Presentation on Study of Warehouse operation of Panasonic India, improvement programs on space and inventory management using Cube Utilization, Pareto and ABC analysis.

1. NAVNEET KUMAR DWIVEDI
MM1416516
OPERATIONS AND SUPPLY CHAIN MANAGEMENT
Study of warehouse operations and
suggest improvement program for
space and inventory management
1

2.  Introduction
 Company Profile
 Need for Project
 Objectives and Scope
 Warehousing Operations
 Research Methodology
 Research Design
 Improvement Program
 Data Collection and Data Analysis
 Improvement Program
 Recommendation and Benefits
 Conclusion and Future Scope
 Key learning and Difficulties
Content

3. Introduction: Project Overview
 Objective of the project is to carefully observe different working areas of warehouse and
identify areas with scope of improvement and suggest improvement plan.
 For the purpose of project study floor space management and inventory management is
selected for improvement program. Major problem faced are: lack of floor space and
mismatch in system vs. actual stock and unavailability of material at given location. To
resolve these problems improvement programs are suggested after studying their current
space utilization, sales volume and sales value. Also there ERP system is studied to find
shortcomings in system and suggest improvement program and compile benefits to be
achieved by organization.
3

4. Company Profile
Panasonic India Pvt. Ltd.
 Subsidiary unit of Panasonic Corporation, Japan
 Worldwide, Panasonic Corporation and its subsidiaries are guided by a
basic business philosophy created by founder Konosuke Matsushita
 Panasonic commenced its operations in India in the year 1972.
 Panasonic India corporate office is located in Gurgaon, Haryana
 Mr. Daizo Ito joined as CEO Panasonic India in 2008
4

5. Company Philosophy & Vision
Mission "Recognizing our responsibilities as industrialists, we will devote ourselves
to the progress and development of society and the well-being of people
through our business activities, thereby enhancing the quality of life throughout
the world."
Vision Panasonic will make a contribution to realizing “A Better Life, A Better
World” for each and every one of our customers.
5

6. Business Segment& Presence in
India
Business Segment
 Appliances
 Eco Solutions
 AVC Networks
 Automotive & Industrial Systems
Panasonic group companies in India
 Panasonic AVC Network India (TV)
 Panasonic Home Appliances
 Panasonic Energy India
 Panasonic Carbon India
 Anchor Electronics.
6

7. Panasonic India has 26 warehouses and out of these four are
designated as regional hub. These are:
 Delhi
 Mumbai (Bhiwandi)
 Chennai (Guindy)
 Kolkata
7

8. Need for Project
Need of the project arises in order to understand the operations of
warehouse and suggest improvement programs to resolve difficulties
faced by organisation
 Mismatch of System vs. Actual Stock; WMS vs. Oracle
 Unavailability of Stock at defined location in system (WMS)
 Lack of storage space during peak load season
 Unavailability of policies for stock count cycle
8

9. Objectives and Scope
Objectives
 Study of complete warehouse operations
 To suggest improvement program in floor space management
 To suggest improvement program in inventory management
Scope
 Scope of study and improvement program is restricted to Mumbai (Bhiwandi)
warehouse of Panasonic India which is one of the four regional hubs of the company
 Study is done considering both the operations T1 and T2
9

10. Warehousing Operations
 T1 Operations is related to upcountry stock transfer or stock movement,
this include transfer of stock from Mumbai warehouse to other
warehouses or other regional hub.
 T2 Operations is related to local sales which includes dispatch of stock
to local distributors and wholesalers it also include dispatch to local
service centres.
 Oracle Business suite is ERP software and 4Se is their front end WMS
software
 Average monthly sale T2 operations is approx. ₹30 Cr
10

11. Key Performance Indicators
 On time shipment confirmation
 On time delivery
 On time delivery update
 On time proof of Delivery (POD)
 Logistics RMA
 Damaged Material
11

12. Warehousing Process
All activities being handled at warehouse can be classified in following processes:
 Receipt of material
 Dispatch of material
 Management of inventory in warehouse
 Handling of return/replaced material
 Documentation of activities
12

13. Receipt of material
 Port (Imported
Material)
 Factory (manufactured
within country)
 Stock Transfer
13Dispatch of material
 T1 Operations
 T2 Operation
 Service Centre
Accounting of inventory in warehouse
 Daily stock verification
Handling of
damaged/return/replaced material
 Damage Return from dealer
 In transit damage
 Replacement of Material under
warranty
 Damage Material Received

