Beruflich Dokumente
Kultur Dokumente
By
SRINIVASAN S
ASSISTANT PROFESSOR
UNIVERSITY OF MADRAS
CHEPAUK-5
APRIL 2019
UNIVERSITY OF MADRAS
DEPARTMENT OF MANAGEMENT STUDIES
BONAFIDE CERTIFICATE
This is to certify that this internship work on “A STUDY ON THE RAW MATERIAL
WAREHOUSE AT TUMAKURU PLANT WITH REFERENCE TO RANE ENGINE
VALVE LIMITED” is the bonafide work of SRINIVASAN S (Register Number, 32317139)
who carried out the project work under my guidance in partial fulfillment for the award of the
degree of Master of Business Administration by the Department of Management Studies,
University of Madras.
_________________________________ ____________________________________
External Examiner
2
UNIVERSITY OF MADRAS
DEPARTMENT OF MANAGEMENT STUDIES
STUDENT’S DECLARATION
SRINIVASAN S,
Register Number – 32317139
II MBA
University of Madras,
Chepauk, Chennai – 5.
I hereby declare that the project report entitled, “A STUDY ON THE RAW MATERIAL
for the award of the degree of Master of Business Administration by the Department of
Management Studies, University of Madras and no part of this project report has been submitted
for the award of any other Degree, Diploma, Fellowship or any other similar studies.
Date:
I shall remain indebted for the generous support and coordination by Material
Management Department (MMD) of Rane Engine Valve Limited (REVL). I
express my deep sense of gratitude to Mr. Navin Alocius J, Deputy General
Manager – MMD, REVL for providing the opportunity to carry out this project
work and to Mr. Saravanan G, Deputy Manager – MMD, REVL for his
constant encouragement and support to carry out this project work in their
esteemed organization.
Finally, I am obliged to thank my family members and friends who have been a
source of inspiration and support during my project.
ABSTRACT
This study will be carried out at Rane Engine Valve Limited – Head Office (Chennai), a
company which specializes in involved in the manufacture of valves and valve train components
for various engine applications and is located in SIDCO Industrial Estate, Guindy, Chennai,
Tamil Nadu, India. Incepted in the year 1959, it is one of the oldest engine valve
manufacturers that cater to the auto industry and non-auto industry. It is one of the largest
manufacturers of engine valves in India. The company offers its products to companies engaged
in the manufacture of passenger cars, utility vehicles, light commercial vehicles, medium and
heavy commercial vehicles, farm tractors, marine applications and two and three wheelers.
The purpose of this study is to look further into the raw material warehouse in the Tumakuru
factory, to find any possible improvements that can be made. This is done by analyzing the
material flow in the warehouse. The analysis will primarily focus on the resolving the problem of
lack of optimal material storage in the racks via the conceptual development of a fixed inventory
location system design for the raw material placement in the warehouse with emphasis on ease of
recognition, which would facilitate the identification of materials by the employees in the plant.
The focus is on creating an easily identifiable fixed inventory location system for raw material
placement while having sufficient space allocated for the materials based on consumption
quantity and the minimum order quantity. Specific and general recommendations will be made to
facilitate any possible improvements to the raw material warehouse in the Tumakuru factory
based on said analysis.
CHAPTER
CONTENTS PAGE NO.
NO.
1. INTRODUCTION 1
LIST OF FIGURES
S.NO TITLE PAGE NO
1.1 Revenue Mix by User Segment 5
1.2 Revenue Mix by Geography 5
1.3 Sample Pictures of Current Rack Utilization at REVL Tumakuru Plant 7
1.4 REVL Tumakuru Plant’s present warehouse layout 8
2.1 Layout of a U-flow warehouse 13
3.1 Scientific Credibility for Case Studies 24
3.2 Summary of Research Methodology 27
4.1 ABC Analysis 33
4.2 Weight VS Diameter of Material 34
4.3 Diameter VS Bars of Material 35
4.4 Square Packing 38
5.1 Proposed Warehouse Layout 42
5.2 Triangular Packing 44
5.3 Hexagonal Packing 44
CHAPTER 1 - INTRODUCTION
1
This chapter will begin with a background presentation of REVL (Rane Engine Valve Limited)
followed by some references concerning the subject of their warehouse layout and article
placement. A need for the study concerning REVL Tumakuru Plant’s raw material placement in
the warehouse will elaborate upon the necessity to seek solutions for the framed key research
questions which will serve as the objective of this proposed study.
Raw materials procured via domestic suppliers have a lead time of 35 Days and raw materials
procured via import have a lead time of 50 Days for REVL Tumakuru Plant. Further the
Minimum Order Quantity (MOQ) of raw materials are in multiples of 500 or higher Kilograms.
Thus both these factors make holding inventory crucial for REVL Tumakuru Plant.
The problems concerning warehouse layout often concern fluctuating areas of inventory space
and different types of articles requiring storage. Larson et al. (1997) mention that a common
solution to the first problem is the maximized utilization of warehouse space. Warehouse space
includes not only floor space but also cubic space, as articles are stored both on and above the
floor. In terms of the second problem Arnold et al. (2008) mention that there is no universal
solution for the placement of articles designated for each company. Depending on the warehouse
layout and which products that is to be stored, different methods are available. Article placement
has to be cautiously planned in order to aid the operations in a warehouse and to help it reach its
objectives. The company must also consider article placement in order to minimize travel
distances and make products easily accessible and save time.
Rane Engine Valve Limited is a part of Rane Group of companies involved in the manufacture of
valves and valve train components for various engine applications. The company offers its
products to companies engaged in the manufacture of passenger cars, utility vehicles, light
2
commercial vehicles, medium and heavy commercial vehicles, farm tractors, marine applications
and two and three wheelers.
The major customers of the company include Maruti Suzuki, Tata, Mahindra, Hyundai, Yamaha,
Volkswagen, Deutz. It recently inaugurated its dedicated Lean Manufacturing Practices (LPS)
line for Mahindra and Mahindra's Farm Equipment Sector in its Chennai plant. It also has a
dedicated line for manufacturing valves for kappa engines of Hyundai motor. The company has
an export market which includes Europe, North America, and the Far East.
The mission of Rane is to be a recognized leader in every market served, and to do so profitably
while remaining consistent with our core values.
Vision (REVL)
“To be a preferred solution provider of valve train components to the global internal combustion
engine industry”
REVL at a Glance
Founded In 1959
Market Leader In India
5 Manufacturing Locations
Deming Prize In 2005
IATF 16949: 2016 & ISO 14001:2015 OHSAS 18001:2007
Worldwide Exports
REVL was incepted in 1959 to manufacture valves and valve train components for various
engine applications. They utilise cutting edge technology and latest manufacturing practices to
keep abreast of technological advancements. They pursue the principle of striving to achieve
global excellence in both product and process technologies. They are the preferred supplier to
Domestic OEMs like HMCL, HMSI, Ashok Leyland, Daimler, John Deere, Hyundai, etc. Their
clientele base is spread across Europe, North America and the Far Eastern markets including the
best known brands such as Volkswagen, BMW, Deutz, Volvo, Progress Rail, MTU and Yamaha.
Technology
State of the art welding technologies – TIG, PTA, Button, Friction for design and cost
optimization.
High nickel alloys (Inconel and Nimonic 80A) valves for Industrial, Locomotive and
Marine – to withstand high creep requirements.
Fully automated chrome plating.
3
R&D Capabilities
Manufacturing
REVL has 5 plants manufacturing engine valves, valve guides and tappets. Their summarized
actions are as follows -
4
Wear & Friction Tester
Quality
REVL has consistently maintained a zero warranty failure level for the last 6 years. Their notable
achievements are listed below –
FIG 1.1 Revenue Mix by User Segment FIG 1.2 Revenue Mix by Ge ography
The main objective is to study the raw material warehouse layout at Tumakuru Plant with
reference to Rane Engine Valve Limited.
5
SECONDARY OBJECTIVE:
To determine whether the racks currently present in the warehouse are sufficient to
accommodate all the raw materials under the proposed article placement guidelines
proposed by the Materials Management Department (MMD).
To develop a fixed article placement / inventory location design for the raw material
warehouse at Tumakuru Plant with emphasis on ease of recognition to facilitate the
identification of materials by the employees working in the plant.
Raw materials procured via domestic suppliers have a lead time of 35 Days and raw materials
procured via import have a lead time of 50 Days for REVL Tumakuru Plant. Further the
Minimum Order Quantity (MOQ) of raw materials are in multiples of 500 or higher Kilograms.
Thus both these factors make holding inventory crucial for REVL Tumakuru Plant.
The critical factor to necessitate this study is the lack of a proper raw material placement /
location system and the absence of clear article placement guidelines. Currently, the plant raw
material placement is managed by the plant supervisor and a few other significant employees in
the plant. However, there is no documentation for this current design – It exists and is managed
in the minds of the few people who are privy to it. In the absence of these few people, the
picking process of the raw materials is delayed or halted altogether – thereby affecting the entire
production process.
