MATERIAL DISPOSAL - LOGISTICS

Presented byNIMIT KAUL Deptt. of Management Studies IIT Roorkee

Under the guidance of Mr. Soarabh Pathak

Flow of the presentation

Introduction Agenda of project Process of material disposal (Steel) Bottlenecks/Observations Focus Areas Truck Turn Around Time (Graphs and analysis) Major Trader Performance (APR 08 MAR 11) SWOT Analysis Points to focus Suggestions Trader performance and miscellaneous suggestions

INTRODUCTION
Trim and Flat contributes 80% of the revenue from total Scrap sale Both Steel Scraps are produced at Press Shop Trim is loaded at the two press chutes Flat is loaded at Knock Down Area by Forklifts

Agenda of Project
Understanding and streamlining the process of steel trim material disposal Improving Truck Productivity (reduction of Turn
Around Time)

Performance review of steel trim traders Finding out and suggesting ways to improve bottlenecks in the process

Process of steel material disposal system

Wait at JV Gate Wait at press chute Loading of trim

Vehicle checking

Travel to press chute

To fro movement

Exit from JV Gate

Gate pass generation

Wait for turn

Second loading

Wait for exit

Travel to parking

Issue of waiting no.

Travel to weight bridge

Invoice signing

Parking area waiting

Generation of load slip

Wait in parking area

Invoice generation

Steel material disposal activities

(Standard Vs Actual Time)
ACTIVITIES JV Gate Waiting time Vehicle checking Gate pass gen time travel to parking parking area waiting gen of load slip issue of waiting no wait for turn travel to load point wait at load point loading of scrap movement to and fro 2nd loading to weight bridge wait in parking invoice gen invoice sign wait for exit exit to jv gate TOTAL Observed time(mins) 16 5 4 3 68 3 4 126 5 54 55 3 5 6 497 3 11 11 4 884 15 hrs Minimum standard time(mins) 10 5 4 3 30 3 4 30 5 15 45 3 5 6 30 3 5 10 4 220 4 hrs

Bottlenecks/Observations
Funds availability is in Trader s control Truck driver availability is key factor for TAT in MSIL Older than 2008 model trucks :- 35 no's (Fleet Quality) 2008-11 model trucks:- 08 no.s Report generation( fund,etc) system is slow En-route congestion on roads in side MSIL Scrap Lifting system in control of Traders No entry traffic restrictions in NCR region affects the TAT of trucks inside MSIL Signing authority availability affects TAT in MSIL

Concerns at Different Locations

JV GATE
 Truck entry not started  Queue of trucks present

SCRAP YARD PARKING

 Queue at weight bridge  Waiting for turn  Previous day s trucks present

PRESS CHUTE
 Truck already being loaded  Low production in press shop  Small scrap pieces being filled

Concerns
SCRAP YARD PARKING ( loaded truck)  Wait for invoice generation  Truck comes after 6:00 PM  Presence of ACDO (G-4)  FUND AVAILABILITY  Wait for exit  Invoice signing authority not present  Driver availability JV GATE  Queue of trucks present  No entry timing on roads

Areas of Target
Trucks spend a long time inside the premises of MSIL ( Truck Turn Around Time) Trader Payment Defaults (Trader Performance)

Truck Turn Around Time

TRUCK TURN AROUND TIME (JV Gate Entry to Exit)

APR 11 MAY 11
40.00

36.40
35.00 30.00

26.24

Time(hrs)

25.00 20.00 15.00 10.00 5.00 0.00

19.28

19.57

19.04

18.60 17.46

Sunday

Monday

Tuesday

Wednesday

Thursday

Friday

Saturday

Weekdays

The abnormal time on Monday is due to presence of few points with very high TAT. When those points were excluded, the TAT became 25 hrs. thus we have an almost stable TAT although it is high.

Hourly truck exit

10

APR 11 MAY 11
8 7

9
9 8

No. of trucks

7 6 5 4

4 3 3 3 3 2 1
8:00-9:00 9:00-10:00 10:0011:00 11:0012:00 12:0013:00 13:0014:00 14:0015:00 15:0016:00 16:0017:00 17:0018:00 18:0019:00 19:00+

3 2 1 0

Timeline

We can see that the truck exit majorly during 9-12 or in the evening 4-6. this is because of the traffic no entry restrictions.

