a case study on cochin port trust
TRANSCRIPT
A Case Study on Changing A Case Study on Changing Business Environment at Cochin Port TrustBusiness Environment at Cochin Port Trust
04/12/23 1
M.Tech. Mechanical Engineering (Production and Industrial Engineering)
Department of Mechanical Engineering.Mar Athanasius College of Engineering.
Kothamangalam.
Presented By Muhammed Salih.K
Table of contents
1. IntroductionInfrastructure
2. Organizational StudyLay out & History of Cochin Port Trust
4. Changing business environment
Supply chain management & Role of transportation in SC
Management and Ownership Pattern
Organizational Structure and Department of CPT
Report on Functional Areas of CPT & Summery
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Taguchi Philosophy
Cause and Effect diagram
3. Proposed material handling equipment
Analysing the causes
Discussion and SolutionConclusion
Publication details
References
Supply Chain Management SCM
• The strong chain of such competent players to supply goods
and service to the customers.
• Effectively, Efficiently and Economically.
• Transportation has an important impact on retail price of a
commodity. It has a large impact on SC responsiveness and
efficiency.
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Lay out of Cochin Port TrustLay out of Cochin Port Trust
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One of the Major Ports in India
Modern port built by Sir Robert Bristow between 1920-1940.
Declared as a major port on 29th February 1964 under the MPT Act 1963
One of the Major Ports in India
Modern port built by Sir Robert Bristow between 1920-1940.
Declared as a major port on 29th February 1964 under the MPT Act 1963
History of CPT
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Chennai
Colombo
65% OF INDIA’S EXPORT / IMPORT CONTAINERS ARE TRANSSHIPPED THROUGH NEIGHBOURING COUNTRY PORTS.
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Chennai
Colombo
THE COCHIN OPPORTUNITY
CPT advantage
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Ownership Pattern
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Cochin port is an autonomous body under the Government of
India and it is managed by a Board of Trustees with members
appointed by Govt. of India. The chairman of the Board act as
Chief executive Officer. The Board of Trustees consists of 18
members.
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Departments of CPT
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• Administration Department
• Finance Department
• Traffic Department--Berth allocation, Cargo handling
• Marine Department--Pilotage, Water side operation, Dredging
• Mechanical Department
Functional Areas of CPT
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• Mattanchery Wharf [Berths Q 1 to Q 4]
• Ernakulam Wharf [Berths Q 5 to Q 10]
• Cochin Oil Terminal (COT)
• North Tanker Berth (NTB)
• South Tanker Berth (STB)
• Single Point Mooring (SPM)
• Dry dock workshop 10
SUMMARY OF STUDYFinancial performance
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Capacity Utilization
NO Type of Equipment Availability Capacity in Tones
1Heavy Duty Reach
Stacker1 45
2 Mobile Crane 1 10
3 Forklift Trucks 20 3
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Source: National Conference on Ports and Shipping 2011 Background paper
Poor efficiency and Responsiveness of SC
Port performance
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Source: Administrative Report CPT 2010-2011
Distribution of Cargo handled 2010-2011
Dry bulk 10.27 lakh tons
(1 MT)
Break bulk 1.1 lakh tons
Type Avg TRTAvg PBD
Dry bulk 5.98 3.99
Break bulk 3.74 0.99
Shipping Statistics at CPT
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The average turnaround time of ships having cargo work increased to 2.20 days during the year from 2.08 days in the preceding year.
Need to achieve strategic fit in SC
Market Condition
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Long run Only nominal profit
Reduced TRT improves the responsiveness of SC
Proposed Material handling equipmentDescription of crane
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Details 120 HMC
Maximum reach required 34 m
Grab weight 20 T
Load/ move at 11 to 19 m 75 T
Load/ move at 34 m 39 T
Average load/move
(Excluding the grab weight)
37 T/grab
Handling rate/hour 37 * 20 = 740 T/ hr.
Equipment efficiency 85%
Handling capacity / hour 740* 0.85 = 629 T/hour
Handling capacity / day 629 * 21= 13209 T/day
Annual handling capacity 13209 * 300 = 3,989,118 i.e. 3.98 MT
Assumptions
On stream days considered in a year 302 days
Equipment availability per day 21 hours
Material handling equipment efficiency 85%
No cycles per crane 20
Tariff for mobile crane
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Sl. No Type of Cargo Rate per Ton @ Rs.
