Professional Documents
Culture Documents
1
1. INTRODUCTION
It is well understood that material handling improvement may have positive effects over
production. However, it is not only production, but the way the employees see the new
situation. When the perception is favorable, the benefits are possible; if not, behavioral issues
can emerge. Evaluations are important when interventions into the work environment are
implemented. The present work is specifically related to materials handling management. By
means of effective materials handling management, the company’s operational performance
may improve aiming to satisfy the customers or meet their expectations in terms of their
needs, desires and demands.
The company in question, after analyzing production flow as a whole, identified that among
other measures it would be necessary to improve materials handling management in the
manufacturing process. This was motivated by the observed delay in forklifts service and their
high maintenance cost. Forklifts they are used both for parts handling and transportation and
to assist in tooling changes, which many times resulted in excessive setup time leading to
production delays. Changes there made in the materials handling process to address these
concerns.
2
Meaning of Materials Management:
Materials Management is a function, which aims for integrated approach towards the man-
agement of materials in an industrial undertaking. Its main object is cost reduction and effi-
cient handling of materials at all stages and in all sections of the undertaking.
Materials Management’s functions include several important aspects connected with mate-
rials, such as purchasing, storage, material handling control, materials handling
standardization etc. Hence this subject has become very important and is gaining more and
more importance.
Even three decades ago the term ‘materials management’ was little known and understood in
the sense in which it is used today. Many terms, like purchasing, store-keeping, material
handling etc, were used to denote more or less same meaning as that of materials
management, but these terms were unable to give complete idea of materials management.
Materials management covers a very wide field and deals with materials cost, its supply,
utilization and handling. It is concerned with the planning and programming of materials and
equipment, market research for purchase, procurement of materials (capital goods, raw mate-
rial, components and semi-finished items), packaging, storage and material handling control,
transportation of materials, salvage, material handling, disposal of scrap and surplus etc.
Following functions are included under the direction and control of Materials Manager,
in charge of materials management department:
1. Materials planning and programming.
2. Store-keeping.
3. Purchasing.
4. Material handling control.
5. Simplification, codification and standardization in stores.
6. Transportation.
7. Materials handling.
8. Disposal of scrap and surplus.
3
Looking to the above functions it is clear that Materials Manager has to work in close co-
operation with different heads of departments.
4
In countries like Japan, material handling consciousness has proved to reduce materials cost
substantially. In the year of application of scientific methods and techniques of materials
management i.e. 1998—a saving of more than 3 per cent could be achieved in a period of
merely 18 months. Thus in our country, it is very essential to develop material handling
consciousness.
(b) By reducing the cost of finished goods and maintaining the quality, it is possible for
Indian manufacturers to compete better in foreign market and earn more foreign exchange.
Up till now efforts have been made for saving in the wages (wages are about 16 per cent of
sales value), which was not liked by the labour class and such steps created the labour prob-
lems. But the above facts show that more efforts must be made for the saving in materials cost
(about 77 per cent) by utilising the techniques in materials management and that too without
creating any labour problem.
5
The prime objective is to supply the user department with the required quantity of material at
a constant rate with uniform quality so that production or service rendered is not held up. At
the same time materials manager has to ensure the optimum usage of facilities like capital,
storage space and other aspects of materials management.
Materials management offers a wide scope for reducing costs, saving the foreign exchange,
conserving scarce materials, improving productivity and increasing profits. It is much easier
to reduce material costs than to reduce labour costs and as material costs predominate in the
total cost of a product, the saving is substantial.
By careful financial analysis, it can be shown that a 5% reduction in materials costs will result
in increased profits equivalent to a 36% increase in sales. The Break-even chart shown in Fig.
39.1 indicates that a substantial increase in profits can be obtained with a small decrease in
material costs. The chart also shows that profit starts coming much easily if the Break-Even
point is shifted backward with the same total production.
Increased production and sales are necessary to bring about the same increase in profits which
result in reducing material costs or increasing production and sales to the extent of 30% to
40% which is not easy.
Increased production may need increase in fixed assets and increasing sales to that extent,
may not always be possible without extra sales efforts like Additional Advertising which
6
increases sales expenses. Further it depends more on external-environments over which the
management has little control.
These sections are further sub divided into sub-sections based on functions like, purchase
section into source development, vendor evaluation, tendering, evaluation and issue of orders,
follow-up, importation, procurement of capital equipment, spares procurement etc. depending
upon the nature of work and quantum of work in the department.