Hourly truck entry

10.00

APR 11 MAY 11

9
9.00 8.00

No. of trucks

7.00 6.00 5.00 4.00 3.00 2.00 1.00

4 4 3 2 2 2 4

4 4

2 0.38 0.17

0.12
0.00 00:005:00 5:006:00 6:007:00 7:008:00 8:009:00 9:0010:00

10:00- 11:00- 12:00- 13:00- 14:00- 15:00- 16:00- 17:00- 18:00- 19:00+ 11:00 12:00 13:00 14:00 15:00 16:00 17:00 18:00 19:00

Timeline
Trucks mostly enter during the early hours as most trucks travel back to maruti at night when the traffic no entry restrictions are not applicable.

Documentation and Exit Time

Avg time from invoice gen. to exit APR 11
1:12 1:04 0:57

MAY 11

1:02 1:00 0:51 0:59 0:51

1:03

0:50

0:46 0:45 0:40 0:45

0:50

Time

0:43 0:36 0:28 0:21 0:14 0:07 0:00 8:00-9:00 9:00-10:00 10:0011:00 11:0012:00 12:0013:00 13:0014:00 14:0015:00 15:0016:00

0:19

16:0017:00

17:0018:00

18:0019:00

19:00+

Timeline The time taken by trucks to exit after invoice signing is pretty high. This should be 1015 mins at max.

Trader Performance Chart

2nd week June 2011 Turn Around Time (hours)
29 28 27 26 25 24 23 22 21 bansal iron and Colossus trade Isha enterprises Jindal nickel steel link ltd and alloys Swastik Enterprises 24 28 26 25 25

Amongst the recent traders bansal iron and steel has the highest TAT

Steel Trim Trading Performance FY- (2008-2011)

Steel Trim Dealers

M/s Bansal Iron & Sheet M/s Bansal Iron & Steel M/s Isha Enterprises M/s Jindal Nickel & Alloys M/s V D Malik & Sons

Trader Performance
BANSAL IRON AND SHEET actual BANSAL IRON AND STEEL ISHA ENTERPRISES
JINDAL NICKEL & ALLOYS tendered 19 16 11 11 12 15 26 25 20 20 25 25 30 33 25 19 29 22 17 21 27 22 21 26 30 30 22.2 22.2 30 30 25 25 25 20 25 25 30 25 25 17.5 25 20 15 20 25 20 25 25 deviation -11 -14 -11 -11 -18 -15 1 0 -5 0 0 0 0 8 0 2 4 2 2 1 2 2 -4 1 -3

tendered deviation actual tendered deviation actual tendered deviation actual 21 33 -12 18 29 -11 26 38 -12 20 33 -13 18 29 -11 27 38 -11 8 10 -2 12 32.5 -20 13 20 -7 7 10 -3 7 32.5 -25 15 20 -5 11 22.2 -11 10 30 -20 9 22.2 -13 9 22.2 -13 12 30 -18 12 22.2 -10 8 15 -7 15 15 0 12 10 2 6 15 -9 15 15 0 2 10 -8 14 15 -1 20 25 -5 40 40 0 15 15 0 24 25 -1 20 20 0 25 25 0 26 25 1 21 25 -4 21 25 -4 29 30 -1 10 10 0 10 10 0 18 17.5 0 Average dev -6 25 25 0 24 25 -1 12 12.5 0 22 25 -3 24 25 -1 20 20 0 Average dev -7 10 16 10 24 48 Average dev 10 15 10 25 50 0 1 0 -1 -2 -4

APR 08 MAR 11

Average dev

VD MALIK AND SONS actual tendered deviation 25 40 -15 27 40 -13 15 33.3 -18 13 33.3 -20 21 40 -19 17 40 -23 7 10 -3 6 10 -4 35 35 0 35 35 0 19 20 -1 26 25 1 40 40 0 30 30 0 26 25 1 29 30 -1 28 25 3 27 35 -8 25 25 0 21 22.5 -1 26 25 1 22 20 2 25 25 0 21 20 1 35 35 0 29 30 -1 20 20 0 52 50 2 23 25 -2 Average dev -4

35 30

33

33

Bansal Iron & Sheet

22.2 22.2 14 15 8 10 7 10 11 9 8 6 15 15 15

actual
25

tendered
25 21

Percentage

25 20 15 10 5 0

21

20

10

10

1 40

10

11

12

13

Bansal Iron & Steel

32.5 32.5 29 18 18 12 7 10 12 29 30 30 25 20 15 15 15 15 24 25 26 25 29 30

actual
24 25 18 17.5

tendered
25 20 20

Percentage

30 20 10 0

22

10

11

12

13

14

15

16

Isha Enterprises
60 50

actual

tendered

Percentage

40 30 20 10 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Jindal Nickel & Alloys

