin! Cou'e 'tatu' from t(e !o&ernment w(ic( !i&e' certain admini'trati&e and re!ulator) ad&anta!eG- ,it( !rowin! international >0

competiti&ene''. #PC* wa' able to ma/e deeper impact in ad&ance in !lobal petroc(emical mar/et'T(i' i' reflected in #PC*4S increa'ed e+port-

urin! t(e )ear %==2D%==;. #-P-C-*- e+ported <.?0: crore 5"S H 0>2 million6 wort( manufacturin! !ood'#ndian Petroc(emical' Corporation *imited i' now a Reliance !roup compan)- An inte!rated #PC*DReliance mar/etin! team mar/et' t(e compan)4' product'- T(e inte!ration aim' to facilitate cu'tomer to '(op (i' entire raw material need' from a 'in!le window- #n &iew of t(i' t(e B%B facilitie' of #PC* a' well a' Reliance (a&e been mer!ed-

ROLE O, A C.H.A.M ,REIGHT ,OR3ARDER E LOGISTICS IN INTERNATIONAL TRADEI

CUSTOMS HOUSE AGENTI FAccordin! to 'ec- <2? of t(e cu'tom' act <@?%. CCA i' a per'on licen'ed under t(e central board of E+ci'e L Cu'tom' re!ulation to act a' an a!ent for t(e tran'action of an) bu'ine'' relatin! to entr) or departure of con&e)ance' or t(e import or e+port of !ood' at an) cu'tom' 'tationG-

NEED ,OR A CHAI ,RIGHT ,OR3ARDERI LOGISTICS AGENTI T(e import or e+port of !ood' in&ol&e' 8uite a lot of procedural formalitie'- T(e'e formalitie' (a&e to be ob'er&ed b) importer. e+porter or pa''en!er a' t(e ca'e ma) beBut in mo't ca'e'. t(e cu'tom 'tation would be far awa) and it ma) not be po''ible for t(e importer I e+porter to attend to 'uc( wor/ promptl)- A' clearance i' allowed onl) after t(e completion of formalitie' and pa)ment of dut). a pro&i'ion for licen'in!

>2

cu'tom' (ou'e a!ent'. to pre'ent t(e importer I e+porter for t(e clearance wor/. (a' been made in t(e cu'tom' act <@?%SERVICES PROVIDED B. CHAI <- Preparin! t(e cu'tom' entr) form and a''urin! t(at all t(e nece''ar) document' are in order for proce''in! t(rou!( cu'tom' c(annel'%- Calculatin! t(e amount of dut) accordin! to t(e FTariff ActG0- #f nece''ar). re8ue'tin! e+ten'ion' of t(e !eneral order time from t(e collector of cu'tom'2- Pro&idin! t(e 'uret) bond re8uired b) t(e cu'tom' aut(orit). w(ic( !uarantee' full pa)ment of all dutie';- Arran!in! for t(e !ood' to be tran'ferred under bond from t(e port of entr) to an interior de'tination for cu'tom' clearance?- Obtainin! 'pecial permit' for immediate deli&er) of peri'(able !ood'>- Preparin! t(e ware(ou'in! entr) bond and arran!in! for !ood' to be tran'ferred to t(e bonded ware(ou'e:- Arran!in! for t(e wit(drawal of !ood' from t(e bonded ware(ou'e in part or completel)- Pa)ment of dutie' will be made accordin!l) to t(e 8uantit) of !ood' wit(drawn@- Pur'uin! appropriate c(annel' if di'a!reement' occur wit( cu'tom' o&er rate or &alue of apprai'ed !ood'-

E:PORT PROCEDURE
START E:PORT ORDER ORDER ACCEPTANCE LETTER O, CREDIT

>;

PRODUCTION E PROCUREMENT MARINE INSURANCE POLIC. INVOICE PAC2ING LIST SD, !STATUTOR. DECLARATION ,ORM$ CERTI,ICATE O, ORIGIN AR9E= ,ORM SHIPPING BILL STOP

PROCEDUREI
=. E:PORT ORDERI An e+port order i' a commercial tran'action. w(ic( i' important to t(e e+porter L t(e importer. and i' al'o of concern to t(eir re'pecti&e countrie'. 'ince it affect' t(e balance of pa)ment po'ition of bot( t(e countrie'- T(e e+porter i' re8uired to produce copie' of e+port order to &ariou' !o&ernment department' I financial in'titution'- T(e compan) recei&e' t(e confirmed e+port order I purc(a'e order from it' o&er'ea' cu'tomer on a!reed term' L condition'-

>?

/. ORDER ACCEPTANCEI T(e order acceptance i' anot(er important document prepared b) t(e e+porter. confirmin! t(e acceptance of order placed b) t(e importer- "nder t(i' document. t(e e+porter commit' t(e '(ipment of !ood' co&ered at t(e a!reed price durin! a 'pecified time- #t normall) co&er' t(e name L addre'' of t(e indenter. con'i!nee. port of '(ipment. countr) of final de'tination de'cription of !ood'. term' of pa)ment' etc>. LETTER O, CREDIT!LNC$I *IC i' a document i''ued b) t(e importer4' ban/ in fa&or of t(e e+porter. !i&in! (im aut(orit) to draw bill' up to a particular amount co&erin! a 'pecified '(ipment of !ood' L a''urin! (im of pa)ment a!ain't t(e deli&er) of '(ippin! document'- T(e bu)er4' ban/ 'end' ori!inal *IC to t(e e+porter L after obtainin! it. t(e account' mana!er after &erification accept' it*. MARINE INSURANCE POLIC.I #f t(e deli&er) term i' on C#F. it become' obli!ator) for t(e e+porter to arran!e for in'urance- T(e e+porter t(u' arran!e' for tran'it in'urance L obtain' in'urance polic) L co&er note from t(e in'urance compan)-

