SCM Sip Project
SCM Sip Project
At
Submitted To
Submitted By
1
DECLARATION
This Supply chain management Project report is done to fulfil the course requirement
of SavitribaiPhule Pune University under the guidelines of Prof. Dr. Mrs.J.V. Bhalerao.
I have prepared this report independently and have gathered all relevant information
personally
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ACKNOWLEDGEMENT
It is indeed a great pleasure to submit this project, which is sheer output of my hard work
and dedication and staff personnel who have put their best efforts to make this project a success.
I take pleasure in thanking each one of them.
I wish to thank Dr. Mrs. R. J. Khaire (Director, M.G.V.’S IMR) for her valuable guidance
on this project.
I would like to thank my internal project guide Prof. Dr. Mrs. J.V. Bhalerao for the
guidance and support which she extended to me during this project work.
It would be improper to forget all my friends who directly or indirectly provided me with
valuable guidance and support during the development of the project.
DATE : / /
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TABLE OF CONTENTS
3.3 Conclusion 40
PROJECT CONCLUSIONS 42
REFERENCES 43
V 5.1 References 43
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TABLE
TABLE.NO TABLE TITLE PAGE NO.
3.1 requirement planning 3 month Material 36
LIST OF CHART
LIST OF FIGURE
FIGURE FIGURE TITLE PAGE NO.
NO
1.1 Road transport system 17
1.2 Air transport system 18
1.3 Rail transport system 19
1.4 Material rack 20
1.5 Wooden pallet 21
1.6 Material movement vehicle 22
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EXECUTIVE SUMMERY
Introduction about company
The mahindra logistics ltd established in the year 2007
Chapter 1
Consist of Organizational Profile, which further provides the details about of the history of the
mahindra logistics ltd. Their service profile and related information
Chapter 2
Deals with the objectives and scope of the study and also explain the Limitation to the study.
Chapter 3
Focuses on research methodology and data analysis. Various charts, data collected and data
interpreted in the study.
Chapter 4
Consist project conclusion and outcome of the project that is been studied throughout.
Chapter 5
Includes references, appendices that are included in the study.
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CHAPTER I
PROFILE OF THE ORGANIZATION
1.3 TECHNOLOGY
1.5 SERVICES
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1.1 INTRODUCTION OF COMPANY
Mahindra Logistics Limited-One Stop Logistics service provider. They are a leading &
fast growing company in the Express Logistics / Provider; Warehousing & Distribution industry
Third Party services. They are engaged in an extensive range of Logistics operations and
committed to quality assurance and quality improvements. They always try to respect the highest
standards of ethical conduct and vendor service in such manner. The philosophy of our company
is to work with honesty and treating customers fairly.
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HISTORY OF ORGANIZATION
The Company was incorporated under its present name as a public limited company under the
Companies Act, 1956 pursuant to the certificate of incorporation dated August 24, 2007 granted
by the Roc.
The Company was granted the certificate for commencement of business dated October 15, 2007
by the Roc. The Promoter, Mahindra & Mahindra Limited, through its logistics division,
Mahindra Logistics - undertook the business of providing logistics solutions, warehousing,
freight forwarding and supply chain services ( The Logistics Business ). Pursuant to a business
transfer agreement dated September 11, 2008 between the Promoter and the Company, the entire
Logistics Business was transferred to the Company. Subsequently, the Logistics Business has
since then been undertaken by the Company and the Subsidiaries.
