Process Optimization by Reducing Non-Value-Added activities in

Supply Chain Management of Amaron Batteries at Kota

Marketing

Summer Internship Project Report submitted in partial fulfillment of the

requirements for the degree of

Master of Business Administration

By

B Amrutha Raj

REGISTER NUMBER
2027561

Under the Guidance of

Prof V N Lakshmi Prasad

School of Business and Management

CHRIST (Deemed to be) University, Bangalore

JULY 2021
 Declaration

I hereby declare that the Summer Internship Project report entitled "Process optimization of
the supply chain" at Kota Marketing, Hyderabad, has been undertaken by me for the award of
Master of Business Administration. I have completed this study under the guidance of Prof V
N Lakshmi Prasad.

I also declare that this Summer Internship Project report has not been submitted for the award
of any Degree, Diploma, Associateship, Fellowship, or any other title, in CHRIST (Deemed to
be University) or in any other university.

Place: Bengaluru ___________________

Date: 15 – 07 -2021 B Amrutha Raj

(2027561)
 Certificate
This is to certify that the Summer Internship Project report submitted by B Amrutha Raj on the
title "Process optimization of the supply chain" at Kota Marketing, Hyderabad is a record of
summer internship project work done by him during the academic year 2020-21 under my
guidance and supervision in partial fulfillment of Master of Business Administration.

Place: Bengaluru ____________________

Date: 15 - 07 - 2021 Prof V N Lakshmi Prasad.

School of Business and Management

CHRIST (Deemed to be University)
Bengaluru
 Acknowledgment
I am indebted to many people who helped me accomplish this Internship.

First, I thank the Vice-Chancellor Dr. Fr Abraham V M, CHRIST (Deemed to be

University) for allowing me to do my project.

I thank Dr. Jain Mathew, Dean, Dr. Georgy Kurien, Associate Dean (Central Campus),
Prof. Sirish V, Head of the Department (Central campus), and Dr. Ramakrishnan N, Head-
Lean Operations and Systems, School of Business and Management, CHRIST (Deemed to be
University) for their kind support.

I thank Prof V N Lakshmi Prasad for his support and guidance during my internship. I
remember him with much gratitude for his patience and motivation, but for which I could not
have submitted this work.

I wish to express my sincere thanks to my corporate mentor, Kota Ram Mohan, Owner,
Kota Marketing, Hyderabad for allowing me to work under his guidance and complete my
internship.

I thank my parents for their blessings and constant support, without which this
internship project would not have seen the light of day.

_____________________
B Amrutha Raj.
(2027561)
INTERNSHIP CERTIFICATE FROM ORGANIZATION
 Page
Chapter TABLE OF CONTENTS
No.
No.
1 Introduction 1
2 Industry and Company Profile 4
3 Project Design and Methodology 11
4 Data Analysis & Interpretation 21
5 Findings, Conclusion, Recommendations & Learnings 25
References 31
Table List of Table Page no.
No.
2.1 Turnover 8
3.1 BPM 13
4.1 Current state VSM CT 24
5.1 Future state VSM CT 28
Fig No. List of Figures Page no.
2.1 Logo 7
2.2 Amaron Pro 9
2.3 Amaon Harvest 10
2.4 Amaron Inverter battery 10
3.1 5S 18
4.1 Current state VSM 22
5.1 Future state VSM 28
 Executive Summary
This report deals with the process optimization in thesupply chain management and ware house
management. Where the supply chain is a network of a company involved in the various types
of processes and activities that give value in the form of services and products, which are
provided to the end consumer via downstream links and upstream. And warehouse
management is the process, control, and optimization of warehouse operations.

The service industry is a sector of the economy that produces services rather than tangible
goods. Developed countries have an economy that is dominated by services. The majority of
people in developing countries work in primary industries like agriculture and mining.

Kota Marketing is started by Kota Ram Mohan where it is started by Titan distribution in
Hyderabad and secunderabad. Now Company has expanded by having Dulux, Amaron
distribution in twin cities and Whirlpool distribution for major part of Telangana state.
Distribution of Amaron Batteries, in the name of Kota marketing. He has expanded his business
from 15Cr turnover to 110Cr turnover till 2020.

This report also consist of different lean tools and technics such as VSM, TIMWOOD and 5S.