7
Where materials management hold a key role in the organization and is considered as a prime
activity, the materials manager is a senior level authority, and directly reports to the chief
executive. In this case he is treated at par with production, marketing, finance and personnel.
In small scale industries, the function of materials management is considered subordinate to
the production function and in such cases the materials manager acts as a subordinate to
works manager. Generally, Marketing department has various sections, depending upon the
nature of work, such as purchase, receiving, stores, material handling control, value
engineering and cost reduction, shipping etc.
If the contribution is made directly by the materials function They call it a primary objective.
If it is indirect and results from the materials department’s assistance to another department
They call it a secondary objective.
9
Qualifications for Materials Management Department Personnel:
The qualifications for various executives and other supervisory staff in materials management
department may conveniently be grouped into three categories—Personal characteristics;
Educational background, and business experience relevant to materials management
functions.
The personal characteristics that promise success in purchasing are no different from those in
any other field of business. The difference is likely to be in importance attached to some of
the characteristics.
It is unlikely that any experienced materials manager would agree precisely with the
following personality traits:
(i) Integrity:
Materials manager expend huge some of company money. They must be impervious to the
financial temptations that accompany such a position of trust, whether in the form of an
inordinate gift, or outright bribery. Personal integrity is also required to refrain from making
unwarranted promises to potential suppliers in order to secure preferential treatment.
(ii) Dependability:
The personality trait is important in purchasing personnel because frequently the continuity of
operations of an industrial plant depends on the reliability of materials management
department in following through on requisitions until goods are delivered according to
specifications.
(iii) Initiative:
Purchasing personnel are constantly faced with situations demanding initiative and
imagination. The continual search for alternative sources of supply is one such area where
initiative is of importance.
(iv) Tact:
Many materials managers consider tact the most important personal trait. The reason for this
is the crucial importance of maintaining sound and friendly vendor relations.
10
(v) Industriousness:
Knowledge of materials and sources is acquired only after extended training and experience.
The industriousness of materials management department is tested by the long hours they
must work. In addition to the above traits, the executives in materials management department
should possess: Ability to learn; Ability to work on details; Possess good human relations
skills.
Education:
Present educational trend is toward employing professionally qualified personnel as
management trainee. Such trainees possess the post graduate qualification in management
with specialization in materials management. Most of trainees possess degree in engineering
or science before completing their Business Administration qualification. Such trainees are
provided one to two years training in various areas of materials management before appointed
as first level executives.
Business Experience:
Business experience is almost universally considered to be necessary for materials
management in the higher-ranking position. Some of the large companies secure employees
for positions in executive cadre by building up a pool of professionally qualified college
graduate as trainees.
These trainees are enrolled in an extended programme of indoctrination and work training,
which rotates them through the major subdivisions of the company. During the training period
those with an aptitude for and an interest in purchasing work can be selected out of the larger
group and eventually assigned permanently to the purchasing department.
The primary objective of a material handling system is to reduce the unit cost of production.
The other subordinate objectives are:
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1.3 SCOPE OF THE STUDY
The study covers the activities that are carried in the company regarding the material
handling. Inventories constitute a significant part of the current assets effective utilization of
bank loan and other funds calls for mechanism to control the unnecessary investment in the
material handling.
So this study was undertaken to analysis the cost associated with the material handling
and deals with control and maintenance of material handling. Material handling control
techniques suggested in this project will reduce unnecessary pile-up of material without any
adverse effect on protection. Further these techniques may be extended to other companies of
similar nature
The fundamental reason for carrying material handling in that it is almost impossible and
economically impracticable for each stock item to arrival exactly at the right time and right
place to the exact quantity and quality levels.
SUPPLIER HUBS
Supplier hubs can reduce the number of actors in the supply chain planning procedure
and thereby facilitate the use of SCM systems. Supplier hubs provide logistic service by
storing components delivered by suppliers and forward these to the respective manufacturers.
12
VENDOR MANAGED MATERIAL HANDLING
A typical example of order information transparency is found in an increasing number
of retail chains that use Vendor Managed Material handling (VMI) systems. In VMI systems
suppliers manage the stocks (of their products) at their customers.
This makes it possible for the supplier to adjust production and distribution planning
to changes in consumer demand. Vendor Managed Material handling is now a fairly widely
applied system for supply chain planning
The study was undertaken at Material handling management of team Thai Logistics in the
state of Kerala
TYPE OF PROJECT:
DATA COLLECTION
Both primary and secondary data There collected for the purpose of the study.
