4.

DATA ANALYSIS
As We have already stated the Problem under Study, the various Points which we
will be studying under the Inbound & Outbound Classifications.

So Lets study the various KPI’s One by one, so as to understand how we achieve
them Currently.

 Inbound Operations –
- We have to study the Major Reasons behind the delay in Current KPI
Achievement. The Stock Built up lead time should be within 1.5 Days ,
but right now we are achieving only 3 days. Categorically Stock Built up
Lead Time indicates the time in hours/days taken to receive a single
shipment of Spares from Vendor to its final Storing in Storage Area. So
this 1.5 days is the time which should be taken to inward each shipment
( Trucks ) , segregate , sort and Finally store in Assigned Storage area .
- Currently we have Manpower strength of 15 and no. of Trucks
reported daily for Storing is 4. So in a week we get 28 trucks.
- Now in a week we have 56 Hours multiplied by no. of men to get
manhours (56 X 15 = 840 Manhours) as per W.B Labour Law. So to
Finish the storing of 28 trucks in 840 manhours, per truck we could get
30 manhours or 1.25 days, So the target of 1.5 days has been fixed to
preplan all activities and get maximum output from workers.
- Let’s Divide the Processes under Work – Receiving to Final Storing in
Location, into two Categories - Productive and Non Productive. And
analyse what is the approved Manhours and actual Manhours taken to
Complete the work.
- General Time analysis of activities are as below: (Table 1.3)

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Typical nos. of Items(Spare Parts) in a single Shipment - 300 +

Lets look at the Approved Timeline for each type of Activity meaning all these would required to be
Completed within this timeline
Man Hours Actual Man Hours Actual
Non Productive Work Productive work
Approved Manhours Approved Manhours

Inwarding Details of Segregating and

Truck - Create ASN & 1 2 sorting as per 8 20
Shipment No. Assigned Location

Placing of Vehicles in
Unloading Queue &
Direct Picking for
Final unloading of 3 4 2 6
B/O Spares
shipment into Bay
area
Arrangement of
Unloaded Materials as
per their Zone before 2 2 Storing Work 10 20
segregation and
sorting

Carrying the Palletised

Segregated Material to 6 10
their Location

Repacking of Items 2 4

Unit Packing 2 4

Total 16 26 20 46
-

Manhours Approved = 36

Manhours Actual = 72

As we Can see we have a total of 36 Manhours allotted for Completion of Storing

Activity of each truck. , but we are taking 72 hours to do Same . So instead of 28
trucks planned to store in a week . We can Only do Storing of ( 72 X 15 (no. of
Manpower) = 1080 , so for 28 trucks , it takes 16 days approx. to clear the Same. S

So on a Daily basis , if we are receiving any arbitrary no. of trucks , based upon our
Distribution Pressure, let us consider the below time Flow Chart, to understand
the daily delay happening :
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Trucks Storing Timeline ( @ With Current Manpower , it takes 72 Manhours to clear 1 Truck)
Daily
Manhours Trucks Pending
Sl No Date Day Reported Daily Manpower
available Stored Trucks
Vehicles
1 1-Jun Tue 4 15 120 1.6667 2.33
2 2-Jun Wed 4 15 120 1.6667 4.67
3 3-Jun Thu 4 15 120 1.6667 7.00
4 4-Jun Fri 4 15 120 1.6667 9.33
5 5-Jun Sat 4 15 120 1.6667 11.67
6 6-Jun Sun 4 15 120 1.6667 14.00
7 7-Jun Mon 4 15 120 1.6667 16.33
8 8-Jun Tue 4 15 120 1.6667 18.67
9 9-Jun Wed 4 15 120 1.6667 21.00
10 10-Jun Thu 4 15 120 1.6667 23.33
11 11-Jun Fri 4 15 120 1.6667 25.67
12 12-Jun Sat 4 15 120 1.6667 28.00
13 13-Jun Sun 4 15 120 1.6667 30.33
14 14-Jun Mon 4 15 120 1.6667 32.67
15 15-Jun Tue 4 15 120 1.6667 35.00
16 16-Jun Wed 4 15 120 1.6667 37.33
17 17-Jun Thu 4 15 120 1.6667 39.67
18 18-Jun Fri 4 15 120 1.6667 42.00
19 19-Jun Sat 4 15 120 1.6667 44.33
20 20-Jun Sun 4 15 120 1.6667 46.67
21 21-Jun Mon 4 15 120 1.6667 49.00
22 22-Jun Tue 4 15 120 1.6667 51.33
23 23-Jun Wed 4 15 120 1.6667 53.67
24 24-Jun Thu 4 15 120 1.6667 56.00
25 25-Jun Fri 4 15 120 1.6667 58.33
26 26-Jun Sat 4 15 120 1.6667 60.67
27 27-Jun Sun 4 15 120 1.6667 63.00
28 28-Jun Mon 4 15 120 1.6667 65.33
29 29-Jun Tue 4 15 120 1.6667 67.67
30 30-Jun Wed 4 15 120 1.6667 70.00

