Study The Supply Chain AND Its Activities

Supply chain and its activities
An industry internship project On
STUDY THE SUPPLY CHAIN AND ITS ACTIVITIES At
Mungi Engineers Pvt. Ltd. Automotive Division, Zaheerabad, Submitted By:HALIKHED KRUPAKAR Reg. NO: 11210101 Roll No: RQ3202B54
DEPARTMENT OF MANAGEMENT LOVELY PROFESSIONAL UNIVERSITY
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CERTIFICATE
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DECLARATION
I declare the project titled Study the Supply Chain and Its Activities is done by me and has not been submitted in part or full to any authority for award of any degree/diploma.
Place:
Signature
Date:
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ACKNOWLEDGEMENT
I feel Privileged to be associated with Mungi Engineers Pvt. Ltd.Company, which is one of the leading companies in automotive sector. I deeply express my gratitude to Mungi Engineers Pvt. Ltd.for giving me an opportunity to do my industrial internship program. The past 45days has been a great learning experience for me.
I would like to take this opportunity to heartily thank my corporate guide Mr. Chandrashekar, Asst. manager, Purchase, and Mr. Girish, Asst manager, QA for their co-operation and guidance. They always gave me valuable suggestions to handle critical situations and ideas to get the required information for the completion of my project.
First and the foremost my intellectual debt is to our faculty guide Miss Gurpreet, who has contributed significantly towards the completion of the project. She has provided the guidelines on which this project was made.
I am also thankful to Mr.Naveen, Executive (production), Mr Niranjan, Executive (HR) who have been of great support; their support has made our cold calling of ease.
I am also very much thankful to all members of Mungi Engineers Pvt. Ltd. for their invaluable support throughout the project. Their guidance always showed me the proper way to tackle situations I came across during my Project.
Lastly, I thank, Mr. Vipin Agarwal , Head of SCM and Mr. Tushar Kapse, HR Manager for their constant encouragement without which this project would not be possible.
I hope this report reflecting my learning in the past six weeks is as beneficial to the organization as it has been to me.
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TABLE OF CONTENT Chapter 1 Introduction 1.1 Purpose of the project 1.2 Scope of the study 1.3 Objective of the project Chapter 2 company profile 2.1 Mungi group 2.2 Incorporation-history 2.3 Overview 2.3.1 Plant and locations 2.3.2 New technology at Mungi 2.3.3 Products 2.3.3.1 Pressed and fabricated assembly 2.3.3.2 Coach building 2.3.3.3 Pressed and fabricated precision components 2.3.4 Clients 2.3.5 Departments in the plant
Page Nos 8 10 10 10 11 11 11 12 12 14 15 15 16 16 17 18
Chapter 3 Functional areas of the plant 3.1 Press shop 3.2 Alfa body shop 3.3 Bus body shop 3.4 Tipper body shop 3.5 Paint shop 3.6 Maintenance Chapter 4 Supply chain management 4.1 Major objectives of supply chain management 4.2 Key elements to supply chain 4.3 Production elements of supply chain
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Table of content contd.. 4.4 Supply elements of supply chain 4.5 Inventory elements of supply chain 4.6 Location elements of supply chain 4.7 Transportation elements of supply chain 4.8 Information elements of supply chain 4.9 Drivers of supply chain performance 4.10 Supply chain management 4.10.1 SCM activities 4.10.1.1 PPC 4.10.1.2 Procurement 4.10.1.3 Receiving and warehousing 4.10.1.4 Factory logistics Chapter 5 Procurement process at Mungi 5.1 Procurement process 5.2 Selection of new supplier 5.3 Development of new suppliers 5.4 Development of new parts 5.5 Type and extent of control 5.6 Procedure for purchasing activities 5.6.1 5.6.2 5.6.3 5.6.4 Raw material/ bought out/ consumables/ capital items For one time purchases Verification of purchased product Supplier performance monitoring 22 22 23 23 23 23 24 25 25 25 27 30 32 32 32 32 33 33 33 33 34 35 35 36 36 36 36 37
5.7 Supplier quality management system development 5.8 Training 5.9 Continual improvements 5.10 5.11 Overview Output
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Table of content contd.. Chapter 6 Warehouse management at Mungi 38 38 38 38 39 39 39 40 41 42 44 44 44 46 47 50 50 52 53
6.1 Procedure for receipt control 6.2 Issue of the material from the stores 6.3 Bought out parts 6.4 Periodic verification of stock 6.5 Training 6.6 Continual improvements 6.7 Review Chapter 7 Data processing, analysis and findings Chapter 8 Recommendations ands suggestions Chapter 9 Methods and tools supporting suggestions 9.1 Models for procurement 9.1.1 Milk run system 9.1.2 DOL (direct on line)/JIT process 9.1.3 Cross dock system 9.2 Models for stores 9.2.1 Kanban 9.2.2 Storage locations 10. Bibliography
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ABSTRACT:
Supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what processes are to be considered, what sub-processes and activities are contained in each process, and how the processes interact with each other and with the traditional functional silos. This project report is an attempt to study the activities involved in Supply chain management of Mungi Engineers Pvt. Ltd. Company. In this report mainly focus on procurement activity and ware housing activity as this project was undertaken in a industry and these two activities were very vital as per industrial functioning is considered. There was little scope in procurement process to improve as the data required for the study was not provided by the company but still there are some suggestions like DOL, Milk Run and Cross Docking methods could be implemented at larger level to improve the procurement process. In stores as per the observation there can be lot of improvements that can be done by the company. Improvements in stores fall in two as per financial factor. Company can make some basic change with less investment i.e. installing racks, pallets, maintain cleanliness etc and other improvements can be made in stores to improve material accounting like bar coding system, kan ban system. The Supply chain and activities involved are studied and required suggestions were made in this report.
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1. INTRODUCTION Increasingly, supply chain management is being recognized as the management of key business processes across the network of organizations that comprise the supply chain. While many have recognized the benefits of a process approach to managing the business and the supply chain, most are vague about what processes are to be considered, what sub-processes and activities are contained in each process, and how the processes interact with each other and with the traditional functional silos.
In this project, I provide strategic and operational descriptions of each supply chain processes identified as well as illustrations of the interfaces among the processes and how a process approach can be implemented within an organization. My aim is to provide managers with a framework to be used in implementing supply chain management, instructors with material useful in structuring a supply chain management course, and researchers with a set of opportunities for further development of the field.
