Professional Documents
Culture Documents
Contents
Acknowledgments......................................................................................................................................... 3 Executive Summary....................................................................................................................................... 4 I. Aims and Objectives of the Project ....................................................................................................... 5 Project Charter: ......................................................................................................................................... 5 Project Scope: ........................................................................................................................................... 6 Work breakdown Structure: ..................................................................................................................... 7 II. Background ........................................................................................................................................... 8 Brief overview about Total & Total Oil Pakistan (Pvt) Ltd (TOPL): ............................................................ 8 Products: ............................................................................................................................................... 8 Distribution: .......................................................................................................................................... 9 SAP Warehouse Management System: .............................................................................................. 10 Safety standard certifications of TOPL:............................................................................................... 10 Internship with TOPL: ............................................................................................................................. 10 Tasks assigned ..................................................................................................................................... 11 SOPs studied ....................................................................................................................................... 11 Karachi warehouse visit ...................................................................................................................... 12 Totals safety golden rules: ................................................................................................................. 13 TOPL Customer support center (CSC): ................................................................................................ 14 Visit to Lube Oil Blending Plant (LOBP) of TOPL: ................................................................................ 16 III. IV. V. Findings & Gap Analysis .................................................................................................................. 21 Conclusion ....................................................................................................................................... 26 Recommendations / Suggested improvements.................................................................................. 27
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Implementation and improvement of warehouse activities in reference of applicable SOPs Figure 1: TOPL Product range ....................................................................................................................... 8 Figure 2: TOPL warehouse distribution......................................................................................................... 9 Figure 3: View of TOPL warehouses showing its 3 areas ............................................................................ 12 Figure 4: Cartons stacking on pallet ............................................................................................................ 17 Figure 6: Hand trolley.................................................................................................................................. 18 Figure 6: Placing the loaded pallets on the racks using fork lifter .............................................................. 18 Figure 7: Drums placed horizontally in 3-9 position ................................................................................... 19 Figure 8: Batch no and Mfg date on drum for FIFO implementation ......................................................... 19 Figure 9: OK by QC incharge ....................................................................................................................... 20 Figure 10: Leaked cartons at the dispatch area .......................................................................................... 20 Figure 11: Storage of unused material limiting the accessibility for use of fire extinguisher in case of an emergency .................................................................................................................................................. 21 Figure 12: Drums loaded on broken wooden pallet ................................................................................... 22 Figure 13: Drum placed on the corner side of the pallet ............................................................................ 22 Figure 14: Drum placed on floor at Karachi warehouse ............................................................................. 23 Figure 15: Improper position of carton placed on the drum .................................................................... 23 Figure 16: Drums storage in outdoors ........................................................................................................ 25 Figure 17: Board displayed in LOBP showing minimum PPE requirement ................................................. 26 Figure 18: Safety guard rails ....................................................................................................................... 27 Figure 19: Loading / Unloading of material received from TOPL LOBP ...................................................... 28 Figure 20: Boxes for storing rejection and on-hold products ..................................................................... 29 Figure 21: OK by QC incharge ..................................................................................................................... 29 Figure 22: Leakage found on cartons kept at the dispatch area of LOBP ................................................... 30 Figure 23: On-hold tag ................................................................................................................................ 30 Figure 24: Drums storage at LOBP .............................................................................................................. 31 Figure 25: 5s ................................................................................................................................................ 32 Figure 26: Safety calendar for TOPL warehouses and LOBP ....................................................................... 34 Summer Internship Report Page 2
Acknowledgments
I take immense pleasure in thanking Mr. Qasim Zaheer, CEO, Mr. Sajid Raza, Manager HR and Mr. Jahanzeb Khan, Manager Recruitment and Benefits, for giving me the ample opportunity to work with the team of Total Oil Pakistan (Pvt) Ltd and allowing me to explore this prospect of the industry. I wish to express my deep sense of gratitude to my Internal Guide, my project mentor, Mr. Faisal Laeeq, AM Distribution, for his supervision throughout the internship program and sharing his knowledge with me. His guidance has given me tremendous motivation to work comfortably and his useful suggestions had helped me in completing the project work in time. Additionally, I would also like to thank for the support and cooperation of the TOPL other members who have somehow contributed significantly in my project completion. These include TOPLs warehouse and LOBP team for their help and patience and other people at the head office for sharing their knowledge with me regarding various activities involved in TOPL operations. Finally, yet importantly, I would like to express my heartfelt thanks to my beloved parents for their blessings, my teachers and IBA faculty for the knowledge I gained from them and enhancing in me the ability to work in a competitive corporate environment.