Value stream map is a way to visualize the steps by step requirements to transform a customer
request into a product or service, or we can say a product's production path from the supplier
of raw material to the customer.

A current State VSM is cleared with all wastes and non-value added activities and made a
future state VSM with reduced cycle time by 10.5mins.
 CHAPTER 1

INTRODUCTION

1
 INTRODUCTION

1.1 Supply Chain Management

The supply chain is a network of a company involved in the various types of processes and activities
that give value in the form of services and products, which are provided to the end consumer via
downstream links (distribution) and upstream (supply).

We can distinguish levels of supply chain complexity into three:

a. A direct supply chain comprises a supplier, a corporation, a customer, and all the stakeholders
involved in the downstream flow and upstream of information, funds, products, and services.
b. A supply chain collaborates independent entities that work together to manufacture a product
and get it to the end-user—raw material and component makers, product assemblers,
wholesalers, retailer merchants, and transportation companies are all part of the supply chain.
c. The entities participating in all upstream and downstream flows of products, services, funds,
and information from the ultimate supplier to the ultimate client make up an ultimate supply
chain. A third-party financial provider, for example, may provide financing, assume some risk,
and provide financial advice; a third-party logistics provider may perform logistics between two
companies, and a market research firm may provide information about the ultimate customer to
a company further up the supply chain.

1.2 Warehouse Management

From the time product is received into a warehouse until it is transferred, sold, or consumed,
warehouse management is the process, control, and optimization of warehouse operations.

These operations revolve around receiving and shipping in the broadest sense.

 Receiving entails taking inventory, identifying it, checking it, and storing it.
 Picking, packaging, labeling, weighing, and delivering products from the warehouse to the
consumer are all examples of shipping processes.

Poorly managed warehouses face a slew of issues, all of which have an influence on profitability:
2
• Employees and teams that are disjointed

• Inventory and equipment that aren't easily accessible

• Processes that are both counterintuitive and redundant

• Layouts that are rigid and constrained, reducing productivity

This isn't good for business. It becomes nearly hard to serve consumers, vendors, and your own
Company if warehouse operations aren't in order.

3
 CHAPTER 2

PART- A
INDUSTRY PROFILE

4
2.A.1 Introduction

The service industry is a sector of the economy that produces services rather than tangible goods. All
economic activity is divided into two major categories by economists: goods and services.
Agriculture, mining, manufacturing, and building are examples of goods-producing businesses; each
produces a tangible object. Banking, communications, wholesale and retail trade, all professional
services such as engineering, computer software development, and medicine, non-profit economic
activity, all consumer services, and all government services, including defense and administration of
justice, are all examples of service industries. Developed countries have an economy that is
dominated by services. The majority of people in developing countries work in primary industries like
agriculture and mining.

The services industry not only accounts for the majority of India's GDP, but it also attracts significant
foreign investment, contributes significantly to export, and employs a large number of people. Trade,
hotel and restaurant services, transportation, storage and communication, financial, insurance, real
estate, business services, community, social, and personal services, and construction services are all
part of India's services industry.

2.A.2 Market Size

India's services sector is a major contributor to the country's economic growth. At current prices, the
sector generated 55.39 percent of India's Gross Value Added in FY20#. GVA at current prices is
expected to be Rs. 42.80 lakh crore (US$ 580.80 billion) in the second quarter of 2020-21, down from
Rs. 44.66 lakh crore (US$ 633.57 billion) in the second quarter of 2019-20, indicating a 4.2 percent
drop. According to the RBI, service exports totaled US$ 17.54 billion in February 2021, while
imports totaled US$ 10.61 billion.

The Nikkei India Services Purchasing Managers' Index (PMI) fell from 55.3 in February 2021 to 54.6
in March 2021.
5
 CHAPTER 2

PART-B
COMPANY PROFILE

6
2.B.1 COMPANY INTRODUCTION

Fig 2.1
Kota marketing has started by Mr. Kota Ram Mohan in the year 2005. His father, Mr. Kota
Sanjivarayudu, had an oil distribution in Mahabubnagar.

In childhood, he spent much time with his father and his business, which made him come into the
distribution industry. He made estimated the future scope on different sectors and decided to start the
distribution of batteries. In the year 2005, he left his hometown and started a new business,
Distribution of Amaron Batteries, in the name of Kota marketing. He has expanded his business from
15Cr turnover to 110Cr turnover till 2020.