Certain storage windows in the racks being filled to the brim thereby affecting the
picking process
Certain other storage windows in the racks being poorly utilized thereby forcing certain
materials to occupy the floor space.
No utilization of easily accessible storage windows.
6
Mixing up of materials of different grade and diameter
FIG 1.3 Sample Pictures of Current Rack Utilization at REVL Tumakuru Plant
To summarize the current warehouse exists in a state of disarray and the placed raw materials in
the racks can be recognized by a few key personnel alone.
The following sequence of activities describes the procedures carried out when incoming
materials arrive from suppliers -
1. Incoming deliveries from suppliers arrive at the entrance and are unloaded at the marked
unloading area.
2. The bars are cut to the standardized length with the aid of the bar cutting machine if
required.
3. The raw materials are put away in the racks for storage.
4. The bars are retrieved when required for production.
7
R R
A A
C C
K K
6 7
BAR CUTTING
MACHINE
RACK 5
RACK 4
RACK 3
RACK 2
RACK 1
UNLOADING AREA
ENTRANCE
8
o Ease of picking raw material bars manually by the warehouse personnel based on
the raw material placement / location design incorporating both -
optimal weight class distribution of materials, and
the average height of the warehouse personnel (stated by MMD as 170
cm)
The period of project study is limited to the time span of February, 2019 to April, 2019.
All the data collected and the temporal context would be limited to the period of April,
2018 to January, 2019 only – the data used for all the analysis carried out is restricted to
the duration of these 10 months alone in the Fiscal Year of 2018-2019.
Geographical:
The study is solely applicable to the Raw Materials Warehouse at REVL Tumakuru
Plant.
Procedural:
All the data collected are generally limited by the method adopted and the factors took
into consideration. This limits the extent of optimization possible for the warehouse in
concern to said method and factors. For example – this study has not incorporated the
material retrieval time aspect based on the physical distance that needs to be covered to
retrieve said material, thus any possible optimization of the warehouse in concern
through such non-incorporated factors can only be carried out in future research.
Specific:
The author acknowledges his inability to visit the plant in person; thus this study is
limited to secondary data only. The analysis has been done on the Raw Materials
Warehouse at REVL Tumakuru Plant with the specified data of 10 months (APR-2018 to
JAN-2019) of FY 2018-2019. Thus discrepancies might have crept into the study when
the author was making inferences from the warehouse description provided by the MMD
personnel who have had primary experience with the warehouse in concern.
9
CHAPTER 2 - REVIEW OF LITERATURE
10
This chapter will contain the selected theory and literature review for this study. The theoretical
chapter will be divided into two parts. The first part (2.1) will include theory on warehouse
layout, how a warehouse can be constructed, what methods of storage that can be used, article
placement and article classification. The second part (3.2) will include literature review for the
above mentioned.
There is a lot of information to keep track of within a warehouse and there are more or less
advanced ways of managing all available data. All warehouses have their own way of solving
this, but they all use some sort of Warehouse Management System (WMS). The least
technology-heavy way of doing this is to use a paper-based WMS to manage the data. In this
system, most things are done manually, like managing inventory or choosing the route to pick an
order. There is no location system software and the company relies on operators knowing where
everything is within the warehouse.
A more advanced way of doing this is to use an inventory control system. This system comprises
information regarding the location and the amount of inventory. It will not inform the operators
of the best route when picking an order.
The most advanced way of handling the data is to use a real-time WMS, which is computer
software that can help increase the productivity, control and flexibility of a warehouse. There are
many different suppliers of real-time WMSs, but the general idea is for the system to handle
everything. It will manage the processes in the warehouse and communicate with other company
systems. A properly set up real-time WMS would handle all of the data within the warehouse
and analyze it to determine the most productive way of performing processes.
Inventory
The most cost-effective amount of inventory to store in a warehouse is the amount needed to
continue producing according to plan. However, because of the fact that unexpected things
happen, it is advisable to keep more inventory than absolutely necessary for the production. To
keep extra inventory will lower the costs once the unexpected happens.
For example, it might be possible to make a deal with a supplier to lower the cost per unit if
more goods are bought at the same time. For this to be a good option, the cost of storing the extra
11
goods needs to be lower compared to the extra transportation costs as well as the certainty that
the extra goods will be sold.
Another aspect that has to be taken into account is how quickly new goods can be delivered to
the warehouse. The lower the delivery time is, the fewer goods need to be stored in the
warehouse. This also coincides with the delivery reliability of the supplier.
Changing production lines causes down-time and is expensive. This means that the longer the
production runs, the lower the price per unit produced is. However, this would need more
material to be stored and also more space for storing finished products. If the cost for storing
material and finished products is lower than the cost per unit produced, and if the goods
produced are sure to sell, then it would be more cost-effective to store extra goods and let the
production run longer. It has to be taken into account that this is only true if the production
schedule is not hampered in any way.
There will be times when inventory is barely, or at all, moving through the warehouse. This kind
of obsolete inventory takes up space that could be used for faster moving products. There are a
few ways of tackling the problem, but this dead- inventory has already been paid for, and might
be used at a later stage. It might be possible to sell it, or otherwise scrap it if deemed unsellable.
It can be hard to justify throwing something away that might be used at a later stage however. On
the balance sheet it appears as an asset, and throwing it away will be negative for the results.
Layout
There is no perfect layout that can be applied to all warehouses, but there are a few things to
keep in mind when designing a warehouse layout. Using all of the space within the warehouse,
both horizontally and vertically and keeping movement to a minimum for example.
Depending on the goods in the warehouse, the layout requirements will differ. A company
dealing with lots of small goods will have different needs compared to a company that only have
the need to keep a few bigger goods in a warehouse.
The shape of the layout will differ depending on the size and shape of the actual building that is
the warehouse, as well as the nature of the goods within the warehouse. There are a few different
layout shapes that are normally used, with the U-flow warehouse being one of the most common
ones.
U-Flow Warehouse
The idea of the U-flow warehouse is that the fastest moving items within the warehouse are
stored closest to the production lines, and items moving slower are stored further away. The
warehouse takes the form of a U-shape as seen in the figure below, where goods enter on one
side, are transported to the correct location and then leave on the other side.
12
FIG 2.1 Layout of a U-flow warehouse. A is where items moving fast within the warehouse
are placed, B slower items and C slowest items.
As seen in the figure above, goods are only transported in one way inside the warehouse. With
traffic only going one way the risk of an accident happening is lower compared to when traffic is
going both ways, which means security measures can be lower in a U-flow warehouse compared
to other layouts with two-way traffic.
Storage Systems
There are several different storage systems used in warehousing today, where block storage and
single-deep racking by far are the most used methods.
Block Storage
Block storage means the goods are stored on the floor as high as safely possible. Block stacking
is a cheap method where no extra equipment is needed. There are a few drawbacks with the
method however. It is often difficult to use all of the space in a warehouse, especially vertically.
With block stacking, goods are often stored one upon the other. There is a risk of the one at the
bottom being crushed by the weight of the others. This requires the packaging to be sturdy, but
there will be times where the height of the warehouse is not fully used.
Because of the nature of the method, it will be difficult to achieve good rotation within the
warehouse. Goods arriving first will most likely leave last as it will be placed at the bottom with
13
other goods stored upon it. There will also be a problem if the material at the bottom is needed as
all of the other goods will have to be moved first.
Racking Storage
The single-deep racking system uses racks which can be adjusted to pretty much any dimensions
needed. This method is more expensive compared to block stacking because racks will have to
be acquired, but no further extra equipment is needed. Most of the negatives from block stacking
are negated with racking, as the goods are not stored upon each other with this method.
Depending on the dimensions of the goods, the space needed can vary. If the goods dimensions
are smaller, naturally the block stacking method would require less space.
Other Systems
As mentioned earlier, there are several different kinds of storage systems. There are automated
systems and more advanced racking systems like mobile racks for example. These are further
presented in recommendations provided by the author to REVL.
Picking Methods
There are many order-picking methods being used in warehousing today. These ranges from
more basic ones, like paper pick lists, to more advanced ones, like radio frequency identification.
They all bring something different to the table, and as the needs of different warehouses will
vary it is impossible to say one method is generally better than others.
Paper pick lists comes with relevant information regarding the order. This can be things like
order number, location of the goods and quantity to be picked for example. The information will
vary depending on what each company deems relevant to pick the order. After an order is picked,
the operator has to enter the details of the list manually into the computer system to keep the data
up to date. This is a cheap method which does not require any extra equipment to use. However,
mistakes can happen, especially when updating the information in the computer system. If
something is incorrectly entered into the system, it can be difficult to notice. Also, the system is
not updated in real time, which means that when goods are picked by the operator the system
will think the goods picked are still there. The correct information will not be seen in the system
until the operator, hopefully accurately, enters it.
