Redesign of Replenishment Model of RM and PM for Optimization of Warehouse Space in Mulund Plant

Team- Future Masters Ashish Vilas Pingulkar Dnyanada Prasad Kalaskar Niket Kishor Kawale NITIE,Mumbai.

Team Future Masters, NITIE.

Project Objectives
Inventory Control-System Design matrix: Inventory Control Logic

Optimization of Warehouse Space

o Redesigning of Replenishment System Independent

o Reduction of Manual the Cycle Inventory

o Optimization of Inventory Cost
Reorder Point/Equal o Effective Procurement and Sourcing
two-bin

Inventory Management and Planning

High

o Effective Warehousing Operations

Demand

Order Period

Primary Objective

Obsolete Redesigning Functions Affected Inventory MRP Replenishment Risk

Rate Based Planning and Inventory Synchronous management
System

Dependent

Redesign the Replenishment Warehousing System to Optimise the Warehouse Space

Planning

Warehousing Purchase

Procurement & Sourcing

Low

High

Transaction Cost

Low
3 3

Team Future Masters, NITIE. Function

Planning and Inventory management

o Process and Process Analysis, Issue Tree o Cost Impact Mapping and ROI from New/Improved Systems Procurement 1) Supply management in 1) o Final Suggestions/Recommendations o As-is Analysis Purchasing 2)
Material Classification Background Research2) will be focused on o Methods Improvement

1) Forecast of FG of RM and PM 2) Aggregate Production plan The Given Project is about redesigning the current System for Background Research will include 2) Replenishment Models and 3) MPS and Short term production Inventory Classification System plan Optimized available resources o Collectingutilization informationof about the current system and its functionality 3) Working of MRP and ERP 4) BOM and MRP Files The whole project canabout be broadly into 5) Inventory Status File System o Collecting Information Best in divided Class practices o Process Improvement 4) Data Visibility and 6) Production Orders-Open ,Closed Tools for Data and Information Collection in Background Research Communication Between and Planned o Process Standardisation Manufacturer and Supplier 7) Inventory Velocity and Quality of o Literatureof review o Identification Best in Class Processes 5) Supply lead time and Lead time Inventory o Gap Analysis Variability 8) Inventory Deployment o Field Work- Plant Visit and Interactions with Employees 6) Expected Service level and 9) Production Coverage o Modification and Redesigning of Current Systems/Processes Tools for Data and Information Analysis demand of Feasibility FG o Pilot Study/ Simulation Modelling for Analysis of New/Proposed Systems 7) Safety Stock and Reorder Point
Purchase Orders Purchase Schedule 3) Purchase Contract/Policy Process/System Improvement 4) No. of Suppliers

Background Research 1) Inventory Profile of each of SKU

Information Needed from Current System

Source of Information

o Benchmarking and Gap Analysis in Supply 4) Commonality 5) Purchasing Schedule o PACE Framework

3) Location of Suppliers

Parameters Warehousing

6) Standardization of Components 2) As-is Analysis 3) Warehouse Audit Reports

of current to SKUs be considered 1) System No. of unique 1) WMS Report

No. of Locations(Pallet) o Operational Efficiency 2) and Productivity 3) Dock-to-Stock Cycle Time Cube Utilisation/ Capacity o Facility Utilization and 4) Throughput Utilisation o Use of Technology and IT systems 5) SKU wise Inventory Turnover 6) Accessibility and Layout

Team Future Masters, NITIE.

Course of Action
Defining Project Objective Issue Tree/Scope of Project Broadly the General Course of Action Background Research Data Information Collection The Time Frame for and the Various Steps
Plant Visit Flowcharts As-Is Analysis

Data and Information Analysis and Solution Development

Problem Analysis Bottleneck Analysis

Feasibility Testing - Cost Impact - Payoff Analysis

Decision Tree Balanced Scorecard Pilot Study

Final Solution
5

Objective

Deliverable
Understanding of Current Inventory System Design of Replenishment Model

Probable Solutions/Course of Action 1) Quadrant Model for Classification of RM and PM 2) Collaborative Planning Forecasting and Replenishment(CPFR) 1) Rate Based Synchronous Planning 2) Dynamic Lot Sizing In MRP 3) SKU Level Forecast 4) E-Kanban System and Just in Time System 5) JIT Embedded in MRP and Closed Loop MRP 1) As-is Analysis of Current Set Up 2) Method Study and Work Sampling of Current operations 3) Mapping of information flow and Process flow in Warehouse Management System(WMS) 1) Cross Docking for Temporary Storage and Palletisation 2) Vendor managed inventory(VMI) and 3PL 1) Classification of Material based on Supply risk and Value 2) Commonality of Supply and Standardization 3) Consolidation of Orders 6 4) Development of Effective and Efficient Suppliers

Optimization of Warehouse Space

Redesigning of Replenishment System Reduction of the Cycle Inventory Optimization of Inventory Cost Effective Procurement and Sourcing Effective Warehousing Operations

Benchmarking of Warehousing operations Understanding of Current Warehouse Set-up and its Operating Expansion of Warehouse

Effective Procurement and Sourcing

Team Future Masters, NITIE.

Team Profile
Ashish Pingulkar Dnyanada Kalaskar Niket Kawale
1st Year PGDIE B.Tech (Mech) Work Ex. 11 months in Loreal India Pvt. Ltd. In-charge of Excise Bonded Warehouse(EBW) and Value Added Services(VAS) Achievements - Selected as Best Operation Team By Marico India - Industrial Project in Forbes Marshall Pune - Consistent Academic Performance 1st Year PGDIE B.E. (Mech) Fresher -Industrial Project in Thermax India Ltd -Internship in Whirlpool India Achievements-Selected as Best Operation Team By Marico India -Consistent Academic Performance 1st Year PGDIE B.Tech (P & IE) Fresher Industrial Training in SAIL Bhilai Steel Plant and GEI Industries Ltd. Bhopal AchievementsAmong top 5 academic performers of NIT Bhopal District Topper in SSC Exam -Consistent Academic Performance

Team Future Masters, NITIE.

Thank You