14. Research Methodology
 Studying current situation of the organisation and listing all the difficulties faced
 Complete project can be studied on the basis of 5S tools i.e. sorting, set-in-order,
shine, standardize, systematize.
Sorting: Sorting out the need and want or value added and non-value added.
Set-in-order: Systematic arrangements of needs.
Shine: Spic and Span cleanliness Inspection.
Standardize: Standardizing the process to maintain above three S1, S2, and S3
Sustain: Self-discipline and training
14

15. Research Design - Space
Management
Space Utilization
When an organization finds it has storage space
concerns, it can benefit from looking at two different
but related elements of space utilization
 The storage capacity of the building itself, that is
directly a function of the physical aspects of the
layout, the width of the aisles, the storage
methods, the types of storage aids, etc.; and
 How well the storage capacity is being utilized,
that is directly a result of how these resources are
managed.
15

16. Data Collection and Data Analysis 16

17.  Sample area marked as A1 is selected for our study, major
reason for selecting this area being poor utilisation of
vertical space
 Area A1= 35 ft * 72 ft
~ 2500 sq. ft
 Theoretically available space in cube = Length *Width*
Height up to which stacking can be done
= (72*37*7) cu.ft
= 18650 cu.ft
Total floor space used = 37’ * 72’
= 2664 sq.ft
~ 2600 sq.ft
 Now, actual utilization can be calculated as volume of
goods actually stored in the bin.
17

18.  Stock of selected bins (AA01, AA02, AA03, AA04, AA05, AB01, AB02, AB03,
AB 04, and AB05) is taken from WMS and then their volume is measured
18
File
Link

19.  Actual volume of material stored in bins = 3630 cu.ft
Thus Current cube/space Utilisation
= (Actual volume occupied/Available Cube Space)
= 3630/18650
= 20%
19
This poor cube utilisation not only results in
wastage of space but it also results in financial
loss in terms of rent paid for unutilised space.
Approx. Monthly Rent = ₹ 9.5/ sq.ft
Area under consideration (A1)= 2600 sq.ft
Monthly Rent = ₹ (2600*9.5)
~ ₹ 25,000
Rent Paid for unutilized space= (80% * 2500)
= ₹ 20,000

20. Improvement Program
Implementation of Racking System
Considering racking system this cubic space can be divided in smaller storage units. Dividing
storage area in smaller area will result in better utilization of space as space in vertical direction
can also be utilized.
 Considering six racks of dimension (5’ * 35’ * 7’) to be installed
Assumptions
 Small shelves of 2 ft. is utilized up to 60%
 Large shelves of 3 ft. is utilized up to 70%
 Space without rack is utilized more than 40% as small materials are removed and stored in racks.
20

21.  Now we have 50% of area under racking system and 50% without racking system
21

22.  Total volume occupied in new system= Volume 1 +Volume 2
Volume 1: Area without space
Volume2: Area with racking system
Volume occupied = Length * Breadth* Height* Utilization
Volume1 = (18’ * 72’ * 7’) * 40%
~ 3630 cu.ft
Volume = (5’ * 35’ * 1’) * 60% * 6 *2 +
(5’ * 35’ * 2.5’) * 70% * 6 *2
= 1470 + 4200
~ 9300 cu.ft
 Thus new cube/space Utilization
= (Actual volume occupied/Available Cube Space)
= (9300/18650)
~ 50%
22

23.  Monetary Benefit => Money Spent (as rent) on unused space under new
system
= 50% of ₹ 25000
= ₹ 12500
 Monthly saving = ₹ 20000 – ₹ 12500
~ ₹ 7000/-
With reference to quotation received for construction of racks we can calculate
approximate payback period.
Approx. Quote Received ~ ₹ 200000/-
Average Monthly Saving ~ ₹ 7000/-
 Payback period ~ (200000/7000) = 28 months i.e. 2.3 years
23

24. Research Design - Inventory
Management
 Pareto analysis is used to identify vital few items and trivial many, similarly ABC is used to
classify items in different categorise depending upon their sales value
 Pareto Analysis to conduct this analysis sales record of past one financial year (Apr’14 to
Mar’15) is collected. It is observed that sales of different item group don’t remain same
throughout the year; it varies as per season and time period of year
 In order to have uniformity in sales yearly sales record is divided in quarterly sales record.
Then on these quarterly sales record Pareto analysis is done to identify vital few of every
quarter.
24

25.  Weightage is given to different items depending on contribution of that
particular item towards sales in that particular quarter. Final score is
calculated by multiplying ranking with weightage
 This list with ranking is used to design layout of warehouse
 ABC Analysis again for this analysis also sales record is used. ABC analysis is
done on the basis of sales value of different value. Once items are classified in
different categories then it can be used to define policies related to
frequency of stock count of different item group.
25