Barcode Scanning
Another method is barcode scanning. This utilizes barcodes, which are series of vertical bars of
varied width that contain information. These barcodes can be read with scanners, which come in
different shapes like hand-held, truck mounted, static and lately also hands-free scanners. The
scanners all work in the same way – they scan the barcode, decipher the information and process
14
it by either storing it for later use or sending it to a computer immediately via radio frequency.
The system can therefore be updated in real time, if the scanner sends the data at the moment an
operator scans the barcode of the goods picked.
A problem with the barcode scanning method can occur when an operator has to put the scanner
away to handle the goods. A lapse in concentration can lead to the operator picking from the
wrong location or the wrong amount. Also, the scanners can be fragile and are easily broken if
dropped or exposed to water. This is somewhat negated with the introduction of the hands-free
scanner however, as operators do not have to put the scanners away to use their hands.
The barcode scanning method is more expensive compared to paper pick lists as extra equipment
in form of scanners has to be acquired. It will also take some time to set the system up since the
information regarding the barcodes has to be entered manually.
Other Methods
Other picking methods worth mentioning are pick by voice, pick by light and Radio Frequency
Identification. These are not further presented because they do not suit the needs of REVL, as
will be discussed in chapter 5.
Location Systems
Every company has some way of locating inventory. The more control of location there is, the
more accuracy of inventory there is. To further increase inventory accuracy, it is advisable to use
the same location system within the factory and also to track the storage and movement of
products.
There are different kinds of location systems, and like other systems described earlier, there is no
system that is the best one for every company.
Memory Systems
There are no set places in a memory system. Every article is placed where there is space and the
one placing it will at a later stage have a feeling about where it was placed, it is in other words
based on human recall. This kind of system is heavily operator dependent, as only the one
putting the article away will know, or have a feeling of, where it is placed. Problems will arise if
said operator quits, is ill or simply forgets where articles are placed. However, memory systems
are easy to learn and use if the number of articles are low.
In a fixed location system, every article has a place assigned to it. This makes it easy to learn
where it is and where to put it, which increases efficiency and productivity. The system itself is
inflexible because of the set places. Every article has to be assigned enough space to cover the
15
max probable amount stored at the warehouse at any given time. If the max amount of every
article is not stored at the warehouse, this means that the assigned space is not fully utilized.
Items are placed where there is free space, and at the same time tied to a location address which
can be used to locate items at a later stage. A random location system has the potential to fully
utilize all space within a warehouse as items are assigned to free space. This makes the system
flexible, with no items tied to any specific place. These kinds of systems require constant updates
to keep track of every movement within the warehouse and the updates will have to be made by
an operator in some way. This can be unnecessarily complicated, especially if the number of
articles in the warehouse is low.
Combination Systems
Fixed location systems and random location systems are two extremes of location systems and it
is uncommon that a warehouse only uses one of these. It is more conventional to use a
combination of the two, trying to get the best features out of both systems. This often results in a
few fixed locations for items often used and a majority of random locations for items used more
seldom. To acknowledge where an item should be placed, an ABC-analysis can be done.
This is based on “Pareto’s Law” or the “80-20 rule”, which says that 20 percent of all items
within a warehouse represent 80 percent of the items most used. Items in the warehouse are put
into A-B-C categories based on their usage, where A represents items most used, B items used
more seldom and C items used most seldom. To acquire highest efficiency, items in the A-
category should be put closest to the production, then B and last C.
According to De Koster et al. (2007) when determining the warehouse layout some factors must
be addressed. The first factor is the already existing facility. Subjects to be discussed here are
where receiving, picking, sorting and outgoing/delivery areas should take place. An appropriate
general objective for all factors is to reduce the time it takes to pick articles from inventory.
Decisions regarding storage layout are made at a tactical and an operational level and the levels
are highly interdependent. The layout is determined at a tactical level, and the placement of each
article is determined at both a tactical and an operational level. The order picking procedures are
16
also determined at these levels. The physical placement and picking of articles in and out of
inventory, is carried out at an operational level.
De Koster et al. (2007) mention a number of overall objectives when deciding upon the
warehouse layout. These include creating buffer space, minimizing the average travel distance,
minimizing the throughput time for an order, maximizing the use of space, maximizing the use
of the equipment and maximizing the use of labor.
According to Hassan (2002) the key elements of a warehouse layout include deciding upon input
and output doors, receiving and outgoing areas, material handling equipment and the placement
of articles in inventory. Products enter a warehouse at an input point and products exit a
warehouse at an output point. These input or output points are generally doors. The quantity and
location of input and output doors are affected by the placement of articles in the warehouse,
picking distances and time and any possible bottlenecks. Input and output doors are required for
aisles and material handling equipment.
Having a number of doors in a warehouse is important in order to reduce delays, offer routing
flexibility, reduce bottlenecks and simplify shipping. Doors can be placed in different locations
in the warehouse (Cullinane, Smith & Tompkins 1994).
But the locations should support the general flow pattern of the warehouse in order to keep a
simplistic flow and a structured movement (Hassan 2002).
Hassan (2002) recommends that highly demanded products or classes should not be placed in
fixed location. Products or members of a class that are expected to be ordered together should be
placed fairly close together. Hassan also mentions the possibility of placing articles based on the
warehouse input and output doors, instead of each other when the demand for some products
changes. In general, the most frequently picked articles should be placed close to the packing
tables or input and output doors. This will eliminate personnel travel time (De Koster et al.
2007).
There are several theoretical suggestions provided for designs of warehouse layout. It can be
argued that the layout, which ought to be chosen, is the one that complies with the specific
characteristics of a certain warehouse. The REVL Tumakuru Plant raw material warehouse is
distinguished by few complex operations. All operations, from unpacking of incoming raw
materials, cutting individual bars of materials, picking inventory etc. all are made manually.
Because of the company’s simple warehouse nature, a simple layout such as a flow shop layout
should be suggested for improvement.
Hassan (2002) mentions that a flow shop layout is particularly beneficial for warehouses where
the majority of products require the same type of handling procedures. REVL Tumakuru Plant
raw material warehouse would benefit from a flow shop layout because the majority of the
materials passing through the warehouse require the same type of handling procedure and follow
17
the same sequence. A flow shop layout also allows zones such as receiving, packing and
outgoing areas to be placed next to each other.
A-articles: stand for 20% of total articles and 80% of total sales
B-articles: stand for 30% of total articles and 15% of total sales
or
The ABC-analysis can be carried out based on several factors. One way is through a XYZ-
analysis, which is the classification of articles based on picking frequency. It differentiates
articles based on their fluctuations in consumption. The articles are differentiated in the
following way; X stands for products with a high and constant consumption throughout the year.
There are very little fluctuations in consumption for this type of product. Y stands for products
with stronger fluctuations in consumption. Z stands for products that are completely irregular in
consumption.
For the XYZ analysis a time period of twelve months is usually considered for the framework.
“The critical values of the coefficient of variation, which is an indicator for the stability of
consumption, are classified as following” (Scholz-Reiter et al. 2012 pp. 446-447)
18
A principal aspect of warehouse layout is the location of individual articles in the warehouse.
Which article location system to choose depends on the type of articles being stored, also what
type of storage facilities that are needed (Arnold et al. 2008; Oskarsson et al. 2006). These are
some basic recommendations for warehouse layout in regards to article location (Arnold et al.
2008; De Koster et al. 2007):
There are two main principles for placement of articles in a warehouse layout (Arnold et al.
2008: Oskarsson et al. 2006; TFK 2002). These are usually based on the picking frequency of
articles (TFK 2002) -
Fixed location
Floating location
Fixed location
In a fixed location the article is given a permanent location in inventory. No other articles are
allowed to be stored in that area (Arnold et al. 2008). The fixed locations should preferably be
next to each other in a more remote area of the warehouse (TFK 2002). The system makes it
possible to store products with little or no record keeping. It is similar to always keeping milk on
the same shelf in the refrigerator; things are organized and easy to find (Arnold et al. 2008). It
also aids warehouse personnel to immediately find the correct location of articles when placing
or taking products from inventory, thus reducing chances for dislocation of products (Chou,
Chen & Chen 2012; De Koster et al. 2007; TFK 2002). In addition to that it provides a straight
overview of what products are available in inventory, which simplifies counting of products
(TFK 2002). It is also useful when storing products of different weights. Heavy weighted
products can be placed on the bottom of a pallet and lighter products on top. However a principal
drawback of the fixed location system is that a location is held in reserve even if the product is
out of stock. Furthermore, there has to be enough space reserved for each product so that
maximum level of inventory can be stored (De Koster et al. 2007). Therefore the warehouse
space utilization is quite poor with this system (Arnold et al. 2008; De Koster et al. 2007; TFK
2002).
19
Floating location
In a floating location the article is placed wherever suitable space is available. The same article
may be located at different locations at the same time (Arnold et al. 2008). The picking
frequency is then more accurate as articles are located based on how frequently they are picked
(Oskarsson et al. 2006).