Now that the companies have implemented processes within the firm, they need to integrate them:
Streamlining cross-company processes is the next great frontier for reducing costs, enhancing quality, and speeding operations. It is where this decades productivity wars will be fought. The victors will be those companies that are able to take a new approach to business, working closely with partners to design and manage processes that extend across traditional corporate boundaries. They will be the ones that make the leap from efficiency to super efficiency. They should also focus on the importance of process integration in supply chain management. The piece that seems to be missing is a comprehensive definition of the processes that constitute supply chain management.
How can companies achieve supply chain integration if there is not a common understanding of the key business processes? It seems that in order to build links between supply chain members it is necessary for companies to implement a standard set of supply chain processes. Practitioners and educators need a common definition of supply chain management, and a shared understanding of the processes.
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The recommended definition of supply chain management as: Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders.
There are four key processes that are been implemented within and across the supply chain at Mahindra zaheerabad. Planning procurement receipts/dispatch factory logistics
PROCURE MENT
PPC
SCM
FACTORY LOGISTIC S
STORES/ RECEIPT S
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1.1 Purpose of the project
The project aims to provide more details on the processes and their sub-activities that comprise the supply chain processes which can lead to several improvements.
1.2 Scope of the study . The project was carried out to find out the sub-activities involved in purchase and stores which are part of SCM. This project is an attempt to provide alternatives to Mungi Engineers Pvt. Ltd. so that they can bring about changes in various departments of their organization which will help them to improve the efficiency of activities in SCM by reducing consumed time.
1.3 Objective of the project To study the processes and their sub-activities in SCM at Mungi Engineers Pvt. Ltd. To find the scope of improvement in process of purchase and in stores. To provide alternative changes for time reduction of various activities in Mungi Engineers Pvt. Ltd. To get optimum solutions.
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2. COMPANY PROFILE:
2.1 MUNGI GROUP Mungi Group is an engineering based manufacturing company engaged in Automotive Sheet Metal Stamping, its aggregates, Machined Assemblies and Bus Body Building. Our business model being focused to the Auto OEM's over last 25 years. Our team of professionals is constantly meeting the exciting challenges of creating solutions that meet the automotive industrys ever- changing demands. We have the depth and breadth of expertise in the successful application of customized, engineered and special purpose sheet metal based aggregates including Bus Body Building.
2.2 INCORPORATION-HISTORY: 1984 : Mungi Group established 1995 : Unit-2 of Mungi Group established 1997 : Zahirabad factory commissioned 1998 : ISO 9001 certification awarded 1999 : Evolved from a built to print vendor to a product development company with art to part capability 2003 : Mungi Engineers Pvt Ltd (MEPL) , Nashik established 2005 : Sales turnover figure crossed INR 100 crore : TS 16949 certificate awarded : MEPL-Chakan established : Heavy Press Shop established at Nashik 2006 : Best Supplier award from M/s Mahindra & Mahindra Ltd Best VAVE and Cost Management Supplier award performance 2009 : Best Quality Supplier award from M/s Mahindra & Mahindra Ltd 2010 : Achived sales turnover INR 243 crore Business plan for 2011- INR 350 crore 2012- INR 525 crore
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2.3 OVERVIEW: 2.3.1 PLANT AND LOCATIONS: Mungi group has 5 production facilities at 3 different locations including Nashik, Chakan, Zahirabad. Appx - 3.5 Lacs Sq.Ft. Covered area.
The core philosophy of Mungi Group is to help enhance customers performance by delivering unique value to them via our excellent product quality & service. The plants are well equipped with all the machining & testing facilities to deliver a world class product.
NASHIK PLANT: Heavy Press Shop : Heavy Press Shop with Heavy duty Press of 1000T Mech. & 1000T Hydraulic also various 600T, 400T & 300T Mech battery of presses to cater to the light, medium & heavy Sheet Metal Stamping with skin panel. Assy Line : Nasik Plant is having installed per day capacity of producing 450 Load Body Cargos & various size & shapes from its Semi Auto Assy. lines with Multi Spotter.
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Tool Room : Nasik Tool Room is having all requisite setup for its captive use for manufacturing & maintenance of tools & fixtures. Roll Form Line : Roll Form Line with on line Punching & Spot welding for commercial vehicle parts.
ZAHIRABAD PLANT: 1) Engaged in various bus body building for OEMs & State Transport Units.(STU) 2) Press shop with 300T & 600T mechanical 3) Assembly line for complete cabin with body for commercial vehicles 4) Having installed capacity of coach manufacturing 110 buses/month 5) One of the few coach building company having TS certified facility Complete modern infrastructure presses. load
mono-couque for 3 wheeler & various
CHAKAN: Already established manufacturing plant for Salisbury Tube Assy., Banjo Housing Assy. & BIW Assy. Line. New Modern Green Field Plant coming up with Stamping facilities from 200T Mechanical Press to 1500T Hydraulic Press and Sheet Metal Assy. Facilities.
Heavy Press line Assembly Line for Cargo body
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Panel Inspection Facility
Indigenously Built Fixturized Assembly Line
Feeder Line for Stamped assemblies
Tool room
Press shop
2.3.2 NEW TECHNOLOGY AT MUNGI: Electro Deposition ( CED ) Robotic Welding CNC Folding machine Robotic 6 axis laser cutting Hot stamping Tailor welded blanks
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2.3.3 PRODUCTS: 2.3.3.1 PRESSED AND FABRICATED ASSYEMBLY
Banjo Beam Compnent for Front Door Assy. For MUV/SUV MUV & LCV
Cargo Load Body Maxi Truck Junior for LCV
Cargo Load Body on Scorpio Floor Panel Assy. For LCV Cargo Load Body LTV Cargo platform (Export) Cargo Load Body
Rear Floor Assy. For Back Door Assy. For SUV/MUV SUV/Muv Rear & Center Floor Assy. For SUV/MUV
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2.3.3.2 COACH BUILDING:
2.3.3.3PRESSED AND FABRICATED PRECISION COMPONENTS:
Trailing Arm Assy. For Three wheeler
Banjo Beam Assy.for passenger vehicle /LCV
Rear Axle Tube Assy for MUV/SUV/LCV
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2.3.4 CLIENTS: Mungi Group has an impressive track record of services for customers who are the leaders in their segments. The group has proven itself to give our customers a competitive advantage with our worldclass quality, outstanding customer service and competitive pricing.
Mahindra & Mahindra Ltd. Ashok Leyland, Chennai TATA Motors, Pune Spicer India Ltd. Various State Transports Undertaking.