?. COMMERCIAL INVOICEI #t i' one of t(e mo't important document' i''ued b) t(e 'eller in t(e 'tandardi1ed format- T(e in&oice i' u'uall) made out for t(e full reali1able amount of !ood' a' per t(e trade term- T(e *o!i'tic' department ma/e' 'i+ copie' of t(i' document once t(e !ood' are read) for di'patc(- #f t(e e+port document' are drawn under *IC. t(e de'cription of !ood' in t(e commercial in&oice mu't corre'pond wit( de'cription in t(e credit1. PAC2ING LISTI #t i' a li't '(owin! detail' of !ood' contained in eac( parcel I '(ipment- S(ow' itemD b)Ditem t(e content' of t(e container'. mea'urement'. wei!(t parcel' '(ipped to

>>

enable t(e bu)er I recei&er of t(e '(ipment to c(ec/ '(ipment- Pac/in! li't (a' to be prepared in t(e ali!ned document format+. GR ,ORM N SD,I $uaranteed remittance form i' a declaration. a definite underta/in! between t(e e+porter L t(e RB# to depo'it t(e amount of forei!n e+c(an!e mentioned in t(e *IC to t(e ban/ wit(in 'i+ mont(' from t(e date of '(ipment- Purpo'e of $R form i' to enable RB# to en'ure t(at e+port proceed' from t(e e+port are recei&ed in #ndia t(rou!( proper ban/in! c(annel' onl) wit(in rea'onable time limit'- $R form i' in ali!ned documentar) format and i' prepared in duplicateOn account of introduction of Electronic ata #nterc(an!e 5E #6 ')'tem at certain eclaration cu'tom' office'. w(ere '(ippin! bill' are proce''ed electronicall). t(e e+i'tin! declaration in $R form i' replaced b) a declaration from S F 5Statutor) Form6$R form i' u'ed in ca'e of manual documentation- T(e cu'tom' aut(orit). for onward 'ubmi''ion to RB# retain' t(e ori!inal cop)uplicate cop) of t(i' form i' !i&en to e+porter after it i' cu'tom atte'ted L t(i' document mu't pa'' t(rou!( t(e medium of an aut(ori1ed dealer in forei!n e+c(an!e in #ndia wit(in %< da)' of '(ipment-

G. GSP CERTI,ICATE N CERTI,ICATE O, ORIGINI T(e EEC member countrie' (a&e adopted t(e !enerali1ed ')'tem of preference'"nder $SP. manufacture' and 'emiDmanufacture' from de&elopin! countrie' includin! #ndia will be entitled to a conce''ional rate' of import dut) in t(e'e countrie'D. AR9E= ,ORMI T(i' form i' for central e+ci'e clearance- E+ci'e i' ba'icall) production ta+- #t i' pa)able to t(e !o&ernment w(ene&er. !ood' produced in #ndia are read) for di'tribution in #ndia- Since !ood' meant for e+port are to be 'old abroad. 'uc( !ood' are e+empt from pa)in! e+ci'e dut)T(ere are / &et(od5 7or 6ay&e t o7 ce tra' eHci5e dutyI

>:

To pa) t(e e+ci'e dutie' on !ood' meant for e+port L t(en claim refund of t(e 'ame. after '(owin! t(e proof of e+port'E+port under bond7 To pro&ide a 'ecurit) to t(e !o&ernment. t(e e+porter ma/e' a bond wit( t(e central e+ci'e aut(oritie'- Mone) debited in (i' account will later on be credited after proof of e+port' i' pre'ented- $ood' are remo&ed from factor) wit(out prior pa)ment of dut) 'ubject to t(e e+ecution of bond wit( 'ecurit) for a 'um e8ui&alent to t(e dut) c(ar!eable on t(e !ood' to be e+ported- ARDE< form i-e- t(e e+emption certificate i' to be prepared in 'i+tuplicate. in 'uc( ca'e'Ori!inal. duplicate L )ellow cop)7 D Cu'tom'Triplicate. 8uadruplicate L 8uintuplicate copie'7 D Central e+ci'e departmentAfter t(e '(ipment i' done. t(e cu'tom attend ori!inal L duplicate copie' of ARDE< form w(ic( i' 'ent to central e+ci'e department a' proof of e+port L t(en t(e bond i' credited-

=0. SHIPPING BILLI S(ippin! bill i' t(e main document re8uired b) t(e cu'tom' for allowin! '(ipmentBa'icall) '(ippin! document i' of 2 t)pe'a6 b6 d6 EPB S(ippin! Bill 5Blue6 ut) rawbac/ S(ippin! Bill 5$reen6 EEC S(ippin! Bill 5,(ite6 S(ippin! bill i' a document. w(ic( (a' to be filled wit( t(e cu'tom' in order to enable t(e !ood' to be made read) for e+port- S(ippin! bill' are prepared in ?D> copie'-

c6 S(ippin! Bill for ut) Free $ood' 5,(ite6

>@

<- Ori!inal E #t i' for cu'tom' 'tati'tical record%uplicate E #t i' a proof of e+amination of car!o- T(e cu'tom' aut(oritie' write a report on t(e bac/'ide of it- Ori!inal and duplicate copie' are /ept wit( t(e cu'tom' onl)0- Triplicate E T(i' i' EPB I rawbac/ cop)2- Kuadruplicate E #t i' t(e e+port promotion cop)- #t i' a proof t(at !ood' are actuall) e+ported out of #ndia;- Triplicate L Kuadruplicate copie' are returned to t(e e+porter after it i' cu'tom' atte'ted?- Port tru't cop) # >- Port tru't cop) ## E Port tru't copie' or tran'ference copie' !o alon! wit( t(e truc/ I car!o to t(e !atewa) port of cu'tom':- Port tru't cop) ### E Port tru't ### i' a C,C 5Central ware(ou'in! corporation6 cop)-