35 30 30 26 25 25 25 25 22.2 22.2 19 16 15 11 10 5 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 11 12 15 20 20 19 17.5 25 25 25 25 25 30 30 30 30 33 29 25

actual

tendered

27 25 22 20 17 15 21 20 22 21 20

25

26 25

Percentage

20

19

20

21

22

23

24

V D Malik & Sons

60 50 40 40 40 33.3 33.3 30 25 27 21 20 15 17 13 10 10 7 6 40 40 35 35 30 26 25 20 19 40 35 29 30 28 27 26 25 25

actual

tendered
52 50

Percentage

35 25 25 25 22.5 26 21 22 21 20 20 29 30 20 25 23

10

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

Trader Performance Variance

BANSAL IRON AND SHEET ISHA ENTERPRISES VD MALIK AND SONS
10 8 6 4 2 0 -2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29

BANSAL IRON AND STEEL JINDAL NICKEL & ALLOYS

Percentage

-4 -6 -8 -10 -12 -14 -16 -18 -20 -22 -24 -26

35 30 25 20 15 10 5 0

10 8 6 4 2 0

10

0 Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 Jul/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10

Apr/08 May/08 Jun/08 Jul/08 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09

We observe a large fluctuation in steel price in OCT 08. After that the steel price is almost constant and is expected to increase in the coming months.

No. of traders vs price

May/09 Jun/09

No. of traders

Jul/09 Aug/09

price

Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10

Aug/10 Sep/10 Aug/10

no. of traders

Oct/10 Nov/10 Dec/10 Jan/11 Feb/11

Sep/10 Oct/10 Nov/10 no. of traders Dec/10 Jan/11 Feb/11 Mar/11 price

price

Mar/11 15 10 5 0

35 30 25 20

Quantity of Steel Trim Handled

Frequency of Participation Amount of Steel trim lifted

0 Apr/08 May/08 Jun/08 316 Jul/08 Aug/08 133 Sep/08 Oct/08 Nov/08 224 Dec/08 66 186 Jan/09 Feb/09 Mar/09 Apr/09 187 May/09 Jun/09 355 Jul/09 Aug/09 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 143 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 0 100 200 300

1 426 397 747 687 382 400 500 600 700

Quantity of Steel Trim handled

BANSAL IRON & SHEET TRADERS

scrap lifted 800 BANSAL IRON & SHEET TRADE

0 Apr/08 341 May/08 Jun/08 310 Jul/08 Aug/08 Sep/08 268 Oct/08 125 Nov/08 Dec/08 Jan/09 308 Feb/09 Mar/09 Apr/09 May/09 424 Jun/09 350 Jul/09 Aug/09 363 384 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 Jun/10 Jul/10 Aug/10 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 Feb/11 Mar/11 0 100 200 300 400

1 505 702 721 937 763 566 703 819 791 500 600 700 800 900

Quantity of Steel Trim handled

BANSAL IRON & STEEL TRADERS

scrap lifted 1000 BANSAL IRON & STEEL TRADE

0 Apr/08 May/08 526 Jun/08 411 Jul/08 251 206 213 199 Aug/08 Sep/08 Oct/08 Nov/08 Dec/08 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 Jul/09 336 Aug/09 48 Sep/09 Oct/09 560 Nov/09 Dec/09 Jan/10 640 Feb/10 295 Mar/10 Apr/10 740 May/10 351 Jun/10 Jul/10 851 Aug/10 Sep/10 342 Oct/10 Nov/10 364 Dec/10 Jan/11 Feb/11 Mar/11 0 200 400 600 800 625 811 894

1 1078 1809 1800 1000 1200 1400 1600

Quantity of Steel Trim handled

ISHA ENTERPRISES
scrap lifted 2000 ISHA ENTERPRISES

0 Apr/08 529 May/08 Jun/08 Jul/08 371 Aug/08 297 Sep/08 Oct/08 Nov/08 228 Dec/08 91 303 396 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 620 Jul/09 Aug/09 524 536 Sep/09 Oct/09 Nov/09 Dec/09 Jan/10 Feb/10 Mar/10 Apr/10 May/10 622 Jun/10 Jul/10 Aug/10 608 Sep/10 Oct/10 Nov/10 Dec/10 Jan/11 377 Feb/11 Mar/11 0 200 400 600

