1. (05-Jun, 2013 to 05-Jul, 2013)
Undertaken by
Varun Verma
IV Year Mechanical Engineering
SKN College of Engineering,
Sinhgad Institutes,
Vadgaon,Budruk, Pune

2. Company overview
Department overview
PDC operation
Work summary
Project description
Learning
Suggestions
Acknowledgements
Contents

3. About the company
 John Deere is a world leader in providing advanced products
and services for agriculture, forestry, construction, lawn and
turf care, landscaping and irrigation.
 John Deere India Private Limited is a subsidiary of Deere &
Company, USA in India. Its factory, located near Pune,
manufactures 5000 Series agricultural tractors.
 Spread across 112 acres, the factory has a total built up area of
around 50,000 sq. meters. Manufacturing is carried out at three
inter-linked factories - Transmission, Engine and Vehicle
Assembly.
 The company has implemented SAP system for sales and
distribution as well as integration of manufacturing processes.
Area offices, dealers, depots and C & F agents are networked to
enhance efficiency and customer service.
JDPW
Company Overview

4. Department Overview
Operations
Project
Planning

5. Operation – 7 JD staff supported by TTs and 3PL
• Plan, develop, organize, direct, manage and evaluate the operations and budget of
warehousing facilities.
• Review contracts, invoices, work orders, consumption reports, and demand
forecasts to estimate peak delivery periods and to issue work assignments.
• Develop performance indicators to measure effectiveness of warehouse operation.
• Prepare or direct preparation of correspondence, reports, statistics related to the
warehouse operations.
• Implement warehouse health and safety.
Planning – 7 JD staff supported by TTs
 Planning department will set standards and targets for each commodity procured.
 The quantity of products coming suppliers will be closely monitored
 Forecasting orders on the basis of previous sales, the general state of the economy
and consumer preferences.
Department Overview

6. Department Overview
Project Team – 3 JD employees
• NGP relocation
• Site procurement
• Selection, Ordering, installation & Commissioning of Racks, MHE’s and other assets
• IT systems installation before go live date
• Material transfer from Pune to Nagpur warehouse
• Inbound and outbound logistic strategy Ex Nagpur
• System up gradation
 Extended warehouse management-Next generation warehouse operations ERP
 Service parts planning-Next generation planning ERP
 JD point-Next generation CRM ERP
• Regular process improvement projects

7. MDR – Green
Bins
MDR – Green
Bins
LDR– Small Bins
HDR – Pallets/
Cages
MDR – Blue
Bins
974 – Pre-
Pack
973– Receipt &
Quality
Outbound -
Packing
Staging and
Dispatch
Receipt Racks
Outbound Picking & Packing: Eight Tables
with 8 Pickers + 8 Packers + 1 Order picker.
KEY DECIDER FOR HOW MANY LINES ARE
SHIPPED ON A DAY
Part Distribution Centre (Pune)
Department Overview

8. PDC Operation

9. PDC Operation

10. Sales and SKUs handled
100%
139%
175%
250%
0%
50%
100%
150%
200%
250%
300%
0
50
100
150
200
250
2010 2011 2012 2013
Sale (INR Crores) YoY Increase
6736
8577
11150
12736
15062
100%
127%
166%
189%
224%
0%
50%
100%
150%
200%
250%
0
2000
4000
6000
8000
10000
12000
14000
16000
2009 2010 2011 2012 2013
SKUs at PDC YoY Increase
India PDC has handled this increase
in business as well as the number of
SKUs stocked with the same area.
There has been no space
augmentations since 2009.
Year
Sale (INR
Crores)
YoY
Increase
SKUs at
PDC
YoY
Increase
2009 - - 6736 100%
2010 88 100% 8577 127%
2011 122 139% 11150 166%
2012 154 175% 12736 189%
2013 220 250% 15062 224%
Department overview