PRIMARY DATA
13
Primary data are those, which are collected fresh and for the first time, and thus it
happens to be original in character. The study was mainly based on Primary Data.
A structured questionnaire was used for the collection of data. Primary data for
warehouse was collected with the help of warehouse manager personal interview was adopted
for contract supplier.
SECONDARY DATA
Secondary data means data that are already available they referred to the data which
have already been collected and analyzed by someone else.
Considerable data has also been tapped from secondary sources such as Journals,
Newspapers, magazines and Internet to make highlights on the staff working both in colleges
and universities.
TARGET RESPONDENTS
Staffs (all levels) at team Thai logistics material handling management and contract
suppliers.
3.4.3 ANALYSIS
Analysis was conducted using percentage analysis
15
CHAPTER II
16
REVIEW OF LITERATURE
Materials handling makes production flow possible, as it gives dynamism to static elements
such as materials, products, equipments, layout and human resources (Stock & Lambert,
2001; Chopra & Meindl, 2001). Groover (2001) highlights that despite its importance,
materials handling is a topic that frequently is treated superficially by the companies. How
ever, other authors have perceived its relevance. During the period in which Shingo (1996)
contributed to the development of the Toyota Production System, he developed the
Production Function Mechanism that proposes to explain how the production phenomenon
happens.
Shingo (1996) indicated that, in the west, production was treated as a process of a sequence of
operations. In the Production Function Mechanism, the concepts are directly related to a
production analysis focus. A process analysis consists of an observation of the production
flows that turn raw materials into final products. From this concept, the author highlights that
the main analysis is the one associated with the process, because it follows the production
object. The analysis of the operations comes later because it focuses on production subjects
(operators and machines). When making this distinction, it is possible to perceive the
relevance of materials handling.
Beyond the basic function of movement, it is also relevant to cite the functions of storage and
information transfer, which occurs simultaneously and has both strategic and operational
dimensions. Organizations are relying on information systems using tools like Electronic Data
Interchange (EDI), or similar information technology resources, to gain in precision and
reliability, in the interchange, and availability of information (Lambert & Stock, 2001;
Laudon & Laudon, 2006, Milan, Basso & Pretto, 2007).
The relevance also occurs in another context. Ballou (1993) states that the storage and
handling of goods are essential among the set of logistics activities, and their costs can absorb
17
12% to 40% of its costs. In addition, the MHIA estimates that 20% to 25% of manufacturing
costs are associated to handling (Groover, 2001, p. 281). According to Sule (1994) apud
Sujono & Lashkari (2006), material handling accounts for 30–75% of the total cost of a
product along the production chain, and efficient material handling can be responsible for
reducing the manufacturing system operations cost by 15–30%.
For Bowersox and Closs (1996), the main logistic responsibility in manufacturing is to
formulate a master-program for the timely provision of materials, components and work-in-
process. Stevenson (2001) understands that logistics (including materials and goods flowing
in and out of a production facility as well as its internal handling) has become very important
to an organization to acquire competitive advantages, as the companies struggle to deliver the
right product at the correct place and time. The main challenge is to promote, with low cost, a
flow whose velocity allows the execution of manufacturing process with the expected
satisfaction level.
18
CHAPTER III
19
PROFILE OF THE COMPANY
FMCG industry provides a wide range of consumables and accordingly the amount of money
circulated against FMCG product is also very high. The competition among FMCG
manufacturers is also growing and as a result of this, investment in FMCG industry is also
increasing, specifically in India, where FMCG industry is regarded as the fourth largest sector
with total market size of 13$ billion. FMCG sector in India is estimated to grow 60% by
2020. FMCG industry is regarded as the largest sector in New Zealand which accounts for 5%
of Gross Domestic Product(GDP)
Indian Market
Fast- moving consumer good sector is the 4th largest secto in the Indian economy with
Household and personal care accounting for 50 per cent of FMCG sales in India. Growing
awareness, easier access and changing lifestyle have been the key growth drivers for the
sector. The urban segment(accounts for a revenue share of around 40%) is the largest
contributor to the overall revenue generated by the FMCG sector in India and recorded a
market size of around US$ 29.4 billion in 2016-17. However in the last few years the FMCG
market has grown at a faster pace in rural India compared with urban India. Semi-urban and
20
rural segments are growing at a rapid pace and FMCG products account for 50 % of total
spending
The objective is to provide high quality products at reasonable prices so that a larger number
of people will be able to afford superior products. They offer a wide choice in all varieties so
that everyone goes back happy. The company ensure utmost quality control in our production
units, and where products are sourced from other vendors, They ensure that they can be
trusted with the quality and safety. Their customers are individuals, families, corporate
houses, the hospitality industry, institutions, and more. With their diligence, dedication to
excellence and care for the customer, They have succeeded in spreading our wings to conquer
new horizons; today their diverse business interests spread throughout South India have
established us as a formidable presence in this region. Mr. PC Thahir established Team Thai
in 1984, as a cement marketing trading firm. In the next decade, their business interests
included various other activities to finally incorporate FMCG . Their marketing expertise
garned over the years benefited greatly. Spurred by the tremendous success. They stepped into
the manufacture of consumer perishables.
