PROCESS AND OPERATIONS OF
SEABIRD’S MJ LOGISTICS LTD
Company Profile
MJ is a leading player in the 3PL industry. MJ has guided the development of Best Practices specific to
India for giants of industry. MJ was a prominent member of the CII trade delegation to Germany in May
2012, where Mr. Anil Arora spoke alongside Mr. Anand Sharma, Union Cabinet Minister for Commerce,
Industry and Textiles. Mr. Anil Arora is also a founder member of the National Centre for Cold Chain
Development, set up in July 2012 and core member of CII Logistics Advisory Council. MJ is associated
with industry bodies like CII, FICCI, PHDCC, NCCD etc.
Company’s Vendor
Tata Motors
Bosch Limited
Mahle Filters
Suzuki Motorcycles
Phillips
Armstrong World Industries
JK Fenner
ITC
Auto & Light Engineering Conglomerates
Tata Motors – 340,000 sq ft (RWH-SPD)
Kirloskar Brothers Limited – 10,500 sq ft
Bosch India – 28,000 sq ft
Mahle Filters– 25,000 sq ft
JK Fenner- 6,000 sq ft
MJ’s operating Location
Tahliwal, Himachal Pradesh
Chunnikalan,
Punjab
Manesar & Haridwar, Uttarakhand
Pataudi,Haryana
Palwal, Haryana
Mandoli, Delhi
Hassangarh, Haryana
Lucknow, Uttar Pradesh
Akbarpur, Haryana Kasna, Greater Noida, UP
Okhla, Delhi
Santosh Nagar, Maharashtra
Hamidpur & Narela, Delhi
Panvel, Maharashtra
Where I did my internship
Patli, Haryana
Gurgaon,
Haryana Pataudi,
Palwal, Haryana
Haryana
Santosh Nagar,
Maharashtra
Palwal Tata Motor’s Regional warehouse (North Region).
5S Methodology
Japanese words: seiri, seiton, seiso, seiketsu, and shitsuke. These have been translated as
"Sort", "Set in Order", "Shine", "Standardize" and "Sustain".
Kaizen
Kaizen (改善), is the Japanese word for "improvement". In business, kaizen refers to activities
that continuously improve all functions and involve all employees from the CEO to the assembly
line workers. It also applies to processes, such as purchasing and logistics, that cross organizational
boundaries into the supply chain.
[1] It has been applied in healthcare,
[2] Psychotherapy,
[3] life-coaching, government, banking, and other industries, by improving standardized programes
and processes, kaizen aims to eliminate waste (see lean manufacturing). Kaizen was first practiced
in Japanese businesses after the Second World War, influenced in part by American business and
quality-management teachers, and most notably as part of The Toyota Way. It has since spread
throughout the world.
[4] And has been applied to environments outside business and productivity.
New Demarked layout after kaizen
Kanban
Kanban (看板) (signboard or billboard in Japanese) is a scheduling system for lean
manufacturing and just-in-time manufacturing(JIT). Taiichi Ohno, an industrial
engineer at Toyota, developed kanban to improve manufacturing efficiency. Kanban
is one method to achieve JIT. The system takes its name from the cards that track
production within a factory. For many in the automotive sector Kanban is known as
“Toyota name plate system” and as such some other auto makers won’t use the term
Kanban.
Purpose Logistic control system
Developer Taiichi Ohno
Implemented at Toyota
OUR MAIN CLIENT
Our main client is TATA Genuine parts which has 350000 sqr. Feet area that is
the Regional Warehouse in North of TATA India.
Tata motors,
Palwal
Tata motors,
Santosh Nagar
Warehouse Parameters
Warehouse Parameters Details (TML Warehouse)
Total Area Available (Sq. Ft.) Covered Area 1.4 Lakh
9.36 Lakh Yard 1.3 Lakh
F- Category 1545
Total Stock Keeping Units (SKU) – M-Category 3976
33156 Nos. S- Category 21303
Non moving (>1 year) 6332
HDS 13727
Shelving Item 6415
No. of storage locations – TOD (Small & Big) 12625
34334 Mezzanine Item 1000
Ground Locations 400
Other Locations 167
BOPT 3
HOPT 20
Material handling equipment (Nos.) Reach Truck 11
Fork lift 3
Mobile Crane 1
Human Power (Nos.)
-- 580
excluding absenteeism
Warehouse Process Flow
Dispatch move
Material is
QA Performs material to
received with
quality check dispatch dept.
papers
for segregation
Dispatch move Dispatch do
material in QA floor scanning &
Confirm chalaan
area for create loading
scanning slip
Material is DI generated & Load & dispatch
packed pasted the material
Challenges
Damaging of boxes.
QA takes more time.
Sending of material without completion of various operation.
Material found on dispatch area without QA Scanning.
Tearing of Tape & Double Taping.
We are not ready to ship the material in next two hour after first box packed.
Two hours in floor scanning
Bottlenecks
Poor handling of Boxes leads to damaging of Boxes.
