Logistics

 

 

Ashutosh K Tripathy Roll No.  –MP13017

Idea:To minimize the transportation cost of gear boxes from Jamshedpur to Lucknow and Pune .The study is done for recognizing the opportuniti opportunities es available within the scope for better space utilization and alternate ideas for supply chain and logistics. The idea is primarily applicable for the transportation of gear boxes from TML Drivelines, Jamshedpur to TML Lucknow. The same idea will be implemented for transportation of gear boxes from Jamshedpur to Pune, after the success of the plan for Lucknow. In first phase the idea is to reduce the transportation cost of gear boxes to outstation customers. Taking it forward in second phase planning is to come up with new cost effective idea for local customers and other outstation customers too.

Introduction:TML Drivelines caters predominantly to the needs of M&HCV market segment of Tata Motors. TML drivelines manufactures Gear Boxes and Axle for M& HCV segment .TML Drivelines caters to almost 98% of the volume requirement of TML Lucknow. Leveraging Leveraging & enhancing the Key Strategic Advantages ‘Close Relationship with Tata Motors as a customer with Assurance of volumes’ volu mes’ and ‘Ability to deliver Axles & Transmissions at low cost’; and addressing the identified the  identified key strategic challenges, have been identified as drivers for TML Drivelines’ long term sustainab sustainability. ility.

 

The major contributor to this is the requirement of Gear Boxes at TML Lucknow. The volumes produced at TML Lucknow are 40% of the total M&HCV of TML. TML Drivelines’ future growth is largely governed by Tata Motors engagement with it. This is manifested by the ‘assurance ‘assurance of volumes’ volumes’ and ‘the ‘the major contributor to this is TML Lucknow. One of the core competencies of TML Drivelines is “ability to manufacture least cost gear boxes”. The proposed idea will add value to this, as it will reduce the cost (by reducing the transportation cost).  

Different from existing:Existing:-

Currently 40 feet semi high trailers are used for transportation of gear boxes from Jamshedpur to Lucknow. For Lucknow transportation Scope of work is defined as keeping the cost of transportation same and increase the no. of gear boxes in trip. For Pune the scope is defined as use of LPT 1109 or any other heavy vehicle which can carry gear boxes and having facility of side wise loading.

At present we use 40 feet semi high trailer for transportation of gear boxes from Jamshedpur to TML Lucknow. The trailer is not used for its 100% load carrying capacity. At present this trailer can carry carry at max 84 nos. of gear boxes in a trip. In this condition 3 to 4 feet useful length of the trailer remains unused due to the taper shape (step available) (refer Photo 1). The presences of this step prevent us to keep an additional row of pallets. In the proposal, the taper shape will be replaced by the flat space available, which can be used to keep one additional row of pallets. Current condition can be manifested as - “Transporting a space which does not carry any Load”.   As a result the space and load carrying capacity both

remains under-utilized. In addition, this underutilization of space creates the shortage of gear boxes at TML Lucknow. This inclination also creates the problem during loading and unloading of Gear Box pallets.

 

 

Photo 1:- Existing practice. (Use of 40 feet semi high trailer)

Proposed:-

In the proposed scenario we have to use 40 feet high bed trailer. This 40 feet high bed trailer will not have the taper inclined space. The availability of such trailers will be worked out after floating the enquiry and consulting the service providers. Considering the requirement of 2 to 4 trailers per day, depending on the volume of production, it can be assigned to any potential transporter for the sough type of trailers. In the proposed situation there will be an increase in the no. of gear boxes to be transported in a trip. I.e. we can dispatch more gear boxes in same cost. This will ensure 100% space utilization as there will not be the inclined space as it will be converted to a flat bed. This flat portion can now be utilized to keep an additional load (Gear box pallets). Figure 1 shows the average load (average no. of gear boxes per trailer) which the trailers will carry in proposed scenario. It also shows the trend for last 9 years. There is a clear cut increase increase in the ne next xt 5 years. In the fig1 fig1.. The projection for next 5 years is plotted after talking to different transporters and is based on the availability of the proposed flatbed trailers.  By FY 2018-2019 it can be expected that 100% trailers used will be flatbed only which can carry at max 108 nos. of gear boxes in a trip. 