These are our various companies that operate under the aegis of Team Thai:
Thai Impex (P) Ltd – Imports tiles and distributes them in the wholesale and retail
sector
Ashique Enterprises – Trades Thai Consumer products
Aghin Roadways – The Transport division
Ashique Exports (P) Ltd – Manufactures and Trades Thai Consumer Products
Transworld Mining Industries (p) Ltd – Involved in mining calcium carbonate
21
Ashique Chemicals & Cosmetics – Manufactures and Trades Thai Consumer Products
like Personal Care, Fabric Care & Home Care
Cube India Trading Pvt Ltd – Trades servicing materials
Aghin Chemicals & Cosmetics – Manufacturing, Retailing & Trading of Thai
Consumer Products
MANIFESTO
The set records only to break them. The deliver values across the value chain. From
Agriculture to Manufacturing, Processing, Logistics, Distribution & Retail. The take pride in
delighting our customer. The take our products to the last mile. They are committed to our
role in business and in society. The spread joy, prosperity and well-being. For Everyone that
Is Team Thai.
BOARD OF DIRECTORS
The Chairman and Managing Director of the Group Mr Ashique Thahir. Born into a business
family. After his graduation, he branched out on his own and ventured into Cement Trading.
He established his business as a Consignment Agent of India Cements Ltd. and enjoyed
immense success over the years.
Mr.Ashique Thahir– JMD
The elder son of Mr. PC Thahir, he has a professional degree in Business Management from
the University of Central England. Since completing his MBA in 2002, he has been
proactively engaged in all the business affairs of the group as the Executive Director. He has
infused the group with energy.
22
THAI CONSUMER PRODUCTS
Personal Care
Fabric Care
Home Care
Spices
Masala
Pickle
Jam
Sauce
Tea
Chutney
Squash
SERVICING MATERIALS
They are among the best servicing material specialists in Kerala. They are engaged in the
sales of high quality cement, tiles, asbestos sheets, sanitary and CP fittings, kitchen sinks,
joint fillers, adhesives, cladding tiles, natural stones and cement sheets in both wholesale and
retail sectors.
MANUFACTURING
They decided to enter the manufacturing segment with a view to provide quality products to
consumers at highly competitive prices as people There reeling under spiraling prices of
essential goods. Their first tryst with manufacturing was in 1996, when they stepped into the
production of detergent soaps and washing powder at Sultan Bathery, Wayanad. In the next
year followed it up with the manufacture of toilet soaps and other cleaning solutions. From
2001 they started manufacturing white cement, cement sheets (brand names – Meghacem,
UltraCem) at Tirunelveli, Tamil Nadu. Tea picked from plantation was also processed into
consumable tea powder at Wayanad. All the products are marketed and distributed throughout
Kerala State, with some products going to several destinations in South India & Middle east.
23
LOGISTICS
Aghin Roadways (ARS) is the logistics division of Team Thai which began operations in
Kozhikode, Tamil Nadu, in 1992. Since then, it has emerged as a player to reckon with,
thanks to its dedicated, safe and speedy delivery services. Currently, ARS is the
comprehensive logistics service provider to India Cements Ltd. With a fleet of well-
maintained vehicles, well-trained and experienced drivers and other support staff, ARS
delivers more than just goods – They deliver promises. The widespread network allows to
deliver without delays and interruptions; no wonder that businesses rely on them to get their
goods delivered every single time.
