1. CABLE PACKAGING OPTIMIZER
Power Conductors & Telecom Industry

2. Table of Contents
• PACKAGING IN CABLE INDUSTRY
• PACKAGING COST STRUCTURE & PAIN AREA
• OPTIMIZATION APPROACH
• SOLUTION – CABLE PACKAGING OPTIMIZER

3. Packaging in Cable Industry
 Cable Industry uses drum (as shown in fig.) for packaging the cable inside and
dispatch it to the customer
 Due to large variation in product SKUs, there are indefinite variations in drum
dimensions
 Cable drum which contains expensive cable material inside, has to follow certain
design standards in order to meet qualitative parameters
 Qualitative parameters which determine the drum dimension are
 Customer specification
 Drum design standards (IS 1778; ASNZ 2857)
• Barrel/Flange diameter ratio
• Gap from the flange circumference
• Thickness of the flange
 Production assembly line take-up
 Container load capacity
 Container size
Figure: Wooden Cable Drum

4. Packaging Cost Structure & Pain Area
2% Pain Area
18% Wood Whether it is a wooden or steel drum, too
Steel many size variation results in lack of
Freight standardization and sub-optimal
9%
51% Assembly, Consumables
packaging. This induces
Outer lagging • Higher purchase cost of drum
4% CST : 2% • In-efficient procurement and dispatch
planning
16%
• Lower drum utilization
Figure: Sample Cost breakup for a Cable Wooden Drum(2010 Rates) • Higher logistics cost
Cost Variants Constraints Opportunity
Wooden Part •Cartelization Among Drum Manufacturers •Alternate Suppliers
•Design Standards •Setting-up a saw mill
•Scrap selling •Alternate material
•Seasonal damage (poor recyclability) •Design optimization
Components
•Inferior quality of wood, already priced at lower rate •Standardization
Outer Lagging •Scrap selling •Nalcoflex or mixed combination
•Inadequate handling •Handling training
•No other alternative •Steel component price negotiation
Steel Component
•Assembling constraint
•Logistics constraint •Standard length optimization
operational
Too many SKUS
•Standard length variations •Drum SKUs standardization
Zero Recyclability •High steel drum prices •Steel drums on rental basis
•No infrastructure for reverse logistics •Outsourcing maintenance & reverse logistics

5. Optimization Approach
Select a product, allocate the production
machine based on stranding
While standardizing the
Calculate the standard length of wire a bobbin SKUs, its equally important
(both small and large) can take; determine the to analyze the impact on
standard length for this product Total Logistics Cost involved.
A detailed comparative
logistics analysis was
done, and it was found that
Determine the volume and weight of the
conductor for the selected standard length with reduced SKUs, and
better dispatch forecast
, we can minimize the
under-utilization in logistics.
Plot the volume required by the conductor on a
Scatter Plot along with the other existing
conductors
Choose the Drum-Cluster where this new
product belongs to and allocate the drum from
the existing standardized set; In case of specific
requirement it could use a new drum design

6. Solution – Cable Packaging Optimizer
A web-Based Application
Select optimal packaging drum as per desired design, cost, service levels and
logistics objectiveOUT PRODUCT
Using cable drums to package different products and dispatch it to the customer, faces following
challenges
•Determining optimal drum dimensions (FxBxT) to match every customer demand as per requirement
like conductor type & dimensions
•Reducing logistic cost by increasing the number of packaged drums in a truck
Benefits
•Packaging cost reduction up to 15%
•Increased accuracy of Drum Forecasting
•Huge Time Reduction in Drum Planning
•Possible drum purchase price negotiation due to increased order size
•Logistics savings generated up to 10%

7. Cable Packaging Optimizer
Input Parameters Metrics Area Key Metrics
• Standard Length & Weight
Product Specification • Bobbin Length • Optimized Production
•Stranding
•Wire Diameter • Maximum Drum Space
•Conductor Diameter • Volume Requirements Utilization
•Weight of the Conductor
(Kg per Km) • Optimized COST/MT
•Packing Factor • Drum Allocation • Drum SKUs recommendation
Figure: Cable Packaging Optimizer screenshots (drum dimensions reference from IS-1778)

8. Cable Packaging Optimizer (Illustrations)
Distribution Map
with Visual
Analytics of sample
quarterly order
Export Domestic Total SKUs
 Estimated Cost/MT  Estimated Cost/MT  Estimated Cost/MT  No of SKUs
reduction reduction reduction reduced

9. THANK YOU
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