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Warehouse Manual

Warehouse Manual

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Warehouse Manual

  1. 1. BALAJU AUTO WORKS Warehouse Operations Manual for Dealerships
  2. 2. PREFACE This manual is designed to serve as a guide on detailing of various elements that constitute the Spare Parts infrastructure at dealerships. These elements are in accordance to the requirements posed by the Service demand and takes care the load requirements. As the contents and subjects presented in this manual may undergo intermittent changes, BAW will inform the dealerships of all changes, additions, and/or deletions byletterorthroughe-mail. Cumulative changes and updates of this manual will be undertaken periodically. This manual is the property of the Spare Parts Department, BAW and may not be copied in parts or as whole without permission.
  3. 3. CONTENTS 1.0 INTRODUCTION 1.0 1.1 DEFINITIONS 1.1 2.0 DESIGN CRITERIA 2.0 2.1 TOTAL AREA 2.1 2.2 RECEIPT AREA 2.2 2.3 STORAGE AREA 2.3 2.4 PRE PULLED PARTS AREA 2.4 2.5 GANG WAY 2.5 2.6 ISSUE COUNTER 2.6 2.7 OFFICE AREA 2.7 2.8 FLEXIBLE PARTITION & CARTON STORAGE AREA 2.8 2.9 SHAPE & ORIENTATION 2.9 2.10 TYPES OF LAYOUT 2.10 2.11 WAREHOUSE LAYOUT 2.11 2.12 LAYOUT GUIDELINES 2.12 3.0 SPARE PARTS INFRASTRUCTURE 3.0 3.1 RACKS & BINS 3.1 3.2 MATERIAL HANDLING EQUIPMENTS 3.2 3.3 LOGISTICS (FOR MULTIPLE WORKSHOP DEALER) 3.3 3.4 WAREHOUSE LIGHTING 3.4 3.5 COLOUR CODING 3.5 3.6 LOCATION LOGIC 3.7 MANPOWER DEVELOPMENT & REQUIREMENTMENT 4.0 WAREHOUSE PROCESS 4.0 4.1 ORDERING 4.1 4.2 RECEIVING 4.2 4.3 BINNING 4.3 4.4 ORDER PICKING & ISSUE / DISPATCH 4.4 4.5 LOGISTICS 4.5 5.0 PARTS STORAGE METHOD 5.0 5.1 STORAGE PHILOSOPHY 5.1 5.2 STRONG ROOM 5.2 5.3 FIFO 5.3 5.5 PERPETUAL INVENTORY 5.5 5.5 PHYSICAL INVENTORY 5.5 6.0 WAREHOUSE CONTROL 6.0 6.1 WAREHOUSE IMPROVEMENTS & MAINTENANCE 6.1 6.2 QUALITY ASSURANCE 6.2 6.3 ESI 6.3 6.4 SAFETY & HEALTH IN OPERATIONS 6.4
  4. 4. A streamlined and seamless Spare Parts operation is critical to the success of a vibrant vehicle service workshop. Whether or not the parts activities are properly controlled can greatly influence the company's success. The parts warehouse control is among other things vitally important to the parts control, requiring efficient use of available space and effective operation of actual parts distribution within the warehouse. Taking these things into consideration and on the basis of BAW long practical experiences, we have prepared here a manual titled 'Warehouse Operations Manual for Dealerships' for the benefit of those who are starting in the spare parts business, or plan to modify or expand an existing spare parts warehouse. Mother Warehouse - Location where material from BAW is received. - Material is stored at Mother location for own consumption and for Stock Transfer to other location workshops (Child Warehouses) - Sale value for mother include own consumption & stock transfertochild. - For Single workshop dealership sale value is own workshop consumption. Child Warehouse - Location where material is received from Mother Warehouse. - Only Fast Moving items are kept at this location - Any part which has not been sold in the past 6 months need to be shifted to Mother location - Minimum frequency of receipt of material from Mother Warehouse  Once in a day for Child Warehouse in same city  Days in a week for outstation Child Warehouse E-outlet - Extension outlet - Maximum Number of Bays, 3 - Above 3 bays the same is considered as Child Warehouse for spare parts operations purpose 1.0 INTRODUCTION 1.1 DEFINITIONS
  5. 5. Before going into the building blocks of a spare parts warehouse, let us understand what a warehouse is. “A warehouse is a temporary storage location for an item from receipt to issue” The objective of a proper warehouse design is to ensure the following > Maintain parts quality by ensuring proper storage > EfficientOperations > Fastresponse to Workshop > Safe handling procedure > Increaseprofitability The elements of a warehouse design are, a) ReceiptArea b) StorageArea c) Pre-pulled Area d) Gang Way e) Issue Counter f) Office Area g) Flexible / Semi Flexible Partition Storage Area (Fig. 1) 2.0 DESIGN CRITERIA OFFICE FLEXIBLE PARTITION A I G Y RECEIPT K E K E K ENTRY E A PULLED
  6. 6. Total area required for a Dealer Warehouse operation is sum of  Receipt Area  Storage Area  Pre-pulled parts Area  Aisle Area  Issue Counter  Office Area  Flexible / Semi Flexible Partition & Carton Storage Area Mother Warehouse Space Required, Total Sales Value (Rs Lacs) Within 5 days from BAW Warehouse Above 5 days from BAW Warehouse Monthly Only Mechanical Only Accident Combined Only Mechanical Only Accident Combined 0-10 1900 2500 2200 1900 2600 2300 10-15 2100 2900 2500 2300 3200 2800 15-20 2300 3200 2800 2500 3500 3100 20-25 2600 3700 3300 2900 4100 3600 25-30 3500 4900 4300 3800 5300 4600 30-40 4000 5600 4900 4100 5900 5100 40-50 4400 6300 5400 4600 6500 5700 50-60 4700 6700 5800 5000 7200 6300 Child Warehouse Sale Value (Rs Lacs) Space Required, Total Same City Outside CityOnly Mechanica l Only Accident Combined Only Mechanical Only Accident Combined 0-10 800 1000 900 900 1100 1000 10-15 1000 1400 1300 1100 1500 1400 15-20 1300 1700 1600 1600 2100 1900 20-25 1900 2600 2300 2200 3100 2700 25-30 2200 3100 2700 2300 3200 2800 30-40 2300 3200 2800 2400 3400 3000 E-outlet No of Bays Only Mechanical 0 - 3 300 2.1 TOTAL AREA