HOME FACTORY
Home Factory is a new venture of Thai Group which is established in 2010. It is a retail chain
of Tiles, Sanitary and CP fittings. The company deals in branded tiles and sanitary ware. They
offer a wide assortment of products including NAKO Tiles, Patenza tiles, Spaniso, Johnson,
Mirage, Sober, and many more. They also offer exquisite collection of Wall and Floor Tiles;
Vitrified Tile; Exterior Wall& Floor; Tile Adhesives, Tile Adhesive, Grout, Putty etc.
They also provide CP Fitting, Kitchen Sink and Kitchen appliances from the reputed brands
like Hindware, Parryware, Cera, Elica, etc. Since their inception, They are working with the
sole objective of offering complete solution for all everyone’s diverse requirements of
interiors, exteriors and modern kitchen.
They procure products from the trusted vendors who are acclaimed for offering superior
quality products. Besides, owing to our large scale business operation and strong business
understanding with the renowned brands, They are able secure products at reasonable prices,
24
and pass on this economical advantage to customers. The offer products in various sizes and
dimensions, to cater the needs of residential apartment, resorts, factories and offices. The
Team have reached the pinnacle in retail and marketing business of braded tiles and sanitary
ware, owing to strenuous effort of our team of professionals. The team is well aware with
latest trend in tiles and sanitary ware, which enables to provide quality products at affordable
prices to customers, thereby assisting them in creating exquisite interiors, exteriors for a
healthy living. Our team includes following professionals: Procurement Staff, Quality
Manager, Sales and Marketing Executive, Customer Support Staff.
25
CHAPTER IV
26
DATA ANALYSIS AND INTERPRETATION
Table 4.1
Accuracy of forecasting in planning department
Inference:
The table 4.1 reveals that 72 percent of the respondent belongs Accuracy of
forecasting in planning department as 60 to 90%. The 12 percent respondent Accuracy of
forecasting in planning department as 0 to 30 and 30-60%.
27
Figure 4.1
Accuracy of forecasting in planning department
Percentage
120
100
100
80
72
60
40
20
12 12
0 4
0-30% 30-60% 60-90% > 90% Total
28
Table 4.2
Normal lead time between order and receipt date
Inference:
The table 4.2 reveals that 72 percent of the respondent belongs to lead time for
castings ordering date and receipt date as 30 to 45 days. The 72 percent respondent follows
lead time for castings ordering date and receipt date as 0 to 30 days.
The 72 percent respondent follows to lead time for castings ordering date and receipt
date as 45 to 60 days. The 4 percent respondents follow to lead time for castings ordering date
and receipt date as above 60 days.
29
Figure: 4.2
Normal lead time between order and receipt date
80
70
60
50
40
30
20
10
0
0-30 Days 30-45 Days 45-60 Days > 60 Days
30
Table 4.3
Suppliers understanding level of system generated Purchase Order
0-30 % 0 0
30-60 % 1 4
60-90 % 8 32
>90 % 16 64
Total 25 100
Inference:
It is understood from table 4.3 majority of the respondents (64 percent) belong to the
understanding level of suppliers in system generated purchase order details in above 90
percent. The next majority of the respondents follow to the understanding level of suppliers in
system generated purchase order details in 60 percent to 90 percent.
31
Figure: 4.3
Suppliers understanding level of system generated Purchase Order
70
60
50
40
30
20
10
0
0-30 % 30-60 % 60-90 % >90 %
32
Table 4.4
Accuracy level of ERP track status order
Inference:
The table 4.4 reveals that majority of the respondents (56 percent) belong to the
accuracy of ERP to track the status order in 60 percent to 90 percent level. Next 24 percent
respondents follow to the accuracy of ERP to track the status order in 30 percent to 60 percent
level.
Other 12 percent belongs to the accuracy of ERP to track the status order in 60 above
90 percent level. Balance 8 percent belongs to the accuracy of ERP to track the status order in
0 to 30 percent level.
33
Figure: 4.4
Accuracy level of ERP track status order
60
50
40
30
20
10
0
0-30 % 30-60% 60-90 % >90 %
34
Table 4.5
Lead time for inspection
Inference:
The table 4.5 reveals that majority of the respondents (76 percent) belong to the lead
time for inspection after goods received in the factory within 1 day to 2 days. The next major
respondents follow to the lead time for inspection after goods received in the factory within 2
days to 4 days. The remaining 4 percent respondents belong to the lead time for inspection
after goods received in the factory within o day to 2 days. No respondent follow to the lead
time for inspection after goods received in the factory above 5 days.
