“To calculate monetary saving by changing ex-works vendors from OM Logistics to free delivery through alternate transporter”

Mahindra & Mahindra, Haridwar

Executive Summary

Products are the blood of manufacturers. Production targets can be met, only if the raw materials

are delivered in time. Hence, inbound logistics represents one of the major business processes in

production planning. This process starts with the creation of a purchase order by the SCM

department and ends with the store receiving the consignment. Distortion in this process hampers

the production process. Lead time for the entire inbound process is a sum of vendor response,

transit and internal lead times where, internal lead time is the time taken by the plant to complete

all documentation, unloading, quality check and finally placing the material in the store – ready

for use.

A detailed study on the documents and material flow in the inbound logistics operations of

Mahindra & Mahindra, Haridwar has been done. And the some of the reasons for delay in the

inbound operations were found out.

Once the vehicle arrives at the plant gate for unloading, the documents that are to be checked at

the material gate are Invoice, Road Permit, LR copy. Failing to submit any of these documents or

mismatch in documents results in delay of production process. Few suggestions were given to

improve the turnaround time, delay time of the logistical operations.

This project helps in finding out monetary savings in the logistics operations in Mahindra &

Mahindra, Hariwar. It highlights the monetary savings to the company because of shift from

EXW to Free delivery, by calculating logistical cost per part.

Learning with M&M, has give an immense knowledge on inbound operations in a manufacturing

facility, flow of internal documentation process, warehouse practices and billing pattern followed

by the logistics service providers. The savings that a manufacturer can achieve because of

change in domestics commercial terms is the main crux of this project.

Table of Contents

Certificate of originality

Certificate from Mahindra & Mahindra

Acknowledgement

Executive Summary

List of Tables

List of Figures

Nomenclature

1. Introduction to Mahindra & Mahindra 1

1.1 Origin of Mahindra & Mahindra 2

1.2 Introduction 2

1.3 M&M Businesses 3

1.4 Automotive Sector 4

1.5 Awards and Recognitions 6

1.6 Introduction to Haridwar Plant 6

1.7 Products Manufactured 7

1.8 Mahindra Logistics 8

2. Review of Literature 10

3. Research Methodology 13

3.1 Objective of the Study 14

3.2 Measurable/Deliverables 14

3.3 Type of Research 14

3.4 Sampling Unit 14

3.5 Sample size 15

3.6 Primary Data 15

3.7 Secondary Data 15

4. Inbound Logistics 16

4.1 Inbound Logistics 17

4.2 Inbound Logistics at M&M Haridwar 17

4.3 Generation of GRN 19

4.4 Documents 19

4.5 Flow of Material 22

4.6 Flow of Documents 22

4.7 Activities Receipt Flow 24

4.8 Improvements/Suggestions 25

5. Logistics Service Provider 32

5.1 Full Truck Load and Part Load 33

5.2 Part Load 33

5.3 EXW and Free Delivery 34

5.4 Lead Time 34

5.5 Reasons for opting for free delivery by Mahindra 34

5.6 Factors considered for choosing LSP 35

5.7 LSP 35

5.8 Summary 35

6. Conclusion & Suggestions 36

Bibliography 37

Annexure 38

List of Tables

S.No. Title

1.1 M&M Business 3

1.2 M&M Haridwar 7

3.1 Sample size 15

4.1 Summary 35

List of Figures

S.No. Title

4.1 Flow of Material 15

4.2 Flow of documents at material gate 22

4.3 Flow of documents at receiving dock 23

4.4 Flow of documents at Logistics dept. 23

4.5 Receipt Flow 24

Nomenclature

CFT - Cubic Feet

DEO - Data Entry Operator

EXW - Ex Works

FIFO - First In First Out

FTL - Full Truck Load

GRN - Good receipt number

LR - Lorry Receipt

LSP - Logistics Service Provider

LTL - Less than Truck load

M&M - Mahindra & Mahindra

PCS - Physical Count Slip

PUC - Pollution under control

RFID - Radio Frequency Identification Device

RI - Receipt In-charge

RS - Receipt Supervisor

TAT - Turn Around Time

WS - Warehouse Supervisor

Chapter 1

Introduction to Mahindra &

Mahindra

Page | 1

1.1 Origin of Mahindra & Mahindra:

The birth of Mahindra & Mahindra began when K.C. Mahindra visited the United States of

America as Chairman of the India Supply Mission. He met Barney Roos, inventor of the rugged

'general purpose vehicle' or Jeep and had a flash of inspiration: wouldn't a vehicle that had

proved its invincibility on the battlefields of World War II be ideal for India's rugged terrain and

its rural roads? Swift action followed thought and Mahindra brothers joined hands with a

distinguished gentleman called Ghulam Mohammed. On October 2nd, 1945, Mahindra &

Mohammed was set up as a franchise for assembling jeeps from Willys, USA. Two years later,

India became an independent nation and Mahindra & Mohammed changed its name to Mahindra

& Mahindra. Ghulam Mohammed migrated to Pakistan post-partition and became the first

Finance Minister of Pakistan. Since then, Mahindra & Mahindra has grown steadily in size and

stature and evolved into a Group that occupies a premier position in almost all key sectors of the

economy, each one taking the group forward. The Group's history is studded with milestones.

Today, its total turnover is about 6.7 billion dollars.

1.2 Introduction:

The US $6.7 billion Mahindra Group is among the top 10 Industrial houses in India. Mahindra &

Mahindra is the only Indian company among the top three tractor manufacturers in the world.

Mahindra’s farm Equipment Sector has recently won the Japan Quality Model, the only tractor

company worldwide to be bestowed this honor. It also holds the distinction of being the only

tractor company worldwide to win the Deming Prize. Mahindra is the market leader in multi-

utility vehicles in India. It made a milestone entry into the passenger car segment with Logan.

With over 64 years of manufacturing experience, the Mahindra Group has built a strong base in

technology, engineering, marketing, and distribution which key to its evolution as a customer-

centric organization. The Group employs over 50,000 people and has several state-of-the-art

facilities in India and overseas.

Page | 2

1.3 M&M Businesses:

The Mahindra Group today is an embodiment of global excellence and enjoys a strong corporate

brand image.

Mahindra is the only Indian company among the top tractor brands in the world. It is today a

full-range player with a presence in almost every segment of the automobile industry, from two-

wheelers to CVs, UVs, SUVs and sedan. Mahindra recently acquired a majority stake in REVA

Electric Car Co Ltd. (now called Mahindra REVA), strengthening its position in the Electric

Vehicles domain.

The Mahindra Group expanded its IT portfolio when Tech Mahindra acquired the leading global

business and information technology services company, Satyam Computer Services. The

company is now known as Mahindra Satyam.

Mahindra is also one of the few Indian companies to receive an A+ GRI checked rating for its

first Sustainability Report for the year 2007-08 and has also received the A+ GRI rating for the

year 2008- 09.