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Executive Summary
This report documents the work done during the summer internship at Total Oil Pakistan (Pvt) Ltd., Karachi under the supervision of Mr. Faisal Laeeq. The report first shall give a brief overview of the companys history and products. Then there is a description of multiple tasks that were performed during the period of internship. The report describes the findings of the project that was assigned to me during the internship period i.e., The implementation and improvement of warehouse activities in reference of applicable SOPs. Report shall also elaborate on the suggestions by me for the future works which can be persuaded as an advancement of the current work. Purpose of this report is to explain what I did and learned during my internship period with the guidance and support of team of Total Oil Pakistan (Pvt) Ltd., Karachi in the Division of Supply chain. The report focuses primarily on the assignments handled, working environment, successes and short comings that I did encounter when handling various tasks assigned by the mentor.
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I.
Project Charter:
PROJECT TITLE COMPANY DIVISION PROJECT MENTOR PRIMARY STAKEHOLDERS
Implementation and Improvement of warehouse activities in reference of applicable SOPs Total Oil Pakistan (PVT) Ltd. Supply chain & Distribution Faisal Laeeq, Assistant Manager Distribution
IN-SCOPE
Warehouse activities with respect to following SOPs Finished product counting, reconciliation and reporting Outgoing products (finished goods) Product return Storage operations for packaged products
OUT-SCOPE / LIMITATIONS
ESTIMATED TIME
6 weeks
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Project Scope:
PRELIMINARY SCOPE
To study the SOPs applicable to warehouse activities for the standard procedure to be followed and analyze the differences in actual operation
OBJECTIVE
Suggesting improvements in the current activities and implement the suggested improvements
TOPL SOPs for: Finished product counting, reconciliation and reporting Outgoing products (finished goods) Product return Storage operations for packaged products Meeting with various concerned persons for collection of information Observations & Recommendation
CONSTRAINTS
Not able to gather identifiable discrepancies for warehouses other than Karachi due to inaccessibility of reach
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Week
1
Task
Understanding of TOPL operations and study of the SOPs related to warehouse activities.
Visits to Karachi warehouse for gap analysis, Discussion with the mentor related to the observations and actual operations being performed at the warehouse
Study of the gap analysis for the activities that are performed at the warehouse with respect to SOPs and improvements that could be made in the current operations of the warehouse Visit to LOBP, TOPL plant at Port Qasim, for analysing the operations and Discussion with the mentor related to the observations and actual operations being performed at the plant Study of the gap analysis for the activities that are performed at the plant with respect to SOPs and improvements that could be made in the current operations of LOBP
Suggesting improvements applicable to warehouse and LOBP, Report preparation and presentation
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II.