35
Figure: 4.5
Lead time for inspection
80
70
60
50
40
30
20
10
0
0-1 day 1- 2 days 2-4 days > 5 days
36
Table 4.6
Acceptable level for receiving materials from supplier end
Inference:
It is understood that from the table 4.6 majority of the respondents (52 percent) belong
to the acceptance of receiving materials from supplier end in 60 percent to 90 percent level.
Balance 48 percent belongs to the acceptance of receiving materials from supplier end
in above 90 percent level. No respondent belongs to the acceptance of receiving materials
from supplier end in neither 30 percent to 60 percent level nor 0 percent to 30 percent level.
37
Figure: 4.6
Acceptable level for receiving materials from supplier end
60
50
40
30
20
10
0
0-30 % 30-60% 60-90 % >90 %
38
Table 4.7
Normal payment terms
Inference:
The table 4.7 illustrates that majority of the respondents (60 percent) belong to the
normal payment terms given to their vendor in the category of 45 days to 60 days. Among
others 16 percent respondents follow the normal payment terms given to their vendor in 60
days to 75 days.
The 16 percent respondents follow the normal payment terms given to their vendor in
above 75 days. The remaining 8 percent respondents belong to the normal payment terms
given to their vendor in the category of 30 days to 45 days.
Figure: 4.7
39
Normal payment terms
70
60
50
40
30
20
10
0
30-45 days 45-60 days 60-75 days >75 days
Table 4.8
Average number of days that production stopped due to material shortage
40
No of days production stoppage Total Percentage
0-1 day 2 8
1-2 days 18 72
3-4 days 3 12
>5 days 2 8
Total 25 100
Inference:
It is understood from table 4.8 that majority of the respondents (72 percent) belong to
the average number of days that production has stopped due to material shortage between 1 to
2 days. The 12 percent respondents follow to the average number of days that production has
stopped due to material shortage between 3 to 4 days.
The 8 percent respondents follow to the average number of days that production has
stopped due to material shortage between 0 to 4 days. The remaining 8 percent respondents
follow to the average number of days that production has stopped due to material shortage
above 5 days.
Figure: 4.8
Average number of days that production stopped due to material shortage
41
80
70
60
50
40
30
20
10
0
0-1 day 1-2 days 3-4 days >5 days
Table 4.9
42
On time delivery percentage
Inference:
The table 4.9 reveals that majority of the respondents (56 percent) belong to on time
delivery of their suppliers in 60 percent to 90 percent level.
The 24 percent respondents follow to on time delivery of their suppliers in above 90 percent
level.
The remaining 20 percent respondents belong to on time delivery of their suppliers in
30 percent to 90 percent level. No respondent belongs to on time delivery of their suppliers in
0 to 30 percent.
Figure: 4.9
43
On time delivery percentage
24 20
0-30 %
30-60%
60-90 %
>90 %
56
44
Table 4.10
Material Handling turnover of ‘A’ class items
Inference:
The table 4.10 illustrates that majority of respondents (40 percent) belong to the
MATERIAL HANDLING turnover of ‘A’ class items in the category of 15 days to 30 days
level. The 32 percent respondents follow to the MATERIAL HANDLING turnover of ‘A’
class items in 10 days. The remaining 32 percent respondents follow to the MATERIAL
HANDLING turnover of ‘A’ class items in 10 days to 15 days. No respondent belong to the
MATERIAL HANDLING turnover of ‘A’ class items in above 30 days.
Figure: 4.10
45
MATERIAL HANDLING turnover of ‘A’ class items
28
40
10 Days
10-15 Days
15-30 Days
> 30 Days
32
Table 4.11
46
Material Handling turnover for bought out finished items
Inference:
The table 4.11 illustrates that the majority of the respondents (44 percent) belong to
the MATERIAL HANDLING turnover for bought out items in 15 days to 30 days. The next
majority of the respondents follow to the MATERIAL HANDLING turnover for bought out
items in 15 days to 30 days.
Figure: 4.11
Material Handling turnover for bought out finished items
47
45
40
35
30
25
20
15
10
0
15-30 days 30-45 days 45-60 days >60 days
Table 4.12
Average value of ‘A’ class items Material Handling on hand during transit
48
A Class items Material Handling in Total Percentage
transit
0-30 % 8 32
30-60 % 13 52
60-90 % 4 16
>90 % 0 0
Total 25 100
Inference:
The table 4.12 reveals that the majority of the respondents (52 percent) belong to the
‘A’ class items MATERIAL HANDLING on hand during transit in 30 percent to 60 percent.
