Beruflich Dokumente
Kultur Dokumente
-AN OVERVIEW
KHUZEMA LOKHANDWALA
ROLL NO: HPGD / JL15 / 3032
SPCIALIZATION: SUPPLY CHAIN MANAGEMENT
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APPENDIX I
This is to certify that the Project work titled Ware Housing -An Overview is a confide work
the Post Graduate Diploma examination of the Welingkar Institute of Management under my
SIGNATURE OF GUIDE:
DATE: 20-02-2017
PLACE: MUMBAI
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UNDERTAKING BY CANDIDATE
I declare that project work entitled Ware Housing -An Overview is my own work
I further declare that project work presented has been prepared personally by me and it is not
sourced from any outside agency. I understand that, any such malpractice will have very
serious consequence and my admission to the program will be cancelled without any refund
of fees. I am also aware that, I may face legal action, if I follow such malpractice.
(Khuzema Lokhandwala)
Signature of Candidate
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Table of Content
6. Principles of TQM 24
7. The Concept of continuous improvement by TQM 25
8. Implementation Principles & Processes 26
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1) Introduction
A warehouse is a place where different goods are stored or accumulated for a temporary period.
It created time utility. The need for warehouses arises out of the lack of adjustment between
times of production and times of consumption of goods. At present time the goods are produced
for in advance of demand. So before the goods are bright in the market, they should be stored.
It is the warehouse which stores the goods from the time of production to the time they are
sold. In this way warehouse removes the hindrance of time between the places of production
and consumption.
They usually have loading docks to load and unload goods from trucks. Sometimes warehouses
are designed for the loading and unloading of goods directly from railways, airports, or
seaports. They often have cranes and forklifts for moving goods, which are usually placed on
ISO standard pallets loaded into pallet racks. Stored goods can include any raw materials,
packing materials, spare parts, components, or finished goods associated with agriculture,
manufacturing and production. In Indian English a warehouse may be referred to as a go-down.
What is Warehousing?
Warehousing is the act of storing goods that will be sold or distributed later. While a small,
home-based business might be warehousing products in a spare room, basement, or garage,
larger businesses typically own or rent space in a building that is specifically designed for
storage.
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2) Uses and Importance of Warehousing
Many goods are not produced regularly at the point where they are wanted for consumption
and they must be stored from the time of production until they are wanted by the consumer, if
they are to be used in satisfying human wants. Goods produced at a distance from the consumer
must be transported to the consumer. In order to ensure on even supply, a stock of such goods
must be maintained near the consumers as protection against delays and uncertainties of
transport and to permit transport in economical units. Many agricultural goods produced
seasonally are supplied to consumers more of less evenly throughout the year. Grain, Cotton,
Tobacco and Sugar furnish can be stored for several years without any deterioration. The
demand for some products is irregular. In such cases storage may be called into use so that
production can be more regular.
If factories producing such goods are to be operated throughout the year, the goods produced
in the off months must be stored until they are wanted by 1he consumers. Storage involves
expense, but much expense in often less than the extra cost of providing buildings, machinery
and labour to produce seasonal products as needed. Moreover, production and transport may
be interrupted by fire, flood, strike, cold or storm. Storage is a safeguard against such risks.
It offers facilities to the traders or merchants to get loan from the credit agencies on the goods
stored in the warehouse. The credit agencies will be in a position to give loans by the transfer
of warehouse receipt, which is a negotiable instrument of title.
It offers goods facilities for the transfer of ownership of goods warehoused there in without the
actual transfer of goods simply by transfer of warehouse warrants with the endorsement of the
owner thereon.
It removes the hindrance of time which would otherwise be involved in obtaining possession
of the goods from the places of their production
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3) HISTORY
The origins of the warehouse are difficult to pinpoint. Early civilizations relied on storage
pits rather than large structures to protect seeds and surplus food. Sociologists like Alain
Testart have argued that these early storage techniques were essential to the evolution of
societies.
Some of the earliest examples of warehouses that resemble the buildings of today are
Roman horrea. These were rectangular buildings, built of stone, with a raised ground floor
and overhanging roof to keep the walls cool and dry. Roman horrea were typically used to
store grain, but other consumables such as olive oil, wine, clothing and even marble were
also stored inside.
Though horrea were built throughout the Roman empire, some of the most studied
examples are found in or around Rome, particularly at Ostia, a harbor city that served
ancient Rome. The Horrea Galbae, a warehouse complex in the southern part of ancient
Rome, demonstrates that these buildings could be substantial, even by modern standards.
The horrea complex contained 140 rooms on the ground floor alone, covering an area of
some 225,000 square feet (21,000 m). As a point of reference, less than half of U.S.
warehouses today are larger than 100,000 square feet (9290 m).