26. Data Collection and Data Analysis
For analysing stock movement we need to collect record of stock movement, this
can be retrieved from their sales record. For the purpose of project sales record of
one year (Apr 2014 to Mar 2015) is analysed
26
Invoice
Number
Invoice
date
Party Name Sales Channel Item BP Group
Product
Category
Qty Gross Price Total So No. Branch Order Type
30525 05-Apr-14 SHREE KRISHNA ELECTRONICSBRANDSHOPS CS-S18PKYP RoomAircon Indoor 1 22246.7 21715 62595729 Mumbai PSIN PAN Non ConsolTrade
30525 05-Apr-14 SHREE KRISHNA ELECTRONICSBRANDSHOPS CS-YS18PKYP RoomAircon Indoor 1 18281.94 17845.01 62595729 Mumbai PSIN PAN Non ConsolTrade
30525 05-Apr-14 SHREE KRISHNA ELECTRONICSBRANDSHOPS CU-YS18PKYP RoomAircon Outdoor 1 27744.49 27081.39 62595729 Mumbai PSIN PAN Non ConsolTrade
30532 05-Apr-14 EMDEE ELECTRONICS INDIA PVT LTD-CPDDEALER CU-KC12QKY RoomAircon Outdoor 3 20475.77 59262 62595631 Mumbai PSIN PAN Non ConsolTrade
30532 05-Apr-14 EMDEE ELECTRONICS INDIA PVT LTD-CPDDEALER CS-KC12QKY RoomAircon Indoor 3 13436.12 38887.49 62595631 Mumbai PSIN PAN Non ConsolTrade
30532 05-Apr-14 EMDEE ELECTRONICS INDIA PVT LTD-CPDDEALER CU-XC12QKY RoomAircon Outdoor 2 23559.47 45457.99 62595631 Mumbai PSIN PAN Non ConsolTrade
30551 07-Apr-14 VIJAY SALES-CPD MASS NR-BW465XSX4 Fridge 400 Litre 1 56555.07 51352.01 62596556 Mumbai PSIN PAN Non ConsolTrade
30536 07-Apr-14 RELIANCE RETAIL LIMITED MASS TY-STLCDL- 19" Others Accy 6 1 6.75 62595543 Hyderabad PSIN PAN Non ConsolTrade
30536 07-Apr-14 RELIANCE RETAIL LIMITED MASS TH-23A400DX LCD 18" to 24" 6 12246.7 70056.02 62595543 Hyderabad PSIN PAN Non ConsolTrade
30537 07-Apr-14 RELIANCE RETAIL LIMITED MASS CS-UC18QKY3 RoomAircon Indoor 8 13436.12 97600.05 62595646 Hyderabad PSIN PAN Non ConsolTrade
30537 07-Apr-14 RELIANCE RETAIL LIMITED MASS CU-UC18QKY3 RoomAircon Outdoor 8 20255.51 147136.06 62595646 Hyderabad PSIN PAN Non ConsolTrade
30537 07-Apr-14 RELIANCE RETAIL LIMITED MASS CS-KC12QKY RoomAircon Indoor 4 13436.12 48800.03 62595646 Hyderabad PSIN PAN Non ConsolTrade
.. .. .. .. .. .. .. .. .. .. . .. ..
.. cont.. .. .. .. .. .. .. .. .. . .. ..
.. .. .. .. .. .. .. .. .. .. . .. ..

27. 27
Row Labels Sum of Quantity Sum of Total ( ₹ )
AIO Printer 1652 7701135.99
AV Accy 5422 3201195.97
Broadcast 1664 224780154.6
CCVE 3547 46839303.03
Digital Still 1173 51429495.39
DLP Projector 2061 102095987
DVD 602 1176985.33
Fax 805 4686836.97
Fridge 3966 116257514
HD Com 198 10950880.42
Hifi 796 3312708.67
IP Camera 6 85387.5
LCD 42252 1083543962
LCD Projector 1479 88724221.1
Movie 2118 108308324.6
MWO 9094 89610519.86
Packaged Aircon 249 9306056.17
Pana Beauty 66920 79815548.33
Panaboard 91 4201441.49
PBX 18093 148313268.6
Plasma 7 42892.92
Plasma Accy 48 183885.78
Plasma Panel 1437 99688293.67
PPC 6 13202.03
DLP Projector 2061 102095987
DVD 602 1176985.33
Fax 805 4686836.97
Fridge 3966 116257514
HD Com 198 10950880.42
Hifi 796 3312708.67
IP Camera 6 85387.5
LCD 42252 1083543962
LCD Projector 1479 88724221.1
Movie 2118 108308324.6
MWO 9094 89610519.86
Packaged Aircon 249 9306056.17
Pana Beauty 66920 79815548.33
Panaboard 91 4201441.49
PBX 18093 148313268.6
Plasma 7 42892.92
Plasma Accy 48 183885.78
Plasma Panel 1437 99688293.67
PPC 6 13202.03
Room Aircon 58746 920387668.1
Small HA 2511 9844716.41
Small KA 2 251.13
Solar Product 150 154461.94
TEL 85730 106912530.1
Toughbook 178 13103175.69
UA 13123 281503.08
VRF 293 6042198.84
Washer 15971 233971538.2
Water Purifier 89 871660.92
Grand Total 340479 ₹ 357,58,38,906
File
Link