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2.3.5 DEPARTMENTS IN THE PLANT Operations. o Production o Maintenance o Design and development Stores. Quality assurance. Purchase and customer co-ordination. HR and Administration. Accounts.
3. FUNCTIONAL AREAS OF THE PLANT 3.1 PRESS SHOP: The production of a Mungi automobile begins in the press shop, where huge steel strips weighing several tons are cut into blanks. The raw material has a thickness ranging between 0.5 to 6.0 millimetres.
At several stations within the plant the individual blanks are fed into powerful presses, where they are shaped into doors, bonnets, roof panels and side body frames. The sheet metal is pressed, perforated and cut using precision tooling made for the specific body components. 3.2 ALFA BODY SHOP: The raw material from the supply module is brought and kept in pallets. Workers will assemble them into body in the assembly line which again has some parts which are to be assembled in the sub assembly-lines nearby. So after this body is sent to metal finish line to finish the surface. The following processes are used in the body shop:
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Nut welding. Grinding. Buffering.
In body shop the M&M ALFA BODY and the rear cargo of M&M trucks are manufactured. 3.3 BUS BODY SHOP: After the material is pressed according to the required shape the actual production of the bus body building starts, here the stages are further divided into three divisions o Assembly of structures: In this stage the parts are welded as per the bus body structure and an outer body if the bus is made built with trusses. It the important stage of production as it with holds all the force and the inner structures actually resemble the outer structure. So it is important that the outer structure assembly is produced with high accuracy and under less tolerance limits. o Inner and outer panelling: In this stage the sheet metal is riveted and welded to the structure inside as well as outside so as to prepare the bus to ready to dispatch for painting. o Final assembly: Before reaching the final assembly the bus body is sent to paint shop, final assembly i.e. fixing of all the trim parts is done. Here seats, interiors, lights, glasses etc parts are attached to the bus body to make it ready for pre dispatch inspection. 3.4 TIPPER BODY SHOP: There is a separate production unit for tipper production, in this unit high capacity press machines are installed as the thickness of the cargo of truck is very thick and pressing of required material is done in that unit itself. Firstly the driver cabin is prepared in production process of building the driver cabin. Alternatively the material is pressed for required shape of cargo and the pressed components are welded together with the help of high skilled welding workers who welding work is of high quality. After cargo is prepared the cargo is placed on chassis of the vehicle and hydraulics is fixed and the chassis and cargo assembly is done. Finally painting is done.
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3.5 PAINT SHOP: In paint shop painting of all the vehicles is done. In Mungi painting is done manually by high skilled workers. 3.6 MAINTENANCE: Maintenance department works as the service unit for whole of the plant and its machinery. It is responsible to make sure work will go on with any production losses due to breakdowns. Gurukul training centre: in this company there is separate training centre for newly recruited to teach them terms and conditions, SOPs and required knowledge will be given before assigning the job. 4. SUPPLY CHAIN MANAGEMENT
Supply Chain Management is the integration of key business processes from end user through original suppliers that provides products, services, and information that add value for customers and other stakeholders. The concept of Supply Chain Management is based on two core ideas. The first is that practically every product that reaches an end user represents the cumulative effort of multiple organizations. These organizations are referred to collectively as the supply chain. The second idea is that while supply chains have existed for a long time, most organizations have only paid attention to what was happening within their four walls. Few businesses understood, much less managed, the entire chain of activities that ultimately delivered products to the final customer. The result was disjointed and often ineffective supply chains. Supply chain management, then, is the active management of supply chain activities to maximize customer value and achieve a sustainable competitive advantage. It represents a conscious effort by the supply chain firms to develop and run supply chains in the most effective & efficient ways possible. Supply chain activities cover everything from product development, sourcing, production, and logistics, as well as the information systems needed to coordinate these activities.
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The organizations that make up the supply chain are linked together through physical flows and information flows. Physical flows involve the transformation, movement, and storage of goods and materials. They are the most visible piece of the supply chain. But just as important are information flows. Information flows allow the various supply chain partners to coordinate their long-term plans, and to control the day-to-day flow of goods and material up
and down the supply chain. 4.1. Major objectives of supply chain management To provide an uninterrupted flow of materials, supplies and services required to operate the organization Minimize inventory investment and loss Maintain and improve quality Create relationships with competent suppliers Set standards for supplies Get supplies and services at lowest cost Achieve harmonious, productive working relationships with other departments Keep purchasing administrative costs low Improve the organization's competitive position
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4.2. Key elements to a supply chain Production Supply Inventory Transportation Information
4.3. Production Element of Supply Chain Focus on what customer & market demand Resource Management Internal sourcing (what and which plants) Outsourcing to capable suppliers Capacity Management Workload schedules Equipment plans (acquisition/maintenance) Order Management Quality control
4.4. Supply Element of Supply Chain Partners in the Supply Chain Assessing core/strategic competencies Identifying capable suppliers Making sourcing decisions Relationship management General Procurement
4.5. Inventory Element of Supply Chain How Much Inventory and Where to Store It Analysis of fluctuations in demand Identification of optimal storage locations in support of *Customer demand
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Identification of optimal stock levels by location Establishing inventory ordering policies
4.6. Location Element of Supply Chain Strategic placement of production plants, distribution and stocking facilities Understand customer markets Perform Locating decisions for production and stocking facilities Lightweight/market driven near the end-user Heavy industries near raw material source Evaluation of tax and tariff issues and transportation accessibility
4.7. Transportation Element of Supply Chain Supporting inventory decisions and customer demand requirements (transportation is up to 30% of Product Cost!) Identify customer service levels Identify model forms Air, Ship, Rail and Ground. Establish strategic transportation partnerships
4.8. Information Element of Supply Chain Obtaining, linking and leveraging information across the Supply Chain Organization of information. Linking computers through networks and the internet. Streamlining information flow. Information warehousing. Decision support tools
4.9. Drivers of Supply Chain Performance: The following drivers interact with each other to determine the supply chains performance in terms of responsiveness and efficiency. a) Facilities: These are the actual physical locations in supply chain network where product is stored, assembled, or fabricated. The two major types of facilities are