As attested by legislation concerning the levy of duties, medieval merchants across Europe
commonly kept goods in household storerooms, often on the ground floor or one or more
storeys below the ground. However, dedicated warehouses could be found around ports
and other commercial hubs to facilitate overseas trade. Examples of these buildings include
the Venetian fondaci, which combined a palace, warehouse, market and living quarters for
lodging travelers. A number of representative medieval warehouses can also be seen in
King's Lynn, U.K., where a complex of buildings, including dwelling-houses, shops,
countinghouses and warehouses, once served the Hanseatic League.
During the industrial revolution the function of warehouses evolved and became more
specialised. Some warehouses from the period are even considered architecturally
significant, such as Manchester's cotton warehouses.
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4) Warehousing Elements
Whether the purpose is strictly storage or storage plus order fulfilment, warehouses use
specific elements that help manufacturers, distributors, and retailers monitor inventory
and store it safely. An overview of basic elements includes:
Shelving and rack systems that offer maximum storage capacity and easy product access.
A climate control system for the product being stored. This is particularly important for
frozen products or those requiring refrigeration, including certain pharmaceutical or
laboratory products, and others that degrade if exposed to too much heat.
Inventory control software that tells the product owner who isnt necessarily the
building owner where all individual units are in the system at all times.
Equipment that can move products from point A to point B forklifts, pallet jacks, bins
that hold products for orders, and conveyor belts, for example.
Shipping supplies for order fulfilment.
People who load products into a warehouse and others (pickers) who fill orders in a
true distribution center, plus those who manage the facility and operation.
Security to protect stored products.
Access to cost-effective transportation to bring products in or move them out as orders are
fulfilled. That often means easy access to interstates, rail lines, or airports.
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5) Functions of Warehousing:
5.1. Storage:
This is the basic function of warehousing. Surplus commodities which are not needed
immediately can be stored in warehouses. They can be supplied as and when needed by
the customers.
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5.4. Financing:
Loans can be raised from the warehouse keeper against the goods stored by the owner.
Goods act as security for the warehouse keeper. Similarly, banks and other financial
institutions also advance loans against warehouse receipts. In this manner, warehousing
acts as a source of finance for the businessmen for meeting business operations.
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6) Importance of Warehousing in the Development of Trade
and Commerce:
Warehousing or storage refers to the holding and preservation of goods until they are
dispatched to the consumers. Generally, there is a time gap between the production and
consumption of products. By bridging this gap, storage creates time utility.
There is need for storing the goods so as to make them available to buyers as and when
required. Some amount of goods is stored at every stage in the marketing process. Proper
and adequate arrangements to retail the goods in perfect condition are essential for success
in marketing. Storage enables a firm to carry on production in anticipation of demand in
future.
A warehouse is a place used for the storage or accumulation of goods. It may also be defined
as an establishment that assumes responsibility for the safe custody of goods. Warehouses
enable the businessmen to carry on production throughout the year and to sell their
products, whenever there is adequate demand.
Need for warehouse arises also because some goods are produced only in a particular
season but are demanded throughout the year. Similarly, certain products are produced
throughout the year but demanded only during a particular season. Warehousing facilitates
production and distribution on a large scale.
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7) Benefits from Warehouses:
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7.4. Price stabilization:
Warehouses reduce violent fluctuations in prices by storing goods when their supply
exceeds demand and by releasing them when the demand is more than immediate
productions. Warehouses ensure a regular supply of goods in the market. This matching of
supply with demand helps to stabilise prices.
7.7. Financing:
Warehouses provide a receipt to the owner of goods for the goods kept in the warehouse.
The owner can borrow money against the security of goods by making an endorsement on
the warehouse receipt. In some countries, warehouse authorities advance money against
the goods deposited in the warehouse. By keeping the imported goods in a bonded
warehouse, a businessman can pay customs duty in installments.
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8) Type of Warehouses:
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goods. A public warehouse enables a businessman to serve his customers quickly and
economically by carrying regional stocks near the important trading centres or markets of
two countries.
Public warehouses provide facilities for the inspection of goods by prospective buyers.
They also permit packaging, grading and grading of goods. The public warehouses receipts
are good collateral securities for borrowings.
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9) Indias warehousing industry
The size of the Indian warehousing industry (across commodities and modes) is pegged at
about INR560 billion (excluding inventory carrying costs, which amount to another
~INR4,340 billion). The industry is growing at over 10% annually.
Multiple business models exist within the warehousing industry. The key segments can be
represented as:
Industrial/Retail warehousing: accounts for ~55% of the total market
CFS/ICD: ~14% share
Agri warehousing: 15% share
Cold stores: ~16% share
Current warehouse industry size with sub segments in FY13
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9.1. Industry/retail warehousing
Industrial/Retail warehousing has a market size of ~INR310 billion in FY13 and it has been
growing at a CAGR of 10%12% over the last few years. Demand for industrial
warehousing space is estimated to have grown from around 420 million sq. ft. in FY11 to
475 million sq. ft. in FY13, at a CAGR of 6%.