  7. 7.  This is the area where Parts are received, checked & segregated for binning at respective location. This area is critical in the smooth functioning of the warehouse.  The space required for this area is 150 sq. ft. (Refer fig .1)  Pre binning rack is kept at this location for temporary storage of inward material before inspection and binning (sketch of the rack is given in Annexure A)  This is the area where the items after receipt and inspection is stored awaiting requisition from Workshop.  This area include the Rack area and Aisle area( Refer fig.1)  In this area parts are stored based on their movement, size and type.  The space required for this area is based on the number of SKUs to be stored and in what quantity.  The storage space required is of two types. • -Floor space • -Vertical Height 2.3 STORAGEAREA 2.2 RECEIPT AREA
  8. 8. Floor Space Mother Warehouse Sale Value (Rs Lacs) Space Required, Stocking Within 5 days from BAW Warehouse Above 5 days from BAW Warehouse Only Mechanical Only Accident Combined Only Mechanical Only Accident Combined 0-10 1400 2000 1700 1400 2100 1800 10-15 1600 2400 2000 1800 2600 2300 15-20 1800 2600 2300 2000 2900 2500 20-25 2100 3100 2700 2400 3500 3000 25-30 2900 4300 3700 3200 4700 4000 30-40 3400 4900 4300 3500 5200 4500 40-50 3800 5600 4800 4000 5800 5000 50-60 4100 6000 5100 4400 6500 5600 Child Warehouse Sale Value (Rs Lacs) Space Required, Stocking Same City Outside CityOnly Mechanical Only Accident Combined Only Mechanical Only Accident Combined 0-10 500 700 600 600 800 700 10-15 700 1000 900 800 1100 1000 15-20 900 1300 1200 1200 1700 1500 20-25 1500 2200 1900 1800 2600 2300 25-30 1800 2600 2300 1900 2700 2400 30-40 1900 2700 2400 2000 2900 2500 E-Outlet No of Bays Only Mechanical 0 - 3 250 Vertical Height ($) Type of Part Below beam height Small & Medium Parts 10.5 ft. Body parts 14 ft. $ In case of vertical height available is less than specified height, then floor area required will increase accordingly.
  9. 9.  There is a transition period between picking and delivery to workshop/ child warehouse.  Pre-pulling parts bin (Job card/Requisition No Bin) helps to supply the parts on time to customers coming to dealer workshop.  When parts staff prepare parts in time for repair, it is better to store these parts temporarily in an exclusive bin for each job card /Requisition No, so that anybody can find the necessary parts for the corresponding repair vehicle.  The location where parts are kept in their transition period is called ‘Pre-Pulled Area’  A Pre-Pulled Rack is kept at this location (Sketch in Annexure A)  The space required for this area is 25 sq. ft. Job Card / Requisition No '0' Job Card / Requisition No '1' Job Card / Requisition No '2' Job Card / Requisition No '3' Job Card / Requisition No '4' Job Card / Requisition No '5' Job Card / Requisition No '6' Job Card / Requisition No '7' Job Card / Requisition No '8' Job Card / Requisition No '9' Pre Pull Bin based on last digit of Job Card / Requisition Number 2.4 PRE-PULLED AREA
  10. 10.  There is an area which is between the storage area, Receipt area and Pre-pulled area.(Refer fig. 1)  There is movement area for all (Painted in brown)  Material Handling equipment are also stored in this area at the close of the work.  The space required for this area is depends on the type of warehouse and sale volume. Mother Warehouse Sale Value (Rs Lacs) Space Required, Gang Way Within 5 days from BAW Warehouse Above 5 days from BAW Warehouse Only Mechanical Only Accident Combined Only Mechanical Only Accident Combined 0-10 200 200 200 200 200 200 10-15 200 200 200 200 300 200 15-20 200 300 200 200 300 300 20-25 200 300 300 200 300 300 25-30 300 300 300 300 300 300 30-40 300 400 300 300 400 300 40-50 300 400 300 300 400 400 50-60 300 400 400 300 400 400 Child Warehouse Sale Value (Rs Lacs) Space Required, Gang Way Same City Outside CityOnly Mechanical Only Accident Combined Only Mechanical Only Accident Combined 0-10 100 100 100 100 100 100 10-15 100 200 200 100 200 200 15-20 200 200 200 200 200 200 20-25 200 200 200 200 300 200 25-30 200 300 200 200 300 200 30-40 200 300 200 200 300 300  This is the area where picked items are physically handed over to the workshop. Criteria:  Open directly to service area of workshop.  Sutter with lock is required to close the counter. Dimensions:  Width 5ft ~ 7ft/ 150 ~ 210 cm  Ground to Counter height 3.5ft / 100 cm  Height of counter 3.5ft / 100 cm  Width of counter slab 1.5 ft / 45 cm Counter slab is of black granite stone 2.5 GANG WAY 2.6 ISSUE COUNTER
