Case Study – Insta Cement Industries

BACKGROUND
India is the second largest cement producer in the World, after China and the production
capacity is expected to reach 550 Million Tonne by 2025 with large concentration in Western
and Southern Parts of the country. The Industry is expected to grow at 9% CAGR between
FY18 to FY20, on the back of increased spends on roads and railways, push towards affordable
housing by central government and materialization of pent-up demand.

CASE STUDY
Insta Cement Ltd enjoys 40 percent market share in the western parts of the country, along
with a value premium. It has a strong consumer-based brand equity developed over a period
due to its quality consistencies and delivery commitments. The company enjoys 26% market
share pan India and has built up its long term strategy to penetrate in rural markets.

At cements production plant an average of 300 trucks per day shipments are made. The trucks
are classified into categories according to its carrying capacity i.e. 10MT, 15MT, 20MT and 25
MT. The plant serves in lead distance from 10km up to 500km. Recently, there has been a
permanent restrictions on the movement of heavy load trucks during certain hours of the day
due to increasing road accidents and traffic congestion in the state. These restriction hours
are imposed two times a day during 7 am to 10 am and 2 pm to 4 pm respectively.

Due to this restriction the truck turnaround time (TAT) has drastically increased which is
affecting the service levels and on time deliveries. Refer to table for TAT figures.

TAT TAT in hours

TAT inside the plant 4.25

Activity wise TAT

TAT inside the plant Ideal Actual TAT

TAT(mins) (mins)
Gate-in from truck yard 15 mins 65mins
Loading 35 mins 95mins
Security Check 15 mins 35mins
Invoicing 10 mins 45mins
Gate-out 2 mins 15mins
TAT for last 6 months per shift are as follows:-

SHIFT TIME TAT( Average of last 6

months)
A 6am-2pm 4 Hours 40 mins
B 2pm-10pm 5 Hours 10 mins
C 10pm-6am 3 hours 20 mins

The increased TAT has led to congestion of trucks within the factory premise and hence
safety has become concern due to their movement. Also, due to long waiting time and
turnaround time the trucks are moving to competitors.
As a new management trainee hired in logistics suggest possible ways to reduce the TAT
inside and outside the plant. What automation tools can be used to support the same?