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production sites & storage sites. Decisions regarding the role, location, capacity & flexibility of facilities have significant impact on the supply chains performance. b) Inventory: It encompasses all raw materials, work in process and finished goods within a supply chain. Changing inventory policies can dramatically alter the supply chains efficiency and responsiveness. c) Transportation: It entails moving inventory from point to point in supply chain. Transportation can take the form of many combinations of modes and routes, each with its own performance characteristics. It has a large impact on efficiency. d) Information: It consists of data & analysis concerning facilities, inventory, transportation, costs, prices, and customers throughout the chain. Information is potentially the biggest driver of performance in the supply chain because it directly affects each of the other drivers. e) Sourcing: It is the choice of who will perform a particular supply chain activity such as production, storage, transportation, or the management of information. At the strategic level, these decisions determine what functions a firm outsources. Sourcing decisions affect both responsiveness and efficiency of a supply chain. f) Pricing: It determines how much a firm will charge for goods and services that it makes available in the supply chain. Pricing affects the behavior of the goods or services, thus affecting supply chain performance. 4.10 SUPPLY CHAIN MANAGEMENT AT MUNGI BROS, ZAHEERABAD. Supply Chain Management is a pull system extending from suppliers supplier to customers customer. It is required to 1. To deliver the product to customer with minimum lead time. 2. To deliver product to customer with required quality. SCM does the following activities: Production planning and control Procurement Receiving & Warehousing (Storage of Parts) Factory Logistics
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4.10.1.1 PRODUCTION PLANNING & CONTROL (PPC): A production (or manufacturing) planning and control (MPC) system is concerned with planning and controlling all aspects of manufacturing, including materials, scheduling machines and people, and coordinating suppliers and customers. An effective MPC system is critical to the success of any company. An MPC system's design is not a one-off undertaking; it should be adaptive to respond to changes in the competitive arena, customer requirements, strategy, supply chain and other possible problems. Production planning & control is a central coordinating agency involved in the coordination amongst plant and marketing through central PPC. Planning co-ordination for rolling and making the vehicle RFD as per orders put by marketing. 4.10.1.2 PROCUREMENT The area of procurement is concerned with purchasing & arranging inbound movement of materials, parts, and/or finished inventory from suppliers into assembly line or retail stores. In manufacturing, the process of acquisition is typically called as Procurement. The process is referred to as inbound logistics & the term procurement will include all types of purchasing. The term material is used to identify inventory moving inbound to an enterprise, the term product is used to identify value added inventory that is sold to customers. ACTIVITIES INVOLVED IN PROCUREMENT: Development of Components Commercial negotiations & price finalization Procurement of Components Other allied purchase activities are Consumable Purchases, Tools & machinery spares procurement and capital goods procurement. Other functions are Engineering Changes to the components. Components supplies to SBU against back orders.
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PURCHASING DATA: Purchase orders shall be released on existing vendor having vendor code in SAP. Purchase orders shall necessarily contain: A) Part Details: Part Number, Change Letter Ref., Packing Instructions for direct materials other than chemicals and hardware. B) Commercial details: Terms of payment delivery, unit rate, statutory levy. Purchase Order's / Amendments shall be Signed by personnel in grade of Materials Manager/Head-SCM Or above Schedules shall be released for those supplier's Who shall be having Purchase Order based on production requirement. Incidences of premium freight viz Air freight, Special Tempo & Rail Freight will be approved by Head-SCM and above. A record for the same will be maintained.
ENGINEERING CHANGE NOTE Engineering changes to the existing components are discussed in Pre EN, ENs are reviewed & implemented. Purchasing function also involved in operation of KANBAN, DOL, Milk Runs on day to day.
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Supplier replenishes the stocks against trigger for all DOL components.
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Based on consumption and Production plan the next days requirement will be intimated to the vendors for all Milk Run items.
Trigger is mailed to vendors for supply of KANBAN items. Rest of components which are not covered in any of above methods action is initiated by buyer for supplies from vendors.
4.10.1.3 RECEIVING & WAREHOUSING It involves inbound & outbound of materials, Inventory Management & Factory Logistics. The activities involved in receiving and warehousing are
MATERIAL RECEIVING
Receive following documents from transporter/supplier. a) Invoice cum challan - 2 copies. b) Inspection reports (if specified by SQA) c) Lorry receipt d) Inspection report (Where ever specified) Check invoice cum challan for correctness & completeness of following details. Vendor code, Part no, P.O. no, number of packs, consignee address, storage location etc.
PCS/GR GENERATION
Informing discrepancies to Procurement Team & obtaining ASN and clearance. providing all the documents to the receipts department and checking the documents to make pcs. Prepare the PCS if all documents are correct & complete. After preparation of PCS, allow transport vehicles inside the company for unloading of material. After unloading material, check quantity & signature of counting operator of PCS and provide stamp, sign on lorry receipts along with deficiencies reported by Counting operators.
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Obtain transporters signature on documents for deficiencies in delivered material (if any). Give one copy LR to transporter. Retain one copy of lorry receipt. Provide payment stamp on second copy of lorry receipt, hand over to transporter. Give inspection reports sent by supplier to SQA Team. File lorry receipts (LR's).
UNLOADING OF MATERIAL
Receive invoice cum challan from transporter. Verify unload at Unloading point. If it is not OK inform concern Receiving Officer. Arrange for suitable storage bins as indicated on PCS for unloading and inform transporter to unload the material. Count no. of packs / loose items, check for proper condition of packs / items, identification on packs etc. Count the items in cases at random by following methods. a. Select a case at random. b. Unpack properly. c. Count the items manually or with electronic weighing cum counting scale, if required. d. Calculate total quantity of lot considering the physical quantity of opened pack and total number of packs. e. Do 100% counting of high value parts,
Ensure bin tag is provided on each bin mentioning details like part number, quantity & date of receipt (applicable for the items stored in crates / bins / pallets). Record physical quantity received on PCS and put signature on the
documents. Inform Doc. Processor about the discrepancies, if any. Attach material identification tag on material and handover the remaining papers to transporter. Shift the material to inspection area with suitable material handling equipment. Unload DOL parts in the respective storage locations on Assembly Line after scrutiny of the documents as mentioned in the point 1 and inspection OK remarks on the PCS.
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SENDING REJECTIONS BACK TO VENDOR (Vendor returns) Shift all the rejected material to rejection area. Re-count the material for physical quantity as mentioned in rejection report. Re-pack the loose material in bags / boxes and provide identification which includes part number, description, quantity packed, and vendor. Load the material in vehicle & prepare the loading form. Post the shipping document in SAP & put shipping number on loading form.
SENDING REJECTIONS BACK TO VENDOR (Receipt rejections) Hand over loading form to Excise Cell for the invoice preparation. Check the Invoice as per loading form & obtain transporter sign on Dispatch Advice for material received in good condition. Obtain authority's signature on invoice & handover the related documents to transporter.