Key players:
DHL, Safexpress, Continental Warehousing, Indo Arya, MJ Logistics, Allcargo, Nippon
Express, etc. are the major players in industrial warehousing.
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9.2. Liquid storage
The terms liquid storage mainly refers to the storage of liquid bulk such as crude, petroleum
products, chemical and edible oil. Liquid bulk cargo handled at ports has been growing at
a CAGR of 5%6% between FY10 and FY13.
Demand for liquid storage space is increasing in India amid increasing traffic and limited
existing capacities. Currently, the utilization of commercial tank farms in India is between
75% and 80% in FY13.
Key players:
Major players in the commercial segment include IMC Ltd., Vopak India, Kesar Terminal,
Ganesh Benzoplast, Indian Oil Tanking, Aegis Logistics, Sealord
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9.3. Agri-warehousing
Agri warehousing accounts for ~15% of the warehousing market in India, or ~INR8085
billion, in FY13. It has been growing at a 10%12% rate over the last 3 years. Agri
warehousing capacity in India is 110120 million metric ton (MT), and it has been growing
at a CAGR of 8%10% over the last 5 years.
Key players:
Key public sector players include Food Corporation of India (FCI), Central Warehousing
Corporation (CWC) and 17 State Warehousing Corporations (SWCs). The remaining 30%
of the capacity is primarily held by unorganized small godown players.
A few large national-level players have emerged in this field over the last decade owing to
the available capital subsidy. These include National Bulk Handling Corporation Ltd.,
National Collateral Management Services Ltd., Adani Agri Logistics, Star
Agriwarehousing & Collateral Mangement Ltd., Shree Shubham Logistics Ltd., Ruchi
Infrastructure Ltd., Guru Warehousing Corporation, Paras Warehousing and LTC
Commercial.
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9.4. Cold stores
Cold stores account for ~16% of the total warehousing industry and it estimated to worth a
~INR90 billion industry. The cold storage industry is expected to grow at ~15% per annum
on a sustained basis over the next 5 years, with the organized market growing at a faster
pace of ~20%.
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9.5. Container handling and storage
CFS/ICD accounts for ~14% of total warehousing market in India and is estimated at
around ~Rs.75-80 bn in FY13 in India and has grown with a CAGR of 10-15% over last 3
years.
Key players:
The government run Container Corporation of India (CONCOR) continues to be the largest
player operating 48 terminals which handle EXIM cargo, while 14 others handle domestic
traffic only.
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Conclusion
We can conclude that the above eight elements are key in ensuring the success of TQM in an
organization and that the supervisor is a huge part in developing these elements in the work
place. Without these elements, the business entities cannot be successful TQM implementers.
It is very clear from the above discussion that TQM without involving integrity, ethics and trust
would be a great remiss, in fact it would be incomplete. Training is the key by which the
organization creates a TQM environment. Leadership and teamwork go hand in hand. Lack of
communication between departments, supervisors and employees create a burden on the whole
TQM process. Last but not the least, recognition should be given to people who contributed to
the overall completed task. Hence, lead by example, train employees to provide a quality
product, create an environment where there is no fear to share knowledge, and give credit where
TQM encourages participation amongst shop floor workers and managers. There is no single
theoretical formalization of total quality, but Deming, Juran and Ishikawa provide the core
and continuous improvement and assumes that quality is the outcome of all activities that
take place within an organization; that all functions and all employees have to participate in
the improvement process; that organizations need both quality systems and a quality culture.
The findings of this study indicates that the company adopts a multiple stakeholder
philosophy for successful execution of TQM that squarely values the customers,
TQM is based on the strategic plans of the company and expectations of its
stakeholders.
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The organization implements a number of TQM tools, and the entire production and
The mission, vision and policies of the organization are consistent with those of TQM.
All the employees have accessibility to TQM training and the company has initiated a
Systems, tools and processes are employed to achieve the various principles of TQM
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and-implementation-total-quality-management-tqm/
http://tqmcasestudies.com/
Ishikawa Kaoru (1985) what is Total Quality Control: The Japanese Way Englewoods-
Deming W. Edwards (1986) Out of the Crisis Cambridge, MA, MIT Press Hill Stephen and
Wilkinson Adrian (1995) 'In Search of TQM' Employee Relations 17 (3): 9- 26.
http://asq.org/learn-about-quality/total-quality-management/overview/implementing-
tqm.html
http://quality-management-tools.com/baldrige_criteria.png.
Smith, AK, 1993. Total Quality Management in the Public Sector. Quality Progress,
June 1993, 45-48.
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