  11. 11.  This is the area where the spare parts office is situated.  The inhabitants are  Spare Parts manager  Inventory Control Person  The space required for this is depends on the type of the warehouse. Type of Warehouse Space Required Mother warehouse 100 sq ft Child warehouse 75 sq ft eoutlet 30 sq ft  Sample sketch of a Spare Parts Office in Mother Warehouse is given below. 2.7 OFFICE AREA Operator Table 5 ft 2 ft 10 ft 2 ft 5 ft 4 ft 3 ft 3 ft FilingCabin SparePartManagerTABLE
  12. 12.  Empty carton boxes and flexible Partitions needs to be kept safe for future usage.  There are demarcated for this is called ‘flexible Partition & carton storage area’  Space required for this area is  25 sq.ft for Mother Warehouse  15 sq.ft. for child Warehouse  5 sq. ft. E- outlet The shape and orientation of the warehouse is of equal importance as of space requirement. The shape and orientation of the warehouse plays a pivotal roles in the seamless functioning of the warehouse and hence the productivity. The factors critical in the shape and orientation are as follows;  Profile of the site should be in Rectangular / square with minimal pillars.  Easy entry of Truck till the unloading point.  Warehouse in a single level is desirable as multiple levels will create bottlenecks in the flow.  If workshop is on multiple levels then body parts store should be on body shop level.  At least one floor should have a minimum space of 1000 sq. ft. 2.9 SHAPE & ORIENTATION 2.8 FLEXIBLE / SEMI FLEXIBLE PARTITION & CARTON STORAGEAREA
  13. 13.  Layout is the process of installation of warehouse infrastructure and finalizing the work flow  There are five types of Layout possible .They are  U’ Shape  L’ Shape  Straight – Through flow  Modular Spine Design  Multi Stored Layout Each of the above has their own merits & demerits; the same is detailed below U Layout L Layout 2.10 TYPES OF LAYOUT Storage Area Storage Area
  14. 14. Straight – Through Flow Suitable when there is no physical constraints in Site in terms of Space & Orientation Modular Spine Design Suitable for large scale operation in which individual process are so large that they merit stand-alone & uniquely designed buildings. Example - Production Multi stored Desi  Necessary when land is extremely scarce.  This is the least desirable of all flow alternatives.  In this layout we need to find warehouse in bottlenecks & not the other way round. Storage Storage Order Picking Order Picking Cross Dock Continuous Replenishment Flow Through Regular Turn Product Low Vol. Slow Turn Product
  15. 15. & 4 item Storage Very slow Moving & Dead item packed storage area Receipt Area Counter Office MC 1, 2, 3 & 4 item Storage Very Slow Moving & Dead Item Packed Area Receipt Area Office Bulk Counter  After assessing the merits & demerits of the above layouts we have finalized on two Layouts. 1 st Option L Layout 2 nd Option U Layout Sample Layouts U Layout: Sample U1 Bulk item Storage Bulk item Storage MC 1, 2, 3 Sample U2 MC 1, 2, 3, 4, F & M item Storage Bulk Item Storage 2.11 WAREHOUSE LAYOUT
  16. 16. Very slow Moving & Dead Item Packed area Receipt Area Maximum L Layout: Sample L1 Sample L2 Bulk Storage MC 1, 2, 3, 4, F & M Item Storage Bulk Item Storage Office Counter  Maximum length of one row = 18 ft. – 21ft  Aisle between two Racks /Shelves = 2.5ft- 3ft  Aisle space from the wall = 3 ft.  Racks to be kept back to back with picking from both ends.  Warehouse to follow an ‘L’ layout or the next optimal layout according to the space available. Very slow Moving & Dead Item Packed storage area MC 1, 2, 3, 4, F & M Item Storage Counter Bulk Storage MC 1, 2, 3, 4, F & M Item Storage Office Receipt Area 2.12 LAYOUT GUIDELINES
  17. 17. Having the requisite space in the desired shape and orientation alone will not ensure smooth operation of a warehouse. Suitable infrastructure is also required. The infrastructure include; 3.1 Racks & Bins 3.2 Material Handling Equipment’s 3.3 Logistics (For Multiple Workshop Dealer) 3.4 WarehouseLighting 3.5 Spare Parts Managers cabin 3.6 Colour coding 3.7 LocationLogic We shall see one by one. Racks and Bins are the basic building blocks of a Warehouse to ensure “one part one location”. We have divided the types of Racks into four, the same is detailed below. a) Small and Medium Size parts storage b) Body Parts Storage c) Special Racks d) Specific Usage Racks All dimensions in mm Rack Vendors: Vendor Name Contact Address 3.0 SPARE PARTS INFRASTRUCTURE 3.1 RACKS & BINS