11. Week1:
 Introduction to organization work environment by Mr. Bhavan Saravana.
 Meeting people in
 Receipt
 Quality
 Prepacking
 Binning
 Picking and Packing
 Dispatch
 Understanding every operation performed on the material from inbound to outbound.
 Mapped southern states of India from JD PDC Ex Nagpur
Week2:
 Understanding the Project requirements
 Mapped northeast and northern states of India.
 Contacting Mr. Anil and acquire docket charges for certain invoices
 Meeting with Mr. Vaibhav Ramdasi in John Deere sales office in Onyx
 He shared his knowledge and experience in logistics and all the projects done so far .
 Logistics presentation for complete goods. Yard Management details from beginning till the currently deployed
ATIC tool
 Logistics strategies planned other product lines like Harvester/ ALJD/ Water
 Dewas Logistics strategy and how is it coming up
 Progress on Inbound and outbound mapping for Parts Ex Nagpur
 Separate meetings set up for understanding the progress for Inbound logistics
Work Summary

12. Week3:
 Preparing optimized routes for the outbound i.e. John Deere PDC (Nagpur) to Western stated of India.
 Normalizing the maximum lines per day and observing weight for routes and determining if they qualify for
the full truck load or to be dispatched as part load.
 Meeting with Mr. Sunny Rana over WebEx
 I shared the outbound strategy of the states covered so far .
 Mr. Sunny informed that he has already requested quotations from VRL and has started working on
inbound.
 Attend daily meetings between John Deere and spear employees and learn about the common problems
which hampers the performance of PDC.
Week4:
 Plant tour with Mr. Bhavan and Mr. Shambhuraj.
 Preparing report of work done and review with project supervisor before submission.
Work Summary

13. Project Appointed:
Study on Parts outbound transportation
Strategy Ex-Nagpur : For JD PDC
Challenge:
 Define routes for out-bound transportation
strategy ex Nagpur
 Work with transport service providers and JD
Parts and Logistics to establish parts delivery
routes with milk runs, FTLs, Part Loads, ex.
Nagpur
Result expected:
 Complete mapping of outbound from Nagpur
to countrywide customers .
 Determination of full truck load and part
truck load routes
PDC at John Deere Plant (Pune)
Project Description

14. Project Description
Results
1. Completed mapping of 341 cities
with specific day of dispatch for
different routes.
2. Considerable reduction in
carbon footprint.
3. This system will also help in
regulating the orders placed by
the dealers.

15. Project Description
Example
If the shipment to the dealers above are sent using part truck loads then
taking interest for part load @ 6.43 Rs/kg
The total cost comes out to be 159013 Rs (Total Weight=24.73 T)
Now let us calculate the cost by sending the same shipment via combination of full
truck and part truck loads
Use 16T FTL for Karimnagar, cost =30800 Rs
Use 9T FTL for Nirmal,Khammam,Vijaywada, cost=19800+17160+18000=54960 Rs
Use part load for Gudivada, Vishakapatnam, cost=(840+426)*6.43=8140 Rs
Net cost= 93900 Rs
Saving= 65113 Rs

16. Part Distribution Centre
 Involves the planning, implementing and controlling the physical flows of materials
and final goods from point of origin to points of use to meet customer requirements
at a profit
 It involves materials management, distribution systems and IT systems interlinked
with one another
 Getting the right goods at the right place at the right time for the least cost
 Optimize space needed for growth
 Improved inventory turnover
 Inventory reductions
 Optimize Staffing
Learning

17. Suggestions
Cost
 Minimal use of paper
 Recycling packing material
 Portable cranes to improve material handling and ease workload.
Quality
 The 3PL needs to be more disciplined and committed in maintaining proper 5s.
 The part distribution center needs increased number of automated facilities such as bar
code scanners, sweeping machines etc.
 Suggestion boards with color coding for each department.
 The plastic pallets have short life and need maintenance due to lower load bearing
capacity, Toyo Fiber Pallets can prove to be a better alternative.
Safety
 The dividing lines need to be repainted and made strongly visible.
 Use of warning signs and signals.
 Workers should be provided hand gloves and helmets
Delivery
 The working conditions could be made more comfortable by providing proper ventilation
and inducing air ducts at appropriate locations.
 Digital display boards indicating live performance of each department

18.  My project guide:
Mr. Nitin Rahangdale
 Special thanks to:
Mr. Bhavan Saravana
Mr. B.N Sampath
Acknowledgement