cable packaging-optimization
TRANSCRIPT
CABLE PACKAGING OPTIMIZER
Power Conductors & Telecom Industry
Table of Contents
• PACKAGING IN CABLE INDUSTRY
• PACKAGING COST STRUCTURE & PAIN AREA
• OPTIMIZATION APPROACH
• SOLUTION – CABLE PACKAGING OPTIMIZER
Packaging in Cable Industry
Cable Industry uses drum (as shown in fig.) for packaging the cable inside and dispatch it to the customer
Due to large variation in product SKUs, there are indefinite variations in drum dimensions
Cable drum which contains expensive cable material inside, has to follow certain design standards in order to meet qualitative parameters
Qualitative parameters which determine the drum dimension are Customer specification
Drum design standards (IS 1778; ASNZ 2857)
• Barrel/Flange diameter ratio
• Gap from the flange circumference
• Thickness of the flange
Production assembly line take-up
Container load capacity
Container size
Figure: Wooden Cable Drum
Packaging Cost Structure & Pain Area
51%
16%
4%
9%
18%
2%
Figure: Sample Cost breakup for a Cable Wooden Drum(2010 Rates)
Wood
Steel
Freight
Assembly, Consumables
Outer lagging
CST : 2%
Cost Variants Constraints Opportunity
Wooden Part •Cartelization Among Drum Manufacturers
•Design Standards
•Scrap selling
•Seasonal damage (poor recyclability)
•Inferior quality of wood, already priced at lower rate
•Alternate Suppliers
•Setting-up a saw mill
•Alternate material
•Design optimization
•Standardization
Outer Lagging •Scrap selling
•Inadequate handling
•No other alternative
•Assembling constraintSteel Component
•Nalcoflex or mixed combination
•Handling training
•Steel component price negotiation
Too many SKUS •Logistics constraint
•Standard length variations
•Standard length optimization
•Drum SKUs standardization
Com
po
nents
op
era
tion
al
Zero Recyclability •High steel drum prices
•No infrastructure for reverse logistics
•Steel drums on rental basis
•Outsourcing maintenance & reverse logistics
Pain Area
Whether it is a wooden or steel drum, too many size variation results in lack of standardization and sub-optimal packaging. This induces
• Higher purchase cost of drum
• In-efficient procurement and dispatch planning
• Lower drum utilization
• Higher logistics cost
Optimization Approach
Select a product, allocate the production machine based on stranding
Calculate the standard length of wire a bobbin (both small and large) can take; determine the standard length for this product
Determine the volume and weight of the conductor for the selected standard length
Plot the volume required by the conductor on a Scatter Plot along with the other existing conductors
Choose the Drum-Cluster where this new product belongs to and allocate the drum from the existing standardized set; In case of specific requirement it could use a new drum design
While standardizing the SKUs, its equally important to analyze the impact on Total Logistics Cost involved. A detailed comparative logistics analysis was done, and it was found that with reduced SKUs, and better dispatch forecast , we can minimize the under-utilization in logistics.
Solution – Cable Packaging Optimizer
Select optimal packaging drum as per desired design, cost, service levels and logistics objectiveOUT PRODUCT
Using cable drums to package different products and dispatch it to the customer, faces following
challenges
•Determining optimal drum dimensions (FxBxT) to match every customer demand as per requirement
like conductor type & dimensions
•Reducing logistic cost by increasing the number of packaged drums in a truck
Benefits
•Packaging cost reduction up to 15%
•Increased accuracy of Drum Forecasting
•Huge Time Reduction in Drum Planning
•Possible drum purchase price negotiation due to increased order size
•Logistics savings generated up to 10%
A web-Based Application
Cable Packaging Optimizer
Product Specification
•Stranding •Wire Diameter•Conductor Diameter•Weight of the Conductor (Kg per Km)•Packing Factor
• Bobbin Length
• Volume Requirements
• Drum Allocation
• Standard Length & Weight• Optimized Production
• Maximum Drum Space Utilization
• Optimized COST/MT• Drum SKUs recommendation
Input Parameters Metrics Area Key Metrics
Figure: Cable Packaging Optimizer screenshots (drum dimensions reference from IS-1778)
Cable Packaging Optimizer (Illustrations)
Distribution Map
with Visual
Analytics of sample
quarterly order
Export
Estimated Cost/MT reduction
Domestic Total SKUs
No of SKUs reduced
Estimated Cost/MT reduction
Estimated Cost/MT reduction