  18. 18. Small & Medium Size Parts Storage RackNo Depth Width Ht Gauge, Rack Plate Gauge, Side Cladding Number of Partition Number ofLoading Level Number ofBins Extra Partition($) Type 1, Small & Medium Parts - Minimum height from Ground = 150mm (6") SM1 225 100 100 FrontportionBendupwards 20 24 9 23 207 SM2 300 150 150 20 24 6 15 90 15 SM3 300 225 225 20 24 4 10 40 20 SM4 450 225 225 20 24 4 10 40 20 SM5 1200 150 150 18 24 6 15 90 SM6 600 300 225 18 24 3 10 30 20 SM7 450 300 375 18 24 3 6 18 12 SM8 450 450 375 18 24 2 6 12 12 SM9 450 900 375 18 24 1 6 6 12 SM10 900 900 375 18 24 1 6 6 6 Holes in rack plate at every 3” from SM2 onwards ($) Number of flexible partition can be increased as per requirement Sketches of the Racks are given in Annexure A Body Parts Storage RackNo Depth Width Height Numberof Partitions Numberof Loadinglevel Numberof Bins Extra Partition($) Remarks B1 1200 300 1200 5 2 10 B2 1200 600 300 2 8 16 16 STEERING RODS B3 600 500 1000 3 2 6 12 B4 1500 300 1500 5 2 10 B5 1200 200 850 6 3 18 Small glass, Door Trims B6 1800 600 1650 1 2 2 4 BUMPER, Slow Moving (Angle structure) B7 1800 1500 1650 1 2 2 4 BUMPER, Fast Moving (Angle Structure) B8 3000 300 1950 5 1 5 SIDE BODY PANEL, Level 1 3000 300 1500 5 1 5 SIDE BODY PANEL, Level 2 Holes at every 3 inches ($) Number of flexible partition can be increased as per requirement Sketches of the Racks are given in Annexure A
  19. 19. Special Racks RackNo Depth Width Ht Remarks Type 3, Special Racks MR 650 1500 2100 Muffler CR2 650 1500 2650 Odd shaped body parts, Fuel pipes, brake pipes etc... CR3 650 900 2650 Odd shaped body parts, Fuel pipes, brake pipes, cables etc... CR4 650 600 2650 Torsion Rod Specific Usage Racks RackNo Depth Width Height Gauge,Rack Plate Number oflevel Remarks Pre-binning Rack, SU1 750 3000 900 18 3 Receipt items to be kept in Carton Box in this rack before binning Pre Pulled Rack, SU2 750 900 600 18 3 PrePulledrack,Pickeditemsto be kept before handing over to workshop VOR Rack, SU3 450 900 375 18 6 Items received against VOR to be kept along with the Vehicle details andRequester The rack should be kept near the counter at a visible location Non Moving Rack, SU4 750 3000 900 18 3 Items to be packed and the list to be kept with SPM Sketches of the Racks are given in Annexure A
  20. 20. Material Specification for the Racks Head Detail s Specification SM Series Upright Shelf panel (SM1 to SM4) Shelf Panel (SM 5 to SM10) Side / Back Cladding Flexible Partition(Chamfered Corners) Holes at every 3 inch on the panel 40x40 14G 20G 18G 24G 18G B Series Upright Shelf / Deck(section) panel (Except B6, B7) B6, B7 Side / Back Cladding (B2 & B3) Holes at every 3 inch 60x40 14G 18G Angle structure 24G MR & CR Series Upright (Rolled) Hooks in MR Rack Cantilever Arms & Upright 80x80 Stainless Steel Male - Female joint SU Series Upright (SU1, SU4), Rolled80x80 Upright (SU2, SU3) Shelf / Deck (Section) Panel18G Cladding 40x40 14G No Cladding Powder Coating Thickness 50 micron Colour code Upright (Except SU3,SU4) Panels (Shelf & deck panel) SU3 SU4 FF Deep Orange 9000928 (Nerocoat)($) Ring Ivory 9001942 (Nerocoat) ($) Red (Yellow 100%, Magenta 100%) Black ($)Brand is for reference purpose only, any brand of same shade may be used
  21. 21. Material handling equipment is the life line / nervous system of a warehouse. We require Picking & binning trolleys. Sample pictures & dimensions are given below, BINNING TROLLEY Dimensions: Length 4ft / 120 cm Width 2ft / 60 cm Height 3.5ft / 105 cm Load Carrying Capacity 100Kg 3.2 MATERIAL HANDLING EXUPMENTS
  22. 22. PICKING TROLLEY Sl No Specification Q t y Remarks 1 MS round pipe, ID=15mm OD=21mm As per dimen sion Mainframe and Ladder legs 2 MS Flat 50x50mm As per dimen sion Cross bars for platforms 3 MS Plate 140x115x6mm 4 For Mounting Wheels 4 MS Sleeve 30x25x60mm (ODxIDxLength) 4 Ladder guides 5 Compression spring, ID = 24mm, OD=28mm, 25Kg,L=100mm 2 Ladder return 6 MS Washer 28x23x3mm(ODxIDxThick) 2 Stopper 7 MS Checker plate, 408x100x6mm (LxWxThick) 3 Ladder Rungs 8 MS Rod 12mm dia, L=300mm 2 Handle 9 Castor wheel, Fixed wheel 150mm dia, Wheel thick = 38mm 2 Light duty sheet metal pressed forks and frame rubber cushioned wheel, 10 Castor wheel, Swivel wheel 150mm dia, Wheel thick = 38mm 2 roller bearing at axle
  23. 23. LADDER FOR PICKING ITEMS AT HEIGHT PLASTIC CONTAINERS FOR PARTS HANDLING Plastic containers are required for handling of parts both at the time of binning and picking as plastic containers are light in weight and do not have sharp edges which may harm the picker/binner and damage the parts. These containers are stackable and hence do not occupy much space (Nilkamal containers of Blue colour). LOADING / UNLOADING FACILITIES Safe loading and unloading facilities to be provided for the material received/dispatched. Wooden / Steel/ Stretch wrapped boxes should not be rolled or dropped. Corrugated cartons and loose parts should be manually handled from the truck directly on to/from the trolley. BOX OPENING TOOLS Tool Application Claw Head Hammer (2Kg) For opening wooden boxes Lever with de-nailer (500mm) For opening wooden boxes Strap cutting plier For cutting hoop iron strap Cutting knife For cutting plastic film of Stretch wrapped Boxe PACKING ITEMS (For Mother Warehouse) The equipment required includes plastic strapping machine, hand metal strapping machine, packing table, and packing material – Straps, Wood, polythene bags etc. and shelves/racks for temporary storage.