In a floating location system, a new load of incoming products (containing articles that already
have a place in inventory) will be placed at a different location than they were placed before. The
previous location is then emptied completely and not refilled, which also makes for a reliable
calculation of inventory.
When receiving incoming products - the inventory data system selects a suitable vacant location
for placement. This location is usually marked on some form of device. When the warehouse
personnel have placed the products in the warehouse, the location is signed into the system or the
warehouse personnel select an appropriate location and report the location to the inventory data
system (TFK 2002).
The benefit of this system is good cube utilization; the warehouse space is better utilized than in
the fixed location system. However the principle needs up-to-date information on article location
and the availability of vacant storage spaces, so products can be put away and picked fast.
Usually computers handle these tasks; assigning vacant locations to incoming products,
remembering where these products have been placed and guiding personnel to find them again.
Thereby cubes are well utilized and warehouse operations are efficient (Arnold et al. 2008;
Oskarsson et al. 2006).
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CHAPTER 3 - RESEARCH METHODOLOGY
21
This chapter will contain the selected methods of this study. The methodology will be presented
and explained to enable high scientific credibility. The included topics are research design,
scientific perspective and approach, research strategies and data collection, scientific credibility
for case studies, research ethics and hypothesis. The chapter concludes with a summary of the
methodologies chosen in order to distinguish an overview of the selected methods.
Case Study
A case study is a research design where the researcher focuses on a specific case or event and
deeply explores that particular area. An advantage of a case study is that the researcher gets close
to authentic conditions and obtains knowledge about the actual event. In general, case studies are
the most common method when applying questions such as "how" and "why”. Case studies are
usually descriptive and exploratory in nature and therefore suitable for these type of questions.
This study is characterized by a case study because of two reasons. One reason is that a specific
company (REVL) and a specific field (Tumakuru plant raw material warehouse) are examined. A
descriptive and explorative study will be conducted. This is because the aim of this study is to
identify an appropriate warehouse layout, whereby the author will gather empirical information
and knowledge of the actual events. Another aim is to explore how the company can utilize the
use of space in the warehouse through theoretical findings. There is a specific problem and task
at hand that needs to be studied. Because of these reasons this thesis is recognized as a case
study.
22
3.3 SCIENTIFIC PERSPECTIVE AND APPROACH
Positivism and deduction
The positivistic perspective believes that knowledge is created based on theories, formulas and
rules. The researcher should have an objective relationship with the study object and his personal
opinions, values and beliefs should not affect the research process. It should be possible to
completely replace the researcher without altering the results of the study. In a deductive
approach the theory and the hypotheses derived will control the data collection process.
In order to fulfill the purpose of this study and to complete the assignment, theoretical
frameworks will be used. Thus, the results will be based on theoretical findings. Thereby an
objective perspective will be pursued and this study will follow a positivistic perspective. The
author has initiated this study by gaining an understanding of the situation at REVL Tumakuru
Plant raw material warehouse and the issues that are concerned. The theoretical findings will
guide the empirical data and analysis. Therefore this thesis will be characterized by a deductive
nature.
The quantitative information will be collected through excel files containing transaction data for
REVL Tumakuru Plant’s raw materials. This is data from approximately one year back,
specifically data of 10 months (APR-2018 to JAN-2019) of FY 2018-2019. The reason for doing
an ABC-XYZ analysis is because REVL wants specific suggestions for where to place
Tumakuru Plant’s raw materials. As Tumakuru Plant’s raw materials are stored currently in a
disorganized manner, and hold a consistent demand range - they are appropriate for such an
analysis. The ABC-XYZ analysis will be based on the consumption value and diameter of the
bars as this is what the company preferred and the information they provided. This information is
secondary as the data has been compiled by Materials Management Department, REVL – Head
Office (Chennai) and was provided to the author. In chapter 5, a suggested warehouse layout will
be provided for REVL Tumakuru Plant Raw Material Warehouse and if possible the finalized
warehouse layout that the company wishes to implement, this layout will include more specific
recommendations for placement of REVL Tumakuru Plant’s raw materials.
23
FIG 3.1 Scientific Credibility for Case Studies (from Yin 2009 Page 41)
Construct validity
In order to achieve construct validity Yin (2009) suggests clearly defining which concept that is
being studied. This should be supported by multiple sources of evidence. Further on Yin (2009)
suggests creating a chain of evidence and providing key informants a draft of the empirical data.
In chapter one, the concept of this study was clearly defined in the objective, need, scope and
limitations of the study. The concept of this study is warehouse layout and its key elements. In
the objective of the study and need of the study, theoretical information was presented together
with REVL Tumakuru Plant’s situation and problem. This was done to show, that this type of
situation and problem is not unique and that there is supportive theory available.
Internal validity
The internal validity of a case study is apparent in the analysis stage. Yin (2009) addresses the
importance of pattern matching, logical models and dealing with opposing explanations. The
analysis of this study will be based on theoretical findings in chapter five and empirical findings
in chapter four. The similarities and differences will provide an analytical foundation. Therefore
this thesis will follow an analytical pattern matching. In chapter 5, concrete suggested actions
will be given to REVL for improvement of warehouse layout and placement of articles. These
will purely be based on theoretical information and analytical discussions. Also, as results are
based on empirical information obtained from, the internal validity will be strengthened.
Furthermore a number of theoretical explanations will be presented. A great number of
theoretical sources, providing different perspectives of the same matter, will increase the internal
validity of this study.
24
External validity
In order to achieve external validity in a case study, Yin (2009) mentions the importance of using
theoretical information. External validity is generated through the use of theory in this thesis, as
the results are based on theoretical findings concerning warehouse layout. The theoretical
findings can be generalized to other similar studies and cases. However it is important to keep in
mind that as this is a single-case study, the results of the thesis will only be converted to REVL
Tumakuru Plant’s situation.
Reliability
The aim of reliability is to make sure that if the same study was conducted at a later date, the
results would be the same. The purpose is to decrease miscalculations and biases. One way of
achieving this is to clearly document the actions taken in the study. The researcher should
pretend that there is someone constantly overlooking his shoulder and thereby document every
step (Yin 2009). This study will generate reliability by applying standard procedures when
collecting empirical data.
These ethical principles exist to inform the researcher that the choices and decisions taken in a
study may lead to implications for the involved parties. If no consideration is given to ethical
principles, consequences may occur. For example, it can cause damage to the participants in
terms of physical injury, stress or forcing respondents to do something they do not want to.
The DGM of MMD is the person whom initiated the idea behind this study and introduced the
study object. He is the one whom will inform the personnel on what the study is about. Therefore
the author will not be required to do it themselves. There have not been any requirements from
REVL regarding confidentiality in terms of the warehouse layout. The author also asked the
DGM if there were any requests to classify the study, which were material serial numbers,
material descriptions, supplier names and supplier code based on the abbreviations of the former.
The excel files that will be provided for the ABC-XYZ analysis of REVL Tumakuru Plant Raw
Materials, will not contain any material names or purchase prices, thus no other partner than
25
REVL can determine what products they include. Also the data collected for this study will only
be used in this study.
3.7 HYPOTHESIS
NULL HYPOTHESIS
H0: There are sufficient storage windows within the present racks at REVL Tumakuru Plant Raw
Material Warehouse to assign all the raw materials a fixed unique storage window, which is able
to accommodate the desired quantity of the material, under the proposed article placement
guidelines proposed by the Materials Management Department (MMD).
Develop a raw material placement / location design with the current racks, with emphasis on ease
of recognition of raw materials, which would facilitate the identification of materials by the
employees in the plant.
ALTERNATE HYPOTHESIS
H1: There is an insufficiency of storage windows within the present racks at REVL Tumakuru
Plant Raw Material Warehouse to assign all the raw materials a fixed unique storage window,
which is able to accommodate the desired quantity of the material, under the proposed article
placement guidelines proposed by the Materials Management Department (MMD).
Develop a raw material placement / location design with the current racks and while introducing
extra rack(s) as required, with emphasis on ease of recognition of raw materials, which would
facilitate the identification of materials by the employees in the plant.
26
3.8 SUMMARY OF RESEARCH METHODOLOGY
Information requirements,
consent requirements,
Research ethics
confidentiality obligations,
utilization requirements
27
CHAPTER 4 - DATA ANALYSIS AND INTERPRETATION
28
This chapter will contain the selected empirical analysis for this study and guide the reader on
how it was carried out in a sequential manner with the aid of guidelines stated by REVL MMD.
4.1 PRELIMINARY ANALYSIS
Preliminary Storage Location Analysis
Refer to Appendix – A for graphical representation of the racks.