LOGISTICS SUPPORTS MAR2ETING

T(e Ffour P4'G of t(e mar/etin! mi+ re8uire t(at for a firm to be 'ucce''ful an) mar/etin! effort mu't inte!rate t(e idea' of (a&in! t(e ri!(t product. at t(e ri!(t price. publici1ed wit( proper promotion. and a&ailable in t(e ri!(t place*o!i'tic' pla)' a critical role particularl) in 'upport of !ettin! t(e product to t(e ri!(t place- Primar) !oal of lo!i'tic' i' to pro&ide cu'tomer 'er&ice- Ac(ie&in! cu'tomer 'ati'faction re8uire' an inte!rated effort bot( internall) and wit( 'upplier' and ultimate cu'tomer' and t(e'e can be ac(ie&ed wit( t(e (elp or *o!i'tic' Mana!ementFollowin! fi!ure 'ummari1e' t(e tradeoff' re8uired between and amon! t(e major element' of t(e mar/etin! mi+ and lo!i'tic'-

:=

COST TRADE9O,,S REBUIRED IN MAR2ETING AND LOGISTICS

PRODUCT

PRICE

PROMOTION

PLACE NCUSTOMER
SERVICE LEVELS

M A R 2 E T I N G

L O G I S T I C S

INVENTOR. CARR.ING COSTS

INVENTOR. MANAGEMENT REVERSE LOGISTICS PAC2AGING

TRANSPORTATION COSTS
TRA,,IC E TRANSPORTATION

:<

LOT BUANTIT. COSTS

MATERIAL HANDLING PROCUREMENT

3AREHOUSING COSTS
3AREHOUSING E STORAGE PLANT E 3AREHOUSE SITE SELECTION

ORDER PROCESSING E IN,ORMATION COSTS

ORDER PROCESSING LOGISTICS COMMUNICATIONS DEMAND ,ORECASTING NPLANNING

PRICING POLIC. IN IPCL

<- E+Dfactor) a' well a' e+Dpoint 'ellin! pricin! i' inclu'i&e of e+ci'e dut)%- For pa)ment of e+ci'e dut) on e+Dfactor) 'ale'. frei!(t '(ould not be included0- For e+Dfactor) 'ale'. e+ci'e dut) '(all be paid after con'iderin! deduction of ca'( di'count if applicable2- Kuantit) di'count if applicable will not be deducted from t(e ba'ic price for t(e purpo'e of e+ci'e dut);- Ca'( di'count if applicable i' to be allowed po't e+ci'e on t(e li't price?- Price' for prime !rade' of product' are (i!(er t(an t(e nonDprime !rade' and wa'te>- Price' are inclu'i&e of 'tandard pac/in! c(ar!e':- Kuantit) di'count' more t(e 8uantit) purc(a'ed more t(e di'count i' !i&en-

:%

@-

Ca'(

i'count i' !i&en in t(e form of earl) pa)ment incenti&e' before

di'patc( of product etc- No ca'( di'count i' !i&en on wa'te<=- Additional di'count i' !i&en to e+porter'<<- Credit polic) 5<2 da)' intere't free credit6 for cu'tomer' and dealer'<%- Ca'( 'ale'. intere't T%2B will be c(ar!ed for dela)ed pa)ment-

PROMOTIONAL MEASURES
Spon'or'(ip of e&ent' li/e cric/etConduct 'eminar'. ')mpo'ium and trade fair'Encoura!e' entrepreneur'(ip$rade 'election card-

:0

Su66orti " acti8itie5 o7 'o"i5tic5 areI D D D ,are(ou'in!Protecti&e Pac/a!in! Product Sc(edulin! DMaterial' Candlin!DAc8ui'itionD #nformation Maintenance-

3AREHOUSING
All t(e 'olid product' are pac/ed in 'pecified wei!(t- ifferent product' are pac/ed in different wei!(t'. w(ic( are !i&en belowPOL.MER GROUPI9 Product Name * PE PPCP P9C PPD#9 Specified ,ei!(t %;/!- 5Standard6 %;/!- 5Standard6 %;/!- 5Standard6 %;/!- 5Standard6

RUBBER GROUPI9 Product Name PBR E # PBR D ## Specified ,ei!(t 0=D0;/!- Appro+imatel) 0=D0;/!- Appro+imatel)

:2

,IBRE GROUPI9 Product Name AF SAF Specified ,ei!(t 5Per Bale6 %;=/!- 5Appro+imate6 0==/! 5Appro+imate6