Major events and milestones of the Company 2000 - Logistics business was set up as a separate
division of Mahindra & Mahindra Limited 2009
- Logistics Business of Mahindra & Mahindra Limited was transferred to the Company 2011
- Entered e-commerce sector by starting operations for one of India is leading ecommerce
companies 2015
- Appointed a reputed strategic consultancy firm to help with a business transformation exercise
- Entered into a joint venture with IVC to form 2X2 Logistics 2016
- Entered into business contract with one of the largest steel producers in India 2017
- 2013 at the 7thAnnual Express, Logistics & Supply Chain (ELSC) Awards
- MLL won the IT Synergy for Sustainability Award, at the Mahindra Rise Awards
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- Brand Excellence in Supply Chain & Logistics Award at the 4th Annual CMO Asia Awards
- Manufacturing 3PL Service Provider of the Year 2014 at the 3rd Asia Manufacturing Supply
Chain Summit
- Two silver awards for its Public Service Campaign A“Begin your courtesy with a glass of water
& H2OLI Save Water Celebrate Dry Holi at the 8th Global Communication Conclave 2014
organized by the Public Relations Council of India on 15th February 2014
- Nissan Automotive India Pvt. Ltd. - Appreciation for maximum value of the month
- Customer Award from Renault - Nissan Automotive India Pvt. Ltd. - Best Performer Award
Highest volume supporter-Domestic
- Customer Awards - GSK 2015 - SCALE (Supply Chain and Logistics Excellence) award by CII
Institute of Logistics
- Leading Woman in Logistics at the 5th Annual Women Leaders in India Awards held on 12th
June at Mumbai
- Automotive' at 8th Express Logistics Supply Chain Awards 2014 - Porter Prize 2014 for
Leveraging Unique activities
- Manufacturing Supply Chain Provider of the Year Engineering award at the 4th Asia
Manufacturing Supply Chain Awards
- Six awards at the PRCI Corporate Collateral Awards 2015 2016 - SCALE award
- Lords won Emerging Service Provider at Indian Chamber of Commerce Supply Chain &
Logistics Excellence Awards 2017
- CSR Initiative of the Year award by ELSC awards - 3PL Company of the Year award at
Logistics Asia Awards, 2016
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- SCALE award - Logistics Company of the Year
- Outstanding Women Leadership Award at the World Women Leadership Congress & Awards
- Women Leadership Award for Excellence in Logistics and Supply Chain at the World Women
Leadership Congress & Awards
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CURRENT BOARD OF DIRECTOR
Mr. PirojshawSarkari
Chief Executive Officer
Rama Malik, 46 years, is the Vice President – People Transport Solutions of Mahindra
Logistics. She holds a Bachelor’s degree in Arts from University of Mumbai. She graduated from
University of Pune in 1994 with a Master’s degree in Business Administration. She has
previously worked with Hindustan Unilever (formerly known as International Best foods),
Kodak India Limited and Writer Relocations, India. She joined Mahindra Logistics on November
2, 2015.
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TECHNOLOGY
Organization has an automated process All our branches are well integrated and we employ
leased line, broadband for Internet connectivity to real time information to our customers.
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MISSION AND VISION
Mission
With abundance of expertise in the business we will shall focus on providing highest quality of
service to our clients by economic and competitive rates and efficient transit times. We shall
maintain a fast flexible and well-integrated end-to-to supply chain that supports and fulfils
business needs.
Vision:
To become a leading and well-known logistic company exactly reputed for corporate branding
&quality management by way of recognition. To build a customer oriented culture by
maintaining an unequaled service excellence through continuous improvement and stand outas a
company committed to quality and professionalism by delighting the customer through its timely
and impeccable service the essence success.
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1.2 SERVICES OF THE ORGANIZATION
2) Transportation
Modes of Transportation
Surface: Powered by own fleet of closed body vehicles. We successfully handle distribution
requirements and provide efficient transit time.
Air:As a single service provider we offer comprehensive solution to our esteemed customers to
help them manage their shipping through air. We have tie ups with all major air carriers that
provide us secured space on many flights.
3) Warehouse management
Warehousing involving efficient handing of goods, its storage & protection on a large scale
in a systematic and orderly way in order to make them available when needed is one of the major
activities we provide to our customers.
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Our main activities include:
All Inbound & Outbound activities
Inventory Management
Transport Management
Warehouse Invoicing
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Figure : Road Transportation system
Mahindra logistics act as intermediate between Maruti Suzuki India Ltd. and cooper standard
Pvt. ltd. As per the requirement , Suzuki places order for tires to Mahindra logistics.
Mahindra logistics now place the order for tires to cooper standard ltd. Cooper standard pvt ltd.
Provides this tyres to Mahindra logistics within 72 hours of the order being placed from Noida to
Nasik. The material is then carried from Mumbai to Nasik within 5 hours to Nasik goodown, the
material is then shipped to Suzuki India Pvt. Ltd within 1 hour of order placed.
