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Introduction
Some genius has rightly said Logistics is all about the delivery of right product, at the right place at
the right time. Outbound Logistics for M/S Ideal Steel Company is through rail and road. At present
around 60% of the material is dispatched through rail because of lower costs. However, rail logistics
is done by partnering with Indian Railways
Background
Ideal steel company dispatches nearly 5.5 million tons of material every year out of which almost 3.3
million tons is transported through rail.
Ideal steel has the following mills for different types of products.
The below sheet (Appendix I) sums up the activity done by central planning.
Only completed rakes are handed over because Indian railways takes the cost of the full rake
quantity, whether you load it fully or half. Moreover, you get a 10% rebate if you complete the rake.
1. Suggest a integrated planning and scheduling model considering all challenges faced
by M/S Ideal Steel. Suggest model by studying the best practices in industry and
making best use of technology (example, GPS enabled Locos and how to use them)
2. Identify the KPIs for the Central planning by benchmarking industry best practices for
the above model.
3. Suggest the best way to serve the customers with minimum idle freight and
minimum transshipment cost. Study the best practices and models used across the
industries and suggest options. How can we leverage technology and digitization to
our benefit?
4. Make the cost benefit analysis of the suggestions made.
Introduction
We at Tata steel are manufacturing Tata branded wood-finish steel doors by the brand name of
Pravesh. A unique Tata Group offering - Pravesh doors are durable and weatherproof. Pravesh offers
the widest range of doors to suit the needs of every consumer in the market. Tata Pravesh currently
provides technologically superior range of doors. Tata Pravesh has earned success and goodwill
amongst customers by empowering the construction professionals and individual house owners.
Tata Steel has optimized and a well distributed network for transporting its steel products (Flat
products, Long products). But with the emerging markets it also needs to develop its supply chain
logistics to deliver steel products for services and solutions segment with similar ease. To start with
Pravesh doors
Background
The doors follow a very quality intensive manufacturing process, and manufactured with
maximum care for customer satisfaction. They are powder coated for better look and
vacuum pressed for better performance. Packing damages or poor handling might increase
costs acquired due to rework, returns and of course customer dissatisfaction.
For capturing a higher market and induce a need for the doors we need to serve the
customer with minimum lead time.
1. What strategy should Tata Steel think of for integrating supply Pravesh doors (or
similar to white good products) along with existing products? Study the best
practices for handling, transportation and warehousing of these kind of products.
2. How to serve the customer better with minimum lead time, best packaging, and
minimum cost?
3. Should we follow the TOC model / Build up distributor stocks / or some other model
for best results, please show the analysis, assume the data?
4. How do we leverage technology and digitization for above solutions?
Domain Ferrous Scrap Recycling
Name of the Case: Organizing Collection & Sales of Household Scrap
Introduction
From a steel majors point of view, access to raw materials like Iron-ore and coking coal continue to
be a key differentiator and a source of competitive advantage. However, the changes in the Indian
mining industry landscape and environmental concerns are likely to make steel industry look at
increased scrap consumption for steel making in India.
Globally, this trend is already visible with a majority of the developed economies consuming higher
amounts of scrap as a raw material for steel production.
Hence, there is a need to explore the Indian Ferrous Scrap Industry and identify suitable
opportunities for a steel major as Tata Steel. The challenge, however, is that the Indian scrap market
is largely unorganized and highly fragmented.
Background
Ferrous scrap comes from various sources. Some of the most common ones include Large Industries
& MSMEs, Household, ELVs / Old Automotive, Railway, Ship Breaking, etc.
Ship Breaking
- Obsolete scrap generated during ship breaking; mostly generated at Alang in Gujarat
- Comprises of both re-rolling and melting scrap
Railways Scrap
- Generated at Railway works during repair & maintenance of coaches, old railway tracks, etc.
- Comprises of both re-rolling & melting scrap and is mostly sold through auctions
Each of these scrap types have their own life cycles, disposal mechanisms, collection chains & re-use
methods. Hence, the Household Scrap Industry is very different from the Ship Breaking Industry
which in turn is very different from the Industrial Scrap industry and so on.
- Mapping the complete supply chain including the number of the players at each level, their
value add potential, irreplaceability, margins, pain points, etc.
- Non-ferrous material such as Copper, Brass, etc. need not be focussed on
- To make the analysis sharper, participants can focus on any metro / tier 1 city and
extrapolate their findings for the rest of the country
- Teams are encouraged to carry out primary research to understand the household scrap
value chain
- Case Solution should be submitted in power point format along with Excel File containing
the financial projections for the business model.
1. Analyse the various global models for collection & processing of Household Scrap especially
in the BRICS countries. Benchmark the Indian Household Scrap collection & processing
model vis--vis Global models and identify good practices suitable for India.
2. Study the Indian Household scrap market and segment the same based on Volume,
Processing Required, Chemical composition, Aggregation model & subsequent End-use. Also,
study the existing models and prepare win-win value proposition for Modern Retail Channels
& E-commerce players like Croma, Big Bazaar, Amazon, Flipkart, etc.
3. Prepare roadmap for aggregation and processing of Household Scrap
4. Propose a process flow for collection of scrap from such disaggregated sources on a digital
platform and present a business case with financials for the business model.
Domain Supply Chain Logistics
Name of the Case: Value maximisation in By-products by buffer management and supply
chain optimisation
Introduction:
Industrial By-products Management Division (IBMD) of Tata Steel is responsible for
management (collection, processing (if required), consumption/sales/disposal) of by-
products generated in Jamshedpur Steel works. The by-products include
Blast Furnace slag
Metallic recovered from Steel slag (various SKUs)
Non-Metallic recovered from Steel slag (various SKUs)
Pooled Iron
HR / CR scrap
Miscellaneous items (e.g. e-waste, etc.)
These items as per the properties are consumed internally at various stages of Steel making
(like LD slag non-metalic in Sinter making, Pooled iron & clean scrap in Steel making as
scrap charge).
Background
The rate of generation of the by-products can be estimated based on the iron / steel making
plans by the Blast furnace and steel shops and rolling mills. Similarly, the rate of internal
consumption is also estimated by the same process. The difference between the generation
and consumption is sold to customer via auctioning / direct sales.
Problem Statement/Challenges Faced
All the items that are internally consumed or sold outside fetch a value based on timing of
sales and quality parameters (like Fe content, shape, size, etc.) of the by-products.
Presently, the selection of order in which the SKUs are selected for internal / external is
manual and happens on reactive basis.
Also, the stock at various levels / sales plan is primarily based on the frequency / safety
threshold at the storing points, impacting the overall profitability of the unit.
Critical Case Questions (4 in nos.)
1. What is the quantity that needs to be kept at various touch points SKU wise. (Very
high, high, medium and low).
2. What is preferential order/sequence in which the by-products should be consumed
internally and sold to outside customers?