1 770 704 734 906 1169 776 740 834 827 740 1065 799 684 1067 800 1000 1200

Quantity of Steel Trim handled

M/S JINDAL NICKEL & ALLOYS

scrap lifted 1400 M/S JINDAL NICKEL & ALLOY

0 Apr/08 May/08 Jun/08 Jul/08 509 Aug/08 405 Sep/08 Oct/08 Nov/08 344 Dec/08 165 181 143 0 200 Jan/09 Feb/09 Mar/09 Apr/09 May/09 Jun/09 814 Jul/09 524 Aug/09 Sep/09 Oct/09 834 Nov/09 857 Dec/09 Jan/10 809 Feb/10 Mar/10 Apr/10 687 May/10 Jun/10 Jul/10 Aug/10 Sep/10 782 Oct/10 Nov/10 683 448 489 Dec/10 692 Jan/11 Feb/11 Mar/11 400 600 800

1 1004 1069 748 906 761 745 673 818 1050 907 1200 1000 944 1330 1048 1884 1400 1600 1800

Quantity of Steel Trim handled

V D MALIK & SONS

V D MALIK & SONS scrap lifted 2000

Conclusions
V D Malik & Sons has lifted the highest Quantity of Trim from MSIL. Jindal Nickel & Alloys has been lifting more amount of trim than the tendered amount in the recent months Both Jindal Nickel & alloys and V D Malik & Sons have been consistent dealers over the last 3 years

SWOT Analysis
STRENGHTS Large area of the scrap shop WEAKNESSES All load on one weight bridge OPPORTUNITIES By increasing the volume of Trim we can gather higher sale price per tonne of trim Bring back traders who have not participated much New traders should be brought in to increase competition THREATS Cartel formation of traders

Knowledgeable human resources

Old Press Chute is very slow

Many traders not participated more than once. They could be lifting from other places Presence of old trucks

Strong system to monitor Power in the hands of funds traders Bumps at press chutes Strong tendering process Does not guarantee availability of trucks Fund generation system very slow Movement of trucks outside Maruti not being monitored

Focus Areas
Wait at JV Gate Wait at press chute Loading of trim

Vehicle checking

Travel to press chute

To fro movement

Exit from JV Gate

Gate pass generation

Wait for turn

Second loading

Wait for exit

Travel to parking

Issue of waiting no.

Travel to weight bridge

Invoice signing

Parking area waiting

Generation of load slip

Wait in parking area

Invoice generation

Suggestions

Change in Size of Truck

 Increasing the capacity of trucks (double capacity)

600

This implies reduction in no. of trucks by half Less stationery expenses More availability of space Increase in overall efficiency as the idle time of the trucks in the process decreases.
Changes in activity time when truck size is doubled 497 497
before after

500

Time (mins)

400 300 200 100 0

126 68 16 8 34 63
wait for turn

110 55
loading of scrap

10
wait in parking

11

JV Gate Waiting time

parking area waiting

2nd loading

wait for exit

Impact of Size of truck

ACTIVITY
JV Gate Waiting time Vehicle checking Gate pass gen time travel to parking parking area waiting gen of load slip issue of waiting no wait for turn travel to load point wait at load point loading of scrap movement to and fro 2nd loading to weight bridge wait in parking invoice gen invoice sign wait for exit exit to jv gate TOTAL

Observed time(mins)
16 5 4 3 68 3 4 126 5 54 55 3 5 6 497 3 11 11 4 884 15 hrs

Assumed changes when truck size is doubled(mins)

8 5 4 3 34 3 4 63 5 54 110 3 10 6 497 3 11 5 4 832 14 hrs

Impact of Increased Size of Trucks(exit)

Hourly Trucks Exit
10 9 8

before

after

9 8 7 6
5

No. of trucks

7 6 5 4 3 2
1 2 1 1 3 3

4 3 3 3 3
2

4 3

2
1

1 0

1 0
6:00-7:00 7:00-8:00 8:00-9:00 9:00-10:00 10:0011:00 11:0012:00 12:0013:00 13:0014:00 14:0015:00 15:0016:00 16:0017:00

17:0018:00

Timeline

We see that by increasing the carrying capacity of each truck the exit pattern becomes flatter and more manageable.