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Figure1.1 : Air Transportation system
Mahindra logistics act as intermediate between Maruti Suzuki India Ltd. and cooper standard
Pvt. ltd. As per the requirement, Suzuki places order for tires to Mahindra logistics.
Mahindra logistics now place the order for tires to cooper standard ltd. Cooper standard pvt ltd.
Provides this tyres to Mahindra logistics within 24 hours of the order being placed from Noida to
mumbai. The material is then carried from Mumbai to Nasik within 5 hours to Nasik godown,
the material is then shipped to Suzuki India pvt. Ltd within 1 hour of order placed.
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Figure 1.2: Rail Transportation system
Mahindra logistics act as intermediate between Maruti Suzuki India Ltd. and cooper standard
Pvt. ltd. As per the requirement, Suzuki places order for tires to Mahindra logistics.
Mahindra logistics now place the order for tires to cooper standard ltd. Cooper standard pvt ltd.
Provides this tyres to Mahindra logistics within 48 hours of the order being placed from Noida to
Mumbai by rail. The material is then carried from Manmad to Nasik within 3 hours to Nasik
godown, the material is then shipped to Suzuki India pvt. Ltd within 1 hour of order placed.
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Figure1.3 : Material racks.
In this organization the material is kept on moving rack. The racks are arranged suck that no
space remains between the racks as that space is covered by racks moving close to each other by
moving handle. This helps to maintain maximum stock within minimum space.
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Figure1.4: Wooden pallets.
Pallets are used to stack, store, protect, and transport materials in the course of being handled by
materials handling equipment such as forklifts, pallet jacks or conveyors, being stored in racking
or bulk storage or being positioned in transport vehicles.
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Figure 1.5: Material movement vehicle (forklift & pallet jack)
A forklift (also called lift truck, jitney, fork truck, fork hoist, and forklift truck) is a powered
industrial truck used to lift and move materials over short distances
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1.3 Organization Chart
OPERATION MANAGER
(SANDIP SALPURE)
EMPLOYEE
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CHAPTER 2
OUTLINE OF PROBLEM
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2.1 NEED AND SIGNIFICANCE OF THE STUDY
Material requirement planning for a manufacturing company end items to meet demand
the availability of sufficient production capacity must be co-ordinate with the availability of all
raw material and purchased.
Estimate of future demand is essentially the foundation on which all supply chain
decision are based.
The topic was material requirement planning oriented so researcher wanted to understand the
whole warehouse and collect all information regarding topic of the project.
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2.2 OBJECT OF THE PROJECT
The different types of needs of an organization are in the form of a different organization in
which a person has to serve and fulfill various objectives in order to achieve the objective / goal
by the management.
3) It enables the student to use the theoretical concept in the real business environment.
4) It is the best opportunity to communicate with the people. With their authorities and
responsibilities.
5) It creates awareness in students about the real organizational problems & challenges faced by
business.
7) It gives the opportunity for students to apply logic in the process of solving the problem.
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2.2 OBJECTIVES OF THE STUDY
Logistics Ltd.
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2.3 SCOPE OF THE STUDY
The scope of the study is for material requirement planning to manufacture industries companies
whose production is on the base of batch production.
1) The project may be useful for the companies those who want to improve material planning
requirement.
2) The scope of study shows how to design the transportation system in Mahindra Logistics ltd.
to utilize warehouse space efficiently.
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The study and conclusion is based on the ongoing process and interaction with the
authorities of the organizations.
CHAPTER 3
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RESEARCH METHODOLOGY AND DATA ANALYSIS
3.1 Research Methodology
3.4 Suggestions
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3.1) RESEARCH
Research in common parlance refers to a search for knowledge. One can also define
research as scientific & systematic search for pertinent information on specific subject. Research
comprises defining & redefining problem, formulating hypothesis, collecting, organizing,
evaluating data, researching conclusion & at last carefully testing the conclusion to determine
whether they fit the formulating hypothesis.
Exploratory research
As the term suggests, exploratory research is often conducted because a problem has not
been clearly defined as yet, or its real scope is yet unclear. It allows the researcher to familiarize
him/herself with the problem or concept to be studied and perhaps generate hypothesis to be
tested. It is the initial research before more conclusive research definition of conclusive research
is undertaken. Exploratory Research helps determine the best research design, data collection
method and selection of subjects, and sometimes it even concludes that the problem does not
exist?