1.3.1 Different Business of M&M:

Table 1, 1 M&M Business

Page | 3

1.4 Automotive Sector

Mahindra & Mahindra made the first indigenous Jeep in the country in 1949. Even in the fifties,

the Company had British and German engineers on its rolls, and international tie-ups with

Mitsubishi, Willys, Perrine and Chrysler.

Today it is the market leader in utility vehicles and light commercial vehicles, including three-

wheelers in India and accounts for about half of India’s market for utility vehicles. The

Automotive Sector continues to be a leader in the utility vehicle segment with a diverse portfolio

that includes mass transport as well as new generation vehicles. Mahindra & Mahindra’s foray

into the three wheeler segment has also made it a leader in its category.

The key products of company in automotive sector include:

1. Passenger Car:

Mahindra Renault Logan (by MRPL)

2. Utility vehicle segment:

Scorpio

Bolero

Xylo

3. Mahindra Navistar Automotives Ltd. (MNAL), a joint venture between Mahindra & Mahindra

Limited and International Truck and Engine Corporation, manufactures trucks and buses for

India and export markets.

4. 3-Wheeler segment:

Alfa

Champion

GiO

Page | 4

The sector has 5 manufacturing facilities in India, located in: Kandivli, Igatpuri and Nasik in

Maharashtra, Zaheerabad in Andhra Pradesh and Haridwar in Uttarakhand. The company has a

growing global footprint and has established itself in markets across the world as one of the

world’s most prestigious auto brands. With subsidiaries in South Africa, Europe and Australia

and a strong presence in over 15 countries, it aspires to be globally renowned in Utility vehicles.

5. Farm Equipment Sector

Farm Equipment Sector (FES) is a part of US $6.7 billion Mahindra group. It is amongst the top

3 tractor brands in the world. It also holds the distinction of being the first tractor company

globally to win the Deming Application Prize in 2003. Mahindra tractors are known for high fuel

efficiency and reliability.

The range of tractors includes:

Bhoomiputra

Shaan

Sarpanch

Arjun Ultra-1

Today, the domestic market share of FES is around 42%. (Mahindra brand: 30% and Swaraj

brand: 12%). The sector has 4 manufacturing facilities in India, located in Mumbai and Nagpur

in Maharashtra, Rudrapur in Uttaranchal and Jaipur in Rajasthan.

1.5 Awards and Recognitions:

Page | 5

Mahindra & Mahindra has been awarded with many prestigious awards. A few of which are:

In 2007 M&M was ranked second in the prestigious Most Trusted Car Company in India

in a study conducted by TNS.

In 2006 M&M has won ‘Overdrive Car Maker of the Year Award’.

In 2005 it received ‘Commendation for Significant Achievement in Human Resource’

from CII.

In 2005 M&M’s Auto Sector was awarded 2nd prize for Excellence in Supply Chain

Management, organized by S.P. Jain Institute of Management & Research, Mumbai.

Even at time of slowdown, the company's sales of utility vehicles in Q4 FY09, as compared to an

industry decline of 11%, jumped 11.83% to 48088 units as against 42999 units sold in Q4 last

year, allowing it to increase its market share in UV segment to 63 percent during the quarter.

1.6 Introduction to Haridwar Plant:

Haridwar plant was established in 8th December, 2005. This plant was set up primarily for

the manufacturing of 3 wheelers of different load capacities and range. But later, Bolero got a

shift from Nasik Plant to Haridwar Plant, to lessen the load of Nasik Plant. The total variants

produced for Bolero is five, i.e. DI, SLX, SLE, Longer and Plus. The total plant area is 34.78

acres with a built up area of 6.05 acres. The total employee strength at the plant is around 650

with manufacturing facilities like Conveyorized Assembly, Transaxle assembly line. Haridwar

Plant is an assembly plant.

Location Integrated Industrial Estate, SIDCUL

Page | 6

Why Haridwar? 100% excise duty exemption for a

period of 10 years

100% income tax exemption for a

period of 5 years

Capital income subsidy @ 15%

Significant support and emphasis to

industry by Uttarakhand Government

Specialization in… Automotive Sector

Final Products… Bolero SLX. SLE etc, ALFA passenger &

CNG, Champion C&C, Champion CNG,

ALFA LC

Strength… 800 Approx

Table 1.2: M&M Haridwar

1.7 Products Manufactured:

The products manufactured at this plant are:

1.7.1 Bolero:

Mahindra Bolero is a mid-size SUV loaded with style, comfort, convenience and good fuel

economy. It comes in 5 variants; SLX, SLE, Longer, DI and DI Plus.

1.7.2 Alfa (Passenger and Cargo):

Page | 7

Mahindra Alpha is a 3-Wheeler light commercial vehicle. It looks great but its performance is

what makes the impact. Its extra economy lets customer save more, extra comfort lets him drive

more and extra space lets him carry more. So that he can earn a lot more.

1.7.3 Champion CNG (Passenger and Cargo):

Mahindra Champion CNG is for those who care about the environment. It comes with more

space, more comfort and more savings.

1.7.4 GiO (Cargo):

Mahindra GiO is one of the latest vehicles of M&M Haridwar. It is a 0.5 ton load carrier on 4

wheels.

1.8 Mahindra Logistics:

In December 2000, the Mahindra Group set up Mahindra Logistics (erstwhile Transport Solutions

Group) to take care of its complex transportation needs. These included inbound and outbound

logistics and inter-plant movement, among other services. While it initially focused on logistics

opportunities within M&M business, it extended services to external clients across the world.

Mahindra Logistics has now grown into a complete logistics service provider offering end-to- end

supply chain solutions. By providing unique offerings in people logistics, Mahindra Logistics is in

a leadership position in the BPO/ITES segment. With the best-in-class Supply Chain offerings, it

has acquired a dominant position in key segments such as Auto, Retail, Pharma and Telecom in

domestic & international markets.

Mahindra Logistics was spun off as a 100% subsidiary of M&M Ltd. From 1st Oct 2008, and was

rechristened as Mahindra Logistics Limited (MLL).

Page | 8

1.8.1 Vision:

“To be the leading edge logistics partner ensuring highest customer satisfaction in our select

industry segments”

1.8.2 Quick Facts about Mahindra Logistics

100% subsidiary of M&M

>200 customers ( Fortune 500 companies)

Managing >34 automotive plants

22,00,000 sq feet warehousing space

Fleet of 20,000 vehicles

26 offices

2000 employees

1.8.3 Awards & Recognitions:

M&M Business Model innovation Award

Logistics Excellence Award, Singapore

Page | 9

Chapter 2

Review of Literature

Page | 10

Here an attempt has been made by the researcher to understand, what work has been carried out

in the past to improve the logistics operations. The objective of review is to explore how a firm

has gained competitive advantage through improving their logistics operations and have

sustained it for over a period of time.

Hirschman (1958) considered that strong linkages between suppliers and buyers could

support a nation's economic development as well as that of organizations, themselves.