Background
Brief overview about Total & Total Oil Pakistan (Pvt) Ltd (TOPL):
Total is actually a merger of Total itself, Total Fina and Elf Aquitaine. It was first named as TotalFinaElf after the merger in 2000, but later it was named as Total in May, 2003. Total, headquartered in France, is the worlds fifth largest oil and gas group. The group has a strong global presence in five continents across the world. Its activities cover the holistic energy spectrum of the petroleum industry encompassing upstream operations (oil and gas exploration, development and production, LNG) and downstream operations (refining, marketing and the trading and shipping of crude oil and petroleum products). Total Oil came in Pakistan 15 years ago with two different joint ventures 1. Total Parco: This deals with fuels (petrol, diesel and kerosene etc.) 2. Atlas group: which deals with Lubricants only Last year, i.e., in 2011, share of Atlas was bought by Total group and now it is named TOPL. Total Oil Pakistan (Pvt) Limited (TOPL) is a subsidiary of TOTAL where TOTAL France holds majority shares of the company. TOPL launched its commercial operation in 1999 and has since then been successfully marketing a complete range of Automotive and Industrial lubricants catering to the diversified needs of customers across various industries and social groups.
Products:
TOPL caters to two business units: (1) Automotive sector & (2) Industrial sector Its product range can be divided into following categories1
Cars
Trucks
Motorcycles/Scooters
Marine
Industrial
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Industrial oils mainly includes Turbine oils, Compressor oils, Gas Engine oils, Marine engine oils, Hydraulic oils, Gear oils, Textile Industry oils, Heat transfer oils, Chill oils, transformer oils & all kind of greases. Our Automotive oils include Quartz Range for gasoline engines & Rubia range for Diesel engines along with a complete line of transmission & brake fluids.
Distribution:
TOPL is involved in primary and secondary distribution around the country. Its products are available and delivered to end users in variety of containers such as 1. Plastic / tin cans packed in corrugated cartons 2. Plastic / steel pails 3. Steel drums
Primary Distribution:
The primary distribution involves distribution of TOPL products from its Lube Oil blending plant (LOBP) to its warehouses and inter-warehouse movements (for temporary storage purpose). TOPL warehouses are spread in the following cities of Pakistan2
https://maps.google.com/
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Secondary Distribution:
This is the distribution against approved customer orders from TOPL warehouses including LOBP warehouse to customers against new order or replacement order. The Lube oil blending plant of TOPL is situated at Port Qasim, Karachi. The companys success is apparent from the fact that in 10 yrs. it is able to gain 10% market share around the country.
Tasks assigned
I was assigned the following tasks during the internship program: Study current SOPs for the standard operating procedures at TOPL warehouses and compare it with the actual operations being done in various warehouses. I was supposed to contact the entire warehouse incharges and visit Karachi warehouse and TOPL plant warehouse to collect information regarding their activities with respect to SOPs. Comparison was in terms of inventory management, product placement, product delivery and rejection control etc. Suggest improvements that could be made in the current warehousing activities.
SOPs studied
I was given the following SOPs for study purpose: 1. Finished product counting, reconciliation and reporting (TALP-SC-013): Covered operation of TALP countrywide warehouses for physical stock reconciliation providing daily files to Supply chain and sales team on pre-described frequency. procedure elaborated the methods and frequency for physical stock reconciliation providing each report.
2. Outgoing products (finished goods) (TALP-SC-004): Operations of TALP countrywide stores and warehouses for the issuance / dispatch of finished products for primary and secondary distribution. 3. Product return (TALP-SC-005): Provided guidelines for product return and its execution in the ERP system. 4. Storage operations for packaged products (TALP-SC-012): Guidelines for good housekeeping of products and practices that are necessary for reasons of safety and others to ensure that lubricants are uncontaminated when applied.