LOCATION O, PRODUCTS
After pac/a!in! of t(e product'. t(e) are 'tored in t(e proper location accordin! to t(e batc(i'patc(able 8uantit) of production i' cleared after proper 8ualit) c(ec/ w(ere t(e !radation of t(e product' i' determined- After t(e 8ualit) c(ec/. it i' tran'ferred to t(e ware(ou'e and !et' entered in t(e SAP ')'tem,ooden pallet' are u'ed for carr)in! t(e pol)mer product' of 2= ba!' of %;/! eac(,ei!(t' are 'tac/ed 5< ton6 and mo&ed b) t(e for/lift truc/- T(e e8uipment' u'ed in t(e pac/a!in!. 'tac/in! and mo&in! product' are '(own a' below7D

,OR2LI,T TRUC2

CONVE.ER

:;

HANDLING# STORAGE# PAC2AGING# PRESERVATION E DELIVER.I9

Stora"e o7 t(e ,i i5(ed ProductI Fini'(ed product' are recei&ed from t(e plant b) t(e product tran'fer department 5PT 6- T(i' function' a' an interface between t(e mar/etin! department L t(e production department- Cowe&er in t(e recent re'tructurin! of t(e functional acti&itie' of #PC* t(ere i' a plan to eliminate t(e PT Pac4a"i "I Ba!!in! i' done wit( a 'emi automatic mac(ine- *ot number or bale number i' mar/ed on eac( of t(e ba!'- Care i' ta/en to en'ure t(at onl) !raded material pac/ed in intact ba!' are di'patc(ed- #n ca'e of 8ualit) complain b) t(e cu'tomer t(e batc( no- or lot no- printed on t(e ba! will (elp in tracin! out t(e cau'e of t(e complaint'T(e pac/a!e material u'e b) #PC*4' en&ironment friendl) a' it can be rec)cled for furt(er u'eJ proper care i' ta/en in tran'portin! t(e material in order to pre&ent an) dama!e to t(e ba!' or to t(e material'Pre5er8atio I Pac/ed ba!' are 'tored in ware(ou'e to pre&ent e+po'ure to rain and 'unli!(t- #n rare circum'tance' w(en ware(ou'e i' full. ba!' are 'tored in an open area wit( proper protection to pre&ent effect of rain and 'unli!(t on t(e ba!!ed materialDe'i8ery7 T(e deli&er) procedure followed in #PC* i' &er) ')'tematic after t(e introducin! of SAP eac( tran'action i' cent percent full proof- #n t(e deli&er) proce'' t(ere i' a con&enient trac/in! ')'tem in w(ic( one i' able to 'ee t(e 'tatu' of t(e &e(icle loadin! and arri&al at t(e final de'tination- T(e !ood' w(en t(e) reac( t(e de'tination are recei&ed b) t(e con'i!nee and a !ood' receipt note i' prepared- An) deficienc) in t(e receipt of material

:?

need' furt(er action 'uc( a' reco&er) from t(e tran'porter or lod!in! claim wit( t(e in'urance compan)- T(u'. t(e total product mo&ement i' well 'ecured-

IPCL 3AREHOUSES AT DI,,ERENT LOCATIONS

A(medabad Baroda Sil&a''a Na!pur el(i Aanpur $(a1iabad C(ennai #ndore aman Mumbai Calcutta *ud(iana Faridabad Ban!alore C)derabad

IMPORTANCE AND USE O, LOGISTICS *o!i'tic' !ained reco!nition 'ince ,orld ,ar ##. w(en mar/etin! became predominant o&er manufacturin!. re8uirin! concentrated attention to cu'tomer ,ant'Concurrentl). lo!i'tic' i' t(e delicate fulcrumDbalancin! product wit( con'umptionCence it pla)' a &er) important role in #nternational CompetitionT(e mo't important point about lo!i'tic' i' t(at it i' muc( more t(an tran'portation or p()'ical mo&ement of !ood'- Ba'icall). t(e art of lo!i'tic' i' t(e abilit) to !et t(e ri!(t product at t(e ri!(t place at t(e flow of !ood' from purc(a'in! t(rou!( production and di'tribution to t(e final cu'tomer in order to 'ati'f) t(e re8uirement' of t(e mar/et- #t combine' production. ware(ou'in! di'tribution and tran'portation on !lobal ba'i'So t(e ba'ic function of lo!i'tic' in #nternational Trade i' to create place and time utilit) in !ood'. locatin! t(em at t(e ri!(t place. at t(e ri!(t time and al'o in t(e ri!(t 8uantit). to cu'tomer demand-

:>

ROLE O, GOVERNMENT IN LOGISTICS #n #ndian conte+t. t(e !o&ernment pla)' a 'i!nificant role in lo!i'tic'- Some of t(e important le!i'lation' t(at affect lo!i'tic' are7 =. Ce tra' Sa'e5 TaH !CST$ i' a ta+ on inter'tate commodit) 'ale'- #n 'ituation w(ere t(ere i' a re'ale in t(e recei&in! 'tate. local 'ale' ta+ i' al'o incurred- CST i' not incurred if t(ere i' a branc( in t(e recei&in! 'tate for t(e or!ani1ation. and t(en t(e inter'tate mo&ement would be con'idered a' a 'toc/ tran'fer- Often. or!ani1ation' 'et up branc(e' in e&er) 'tate more a' a mean' of a&oidin! CST rat(er t(en a' a functional re8uirement/. EHci5e duty i' a ta+ on eac( product produced in t(e factor)>. Octroi A lo!i'tic' implication of octroi i' t(at if ware(ou'e' and tran''(ipment

point' are out 'ide t(e octroi limit t(en octroi need' to be paid*. MODVAT# w(ic( 'tand' for Modified 9alue Added Ta+- #t en'ure' t(at double c(ar!in! of e+ci'e dutie' i' pre&ented and eliminate' t(e need for repa)ment and future collection of refund of 'uc( dutie'- ,(en a product t(at attract' e+ci'e i' u'ed a' a component for anot(er product. t(e raw material in&entor) co't' would now be lower. t(u' facilitatin! planned procurement-

