IIMM, Bangalore Branch1

 They are ;  1)PRODUCTION  a)Production of H.D.P.E Pipes  b)Production of Tanks  2)STORE  3)MAINTAINANCE  4)DAISPATCHING OF TANKS AND PIPES

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 1. Objectives  2. Importance  3. Responsibilities  4. Functions  5. Inter Relationships 5

6 INTRODUCTION  STRATEGIC ROLE  VALUE-ADDING ROLES TRANSPORTATION CONSOLIDATION PRODUCT MIXING SERVICE, CONTINGENCY PROTECTION SMOOTHING.

7 DEFINITION STORAGE IS “THAT ASPECT OF MATERIAL CONTROL CONCERNED WITH THE PHYSICAL STORAGE OF GOODS”.

8 OBJECTIVES  PROVIDING EFFICIENT SERVICE TO PRODUCTION AND OTHER DEPARTMENTS  REDUCING THE COST OF CARRYING THE GOODS  MINIMIZING THE COSTS OF OPERATION  PROVIDING ACCURATE, UP-TO DATE STOCK, DULY SUPPORTED BY ALL DOCUMENTATION

9  TRIGGERING OFF MATERIALS PLANNING ABOUT MOVEMENT OF MATERIALS, SLOW NON MOVING ASPECTS, AND EXCESS TO SCHEDULE OF MATERIALS.  CONTROLLING THE INVENTORY.  PREVENTING THE OCCURRENCE OF OBSOLESCENCE.  GOOD HOUSE KEEPING OBJECTIVES

10 LAYOUT AISLE SPACE MATERIAL HANDLING EQUIPMENT SPACE PLANNING FREQUENCY OF USAGE METHOD OF ISSUE PROBABLE MATERIAL FLOW INTO AND OUTSIDE STORES MATERIAL HANDLING FACILITY AVAILABLE LAYOUT OF PLANT AND LOCATION OF STORES

11 LAYOUT

12 LAYOUT AND DESIGN STEPS IN DETERMINING SPACE REQUIREMENTS DESIGN PRINCIPLES FACTORS TO BE CONSIDERED DESIGN OBJECTIVES HOUSE KEEPING -5S

13 SIZE & LOCATION DECISION LESS IMPORTANT FOR PUBLIC WAREHOUSING FACTORS TO BE TAKEN CARE BEFORE LOCATING PRIVATE WAREHOUSE ARE MATERIAL CLASSIFICATION SIMILARITY OF MATERIALS POINTS OF USE MATERIALS HANDLING CONSIDERATIONS PHYSICAL HAZARDS (FRAGILE, EXPLOSIVES, FIRE)

14  PRIVATE OR PUBLIC  CENTRALIZED OR DECENTRALIZED  NUMBER  SIZE  LOCATION  INTERIOR LAYOUT BASIC DECISIONS ON STORES

15 OWNERSHIP DECENTRALIZEDCENTRALIZED PUBLICPRIVATE HOW MANY WHAT SIZE WHERE (LOCATION) INTERIOR LAYOUT WHAT PRODUCTS, WHERE BASIC DECISIONS

16 NATURE AND IMPORTANCE EVERY PRODUCT MANUFACTURED, GROWN IS STORED AT LEAST ONCE DURING ITS LIFE CYCLE (FROM CREATION TO FINAL CONSUMPTION)

17  THE STORE IS A POINT IN THE LOGISTICS SYSTEM WHERE A FIRM STORES OR HOLDS RAW MATERIALS; SEMI FINISHED GOODS, OR FINISHED GOODS FOR VARYING PERIODS OF TIME. HOLDING GOODS IN A STORE STOPS OR INTERRUPTS THE FLOW OF GOODS, ADDING COST TO THE PRODUCT OR PRODUCTS. ROLE OF STORES IN THE LOGISTICS SYSTEM

18 INBOUND LOGISTICS SYSTEM SUPPLIER STOREPLANT

19 OUTBOUND LOGISTICS SYSTEM STORE PLANT STORE MARKET/ CUSTOMER MARKET / CUSTOMER

20 STORE:VALUE ADDING ROLES  TRANSPORT CONSOLDATION  PRODUCT MIXING  CROSS DOCKING  SERVICE  CONTINGENCIES  SMOOTHING

21 BASIC SOTRE OPERATIONS ReceivingMove product Storage Packaging / Shipping preparation Order picking Shipping Input

22 Plant 1 Plant 2 Plant 3 Plant 4 STORE Customer 1 Customer 2 Customer 3 Customer 4 PRODUCT MIXING

23 Raw material Vendor source STORE Plant SUPPLY MIXING

24 ADVANTAGES OF CENTRALISED STORE  FEWER PERSONS ARE REQUIRED  BETTER CONTROL OVER INVENTORY IS POSSIBLE  ALL RECORDS ARE KEPT AT ONE PLACE  MORE LEVELING OF LOAD ON STORES PERSONNEL  SPACE OCCUPIED IS LESS  PERIODIC CHECKS ON INVENTORY IS EASY

25 DIS-ADVANTAGES FAR AWAY FROM POINT OF PRODUCTION GREATER TRANSPORT TIME REQUIRED MOVING THE MATERIALS MORE MATERIALS HANDLING EQUIPMENTS IS REQUIRED STORES PERSONNEL BECOME SPECIALISTS ONLY IN STORES SERVICE SUFFERS COST OF COMPONENTS AND SERVICE IS MORE

26 WAREHOUSING COSTS TRANSPORTATION COSTS INVENTORY COSTS COST OF LOST SALES MAINTENANCE OF CUSTOMER SERVICE LEVELS SERVICE SMALL QUANTITY BUYERS FACTORS AFFECTING NO. OF STORES

27 DECREASING NUMBER OF STORES REDUCES UNPRODUCTIVE FACILITIES THAT INCUR WASTEFUL COSTS. COMBINING WITH A RELIABLE TRANSPORTATION SERVICES IMPROVES CUSTOMER SERVICE AND LOWER COST DUE TO CONSOLIDATION

28 FACTORS Involved Factor Centralized Decentralized Substitutability Low High Product value High Low Purchase sizeLargeSmall Special Stores YesNo Product lineDiverseLimited Customer servicelowhigh

29 DETERMINING SPACE REQUIREMENTS STEPS : 4 DEVELOP A DEMAND FORECAST. 4 DETERMINE EACH ITEM’S ORDER QUANTITY. 4 CONVERT UNITS INTO CUBIC FOOTAGE REQUIREMENTS. 4 ALLOW FOR GROWTH 4 ALLOW FOR ADEQUATE AISLE SPACE 4 PROVIDE FOR THE TRANSPORTATION INTERFACE. 4 PROVIDE FOR ORDER-PICKING SPACE. 4 PROVIDE STORAGE SPACE. 4 PROVIDE RECOUPING, OFFICE, AND MISCELLANEOUS SPACES.

30 FACTORS TO BE CONSIDERED  CENTRALIZED OR DECENTRALIZED LAYOUT  EQUIPMENT AVAILABLE:  SHELF’S  BINS & RACKS  SCALES  RECORD KEEPING FACILITIES.  METHOD OF STACKING.  LIFE OF COMMODITIES TO BE STORED.

IIMM, Bangalore Branch31