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TOPL
Karachi warehouse is located in the area of S.I.T.E. My first visit to Karachi warehouse was on 12th of June 2012. I was directed by the warehouse incharge there Mr. Rehan Masood who explained about the warehouse layout and operations involved there. The TOPL Karachi warehouse is very well-maintained. Since I have a two years of work experience during which I have visited number of warehouses of different industries, if I compare those warehouses with one of TOPL Karachi warehouse, my opinion would be that the TOPL Karachi warehouse is very well cleaned and properly managed. Comparing the warehouse activities with respect to applicable SOPs, I believe that the warehouse incharge (WHI), the warehouse officer (WHO) and other workforce involved in the activities of warehouse are very well trained and have sufficiently managed to follow the SOP guidelines. TOPL warehouses are divided into following 3 sections:
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My second visit to TOPL Karachi warehouse was on 19th of June. I examined number of process that is being practiced in the warehouse. I studied the following reporting systems of the warehouse: Event reporting and investigation form Safety tool box meeting report Oil spill drill report Fire extinguisher checklist Personal protective equipment (PPE) checklist First aid box checklist Fire and first aid drill report Emergency evacuation drill form Apart from these reports I also went through their forklift logbook and vehicle logbook. The logbooks were used to record the details about date, timings and purpose of journey of the forklift and vehicles. After every 200 hrs of use, forklift maintenance is done. There were total 3 first aid boxes in the warehouse. One was in the office; second one in drums storage area which was named as warehouse 1 and the third was in cartons storage area which they call warehouse 2. Safety toolbox meeting is conducted twice a month. The various PPEs that are used are safety jackets, gloves, mask, goggles, helmet and shoes.
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4. Protective equipment : Do not access installations and perform work without wearing general or task-specific personal protective equipment (PPE.) 5. Work permits : Do not perform work without a valid work permit. 6. Lifting : Do not walk or stand under a load while lifting is taking place. 7. Work on powered systems : Do not perform work without hecking that the power and product source supply has been rendered inoperative. 8. Confined spaces : Do not enter a confined space until isolation has been verified and the atmosphere checked. 9. Excavation work : Do not perform excavation work without a valid work permit comprising a map of all underground hazards. 10. Working at heights : Do not work at heights without a safety harness when there is no collective protective equipment. 11. Change management : Do not make any technical or organizational changes without prior authorization. 12. Simultaneous operations or co-activities : Do not perform any simultaneous operations or co-activities without a prior inspection.
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Oil sector in Pakistan does not benefit from monopolistic competition because it is regulated market. The regulatory authority is OCAC, Oil Company advisory committee. All oil supplying companies purchase base oil from NRL and other refineries. The members of OCAC currently comprise of the countrys five Refineries 1. Pak-Arab Refinery Limited PARCO, 2. National Refinery Limited NRL, 3. Pakistan Refinery Limited PRL, 4. Attock Refinery Limited ARL and 5. Bosicor Pakistan Limited BPL, Ten Oil Marketing Companies 1. Pakistan State Oil Co. Limited PSO, 2. Shell Pakistan Limited SPL, 3. Chevron Pakistan Limited CPL, 4. Attock Petroleum Limited APL, 5. Total Parco Pakistan Limited TPPL, 6. Admore Gas (Pvt) Limited AGPL, 7. Hascombe Storage Limited HSL, 8. Askar Oil Services (Pvt) Limited ASOPL, 9. Overseas Oil Trading Co. (Pvt) Limited OOTCL, 10. Bakri Trading Company Pakistan (Pvt) Limited BTCPL And one Pipeline Transportation Company, Pak-Arab Pipeline Co. Limited PAPCO. Shell is the market leader since its existence is from 60 yrs and there exist more brand loyalty. PSO has the highest spread throughout the country. Mr. Asim Baig, Manager Customer services, gave an overview about the sales forecasting process in the organization. TOPL uses rolling forecast method in forecasting sales. Sales target is given to the sales team by the Managing director of the company based on the target distribution in automotive and industrial sector. The target is actually given by Singapore to TOPL. The sales team then submits their sales demand to CSC who consolidates the forecasts and check for variations or abnormal demand.