However, for many reasons, the possibility of better coordinating the activities of different

players along the value chain only really caught the attention of practitioners and academia

much more recently.

One such reason for increasing the focus on logistics processes was that companies realized that

they could not improve competitiveness by just reducing their internal costs, any longer. Part of

the effort to enhance efficiency involves coordinating activities with customers and

suppliers (Harrington, 2005). Having solved many of their internal inefficiencies, organizations

are now concerned with improving their external links to business partners.

La Valle (2007) has been benchmarking physical distribution services since 1994, carrying

out ca. 600 interviews with executives in different parts of Brazil, involving four product

Categories: perishable food, non-perishable food, hygiene and cleaning products. His

methodology takes into account eight dimensions: product availability, order cycle time,

consistency of delivery schedule, delivery frequency, delivery system flexibility, failure

solving system, support information system and support to physical delivery. After analyzing

the data he gathered, La Valle (2007, p. 11) acknowledged “the existence of strong potential for

differentiation based on the quality of the physical distribution service". The results of the survey

showed that those companies that have a better logistics performance are perceived by retailers as

being superior and are given priority in future commercial relationships.

Johansson & Pålsson (2009), suggested that it was justifiable to carry out research on the

perceptions of logistics professionals about an evaluation tool that is quickly gaining adopters

Page | 11

in the automotive industry, which was jointly developed by the two associations that

congregate companies in the automotive sector in North America and Europe.

Their study’s major finding was that MMOG/LE is more useful to help companies to improve

their performance concerning issues that were not directly addressed by previous quality

norms and recommendations. Its importance became particularly clear in making its users

understand that they need to integrate their processes electronically with those of their

business partners, in order to improve the logistics flow

Patricia, Alexander, Craig (1996), presents the results of a recent survey of logistics executives

concerning their perceptions regarding integrated logistics. Focuses discussion on an assessment

of the current level of implementation of the integrated logistics concept among US firms and

provides support for a relationship between integration and logistical performance

improvements. Reveals that the results have significant managerial implications as more

organizations place emphasis on supply chain management, and that internal and external

integration are necessary to facilitate channel-wide linkages and enhance channel efficiency.

Johansson, Palsson (2009), findings indicated better logistics performance for companies using

radio frequency identification (RFID) technology, while no significant differences can be seen

for companies using Auto-ID in general. In terms of registration, best-in-class firms have more

identification points along their supply chains compared to other firms. Best-in-class firms also

seem to have more extensive sharing of tracking data with supply chain partners, both upstream

and downstream, and in terms of frequency and scope, which contributes to superior logistical

performance.

Page | 12

Chapter 3

Research Methodology

Page | 13

3.1 Objective of the Study:

1. To improve the inbound logistics performance

2. To increase the service performance as compared to the existing transporter.

3. To achieve logistical cost savings.

3.2 Measurable/Deliverables:

1. Analyzing non-value added activities in inbound logistics

2. Suggestions/ Improvements in inbound logistics

3. Calculating savings expected with the new service provider.

4. Comparing service levels of existing and proposed logistics provider.

3.3 Type of Research – Descriptive

Descriptive Research:  Descriptive research includes surveys and descriptive fact-findings enquiries of all kinds. Descriptive research is conclusive in nature and the research objectives are clearly defined. The major purpose of descriptive research is description of the state of affairs as it exists at present. The main characteristics of this method are that the researcher has no control over the variables.

3.4 Sampling Unit:

Data regarding truck delay time, turnaround time etc has been collected from 12/6/2010 till 23/6/2010 (Reporting Date is considered).

Data for the parts coming from south vendors is collected for Bolero.

LSP under study is OM Logistics

Page | 14

3.5 Sample size:

The sample size considered for the project savings achieved by changing the LSP, is as follows:

No. of Parts

Bolero 51

Total 51

Table 3.1: Sample size

3.6 Primary Data:

Data has been collected using observation, inputs from executives, supervisors, LSP’s and drivers

3.7 Secondary Data:

Inbound tracking System of M&M.

Page | 15

Chapter 4

Inbound Logistics

Page | 16

4. Inbound Logistics

4.1 Introduction:

Inbound and outbound logistics is a vital part of the supply chain process. It can be defined as

“the process of Receiving, storing, and disseminating incoming goods or material for use.”

4.2 Inbound Logistics at M&M Haridwar:

The whole inbound Logistics at Mahindra & Mahindra Haridwar can be divided into three phases depending upon the location.

They are:

• Material Gate

• Dock

• Warehouse / Store

Location 1: Material Gate

Employees Involved:

a. Security

b. Data Entry Operator (DEO)

c. Driver

Processes:

1. Reporting of vehicle by the driver at the material gate

2. Entry of vehicle details by the security

3. Submission of LR, invoice by the driver to security

4. Checking the documents and preparing PCS ( Physical Count Slip) by the DEO

5. In case of discrepancies in the invoice, DEO contacts the buyer

6. Allotting time slot to the driver for unloading

Page | 17

Location 2: Dock

Employees Involved:

a. Receipt Supervisor, RS

b. LSP Agent

c. Forklift Operator

d. Unloading Casuals

e. Security

Processes:

1. LSP agent is responsible for updating about his truck

2. Placing the vehicle by the driver at the dock at the assigned time

3. Driver/ LSP agent hands over the docs to the RS

4. Unloading Casuals arranged by RS to unload the materials from the vehicle

5. Tallying & Verification of unloaded materials by RS

6. Incase of Engines, RS checks whether the whole truck is covered or not and then using hoists, engines are unloaded

7. Once, the material is unloaded on to the pallet, using forklifts they are transferred to the store

8. Incase of loose materials, weight auditing is done

9. One copy of PCS is attached to the unloaded materials

10. In case of defective pieces, material is not transferred to the store. RS intimates Receipt In charge, Inbound Manager, QAC and Buyer

11. Security is responsible to guard the unloaded materials to prevent pilferages

Location 3: Warehouse / Store

Employees Involved:

a. Warehouse Supervisor, WS

b. Stacker Operator

c. Warehouse Executive

Page | 18

Processes:

1. Forklift driver places the material near the assigned rack

2. Using Stacker, the materials are stacked onto the assigned rack

3. Incase rack is full, the material is kept on the floor in front of the rack

4. Warehouse supervisor should supervise the arrangement of materials on to the racks

4.3 Generation of GRN (Good receipt number):

1. After unloading the materials, the documents are handed over for GRN generation by Receipt In-charge, RI

2. In case of discrepancies (e.g.: damaged materials, mismatch between materials received and Invoice), GRN is not generated

3. If there are any issues in GRN generation or if errors are found in PCS, then PCS is sent back for modification

4. Filing is done, once GRN is generated

5. After filing, bill is passed in the accounts department, which is responsible for Cheque/DD payments.

4.4 Documents:

Documents to be checked before unloading the vehicle by security are

4.4.1 Road Permit: (Form 31)

The regional transport authority is empowered to issue regional road permits to transport vehicle for operation in and within the jurisdiction of the regional authority.