?. T(e Motor Ve(ic'e Act# =DGG# (a' brou!(t in 'trict re!ulation' to pro(ibit o&erloadin! of truc/' and en'ure better 8ualit) of dri&er'- But 'ome of t(e nort(ern 'tate' ille!all) allow' for o&erloadin! of t(e truc/'-

::

REPORT ON C.CLE TIME STUD. AT LDPE 3AREHOUSE

OB-ECTIVE

To reduce t(e time between t(e procedure' of TO* to #N9O#CE at * PE 5low den'it) pol)et()lene6 ware(ou'eTo under'tand t(e lo!i'tic'. time and motion 'tud) in outbound lo!i'tic' at #PC* Baroda Comple+"nder'tandin! t(e be(a&ior of contract laborer' of ware(ou'e-

TIME DURATION O, STUD. ,e 'elected t(e period of 2 da)' i-e- from <=I=?I=? to <2I=?=? out of 0= da)' of JuneFor effecti&e 'tud). we u'ed t(e data of all t(e 2 da)' i-e- all t(e truc/' w(ic( came to t(e * PE ware(ou'e-

SOURCE O, DATA ,OR ANAL.SIS SAPDRTTS MO "*E i' u'ed for TO* 5Truc/ Order *in/in!6 w(ic( i' done at t(e ware(ou'e after t(e proce'' of ,BN 5,ei!( Brid!e Entr)6-TO* i' done ba'ed on t(e 8uantit). t)peI!rade of t(e material to be di'patc(edSAPD9*O%N i' done after TO*. for ma/in! material pic/in! note ba'ed on t(e t)pe. !rade and 8uantit) of material to be mo&ed from a particular locationSAPD O#PS i' u'ed for #n&oice Proce''in! after t(e truc/ i' loaded wit( t(e re8uired 8uantit) of material- T(e #n&oice i' (anded o&er to t(e tran'porter alon! wit( t(e MPN 5Material Pic/in! Note6-

:@

,ACTORS A,,ECTING TOTAL C.CLE TIME O, TRUC2 T(e main purpo'e of an) project i' to 'tud) t(e ')'tem and find t(e problem' and loop(ole'. w(ic( e+it' in t(e ')'tem a' (ere at #PC* Baroda comple+- ,e (a&e been a''i!ned t(e problem of (i!( c)cle time and for t(at we (a&e to ob'er&ed t(e ')'tem and found out t(e 'olution for reduction of c)cle timeFor t(at we ob'er&ed t(e ')'tem from &ariou' a'pect' and we found out 'ome rea'on' t(at were increa'in! c)cle time#PC* i' dealin! in a monopoli'tic mar/et. 'o optimum utili1ation of time i' al'o &er) important factor. a' t(e profit' e8uall) depend' on t(e production a' well a' t(e time 'a&ed and optimall) utili1ed time could add to more of t(e profit of t(e compan)<- I&6ro6er (a d'i " o7 7or4'i7t a d &ateria'5 E T(e laborer' at different ware(ou'e' are not (andlin! t(e material properl) t(e) are t(rowin! ba!' in t(e truc/ w(ile loadin! w(ic( dama!e' t(e ba!'- #n e&er) con'i!nment- % E 0 ba!' !et dama!ed w(ic( increa'e' t(e time of loadin! and t(e co't becau'e compan) (a' to replace t(i' ba! wit( t(e new one- #n a da) about ;= truc/' are comin! t(erefore t(e amount of lo'' i' &er) (i!(- Man) a time' improper (andlin! of for/lift' al'o dama!e' t(e ba!'/. Co tract 'a%orer5 ) T(e laborer' at ware(ou'e' are on contract ba'i'- So t(e) are not mana!ed b) #PC*- T(i' re'ult' in in'ufficient laborer' pre'ent at t(e loadin! point and it increa'e t(e loadin! time%- Lac4 o7 Pro7e55io a'i5& 9 People at #PC* are 'till li&in! in t(e !o&ernment or!ani1ation era- Pri&ati1ation4' effect i' &er) low in wor/ culture- Man) of t(e emplo)ee' are (a&in! ca'ual approac( toward' t(eir wor/- T(e) are pa''in! t(eir wor/ to ot(er' w(ic( increa'e t(e proce''in! time- T(e) al'o ta/e lon! lunc( brea/'. fre8uent and lon! tea brea/' w(ic( (amper' t(e ')'tem badl)- Now t(e ')'tem i' full) automated becau'e of SAP but adaptation of new tec(ni8ue i' difficult for t(em and 'till people don4t /now muc( about it-