1 Dry Bulk 50.0
2 Break Bulk (steel) 40.0
3 Break Bulk (Others) 120.0
Operating Cost
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Si No Particulars Working 120 T HMC with Grab
1 Capital Cost 2352.5 lakhs
2Operating and Maintenance Cost
2. a Fuel4000 hours (70ltrs/[email protected]) 176.4 lakhs
2. b Repair and Maintenance Cost 5% of Capital Cost 117.625 lakhs
2. c Insurance 1% of Capital cost 23.52 lakhs
2. d Depreciation
10.34% on capital cost(As per normsPrescribed inCompanies Act)
243.24 lakhs
3 Other expenses 5% of Capital Cost 117.625 lakhs4 Total Cost 678.41 lakhs
Operational Feasibility
Break bulk handled last year= 10.27 lakh ton=1. 027 MT=1027000 ton
Revenue from Cargo handling= 1027000 X 120=12.32 Crore per annum
Operating Cost of Crane= 6.78 Crores per annum
Balance on hand=5. 54 Crore per annum
Capital cost= 23.52 crores
The expected payback period= 4.3 years
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Reduction in average turnaround time
Present average turnaround time= 5.98 daysPresent average turnaround time= 5.98 days
Capacity of crane= 13209 T/hour
No of ships entered with dry bulk 2010-2011= 59
Total ton of cargo handles in 2010-2011= 1027000 ton
No of days required for unloading cargo=1027000/13209=77.75 Days
Improved average turnaround time=77. 75/59=1.32 DaysImproved average turnaround time=77. 75/59=1.32 Days
Capital cost required = 23.52 CroresCapital cost required = 23.52 Crores
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Outlay of 11th Plan ( Projected GBS in Cores)
SCHEMES
Current Price
DG (Shipping) 58.35 66
Indian Maritime University 262.25 300
DG (Light house and light ships) 132.62 150
IWT Sector 543.75 615
Ship Building and Repairs 150.13 170
Major Ports 1818.68 2056.98ALHW 235.51 266.37
Others* 1269.49 1425.66
GRAND TOTAL 4464.96 5050
10th Plan
Source:11th Five year plan planning commission of India04/12/23 21
Changing Business Environment
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Companies has to adopt the following strategies
Expansion of Business
Acquisition on new Companies
Merging with other Companies
Formation of Strategic Alliance
Companies has to adopt the following strategies
Expansion of Business
Acquisition on new Companies
Merging with other Companies
Formation of Strategic Alliance
Department Hierarchies Dry dock and Workshop
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Departments
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Defining the problem The Taguchi Philosophy
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Cause and Effect Diagram
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Poor Utilization of Natural Resources
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Dry dock Statistics 2010-11
.
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NAME OF VESSELNO OF DAYS
DOCKED
OWNERED
BY
1Jewel of Muscat
5
2 Coramandel Supporter VII 49
3 M.V.Vrindha 10
4 M.V.Balavan 231 Port
Total Dock Utilizations in Days 295
Absence of SOP
Poor Employee Engagement
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None of the welders are certified. So underwater welding of vessels should be done by third party.
Absence of QIP& Motivation
Poor Employee Engagement
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Absence of Motivation Absence of QIP
Little Mechanization & Management
Mechanization
•Dry dock still uses the old
manual method for docking
which require minimum of
75 labours.
•More chances for accident
while docking the vessels.
Engineers are not confident
on this method .
Management
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Creating Unemployment
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Refined Cause and Effect Diagram
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Discussion and Solution
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Insufficient material handling equipment in port operation
is the major factor for current port performance.
Cochin port Trust could not collect single money from the
11th five year plan by submitting a valid project report.
The management of Cochin port trust could not identify the
crises in financial situation that they are going to face.
Discussion and Solution
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The Port Trust could not be able to create employment
opportunity for the last 15 years.
For any organization want to sustain in this type of business
environment should possess a strong quality team inside the
organization.
No organization can be profitable with unsatisfied employees
and bad working culture.
Modified Organisational Chart
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Present Structure on 1964Present Structure on 1964
Conclusion
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Future of Cochin Port Trust is depended on the business strategy
to be adopted by Port authorities . At the present situation the
issues identified in this study should be addressed before making
a step on it .
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Publication of Work
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1. The work is published in International Journal of Engineering Science
and Innovative Technology . Paper ID: IJESIT1909201201_445
2. The work is published in IOSR Journals International Organization of
Scientific Research. Paper ID: H31092
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References
CPT Administrative Reports 2005-11
Eleventh Five Year Plan Volume III Planning Commission Government of India
Web site Cochin Port trust
Text Book : Total Quality Management by S.M Sundara Raju,
Text Book : Research Methodology by Paneer Selvam
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