28. 28
Sr No. Row Labels Sum of Quantity Sold
Cumulative
Quantity
Cumulative
Percentage
1 TEL 33643 33643 34.22%
2 Room Aircon 25776 59419 60.43%
3 Pana Beauty 14251 73670 74.93%
4 LCD 6834 80504 81.88%
5 PBX 3972 84476 85.92%
6 Washer 3279 87755 89.26%
7 UA 1839 89594 91.13%
8 MWO 1505 91099 92.66%
9 Fridge 1086 92185 93.76%
10 DLP Projector 923 93108 94.70%
11 LCD Projector 901 94009 95.62%
12 Small HA 888 94897 96.52%
13 CCVE 774 95671 97.31%
14 Movie 572 96243 97.89%
15 AIO Printer 538 96781 98.44%
16 Broadcast 384 97165 98.83%
17 Plasma Panel 367 97532 99.20%
18 Fax 302 97834 99.51%
19 Digital Still 252 98086 99.76%
20 VRF 79 98165 99.84%
21 Packaged Aircon 56 98221 99.90%
22 Panaboard 27 98248 99.93%
Sr No. Row Labels Sum of Quantity Sold
Cumulative
Quantity
Cumulative
Percentage
1 TEL 33643 33643 34.22%
2 Room Aircon 25776 59419 60.43%
3 Pana Beauty 14251 73670 74.93%
4 LCD 6834 80504 81.88%
5 PBX 3972 84476 85.92%
6 Washer 3279 87755 89.26%
7 UA 1839 89594 91.13%
8 MWO 1505 91099 92.66%
9 Fridge 1086 92185 93.76%
10 DLP Projector 923 93108 94.70%
11 LCD Projector 901 94009 95.62%
12 Small HA 888 94897 96.52%
13 CCVE 774 95671 97.31%
14 Movie 572 96243 97.89%
15 AIO Printer 538 96781 98.44%
16 Broadcast 384 97165 98.83%
17 Plasma Panel 367 97532 99.20%
18 Fax 302 97834 99.51%
19 Digital Still 252 98086 99.76%
20 VRF 79 98165 99.84%
21 Packaged Aircon 56 98221 99.90%
22 Panaboard 27 98248 99.93%
23 Plasma Accy 26 98274 99.95%
24 Water Purifier 26 98300 99.98%
25 Hifi 17 98317 100.00%
26 Plasma 2 98319 100.00%
Total 98319
Sr No. Row Labels Sum of Quantity Sold
Cumulative
Quantity
Cumulative
Percentage
1 TEL 43111 43111 40.26%
2 LCD 15808 58919 55.02%
3 Pana Beauty 15762 74681 69.74%
4 Room Aircon 8626 83307 77.80%
5 PBX 5693 89000 83.12%
6 UA 5091 94091 87.87%
7 Washer 4731 98822 92.29%
8 MWO 2740 101562 94.85%
9 Fridge 1302 102864 96.06%
10 CCVE 718 103582 96.73%
11 DLP Projector 494 104076 97.20%
12 Broadcast 467 104543 97.63%
13 AIO Printer 428 104971 98.03%
14 Small HA 386 105357 98.39%
15 Movie 380 105737 98.75%
16 Plasma Panel 342 106079 99.07%
17 Digital Still 250 106329 99.30%
18 Fax 243 106572 99.53%
19 LCD Projector 147 106719 99.66%
20 VRF 140 106859 99.79%
21 HD Com 91 106950 99.88%
22 Water Purifier 31 106981 99.91%
2 LCD 15808 58919 55.02%
3 Pana Beauty 15762 74681 69.74%
4 Room Aircon 8626 83307 77.80%
5 PBX 5693 89000 83.12%
6 UA 5091 94091 87.87%
7 Washer 4731 98822 92.29%
8 MWO 2740 101562 94.85%
9 Fridge 1302 102864 96.06%
10 CCVE 718 103582 96.73%
11 DLP Projector 494 104076 97.20%
12 Broadcast 467 104543 97.63%
13 AIO Printer 428 104971 98.03%
14 Small HA 386 105357 98.39%
15 Movie 380 105737 98.75%
16 Plasma Panel 342 106079 99.07%
17 Digital Still 250 106329 99.30%
18 Fax 243 106572 99.53%
19 LCD Projector 147 106719 99.66%
20 VRF 140 106859 99.79%
21 HD Com 91 106950 99.88%
22 Water Purifier 31 106981 99.91%
23 Panaboard 28 107009 99.93%
24 Packaged Aircon 27 107036 99.96%
25 Toughbook 23 107059 99.98%
26 Plasma Accy 7 107066 99.99%
27 IP Camera 6 107072 99.99%
28 Hifi 5 107077 100.00%
29 Plasma 2 107079 100.00%
Total 107079
 First and Second Quarter Sales Record-Pareto Analysis