  24. 24.  A leadership having multiple workshops have the option of having a Hub & Spoke arrangement.  In a Hub & Spoke arrangement the Hub is called Mother Warehouse and spoke is called child warehouse.  In such an arrangement it is critical to have a robust logistic network.  In this type of dealerships Mother Warehouse works as the supplier for the Child Warehouses.  The child warehouse will stock only the minimum required part numbers in minimum required quantities. All bulk stock is kept for the child warehouse is kept at the Mother warehouse Location. This will ensure;  Lower space required for storage  Less stock  Mother warehouse will supply items to the child warehouse in the following frequency  Minimum once in a day for child warehouse in same city.  Minimum of 3 times a week for Child warehouse in outside city.  To ensure this supply a Permanent Journey Plan (PJP) need to be made.  Adequate number of Mahindra Genuine Parts branded delivery vans based on the route and sale volume need to be employed.  Adequate illumination is lighting is required for smooth operation of warehouse activities. Location Light Level Warehouse, Working / Packing / Dispatch 300 Lux Small Item Storage 300 Lux Office 500 Lux Counter Area 500 Lux Location Light Level Warehouse, Working / Packing / Dispatch 300 Lux Industrial fluorescent channel with wide, narrow and asymmetric beam reflector suitable for 2x28W FTL (T5) / 2x36 W FTL (T8) (#) (#) (Brand (Wipro) is for indicative purpose only, you may use any suitable brand) 3.3 LOGISTICS (FOR MULTIPLE WORKSHOP DEALERSHIPS) 3.4 WAREHOUSE LIGHTING
  25. 25.  In this section we deal with the colour code for • Racks & Bins • Wall Painting • Floor Painting Bins and Racks Location Colour Rack Upright FF Deep Orange 9000928 (Nerocoat)($) Rack Panel Ring Ivory 9001942 (Nerocoat) ($) VOR Rack Mahindra Red (Magenta 100% & Yellow 100%) Non Moving Rack Black ($)Brand is for reference purpose only; any brand of same shade may be used Powder Coating is to be done for the racks. Matt finish for uprights. Glossy finish for panels. Wall Painting Zone Paint Type Paint Colour Interior Walls Up to 8' height from ground Walls above 8' Apcolite Synthetic Enamel Apcolite Super Acrylic Enamel White Interior Ceilings Apcolite Super Acrylic Enamel White Office Apcolite Super Acrylic Enamel White 3.5 COLOUR CODING
  26. 26. Floor Painting Work Area Mint Green, Nerolac($) Gangway Golden Brown, Nerolac ($) Border Marking White line 30 mm wide after 50 mm from the rack edgeArrow Marking (To mark entry and exit to an aisle) White line 30 mm Aisle No Marking on the Rack Upright (Tomark entry and exit to an aisle) Aisle No = 12 cm depth x 25 cm width(#) Height of Font = 10 cm Zone No / Aisle No / Column No marking On the floor (outside the border marking) (Tomark entry and exit to an aisle) Base Colour White Writing Matter Black Aisle No = 15 cm depth x 30 cm width(#) Height of Font = 12 cm Column No = 10 cm depth x 20 cm width(#) Height of Font = 8 cm ($)Brand is for reference purpose only, any brand of same shade may be used (#) The thickness of the painting / epoxy coating is 1000 microns Mahindra & Mahindra Warehouse Width t Height Depth
  27. 27. Everypart  Every parts should have a location and it should be in its place.  The location code should be self-explanatory in locating the part.  The location is marked from left to right.  Location is marked using an seven digit code .The location number flow is given below.  Floor - > Aisle No - > Rack column - > Rack Level - > Bin  All locations should be updated in the system. Example is given below: S A 05 D 03 S– Floor A– Aisle No 05– Rack Column D– Rack Level 03– Rack Section Whether Ground (G)/First floor (F) etc. Location G 3.6 LOCATION LOGIC F G
  28. 28. Rack Level G B - - D - - Rack Column G B 05 D - - Whether Ground (G)/First floor (F) etc. Rack Level Column and Rack Section 01 02 03 04 05 06 07 H 0 1 0 2 0 3 0 4 0 5 0 6G F E D C B A Rack Column G B 05 D 03 A B Location Number G B Aisleno- Aisleno- Aisleno- aisle aisle aisle
  29. 29. Location Marking Flow 13 14 01 02 13 14 01 02 12 11 04 03 12 11 04 03 09 10 05 06 09 10 05 06 08 07 08 07 08 07 08 07 05 06 09 10 05 06 09 10 04 03 12 11 04 03 12 11 01 02 13 14 01 02 13 14 A B C D H G F E 14 13 02 01 14 13 02 01 11 12 03 04 11 12 03 04 10 09 06 05 10 09 06 05 07 08 07 08 07 08 07 08 06 05 10 09 06 05 10 09 03 04 11 12 03 04 11 12 02 01 14 13 02 01 14 13
  30. 30. Location Marking: Location is printed and bar-coded (Optional) Location is marked on the Bins by pasting the same on bins Location Labeling on the Bins: Label 10 cm 3 cm Dimension 10cm x 3 cm Background Colour White Font Colour Black Font Type Verdana Font Size 32 Alignment Centre( Horizontal & Vertical) Rack Type Location Small & Medium Parts Storage On the Rack Side Body Part Storage On the Rack Side Muffler Rack Above the Hook Cantilever On the Rack front side, inner most at Top & outer most at Bottom
  31. 31. Manpower is the building block of an organization. Sustainability of an organization depends on having:  Right manpower with the right skill for the role.  Optimum number of Manpower  Happy & motivated manpower Regular training to your staff, topics to be covered 1. System 2. Sales promotion 3. Operations Business Processes in Dealer Spare Parts Operations:  Transactional  Operational  Managerial Regular training to your channel partners, topics to be covered 1. Selling techniques 2. Skill up-gradation 3. Awareness about genuine parts Mother Location: CombinedWorkshop (Mechanical + Accidental) Sale Range (in Rs. Lacs) For Combined Head Spare Parts, Workshop Level Internal Process Controller Business Planner Receipt & Warehouse Issuer Order / Co- Branches Picker Total 0-5 1 1 2 4 5-10 1 1 2 4 10-20 1 1 1 1 2 6 20-30 1 1 1 1 1 2 7 30-40 1 1 1 1 1 3 8 40-50 1 1 1 1 1 1 4 10 50-60 1 1 1 1 2 1 4 11 60-90 1 1 1 1 2 1 6 13 90 - 120 1 1 1 1 3 1 7 15 3.7 Manpower Development & Required
  32. 32.  The process in a warehouse affects productivity  Hence the processes need to be standardized.  The various processes in a warehouse are 4.1 Ordering 4.2 Receiving 4.3 Binnig 4.4 Order Picking& Issue /Dispatch 4.5 Logistics 4.0 WAREHOUSEPROCESS