He expanded his single branch, Secunderabad, to 3 branches, A.S.Rao Nagar, L.B.Nagar. Now some
of the different products under his umbrella are Titan watches, Dulux Paints, and Whirlpool.

Coming to the Amaron distribution, all the financial dealings are done from the main branch,
Secunderabad. All other works are done at the specific branches, and information is sent to the main
branch by the end of the day.

Different departments of the Company are, Marketing, Billing, Logistics, Procurement, and finance.
They all are headed by the branch manager, who is supervised by the Owner. The total number of
employees under Kota Marketing is 34 for Amaron Distribution.

7
Turnovers

Branch Amount
Secunderabad 28Cr
L.B.Nagar 65Cr
A.S.Rao 17cr
Table 2.1

2.B.2 Manufacture Company

AMARA RAJA BATTERIES LIMITED

Amaron Batteries India is a company based in India.

The philosophy at Amara Raja has always been "to transform our circles of influence and improve the
quality of life by developing institutions that enable better access to better opportunities, goods, and
services to more people...all the time."

Amara Raja, a USD565 million conglomerate, is known for its unique engineering and ground-
breaking research and design. From design to production to sales and service, every stage of the
process is centered on producing high-quality, customer-centric goods. We also bring you the best
from around the world thanks to partnerships and information-sharing agreements with global
technology leaders.

The major manufacturer of standby valve-regulated lead-acid (VRLA) batteries in the Indian Ocean
Rim region is Amara Raja Batteries Limited (ARBL), which works in partnership with Johnson
Controls Inc. of the United States. We offer a broad choice of India's most powerful zero-maintenance
batteries to the discriminating Indian customer. Amaron batteries combine the most recent scientific
advancements in captive power and are comparable to batteries manufactured and sold everywhere on
the planet. It has risen to a position of prominence in just seven years, thanks to an unwavering focus
on innovative engineering, a deep dedication to research and design, and the pledge to deliver
customer-focused solutions.

8
Product profile:

Amaron Automotive Batteries

• Car Battery

• Bike Battery

• Inverter Battery

• Truck Battery

• vehicle Batteries

Fig 2.2

a) Amaron Pro 50B20L

9
 Fig 2.3
b) Amaron Harvest TRA600H29R

Fig 2.4

c) Amaron Inventor Battery

10
 CHAPTER 3
PROJECT/ PROCESS DESIGN AND
METHODOLOGY

11
 CHAPTER 3
PROJECT/ PROCESS DESIGN AND METHODOLOGY

3.1 OBJECTIVE OF STUDY:

• To optimize the process in the supply chain.

• Removal of non-value-added activities.
• To remove waste from the process.
• Improve customer satisfaction & employee productivity.

3.2 PROCESS DESIGN

Starting from the raise of PO to the receipt entries, there are few steps involved in the process.

• Purchase Order(PO): As per the current inventory and the market requirements, orders are raised.
There is an option called inventory in the tally software, where one can get to know the current
inventory level and the products that need to be ordered. By cross verifying the requirements, one can
add or delete the products in that area. As soon as the order is ready, then the Purchase order is raised.
This order document is mailed to the supplier.

• Invoice Receiving: After raising the PO, KOTA Marketing will get the mail from Amaron
Company, where the invoice for the raised PO will be available.

• Invoice Entry: A hard copy of the invoice is attached to it along with the products. This hard copy
is cross-verified by the invoice, which was mailed and is entered in the tally. Thereby the inventory
level is raised as per the invoice.

• Ordering Process: During the ordering process, as per the marketing agents, the computer operator
will enter the party details and raise the order to that particular party. Billing is parted as per the
products division, like 2-wheeler, 4-wheeler, and inverter batteries. So as per the customer
requirements, the number of bills is decided.

12
• Receipt Entry: There is an option that is outstanding in tally. Where outstandings are known in this
area. Here customers are supposed to pay before 12-20 days as per the product categories. A receipt is
raised based on the payments. A hard copy of the token is given to the party. During the receipt
raising, the receipt number on the hard copy will be taken as a reference number during the tally entry
process.