Approval Timings
 Presence of invoice signing authority in Shifts B+C
 Trucks can be moved out earlier  The earlier they move out the faster they return back  The labour at the vendor s godown will not be idle
Changes in activity time when iinvoice signing authority is present since 6 before AM
497 500

after

600

Time (mins)

400 300 200 100 0 60

wait in parking

Impact of Invoice Signing

ACTIVITY JV Gate Waiting time Vehicle checking Gate pass gen time travel to parking parking area waiting gen of load slip issue of waiting no wait for turn travel to load point wait at load point loading of scrap movement to and fro 2nd loading to weight bridge wait in parking invoice gen invoice sign wait for exit exit to jv gate TOTAL Observed time(mins) 16 5 4 3 68 3 4 126 5 54 55 3 5 6 497 3 11 11 4 884 15 hrs Assumed changes if invoice signing person is present(mins) 16 5 4 3 68 3 4 126 5 54 55 3 5 6 60 3 11 11 4 446 7.5 hrs

Impact of Increased Approval Timings (exit)

Hourly Trucks Exit
10 9 8

before

after

9 8 7 6 6
5 4 4 3 3 3 3 3 3 4 4 5 5 4

No. of trucks

7 6 5 4 3 2 1

3 3

3 2

1
0 6:00-7:00 7:00-8:00 8:00-9:00 9:0010:00 10:0011:00 11:0012:00 12:0013:00 13:0014:00 14:0015:00 15:0016:00 16:0017:00 17:0018:00 18:0019:00 19:00+

Timeline

The graph becomes flatter as the peak hours of exit are now spread throughout the day

Impact of Increased Approval Timings (entry)

Hourly Truck Entry
10.00 9.00 8.00

before

after

9 9

No. of trucks

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 00:005:00 5:006:00 6:007:00 7:008:00 8:009:00 9:0010:00 10:0011:00 11:0012:00 12:0013:00 13:0014:00 14:0015:00 15:0016:00 16:0017:00 17:0018:00 18:0019:00 19:00+
5 5 5 5 5 4 4

4 4

3 2 2 0.12 2

2 0.38 0.17

Timeline

If we can start the truck entry since 5:00 AM the load on the scrap shop per hour would reduce

Impact of Size of truck and Invoice Signing

ACTIVITY JV Gate Waiting time Vehicle checking Gate pass gen time travel to parking parking area waiting gen of load slip issue of waiting no wait for turn travel to load point wait at load point loading of scrap movement to and fro 2nd loading to weight bridge wait in parking invoice gen invoice sign wait for exit exit to jv gate TOTAL Observed(mins) 16 5 4 3 68 3 4 126 5 54 55 3 5 6 497 3 11 11 4 884 15 hrs Both options together 8 5 4 3 34 3 4 63 5 54 110 3 10 6 60 3 11 5 4 395 6.5 hrs

Trader Performance Suggestions

Monitor traders based on their previous performances. Keep a check on traders who have a low performance Motivate good performers by recognizing them and providing them certain benefits like priority at weight bridge, display of photographs of such traders Increase security amount and if the balance falls short deduct from the security. Do not wait for the payment. This would result in traders getting serious about payment Focus more on rewards than penalties Generation of Trader Rating Sheet based on certain criteria

Miscellaneous Suggestions
De-linking of logistics from Scrap costing (Handling)
Tendering of transporters

Weight bridge at press chute to reduce duplicate activities Generation of invoices at press chute to avoid multiple movement of trucks at weigh bridge GPS scanning of trucks Auto Un-loading mechanism for Scrap handling Fleet and Size of trucks to be reviewed Priority to loaded truck at Weigh bridge Increase area for truck movement
Diversion of trucks when congestion at intersections

Faster system to show the available balance of each trader Construction of conveyer from both press chutes to transfer scrap directly to scrap yard

Miscellaneous Suggestions
Conveyor at press chutes keeps on running even when the press shop doesn t produce any scrap (energy wastage) Continuous monitoring of funds and informing the trader as soon as funds reach below a pre designated comfort level Source Segregation of scrap to increase its sale value Improving the old press chute Trucks no older than 3 years should be allowed Bumps should be changed to increase effectiveness The 15 min restriction from invoice signing to exit should be reduced to 10 mins JV gate entry and exit efficiency should improve. Reduction of queue at JV gate Metal Balers can be used to increase the amount of material being carried by a single truck Conveyer system to load scrap faster at scrap yard Direct Loadable Containers to store scrap in case of emergency

Faster Unloading

Changing Truck Fleet and Increasing Size

Condition of Trucks at Scrap Yard

Congestion on roads due to parking

Steel trim Loading

Steel Baling Machine

Conveyers for faster loading of trucks

Combining the two Press Chutes

PRESS CHUTE 1 PRESS CHUTE 2

TO SCRAP YARD

Container for Storage

Segregation of Trim