It is mandatory for owner of a transport vehicle to obtain permit and use / permit the use of the vehicle in accordance with the conditions of the permit granted or countersigned by the Regional or State Transport Authority.

In special occasion and circumstances, special road permits are granted for a very short duration on application made.National road permit and all India tourist permits for buses and taxies are granted liberally by S.T.A. on consideration of increasing trend of economic activities.

Page | 19

There are different categories of permit:

Contract Carriages: Taxi Cab and Maxi Cab Stage Carriage: Line Bus, Mini Bus and City Bus Goods Carriages: Carriage of goods on hire and carriage of owner’s own goods Casual Contract: Carriage partly for carriage of passengers and partly for carriage of goods

4.4.2 Invoice:

A written account or itemized statement, usually on a printed form with the name and address of the seller, listing merchandise sold or shipped to a purchaser, consignee, factor etc., showing their name and address, and containing a description of the merchandise, the quantity, values or prices and charges, and other significant details of the transaction such as the terms of sale and the currency of the purchase. From the point of view of a seller, an invoice is a sales invoice. From the point of view of a buyer, an invoice is a purchase invoice.

Contents of Invoice are

A unique reference number (in case of correspondence about the invoice)

Date of the invoice.

Tax payments if relevant (e.g. GST and VAT)

Name and contact details of the seller

Name and contact details of the buyer

Date that the product was sent or delivered

Purchase order number (or similar tracking numbers requested by the buyer to be mentioned on the invoice)

Description of the product(s)

Unit price(s) of the product(s) (if relevant)

Total amount charged (optionally with breakdown of taxes, if relevant)

Payment terms (including method of payment, date of payment, and details about charges late payment)

There are three types of invoice. They are:

1. Original copy

2. DFT copy - Duplicate for transporter copy

3. Extra copy

Page | 20

4.4.3 Lorry Receipt:

Document issued by the logistics service provider, to the consignee as a contract of carriage of

goods. It is also a receipt for consignment accepted for transportation, and must be presented for

taking delivery at the destination.

Among other items of information, a LR contains (1) consignor's and consignee's name, (2) names of

departure and destination, (3) Lorry No., (4) dates of departure and arrival, (5) itemized list of goods

being transported with number of packages and kind of packaging, (6) marks and numbers on the

packages, (7) weight and/or volume of the consignment, (8) freight rate and amount.

4.4.4 Pollution under Control Certificate:

A PUC or Pollution under Control Certificate is usually required for vehicles which are older than 3 months on the road. The certificate is valid for three months and involves a quick 5 minutes check up.

It is mandatory for every vehicle owner to carry a valid Pollution under Control Certificate and maintain in such a condition and shall be so driven so as to comply with the prescribed emission norms.

4.4.5 Driving License:

Driving license is an official document which states that a person may operate a motorized vehicle, such as a motorbike, car, truck or a bus, on a public roadway.

4.4.6 PCS:

PCS is generated by the Data Entry operator near the material gate at the plant, once the truck reports. PCS is generated only if there is no discrepancy in any of the above mentioned documents. It contains the following information: 1) Physical count No 2) Date 3) Part No 4) Description 5) Vendor Code 6) Vendor Name 7) Invoice no. 8) Vendor Name 9) Invoice Quantity 10) LR No. 11) Transporter Name 12) Bill No. 13) GR No.

Page | 21

4.5 Flow of Material:

Fig 4.1: Flow of Material

3.6 Flow of Documents:

4.6.1At Material Gate:

Fig 4.2: Flow of documents at material gate

Page | 22

4.6.2At Receiving Dock:

Fig 4.3: Flow of documents at receiving dock

4.6.3At Logistics Dept:

Fig 4.4: Flow of documents at Logistics dept.

Page | 23

4.7Activities Receipt Flow:

Docs to be checked:

Excise Invoice: Original for Buyer

Duplicate for LSP

Form 31: Road Permit

LR 2 Copies: Consignee copy, Driver copy, Wt. of goods on LR, Lorry No.

Damaged

Good

No

Page | 24

Lorry Receipt at Main Gate

Check Docs

If any Doc is missing / LR mismatch, Inform Receipts

Punch PCS in system

Attach PCS to docs

Vehicle moves to doc

Condition of goods

Prepare Driver declaration form. Inform QC

Unload Goods. Cross check with LR

Goods Received as

per LR

Raise debit rate & get it signed by consigned driver

& LSP

Yes

Fig 4.5: Receipts Flow

4.8 Improvements/Suggestions:

Problem 1 –

Reporting is delayed if the papers of the vehicle are not up-to-date. (Refer Exhibit:1)

Cause –

At the time of reporting all the papers of a vehicle are checked including the pollution certificate and the driver’s license. If any of these papers are not available with the driver or have expired then the reporting is not done until the corrected papers are brought.

Solution –

The transporters should be ordered to ensure that the papers of their vehicles, pollution certificate etc. all are updated.

Benefit –

Ensuring that all the papers are updated will help in faster reporting process and also greatly reduce the overcrowding of the reporting widow.

The loss of 10-15 minutes at material gate will be eliminated.

Page | 25

For shortages inside the packed box, mail to buyer and Acknowledge short on

Invoice for short GR posting and take photo

proof

Prof of delivery to be given on the back of LR + Extra

copy of Invoice

Physical count of material

Punch GRN in the System

Problem 2 –

Reporting is delayed if the papers of the material are not available with the driver at the time of the reporting. (Refer Exhibit:1)

Cause –

Sometimes the transporters keep the material papers with them at the time of reporting so that the papers can be quickly handed over for PCS generation. This however, delays the reporting of the vehicle.

Solution –

Transporters should ensure that the documents of the material are with the driver at the time of reporting.

Benefit –

Reporting process will be smooth if such small things operations are taken care properly.

About 5-6 precious minutes will be saved.

Problem 3 –

Documentation problem is one of the major hurdles and most frequently occurring problem in reducing the TAT. Much time is wasted in rectification of such problems. (Refer Exhibit:1)

Cause –

This problem occurs when the vendor makes a mistake in the material invoices. The rectification of this problem takes much time as the driver/transporter has to come to the SCM department to get the problem resolved.

Solution –

SCM personnel should be appointed at the gate, which will look after the documentation issues at the gate itself. The DETs can be appointed for this purpose on rotation basis.

A vendor performance evaluation sheet should be maintained and regular feedback should be given to the vendor. This will make the vendor aware of the fact that his performance is being assessed and hence will try to reduce such errors.

Page | 26

Benefit –

Rectification of these problems consumes a lot of time. On an average it takes about 1- 1.5 hours to get the correct the documentation problems. However, in some conditions this time duration may stretch up to 3-4 hours. Thus appointing a person at the gate to solve these problems would considerably reduce this time and hence reduce the TAT.

Maintaining vendor performance evaluation sheet would bring a decrease in documentation issues as vendor will try harder to avoid such cases knowing that he is constantly being assessed.