Procurement
PO

Suppliers
Invoice

Inventory
Invoice Billing Invoice
Entry

Marketing
Order

Dispatch
Dispatch

Customers
Service Order

Service
Pit Stop

Table 3.1

13
 Service Department:

• Each location has a pit stop where clients can come in and exchange or pick up a new
battery if it is still under warranty or guaranty.

• The initial step in this service department is for the consumer to dial Amaron toll-free
number and describe the problem and the area to which they belong. Customers are instructed
to wait for a call from the service department. This information will be forwarded to a nearby
branch, and that branch service department will contact the consumer and arrive at their
doorstep.

• They will give a DC(Delivery Challen) to the customer and return the battery after one
to two days, depending on the requirement, after verifying the battery position and warranty
period.

• If the battery is within the warranty period and can be recharged and handed to the
customer, they will give a DC to the customer and return the battery after one to two days, as
per the requirement. If recharging is not possible, they will be given a new battery and DC and
SCF.

• If the battery is no longer under warranty, the customer will be required to purchase a
replacement battery because the warranty term has expired.

• Following that, the DC and SCFs are sent to the computer operators, who will enter them
into tally software so that the scrap can be sent to the Amaron firm for a claim.

14
3.3 METHODOLOGY

The process methodology started with the relevant information collection about the current inventory
levels and the current ordering for the replenishment of materials. Interaction with stockholders while
the study is being conducted, is the methodology adopted in this SIP. Virtual visits to the entire office,
warehouse, and supplier unit were included in the observation. VSM method is proposed in order to
shorten lead time. The first step is to select the potential products by applying product-quantity analysis
(P-Q analysis). It classifies all products into process groups. Then, the product groups are prioritized
regarding their quantities. The product group having the highest quantity is ranked 1st of all the product
groups as potential. The selected product group is analyzed further for improvements in the current-
state map in the next step. The second step is to map the current state of a value stream. The current-
state map aims to explore the value and non-value-added activities. These activities are evaluated in
terms of cycle time (CT), change over time (CO), available production time (AT), uptime (UT), and
takt time. The evaluated performances of a value stream are analyzed further to generate ideas for
improvements in the current-state map. The improvement ideas can be triggered by other lean tools
such as elimination, combination, rearrangement, and/or simplification (ECRS), SMED, standard work,
visual control, etc

3.3.1 VALUE STREAM MAPPING:

Value stream map is a way to visualize the steps by step requirements to transform a customer
request into a product or service, or we can say a product's production path from the supplier of raw
material to the customer. It helps identify areas in the process that can be improved to achieve faster
and better outcomes for lower cost in a safer work environment and non-value-adding steps that
should be eliminated.

The value stream map is divided into three segments,

 Production or process flow

In this section, the flow of the process is drawn (flowchart) from left to right. If there are parallel
tasks or subtasks, they should also be pulled beneath the main flow. Drawing this way, it is easier to

15
 tell apart the significant functions and minor ones that occur time and time again throughout the
whole process, from the little steps.

 Information or communication flow

In this section, all the communication, both informal and formal, that occurs within the value stream
is conveyed at the top portion of the map. There's no standardized flow of communication as it can
flow in any direction.

 Timelines and travel distances

Timelines appear at the bottom of the map. This set of lines says the time-related data measured in the
process improvement. The top line indicates the process lead time, and the bottom line indicates the
total cycle time. The other line, placed at the bottom of the map, indicates the travel distance of the
product or the people moving through the process

By using value stream mapping, we can find out

1. Value-added
2. Necessity non-value-added
3. Non-value-added

For value-added, there should be certain conditions such as the transformation of the
product, customer requirement.
For Necessity non-value-added, it is necessary but a non-value-added activity in the process.
For Non Value added, the unnecessary wastages happening around and non-value-adding to
the processes.

3.3.1.1 WHY VSM?

 It helps in identifying the value added and non-value added components of a project.
 It's a useful tool for improving the processes involved in a project
 It can be used to eliminate waste, add value to each and every process and establish flow.
 It takes into account each and every process involved. It takes into account the entire
organization, not just individual departments

16
  It's an inexpensive tool – a pen and paper are all that one needs.

3.3.1.2 STEPS INVOLVED IN VSM ARE:

1. Choose a product family
2. Gather data to draw Current State Diagram
3. Draw Current State Diagram
4. Analyze the Current State Diagram
5. Design the Future State Diagram
6. Create Deployment Plan.