  33. 33. Types of Orders The various types of orders are; a) RegularOrder Regular order is placed for stock replenishment. The regular order is to be placed on the ordering days specified by BAW and the same will be dispatched as per schedule communicated. b) VOR Order Such orders are to be placed only when a vehicle is off the road i.e. parts without which the vehicle cannot be functional & be back On-Road. One VOR order for one vehicle. These are required urgently to provide service to the customer. c) KeyOrder Key order is used to get duplicate Keys for the customer. Order Methodology Order Type Mode of Order Ordering Frequency Order dispatch Day Regular Order Extranet / DMS Twice in Month N + 1 VOR Extranet / DMS Daily (N) Same day for order up to 10-15 KEY Extranet / DMS Daily(N) -- Order Preparation: SOQ = Suggested Order Quantity SS = SafetyStock LT = Lead time (Time between ordering and receipt) OC = Ordering Frequency (2 for Daily, 3 for Triweekly, 4 for Bi weekly and 7 for Weekly) DBAR = Last 3 months average sale OHQ = On Hand Quantity (Current Stock) OOQ = On Order Quantity (Parts orders & not received) CBO = Customer Back Order (Pending Requisitions) Include all items which are in Movement Code 1, 2 & 3 in the Ordering Plan Please refer BAW Parts Operation Manual for further details Branch / Child location  A branch/child location should give order to the mother location on a daily basis.  Orders to be transmitted to Mother Warehouse in 1900hrs. 4.1 ORDERING SOQ = [SS for LT + SS for OC + (OC +LT) x DBAR] – OHQ – OOQ + CBO
  34. 34. MatchtheTakeopen  Parts dispatched from BAW will arrive at the dealer location as per the lead time defined.  Regular’s orders are dispatched through road transport and VOR orders through Air / Road mode.  Dealers should carry out the following checking before receiving the consignment.  Receipt area should be specified.  It should also have the Pre-binning rack. Binning trolleys to be kept ready at the location before receiving the consignment from BAW. Check Points  Check whether the consignment is actually for the dealer.  Match the consignment with the ship list summary from extranet.  Check for external damage, if any. In case of external damage, shortage /excess mention the same on the POD and get the delivery person signature.  Take open delivery for glass items and external damage cases.  Always mention the receiving person name along with delivery date and time on POD copy.  Update the same in DMS.  Ensure to hand over the Proof of Delivery copy immediately to the truck drive Follow the Material receipt process as detailed in BAW Parts Operation Manual  Take out the list of parts received and append the location codes on each part.  Segregate according to the bin location.  Parts to be kept in binning trolley, with part in the last bin first (LIFO method), Sketch appended below.  Follow the same process if items in next adjacent aisle is also kept in the same trolley.  Match the bin number and the bin location card on the part and keep the item in the bin. 4.3 BINNING 4.2 RECEIVING 1 3 4 2
  35. 35. For Workshop Issues  Take print out of workshop Issue Note.  Start picking from the nearest bin location from the counter For Stock Transfer Issues  Release the pick ticket  While printing the pick ticket use the option of sort by “Bin Location”  Start picking from the nearest bin location from the counter. This is applicable to Multiple Workshop Dealership Mother Location  Delivery to all the branch location as per the Permanent Journey Plan (PJP).  Pick and pack all the items from 0900 hrs. to 1000 hrs.  Dispatch the items to the branches by 1000 hrs. Child / Branch location  Do binning immediately on receipt. 4.4 ORDER PICKING & ISSUE/DISPATCH 4.5 LOGISTICS
  36. 36.  In this section we shall see the parts storing process.  This is divided in to the following section. 5.1 StoragePhilosophy 5.2 StrongRoom 5.3 FIFO 5.4 PerpetualInventory 5.5 PhysicalInventory 5.6 Types of Layout 5.7 WarehouseLayout 5.8 Layout Guidelines There are two methods of storage a) Fixed Location b) Dynamic Location  In fixed location each item location is fixed.  If the item for which a location is attached is not available that space will stay un-utilized.  Retrieval of item is easy as there is less system dependency.  This is suited for individual part picking.  In Dynamic Location method location are fixed  SKU are allocated by system based on the location freeness.  Best utilization of space.  But order picking is not possible without system support.  Suitable for large Operations.  In our case we are suggesting a Hybrid method.  For MC1, 2, 3,&4 Items fixed location method.  For MC 5 items dynamic location method (for items in this location has to be done as per policy).  In an Optimum warehouse layout we need to ensure  Minimal movement of Man & Material  Easy retrieval of parts  Proper preservation & minimal damage. Parts have to be segregated based on the Movement Code and FMSN. Movement Code is the number of months the part got transacted in the given period Movement Code If 12 month Data is Available If only 6 month Data is Available MC1 12 6 MC2 9 - 11 5 MC3 6 - 8 3 - 4 MC4 1 - 5 1 - 2 MC5 NONE NONE 5.0 PARTS STORAGE METHOD 5.0 PARTS STORAGE METHOD
  37. 37. FMSN Analysis  FMSN analysis is done on the basis of sales volume (Quantity) of each part.  FMSN analysis process.  Take out the entire consumption report.  Append gross sales quantity (numbers) of each root part number over the period of one year.  Make a list of parts that ranks the parts in descending order of their sales quantity. All the parts should be included in this list irrespective of their sales quantity Category Classification F Parts that contribute to top 75% of quantity sold M Parts that contribute to next 20% of quantity sold S Parts that contribute to next 5% of quantity sold N Parts not sold that period FMS(N) (Fast Moving, Medium Moving, Slow Moving, Non Moving) 924.00 100.00% Row Labels Sales Qty (FMS) Contribution % Cumulative FMS AC00444 574 62.12% 62.12% F AC00467 69 7.47% 69.59% F AK00039NM 52 5.63% 75.00% F - - - - ATU0043M 20 2.16% 77.38% M AC00460 18 1.95% 79.33% M AK00024 18 1.95% 81.28% M AC00447 10 1.08% 90.37% M ATU0042 8 0.87% 93.07% M AC00431 6 0.65% 93.72% M AC00457 6 0.65% 94.37% M AK00038 5 0.54% 94.91% M AC00427 4 0.43% 95.35% S AK00026 4 0.43% 97.08% S - - - - - - - - AC00426 3 0.32% 98.16% S ATU0048 2 0.22% 99.57% S AK00047 2 0.22% 99.78% S AK00049 2 0.22% 100.00% S
  38. 38. Stocking Process Base Data Available / Required  Bin Master  Movement Code Details  Item in MC 5 will be further subdivided into; - Not moved for 1 year - Not moved for 2 years - moved for 3 years & more  Stock Quantity Stocking Norms is broadly divided in to two a) For items in MC 1 to MC 4 & New Items b) For MC 5 Items a) For MC1 to MC4 & New Items Stocking is divided in to 3 stages; Phase –I; Preparing the Part List - Do FMSN analysis on the parts - Append Movement code, FMSN category, & Bin Master Data to the Stock list - Zero in on the Bin & Rack required - Sort the stock list in 3 Levels; Bin Required – Part Number [Stocking List] Phase – II; Rack / Bin Preparation MC 1 MC 2 MC 3 MC 4 MC 5 F 294 79 15 27 0 M 213 582 660 711 0 S 0 0 110 2701 0 N 0 0 0 0 1531 At eye level in the racks, to be kept near counter In top and bottom rows Racks at the rear end of Warehouse To be done as per BAW Parts Policy - Topof the Rack is demarcated as Over flow Location (Green Flag with magnet) - Over flow items need to be kept on the top of the rack against that bin. The Green Flag should be affixed on the bin whose part is kept on the top