Racks currently present in the warehouse - R1, R2, R3, R4, R5, R6, R7
Rows present in racks(from top to bottom) - A,B,C,D,E,F,G,H
Reference to a storage location/slot/window –
R#RackNumber#RowName# WindowNumber
29
MAX HEIGHT FROM GROUND(CM)
MEAN MAX HEIGHT
ROWS
R1 R2 R3 R4 R5 R6 R7 FROM GROUND(CM)
Mean Height of REVL Tumakuru Plant warehouse personnel as stated by MMD = 170 CM
The materials can be segregated into 2 major categories on the basis of their suppliers –
Domestic & Imports. The Grade 11 Series represents the Grade 11 type of materials, it has only
domestic suppliers. The necessity to show it separately is due to REVL’s proposed plan to
segregate the materials under this grade not only on the basis of diameter of the bar but also its 3
existing suppliers and allocate a unique storage window for each of them. Note that it is not true
that all materials under this grade are necessarily being supplied by all 3 suppliers.
The unique keys to identify the materials in absence of their serial number(redacted from this
study in compliance with REVL classified data policy) are –
For all materials excluding Grade 11 type of materials – GRADE & DIAMETER(DIA)
For all Grade 11 type of materials – GRADE, DIAMETER(DIA), SUPPLIER CODE
5 materials under Grade 11 are removed post preliminary storage material analysis on account of
0 consumption in the given period of 10 months (APR-2018 to JAN-2019), as well as due to
30
having 0 closing quantity - indicating absence of the material in the raw material warehouse of
the plant.
Now, the remaining Grade 11 type of materials are analysed separately under the 3 respective
suppliers for their mean monthly consumption quantity which will be utilised for storage
placement. However, in regards to the ABC-XYZ analysis the mean of the grand total of all 3
respective suppliers for the stated duration of 10 months is utilised. MMD wants to store all
Grade 11 type of materials after further segregation on the basis of the 3 respective suppliers, but
it does not want to treat them as independent materials altogether.
Total Grade 11 type of materials segregated under the 3 respective suppliers = 100
Formulae used –
Monthly Consumption Quantity = (Consumption Quantity/10)
31
Standardised Monthly Consumption Quantity = GREATER(Monthly Consumption
Quantity, Closing Quantity)
Final Consumption Quantity(For 20 Days) = (Standardised Monthly Consumption
Quantity/30)*20
Final Consumption Quantity Used for ABC-XYZ analysis = GREATER(Final
Consumption Quantity(For 20 Days), Minimum Order Quantity(MOQ))
REVL MMD has determined that holding 20 Days’ worth of inventory or MOQ, whichever is
greater among the two for any specific material is the most appropriate measure to conduct an
ABC-XYZ analysis. REVL MMD has also determined the veracity of the above formulae used
and given their permission to go ahead.
4.2 ABC-XYZ ANALYSIS
ABC-analysis
In this specific study the consumption value method of ABC analysis with minimal tweaks is
utilized as per the request by REVL MMD as follows –
A-articles: 0-70 % of the accumulated consumption quantity.
B-articles: 70-90 % of the accumulated consumption quantity.
C-articles: 90-100 % of the accumulated consumption quantity.
XYZ-analysis
The ABC-analysis can be carried out based on several factors. One way is through a XYZ-
analysis, which is the classification of articles based on picking frequency. This method is more
accurate as the positioning of articles is based on how frequently they are picked from inventory.
It differentiates articles based on their fluctuations in consumption.
However, REVL does not have data on picking frequency. Also, the obsolescence of raw
materials is observed only on an annual basis. Thus XYZ-analysis is carried out using another
key factor – the Diameter (DIA) of the individual material bars as follows –
X-articles: Diameter of material bar is greater than 14 MM.
Y-articles: Diameter of material bar is between 9 MM & 14 MM.
Z-articles: Diameter of material bar is less than 9 MM.
32
FIG 4.1 ABC Analysis
33
FIG 4.2 Weight VS Diameter of Material
34
FIG 4.3 Diameter VS Bars of Material
35
TABLE 4.7 ABC-XYZ Matrix Terminologies
36
TABLE 4.9 ABC-XYZ Final (Combines Grade 11 Supplier Wise Split & NM Class)
37
Storage Placement Methodology
Article Placement guidelines -
o Rows meant for A Class Materials – C,D,E & F
o Rows meant for B Class Materials – B,C,D,E & F
o Rows meant for C Class Materials – A,G & H
o Rows meant for NM Class Materials - G & H
Assumed perfect Square Packing of Material Bars within the storage windows, illustrated
below as follows –
38
For Non-Moving materials being bundled together grade wise –
o Min. Bars = (Closing Quantity of Non-Moving material / (Mass per individual
Bar of the Material))
o Area occupied by each NM material = ((Min. Bars)*(Area of a square with sides
equivalent to the Mean Diameter of the Material Bar))
o Storage Window Utilisation Rate = (Sum of Area occupied by each NM material
with same grade / 80% of Actual Physical Area of the Storage Window)
Consider grouping all similar grade materials within the same rack as priority #1. Also,
allocate similar grade materials next to one another (whether horizontally or vertically)
within the same rack.
Null Hypothesis H0 is rejected as with the current racks & the above guidelines enforced
there is an insufficiency in the availability of storage windows for A & B class materials
as shown below. Thus Alternate Hypothesis H1 is accepted.
39
CHAPTER 5 - SUMMARY
40
In this chapter the conclusion of this study is presented. This chapter will provide concrete
suggestions on how REVL can design their warehouse layout based on the analysis carried out
in the previous chapter. The purpose was to identify REVL Tumakuru Plant’s current raw
material warehouse layout and article placement and the problems associated with it, as well as
to provide suggested actions for improvements. This was accomplished so REVL can better
utilize the warehouse space. The chapter will conclude with the authors’ own criticisms and
suggestion for further studies.
5.1 FINDINGS
A new Rack 8 with identical dimensions to Rack 6 & Rack 7 is designed to allocate
Grade 11 materials and is proposed to be placed in the warehouse as follows -
41
R R R
A A A
C C C
K K K
6 7 8
BAR CUTTING
MACHINE
RACK 5
RACK 4
RACK 3
RACK 2
RACK 1
UNLOADING AREA
ENTRANCE
42
It is suggested to upgrade from Paper Pick Lists and utilize Bar-Code Scanners for the
picking system to identify materials in the warehouse since the pick order rate is low.
Since, the warehouse in concern is transitioning from a memory based inventory location
system to a fixed inventory location system, no immediate suggestions are recommended.
However, while considering effective use of automation to modernize the warehouse in
the future, REVL may look into combined fixed-floating inventory location system.
5.3 CONCLUSION
The suggested warehouse layout and article placement / inventory location system provided in
this study is not conclusively complete and some adjustments need to be made. The suggested
layout might lack certain details, which would be supplemented by more profound and practical
knowledge about the warehouse. Therefore it is important for the company whom it holds such
profound and practical knowledge, to apply it to the suggested layout of this study. Thus more
authentic layout conditions are to be achieved.
The author is aware of the fact that undertaking an ABC/XYZ analysis with MOQ distorts the
classification; however this was done at the behest of REVL MMD to remove seasonality and to
article placement design for maximum expected storage quantity. This resulted in some manual
interventions by REVL MMD to correct said distortions. This may be resolved by factoring
MOQ just before article placement / inventory location analysis and keeping ABC/XYZ analysis
separate from it, in future research.
Future Research may consider utilizing Triangular or Hexagonal Packing of Material Bars within
the storage windows, as they give a more accurate description of the actual storage scenario.
43
FIG 5.2 Triangular Packing FIG 5.3 Hexagonal Packing
It may also look into incorporating the material retrieval time aspect based on the physical
distance that needs to be covered to retrieve said material. This study has not carried out any
calculation in regards of costs. Costs for implementing the different suggested actions could be a
recommended action for further studies. In order to implement the suggested warehouse layout
of this thesis, further studies can be done on the physical construction of the warehouse building
and what is physically possible to do. Furthermore, rules and regulations on warehouse layout
and the material used in a warehouse can be studied upon. Are there any regulations that need to
be followed and what rules concerning safety have to be followed? This will further improve the
warehouse layout.