Benefits:

 A common language for anyone to observe and examine the value stream.
 It provides a holistic view of the entire manufacturing process required to deliver a
product or service to a customer.
 Help identify inefficiencies in the process at one glance.
 It helps to deepen employees' understanding of the work system.
 A powerful and useful tool to improve manufacturing production workflows.

3.3.2. 5S methodology

5S is a system for organizing a place so work can be performed effectively, efficiently, and safely. This
system focuses on placing everything where it belongs and keeping the workplace neat and clean, which
makes it easier for employees to do their jobs without risking injury or wasting time. The 5S concept
might sound a bit abstract, but in reality, it's a hands-on tool that everyone in the place can be a part of.

5S involves assessing everything present in a place, organizing things logically, removing what's
unnecessary, performing tasks, and keeping the cycle going.

17
The term 5S means:

 Seiri - Sort
 Seiton - Set in Order
 Seiso - Shine
 Seiketsu - Standardize
 Shitsuke - Sustain

Fig 3.1

a) Sort

The first step of 5S, Sort, involves going through all the materials, equipment, tools, furniture, etc. in a
workplace to determine what is required and what can be removed. A workspace should be without
unnecessary items or items used infrequently. These things can come in the way or take up more space.

b) Set in Order

Once the mess is gone, it’s easier to see what’s present. Now workgroups can plan their strategies for
a set for the remaining items. During this phase, employees should know what arrangements are most
logical and useful in doing the task.

c) Shine

The Shine stage of 5S focuses on neatness and cleaning up the work area, which means sweeping,
dusting, mopping, wiping down surfaces, putting materials and tools and away, etc. it also involves
performing regular maintenance on machinery and equipment. Planning for maintenance ahead of time
and prevent breakdowns. That means less wasted time and no work stoppages.

d) Standardize

This step makes 5S different from the typical cleaning project. In this step, it systematizes everything
that just happened and turns one-time play into habits for employees. Standardize assigns tasks, creates
schedules, and posts instructions, so these activities become routines. It makes standardize orderliness
doesn’t fall by the wayside.

e) Sustain

18
Sustain refers to the process of not only keeping 5S running smoothly but also of keeping everyone in
the Company involved. Managers, employees need to participate on the manufacturing floor,
warehouse, and office. This makes 5S a long-term program, not just an event or short-term project.

Benefits of 5S

1. Reduced costs

2. Higher quality

3. Increased productivity

4. Greater employee satisfaction

5. A safer work environment

A messy, cluttered space can lead to slowdowns in process, mistakes, and even accidents, all
parameters which interrupt operations and negatively impact a company. This is where 5S can help
eliminate these risks, which effectively helped during a changeover process.
3.3.3 TIMWOOD
It’s not easy to remember the seven industrial wastes, but the acronym TIMWOOD makes it
simple. Each letter in the acronym stands for one of the following seven wastes:
 Transport: Unnecessary product, equipment, and personnel movement. Time is
squandered, and materials are more likely to be destroyed as a result.
 Inventory: Opinions differ on whether excessive inventory should be included in these
wastes because inventory (no matter how much of it) is considered an asset. Too much
inventory, on the other hand, can result in longer lead times, damaged or defective items,
and inefficient capital allocation. Trying to keep excessive inventory in check necessitates

19
 limiting available storage space and consuming additional resources only to keep track of
it.
 Movement/Motion: Unnecessary, risky, and difficult movements are inefficient; they can
harm employees, damage equipment, or result in product faults.
 Waiting & Delays: It’s easy to overlook waiting as a waste of time. Time lost as a result
of a productivity slowdown is considered a waste. This typically occurs when workers
must wait for materials or when production is delayed due to unplanned equipment repair.
 Overproduction: Did you know that excessive production can result in additional sorts
of Waste while also masking the need for improvement? When output outpaces demand,
facilities are left with too much inventory to keep and manage.
 Over-processing: It is a term used to describe a product or service that has more features
or capabilities than the firm needs or expects. It is critical for organizations to understand
what their customers expect from their products and to eliminate any jobs or processes
that aren’t useful or necessary to meet those expectations.
 Defects: These are widely regarded as the worst of the seven wastes. These items must be
destroyed or redone if they do not meet corporate requirements, increasing costs to the
operation while not adding value to the client.