The next majority respondents follow to the ‘A’ class items MATERIAL HANDLING on
hand during transit in 0 percent to 30 percent.
The remaining respondents belong to the ‘A’ class items MATERIAL HANDLING
on hand during transit in 60 percent to 90 percent. No respondent belong to the ‘A’ class
items MATERIAL HANDLING on hand during transit in above 90 percent.
Figure: 4.12
Average value of ‘A’ class items Material Handling on hand during transit
49
60
50
40
30
20
10
0
0-30 % 30-60 % 60-90 % >90 %
Table 4.13
Purchase Order releasing sequence
Inference:
It is understood from the table 4.13 that the majority of respondents (92 percent)
belong to purchase order releasing sequence on once in 15 days. The remaining respondents
(8 percent) follow to purchase order releasing sequence on once in 10 days.
No respondents belong to purchase order releasing sequence on neither daily nor once
in a Week.
Figure: 4.13
Purchase Order releasing sequence
51
100
90
80
70
60
50
40 Percentage
30
20
10
0
ys
ys
ily
k
ee
da
da
Da
aw
10
15
in
in
in
ice
ce
ce
Tw
On
On
Table 4.14
Follow up sequence with supplier over telephone.
Inference:
It is understood from table 4.14 that the majority of the respondents (92 percent)
belong to the supplier follow up sequence over phone on daily. The remaining 8 percent
respondents follow to the supplier follow up sequence over phone weekly twice.
Figure: 4.14
Follow up sequence with supplier over telephone.
53
8
Daily
Weekly twice
Weekly once
Once in 10 days
92
Table 4.15
Visiting sequence to ‘A’ class items suppliers
54
Visiting sequence Total Percentage
Monthly twice 2 8
Monthly once 3 12
Two month once 7 28
Three month once 13 52
Total 25 100
Inference:
It is understood from the table 4.15 that majority of the respondents (52 percent)
belong to visiting sequence of ‘A’ class items suppliers on three months once. The next 28
percent respondents follow to visiting sequence of ‘A’ class items suppliers on two months
once.
The other 12 percent respondents belong to visiting sequence of ‘A’ class items
suppliers on monthly once. The remaining 8 percent respondents follow to visiting sequence
of ‘A’ class items suppliers on two month once.
Figure: 4.15
Visiting sequence to ‘A’ class items suppliers
55
8
12
Monthly twice
Monthly once
52 Two month once
Three month once
28
Table 4.16
Visiting sequence to bought out items suppliers directly.
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Visiting sequence to BOF suppliers Total Percentage
Weekly once 0 0
Monthly twice 0 0
Monthly once 9 36
Two month once 16 64
Total 25 100
Inference:
The table 4.16 illustrates that the majority of the respondents (64 percent) belong to
the visiting sequence to bought out suppliers directly on two month once. The remaining 36
percent follow to the visiting sequence of bought out suppliers directly on monthly once. No
respondent belongs to the visiting sequence to bought out suppliers directly neither weekly
once nor monthly once.
Figure: 4.16
Visiting sequence to bought out items suppliers directly
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36
Weekly once
Monthly twice
Monthly once
Two month once
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Table 4.17
Vendor payments
58
Payment release by Total Percentage
Weekly once 0 0
10 days once 5 20
15 days once 14 56
Monthly once 6 24
Total 25 100
Inference:
The table 4.17 reveals that the majority of respondents (56 percent) belong to release
of vendor payment on 15 days once. The 24 percent respondents belong to release of vendor
payment on monthly once.
The remaining 20 percent respondents follow to release of vendor payment on 10 days
once. No respondent belongs to release of vendor payment on weekly once.
Figure: 4.17
Vendor payments
59
24 20
Weekly once
10 days once
15 days once
Monthly once
56
Table 4.18
Mode of Transport
60
Transport Mode Total Percentage
By Road 23 92
By Train 2 8
By Air 0 0
Through Courier 0 0
Total 25 100
Inference:
The table 4.18 illustrates that majority of the respondents (92 percent) belong to the
mode of transport for receiving the items through road. The remaining 8 percent respondents
follow to the mode of transport for receiving the items through train.
No respondent belongs to the category of the mode of transport for receiving the items
neither through air nor through courier.