29. 29
 Third and Fourth Quarter Sales Record-Pareto Analysis
Sr No. Row Labels Sum of Quantity Sold
Cumulative
Quantity
Cumulative
Percentage
1 Pana Beauty 23055 23055 31.49%
2 LCD 11775 34830 47.58%
3 Room Aircon 9930 44760 61.14%
4 TEL 6231 50991 69.65%
5 Washer 4582 55573 75.91%
6 PBX 4458 60031 82.00%
7 UA 3953 63984 87.40%
8 MWO 2611 66595 90.97%
9 Fridge 962 67557 92.28%
10 Small HA 916 68473 93.53%
11 Movie 846 69319 94.69%
12 CCVE 559 69878 95.45%
13 Broadcast 535 70413 96.18%
14 DVD 460 70873 96.81%
15 Hifi 405 71278 97.37%
16 Plasma Panel 353 71631 97.85%
17 Digital Still 342 71973 98.32%
18 DLP Projector 296 72269 98.72%
19 AIO Printer 241 72510 99.05%
20 LCD Projector 241 72751 99.38%
21 Fax 196 72947 99.65%
22 Packaged Aircon 109 73056 99.80%
3 Room Aircon 9930 44760 61.14%
4 TEL 6231 50991 69.65%
5 Washer 4582 55573 75.91%
6 PBX 4458 60031 82.00%
7 UA 3953 63984 87.40%
8 MWO 2611 66595 90.97%
9 Fridge 962 67557 92.28%
10 Small HA 916 68473 93.53%
11 Movie 846 69319 94.69%
12 CCVE 559 69878 95.45%
13 Broadcast 535 70413 96.18%
14 DVD 460 70873 96.81%
15 Hifi 405 71278 97.37%
16 Plasma Panel 353 71631 97.85%
17 Digital Still 342 71973 98.32%
18 DLP Projector 296 72269 98.72%
19 AIO Printer 241 72510 99.05%
20 LCD Projector 241 72751 99.38%
21 Fax 196 72947 99.65%
22 Packaged Aircon 109 73056 99.80%
23 HD Com 77 73133 99.90%
24 Water Purifier 29 73162 99.94%
25 Panaboard 21 73183 99.97%
26 Plasma Accy 13 73196 99.99%
27 Toughbook 5 73201 99.99%
28 Plasma 2 73203 100.00%
29 VRF 2 73205 100.00%
30 Small KA 1 73206 100.00%
Total 73206
Sr No. Row Labels Sum of Quantity Sold
Cumulative
Quantity
Cumulative
Percentage
1 Room Aircon 14414 14414 23.29%
2 Pana Beauty 13852 28266 45.68%
3 LCD 7835 36101 58.34%
4 AV Accy 5422 41523 67.10%
5 PBX 3970 45493 73.52%
6 Washer 3379 48872 78.98%
7 TEL 2745 51617 83.41%
8 UA 2240 53857 87.03%
9 MWO 2238 56095 90.65%
10 CCVE 1496 57591 93.07%
11 Fridge 616 58207 94.06%
12 AIO Printer 445 58652 94.78%
13 Plasma Panel 375 59027 95.39%
14 Hifi 369 59396 95.98%
15 DLP Projector 348 59744 96.55%
16 Digital Still 329 60073 97.08%
17 Small HA 321 60394 97.60%
18 Movie 320 60714 98.11%
19 Broadcast 278 60992 98.56%
20 LCD Projector 190 61182 98.87%
21 Toughbook 155 61337 99.12%
6 Washer 3379 48872 78.98%
7 TEL 2745 51617 83.41%
8 UA 2240 53857 87.03%
9 MWO 2238 56095 90.65%
10 CCVE 1496 57591 93.07%
11 Fridge 616 58207 94.06%
12 AIO Printer 445 58652 94.78%
13 Plasma Panel 375 59027 95.39%
14 Hifi 369 59396 95.98%
15 DLP Projector 348 59744 96.55%
16 Digital Still 329 60073 97.08%
17 Small HA 321 60394 97.60%
18 Movie 320 60714 98.11%
19 Broadcast 278 60992 98.56%
20 LCD Projector 190 61182 98.87%
21 Toughbook 155 61337 99.12%
22 Solar Product 150 61487 99.36%
23 DVD 143 61630 99.59%
24 VRF 72 61702 99.71%
25 Fax 64 61766 99.81%
26 Packaged Aircon 57 61823 99.91%
27 HD Com 30 61853 99.95%
28 Panaboard 15 61868 99.98%
29 PPC 6 61874 99.99%
30 Water Purifier 3 61877 99.99%
31 Plasma Accy 2 61879 100.00%
32 Plasma 1 61880 100.00%
33 Small KA 1 61881 100.00%
Total 61881