20
 CHAPTER 4

DATA ANALYSIS &

INTERPRETATION / PROCESS
STUDY

21
 CHAPTER 4
DATA ANALYSIS & INTERPRETATION/ PROCESS STUDY

4.1 Data entries:

4.1.1 Current State VSM

Fig 4.1

 As soon as the inventory goes down, Company starts raising of PO to the Suppliers.
 Here in PO (purchase order) procurement department will list all items which are
required, and after the approval of the branch manager, PO will be mailed to the
Company.
 From suppliers, an invoice copy is mailed, and stock will be received in 2-3 days.
 A hard copy of the invoice is attached with the stock for the filling purpose. After the
verification of the stock with the invoice, the invoice is added in tally with the invoice
number and date as specified in the invoice.
 As soon as the invoice is added, the stock position in the inventory will be reflected
and raised.
 The order receiving process takes 10mins per customer and 0.5mins to transfer the
order to the billing department. Now orders which are received from the marketing
agents will be billed.
 This billing process will be done after entry of the order into a register which takes
3mins, and collection of the products from the rack position. Once the products are

22
 collected, they are scanned to raise the bill. The bar code which is attached to the
products is scanned in the above process. This process takes 10mins per customer.
 After the verification of the products with the bill, which takes 2mins, they are handed
to the logistics department who dispatches to respective customers.
 Each and every day, there will be 20-25 bills, and the whole process gets delayed just
because each and every product is entered after the scanning process is done. Where
an employee is needed to get products, one is needed to scan, and a computer operator
is required to make a single bill.
 All the details are sent to the head office by the EOD.
 As per the invoice, payments to the suppliers are made by the head office before the
stipulated period.
 After 12-30 days, payments from the customers are collected by the marketing agents,
and a receipt hard copy is handed to them as proof.
 After receiving the payments, receipts are entered in the tally by using the receipt
number as a referral number, which reflects in the outstanding bills of that particular
customer.
 Payments that are received by the customers are deposited into the Company’s
account.

Calculations:

 Total available time = 7hrs per day

 No. of dispatches per day = 25
 Available time per dispatch = (7*60)/25

= 16.8 mins

23
 Process Cycle Time

Order receiving 10.5 mins

And sent to the computer operator

Received Order entry in the register 3 mins

Raise of a bill through Tally 10 mins

Verification 2 mins

Total CT 25.5mins

Table 4.1

Here in the current state VSM, total cycle time is 25.5mins, where the above table says about
the division of the cycle time per process.

24
 CHAPTER 5

FINDINGS, CONCLUSION,
RECOMMENDATIONS &
LEARNINGS

25
 CHAPTER 5
FINDINGS, CONCLUSION, RECOMMENDATIONS &
LEARNINGS

5.1 Findings

• The Company follows a mix of both centralized and decentralized supply chain
processes. Apart from payments to the suppliers, all are decentralized. As the dealings
with suppliers involve negotiation, high skilled employees are recruited in the head
offices, and all such dealings are done from the head office.

• They are using outdated technology in their process, such as an entry in a register,
manual collection of orders.

• As double Entries takes more time and effort of employees, this delays the process,
which inter decreases the productivity of the employees.

• Without any software, chances of mismatching the order and re-verification of the
order may take place.

• Different Waste in the process is identified by TIMWOOD.

Implementation of TIMWOOD in the process.

 Transport: Marketing agents will go to collect orders in the morning and collection of
amounts will be done in the evening. So, it’s better to collect the amount in the morning
time itself rather than going again. During the transportation period, there are chances of
breakage of batters as they are heavyweight.
 Inventory: Inventory is not placed in a specific order like based on moving or non-moving,
weight-based.
 Motion: Marketing agents will collect the orders and will send a photocopy to the billing
department. Here they will make an entry in the register and then start billing. So, here
there is a huge motion loss.
 Waiting: The billing department should wait till they get orders to form agents; agents will
send after collecting few orders. The billing department should wait till the products are
removed from the rack position as they use bar code scanning

26
 Over process: Kota Marketing is using a bar code scanner for complete scanning boxes,
rather than they can use a QR code scanner for such wholesale dealers.
 Overproduction: In Kota marketing, they generate huge unwanted costs or expenses
during the process.
 Over process: Using a manual recording of orders which they receive from marketing
agents
 Defects: Whole loading or unloading, if the battery fell down, then it can’t be used and
should send to the Company as a breakage item. This will be claimed after sending the
product to Company and verified by them.