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Regional sales manager (RSM) communicates their target to the National sales manager (NSM) with respect to automotive oil and Industrial oil (AO & IO). NSM coordinate with RSM if target and actual sales has large variation. RSM is asked for the reasons about lower sales for the specific product. But margin is also one of the factors under consideration by NSM. If margin meets the required level then the variation is acceptable. TOPL sales are highly impacted by seasonal trends and other market situations because of which some inventory remains unsalable which increase the overheads for e.g. TOPL 70% sales contributions are in automotive division and 30% sales is in industrial division. The volume is always kept more than the actual forecast. HDEO (high diesel engine oil) & MCO (motor cycle oil) are directly impacting TOPL market. 4T MCO is the most saleable product of TOPL because of high demand of bikes in the market specially Honda bike. 4T MCO is recommended for use in all 4-Stroke motorcycles of Honda, Suzuki, Yamaha, and other manufacturers for lubrication of engines. Since TOPL was initially in a joint venture with Atlas, 4T MCO was able to achieve high sales in the market as compared to Quartz.
The additives are imported from Lubrizol, Chevron Oronite and Afton etc., in drums. And for multi grade oils viscosity index modifier (VIM) is used which is manufactured locally. Total is a market leader in MCO (motor cycle oils). My second visit to LOBP was on 3rd July 2012. I had a chance to thoroughly explore all the operations with respect to SOPs. Mr. Tahir Jamil, the warehouse supervisor at LOBP, was there to guide me through different processes and stations involved from packaging to dispatch and he also answered all my queries. Stacking of cartons: In case of 4TMCO, 65 cartons are stacked on one pallet. Each carton contains 12 bottles of 4TMCO. This is a standard stacking for all 0.7 liters of bottles. The stacking on pallet is such that there are total 5 rows and each row contains 13 cartons in total. For balanced weight distribution, gaps are maintained between cartons. The standard stacking for 0.7 liters is shown in the following figure
At each station, the number of pallets that are stacked is counted by the end worker on hourly basis and date is noted by the marker on the top most stacked carton of the pallet for FIFO application. After the pallet is stacked, one of the worker moves the pallet to its desired location using the hand trolley and then using a fork lifter the whole pallet is placed on the racking system as shown in the figure
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Figure 6: Placing the loaded pallets on the racks using fork lifter
If a rejection is found at any station, it is placed separately and the quantity is filled in the production sheet on hourly basis, which is then stored in the TL system at the day end. For leakage testing purpose, after every half an hour, 2 cartons are stacked upside-down on a pallet. This way, at the day end, there is one pallet that is fully stacked with cartons upsidedown at each final station. If no leakage found, the cartons are placed on their respective racks the next day. However if leakage is found, it is kept separate for further inspection. Stacking of drums: After filling of drums and sealing of it bungs at the final station, the drums are placed in a vertical position using hand trolley at a defined location within the plant. When the quantity of drums is verified by the warehouse supervisor, the drums are then placed outside, on the pallets, in such a way that the bungs of the drum should be horizontal to avoid penetration of air & water condensation into the drum. This horizontal position of drum bungs are also called the 3-9 position as shown in the figure below
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3-9 position
3-9 position
FIFO application for inventory management: For FIFO implementation, Green card on the lot indicates those products that are ready to deliver to the customer and orange card indicates the products to be dispatched later on. These card signals can also be seen on the above two figures 1 and 2b. The card system however is not used for drums. For drums traceability, FIFO is implemented by the batch # and manufacturing date printed on the top of the drum as shown in figure 8.
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Quality Inspection: At the dispatch area, the products that are ready to be loaded on the vehicle for dispatch purpose according to given plan, quality is done by the QC incharge both of cartons and of drums. The quality check is done at three areas during the entire process. 1. First the quality of packaging material is done at the initial stage. 2. Quality is also done during the filling of material in their respective packaging. 3. After final packing, when the product is ready to be delivered and is placed on the dispatched area of the warehouse, final inspection is done by the quality incharge. The QC incharge checks the batch #, sealing of the drum and the price printed on the drum. The tick sign on the drum, as shown below, is an OK indication after quality inspection by the QC incharge, as shown in figure 9.
Figure 9: OK by QC incharge
For cartons on the dispatched area, quality is done by visual inspection and if any carton is found leaked; it is not to be dispatched. Figure 10 shows leakage that was found on the cartons kept in the dispatch area.