30.  Summary of Pareto analysis done
30
34%
26%
15%
7%
4%
3%
2%
2%
1%
6%
Ist Qtr Sales
TEL
Room Aircon
Pana Beauty
LCD
PBX
Washer
UA
MWO
Fridge
Others
40%
15%
15%
8%
5%
5%
4%
3% 1%
4%
II nd Qtr Sales
TEL
LCD
Pana Beauty
Room Aircon
PBX
UA
Washer
MWO
Fridge
Others
31%
16%
14%
9%
6%
6%
5%
4%
1%
8%
III rd Qtr Sales
Pana Beauty
LCD
Room Aircon
TEL
Washer
PBX
UA
MWO
Fridge
Others
23%
22%
13%
9%
6%
6%
4%
4%
4%
2% 1%
6%
IV th Qtr Sales
Room Aircon
Pana Beauty
LCD
AV Accy
PBX
Washer
TEL
UA
MWO
CCVE
Fridge
Others

31. Improvement Program
After doing Pareto Analysis of quarterly sales
record, it is being observed that only few items
are responsible for major sales (80-20 relation).
This observation of vital few and trivial many
can be used to design the layout of
warehouse, vital few to be stored near to the
docks and remaining trivial items in farther part
of warehouse
31
Item Wtg
TEL 34.22%
Room Aircon 26.22%
Pana Beauty 14.50%
LCD 6.95%
PBX 4.04%
TEL 40.26%
LCD 14.76%
Pana Beauty 14.72%
Room Aircon 8.06%
PBX 5.32%
Pana Beauty 31.49%
LCD 16.08%
Room Aircon 13.56%
TEL 8.51%
Washer 6.26%
PBX 6.09%
Room Aircon 23.29%
Pana Beauty 22.38%
LCD 12.66%
AV Accy 8.76%
PBX 6.42%
Washer 5.46%
TEL 4.44%
Row Labels Sum of Wtg Rank
TEL 87.43% 1
Pana Beauty 83.09% 2
Room Aircon 71.13% 3
LCD 50.46% 4
PBX 21.86% 5
Washer 11.72% 6
AV Accy 8.76% 7
Vital Few Items
Row Labels Sum of Wtg
TEL 87.43%
Pana Beauty 83.09%
Room Aircon 71.13%
LCD 50.46%
PBX 21.86%
Washer 11.72%
AV Accy 8.76%
Vital Few Items

32. Layout Design
 It is clear from above analysis that only 20% of material are responsible for
80% of quantity dispatched, thus we need to take proper care in
arranging these material in warehouse so as to have ease of access of
material and assist in fast loading unloading activity
 These materials need to be stored near to dock (loading and unloading
area). Also materials need to be stored in different product bay so as to
have ease of access and prevent mismatch of quantity in different bin
location
32