SENDING REJECTIONS BACK TO VENDOR (Line rejection) Receive the line rejection material along with reservation. Check all the material as per reservation for identification, Qty, Reason of rejections. Make the correction in reservation if required. Post the reservation for transferring stock to Pack & send rejection material to supplier following the guidelines mentioned in Sr 2 to 8. NOTE: In case of rejections due to transit damage or quality issue the decision has to be made within 48Hrs whether to do rework or to send it back to the supplier after deducting the same from account. The decision depends upon the intensity of the damage or quality issue.
BINNING Shift the accepted material to its location in stores & rejected material to rejection stores with suitable handling equipment. Ensure that the material to be binned is pertaining to that location. Ensure that the material is kept at the appropriate mesh pallet/crate/ bin / wooden pallet.
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Keep the boxes / bags in packed condition as far as possible. Stack loose items properly in the bin/ location. Keep the box/bag in such a way that the packing slip on it can be read. Ensure that the components are not damaged during binning. Components which are in FIFO system should be binned in a way that the item /container can be identified. Keep empty pallets / fixtures in their locations. Maintain housekeeping.
4.10.1.4 FACTORY LOGISTICS: Factory logistics consists of the processes wherein; material movement from the dock stations to the stores is done by using the forklifts & other material handling equipment. From store to the production line by using trolleys. However they have minimized the fork lift movement to sustain the healthy environmental atmosphere in the plant.
ACTIVITIES INVOLVED IN FACTORY LOGISTICS: Finding out the requirement of the shop & prepare list. Removing required material on suitable material handling equipment. Issuing old material first for the items having shelf life based on FIFO. If special trolleys/fixtures are available for the material, then bringing empty trolley / fixture and issue the components in the special trolley/fixture. If sufficient material is not available in the location, then informing the Material Officer / Buyer. Issuing bulky parts in their own fixtures/trolleys. Carrying small parts in their packs near plastic containers and fill the containers after removing the packing. Putting the packing material in dust bin.
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Informing Material Officer if the stock is critical / below minimum level for replenishment action. Maintaining good housekeeping.
HANDLING OF SHELF LIFE PARTS Preparing list of all live perishable items. Ensuring that items are identified for mfg. date on tag / mesh pallet during the receipt. Checking the items as per review plan mentioned in the list. Checking every crate/bin/pallets as per date of receipt mentioned on it. Shifting the items beyond shelf life to non-conforming area. Arranging to salvage items which are beyond shelf life, if it can be used after salvaging. Obtaining approval on salvaged items by SQA. Recording the results. Taking disposal action for rejected items. Unloading the newly received material at proper location and keep sufficient gap between old lot & new lot.
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5. PROCUREMT PROCESS AT MUNGI 5.1 PROCUREMENT PROCESS: Purchase Head shall review the business plan and identify the Procurement targets. Purchase Head shall be responsible to achieve the targets planned in the business plan. Based on the targets. and available resources , Purchase Head shall identify the gaps and initiate actions and prepare a plan to bridge the gaps. Purchase Head shall make a plan of action for continual improvement to identify the potential Suppliers and areas of cost control inline with business goals set. Purchase Head shall be responsible for conducting induction training and ensuring the motivation of all the personnel working under him. Purchase Head shall be responsible for maintaining the infrastructure available in purchase dept. and also for cost effective operation of purchase.
5.2 SELECTION OF NEW SUPPLIER Selection of new supplier by purchase Head shall be done under following cases : For developing a new item for which existing supplier do not have capability. For developing alternate source for an existing item. When the demand from the customer exceeds the Suppliers production capacity or supply capacity. Customer Approved Source.
5.3 DEVELOPMENT OF NEW SUPPLIERS Purchase Head decides the need to visit to the supplier for the assessment based on product or reputation of supplier or Supplier ISO status. If the visit is required the Purchase Head visits the supplier The assessment is carried out as per Supplier evaluation form. If the supplier is found suitable, sample order is placed on new supplier & asks to submit PPAP along with first supply. P.O. s are identified by Sample Order. Based on sample acceptance & approved PPAP by QA, the supplier is included in approved supplier list in prescribed format for supplying that particular item.
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Henceforth supplier will be selected if he is minimum ISO9001 certified or have definite plan for achieving ISO 9001.This shall exclude bought out parts from traders. For Purchase from traders PPAP will not obtained from supplier
5.4 DEVELOPMENT OF NEW PARTS Purchase Head shall receive the request for source of supplier for developing of new parts from development Head identified in development process. Purchase Head shall identify the source and intimate the same to development Head. Purchase Head shall be responsible for finalizing the commercial terms. Development department will carry out all activities of development parts with the identified source including PPAP till buy off to purchase department excluding commercials. After buy off of such parts; purchase Head will handle procurement & commercial as per purchase procedure
5.5 TYPE AND EXTENT OF CONTROL The type & extent of control exercised over the supplier shall be bspecified in approved suppliers list. The extent of control is as follows as appropriate A. Inspection as per appropriate inspection plan. B. Supplier rating. C. Our inspection at supplier / subcontractor end. 5.6 PROCEDURE FOR PURCHASING ACTIVITIES: 5.6.1 RAW MATERIAL/ BOUGHT OUT/ CONSUMABLES/ CAPITAL ITEMS: Purchase Head shall obtain from production Head the firm & tentative monthly requirement of material to be procured in predefined format. Purchase Head shall receive requisition for purchase of specific items giving all the details in predefined format approved by CEO/ CFO from stores Head for use by various functional heads.
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Purchase Head shall issue P.O./schedules to approved suppliers listed in the approved Supplier List and communicates to the user on the date of receipt of material. Requirements to be addressed in P.O. shall be as per the guidelines defined for Preparation of Purchase Order. In case of any change in quantity/specification/delivery/price, amendment to the P.O./schedule shall be prepared & approved as per the guidelines for handling of amendments to purchase orders. In case of Urgency when approved supplier is not in position to supply the required material, the purchases can be made from the unapproved sources by purchase Head and shall obtain approval from GM through AGM and in turn GM informs to EVP and CEO. Such items are not be issued to production under positive recall system. Such P.Os are stamped as Urgency purchase. Purchase Head is responsible for timely delivery of materials from suppliers. Purchase Head shall be responsible for settling all the queries related to suppliers and accounts. Purchase Head shall be responsible to ensure the compliance of all governmental rules and regulations with respect to purchase and to ovoid loss to the organization.