44
CHAPTER 6 -ANNEXURE
45
APPENDIX - A
46
RACK1 Length/ 366cm RACK 2 Length/ 366cm
1 2 3 4 5 6 1 2 3 4 5 6
A A
Height
Height
28 28 28 28 28 28 18 18 18 18 18 18
B B
Height
Height
30 30 30 30 30 30 27 27 27 27 27 27
C C
Height
Height
30.5 30.5 30.5 30.5 30.5 30.5 26.5 26.5 26.5 26.5 26.5 26.5
D D
Height
Height
28 28 28 28 28 28 25.5 25.5 25.5 25.5 25.5 25.5
E E
Height
Height
29 29 29 29 27 27 26 26 26
F F
Height
Height
G G
Height
Height
28 28 28 28 28 28 54 54 54
A A
Height
Height
20 20 20 20 20 20 23.5 23.5 23.5
B B
Height
Height
18.5 18.5 18.5 18.5 18.5 18.5 25 25 25
C C
Height
Height
23 23 23 25 25 25
D D
Height
Height
23 23 23 26.5 26.5 26.5
E E
Height
Height
F F
Height
Height
28 28 28 28
G
Height
G
27 25.5 24 25
58
6 7 8 9
Height
cm width 54 50 26 24
26 26 26 26
48
RACK 6 Length/ 366cm RACK 7 Length/ 366cm
1 2 3 4 5 6 1 2 3 4 5 6
A A
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
1 2 3 4 5 6 1 2 3 4 5 6
B B
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
1 2 3 4 5 6 1 2 3 4 5 6
C C
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
1 2 3 4 5 6 1 2 3 4 5 6
D D
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
1 2 3 4 5 6 1 2 3 4 5 6
E E
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
1 2 3 4 5 6 1 2 3 4 5 6
F F
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
1 2 3 4 5 6 1 2 3 4 5 6
G G
Height
Height
30 30 30 30 30 30 30 30 30 30 30 30
cm width 25.5 25.5 25.5 25.5 25.5 25.5 cm width 25.5 25.5 25.5 25.5 25.5 25.5
49
RACK 5 Length/ 359cm
1 2 3
A
Height
25 25 25
cm width 25 29 27
1 2 3
B
Height
25 25 25
cm width 26 29 27
1 2 3
C
Height
25 25 25
cm width 26 28 27
1 2 3
D
Height
26 26 26
cm width 26 28 27
1 2 3
E
Height
24 24 24
cm width 26 28 27
1 2 3
F
Height
25 25 25
cm width 26 28 27
1 2
G
Height
23.5 23.5
cm width 43 43
1 2
H
Height
21.5 21.5
cm width 43 43
50
APPENDIX - B
51
MEASUREMENTS (IN CM)
STORAGE ROW RACK HEIGHT WIDTH LENGTH EFFECTIVE STORAGE AREA EFFECTIVE STORAGE AREA (80% OF
LOCATION NUMBER (80% OF HEIGHT X WIDTH) HEIGHT X WIDTH) IN METRE^2
R1A1 A R1 28 23.5 366 526.4 0.05264
R1A2 A R1 28 26 366 582.4 0.05824
R1A3 A R1 28 26.5 366 593.6 0.05936
R1A4 A R1 28 28.5 366 638.4 0.06384
R1A5 A R1 28 25 366 560 0.056
R1A6 A R1 28 24.5 366 548.8 0.05488
R1B1 B R1 30 24 366 576 0.0576
R1B2 B R1 30 25.5 366 612 0.0612
R1B3 B R1 30 27.5 366 660 0.066
R1B4 B R1 30 27.5 366 660 0.066
R1B5 B R1 30 26 366 624 0.0624
R1B6 B R1 30 24 366 576 0.0576
R1C1 C R1 30.5 25 366 610 0.061
R1C2 C R1 30.5 25 366 610 0.061
R1C3 C R1 30.5 28 366 683.2 0.06832
R1C4 C R1 30.5 27.5 366 671 0.0671
R1C5 C R1 30.5 26 366 634.4 0.06344
R1C6 C R1 30.5 24 366 585.6 0.05856
R1D1 D R1 28 25 366 560 0.056
R1D2 D R1 28 25 366 560 0.056
R1D3 D R1 28 28 366 627.2 0.06272
R1D4 D R1 28 27.5 366 616 0.0616
R1D5 D R1 28 26 366 582.4 0.05824
R1D6 D R1 28 24 366 537.6 0.05376
R1E1 E R1 29 25 366 580 0.058
R1E2 E R1 29 24.5 366 568.4 0.05684
R1E3 E R1 29 28 366 649.6 0.06496
52
R1E4 E R1 29 28 366 649.6 0.06496
R1E5 E R1 27 26.5 366 572.4 0.05724
R1E6 E R1 27 23.5 366 507.6 0.05076
R1F1 F R1 27 25 366 540 0.054
R1F2 F R1 27 24 366 518.4 0.05184
R1F3 F R1 27 28.5 366 615.6 0.06156
R1F4 F R1 27 28 366 604.8 0.06048
R1F5 F R1 27 26 366 561.6 0.05616
R1F6 F R1 27 23.5 366 507.6 0.05076
R1G1 G R1 28 25.5 366 571.2 0.05712
R1G2 G R1 28 23.5 366 526.4 0.05264
R1G3 G R1 28 29 366 649.6 0.06496
R1G4 G R1 28 27.5 366 616 0.0616
R1G5 G R1 28 26 366 582.4 0.05824
R1G6 G R1 28 23.5 366 526.4 0.05264
R2A1 A R2 18 25 366 360 0.036
R2A2 A R2 18 25 366 360 0.036
R2A3 A R2 18 27 366 388.8 0.03888
R2A4 A R2 18 28 366 403.2 0.04032
R2A5 A R2 18 25.5 366 367.2 0.03672
R2A6 A R2 18 24.5 366 352.8 0.03528
R2B1 B R2 27 25 366 540 0.054
R2B2 B R2 27 25 366 540 0.054
R2B3 B R2 27 27 366 583.2 0.05832
R2B4 B R2 27 28 366 604.8 0.06048
R2B5 B R2 27 25.5 366 550.8 0.05508
R2B6 B R2 27 24.5 366 529.2 0.05292
R2C1 C R2 26.5 24.5 366 519.4 0.05194
R2C2 C R2 26.5 25 366 530 0.053
R2C3 C R2 26.5 27 366 572.4 0.05724
53
R2C4 C R2 26.5 28 366 593.6 0.05936
R2C5 C R2 26.5 25.5 366 540.6 0.05406
R2C6 C R2 26.5 24.5 366 519.4 0.05194
R2D1 D R2 25.5 24.5 366 499.8 0.04998
R2D2 D R2 25.5 25 366 510 0.051
R2D3 D R2 25.5 27 366 550.8 0.05508
R2D4 D R2 25.5 28 366 571.2 0.05712
R2D5 D R2 25.5 25.5 366 520.2 0.05202
R2D6 D R2 25.5 24.5 366 499.8 0.04998
R2E1 E R2 26 52 366 1081.6 0.10816
R2E2 E R2 26 56 366 1164.8 0.11648
R2E3 E R2 26 53 366 1102.4 0.11024
R2F1 F R2 25.5 52 366 1060.8 0.10608
R2F2 F R2 25.5 56 366 1142.4 0.11424
R2F3 F R2 25.5 53 366 1081.2 0.10812
R2G1 G R2 54 52 366 2246.4 0.22464
R2G2 G R2 54 55 366 2376 0.2376
R2G3 G R2 54 53 366 2289.6 0.22896
R3A1 A R3 20 27 359 432 0.0432
R3A2 A R3 20 22.5 359 360 0.036
R3A3 A R3 20 26.5 359 424 0.0424
R3A4 A R3 20 24.5 359 392 0.0392
R3A5 A R3 20 25 359 400 0.04
R3A6 A R3 20 23 359 368 0.0368
R3B1 B R3 18.5 27.5 359 407 0.0407
R3B2 B R3 18.5 22.5 359 333 0.0333
R3B3 B R3 18.5 26.5 359 392.2 0.03922
R3B4 B R3 18.5 24.5 359 362.6 0.03626
R3B5 B R3 18.5 25 359 370 0.037
R3B6 B R3 18.5 23 359 340.4 0.03404
54
R3C1 C R3 23 53.5 359 984.4 0.09844
R3C2 C R3 23 55 359 1012 0.1012
R3C3 C R3 23 53 359 975.2 0.09752
R3D1 D R3 23 53.5 359 984.4 0.09844
R3D2 D R3 23 55 359 1012 0.1012
R3D3 D R3 23 53 359 975.2 0.09752
R3E1 E R3 26 53.5 359 1112.8 0.11128
R3E2 E R3 26 55 359 1144 0.1144
R3E3 E R3 26 53 359 1102.4 0.11024
R3F1 F R3 26.5 53.5 359 1134.2 0.11342
R3F2 F R3 26.5 55 359 1166 0.1166
R3F3 F R3 26.5 25 359 530 0.053
R3F4 F R3 26.5 25 359 530 0.053
R3G1 G R3 58 53 359 2459.2 0.24592
R3G2 G R3 28 27 359 604.8 0.06048
R3G3 G R3 28 25.5 359 571.2 0.05712
R3G4 G R3 28 24 359 537.6 0.05376
R3G5 G R3 28 25 359 560 0.056
R3G6 G R3 26 26.5 359 551.2 0.05512
R3G7 G R3 26 25.5 359 530.4 0.05304
R3G8 G R3 26 24 359 499.2 0.04992
R3G9 G R3 26 25 359 520 0.052
R4A1 A R4 23.5 54 359 1015.2 0.10152