33. 33
AA12
Misc Misc
AB12
AC16
FR 1 FR 6
AD16
AE16
FR11
AF16
AG16
AH16
AI16
AJ16
AA11
Misc Misc
AB11
AC15
FR 2 FR 7
AD15
AE15
FR12
AF15
AG15
AH15
AI15
AJ15
AA10
Misc Misc
AB10
AC14
FR 3 FR 8
AD14
AE14
FR13
AF14
AG14
AH14
AI14
AJ14
AA09
DVD 1 DVD 3
AB09
AC13
FR 4 FR 9
AD13
AE13
FR14
AF13
AG13
AH13
AI13
AJ13
AA08
DVD 2 DVD 4
AB08
AC12
FR 5 FR 10
AD12
AE12
FR15
AF12
AG12
AH12
AI12
AJ12
AA07
Purifier Puridfier
AB07
AC11
MWO 1 MWO 3
AD11
AE11
FR16
AF11
AG11
AH11
AI11
Pkg AC 1 Pkg AC 2
AJ11
AA06
Purifier Purifier
AB06
AC10
MWO 2 MWO 4
AD10
AE10
WM 1 WM 4
AF10
AG10
WM 7 WM 9
AH10
AI10
WM 11 Pkg AC 3
AJ10
AA05
AB05
AC09
Hifi 1 Hifi 3
AD09
AE09
WM 2 WM 5
AF09
AG09
WM 8 WM 10
AH09
AI09
WM 12 Pkg AC 4
AJ09
AA04
AB04
AC08
Hifi 2 Hifi 4
AD08
AE08
WM 3 WM 6
AF08
AG08
Plasma 1 Plasma 2
AH08
AI08
LCD 16 LCD 18
AJ08
AA03
AB03
AC07
LCD 1 LCD 6
AD07
AE07
LCD 8 LCD 10
AF07
AG07
LCD 12 LCD 14
AH07
AI07
LCD 17 LCD 19
AJ07
AA02
AB02
AC06
LCD 2 LCD 7
AD06
AE06
LCD 9 LCD 11
AF06
AG06
LCD 13 LCD 15
AH06
AI06
LCD 18 LCD 20
AJ06
AA01
AB03
AC05
LCD 3 AC ID 1
AD05
AE05
AC ID 4 AC ID 6
AF05
AG05
AC ID 8 AC ID 10
AH05
AI05
AC ID 12 AC ID 15
AJ05
MiscAreaforStand,TravelBag,PackagingMaterial,ACUnitsetc.
ProposedRack
Space for
Telephone,
Pana beauty,
PBX AV Accy,
Movie,
Projector
other misc SSD
items
OfficeSpace
Misc: Space for other
miscellaneous material,
Aging products, reserve
storage for Type A
material during peek
demand period
Misc
Misc
AC04
LCD 4 AC ID 2
AD04
AE04
AC OD 12 AC OD 13
AF04
AG04
AC OD 14 AC OD 15
AH04
AI04
AC ID 13 AC ID 16
AJ04
AC03
LCD 5 AC ID 3
AD03
AE03
AC ID 5 AC ID 7
AF03
AG03
AC ID 9 AC ID 11
AH03
AI03
AC ID 14 AC ID 17
AJ03
AC02
AC OD 1
AD02
AE02
AC OD 2 AC OD 4
AF02
AG02
AC OD 6 AC OD 8
AH02
AI02
AC OD 10
AJ02
AC01
Reserve Space for
Stacking
AD01
AE01
AC OD 3 AC OD 5
AF01
AG01
AC OD 7 AC OD 9
AH01
AI01
AC OD 11
Reserve Space for
Stacking
AJ01
Dock 05 T1
MiscAreaforStand,TravelBag,PackagingMaterial,ACUnitsetc.
OfficeSpace
Dock 01 T1/T2 Dock 02 T1/T2 Dock 03 T1 Dock 04 T1/T2
AC Indoor
AC Outdoor
LCD?Plasma
Washer
Hifi
MWO
FRZ
Pkg AC
Purifier
DVD
Misc
Reserve Space for
Stacking
File
Link