5.6.2 FOR ONE TIME PURCHASES. Based on the Requisition, purchase Head will collect all technical information from various supplier including quotations / details and prepare a comparative statement. All collected information will be forward to concern person for review & for finalizing the requirement by purchase Head. If required purchase Head with concern department head will review the specification with supplier. After finalizing the requirements, Purchase Head shall prepare P.O. on the identified supplier. The acceptance criteria for such supplies shall be finalized by the concerned user and purchase Head before finalizing the P.O. This supplier may or may not be from approved supplier list. For such supplier performance / PPAP will not be monitored.
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5.6.3 VERIFICATION OF PURCHASED PRODUCT Verification of Purchase product shall be carried out as per procedure for Monitoring & Measurement of product (QSP/QAD/01). Any of the following methods may used for verification purchased product. Sampling inspection /testing at receipt stage. Inspection at supplier end before dispatch. Verification of test / inspection data submitted by supplier. Non-Conformance observed during the inspection or audit of the supplier supplied material, it shall be handled as per the procedure for Control of non conforming Product. Purchase Head is responsible for tracking the nonconformance till the verification and closure.
5.6.4
SUPPLIER PERFORMANCE MONITORING.
Purchase Head shall carry out supplier performance monitoring for all the Suppliers who appear in the list of Monitoring on monthly basis in a pre define format. Supplier performance is monitored by following indicators : o Delivered product quality. o Customer disruptions including field returns. o Delivery performance. o Excess freight paid. Special status customer notification related to quality / delivery issues. Purchase Head shall adopt 100% on time delivery as the minimum requirement during the Supplier Performance Monitoring. Purchase Head shall inform the suppliers his performance rating and obtain action plan for improvement for all those suppliers whose rating is below the identified limit of rating for that supplier as per Approved Supplier List. If the supplier rating not improved consistently for 3 months, Purchase Head shall inform the GM/ AGM and CEO and decide on further actions required. The service agencies are selected time to time. The basis of selection may be reputation of the service agency, relevant experience.
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5.7 SUPPLIER QUALITY MANAGEMENT SYSTEM DEVELOPMENT. Every year by 15th of April, Supplier QMS development plan is prepared by Purchase Head and shall hand over the QMS Development Plan to QA Head . Prioritization of suppliers for QMS development is done based on supplier performance, supplier ISO status & importance of the product supplied. QA Head shall carry out supplier audit as planned by purchase Head. Based on the status of marks scored and weak areas identified during the audit, training activities shall be planned & carried out at supplier end by QA Head with Purchase Head. Purchase Head maintains supplier audit & training records of suppliers after receiving from QA Head.
5.8 TRAINING Purchase Head shall be responsible for effective implementation of Training and Motivation procedure in his department. Purchase Head shall identify training needs of all the personnel in his department. Purchase Head shall be responsible for identified personnel are deputed to the relevant training carried out as per the training plan and measure the effectiveness of the training conducted and inform to training Head on effectiveness and propose the action required if any.
5.9
CONTINUAL IMPROVEMENTS Purchase Head shall be responsible that the continual improvement procedure has been implemented effectively in Purchase. Purchase Head and his team shall be responsible to identify the continual improvement opportunity in Purchase. Purchase Head shall be responsible that he participates or implements CI projects effectively in all the projects assigned to him & or of which he is CFT member.
5.10
REVIEW
Purchase Head is overall responsible for the effective operations of the Purchase facility and the process defined under the Purchasing.
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Purchase Head shall review the performance of the department internally with the Purchase team once in week to ensure effectiveness of the process/department and record the actions taken in the Minutes of meeting format defined in the Management Review Procedure. Purchase Head shall be responsible for the performance of the Purchase with the other related functions once in a month to ensure effectiveness of the process/department and record the actions taken in the Minutes of meeting format defined in the Management Review Procedure. If any changes required in the procedure as a part of Continual Improvement or changes in the business process or changes in the organisation, Purchase Head shall identify such gaps and inform the same to MR using the document change note with the proposed changes. MR shall review the proposed changes and shall discuss with CEO if required and decide on the changes required and shall carry out the changes as per Procedure for Document Control. During the internal review within the purchase team or related function, any changes identified in roles, responsibilities and job description shall be recorded in the Minutes of meeting format defined in the Management Review Procedure by purchase Head and records maintained.
5.11 OUTPUT: Updated Approved Supplier List. Supplier evaluation form. Supplier Rating Purchase orders/schedule Supplier Drawing Issue Letter. Supplier audit plan Supplier audit reports Supplier PPAP.
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6. WAREHOUSE MANAGEMENT AT MUNGI: 6.1 PROCEDURE FOR RECEIPT CONTROL. Head Stores receives the material along with the Invoice / Delivery Challan (DC) from the suppliers. On receipt of the material, computerized Goods Receipt Note (GRN) shall be prepared. Stores Head shall arrange to unload the material and provide under inspection tag. Material shall be checked for Quantity as per Delivery Challan and Physical Condition of the material. Stores Head informs QA about receipt of material. QA Head collects the sample from the stores for Inspection and he carryout the Inspection as per Quality Plan. After Inspection the QA Head returns the material with the inspection status. Stores Head updates the status of material in the computer. If the material is rejected as per the Inspection status, the rejected material shall be sent back by Purchase head with the help of stores head to the supplier. The accepted materials are identified with the proper tags. Raw material is stored at Press Shop at press shop stores after acceptance from QA.
6.2 ISSUE OF THE MATERIAL FROM THE STORES Store Head issues material for further processing against issue slip duly signed by the authorized person. Store Head updates its records clearly in the bin card / stock monitoring system.
6.3 BOUGHT OUT PARTS Store Head issue the material against issue requisition slip duly signed by the production engineer. Store Head maintains the stock as per minimum stock level fixed by the management and informs purchase Head about the status of the same at regular intervals. After the Issue of material based on the BOM slip / Material issue slip, Stores Head Updates the details in bin cards. Store Head prepares the stock statement along with material reconciliation for off loaded items on every 1st working day of the month, and the copy of the same is sent to purchase Head.
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6.4 PERIODIC VERIFICATION OF STOCK. Stores Head verifies the stock once in 3 months for Physical damage, and deterioration of all the Items Stored in the stores. The record of the same is maintained. Store Head maintains the record of non-moving / obsolete part kept in stores and copy of the same is sent to purchase Head for its disposal. List of Shelf Life items has been defined with shelf life. These shelf life items are controlled through First in First out (FIFO) by stores Head. If customer has specified specific packaging & labeling standards, the same shall be followed in all the supplies made to the customers.