@=

*. I&6ro6er di5tri%utio o7 'a%orer5 E Compan) i' not placin! laborer' properl) at t(e ware (ou'e'?. Lac4 o7 5u6er8i5io E T(ere i' lac/' of 'uper&i'ion w(ile laborer' are loadin! t(e truc/' w(ic( re'ult' in improper (andlin! of ba!'1. I&6ro6er di5tri%utio o7 truc45 E From t(e !rap(. we can 'a) t(at t(ere i' lac/ of proper di'tribution of truc/' durin! t(e entire da)- ,e (a&e di&ided t(e total time of TO* and #N9O#CE of truc/ in t(ree different ran!e' 'o t(at we can 'ee t(at ma+imum number' of truc/' came between <%7== to <?70= (our'- T(i' improper di'tribution of truc/' i' due to t(e tran'port mar/et w(ic( affect' t(e lo!i'tic ')'tem &er) badl)-

OBSERVATIONS T(ere i' a lac/ of coordination between tran'porter' and t(e ware(ou'e departmentSo t(e department i' unaware of t(e e+act 'tatu' of t(e no of truc/' comin! to #PC* and it' arri&al timin! ue to lac/ of coordination. t(e labor' are al'o not aware of t(e truc/' arri&al 'c(edule- T(i' re'ult' in le'' no of laborer' w(en t(e wor/ load i' more and &ice a &er'a Sometime' t(e dri&er of t(e truc/ (a' to wait becau'e t(ere i' no one to attend (im w(en (e come' for TO* T(e for/ lifter in order to fini'( off t(e wor/ 8uic/l). dama!e' t(e ba!' w(ile liftin! two pellet' 'imultaneou'l)- T(i' re'ult' in increa'ed loadin! time due to replacement of t(e dama!ed ba!'- #t i' al'o an un'afe practice T(ere i' a' 'uc( no re!ulation on t(e arri&al and departure of t(e contract laborer'T(e) come and !o a' per t(eir own wi'(-

@<

T(e laborer' don4t (a&e food facilitie' and t(at w(ic( i' a&ailable i' &er) e+pen'i&e for t(em- So t(i' re'ult' in t(eir inefficienc) to wor/ till late ni!(t-

*ac/ of coDordination between MOP 'taff and PT mana!ement-

'taff re'ult' into lac/ of proper

T(ere i' improper di'tribution of laborer'. 'o in 'ome ware(ou'e t(ere are more laborer' wor/in! and at ot(er ware (ou'e'D le'' number of laborer' wor/in!-

Sometime' t(e SAP ')'tem !et' (an!ed up w(ic( affect' t(e c)cle time-

#t i' ob'er&ed t(at durin! '(ift c(an!e. t(e mo&ement of all t(e truc/' come' to a 'tand'till 'o a' to let t(e emplo)ee &e(icle' mo&e freel)- Moreo&er t(e proce''in! of TO* and #N9O#CE al'o 'top' due to '(ift c(an!e- T(i' factor i' una&oidable-

RECOMMENDATIONS
Super&i'or '(ould be t(ere w(en truc/' are !ettin! loaded 'o t(at laborer' wor/ properl) and dama!e of ba!' and loadin! time can be reduced- *aborer' 'it idle until all t(e material i' brou!(t to t(e loadin! point- Super&i'or '(ould force t(em to 'tart loadin! a' 'oon a' t(e fir't pallet or crate (a' been brou!(t to loadin! point T(e o&erall performance of ware(ou'e depend' on MOP 'taff at ware(ou'e but t(ere i' lac/ of coDordination between PT 'taff i-e- operational per'on at ware(ou'e and MOP 'taff- T(e MOP 'taff '(ould be !i&en 'ome power 'o t(at t(e) can !et wor/ done from t(em and before an) (olida) or 'taff c(an!e. t(e) mu't inform MOP 'taff at ware(ou'e ,are(ou'e per'on alread) (a&e t(eir di'patc( plan- So t(e) /now about t(eir dail) wor/ well in ad&ance- T(e ware(ou'e per'on '(ould brin! material at loadin! point in t(e mornin! before t(e truc/ come' for loadin! in'tead of brin!in! material after t(e truc/ come'- T(i' would 'a&e time-

@%

T(e ware(ou'e department '(ould /eep t(em'el&e' informed about t(e no of arri&al of truc/' < da) in ad&ance 'o t(at t(e laborer' can be mana!ed ea'il) and t(e wor/ can be carried out wit(out an) dela)- T(i' would al'o (elp t(e labor contractor to place t(e no of labourer' re8uired on a particular da)-

T(ere liftin! of % pellet' b) t(e for/ lifter '(ould be a&oided w(ic( would a&oid an) dama!e to t(e ba!'-

Proper food facilit) '(ould be pro&ided b) t(e contractor 'o a' to increa'e t(e efficienc) of t(e laborer'-

T(e for/lift truc/ can directl) be ta/en near t(e truc/ to be loaded 'o t(at t(e ba!' can be directl) paced in'ide- T(i' would 'a&e time and le'' number of laborer' are re8uired- T(i' procedure (a' been 'ucce''full) implemented at R#* at Cajira- But for t(i' t(e ware(ou'e infra'tructure '(ould be modified for t(e 'moot( operation of t(e for/lift truc/-

LIMITATION O, STUD.
"'ed &ar) 'mall 'ample 'i1e i-e- onl) four da)' out of 0= da)' of JuneTime period of 'tud) wa' durin! !eneral '(ift (our' i-e- between :a-m- to ;p-m- So could not ob'er&e t(e acti&itie' till <=p-m-

CONCLUSION
T(e 'tandard de&iation come' to nearl) <:%-@%< minute'- T(u' prolon!ed c)cle time can be reduced to 'ome e+tent b) controllin! factor' li/e labor mana!ement and between coordination between t(e emplo)ee'- But factor' li/e '(ift c(an!e w(ic( lead' to prolon! c)cle time are uncontrollable-

@0

GLOSSAR.