Problem 4 –

Dock space not available.

Cause –

Docks are covered with empties. These empties cover a lot of dock space adding on to this are the trucks which stand waiting at the docks to be loaded with these empties. Also trucks standing idle at docks waiting to be unloaded, all of these cover up a lot of dock space unnecessarily. Resulting in lesser dock space available and hence, the number of vehicles that can be unloaded at a time.

Solution –

The dock should be cleared of all empties.

A separate space should be assigned away from dock where empties can be loaded on to the trucks without them using up the dock space.

Vehicles which are not being unloaded should be removed from dock immediately to allow the unloading of another vehicle.

Benefit –

Space available at dock to unload more number of vehicles at a time.

Problem 5 –

Vehicle different than that mentioned on the papers leads to confusion and hence, delays entry and it is extremely difficult to track down such vehicle later on. (Refer Exhibit:2)

Page | 27

Cause –

The material sometimes is not brought directly to the company. Instead it is first brought to the transporter’s warehouse where it is then loaded to another vehicle along some other material that is to be brought to the company. In such a case the vehicle no. on the documents is different from that which has actually brought the material. Despite the no. of the new truck is mentioned by the transporter on the papers the person generating PCS overlooks this and feeds the no. of the previous vehicle on the system.

Solution –

Training of the PCS generating staff is extremely important to avoid such mistakes.

Benefit –

Tracking down of the vehicle in future would be easier (tracking down is required to find out that which material and in what quantity was brought by the vehicle).

Problem 6 –

LR No. not mentioned on material boxes.

Cause –

This happens due to the vendor’s carelessness.

Solution –

A vendor performance evaluation sheet should be maintained and regular feedback should be given to the vendor. This will make the vendor aware of the fact that his performance is being assessed and hence will try to reduce such errors.

Benefit –

Maintaining vendor performance evaluation sheet would bring a decrease in such issues as vendor will try harder to avoid such cases knowing that he is constantly being assessed.

Page | 28

Problem 7 –

Repetitive movement between docks increases the unloading time. (Refer Exhibit:3)

Cause –

Continuous movement of truck between docks occurs when the material for different docks is not loaded on the vehicle in a systematic manner. This increases the unloading time because every time a vehicle moves to another dock it takes time for the driver to park the vehicle in a proper manner at the dock. Sometimes the vehicle has to wait for its turn when the dock is full. Moreover, the labor gets disturbed every time they have to move to another dock and take some time to settle down.

Solution –

The transporter should be told to load material in a systematic manner such as, Bolero material in front and Alfa material at the back so that material of one dock can be un- loaded at a single time.

Benefit –

Every time when a vehicle changes dock it takes about 3-4 min for the vehicle to be correctly parked at the other dock. It takes another 2-3 min for the labor to settle down. The condition becomes much worse if the dock is full and the vehicle has to wait for its turn. By forcing the above solution ensures that minimum dock movement takes place and hence quicker unloading leading to reduced turnaround time of the vehicle.

Problem 8 –

Vehicle containing material having some quality issue (especially packaging) stands idle at dock for days. (Refer Exhibit: 4)

Cause –

When such an issue comes forth, the main problem faced is that to whom the loss is to be debited. This is because both the transporter and the vendor accuse each other for torn packaging.

Solution –

Vendor should send a photograph of loaded truck so that it acts as a proof about the condition of the material at dispatch.

Benefit –

This would eliminate the problem that who should be debited in such cases. Thus such issues can be handled quickly and efficiently.

It would also reduce quality problems from the vendor side.

Page | 29

Problem 9 –

Lack of hand pallets at dock increases unloading time. Also there is no specific place assigned where unused hand pallets should be kept, due to this the labors have to look around in the stores and find the unused hand pallets for unloading material this further delays the unloading of material.

Cause –

Each dock has very few hand pallets, these pallets are used both for unloading purpose by the labors at the dock and also by the labors at the stores to move the material to its respective location. Thus, sometimes hand pallets are not available for unloading material.

Solution –

Increasing the no. of hand pallets available at each dock.

Assigning a permanent place where unused hand pallets should be kept so that it is easier for both labor at dock as well as those of stores to locate the hand pallets as and when required.

Benefit –

By increasing the no. of hand pallets available at each dock the unloading process will become smooth and fast.

Assigning place to keep empty hand pallets will eliminate the need of dock labor to run around looking for and pallets as they would very well where to find them, and thus decrease time for unloading.

Problem 10 –

Supervisor availability, especially at dock 3 (Refer Exhibit 5)

Cause –

Unloading sometimes is delayed due to non availability of dock supervisor; this problem is especially related to dock 3. A supervisor for dock 3 has been appointed but he also in charge of other docks as well due to which the vehicle at dock 3 has to wait for hours before the supervisor is available for getting the material unloaded and counting of the unloaded material.

Solution –

Page | 30

A supervisor exclusively for dock 3 should be appointed to eliminate this time loss which occurs due to unavailability of supervisor.

Benefit –

The turnaround time for trucks which are unloaded at the 3 rd dock will be greatly reduced.

More dock space as there will less vehicles standing idle at the dock.

Problem 11 –

After unloading the vehicles have to wait for out time. (refer Exhibit 6)

Cause –

The out time on the gate pass is written by the supervisor. Getting out time is dependent upon the availability of the supervisor at the dock. If the supervisor is not available then the vehicle has to wait until the out time is given by him.

Solution –

Strict instructions should be given to dock supervisor to ensure that the out time is given as soon as the vehicle gets unloaded.

Benefit –

This would take care of the fact that most of the vehicles stand at the docks even after being unloaded. It would reduce the dock overcrowding and allow unloading of other vehicles.

Page | 31

Chapter 5

Logistics Service Provider

5.1 Full Truck Load and Part Load:Page | 32

A Full truckload is generally dedicated to a single Vendor. This is in contrasts to less-than truckload (LTL), where numerous smaller parts from multiple customers make up the full truck.

To reduce transportation cost, the Lot Size should be able to make full truck load but if it is not possible, different parts may be from different vendors should be clubbed together to make full load.

5.1.1 Advantages of using FTL:

1. Reduced transit time: With full truckloads, the trailer is usually dedicated to a single Vendor, so the driver moves the freight directly from the origin to the destination. With LTL, the shipment may go from one terminal to the next, often handled numerous times, before it arrives at its final destination.

2. Reduced damage: As the consignments are handled fewer times, damage rates are often much lower.

3. Lower cost: For heavier freight, the cost is much cheaper per Kg using full truckload transportation than LTL.

5.1.2 Disadvantages of FTL:

1. Carrier selection: Choosing a carrier that has the appropriate licenses, insurance, and safety record, requires some due diligence that is often unnecessary with LTL shipping. Assistance from reputable freight broker / truckload broker will often save time and money.

2. Finding equipment: Finding the right truck to move the freight sometimes may take couple of days, which can increases the lead time.