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Loading capacity of drums and cartons in a vehicle: Loading cartons or drums in the vehicle is not done on the pallets. For a 40 ft container, total 3300 cartons of 4TMCO can be loaded which corresponds to 29500 liters. For drums, total 156 drums can be loaded in a 40 ft container with double stacking. However for safety purpose 136 drums are actually loaded, with 80 on the container floor and 56 placed over the bottom drums. For steel drums, no double stacking is allowed.
III.
Some discrepancies that were found, after comparing with SOP guidelines, are explained here briefly There were two handling equipment that were being used in the warehouse for loading / unloading purpose. For heavy loads fork lifter was used and for lighter loads hydraulic trolley was available. But I did not find any instruction sheet which actually defined when to use which type of handling equipment as described in SOP TALP-SC-012. The SOP TALP-SC-012 describes that there should be a freely accessible area for fire equipment with ground marking prohibiting the storage around the equipment. But in the cartons storage area there was found piles of unused material limiting the accessibility of the fire extinguisher in case of an emergency.
Figure 11: Storage of unused material limiting the accessibility for use of fire extinguisher in case of an emergency
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Some of the wooden pallets that were used for holding the cartons and drums were not strong enough and some were even broken from the corners.
According to SOP TALP-SC-012 guideline, the loads on pallet must be balanced and must not protrude beyond the pallet. A single drum should be placed in the middle and not on the corner of pallet. One of the drum was found loaded over the corner of pallet as shown in the figure 13.
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Despite of empty space on the pallets, one of the drum was found kept on the floor in the drums storage area, as shown in the figure 14.
When a vehicle came from LOBP to the warehouse loaded with drums and cartons, one of the cartons was found to be improperly positioned on the drum as shown in the figure 15.
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When we visited the Karachi warehouse at S.I.T.E, we had a discussion with one of the transport contractor of the company who is responsible for the movement of products from TOPL warehouses to its respective customers. We found out following issues: No written instructions were provided to the contractors & drivers related to loading / unloading, and safety measures The drivers should have been provided with the identification card by the contractor on the basis of which the vehicle should be allowed to enter the warehouse. No uniforms The first aid box and fire extinguisher in the vehicle were very dusty. The contractor claimed that they were not able to fulfill some of the demands because of late payment to them by the company.
The visit to TOPL plant gave all the internees and opportunity to observe various operations there. Some of the discrepancies that were observed in the LOBP warehouse were Many of the workforces were without the safety cap.
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Correct position
Incorrect position
For FIFO implementation on cartons, the proper procedure was not being followed. Instead of following the batch number, the incharge was following the date that written on carton with marker by the end-worker. This may lead to inaccuracy of FIFO application. According to the SOP, while loading is being done on the vehicle for movement to respective warehouses, there should also be a security supervisor there. But when products were being loaded in the vehicle at LOBP, there was not security guard present at that time for verification. Figure 17 shows the minimum PPE requirement at different area of activities for the LOBP. According to this requirement, the workforce is to wear safety helmets at worksite in general. But few of the operators were found to be working without safety helmet.
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IV.
Conclusion
Having worked with the team of Total Oil Pakistan (Pvt) Ltd has given me an insight of the operations of an oil company in Pakistan. TOPL is an organization with highly motivated, dedicated, hardworking, energetic and enthusiastic team. The environment here is very friendly and the teams cooperation and support has helped me in the accomplishment of my project objective. I found the team of TOPL warehouse and LOBP highly keen in making sure that the standard procedure is followed as defined in respective SOPs and although the operations at TOPL warehouse and LOBP did follow the procedures defined in SOPs to some extent, but still there were some minor discrepancies that were observed by me which I have already explained above under Gap Analysis. Since there is always some room for improvement, I have described in the next section some suggestions for the organization that can enhance its current operations. These
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recommendations are from the learning of my past work experience with Auvitronics Limited, vendors of Indus Motor Company, where I had worked as an Assistant Manager Production and was looking after one of the assembly departments and also from my research work and findings.