 

110 105 102

100 96

95 90 85 80

104

90

78

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110 108 105 100 95 90 85 80

75

75

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65

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60

Existing GB Per Trailer Proposed GB Per Trailer

  Fig: 1 Existing and Proposed Loading pattern of trailers for Lucknow dispatch Of Gear Boxes

Cost of Installation:-

In the conception stage it is assumed that there will not be any additional cost for the proposed state. But it is expected the the availability of the 40 feet flatbed trailers may be a point which needs to be discussed with the service provider. At present lot of 40 feet flatbed trailers are plying but the work regarding the assurance in terms of business needs to be ensured to service providers. It will motivate lot of transporters to work for the availability of 40 feet flatbed trailers. There can be an open float of enquire for the proposed requirement. Looking at the current market it is expected that lot of players will be interested in investing for increasing the no. of the required type of carriers. At present based on preliminary investigation, lot of transporters are available who are having either 2 or 3 such trailers which were improvised for some other need.

 

 

Long run cost saving:-

Calculating the cost saving with respect to 5 years vehicle projection is plotted below. Fig. 2 shows that the cost of transportation of a unit gear box varied from Rs 639 to Rs 679 in last 9 financial years. Calculating Calculatin g the cost of transportati transportation on for the gear boxes for next 5 years (refer fig. 1), it will come down to Rs 510 per gear box. The proposal will bring down the unit Gear box transportation from Rs 639 to Rs 589 from current financial year. It is again based on the availability of flatbed trailers.

691

691

679

671

671 663

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654 646 646

651

639639 639 639

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611 591

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571 551

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541

531 520 510

511 491

491    6    0      5    0    y    F

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   8    1      7    1    y    F

   9    1      8    1    y    F

Existing Cost Per GB(Rs.) Proposed cost per GB(Rs.)

Fig 2: Cost of transporting unit gear box from Jamshedpur to TML Lucknow.

 

The savings per gear box is plotted in fig. 3. Considering the total volume projection (volume of M& HCV at TML Lucknow) there will be saving of Rs 16 lacs in Fy 14-15. This saving will go up to Rs 27Lacs. By the end of FY 18-19.

Saving(Rs. Per GB)

160 140

139

120

120 110

100 80

78

60 40

41

20 0 Fy 14-15

Fy 15-16

Fy 16-17

Fy 17-18

Fy 18-19 Saving(Rs. Per…

Fig 3: Saving out of transportation of gear boxes in next 5 FYs.

Environmental Environment al and social benefits:-

For environment there will be reduction in fuel consumption. The reduction in carbon foot print in next 5 Fy is plotted below. The fig 4 shows that the co2 emission will go down from 4.81 KG per gear box transported to 3.47 KG per gear box.(Assumption box .(Assumption 1liter diesel emits 2.68 KG of Co2) For society it will create more jobs as it will attract more manpower to create more flatbed trailers. Moreover it will also ensure the safe transportation of gear box pallets from Jamshedpur to TML Lucknow.

 

The reduction in the transportation cost will also bring internal customer delight. It will also ensure the delivery of more gear boxes in a trip, which will ensure the vehicle production as per plan at TML Lucknow.

4.67

4.75 4.69

4.81 4.69

4.63 4.58 4.58

4.67

4.524.52 4.52 4.52

4.47

4.47

4.27

4.27 4.17

4.07

4.07 3.91

3.87

3.68 3.67 3.61

3.67 3.47

3.87

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3.47

   7    1      6    1    y    F

   8    1      7    1    y    F

   9    1      8    1    y    F

3.47

Co2 Emission per GB transported

Fig 4: CO2 emission for transportation of one gear box from Jamshedpur to Lucknow.