5.2 Part Load:

5.2.1 Per Kg and CFT:

If the weight of the material is high and volume of the material is less then, billing of that material is done on per kg basis.

CFT billing is done when the volume of the material is high and the weight of the material is less.

5.3 EXW and Free Delivery:

Page | 33

5.3.1 EXW:

1. The consignee pays all transportation costs and also bears the risks for bringing the goods from the consignor factory to the final destination.

2. Consignor delivers the goods at his own place.

3. Greater responsibility on the buyer than the supplier.

5.3.2 Free Delivery:

1. Consignor delivers the goods to the consignee at the consignees place.

2. Transportation cost and risk are borne by the consignor.

3. Lesser responsibility on the buyer than the supplier.

5.4 Lead Time:

Total lead time is the sum of vendor response, transit and internal lead time.

5.4.1 Vendor Response Time:

Time taken by vendor to dispatch the material after receiving the order is called as vendor response time. It should be always less than one day, for this vendor has to keep some stock at its end at least equal to one lot size for immediate dispatch.

5.4.2 Transit Lead time:

It is the time taken by the transporter to deliver the material from vendor to plant gate. It depends on the mode of transportation (road, train, air) and the distance between the vendor and plant.

5.4.3 Internal Lead time:

It is the time taken by the plant to complete all documentation (PCS, GR), unloading, quality check and finally placing the material in the store – ready for use.

5.5 Reasons for opting for free delivery by Mahindra:

1. Risk borne by the consignor.

2. Consignor being an expert in material handling.

3. Material will be dispatched by the consignee at any decided location.

4. Minimizing Transportation Cost

5.6 Factors considered for choosing LSP:Page | 34

1. Minimal/No damages due to improper handling.

2. No quality issues especially packaging

3. Reliability

4. Quality of service

5. Less Transit time.

6. Delivery of lot size in good condition

7. Proper maintenance of truck without having rust.

8. Proper Documentation.

5.7 LSP:

1. Existing service provider for South parts is OM logistics. Transit time is 6-7 days.

2. New LSP’s under consideration are Chetak logistics and VRL logistics. Expected Transit time is 5-6 days.

5.8 Summary:

Location Transporter

Total Weight per Piece (Kg)

Consumption/year (pieces)

Existing cost/kg (Rs)

Existing Logistical Cost/year (Crores)

Proposed cost/Kg (Rs)

Proposed Logistical Cost/year (Crores)

Logistical Cost Savings/year (Lakhs)

Bangalore,Chennai,Coimbatore, Pondy

OM 113.4 972360 8 1.5 6.5 1.22 28

Table 5.1: Summary

Page | 35

Chapter 6

Conclusion&

Suggestion

6. CONCLUSION & SUGGESTIONS: Page | 36

For the south parts coming from Bangalore, Chennai, Pondicherry and Coimbatore, presently OM logistics is the service provider. The existing transporter is charging Rs.8 per kg and the transit time is 6-7 days. The existing logistical cost per year comes around 1.5 Crores.

OM logistics is an EXW vendor. By switching from EXW to Free delivery for south parts, M&M can achieve logistical cost savings of about 28 lakhs per annum, as proposed cost per kg will be around Rs.6.5. At the same time transit time can be reduced to 5-6days.

Hence, it is suggested that, M&M should change EXW vendors to free delivery through alternate transporter.

Bibliography:

1. Graeml, Alexandre; Peinado, Jurandir(2009). Measuring Logistics Performance: The Effectiveness of MMOG/LE as perceived by suppliers in the automotive industry.

2. Johansson, Ola; Palsson, Henrik. (2009). The impact of Auto-ID on logistics performance: A benchmarking survey of Swedish manufacturing industries.

3. Patricia J. Daugherty, Alexander E. Ellinger, Craig M. Gustin. (1996). Integrated logistics: achieving logistics performance improvements

Page | 37

Annexure

Exhibit 1:Page | 38

Unloading delayed due to discrepancies in documents

S.NOReporting Date

& TimeTruck No. LSP Delay

Time(Mins) Reason For Delay1 6/12/10 11:00 MH-04CG-5924 Jhanu 15 Papers not up-to-date

2 6/12/10 11:50UA-06E-4402

Jhanu90

Discrepancies in Invoice

3 6/12/10 16:30 UP-12H-4728 Jhanu 10 Documents with LSP

4 6/14/10 12:00 UP-17A-8069 Jhanu60

Discrepancies in Invoice

5 6/14/10 12:35 RJ-05G-4962 Jhanu 10 Documents with LSP6 6/15/10 10:15 UK06CA-0253 Ganesh 5 Documents with LSP

7 6/15/10 10:15UA08E-9336

Ganesh15

Papers not up-to-date & Unavailability of Dock Space

8 6/15/2010 10:30 HR-58C-2547 Jhanu 120Discrepancies In Invoice

9 6/16/2010 10:40 UP-17D-3540 Jhanu 5 Documents with LSP10 6/16/2010 7:35 UP-17D-2530 Jhanu 15 Papers not up-to-date

11 6/16/2010 9:50 UP-17C-5031 Jhanu 90Discrepancies In Invoice

12 6/16/10 10.20 HR-67-2727 Jhanu 75Discrepancies In Invoice

13 6/16/2010 11:20 UA-08-E-9380 Ganesh 5 Documents with LSP14 6/17/2010 9:45 UP-80AN-9874 BGFC 10 Papers not up-to-date15 6/17/2010 13:20   Jhanu 10 Papers not up-to-date16 6/17/10 10:45 UP-17A-6371 Jhanu 5 Documents with LSP

17 6/17/10 14:15 UP-15AT-1747 Jhanu 90Discrepancies In Invoice

18 6/17/10 11:10 UP-08E-9371 Ganesh 5 Documents with LSP19 6/17/10 12:30 UK-07CA-1890 Ganesh 10 Papers not up-to-date20 6/17/10 10:00 MH-04CG-9226 Jhanu 5 Documents with LSP21 6/18/10 9:00 HR-45A-2937 Jhanu 10 Papers not up-to-date22 6/18/10 9:00 HR-38N-6342 ABC 10 Papers not up-to-date

23 6/18/10 10:05 UP-12T-1376 Ganesh 60Discrepancies In Invoice

24 6/18/10 10:40 UP-80AJ-9958 BGFC 90Discrepancies In Invoice

25 6/18/10 10:45 UP-80BB-9108 Jhanu 120Discrepancies In Invoice & Unavilability of Dock

Page | 39

Space26 6/18/10 15:00 HR-38N-6342 ABC 5 Documents with LSP

27 6/19/10 10:15 RJ-11GA-3427 Jhanu 180

Discrepancies In Invoice & Unavilability of Dock Space

28 6/19/10 11:35 UA-08D-9758 Ganesh 5 Documents with LSP29 6/19/10 14:20 UA-08E-9398 Ganesh 15 Papers not up-to-date30 6/21/10 10:00 UK08CA-0726 Ganesh 5 Documents with LSP31 6/21/10 10:00 UA08E-9380 Ganesh 5 Documents with LSP32 6/21/10 10:00 UK07CA-1890 Ganesh 5 Documents with LSP33 6/21/10 10:30 UA07L-4814 Ganesh 15 Papers not up-to-date