6.5
TRAINING Store Head shall be responsible for effective implementation of Training and Motivation procedure in his department. Store Head shall identify training needs of all the personnel in his department. Store Head shall be responsible for deputing the identified personnel to the relevant training carried out as per the training plan and measure the effectiveness of the training conducted and inform to training Head on effectiveness and propose the action required if any.
6.6
CONTINUAL IMPROVEMENTS Store Head shall be responsible for the effective implementation of continual improvement procedure in Stores. Store Head and his team shall be responsible to identify the continual improvement opportunity in Stores. Store Head shall be responsible to participate or implement CI projects effectively in all the projects assigned to him & or of which he is CFT member.
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6.7 REVIEW Store Head is overall responsible for the effective operations of the Store facility and the process defined under the Store. Store Head shall review the performance of the department internally with the Stores team once in week to ensure effectiveness of the process/department and record the actions taken in the Minutes of meeting format defined in the Management Review Procedure. Store Head shall review the performance of the Stores with the other related functions once in a month to ensure effectiveness of the process/department and record the actions taken in the Minutes of meeting format defined in the Management Review Procedure. If any changes required in the procedure as a part of Continual Improvement or changes in the business process or changes in the organization, Store Head shall identify such gaps and inform the same to MR using the document change note with the proposed changes. MR shall review the proposed changes and shall discuss with GM / AGM / E VP or CEO if required and decide on the changes required and shall carry out the changes as per Procedure for Document Control. During the internal review within the stores team or related functions, any changes identified in the roles, responsibilities and job description shall be recorded in the Minutes of meeting format defined in the Management Review Procedure by Store Head and records maintained.
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7. ANALYSIS AND FINDINGS:
Analysis in procurement
1. JIT is not being followed. 2. Milk run is also not being followed.
Store: 1. Stacking system is not proper. 2. Pallets are not in enough numbers. 3. Racks are not installed for complete storage of parts. 4. Space utilization is not proper due to absence of racks and stacking system. 5. No Trolleys to supply material from stores to production. 6. Storage locations should be improved, storing material as per vehicle and material required in production. 7. Packing improvements can be adopted by the company. 8. Recycling management. 9. Raw material is stored in open area. 10. Front panels and back panels are also stored in open area and no pallets are provided for proper storage.
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8. RECOMMENDATIONS ANDS UGGESTIONS
They can implement MILK RUN system so that the inventory will be controlled properly, Process is explained briefly below. As per my knowledge company do not have local vendors within reach of 15KM, yet company can try to implement JUST IN TIME if possible, I was not disclosed to suppliers list so I cannot surely suggest JIT, but if possible company should work on implementing where ever there is a possibility. Cross docking system which will help in getting material very easily from different locations. Process is explained briefly below. Stores and procurement are separate departments; they should be merged to increase the co-ordination between them. They should function as present under two different managers but should be brought under the department head of purchase so as to decrease the problems of communications between stores and procurement. Racks should be made to stores all the parts available in racks only and the parts should be placed as for vehicle model, this will increase the space and it will be easy for the operator to place and to deliver the material with ease. Enough no pallets should be made for the implementation of above. TWO BIN or three bin, usually many organizations use two bin system. So TWO BIN system should be implemented so that inventory control is increased and FIFO will be increased and the material accounting will be easy. The parts location should be as per the model of vehicle i.e. the parts should be arranged in such a way that the parts required for one model should be placed at the same place as the material will be placed in production. Bar coding systems is one the best instruments to implement but the cost is a negative factor but the whole process will be improved if this system can be implemented as everything is done through online triggering , briefly explained in KANBAN. The accountability of parts will increase further if there are minimal changes made in the stores as pointed above. The implementation of above things will decrease the non moving parts as well due to proper handling of material.
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The material supply is done without the help of trolleys, there should be trolleys for supply of material so that it will increase capacity of material carrying and will be easy to deliver the same. The above mentioned suggestions will cost minimal to the organization yet they can improve their process very effectively. For parts for which FIFO should be followed they should implement storage of lots received as per colour code. This will help them to follow FIFO without fail. Ex: If first lot is received in month of January it should be stickered with a colour and the next lot received should be stickered with another colour, the next colour lot should be used until the first colour lot is cleared. This process should be repeated defining the colours for lots received every time. Raw material should be kept under a roof, so it will be better if they avoid keeping raw material under open area, this will decrease the rust of raw material which is one of the issues.
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9. METHODS AND TOOLS SUPPORTING SUGGESTIUONS:
9.1 MODELS FOR PROCUREMENT:
9.1.1 MILK RUN SYSTEM: It is a strategic method of procuring materials On the basis of consumption at our plant. It may be daily or weekly depending up on the frequency of supply. Things involved in Milk run system: 1. Vendor response time 2. Process lead time 3. Transportation lead time 4. Internal lead time SELECTION CRITERIA Considered Parts which are of Runner Model Parts. Super A class ,A class & B class items. Free from quality issues (Skip). No supply constraint.
PREPARATORY WORK DONE Identified 60 parts supplied by 10 vendors. RFD stocks defined and MOUs taken from vendors Maintaining RFD stock of 3 days at vendor end. Maintaining safety stock of 1 day at plant. Conducted meeting with vendors / transporters and explained the system.
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PROCEDURE Trigger is given to the vendor through E-mail based on consumption. Parts pick List is given to the transporter through E-mail. Collection route and timings are fixed. Collection of material is through a dedicated vehicle. Stored at a designated place and issued to the line. RFD stocks are audited on weekly basis.
MUTUAL BENEFITS Better planning of schedules / dispatches / resources as requirement is clear. Elimination of frequent shift of schedules / stress. Avoiding additional cost on the product. Quick quality feedback. FIFO ensured. Thin inventory Levels Less volume of space for storage Minimize handling. Elimination of storage losses (Such as Rust, dust, material peel off / deterioration etc)
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9.1.2 DOL (DIRECT ON LINE) PROCESS: Material is supplied directly on the line by the supplier. Vendor Checks the empty pallets on the line. Brings the required Qty and replenishes the trolley
Main benefits of DOL include: Reduced setup time. Cutting setup time allows the company to reduce or eliminate inventory for "changeover" time. The tool used here is SMED (single-minute exchange of dies).The flow of goods from warehouse to shelves improves. Small or individual piece lot sizes reduce lot delay inventories, which simplifies inventory flow and its management. Employees with multiple skills are used more efficiently. Having employees trained to work on different parts of the process allows companies to move workers where they are needed.