Figure: 4.18
Mode of Transport
61
100
90
80
70
60
50 Percentage
40
30
20
10
0
By Road By Train By Air Through Courier
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CHAPTER V
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48% of the respondents belong to the acceptable level of receiving material is above
90%
60% of the respondents belong to the payment terms followed is 45-60 days.
72% of the respondents belong to the average number of days that production has
stopped due to material shortage between 1 to 2 days.
56% of the respondents belong to on time delivery of their supplier is 60-90%.
40% of the respondents belong to material handling turnover for ‘A’ class items is 15-
30 days
44% of the respondents belong to the material handling turnover for bought out items
is 15 days to 30 days.
52 % of the respondents belong to the ‘A’ class items material handling on hand
during transit in 30 percent to 60 percent.
92% of the respondents belong to purchase order releasing sequence on once in 15
days.
92% of the respondents belong to the supplier follow up sequence
over phone is on daily
52% of the respondents belong to visiting sequence to ‘A’ class vendors directly on
three month once
64% of the respondents belong to the visiting sequence to bought out suppliers
directly on two month once.
56% of the respondents belong to the release of vendor payment 15 days once
92% of the respondents belong to the receipt of the materials through road.
5.2 SUGGESTIONS
Accuracy of forecast should be addressed in top priority by the way of arranging the
discussions with planning department frequently. Planning has to be deeply interact with
purchase will avoid false forecast and interpretation. material handling plan also to be
made for the different categories of items like ‘A’ class and bought out items.
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Material handling turnover for bought items to be minimized to 15-30 days from 45-
60 days. Proper planning and ordering of bought out items would reduce excess material
handling. Delivery schedule to be provided based on the manufacturing plan to avoid long
material handling days.
CONCLUSION
Material handling management is important for keeping costs down, while meeting
regulations. Supply and demand is a delicate balance, and material handling management
hopes to ensure that the balance is undisturbed. Highly trained material handling managers
and high-quality software will help make material handling management a success. The ROI
of material handling management will be seen in the forms of increased revenue and profits,
positive employee atmosphere, and an overall increase of customer satisfaction.
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If your goal is to make your business more profitable, you must increase efficiency and
reduce costs. As a member of the distributions industry, material handling is the largest
investment that you make. Careful classification of your material handling, and continuing
analysis of those classifications, can play a vital role in maintaining cost at the efficient levels
you have established as your goals.
Material handling management involves more than immediate and reactionary decisions that
affect your business. material handling management requires that you establish and enforce
procedures that will serve as tools in utilizing your system on a daily basis in the most
efficient manner to produce the most profits for your company.
BIBLIOGRPAHY
BOOKS
The Ware house Management Handbook by James .A. Tompkins- published in 1988
City Distribution and Urban Freight Transport: Multiple Perspectives by Cathy
Macharis – published in 2011
Lean logistics: The Nuts & Bolts delivering Material Goods, by Michel Baudin-
Published in 2003
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Principles of material handling & Material Management by Richard. J.Tersina-
published in 1981
WEBSITES
www.Agilitylogistics.in
www.google.com
www.reviewliterature.com
www.teamthai.in
Q2.What is the normal lead time between order and receipt date?
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0-30 Days 30-45 Days 45-60 Days >60 days
Q8. Average number of days that production stopped due to material shortage
Q12. Average value of A class items material handling on hand during transit
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Monthly twice Monthly once 2 month once
3 month once
GLOSSARY
Materials Management:
The planning and control of the functions supporting the complete cycle of materials, and the
associated flow of information. These functions include identification, cataloging,
standardization, need determination, scheduling, procurement, inspection, quality control,
packaging, storage
.
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Inventory management:
Inventory management refers to the process of ordering, storing and using a company's
inventory: raw materials, components and finished products
Lead time:
Lead time (when referring to a disease) is the length of time between detection of a disease
through screening and the moment in time where it would have normally presented with
symptoms and led to a diagnosis
Demand forecasting:
It is the art and science of forecasting customer demand to optimize supply of such demand
by corporate supply chain and business management. Demand forecasting involves techniques
including both informal methods, such as educated guesses, and quantitative methods
FMCG:
Fast-moving consumer good are products that sell quickly at relatively low cost – items such
as milk, gum, fruit and vegetables, toilet paper, soda, beer and over-the-counter drugs like
aspirin.
ERP:
It is the integrated management of core business processes, often in real-time and mediated by
software and technology. The ERP system integrates varied organizational systems and
facilitates error-free transactions and production, thereby enhancing the organization's
efficiency
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