Descriptive research
As the term suggests, exploratory research is often conducted, a problem has not clearly
defined as yet, or its real scope is as yet still unclear. It allows the researcher to familiarize
him/herself with the problem or concept to be studied and perhaps generated hypotheses
(definition of hypothesis) to be tested. it is the initial research, before more conclusive research
(definition of conclusive research) is undertaken. Exploratory research determine the best
research design, data collection method and selection of subjects, and sometimes it even
concludes that the problem does not exist!
3.1.1)
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First the researcher went to Operation manager to collect the information regarding process.
He gave the information regarding how material is sorted in the warehouse and how it is
managed.
Then the researcher met five employees of the company and asked them about how material is
loaded and unload in the warehouse.
The researcher was told about the transportation to another customer and verification of
documents.
The information was collected through informal talks and the practical working in the
organization
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3.2.1 MATERIAL REQUIREMENT PLANNING AT MAHINDRA LOGISTICS
LIMITED
Material Requirements Planning (MRP) is a computer-based production planning and entry
control system. MRP is concerned with both production scheduling and inventory control. It is a
material control system that attempts to keep adequate inventory levels to ensure that required
materials are available when needed. MRP is applicable in situations of multiple items with
complex bills of materials. MRP is not useful for job shops or for continuous processes that are
tightly linked
1. Ensure He availability of materials, components, and products for planned production and
for customer delivery.
2. Maintain the lowest possible level of inventory.
3Plan manufacturing activities, delivery schedules, and purchasing activities. MRP is
very suitable for manufacturing settings production activities, delivery schedules, and
purchasing activities
MIRP is especially suitable for manufacturing settings where the demand of many of the
components and sub-assemblies depend on items that face external demands for end items is
independent. In contrast, demand for components used to manufacture end items depend on the
demands for the end items. The distinctions between independent and dependent demands are
important in classifying inventory items and in in developing system to manage items within
each demand classification. MRP systems were developed to cope better with depended demand
items. The three major inputs of an MRP system are the master production schedule, the product
structure records, and the inventory status records. Without these basic inputs the MRP system
cannot function.
The demand for end items is scheduled on a number of time periods and recorded on a
master production schedule (MPS). The master production schedule shows how and when it is
wanted The MPS is developed from forecasts and firm customer orders for end items, safety
stock requirements, and internal orders. MRP takes the master schedule for end items and
translates it into individual time-phased component requirements
The product structure records, also known as bill of material records (BOM), contains
information on every item or assembly required to produce end items. Information on each item
such as part number, description, quantity per assembly, next higher assembly, lead times, and
quantity per end item, must be available. The inventory status records contain the status of all
items in inventory, including on-hand inventory and schedule receipts. These records must be
kept up to date, with each receipt, disbursement, or withdrawal documented to maintain record
integrity.
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MRP will determine from the master production schedule and the product structure records
the gross component requirements The gross component requirements will be reduced by the
available inventory as shown in the inventory status records.
Customer: The customer starts the chain of events when they decide to purchase a
product that has been offered for sale by a company. The customer contacts the sales
department of the company, which enters the sales order for a specific quantity to be
delivered on a specific date. If the product has to be manufactured, the sales order will
include a requirement that need to be fulfilled by the production facility.
Planning: The requirement triggered by the customer's sales order will be combined with
other orders. The planning department will create a production plan to produce the
products. To manufacture the products the company will.
Purchasing: The purchasing department receives a list of raw materials and services. The
purchasing department sends the purchase order to selected suppliers to the required site.
Inventory: The raw materials were received from the suppliers, checked for q accuracy
and moved into the warehouse. The supplier will then send an invoice to the company for
the items they deliver. The raw materials are stored until they are required by the
production department.
Production: Based on a production plan, the raw materials are moved inventory to the
area. The finished products ordered by the customer are manufactured using the
production and materials purchased from suppliers. After the items have been completed
and tested, they are stored back in the warehouse prior to delivery to the customer.
Transportation: When the finished product arrives in the warehouse, the shipping
department determines the most efficient method to ship the products so that they are
delivered on or before the date specified by the customer. When the goods are received
by the customer, the company will send an invoice for the delivered products.