PVC POLY VINYL CHLORIDE LDPE LOW DENSITY POLY ETHYLENE PBR POLY BUTADIENE RUBBER PPCP POLY PROPYLENE CO-POLYMER PP POLY PROPYLENE AF ACRYLIC FIBRE DSF DRY SYNTHETIC FIBRE HDPE HIGH DENSITY POLY ETHYLENE DMT DIMETHYL TERAPHTHALATE MEG MONOETHYLENE GLYCOL ACN ACRYLONITRILE LAB LINEAR ALKYL BENZENE EO ETHYLENE OXIDE HNP HEAVY NORMAL PARAFFINS PEG POLY ETHYLENE GLYCOL DSAF DRY SPUN ACRYLIC FIBRE NCPA NATIONAL COMMITTEE ON USE OF PLASTICS IN AGRICULTURE FGMI THE FEDERATION OF GUJARAT MILLS & INDUSTRIES DSIR DEVELOPMENT OF SCIENTIFIC AND INDUSTRIAL RESEARCH GR fo ! - GUARANTEED REMITTANCE FORM CIF COST" INSURANCE AND FREIGHT CF COST AND FREIGHT ICC INTENATIONAL COUNCIL OF COMMERCE FOB FREE ON BOARD L#C LETTER OF CREDIT CHA CUSTOM HOUSE AGENT

@2

BIBLIOGRAPHY BOOKS$ BOOKS AND JOURNALS OF IPCL ANNUAL REPORTS OF IPCL LOGISTICAL MANAGEMENT- DONALD J% BOWERSOX & DAVID J% CLOSS STATISTICS FOR MANAGEMENT RICHARD I% LEWIN & DAVID S% RUBIN

WEBSITES$ &&&%'oo'()%*o! &&&%+,*(%*o%+&&&%!.+ +/%*o! &&&%0+-12o--)3%*o! &&&%)42+3.!5/3) %*o! &&&%1!(o'+/3+*%*o! &&&%+-1+5+-f+(+-)%*o!

@;

ANNE:URE
OBSERVATION TRUCK MOVEMENT TIMINGS CYCLE TIME IN TOL INVOICE MINUTES 9: ! 10:1 11:2# 11:#$ 11:# 12:01 1$:$$ 1$:10 1 :2" 1 :$6 1":#9 1!:2 19:0! 10:09 11:0# 11:## 1 :2! 1 :2# 1 :$2 1#:0" 1#:$9 16:$ 1#:$9 1!: 2 1!:## 19:20 61 #1 $0 1## 1#1 1#1 9 1 9 12" 6$ $ $1 12

Sr.No . 1 2 $

DATE 10/06/2006 10/06/2006 10/06/2006 10/06/2006

QTY.IN MT 10 10 1" 16 1# 16 10 16 02 16 10 19 10

TIME/MT IN MIN

6.1 #.1 1.! 9." 10.1 9. $ 9. 9.$ 6$.# $.90 .$0 1.6 1.2

TIME/MT / LABOR 16 ." 1$"." !.6 261.9 2"2." 2# .61 2#$.! 2#1.1 1"1 .# 10#.$ 116.1 $.2 $2.

# 6 " ! 9 10 11 12 1$

10/06/2006 10/06/2006 10/06/2006 10/06/2006 10/06/2006 10/06/2006 10/06/2006 10/06/2006 10/06/2006

%&%o o' ()*+,-(&1$ S35-15 1 1)6+53+o-7 $9.902$

NO O, LABOURERS IN THE 3AREHOUSE9/+

@?

Sr.No . 1 2 $ # 6 " ! 9 10 11 12 1$ 1 1# 16 1" 1! 19 20 21 22

DATE 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006 12/06/2006

TOL INVOICE 10: 6 11:$1 10:#" 11:$6 11:# 1$:## 1$:01 1 :00 12:#" 1$:#! 1$:0 1 :01 1$: " 1 :0 1 :$0 1#:1 1 :$ 1#:16 16:0 16:#$ 16:20 16:## 16:$2 1":11 16:$1 16:#6 16:$ 1":2$ 1":00 1":26 1!:00 1!: $ 1!:$6 19:26 1!: 0 . 19:$1 1!: 2 19:#0 19:2! 20:1! 19:$0 20:#0 19:#2 20:#1

CYCLE TIME IN MINUTES # $9 121 #9 61 #" 1" 2 #0 $# $9 2# 9 2" $ #0 #1 6! 9 !0 #!

QT. 10 10 10 16 16 16 16 16 16 16 16 16 1 16 11 1# 10 20 20 1# 10 10

TIME/MT IN MIN

TIME/MT /LABOR 1#$ 1$2.6 11. 12#.! 12#.! 12 ."! $". 9#.2 !!. 10#. " .! !1.6 61.2 10#. !# 9!.6 1"0 !!. 11#.6 112.2 2"2 19".2

.# $.9 12.1 $." $." $.6" 1.1 2.! 2.6 $.1 2.2 2. 1.! $.1 2.# 2.9 #.0 2.6 $. $.$ !.0 #.!