5.2 Conclusion

• Kota marketing has a 110Cr turnover on Amaron batteries Marketing and distribution
in Hyderabad.

• But by using old way of procurement and dispatching, they are using more manpower
and less involvement of technology, Software.

• Can make them less reliable, irrelevant and the productivity of the employees will be
decreased.

• As seen by reducing Cycle time, introducing technology, and removing the Waste
can give a boost to the Company.

5.3 Analysis

This future state map is built on the basis of providing a mobile app to the marketing
department, where the bills are directly generated by the marketing agents at the customer’s
doorstep. Out-of-stock products are saved under the customer and will be reflected in the
upcoming orders.

27
Future State VSM

Fig 5.1

Process Cycle Time

Raise of a bill through 10 mins

Tally

Removal of stock and 5 mins

verification

Total CT 15 mins

Table 5.1

5.4 Recommendations

• To utilize the provided future state mapping to improvise their process by reducing
the nonvalue added activities.

28
 • This also reduces their process time so that the number of the process done per day
also increases and which inter increases customer satisfaction.

• This also reduces the employee burden and improves employee satisfaction.

• Introducing 5S and TIMWOOD can cut down the Waste in the process and make it
less time-consuming.

• Sort: Segregating the products as per the model type(2 wheel, four wheels, or
inverter).

• Set in Order: Place the products in a first-come, first go.

• Shine: Cleanliness

• Standardize: Use standard process while receiving the products from

suppliers.

• Sustain: By reducing the Waste and follow the process as mentioned in the
above four steps.

5.5 Outcomes
 From the above analysis of the future state map, Company can reduce its cycle time
by 40%, which is 10.5mins.

 By having the marketing department accesses tally software, the orders of the
customer can be taken in that instant; even the team have a look at the stocks of
available models, the quantity the customers want, and conforms the order then and
there.
 By using 5s and Timwood tools, the Company can manage the Waste and increase the
efficiency of the process by 20percent
5.6 Learnings
 Theoretical knowledge gained during the trimester on the different lean tools such as
TIMWOOD, VSM, and 5S is used to implement in a real-life project where to
optimize the process.
 By seeing the traditional process which is followed by the Campany, made to
implement different lean tools and technics to Reduce the Waste and non-value added
activities.

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 Firstly visited the pit stop, made to learn how to approach customers and how to
tackle them, which is the main aim of an MBA graduate. Next, interaction with
different departments such as procurement, distribution, and logistics made to know
how to deal with cross-functional employees.
 Joined with marketing agents and learned some techniques which they use to reach
customers and make them reach out to the companies products for a long time.
 Finally, interaction with top management gains some insights into the business, where
came up with how forecasts place a major role in it.

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REFERENCES

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 REFERENCES

 Amaron - India's Top Selling Automotive Batteries. (n.d.). Amaron. Retrieved July 15, 2021,
from https://www.amaron.in/.

 Singh, B., Garg, S. K., & Sharma, S. K. (2010). Value stream mapping: literature review and
implications for Indian industry. The International Journal of Advanced Manufacturing
Technology, 53(5–8), 799–809. https://doi.org/10.1007/s00170-010-2860-7.

 Hines, P., Rich, N., & Esain, A. (1999). Value stream mapping. Benchmarking: An
International Journal, 6(1), 60–77. https://doi.org/10.1108/14635779910258157
 Berg, J. D., & Zijm, W. (1999). Models for warehouse management: Classification and
examples. International Journal of Production Economics, 59(1–3), 519–528.
https://doi.org/10.1016/s0925-5273(98)00114-5
 Anđelković, A., Radosavljević, M., & Stošić, D. (2016). Effects of Lean Tools in Achieving
Lean Warehousing. Economic Themes, 54(4), 517–534. https://doi.org/10.1515/ethemes-
2016-0026

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