As we can see at the end of month , we have see 70 trucks – whose storing is not
done. The no. of Trucks reporting everyday will be more than 4 , and not fixed.

So, Practically we usually are doing Overtime work daily to the tune of 60+ hours ,
so as to accommodate our target.

And Secondly we are taking temporary Manpower In Some Days to reduce this
Storing Pending Trucks.
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 The Data Simulation (Raw Data Collected )for same is attached below :

Trucks Storing Timeline (@ With Current Manpower , it takes 72 Manhours to clear 1 Truck)

Daily Daily Overtime

Sl Extra Manhours Trucks Pending
Date Day Reported Approved (@2.5
No Manpower available Stored Trucks
Vehicles Manpower hrs/Man)

1 1-Jun Tue 4 15 10 200 62.5 3.6458 0.35

2 2-Jun Wed 4 15 5 160 50 2.9167 1.44
3 3-Jun Thu 5 15 10 200 62.5 3.6458 2.79
4 4-Jun Fri 6 15 5 160 50 2.9167 5.88
5 5-Jun Sat 4 15 5 160 50 2.9167 6.96
6 6-Jun Sun 3 15 6 168 52.5 3.0625 6.90
7 7-Jun Mon 2 15 7 176 55 3.2083 5.69
8 8-Jun Tue 0 15 8 184 57.5 3.3542 2.33
9 9-Jun Wed 2 15 4 152 47.5 2.7708 1.56
10 10-Jun Thu 3 15 6 168 52.5 3.0625 1.50
11 11-Jun Fri 4 15 5 160 50 2.9167 2.58
12 12-Jun Sat 4 15 8 184 57.5 3.3542 3.23
13 13-Jun Sun 5 15 9 192 60 3.5000 4.73
14 14-Jun Mon 6 15 10 200 62.5 3.6458 7.08
15 15-Jun Tue 4 15 5 160 50 2.9167 8.17
16 16-Jun Wed 3 15 3 144 45 2.6250 8.54
17 17-Jun Thu 2 15 7 176 55 3.2083 7.33
18 18-Jun Fri 1 15 8 184 57.5 3.3542 4.98
19 19-Jun Sat 0 15 4 152 47.5 2.7708 2.21
20 20-Jun Sun 2 15 5 160 50 2.9167 1.29
21 21-Jun Mon 3 15 6 168 52.5 3.0625 1.23
22 22-Jun Tue 6 15 7 176 55 3.2083 4.02
23 23-Jun Wed 0 15 8 184 57.5 3.3542 0.67
24 24-Jun Thu 3 15 9 192 60 3.5000 0.17
25 25-Jun Fri 4 15 10 200 62.5 3.6458 0.52
26 26-Jun Sat 5 15 5 160 50 2.9167 2.60
27 27-Jun Sun 6 15 6 168 52.5 3.0625 5.54
28 28-Jun Mon 3 15 4 152 47.5 2.7708 5.77
29 29-Jun Tue 2 15 8 184 57.5 3.3542 4.42
30 30-Jun Wed 1 15 9 192 60 3.5000 1.92
Total Details 97 450 202 5216 1630 95.083

So at the end of the month we have only 2 trucks Storing Pending.

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The above could only be achieved by increasing daily Manpower Count ( Daily
increase of 70% Manpower) and Daily Overtime hours increase to accommodate
to store .

