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Samiksha

In association with

SPEAR Logistics Private Limited


Presents

“Case Study Competition”


Rules
 Each Team can have maximum of two members
 Both members have to be from the same institution.
 One individual cannot be a part of more than one team.
 Once a team has been formed, no change in the team composition will be permitted.
 There is no restriction on the number of teams that can participate from an institute.

Important Dates
Launch of case study 8th August, 2010, 00:00 Hrs
Submission of case analysis: 13th August, 2010, 23:59:59 Hrs
Results of Case Study: 18th August, 2010.

Contacts
For any queries, please send mail to nitie.samiksha@gmail.com

Team Samiksha
Badal Shah: +91 9819 279 609
Deepak Bartwal: +91 7666 236 135
Rahul Patil: +91 9890 889 501

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National Institute of Industrial Engineering (NITIE), Mumbai
Case Study
SPEAR Logistics started operations in 2004 with an in plant management service for their client’s
warehouses. In 2008, they set up a new facility. This facility was a 60000 square feet warehouse
catering to 12 business divisions of their client. Today they are in the process of expanding it to a
140,000 square foot facility.

The following activities are performed at the facility:

 Receipt
 Inspection
 Put Away
 Kitting
 Picking
 Packing
 Dispatch
 Bar-coding and labeling
 FIFO
 Expedited orders
 Reverse logistics
 Cycle Counts & PI

Service Level expectation


There are 24 workers engaged in Put away, Pick and Pack activities out of a worker strength of 65.
The remaining workers are engaged in receiving, deconsolidation, MRP and Barcode labeling, unit
packing, loading, carton strapping, weighing, cycle counts, and housekeeping

In order to manage a doubling of business in throughput volumes within the next few months, Spear
will need to improve upon productivity and efficiency without increasing manpower by the same ratios.
Though it is suggested to visit the facility to better understand layouts and processes, Spear would
like to have your suggestions on ways to improve productivity and retain the ability to scale up as the
volumes keep growing. SPEAR Logistics is also planning to increase the horizon of its business
portfolio and reach in coming year but rapidly increasing competition and infrastructure constraints

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National Institute of Industrial Engineering (NITIE), Mumbai
are major roadblocks. Illustration below shows the business and information flow at the facility. You
can also consider use technology as a facilitator along with process improvements.

Distribution Centre, Aftermarket Hub, Factory Feed Operations


Client or Third Party

Suppliers Sales Deptt.


Production Customer

Issue Sales
orders
Spear Logistics

Receive inventory
at Pick and Pack as per Load Planning and
Put away to Storage Orders and FIFO
warehouse Shipment Documents

Picking Process
Receipt Process Receive Sales Orders Shipping Transport Management
Systems and
Information

Break shipment and allot to Upload to Spear WMS To Factory as sub assembly Load Building by customer and
Divisions Generate Pick List as per FIFO Finished Goods to market, both destination
Update ERP Picking channel and project sales Load building for dedicated
Update Spear WMS Kitting Aftermarket sales within warranty vehicles
Pre Packing and Labeling Pack and Label and outside warranty Follow-up with transporter
Expedited orders prioritised Status uploaded to Spear TM

Segregation of orders Customization of Spear Transport status


Key Benefits

100% capture in based on priority WMS allows FIFO picking Smart load building updates give
Spear WMS for helps meet customer and faster turnaround, leads to lower delivery visibility,
tracking and FIFO service levels, leads to high accuracy, transport and leads to higher
picking supports increase in low claims, better stock packing costs customer service
market share rotation levels

Deliverables:
1. Suggest the ways to improve upon productivity and efficiency without increasing manpower by the
same ratios.

2. With the help of given information, design the value chain to minimize the Inventory. Also propose
the effective Layout to improve the operational performance. Refer the layouts of existing
warehouses in attached excel sheet.

3. Prepare the framework of Future roadmap for SPEAR Logistics to increase its business prospects in
coming year, including new dimensions to be explored.