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9.1.3 CROSS DOCK SYSTEM
Cross docking is a relatively new logistics technique used in industries to rapidly consolidate shipments from disparate sources and realize economies of scale in outbound transportation. The idea is to transfer incoming shipments directly to outgoing trailers without storing them in between.
Here's how it works: in a traditional warehouse, goods are received from vendors and stored in devices like pallet racks or shelving. When a customer (e.g., the consumer) requests an item, workers pick it from the shelves and send it to the destination. In a cross dock, goods arriving from the vendor already have a customer assigned, so workers need only move the shipment from the inbound trailer to an outbound trailer bound for the appropriate destination.
Cross Docking: - Pre- and Post-Distribution One way to classify cross docking operations is according to when the customer is assigned to an individual pallet or product. In pre-distribution cross docking, the customer is assigned before the shipment leaves the vendor, so it arrives to the cross dock palletised and labelled ready for transfer.
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In post-distribution cross docking, customer orders are allocated and labelled at receipt. For example, a cross dock at a Distribution centre might receive 20 pallets of a single SKU without labels for individual Customers. Workers at the cross dock allocate and label the pallets for each Customer.
Pre-distribution is definitely more difficult to implement because the vendors of the cross dock must know which customers of the cross dock need what before they send the shipment. This involves quite a bit of information transfer, system integration, and coordination. However this is very easy to do when conducted within the same group of companies because of shared data and IT platforms.
In operations require staging areas where inbound materials are sorted, consolidated, and stored until the outbound shipment is complete and ready to ship. If the staging takes hours or a day the operation is usually referred to as a "cross-dock" distribution centre. If it takes several days or even weeks the operation is usually considered a warehouse. Many organisation use a mixture of warehouse storage and cross dock areas, this gives maximum flexibility and all the benefits.
When cross docking replaces warehousing a number of benefits follow. These typically include: reductions in inventory investment, storage-space requirements, handling costs, and order-cycle times as well as faster inventory turnover and accelerated cash flow.
The benefits of therefore are well-aligned with the goals of lean supply chain management: smaller volumes of more visible inventories that are delivered faster and more frequently.
These methods also help to reduce direct cost associated with excess inventory by eliminating unnecessary handling and storage of product. Lower inventory means less space and equipment required for handling and storing the products. This also means reduced product damages and product obsolescence.
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INFLUENCING FACTORS:Customer and supplier geography -- particularly when a single corporate customer has many multiple branches or use points.
Freight costs for the commodities being transported. Cost of inventory in transit. Complexity of loads. Handling methods.
PROBLEM OCCURRED DURING CROSS DOCK SYSTEM FORMATION: Material movement from godown Improper planning of vehicles Vender resistance Location of godown Unloading and loading of vehicles Contracts with hamalis PEST factor as a constraint
SOLUTION: Initially used Rabry Transporters Godown. Mutual Cooperation Proper Base location Vehicles were converted as per requirement. Used 3pl (Third Party logistic system) Formed separate godown (Outskirt of city) Single point contact for all locations like Zaheerabad, Mumbai, Haridwar, Nasik. Maintaining minimum inventory of 6 hrs. Proper docking stations are there. They remove material as per invoice In cross dock system Volume vs. weight utilization is more important. By cross dock system vehicle reduced from 12 to 4 which is 1/3.
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9.2 MODELS FOR STORES:
9.2.1 KANBAN The definition of kanban is a signal that gives an instruction to get, move, produce, order, or take some other activity with production materials. Its literal translation from the original Japanese term, though, is signboard or billboard. Kanbans tell you when to order, what to order, how much to order, and where to order it from. The ordering, though, is not necessarily from an external supplier. It may also be from an upstream process or some other department within your own company. It may even be an order from a warehouse. You will often hear the words kanban-system, kanban, and kanban card, used somewhat interchangeably. The kanban concept is versatile, and can be applied in many variations both on the shop floor and in the lean office. A kanban tells

An upstream operator to produce more parts (production kanban) A material handler or water strider (to pull parts from another location (withdrawal or transport kanban)
A purchasing group to buy more material (purchase kanban)
A kanban system is one of the key ingredients to transitioning to pull and to the implementation of Standard Work. It is worth noting that kanban systems, due to the tight linking to standard processes, work best with high quality, low variation parts and materials. TWO BIN SYSTEM It is a simple visual system, with a minimum of hassle where items can be identified as having a purchasing requirement without the need for paperwork or stores records. Likewise thekanban system. With the two bin system the trigger process can result in the empty bin being refilled with enough to keep things going for a few weeks or even months. The quantity in the second bin, from which supply is now being taken would be of equal size and therefore contain weeks or even months worth of stock. Therefore a two bin system is essentially a high stock system fine if the stock value is low. Taking the same simplicity afforded by the two bin system, this can be applied to major items as well,
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but in a very different environment. There is a precise set of conditions which has to be fulfilled to enable supply to be a really just-in-time kanban system and improved version of old two bin. Benefits of 2-bin system 1. Materials fed directly to point of use 2. Visual Trigger for Material Feeder 3 Inventory can be reduced by replenishing bin by bin 3. No communication gaps 4. 100% Material Available, ready to use.
Working Cycle - 2 Bin System with Kanban card

Storage Bin Kanban card Kanban Post Trigger list generation Buyer / vendor
Swipe card
Acceptance Stores (NI)
Vendor Park
Material dispatch Swipe card after PCS/GR
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9.2.2 STORAGE LOCATIONS
The Storage Location In order to manage General goods movement process in the warehouse management, companies need to create and assign a storage location to warehouse.
The Storage Type A warehouse number is subdivided into a variety of storage types. A storage type is defined by its physical or organizational features (for example, high rack storage area, bulk storage, and goods receipt areas). It can be defined on the basis of its organization characteristics.
The Storage Bin The storage bins indicate the exact position in the warehouse where goods can be stored. Each storage type and storage section consists of a row of storage spaces that are referred to in WMS as storage bins.
The Quant The quant serves to perform inventory management of a material at the storage bin.
Assigning Warehouse No. to Plant-Storage Locations By doing so, system can recognize which storage locations in Materials Management are controlled by the Warehouse Management system; you must assign the plants and the storage location to the warehouse number.
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BIBILOGRAPHY:
Internal data used from 1. Mungi engineers Pvt. Ltd. 2. M&M Automotive Division.
http://www.mungigroup.com/index.html http://scm.ncsu.edu/scm-concentrations
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Study The Supply Chain AND Its Activities

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Supply chain and its activities

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