So at the end of the month , if we could calculate the no. Of Manhours required
Extra , it will be : Overtime Hours( Total) + Extra Manpower Hours (Total)

= 202 ( Total Extra Manpower) * ( 8 hrs daily + 2.5 hrs Overtime )

= 202 * 10.5 = 2121 Manhours.

Whereas Total approved Manhours without any Overtime is = 450 * 8 = 3600

Manhours.

So , the Extra manhours is 59% of the Approved Manhours .

So our Management is spending the double amount to achieve our Target.

So our Main Focus will be to make the Processes arrangement in such a way so
that , these extra costs could be reduced and finally we are able to do the all Jobs
with Close to Stipulated Manpower with minimal Overtime.

The Impact of Increasing Costs and extra duty and facilities needs to be
minimized. So we need to do a core analysis of all the basic processed involved in
“Unloading to Storing Work “.

In that regard, w.r.t table 1.3 , we can see how the non productive Hours have
impacted the rise in total hours in this operation.

Maximum Approved Non Productive Hours = 16 hours.

Actual Non Productive Hours = 26.

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 This increase of 10 hours in Non Productive Hours need to be further reduced.

Major Reasons behind increase in these Hours are –

1) Generally , we are not receiving more than 250- 300 Lines on average basis per
truck. But in some trucks /shipments, we may receive more than 700 + Lines ,
so the Work to be done for that truck increases 3 times.
2) As because our working Space and Storage Space is a static One , with
increasing shipments day by day , we are at neck deep storage problem . There
isn’t enough Space to store the materials , so the labourers have to manually
find out space to store even 1 single item , which could even take > 2 hrs for a
single item.
So on an immediate basis we need to provide makeshift/permanent Storage
Location .
3) Most of the materials could be moved to Cross – Docking stage by getting
tickets from Inventory team , all the Back Order items could now be directly be
picked and packed from unloading bay , skipping the need for them to be
stored again. So the Productive hours could be reduced.
4) Most of the Materials need to be repacked again , since they Come in
Damaged Format so we need take check Same with Vendor Teams to avoid
that.

So in light of these factors , some major Location reshifting , new Space

construction has been Planned so as to reduce the time wasted in Searching for
storage Locations for the Spare Parts.

So Some of those activities carried out by me for my Company are as below :

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In above activities , we have made a separate Location structure for Bulk Items
whose Volume is very high and nearly in huge Quantities , so there is no frequent
picking/storing. So this area will not impact any of our normal flow of Operations.

So we utilize the back side of the Location to provide us with very important Storage
Space.
This Change was planned by analyzing our Location Stock , wherein we found
a high stock of bulk Items. These bulk Items take huge amount of Space ,
thereby not allowing other Small items Storage space on the shelfs

So we needed to make some Changes to the Layout of Our Receiving Area :

Our Current WHS with its various Locations looks in below manner :

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So So our main focus Point is on Inbound Receiving & sorting area.

That area used to look like below :

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 Sorting Receiving

But now , it looks like below , after the changes

Sorting Receiving

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 the Checquered boxes indicate the Location Space now Created which is a
fixed one.

So from creation of a new Zone , we have increased the area of the Location by 100
Sq. metres. This will help us to store the materials which are in Bulk quantity easily
so that we can use the space taken by the bulk items previously for quick and easy
available materials.

So now the Manhours analysis Interprets as below :

Typical nos. of Items(Spare Parts) in a single Shipment - 300 +

Lets look at the Approved Timeline for each type of Activity meaning all these would required to be
Completed within this timeline
Man Hours Actual Man Hours Actual
Non Productive Work Productive work
Approved Manhours Approved Manhours

Inwarding Details of Segregating and

Truck - Create ASN & 1 2 sorting as per 8 10
Shipment No. Assigned Location

Placing of Vehicles in
Unloading Queue &
Direct Picking for
Final unloading of 3 4 2 6
B/O Spares
shipment into Bay
area
Arrangement of
Unloaded Materials as
per their Zone before 2 2 Storing Work 10 10
segregation and
sorting

Carrying the Palletised

Segregated Material to 6 4
their Location

Repacking of Items 2 4

Unit Packing 2 4

Total 16 20 20 26

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 So we can understand that the Actual manhours taken to store 1
shipment/Truck has drastically reduced.