34.  Stock Count Policy
34
Sr No Item Sum of Total
Cumulative
Quantity
Cumulative
Percentage
ABC
Classification
1 LCD 1083543962 1083543962 30.30% A
2 Room Aircon 920387668 2003931630 56.04% A
3 Washer 233971538 2237903168 62.58% A
4 Broadcast 224780155 2462683323 68.87% A
5 PBX 148313269 2610996592 73.02% A
6 Fridge 116257514 2727254106 76.27% B
7 Movie 108308325 2835562430 79.30% B
8 TEL 106912530 2942474960 82.29% B
9 DLP Projector 102095987 3044570947 85.14% B
10 Plasma Panel 99688294 3144259241 87.93% B
11 MWO 89610520 3233869761 90.44% B
12 LCD Projector 88724221 3322593982 92.92% B
13 Pana Beauty 79815548 3402409530 95.15% B
14 Digital Still 51429495 3453839026 96.59% C
15 CCVE 46839303 3500678329 97.90% C
16 Toughbook 13103176 3513781504 98.26% C
17 HD Com 10950880 3524732385 98.57% C
18 Small HA 9844716 3534577101 98.85% C
19 Packaged Aircon 9306056 3543883157 99.11% C
20 AIO Printer 7701136 3551584293 99.32% C
21 VRF 6042199 3557626492 99.49% C
22 Fax 4686837 3562313329 99.62% C
23 Panaboard 4201441 3566514771 99.74% C
24 Hifi 3312709 3569827479 99.83% C
25 AV Accy 3201196 3573028675 99.92% C
26 DVD 1176985 3574205661 99.95% C
27 Water Purifier 871661 3575077322 99.98% C
3 Washer 233971538 2237903168 62.58% A
4 Broadcast 224780155 2462683323 68.87% A
5 PBX 148313269 2610996592 73.02% A
6 Fridge 116257514 2727254106 76.27% B
7 Movie 108308325 2835562430 79.30% B
8 TEL 106912530 2942474960 82.29% B
9 DLP Projector 102095987 3044570947 85.14% B
10 Plasma Panel 99688294 3144259241 87.93% B
11 MWO 89610520 3233869761 90.44% B
12 LCD Projector 88724221 3322593982 92.92% B
13 Pana Beauty 79815548 3402409530 95.15% B
14 Digital Still 51429495 3453839026 96.59% C
15 CCVE 46839303 3500678329 97.90% C
16 Toughbook 13103176 3513781504 98.26% C
17 HD Com 10950880 3524732385 98.57% C
18 Small HA 9844716 3534577101 98.85% C
19 Packaged Aircon 9306056 3543883157 99.11% C
20 AIO Printer 7701136 3551584293 99.32% C
21 VRF 6042199 3557626492 99.49% C
22 Fax 4686837 3562313329 99.62% C
23 Panaboard 4201441 3566514771 99.74% C
24 Hifi 3312709 3569827479 99.83% C
25 AV Accy 3201196 3573028675 99.92% C
26 DVD 1176985 3574205661 99.95% C
27 Water Purifier 871661 3575077322 99.98% C
28 UA 281503 3575358825 99.99% C
29 Plasma Accy 183886 3575542710 99.99% C
30 Solar Product 154462 3575697172 100.00% C
31 IP Camera 85388 3575782560 100.00% C
32 Plasma 42893 3575825453 100.00% C
33 PPC 13202 3575838655 100.00% C
34 Small KA 251 3575838906 100.00% C
Total 3575838906
Item Class No of Item
A-Class 5
B-Class 8
C- Class 21

35. 35

36. Thus after classification count cycle can be defined for different
category of items:
A Class Item: Daily Stock Count
B Class Item: Weekly Stock Count
C Class Item: Fortnightly Stock Count
36

37. Recommendation and Benefits to
the organisation
Based on Project Study
 Use of Racking system: this will increase space utilisation from current 20% to 50% and
storage volume will increase by 5670 cu.ft
 Storing items in warehouse as per priority basis (Pareto analysis- quantity sold): Will
result in easy location of item and will also reduce loading and unloading time
 Defining Stock count policy based on ABC analysis (value of item sold): This will
reduce time consumed in daily stock count
 Use of bin card system: This will hepl in improving the analysis of stock movement in
terms of Fast Slow Non-Moving Items
37

38. 38
Based on World-class warehousing practices
 Use of barcode system for online updating of stock
 Implementation of light guidance system to assist picking
operation
 Updating volume data in ERP for real time calculation of
space utilisation

39. Conclusion and Future Scope
 This project was a great learning experience for me. This was a great
opportunity as I was exposed to working in a dynamic and challenging
workplace and was fortunate to have a project here.
 By implementing these programs on space utilisation and inventory
management organisation will be able to overcome its problem of
shortage of space and will be able to increase its performance efficiency.
These programs will not only help in increasing efficiency but will also give
monetary benefits in terms of savings on rent paid.
39

40. Future Scope
 On the similar line of space utilisation, racking system can be
implemented in other bin location and other warehouses
 Different layouts can be designed for all different quarters
based on Pareto analysis as further improvement along with
FSN analysis
40

41. Key learning and Difficulties faced
Key Learning
 Knowledge of Warehouse operation
 Implementation of Operations Management tools like Pareto analysis, ABC Analysis
 Logistics Planning
Difficulties Faced
 Sales of not being constant, it was difficult to analyse data and infer conclusion
 No data for FSN analysis was available
 Unavailability of automated material handling equipment
41

42. Thank you
42

43. Questions?
43