34 6/21/10 11:30

MP-07GA-1905

Jhanu 90

Unavilability of Dock space & Reaching at the time when no new unloading activities take place

35 6/21/10 11:40UK-08CA-1410

Jhanu 60Discrepancies In Invoice

36 6/21/10 12:00 MH-04CP-4312 Jhanu 15Papers not up-to-date & Unavailability of Dock Space

37 6/21/10 13:30 HR-74-0618 Jhanu 180

Discrepancies In Invoice & Unavilability of Dock Space

38 6/21/10 16:20 UK-07A-3850 Jhanu 90Improper Documents & Unavialability of Dock Space

39 6/22/10 10:15UA07T-0452

Ganesh 5Documents with LSP & Unavilability of dock Space

40 6/22/10 10:15 UA08H-8757 Ganesh 15 Papers not up-to-date41 6/22/10 12:20 UP17C3526 ABC 5 Documents with LSP42 6/22/10 14:15 MH-04CP-3819 Jhanu 15 Papers not up-to-date43 6/22/10 15:50 UK08CA-0186 Ganesh 5 Documents with LSP

44 6/22/10 16:15

UP-12T-0788

Jhanu 180

Unavilability of Dock space & Reaching at the time when no new unloading activities take place

Page | 40

45 6/23/10 13:00 UP-81H-9893 Jhanu 15 Papers not up-to-date46 6/23/10 13:30 UK08CA-0130 Ganesh 5 Documents with LSP

47 6/23/10 13:40MP06-EA0239

BGFC 75Discrepancies in Invoice

48 6/23/10 16:00 UA07D-9758 Ganesh 5 Documents with LSP

Exhibit 2:

Vehicle different than that mentioned on the papers is dispatched.

Reporting Date Mentioned Vehicle No. Dispatched Vehicle No.

6/15/10 RJ11GA-2936 UP-12-D/9576

6/16/10 HR38N 7092 UP-80BF-9426

6/16/10 MH-04-CG/9224 UK-08-C/1686

6/18/10 UA-07L-4595 UK08CA-0186

6/18/10 UA08E-9398 UK08CA-0652

6/21/10 UP-17-A/8069 UK07CA-1890

6/23/10 UP-15-K/7543 UK08CA-0532

Exhibit 3:

Unloading got delayed as material is not loaded in a systematic manner

Reporting Date LSP Delay Time (min)

6/15/10 OM 30

6/16/10 Sampark 5

6/17/10 Jhanu 10

6/18/10 Sampark 20

6/18/10 Ganesh 10

6/21/10 Jhanu 5

6/24/10 Jhanu 5

Exhibit 4:

Due to packaging issues, consignment lying idle

Reporting Date Part No. LSP Vendor Name

Page | 41

6/14/10 0108JN0310N Jhanu Slide Well

6/15/10 Z-1101AA0361N OM Rane Madras Ltd.

6/16/10 0607AA0731N Jhanu Brakes India

6/18/10 PMAM0104CM0920N BGFC Wheels India

6/18/10 80383 OM Autoliv

6/18/10 1805AA0441N OM Delphi TVS

6/19/10 1703HA0131N Sampark J.M.Industries

6/21/10 0111CG0650N Sampark J.M.Industries

6/23/10 0801BA0281N OM LUK India

Exhibit 5:

Unavailability of Supervisor at the dock.

Reporting Date& Time

Vehicle No. Delay Time (min)

6/15/10 10:40 UP80AJ-9958 10

6/15/10 15:00 UP80BK-9831 5

6/16/10 12:45 UP80AJ-9958 15

6/17/10 9:00 HR56-6323 5

6/17/10 11:40 UP81H-9893 20

6/18/10 14:30 HR38F-3886 5

6/19/10 10:00 RJ05GA-0973 10

6/23/10 15:20 HR65-4065 5

6/24/10 16:00 UP80AN-9404 5

6/25/10 9:20 DL1M-1793 5

Exhibit 6:

Vehicle out Time

Reporting Date Vehicle No. Delay time (min)

Page | 42

6/14/10 UA08G-9790 5

6/15/10 UP-12-D/9576 10

6/19/10 UP23D-5861 5

6/21/10 HR56-2628 3

6/25/10 UA08-1686 5

Exhibit 7:

Part No. Part Name Vendor Name

Exclusive Location Part Per Box (pieces)

Z-0110AN0230N Z Part Kit belt with switch Autoliv SLX Bangalore 8Z-0110CN0210N Z Part Seat Belt Assy RR

Static (Grey)Autoliv SLX Bangalore 8

Z-0120AN0062N Seat belt assy Autoliv DI/SLX/Plus Bangalore 8

80383 Kit Seat Belt Armada Autoliv DI Bangalore 80105AK0800N Kit Seat Belt Bolero LX 7

SeaterAutoliv SLE/Plus Bangalore 8

[0028630] Brake Hose Front/29046456 Brakes India Ltd.

All Chennai 200

0802CA0861N Clutch Slave Cylinder/29066693

Brakes India Ltd.

All Chennai 12

[0098396] G P Valve Assy200/29066417

Brakes India Ltd.

All Chennai 25

[0011642] Gasket-Brake Hose/ 64474627

Brakes India Ltd.

All Chennai 6000

0802CA0751N Assy Clutch M192/29066967

Brakes India Ltd.

All Chennai 6

[0011631] Brake Hose Assy Rear/64047924

Brakes India Ltd.

All Chennai 200

[0075613] NEF-Banjo Bolt M 10 X 1/ 29460706

Brakes India Ltd.

All Chennai 500

[0011644] Lockwasher Brake Hose Securing

Brakes India Ltd.

All Chennai 5000

[0028945] Relay Rod / 312602390 Rane Madras Ltd.

Plus Chennai 15

[0028948] Idler Box With Idler Arm Rane Madras Ltd.

Plus Chennai 6

[0028214] Upper Column Assy Rane Madras Ltd.

DI/Plus Chennai 96

Z-1101AA0361N Z-Part Strg Gear Assy Rane DI Chennai 18

Page | 43

Madras Ltd.

[0028946] Tie Rod Assy / 122040160 Rane Madras Ltd.

Plus Chennai 15

[0028942] Steering Gear With Drop Arm

Rane Madras Ltd.

Plus Chennai 24

[0028947] Intermediate Shaft Rane Madras Ltd.

Plus Chennai 5

Z-1102CA0521N Reservoir Sono Koyo SLE/SLX Chennai 16

Z-0401EA0350N Stabilizer Bar Front Tube Invest.

DI Chennai 10

0402EA0450N Hollow Stabilizer Bar Rear Tube Invest.