  39. 39.  High value parts like, Bearings, ECU etc...  These items need to be kept secure by creating a strong room with lock & key.  The operational access of this location will only with the spare parts manager.  FIFO = First In First Out  This will ensure that older parts gets used first, thus ensuring less chances / quality deterioration over time.  The storage and picking in warehouse to follow FIFO.  The process of ensuring FIFO is given below  Store items from left to right in a bin.  Picking to be done from the right.  Replenishing to be done from the left by shifting the stock to right.  Always fresh parts to be kept on the left of the bin only. Initial Stocking Picked from Right Old Stock Shifted to Right New Stock Added to Left 5.2 STRONG ROOM (OPTIONAL) 5.3 FIFO
  40. 40.  Perpetual inventory helps in ensuring Physical Stock and System Stock is matched.  Perpetual inventory to be done on the Fast, Medium and Slow moving items.  The number of times a particular part will be counted is based on the Movement Category.  Perpetual inventory process is detailed below  Frequency of Perpetual Inventory =Daily  Do FMSN analysis based on last 1 year movement  Find number of items to be counted. Example - F Category 500 Nos - M Category 1000 Nos - S Category 1500 Nos - N Category 2000 Nos - Total Number of items = 3xF + 2xM + 1xS + 0xN - = 1500 + 2000 + 1500 - = 5000 Number of Days, = 300 days per year Number of Items to be counted per day = Total Items / Number of Days = 5000/300 = 17 Parts This 17 parts to be divided in the same ratio of 3F:2M:1S  Append the counting day for all the parts  Take the list of items with opening stock of the day.  Do physical counting of parts before start of operations or after close of operations.  Find the items where there is discrepancy.  Do a root cause analysis for the same using fish Bone diagram.  Eliminate the root cause.  Take management approval and update in the system. Part Category of times F 3 M 2 S 1 N 0 5.4 PERPETUAL INVENTORY
  41. 41. Sample Fish Bone Diagram for nailing the root cause System Stock
  42. 42.  This is the process of counting all items in the stock and matching with the system stock.  In this all the part numbers irrespective of the movement is counted.  The manpower required for doing the physical stock taking need to be identified.  The process is given below.  Make team of two members each.  Decide the number of teams based on the following - Total number of parts to be counted - Average Time taken to counted one part Number. - No. of Parts counted / hr - Decide number of teams counting during working hours / after working hours. - Ideally the counting should be over in 2 days  The stock taking process is detailed below  Make adequate teams, a team is of two persons  Area of the warehouse is divided AISLE wise and is allotted to each team  Area wise location wise list of parts is taken out & is given to respective teams  All boxes should be emptied and counted  Boxes that have the original sealing in place need not be opened and the quantity displayed on the box should be accepted.  Parts that need to be relocated due to space constraints / damaged should be moved to the desired location and the new location recorded in the data sheet.  One person should do the counting and the other should record the numbers counted.  The person counting removes all the quantity of that part from the self and places them on the floor While counting care should be taken to identify, segregate and record parts that are damaged or have been used - Put back in the location  The person counting should identify a part, call out the part number, and this will be written down by this team mate.  General dusting of the shelf is done before placing the parts back on the shelf  All completed data sheet should be signed by both the team members and handed over to the supervisor.  The same to be punched in the system to take the variance report  Reconciliation of the variance report to be done  Some of the points need to be considered for reconciliation  Parts may be on display in the customer lounger / showroom  Branch transfer is not updated into the system  Part is kept in more than one location  While issuing the part there may be a double entry in the system  While receiving the part there may be a double entry in the system  Check claims received and if properly updated in system and stock  Check quarantine items if physically removed from the stock  After reconciliation root cause analysis using fish bone diagram need to be done and root cause need to be eliminated.  Take management approval and update in the system. 5.5 PHYSICAL INVENTORY
  43. 43.  In this section we discuss about the various control procedures in the dealer warehouse  The various warehouse control parameters are 6.1 WarehouseImprovements&maintenance 6.2 Quality Assurance 6.3 EmployeeSatisfaction Index (ESI) 6.4 Safety & Health in Operations 6.4.1 Climate Control inWarehouse 6.4.2 Dust Control  KAIZENS , Continuous Improvements  There is no such thing as a perfect process or system  Every system and process need to undergo continuous improvement  Special Kaizen cell need to be formed and KAIZENs need to be done and documented  5s need to be maintained in the warehouse  No parts to be kept on the floor  If some item need to be kept on the floor for Temporary storage purpose, a board should be kept at that location detailing the item, reason and person responsible.  MIS for management  In order we ensure spare parts operations are streamlined a dealership need to track the operations on a periodical basis.  Dealer should update and monitor the following reports - Daily Frequency Receipt Report Dead Stock Sale Report Perpetual Inventory Report Non Availability Report Service Ratio Report VOR Report - Monthly Frequency M&M Order Status Report Profitability Report Dead Stock Sale / Purchase, Part level Report Perpetual Inventory Report 6.0 WAREHOUSECONTROL 6.1 WAREHOUSE IMPROVEMENTS & MAINTENANCE
  44. 44. Daily Reports Service Ratio Report Date No of Lines requested No of Lines supplied Service Ratio Free Service Paid Service Body Shop Free Servi ce Paid Servi ce Body Shop Free Servi ce Paid Servic e Bo dy Sho p VOR Report Order No Order Date JC No No of Lines Requested by Received (Y/N) Issued to Workshop Value Receipt Report Date Mahindra Genuine Parts BAW Co dealer Co Distributor Dead Stock Sale Date Part No Mahindra Genuine Parts BAW Co dealer Co Distributor Perpetual Inventory Report DAY Number of parts Category Wise No of Parts with Discrepancy Corrective Action F M S F M S F M S 1 2 3 .. ..