Delay in Shift close leads to delay in delivery to customer.
Deviation of process leads to sending of material without completion of various
operation.
QA Checking efficiency is less due to this dispatch department moves the material to
their department to commute on time by skipping the process.
Unable to satisfy the customer inner satisfaction .
A major delay in Shipment process.
Hits the flow of dispatch process due to wastage of time in floor scanning.
Proposed Process
Material is DI scan w.r.t
Strapping of
received with packing &
material
papers weight sticker
Creation of
DI pasting loading slip by
Confirm chalaan
(every half hour) referring QA
scan data
Material is Segregation,
placed in boxes QA check the
Load & dispatch
boxes & tape it
(without tape) the material
How proposed process overcome the current process
challenges & bottle necks
Material handling will be less that will reduce the chances of damaging the box.
QA will be done with packaging so there will be no delay in shifts and dispatch.
Due to the linear process deviation of process will become zero.
If QA scan is being done after every 30 minutes so probability of not scanned box in
the dispatch department will be reduced.
We are taping the box after physical QA check i.e. we are not taping the boxes after
packing therefore taping at once will make the efficient use of taping and at the same
time satisfies the customers mental satisfaction and packed box will leave a positive
impression on customers
We are ready to ship the material in next 30 minutes after first box packed.
Two hours in floor scanning will be saved if we refer the QA scanning data for loading
slip creation.
Advantages of proposed process
Productivity of QA will increase.
QA will perform their task from the starting of the working hours
Competitiveness will arise b/w QA & Packaging
Productivity of Dispatch will increase.
There will be no need to scan the whole floor.
Linear Process.
Less material handling.
Optimum use of time and manpower.
Efficient use of resources.
Probability of claims will be reduced.
Now we will be sure that every box is manually QA checked.
Loading slip can be created by the reference of QA Scanned Data that reduces the work of
DEO and Floor Associate.
Work load will be reduced over the DEOs i.e. there will be less probability to do mistake for
DI printing.
DI will not be printed in bulk thus reducing the probability of printing wrong DI
Challenges and Remedies
Challenges
Data for scanning of QA needs to be updated every half hour.
Movement is more of taking/bringing papers from system for DI creation.
Software hanging in between the working hours of packaging when data is uploaded
for QA scan.
Remedies
We’ll train one person from our dept. to upload Data for QA every half hour.
We already have 2 system on floor and will install 3 system on floor i.e. we will
create DI on those system.
SOP of Security Check in Inbound,Outbound,Visitor
and Suggestions
Eshopbox
Mission Statement
• Is to optimize & drive e-commerce lifecycle for ambitious companies.
Accomplishment
• Till date we have managed 10 million units worth more than INR 1 billion
across 1.5 million SKUs listed on 20 + channels for more than 125 companies
on a warehousing space of 1.5 lakh square feet
Types of e-commerce models
•Business-to-Business (B2B)
•Business-to-Consumer (B2C)
•Consumer-to-Consumer (C2C)
•Consumer-to-Business (C2B)
•Business-to-Administration (B2A)
•Consumer-to-Administration (C2A)
Agenda
Date TIME DETAILS PRESENTER
0:00 – 0:00 Security Check, Unloading of Vehicle, Quality
Name
a.m. Check
0:00 – 0:00
UC & Binning Name
a.m.
0:00 – 0:00
Picking department Name
p.m.
0:00 – 0:00
Packaging Department Name
p.m.
0:00 – 0:00
QA Department Name
p.m.
0:00 – 0:00
Dispatch Department Name
p.m.
Training of SAP and Excel to the
employees according to the training
being provided in the department
Training modules
Inward Departments
Security Check
Unloading of Vehicle
Quality Check by Eshop employees & MJ Team
Unit Consolidation
Binning
Outward Departments
Picking Department
Packaging Department
QA Department
Dispatch Department
Training Model & Methodology
Presentations Coaching
MJ Logistics
Training
Methodology
Role Play Knowledge
Check
Training pattern
Start End Tasks Responsibility
Introduction &
Opening
Pre training test
Module topic &
knowledge check
Tea break
As per
discussion Module topic &
knowledge check
with the
client….
Lunch break
Module Topics &
role play
Module topics &
knowledge check
Post training test
Closing session
Training Aid
Training Place
MJ warehouse Palwal
Training Materials
Safety shoes
Helmets in the Location
Training Module outline
Notepads with Pen
Training tools
Flipcharts
Presentations
SOP of Eshopbox (Inward, Outward, Return
CURRENT FORMAT vs. PROPOSED FORMAT:
For productivity
Current Format for calculating productivity:
In current format for calculating the productivity of
the departments we calculate productivity of each
shift for one day and attain the average of all three
shifts to ascertain the final productivity.
For example
Proposed Format for calculating productivity
In new format we calculate total output by adding the output derived
from all the shifts.
Then we calculate total workers from all the shifts.