Approved Manhours= 36

Actual Manhours Taken = 46

So there is a reduction of (72- 46 ) = 26 manhours, this will have a positive impact

on our capability to store the materials in much better Capacity

So for the Inbound System to work effectively , we have created new Locations
and streamlined our Processes.

Changes in Procedure –

- Bulk items storing to be done near to receiving area so that they do not
take up maximum space in our Location Space.
- Maximum of the BO to be Cleared via Direct Picking and packing to
Dealers, so negating the need to store the materials and pick
separately.
- More Blank /empty Locations are available in Location Space, so need
a dedicated team setup to keep them available at all times o manual
labourers , so as to reduce the non Productive Man Hours in each
Aspect.

Impact of this Change in Procedure :

Keeping in mind, that the no. trucks pending at the end of month would be close to
zero, lets look at below simulation , wherein we could store 1 single shipment with
46 manhours.

The result is quite obvious , there would be a reduction in OT hours and Total extra
manhours , The exact reduction can be easily found out using below Calculation.

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Note : We Planned beforehand to provide any OT to Manpower , since during it costs
double the wages against normal Salary.

Let’s look at the simulation below :

Trucks Storing Timeline (@ With Current Manpower , it takes 46 Manhours to clear 1 Truck)

Daily Daily Overtime

Sl Extra Manhours Trucks Pending
Date Day Reported Approved (@2.5
No Manpower available Stored Trucks
Vehicles Manpower hrs/Man)

1 1-Jun Tue 4 15 3 144 0 3.1304 0.87

2 2-Jun Wed 4 15 3 144 0 3.1304 1.74
3 3-Jun Thu 5 15 3 144 0 3.1304 3.61
4 4-Jun Fri 6 15 3 144 0 3.1304 6.48
5 5-Jun Sat 4 15 3 144 0 3.1304 7.35
6 6-Jun Sun 3 15 3 144 0 3.1304 7.22
7 7-Jun Mon 2 15 3 144 0 3.1304 6.09
8 8-Jun Tue 0 15 3 144 0 3.1304 2.96
9 9-Jun Wed 2 15 3 144 0 3.1304 1.83
10 10-Jun Thu 3 15 3 144 0 3.1304 1.70
11 11-Jun Fri 4 15 3 144 0 3.1304 2.57
12 12-Jun Sat 4 15 3 144 0 3.1304 3.43
13 13-Jun Sun 5 15 3 144 0 3.1304 5.30
14 14-Jun Mon 6 15 3 144 0 3.1304 8.17
15 15-Jun Tue 4 15 3 144 0 3.1304 9.04
16 16-Jun Wed 3 15 3 144 0 3.1304 8.91
17 17-Jun Thu 2 15 3 144 0 3.1304 7.78
18 18-Jun Fri 1 15 3 144 0 3.1304 5.65
19 19-Jun Sat 0 15 3 144 0 3.1304 2.52
20 20-Jun Sun 2 15 3 144 0 3.1304 1.39
21 21-Jun Mon 3 15 3 144 0 3.1304 1.26
22 22-Jun Tue 6 15 3 144 0 3.1304 4.13
23 23-Jun Wed 0 15 3 144 0 3.1304 1.00
24 24-Jun Thu 3 15 3 144 0 3.1304 0.87
25 25-Jun Fri 4 15 3 144 0 3.1304 1.74
26 26-Jun Sat 5 15 6 168 0 3.6522 3.09
27 27-Jun Sun 6 15 6 168 0 3.6522 5.43
28 28-Jun Mon 3 15 6 168 0 3.6522 4.78
29 29-Jun Tue 2 15 6 168 0 3.6522 3.13
30 30-Jun Wed 1 15 6 168 0 3.6522 0.48
Total Details 97 450 105 4440 0 96.522

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So we are having Close to Zero Trucks Pending at the end of the month.

So , now our Total Extra Manhours is 105 * 8 = 840 Manhours as against 2121 hours
observed previously.

So , we achieved a reduction of 1281 hours ( 60 % ) in Manhours per month.

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