V.
For e.g., figure 19 shows a view of the Karachi warehouse at S.I.T.E. For safety purpose the floor where yellow coloring is done to create a path for pedestrian, a safety guard-rail should be installed there instead.
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Similar procedure can be adapted for LOBP, for the area where the vehicle is loaded / unloaded.
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At each station, a yellow color box can be used for parts on-hold and a red color box can be used for rejected parts. This can minimize the chance of mistake and would also create neatness around the working vicinity. Sample on-hold and rejection box is shown in the figure below
On-hold tag by QC incharge on the lot of rejected cartons kept on the dispatch area:
For drums, after the inspection is done by the QC incharge at the dispatch area, he puts a tick mark on it which indicates that the drum is ready to dispatch.
However for cartons, if any rejection is found by the QC incharge for the lot kept in dispatch area, there is no indication by the QC incharge which would show that the lot is not to be dispatched and is on-hold for further inspection.
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For e.g. there was a batch of cartons in the dispatch area for which the leakage was found as shown in the figure below. But no sign showed that the cartons are not to be dispatched. This may create a human error, and the worker may mistakenly load the carton on the vehicle.
Figure 22: Leakage found on cartons kept at the dispatch area of LOBP
To eliminate this mishap, I would suggest that once any leakage is found; there should be an on-hold tag of yellow color attached with the lot, signed by the QC incharge, indicating that the lot is to be further inspected and is not to be dispatched. Figure 23 shows an on hold tag that could be used.
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Similar procedure can be adopted for respective warehouses for theproduct dentification.
Implementation of 5s system:
5S is the name of a workplace organization method that uses a list of five Japanese words: 1. Seiri (sort) 2. Seiton (straighten) 3. Seiso (shine) 4. Seiketsu (standardize) and 5. Shitsuke (sustain)
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The 5Ss characterize a continuous and never-ending methodology for creating and maintaining an organized, clean, and safe high-performance environment. 5S has the focus of waste reduction. The methodology is often characterized by a series of activities focused on making sources of errors, defects and injuries visible by the users of a particular work environment. The idea of the 5S is to run through each S in a systematic manner, spending a large portion of the time planning and noting what waste is. This requires that the workers need to know the importance of 5S implementation and the demonstration of various 5s applications shown practically and through videos which will show them that how 5S can bring a change in the organization environment.
Figure 24 briefly describes the need for 5s
Figure 25: 5s
Objective of 5S implementation The successful implementation of 5S requires that everyone understand why it is being used and what the expected results are. The most obvious benefit from implementation of 5s is that the most frustrating form of lost time in any plant due to disorganized materials / items in the warehouse is eliminated. A key aspect is that the often-needed items are stored in the most accessible location and correct adoption of the standardization approach means that they are returned to the correct location after use.
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The next aim is Quality. The degree of impact of dirt in a manufacturing environment, obviously, varies with the nature of the product and its process but there are few, if any, areas where dirt is welcome. In other cases dirt can have a serious impact on product performance either directly or indirectly, perhaps through compromising the integrity of test processes. Of course, 5S does more than address dirt; an inappropriate layout can result, for example, in product damaged through excessive movement or through the use of tooling other than that defined as the standard. A Standard Operating Procedure for tool certification is much easier to achieve if the tool to be certified is always in a clearly-marked location. Another goal is improved Health & Safety. Clear pathways between workbenches and storage racks can minimize accidents, as can properly-swept floors. As with Quality, a well-organized, clean and tidy facility lends itself more readily to standard practice. Improving the layout of the facility merges with the concept of visual management; if workers can see the status of plant and of work in the facility, thus removing the need for complex tracking and communication systems, then benefits will accrue. 5S can also be a valuable sales tool when potential customers visit; a well-organized, clean and tidy facility sends a message of a professional and well-organized supplier.
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