R4A2 A R4 23.5 53 359 996.4 0.09964
R4A3 A R4 23.5 54 359 1015.2 0.10152
R4B1 B R4 25 54 359 1080 0.108
R4B2 B R4 25 53 359 1060 0.106
R4B3 B R4 25 54 359 1080 0.108
R4C1 C R4 25 54 359 1080 0.108
R4C2 C R4 25 54 359 1080 0.108
55
R4C3 C R4 25 54 359 1080 0.108
R4D1 D R4 26.5 54 359 1144.8 0.11448
R4D2 D R4 26.5 53 359 1123.6 0.11236
R4D3 D R4 26.5 54 359 1144.8 0.11448
R4E1 E R4 25.5 54 359 1101.6 0.11016
R4E2 E R4 25.5 53 359 1081.2 0.10812
R4E3 E R4 25.5 54 359 1101.6 0.11016
R4F1 F R4 25 54 359 1080 0.108
R4F2 F R4 25 53 359 1060 0.106
R4F3 F R4 25 54 359 1080 0.108
R4G1 G R4 48.5 54 359 2095.2 0.20952
R4G2 G R4 48.5 50 359 1940 0.194
R4G3 G R4 48.5 26 359 1008.8 0.10088
R4G4 G R4 48.5 24 359 931.2 0.09312
R5A1 A R5 25 25 359 500 0.05
R5A2 A R5 25 29 359 580 0.058
R5A3 A R5 25 27 359 540 0.054
R5B1 B R5 25 26 359 520 0.052
R5B2 B R5 25 29 359 580 0.058
R5B3 B R5 25 27 359 540 0.054
R5C1 C R5 25 26 359 520 0.052
R5C2 C R5 25 28 359 560 0.056
R5C3 C R5 25 27 359 540 0.054
R5D1 D R5 26 26 359 540.8 0.05408
R5D2 D R5 26 28 359 582.4 0.05824
R5D3 D R5 26 27 359 561.6 0.05616
R5E1 E R5 24 26 359 499.2 0.04992
R5E2 E R5 24 28 359 537.6 0.05376
R5E3 E R5 24 27 359 518.4 0.05184
R5F1 F R5 25 26 359 520 0.052
56
R5F2 F R5 25 28 359 560 0.056
R5F3 F R5 25 27 359 540 0.054
R5G1 G R5 23.5 43 359 808.4 0.08084
R5G2 G R5 23.5 43 359 808.4 0.08084
R5H1 H R5 21.5 43 359 739.6 0.07396
R5H2 H R5 21.5 43 359 739.6 0.07396
R6A1 A R6 30 25.5 366 612 0.0612
R6A2 A R6 30 25.5 366 612 0.0612
R6A3 A R6 30 25.5 366 612 0.0612
R6A4 A R6 30 25.5 366 612 0.0612
R6A5 A R6 30 25.5 366 612 0.0612
R6A6 A R6 30 25.5 366 612 0.0612
R6B1 B R6 30 25.5 366 612 0.0612
R6B2 B R6 30 25.5 366 612 0.0612
R6B3 B R6 30 25.5 366 612 0.0612
R6B4 B R6 30 25.5 366 612 0.0612
R6B5 B R6 30 25.5 366 612 0.0612
R6B6 B R6 30 25.5 366 612 0.0612
R6C1 C R6 30 25.5 366 612 0.0612
R6C2 C R6 30 25.5 366 612 0.0612
R6C3 C R6 30 25.5 366 612 0.0612
R6C4 C R6 30 25.5 366 612 0.0612
R6C5 C R6 30 25.5 366 612 0.0612
R6C6 C R6 30 25.5 366 612 0.0612
R6D1 D R6 30 25.5 366 612 0.0612
R6D2 D R6 30 25.5 366 612 0.0612
R6D3 D R6 30 25.5 366 612 0.0612
R6D4 D R6 30 25.5 366 612 0.0612
R6D5 D R6 30 25.5 366 612 0.0612
R6D6 D R6 30 25.5 366 612 0.0612
57
R6E1 E R6 30 25.5 366 612 0.0612
R6E2 E R6 30 25.5 366 612 0.0612
R6E3 E R6 30 25.5 366 612 0.0612
R6E4 E R6 30 25.5 366 612 0.0612
R6E5 E R6 30 25.5 366 612 0.0612
R6E6 E R6 30 25.5 366 612 0.0612
R6F1 F R6 30 25.5 366 612 0.0612
R6F2 F R6 30 25.5 366 612 0.0612
R6F3 F R6 30 25.5 366 612 0.0612
R6F4 F R6 30 25.5 366 612 0.0612
R6F5 F R6 30 25.5 366 612 0.0612
R6F6 F R6 30 25.5 366 612 0.0612
R6G1 G R6 30 25.5 366 612 0.0612
R6G2 G R6 30 25.5 366 612 0.0612
R6G3 G R6 30 25.5 366 612 0.0612
R6G4 G R6 30 25.5 366 612 0.0612
R6G5 G R6 30 25.5 366 612 0.0612
R6G6 G R6 30 25.5 366 612 0.0612
R7A1 A R7 30 25.5 366 612 0.0612
R7A2 A R7 30 25.5 366 612 0.0612
R7A3 A R7 30 25.5 366 612 0.0612
R7A4 A R7 30 25.5 366 612 0.0612
R7A5 A R7 30 25.5 366 612 0.0612
R7A6 A R7 30 25.5 366 612 0.0612
R7B1 B R7 30 25.5 366 612 0.0612
R7B2 B R7 30 25.5 366 612 0.0612
R7B3 B R7 30 25.5 366 612 0.0612
R7B4 B R7 30 25.5 366 612 0.0612
R7B5 B R7 30 25.5 366 612 0.0612
R7B6 B R7 30 25.5 366 612 0.0612
58
R7C1 C R7 30 25.5 366 612 0.0612
R7C2 C R7 30 25.5 366 612 0.0612
R7C3 C R7 30 25.5 366 612 0.0612
R7C4 C R7 30 25.5 366 612 0.0612
R7C5 C R7 30 25.5 366 612 0.0612
R7C6 C R7 30 25.5 366 612 0.0612
R7D1 D R7 30 25.5 366 612 0.0612
R7D2 D R7 30 25.5 366 612 0.0612
R7D3 D R7 30 25.5 366 612 0.0612
R7D4 D R7 30 25.5 366 612 0.0612
R7D5 D R7 30 25.5 366 612 0.0612
R7D6 D R7 30 25.5 366 612 0.0612
R7E1 E R7 30 25.5 366 612 0.0612
R7E2 E R7 30 25.5 366 612 0.0612
R7E3 E R7 30 25.5 366 612 0.0612
R7E4 E R7 30 25.5 366 612 0.0612
R7E5 E R7 30 25.5 366 612 0.0612
R7E6 E R7 30 25.5 366 612 0.0612
R7F1 F R7 30 25.5 366 612 0.0612
R7F2 F R7 30 25.5 366 612 0.0612
R7F3 F R7 30 25.5 366 612 0.0612
R7F4 F R7 30 25.5 366 612 0.0612
R7F5 F R7 30 25.5 366 612 0.0612
R7F6 F R7 30 25.5 366 612 0.0612
R7G1 G R7 30 25.5 366 612 0.0612
R7G2 G R7 30 25.5 366 612 0.0612
R7G3 G R7 30 25.5 366 612 0.0612
R7G4 G R7 30 25.5 366 612 0.0612
R7G5 G R7 30 25.5 366 612 0.0612
R7G6 G R7 30 25.5 366 612 0.0612
59
60
APPENDIX - C
60
GRADE MEAN DIA REASON FOR REMOVAL
11 10.275 0 CLOSING QUANTITY & 0 CONSUMPTION IN 10 MONTHS
11 10.425 0 CLOSING QUANTITY & 0 CONSUMPTION IN 10 MONTHS
11 12.025 0 CLOSING QUANTITY & 0 CONSUMPTION IN 10 MONTHS
11 14.9 0 CLOSING QUANTITY & 0 CONSUMPTION IN 10 MONTHS
11 15.1 0 CLOSING QUANTITY & 0 CONSUMPTION IN 10 MONTHS
43 6.3 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
19 7.425 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
41 8.425 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
57 15.025 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
40 13.6 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
44 11.875 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
57 11.625 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
04 11.35 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
04 11.15 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
44 12.025 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
41 10.625 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
42 7.325 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
15 10.35 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
57 10.025 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
46 16.425 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
54 7.975 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
18 7.625 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
19 18.8 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
43 17.925 0 CLOSING QUANTITY & LESS THAN 100 KG CONSUMPTION IN 10 MONTHS
61
APPENDIX - D
62
MATERIAL GRADE