In this organization required material received in weekly and planning of monthly requirement is
done. Company’s forecasting plan for every month is very systematic. Quarterly planning chart
for the period of May-2018 to July-2018
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is as below:
Rate/Day 84 80 83
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3000
2500
2000
Material
Ordered
1500 Material
used
Balance
1000 stock
500
0
43221 43252 01/072018
Interpretation
In this figure, company ordered to fix every month 2400 unit as per requirement the
buffer stock the company tries to minimize 20% stock available.
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In this table below forecasting of half year is shown, In the month of October and
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Interpretation:
Graph shows that material planning for six months in August and September material order
constant 2400 unit but due to festive season material requirement changes it show that large
number of stock requirement increased and decreased for next month.
Forecasting Method
Opinion and judgment based method is used. In this method of forecasting is depends on the
experience, knowledge and ‘sixth sense’ of company’s own people. In this method opinions and
judgments of individuals who are expected to have best knowledge of current activities and
future plans are collected and used to plan the future.
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MATERIAL HANDALING PROCESS AT MLL
Arrived material unload at the warehouse. The material is rapping with bubble wrap. The
material unloaded using forklift .material is sorted according to Weight,Size,Shape and quantity.
Flow chart
COOPER STANDARD PVT
LTD
(BY ROAD,TRIAN)
MLL
MATERIAL GATE
ENTRY
WAREHOUSE
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THE EXECUTION OF THE ABOVE FLOW CHART IS AS
BELOW :
Thecooper standard Pvt Ltd company is the company which provide the material to the Mahindra
logistics limited (MLL).this transportation is done by road ways or by railways. The material is
unloaded with the help of forklift at Mahindra warehouse.
Some material are arrived according to the location of the order some are arrived monthly while
some are arrived weekly. the records are maintained of every material arrived with the details
such as. Its weight,size,shape and quantity arrived.
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TRANSPORTATION PROCSS AT MAHINDRA LOGISTICS
LIMITED.
COOPER STANDARD
PVT LTD
BY (ROAD,TRIAN&AIR)
MLL
MATERIAL
GATE ENTRY.
WAREHOUSE
BY (ROAD, RAIL,AIR)
According to this scrutiny as per the location challans are prepared for the delivery to the
customer. Then after finalizing all the required documents and material. Then these all carton’s
are filled together for that particular customers delivery.
Then these material are delivery through roadways,air and airways to the customer.
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3.3 FINDINGS AND CONCLUSION
3.3.1 FINDINGS
Shortages due to quality issue:
Many times the material gets rejected due to quality issues. This error hampers the
production which indirectly increases cycle time and hence rate of production get reduce.
Technology:
In this company there is lack of technology for material handling such as RFID TAG,
Barcode system. Also there are no proper equipment for material handling. There is no proper
place to arrange the lot size numbering. Company is no providing the automated forklift.
CONCLUSION:
From the data interpretation research can conclude that efficiency of the working is
increases by effectively execution of the supply chain process. The wastage of material can be
reduced and accuracy of the work can also increase. The required for the operation can reduce.
SUGGESTION
Base on the above forecasting demand as material requirement will increase in the month
of October and November so arrange training and development workshops for employees
so that the employees should work skillful to get more output within given time period
and to tackle such situation. Company may need to run new training program and
creating the motivational environment in organization.
Material handling: This whole concept deals with material transportation and material
management parameter which are consider for material requirement material handling
way and its storage etc. are important so the method of handling should be proper by
considering its size, shape, weight and its value.
Develop the packing system with storage parameter there is one important parameter
should be also consider is packing system material should be prevented from few
environment effect like humidity, moisture heat etc. good packing system can protect the
material from such environment effect it increase reliability of the material.
CHAPTER 4
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PROJECT CONCLUSION
4.1 LEARNING OUTCOME THROUGH PROJECT
From the research it is found that how to take decision regarding material
requirement planning to utilize proper place in warehouse.
To divide the area wise cartons for easily treased to department and distribution
CHAPTER 5
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REFERENCES
1. www.futuresupplychain.com
2. www.mahindralogistics.com
3.www.google.com
4. www.wekepediya.com.
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