  45. 45. Non Availability Report Sl NO JDP Y/N C/ F Sin ce Date Vehicle No. Model Custo mer Nam e Conta ct No. Part No. Descriptio n Qt y. W/s Conta ct Person Job card Dat e C o n t d . . . 1 2 3 4 5 6 7 Con td .. . Job Car d Tim e Req. Date Req. Time Order To Orde r Date Promise d Date Received Date Rec Tim e Infor med to & Date Status Categ ory of Part Last 6 mth Consum ption
  46. 46.  BAW for Display  Apart from the reports which are for analysis thereare certain report which are for display purpose. These reports are for sensitizing the importance of the processes  Daily Frequency Report Name Type Service Ratio Display Board VOR Display Board  Monthly Frequency Report Name Type Spare Parts Sale Status Display Board Service Ratio Display Board VOR Display Board Dead Stock Sale / Purchase, Summary Display Board Inventory Display Board  Warehouse Process control boards  These the display boards which are required to be kept in the warehouse for the process control. The boards should be kept either in English or the Regional Language. The different types of boards are  Following need to be done to ensure that there is no drop in quality of job and there is continuous improvement in the work process.  Training need identification & Training of spare parts personnel.  Suggestion Scheme  Display of Best practice “Happy Employees makes Happy Customers and Happy Customers brings in Business Growth & Sustainability” Following activities need to be done to ensure low employee turnover  Empowering employees with higher responsibility  Defined career path  Market linked remuneration  Employee feedback while maintaining the anonymity of the person who gives feedback  Employee recognition schemes  Family get together 6.2 QUALITY ASSURANCE 6.3 EMPLOYEE SATISFACTION INDEX (ESI)
  47. 47.  Follow safety processasperthelocalstatutoryrequirements.  BAW believes that employee is an asset to the company.  Employee safety is an essential and integral part of each and every activity.  Hence it should be the first consideration in the operation of the business.  Accidents are preventable through continual improvement in working environment.  15th of every month to be celebrated as safety day  A responsible and experienced employee should be appointed as safety in charge.  Following need to be displayed in the prominent location.  In Notice Board - Safety Pledge (in English & in Regional Language). - Steps for usage of Fire Fighting Equipment (with pictorial representation). - Display of Names & Phone numbers of employees responsible for First Aid Kit & its usage - Important phone numbers like: of nearby hospitals, police station, fire station, person to contact in case of emergency from the organization. - Display of Contact details of CEO/ Owner, SafetyIn charge.  Sign Board - Various sign boards like no smoking, etc can be put up at various places. - Display of Emergency Exit markings in warehouse at easily visible locations  Personal Protective Equipment (PPE) - The wearing of Personal Protective Clothing is mandatory for anyone who is entering the area where the risk of harm is involved like - Under construction site - Proper posters with instructions must be put in such areas. - A Personal Protective Clothing Register will be maintained by the Safety In charge and PPE will be issued to every employee. Few examples of PPE are: - - Gloves: should be worn by workers w h i l e unloading/ handling parts Safety Shoes are mandatory for those working in warehouse  First Aid Kit - First aid kit to be kept with Safety In charge. - Record of all the persons who may use the kit in case of requirement will be maintained with reason of using it.  Hazard Identification - All activities, processes, substances and work places must be risk assessed under the guidelines from SafetyIn charge. For example - Electrical Wiring - load per socket- which can trigger a Short circuit and fire. - Loose / Hanging electrical wiring - Proper safety latches whileretrieving items from different location (elevated & in Pits) - Not to store inflammable items near the exit. Proper lighting of the Work area 6.4 SAFETY & HEALTH IN OPERATIONS
  48. 48. 6.4.1 CLIMATE CONTROL IN WAREHOUSE  Climate control in the warehouse is required for smooth operations and for sustained productivity of employees.  Adequate cooling in line with the seasons to be installed.  Proper rain / wind guards to be in place  Sky light / Northern lights for sample sunlight 6.4.2 DUST CONTROL  Proper dust control is required in warehouse for preservation of parts in a warehouse.  This will prevent the quality deterioration of the stored parts.  Air / Plastic curtains need to be installed at proper locations.  Critical storage items like brake pipe, fuel pipes etc. need to be covered by plastic curtains. Warehouse Standardization Objective of Warehouse Standardization  Effective utilization of Space  Maintain parts quality  Efficient Operations  Faster response to Workshop  Safe handling procedure  Increase profitability
  49. 49. Warehouse, Before Standardization
  50. 50. BEFORE AFTER Essence of Warehouse Standardization 1. Product specific racks For odd shape parts such as Muffler, brake lines, fuel pipes, cables etc. 2. Special Racks Rack for temporary storage of Receipt items. Rack for Storage of pre pulled items. Rack for Packed storage of Non Moving item. 3. Easy to maintain FIFO 4. Maintain one – part one location
  51. 51. Product Dimension Specific Racks SM1 SM2 Muffler Rack
  52. 52. Product Specific/Special Racks
  53. 53. Small Parts Rack Small Parts Rack
  54. 54. Pre Pulled Rack Cantilever Rack Cantilever Rack Cantilever Rack
  55. 55. Body Parts –Rack

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