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National Institute of Industrial Engineering (NITIE), Mumbai
Appendix
Some key statistics of present operations are given below:

Present Planned (Including present)

SKU’s in stock 8,000 10,000


Receipt Lines per month 8,500 13,000
Receipt Hash quantities 700,000 1,500,000
Order Lines per month 22,000 47,000
Order Hash quantities 700,000 1,550,000
Orders received per 9,500 19,500
month

Service Level expectation:


Present Planned

Normal Orders 24 Hrs/3 Shifts 16 Hrs/2 Shifts


Expedited/Rush Orders 8 Hrs/Same Day 8 Hrs/Same Day
Receipts/Inbound 24 Hrs/3 Shifts 16 Hrs/2 Shifts
Manpower – Workers 65
Manpower – 18
Supervisors/DEO’s
Assistant Managers 2
Program Manager 1

Average productivity per person/day in SKU’s:


Put away Pick Pack

47 95 105

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National Institute of Industrial Engineering (NITIE), Mumbai
Storage and Handling Equipments:
Present Planned (Including present)
Forklift & Stackers 2 3
Hand Pallet Trucks 8 16
Carton Staplers & Nailing 6 12
Guns
Compressor 1 1
Pallet & slotted angle racks Each SKU will have a Each SKU will have a
storage location storage location
Dock Levelers 1 4
Barcode scanners 8 16
Packing Conveyor line & 1
work stations
Overhead Crane 1 1

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National Institute of Industrial Engineering (NITIE), Mumbai
Submission Guidelines:
a. The solution has to be provided in .pdf / .doc format, only. The word limit for the case is 2000
words maximum. The document should be in Times New Roman font, Size 12, and 1.5 Line Spacing.

b. The cover Page should have the Team Details, Institute Name and Contact Details.

c. The document Name format should be SAMIKSHA_College Name_Team Name. It should be mailed
at nitie.samiksha@gmail.com before 13th August, 2010 23:59:59 Hrs. the subject of mail should be
SAMIKSHA_Institute Name_Team Name.

d. Late Entries will not be considered.

e. Second Round details will be announced further.

f. The decision of the organizers and Jury members will be final

Submission Deadlines: 23:59:59 hrs, 13th August, 2010

Prizes worth Rs. 15000 to be won!!!

For any query, please contact:

Badal Shah, +91-9819279609

Deepak Bartwal, +91-7666236135

All the Best!!!

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National Institute of Industrial Engineering (NITIE), Mumbai
About us Quick Facts

We are a contract logistics company founded by logistics professionals 1.5 million sqft of Warehousing
?

in 2001 with a vision to be recognized as the most dependable and Over 50 Locations Pan India
?

responsive logistics service provider. We are an INR 350 Million More than 30 customers
?

company, spread across India with 15 branch offices and controlling INR 7 billion-Inventory Managed
?

over 50 warehouses with 1,500,000 sqft of warehousing space. 1.8 millions lines processed
?
900+ Employees and Associates
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Services Focused Segments


Apparel
?
We cover Inbound, Inplant and Outbound logistics services. We offer
Automobile
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customized solutions through a range of premier contract logistics
Chemical
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services ranging from Warehousing and Distribution Management,
Engineering
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Carrier management, Installation Support Logistics, Intra-City
Pharmaceutical
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deliveries and Value added services.
Retail
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Telecom
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Expertise
Satisfied Clientele
Our core team of Uday Palsule, Gautam Dembla, Anosh Aga and Armacell
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Rajneesh Disawal, has a combined experience of over 60 years in Aircel
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Global and Domestic Logistics. Assisting our core team is an Airtel
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experienced team of 200 Managerial and Supervisory staff with Ashok Leyland
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workforce strength exceeding 900 professionals. Asian Paints
?
Atlas Copco
?
BASF
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Why Spear? Cummins India
?
We are technology driven with a proprietary Information System for Essar Retail
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Warehouse Management and Transportation. We invest in Capital, Hyundai Heavy Equipments India
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Systems, Structure and Manpower to handle the size and complexity Hyundai Mobis
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of our customer's business. India Pistons Limited
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KOEL
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We are unique because of our Centralised functions like Process and
Reliance Retail
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Work Flows Team, Cycle Count Audit Team, Process Review and
Shell
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12/2010-INT1/1-07/2010

upgradation, Packaging Design & Redesign and MIS Design to maintain


Siemens
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focus and add definite value.
Spencer Retail
?
ZF India
?
For more information please contact us at
solutions@spearlog.com and many more……..

www.spearlog.com

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