As each worker work for 8 hours then it’s must that productivity must be
derived from 8 hours as he is working for 8 hours in a day not whole day.
Therefore total man hours in a day will be 8*total workers.
Productivity will be Total output/Total man hours in a day.
Benchmark should be setup according to new outcomes of the proposed
format
For example :
Challenges faced by the departments:
Low efficiency
High manpower cost
Dependency in manpower
Reason of Low efficiency, high manpower cost,
dependency in manpower in Packaging department:
Software bypass
Wrong MRP & Shipment
Omitting Shipment pasting
Packing excess/short quantity
Challan deletion
Weekly offs, Absenteeism & leave
Untrained manpower
Equipments not ready on same time
SAP hanging
Wrong part packing & pasting wrong weight
Poor stock handling
Unpacking material data not send on daily basis
Not activating red & black table effectively
Packing opened material in the boxes
Not using air bubble poly in the boxes
Forget to place challan copy in the box
Optimum use of time is poor
Reason of Low efficiency, high manpower cost,
dependency in manpower in QA area
Not checking the stock properly
Pasting QA stickers without checking
Omitting QA stickers pasting on boxes
Mistake in stock counting
Not opening the box for QA check
Lethargic workers
Untrained Workers
Low manpower in QA area
Poor stock handling
Optimum use of time is poor
Reason of Low efficiency, high manpower cost,
dependency in manpower in dispatch department
They don’t load all the boxes
Not looking for missing boxes on floor
Not working systematically
Not following rules
S.guard do not count the box during loading
Scanning all the boxes before loading
Poor stock handling
Microsheet not maintain by dispatch team
Optimum use of time is poor
Suggestions
Match tasks to skills
Proper Coordination between senior employees
Settlement of disputes as soon as possible
Record performance of Supervisors, Senior employees
Improving the working environment to decrease labor turnover
More focus should be on automation
Keep a check on the use of resources
Coordinating effectively with TML
Penalty on not achieving the target
Penalty on committing mistakes intentionally
Increase pay for overtime.
Senior employees should report on floor
Ban use of cell phones during working hours
A standard outfit can be introduced for workers & employees
Avoid Low digestive food items & lactic acid food during lunch time
Avoid eating in offices
More space & resources required to carry out operations effectively in these departments
Recruit more flexible workers
Proper channel must be followed by all the departments
Increase the competitiveness throughout the organization
Install CCTVs to keep check on the workers
All seniors must involve in audit issues
Proposal
Investigating on a regular basis of what has been achieved, and what has not
Implementing corrective action where tasks are not achieved, or achieve on time
Checking that resources will be available when needed
Supervising, supporting and motivating the people of the organization to ensure tasks
are undertaken
Adjusting the operational plan if there is a need
Reporting problems to superiors e.g. directors, committee personnel, the Board
Members of the organization
Improve the training process by recruiting trainers from well reputed organization
The development of systems that enable progress of strategies / tasks to be measured
and reported within a work team, and to management
Rapid prototyping
Outcome
Productivity will increase
Competitive cost and quality will improve
Timely delivery will become effective
It will increase the Customer Orders
Flexibility and responsiveness in the production of goods and services will increase
Scope
Challenges
High variation in the working of the workers
Dialect of the workers was difficult to understand
Environment was creating hindrance during the study process of warehouse
Wrong information was given by the employees when I talked about the same
issue to all.
More time was wasted in designing a PPT for my study
Can’t commute to the warehouse on time many times
Time study of Packaging different boxes
Time
Boxes
Four samples of each box has been taken to get mean packing time for
each box
Time taken in MRP generation
05:45.6 60
05:02.4 05:03.6
50
04:19.2 04:22.4
No. of Challans
40
03:36.0 03:01.1
02:52.8 30
56 02:04.5
Time
02:28.0 02:23.6
02:09.6
01:44.3 20
01:26.4 44 27.3
24 10
00:43.2 17 13
10 No. of challans for
00:00.0 0 Mrp generation
Time taken(in
minutes &seconds)
Six samples of MRP generation is taken to get mean time
for mean MRP challans
Time study of QA
Time
No. of Boxes
Four samples of different boxes has been taken to calculate mean time of
quality check of each box.
Time Study of Dispatch loading
of boxes
Number
minutes
Time in
Hrs &
Four Samples of Dispatch loading is taken to get Mean
time for mean boxes.
Overall performance of the Packaging, QA, Dispatch
Note- Performance of per person per hour of June-2018 has been ascertained
according to the new format of productivity .
Remarks- After analyzing the data of the Packaging, QA, Dispatch it can
ascertained that productivity of each department is fluctuating. Sometimes it is
hitting the benchmark and most of the times it is below the benchmark level.
Reason- Reason behind the fluctuation in the performance of the Packaging,
QA, Dispatch is the Vendors of the company. TATA Motors Ltd. should work on
its marketing department to increase its customers and to increase the customer
orders then only it would be possible to hit the benchmark level.