ANALYSIS
TOTAL
CLASS
11 04 05 10 15 18 19 40 41 42 43 44 46 47 51 54 57 58 61
AX 2 0 1 1 0 0 2 0 0 0 1 1 1 0 0 0 0 0 0 9
AY 34 0 0 0 0 0 1 1 0 2 8 4 3 0 2 0 0 0 0 55
AZ 16 0 0 0 0 0 0 0 1 2 4 2 0 0 0 0 0 0 0 25
BX 7 0 0 0 0 0 0 1 0 0 1 1 0 0 0 0 0 0 0 10
BY 17 0 0 0 0 0 4 0 0 2 9 4 0 4 1 4 0 1 0 46
BZ 18 0 0 0 0 0 0 0 0 1 3 0 0 0 1 1 0 0 0 24
CX 0 0 0 0 0 0 0 1 0 0 1 0 1 7 0 0 0 0 0 10
CY 1 0 0 0 0 0 2 2 1 0 2 2 0 0 0 0 0 0 0 10
CZ 0 0 0 0 0 0 0 0 0 0 4 0 2 0 0 0 0 0 0 6
NM 5 2 0 0 1 1 5 1 3 4 2 2 3 3 0 1 3 0 1 37
63
APPENDIX - E
64
RACK1 Length/ 366cm
28 1 2 3 4 5 6
A
Height
45.16853933
cm width 23.5 26 26.5 28.5 25 24.5
30 1 2 3 4 5 6
B
Height
C
Height
D
Height
E
Height
F
Height
G
Height
65
RACK 2 Length/ 366cm
18 1 2 3 4 5 6
A
Height
B
Height
C
Height
D
Height
E
Height
46 16.275
AX 5995.90544
70.07125891
cm width 52 56 53
26 1 2 3
F
Height
05 53
AX 6928.4824
87.82608696
cm width 52 56 53
54 1 2 3
G
Height
cm width 52 55 53
66
RACK 3 Length/ 359cm
20 1 2 3 4 5 6
A
Height
B
Height
C
Height
D
Height
E
Height
44 10.8 19 18.6
AY 900 AX 2520.492
33.01886792 46.60493827
cm width 53.5 55 53
26.5 1 2 3 4
F
Height
44 8.4 44 13.4
AZ/3685.6 3685.6 AY 842.2656
53.16708229 65.08474576
width 53.5 55 25 25
58 1 28 HEIGHT 2 3 4 5
Height
G 41.36904762
26 HEIGHT 6
49.52380952
7
46.33027523
8
43.90243902
9
Height
67
RACK 4 Length/ 359cm
23.5 1 2 3
A
Height
B
Height
C
Height
43 9.425
AY 10214.0632
76.71453929
cm width 54 53 54
26.5 1 2 3
D
Height
43 9.425 43 10.625
AY 10214.0632 AY 877.8254
76.71453929 31.75542406
cm width 54 53 54
25.5 1 2 3
E
Height
43 10.3 43 18
AY 1526.479 AX 3319.2
57.32177264 63.00148588
cm width 54 53 54
25 1 2 3
F
Height
G
Height
cm width 54 50 26 24
68
RACK 5 Length/ 359cm
25 1 2 3
A
Height
B
Height
C
Height
D
Height
43 9.725
AY 3079.3712
75.66048342
cm width 26 28 27
24 1 2 3
E
Height
43 8.725
AZ 2974.4392
79.17687408
cm width 26 28 27
25 1 2 3
F
Height
43 9.025
AY 2455.404
62.75792652
cm width 26 28 27
23.5 1 2
BUNDLE GRADE 47
G
Height
47
NM 1860
89.11888375
cm width 43 43
21.5 1 2
BUNDLE GRADE 41
H
Height
41
NM 1467
81.00909613
cm width 43 43
69
RACK 6 Length/ 366cm
30 1 2 3 4 5 6
SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1
A
Height
B
Height
C
Height
11 8.775 11 8.725
AZ 3814.4716 AZ 1519.388457
80.60453401 51.43212951
cm width 25.5 25.5 25.5 25.5 25.5 25.5
30 1 2 3 4 5 6
SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1
D
Height
E
Height
F
Height
G
Height
42 46 61 15.025
NM 1189 NM 587 NM 455
79.46753064 37.73739481 29.87875919
cm width 25.5 25.5 25.5 25.5 25.5 25.5
70
RACK 7 Length/ 366cm
30 1 2 3 4 5 6
SUPPLIER 2 SUPPLIER 2 SUPPLIER 2 SUPPLIER 2 SUPPLIER 2 SUPPLIER 2
A
Height
B
Height
C
Height
D
Height
E
Height
F
Height
G
Height
71
RACK 8 Length/ 366cm
30 1 2 3 4 5 6
SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 2 SUPPLIER 2
A
Height
B
Height
C
Height
D
Height
E
Height
F
Height
G
Height
72
APPENDIX - F
73
RACK1 Length/ 366cm
28 1 2 3 4 5 6
A
Height
B
Height
C
Height
D
Height
E
Height
F
Height
G
Height
74
RACK 2 Length/ 366cm
18 1 2 3 4 5 6
A
Height
46 8.725 46 7.725
CZ 960 CZ 960
93.19470699 52.15588723
cm width 25 25 27 28 25.5 24.5
27 1 2 3 4 5 6
B
Height
C
Height
D
Height
E
Height
46 16.275
AX 5995.90544
70.07125891
cm width 52 56 53
26 1 2 3
F
Height
05 53
AX 6928.4824
87.82608696
cm width 52 56 53
54 1 2 3
BUNDLE GRADE 19 BUNDLE GRADE 42
G
Height
41 15.45 19 42
NM 1467 NM 2564.479 NM 1189
26.67126402 44.68711674 19.77640239
cm width 52 55 53
75
RACK 3 Length/ 359cm
20 1 2 3 4 5 6
A
Height
B
Height
C
Height
D
Height
E
Height
44 20.1 19 18.6
AX 1286.4 AX 2520.492
47.27272727 46.60493827
cm width 53.5 55 53
26.5 1 2 3 4
F
Height
44 8.4 44 13.4
AZ/3685.6 3685.6 AY 842.2656
53.16708229 65.08474576
width 53.5 55 25 25
58 1 28 HEIGHT 2 3 4 5
BUNDLE GRADE 46
BUNDLE GRADE 11
Height
46 44 16.5
NM 587 BX 600
11
G NM 4429.065
38.18664951
26 HEIGHT 6 7 8
43.90243902
9
Height
61 15.025
74.66726578
NM 455
cm 32.01295628
width 53 26.5 25.5 24 25
76
RACK 4 Length/ 359cm
23.5 1 2 3
A
Height
B
Height
C
Height
43 9.425
AY 10214.0632
76.71453929
cm width 54 53 54
26.5 1 2 3
D
Height
43 9.425 43 10.625
AY 10214.0632 AY 877.8254
76.71453929 31.75542406
cm width 54 53 54
25.5 1 2 3
E
Height
43 10.3 43 18
AY 1526.479 AX 3319.2
57.32177264 63.00148588
cm width 54 53 54
25 1 2 3
F
Height
G
Height
cm width 54 50 26 24
77
RACK 5 Length/ 359cm
25 1 2 3
A
Height
B
Height
C
Height
D
Height
43 9.725
AY 3079.3712
75.66048342
cm width 26 28 27
24 1 2 3
E
Height
43 8.725
AZ 2974.4392
79.17687408
cm width 26 28 27
25 1 2 3
F
Height
43 9.025
AY 2455.404
62.75792652
cm width 26 28 27
23.5 1 2
G
Height
43 11.45 43 11.1
BY 613.6 BY 600
31.49350649 30.79268293
cm width 43 43
21.5 1 2
H
Height
43 10.7 43 10.5
BY 600 BY 600
33.64341085 33.58208955
cm width 43 43
78
RACK 6 Length/ 366cm
30 1 2 3 4 5 6
SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1
A
Height
B
Height
C
Height
11 8.775 11 8.725
AZ 3814.4716 AZ 1519.388457
80.60453401 51.43212951
cm width 25.5 25.5 25.5 25.5 25.5 25.5
30 1 2 3 4 5 6
SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1
D
Height
E
Height
F
Height
G
Height
79
RACK 7 Length/ 366cm
30 1 2 3 4 5 6
SUPPLIER 3 SUPPLIER 3 SUPPLIER 3 SUPPLIER 3 SUPPLIER 3 SUPPLIER 3
A
Height
B
Height
C
Height
D
Height
E
Height
F
Height
G
Height
80
RACK 8 Length/ 366cm
30 1 2 3 4 5 6
A
Height
B
Height
11 10.975
CY 600
40.5511811
cm width 25.5 25.5 25.5 25.5 25.5 25.5
30 1 2 3 4 5 6
SUPPLIER 1 SUPPLIER 1 SUPPLIER 1 SUPPLIER 1
C
Height
D
Height
11 9.575
AY 4477.7474
75.71214393
cm width 25.5 25.5 25.5 25.5 25.5 25.5
30 1 2 3 4 5 6
SUPPLIER 3 SUPPLIER 3 SUPPLIER 3 SUPPLIER 3 SUPPLIER 3 SUPPLIER 3
E
Height
F
Height
G
Height
11 21.1 11 11.625
BX 600 BY 600
40.87591241 40.7079646
cm width 25.5 25.5 25.5 25.5 25.5 25.5
81
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84