@>

%&%o o' ()*+,-(&22 S35-15 1 1)6+53+o-7 "9.9$ $1

NO O, LABOURERS IN THE 3AREHOUSE9>*

Sr.%o 1 2 $ # 6 " ! 9 10 11 12 1$ 1 1# 16 1" 1! 19 20 21 22 2$ 2 2# 26 2" D)/1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 1$/6/2006 TOL 10:$ 11:$2 12:0! 12:1! 12:2$ 1$:00 1$:0" 1$:12 1$:1 1$:10 1$:2# 1$:26 1$:10 1 :19 1 :20 1 :2# 1 :29 1#:16 1 : $ 1 :$9 1 : 6 1 :$6 1#:0$ 1#: 2 1#:#" 1#:#9 19:16 INVOICE 11:$! 11: 6 12:$# 1 :10 1 :12 1 :1$ 1 :1# 1#:#$ 1 : 9 1 :20 1#:#2 16:0 1#: 9 16:$9 16: 0 16:# 16: 2 19:$$ 1!:$2 1":12 1": $ 1": 1!:26 19: 19:11 19:20 19: 0 CYCLE TIME IN MINUTS QT. TIME/MT IN MIN TIME/MT/ LABOR 100 $# 602.# 2!0 1"0 122.# 10".# 2#2.# 1 ".# 1"# 1!2.# 262.# 2 2.# 2$2.# 2$2.# 2#0 20".# 2".# $6".# 2## #0 29# $1".# 02.# $02.# #02.# $".#

6 1 2 2 112 10! " 6! 161 9# "0 1 " 1#! 1## 1 0 1 0 1#0 1$$ 2#" 22! 1#$ 1!0 1!! 20$ 2 2 19 201 2

16 10 10 10 16 1# 16 16 16 10 20 1# 16 1# 1# 1# 16 1# 1#.# 1# 10 16 16 1# 16 10 16

1. 2 .1 11.2 6.! .9 .$ 10.1 #.9 ".0 ".$ 10.# 9." 9.$ 9.$ 10 !.$ 1".1 1 ." 10.2 1!.0 11.! 12." 16.1 12.1 20.1 1.#

NO O, LABOURERS IN THE 3AREHOUSE9/?

%&%o o' ()*+,-(&2" S35-15 1 1)6+53+o-7 1$6.6$2#

@:

Sr.No. 1 2 $ # 6 " ! 9 10 11 12 1$ 1 1# 16 1" 1! 19 20 21 22 2$ 2 2# 26 2" 2! 29 $0

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

DATE /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006 /6/2006

TOL 11:0# 11:0! 11:00 11:10 12:21 12:2 12:2$ 12:$ 12:$9 12:#0 12:## 1$:0 1$:2" 1$:$# 1 :22 1 :2 1 :2! 1 :$$ 1 : # 1#:$" 1#:#1 1#:#$ 16:20 16:2 16:$1 1":0$ 1":#$ 1!:#9 19: # 19:

INVOICE 11:$# 11:$! 11:1$ 11:$" 1$: 9 1$: " 1$: ! 1$:#1 1$:#0 1 :1 1 :1! 1 :20 1 :# 1#:00 16:01 16: " 16:0$ 16:#$ 16: 16:#! 1!:$" 1!:$# 1!:$0 1!: 0 1!: 6 1!: 2 1!:19 19:## 20:$" 20:$!

CYCLE TIME IN MINUTES

QTY IN METRIC TONS

TIME/MT IN MIN

$0 $0 1$ 2" !! !$ !# "6 "1 ! !$ "6 !" !# 99 1 $ 9# 1 0 119 !1 166 162 1$0 1$# 1$# 99 26 #6 #2 #

10 10 16 10 10 16 16 16 16 10 16 1# 1# 20 1# 10 16 16 10 16 1# 16 10 16 16 10 0 16 16 09

$ $ 0.9 2." !.! #.2 #.$ .! . !. #.2 #.1 #.! .$ 6.6 1 .$ #.9 !.! 11.9 #.1 11.1 10.1 1$.0 !. !. 9.9 6.# $.# $.$ 6

TIME/MT /LABOR 69 69 20." 62.1 202. 119.6 121.9 110. 101.2 19$.2 119.6 11".$ 1$$. 9!.9 1#1.! $2!.9 1$#." 202. 2"$." 11".$ 2##.$ 2$2.$ 299 19$.2 19$.2 22"." 1 9.# !0.# "#.9 1$!

%&%o o' ()*+,-(&$0 S35-15 1 1)6+53+o-7 "#.21 !

NO O, LABOURERS IN THE 3AREHOUSE9/>

A6) 5') S%D% 7 89:%:;<9=>:%:989=?9@%@9<A=>A%<?8B 8 7 ?B<%:<?

@@

Number of truc/ <2 ;< %;

Time of TO* =:7== E <%7== <%7== E <?7== <?7== E %=7==

TOL OF TRUCK FOR ?; TO ?8TH JUNE

60 #0 0 NO% OF $0 TRUCKS 20 10 0 !:00012:00 12:00016:00 16:00020:00 TIME 2# 1 %o o' /r123

#1

HIGHEST TOL TA2ES PLACE BET3EEN =/I00 NOON TO =1I00 HOURS

<==

Number of truc/ << 0% 20

Time of #N9O#CE =:7== E <%7== <%7== E <?7== <?7== E %=7==

INVOICE OF TRUCKS FOR ?; TO ?8TH JUNE

#0 0 NO% OF $0 TRUCKS 20 10 0 !:00012:00 12:00016:00 16:00020:00 TIME $2

11

%o o' /r123

HIGHEST NO O, INVOICES ARE MADE BET3EEN =1I00 TO /0I00 HOURS

<=<

<=%