Plus Chennai 10

1302AA0621N Speedo Cable - 2WD Snap Type (DI)

Pricol Coimb.

All Coimb. 50

13020A0030N Speed Sensor for Bolero 7 Seater

Pricol Coimb.

SLX Coimb. 100

Z-0110AN0230N Z Part Kit Seat Belt With Switch

Rane Trw SLX Chennai 8

Z-0110CN0210N Z Part Seat Belt Assy RR Static (Grey)

Rane Trw SLX Bangalore 16

Z-0120AN0062N Seat belt assy Rane Trw DI/SLE/Plus Bangalore 16

[0080383] Kit Seat Belt Armada Rane Trw DI Bangalore 80105AK0800N Kit Seat Belt Bolero LX 7

SeaterRane Trw SLE/Plus Bangalore 8

0111CAN00230N Regulator Ass.Window RR DR RH

Aditya DI/SLE/Plus Bangalore 15

0111CN0031N Regulator Ass.Window FRT DR LH

Aditya DI/SLE/Plus Bangalore 15

0111CN0021N Regulator Ass.Window FRT DR RH

Aditya DI/SLE/Plus Bangalore 15

0111CAN00220N Regulator Ass.Window RR DR LH

Aditya DI/SLE/Plus Bangalore 15

Z-0111HAN0150N

Z Part Power Window Regulator Frnt-RH

Aditya SLX Bangalore 6

Z-0111HAN0140N

Z Part Power Window Regulator Frnt-LH

Aditya SLX Bangalore 6

Z-0111HAN0160N

Z Part Power Window Regulator rear-RH

Aditya SLX Bangalore 6

Z-0111HAN0170N

Z Part Power Window Regulator rear-RH

Aditya SLX Bangalore 6

0307CB0471N Starter Motor Gear Reduction

Bosch DI/Plus Bangalore 100

9420000319 Duel Fuel Filter Bosch SlE/SLX/Plus Bangalore 6

Page | 44

[0069259] Wiper Motor Link Type Lucas TVS All Chennai 60[0028417] Kit Wiper Linkage Lucas TVS All Chennai 61805AA0441N EGR Controller Delphi

TVSDI Chennai 60

9420000388 Dual Fuel Filter Delphi TVS

DI Chennai 48

Z-0111HAN0150N

Z Part Power Window Regulator Frnt-RH

IFB SLX Bangalore 6

Z-0111HAN0140N

Z Part Power Window Regulator Frnt-LH

IFB SLX Bangalore 6

Z-0111HAN0160N

Z Part Power Window Regulator rear-RH

IFB SLX Bangalore 6

Z-0111HAN0170N

Z Part Power Window Regulator rear-RH

IFB SLX Bangalore 6

0801BA0281N Clutch Driven Plate Assy LUK India SlE/SLX/Plus Bangalore 24

0307CB1191N Starter Motor MDI Lucas TVS SlE/SLX/Plus Pondy 60

Wt. Of Box/Bag (in Kg)

Weight per pieces (in Kg)

Logistical Cost in Rs.(Existing )

Logistical Cost in Rs.(Proposed )

Consumption/month

Consumption/year

Total Logistical Cost in Rs. (existing)

Total Logistical Cost in Rs. (Proposed)

Diff (Rs)

11.3 1.413 11.300 9.181 1200 14400 162720 132210 305107.2 0.900 7.200 5.850 1200 14400 103680 84240 194407.5 0.938 7.500 6.094 2690 32280 242100 196706 45394

12.2 1.525 12.200 9.913 1250 15000 183000 148688 3431311.5 1.438 11.500 9.344 1510 18120 208380 169309 3907123.85 0.119 0.954 0.775 3000 36000 34344 27905 64407.9 0.658 5.267 4.279 3000 36000 189600 154050 3555017 0.680 5.440 4.420 3000 36000 195840 159120 367206.15 0.001 0.008 0.007 3000 36000 295 240 557.1 1.183 9.467 7.692 3000 36000 340800 276900 6390019.45 0.097 0.778 0.632 3000 36000 28008 22757 52529.5 0.019 0.152 0.124 3000 36000 5472 4446 10264.5 0.001 0.007 0.006 3000 36000 259 211 4940 2.667 21.333 17.333 240 2880 61440 49920 11520

18.55 3.092 24.733 20.096 240 2880 71232 57876 13356

336.5 3.505 28.042 22.784 1490 17880 501385 407375 94010

183.8 10.21 81.689 66.372 1250 15000 1225333 995583 229750

Page | 45

122.1 1.473 11.787 9.577 240 2880 33946 27581 6365

218.8 9.117 72.933 59.258 240 2880 210048 170664 39384

6.5 1.300 10.400 8.450 240 2880 29952 24336 5616

8.1 0.506 4.050 3.291 1510 18120 73386 59626 13760

18.55 1.855 14.840 12.058 1250 15000 222600 180863 4173821.3 2.130 17.040 13.845 240 2880 49075 39874 920224.24 0.485 3.878 3.151 3000 36000 139622 113443 2617916.36 0.164 1.309 1.063 1200 14400 18847 15313 3534

11.75 1.469 11.750 9.547 1200 14400 169200 137475 31725

14 0.875 7.000 5.688 1200 14400 100800 81900 18900

14 0.875 7.000 5.688 1800 21600 151200 122850 28350

12.3 1.538 12.300 9.994 1250 15000 184500 149906 3459411.65 1.456 11.650 9.466 550 6600 76890 62473 14417135 9.000 72.000 58.500 1800 21600 1555200 1263600 291600

155 10.333

82.667 67.167 1800 21600 1785600 1450800 334800

155 10.333

82.667 67.167 1800 21600 1785600 1450800 334800

135 9.000 72.000 58.500 1800 21600 1555200 1263600 2916007.5 1.250 10.000 8.125 1200 14400 144000 117000 27000

7.5 1.250 10.000 8.125 1200 14400 144000 117000 27000

6.9 1.150 9.200 7.475 1200 14400 132480 107640 24840

6.9 1.150 9.200 7.475 1200 14400 132480 107640 24840

340 3.400 27.200 22.100 1490 17880 486336 395148 9118811 1.833 14.667 11.917 1750 21000 308000 250250 57750

63 1.050 8.400 6.825 3000 36000 302400 245700 567001.8 0.300 2.400 1.950 3000 36000 86400 70200 1620015 0.250 2.000 1.625 1250 15000 30000 24375 562567 1.396 11.167 9.073 1250 15000 167500 136094 314067.5 1.250 10.000 8.125 1200 14400 144000 117000 27000

7.5 1.250 10.000 8.125 1200 14400 144000 117000 270006.9 1.150 9.200 7.475 1200 14400 132480 107640 24840

6.9 1.150 9.200 7.475 1200 14400 132480 107640 24840

37 1.542 12.333 10.021 1750 21000 259000 210438 48563

222 3.700 29.600 24.050 1750 21000 621600 505050 116550

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15062711 12238452 2824258

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