IMPROVEMENT OF SUPPLY CHAIN PROCESS OF

ASIAN PAINTS LIMITED

(Pthalic Division, Ankleshwar, Gujarat)

Vinu.T
MBA-Operations and System Management
Christ University Institute of Management
Bangalore
PLANT DETAILS

Name Of The Product Phthalic Anhydride

Month & Year Of Establishment March 1990

No. Of Employees 62

Production capacity 2100 MT/Month

Name Of The Raw Materials Ortho Xylene & Oxygen From Air

Name Of The By Products Maleic Acid , Light Ends & Heavy Ends

Honours ISO-9000 , 14000 & 18000

 PROBLEM DEFINITION

distinct competency , implementation of best process

cost , improve delivery time and customer satisfaction

OBJECTIVE
ective of the study is to understand and improve the
sian Paints , Phthalic Division .

SCOPE
n be used to get an overall idea of the operations i
METHODOLOGY

•Collection of dispatch data for the

last three years .
•
•Analysis of the collected data .
•
•Interaction with the employees in the
plant .
•
•Collection of data from the Container
Corporation India Limited
•
•Interaction with a marketing
consultant .
•
•Analysis of the previous year reports .
CAUSE AND EFFECT DIAGRAM
 LOGISTICS OF FINISHED GOODS

g goods through Indian Railway goods trains .

ng the vendor and signing of new contract .

ute to the destinations .

eight .

ic through Container Corporation of India

ited .
 CONTAINER CORPORATION OF INDIA LIMITD

•Sole container freight subsidiary of Indian Railw

•
•58 terminal including 49 EXIM .
•
•Strong fleet of 8421 wagons operating throughout .
•
•Various facilities like bonded warehouse , contain
•
•Custom clearance , transit warehousing .
•
•Cold chain business .
 DIFFERENCE IN THE RATES

KASNA PLANT

Road Freight Rate Rail Freight Rate

9MT 16MT 17.5MT 28MT
Rs.25640 Rs.35600 Rs.34579 Rs.43849

PATANCHERU PLANT

Road Freight Rate Rail Freight Rate

9MT 16MT 17.5MT 28MT
Rs.20210 Rs.28660 Rs.34667 Rs.40660
 PATANCHERU PLANT

Total Cost for transporting FG to Kasna Plant

16MT trucks = Rs . 10976780
Total Cost for transporting FG to Kasna Plant
28MT container = Rs . 8904540

ANALYSIS DIFFERENCE = Rs . 2 , 072 , 240

KASNA PLANT

Total Cost for transporting FG to Kasna Plan

16MT trucks = Rs . 6035757
Total Cost for transporting FG to Kasna Plan
28MT container = Rs . 4247313

DIFFERENCE = Rs . 1 , 788 , 444

 ENGINEERING STORE

•Segmentation of the store .

•
•Rack system .
•
•Tagging methodology .
•
•Purchasing procedure .
•
•Reservation .
 SLOW MOVING STOCKS

e of the material in the store = Rs . 19890330 . 74

e of the Slow moving Material in the store = Rs . 1908

ys of movement of Slow moving materials

= 1471 days .

mber years = 4 years

 PLANT ENGINEERING

Consumption from Grid = 100kwatt

Cost of 1 kwatt = Rs . 6
Total Cost = 100kwatt * 24 hr * 365
* Rs . 6
= Rs . 5256000 per

Sophisticated steam turbines are a

in the market which can generate t
output according to the recommenda
and save about Rs . 52 . 56 lakhs per
annum for the company .
 FINDINGS
epends on road freight for the transportation of fin
costly .

e company is 75MT per day and enough store room spac

of finished goods .

transportation of finished goods can result in a sa

moving stocks worth millions of rupees and is there

ars .

ading works are done manually at bonded store room .

d by the electricity from Steam turbine as well as f

ctricity Board .
hthalic Anhydride ( finished goods ) is continuous .
 SUGGESTIONS
ENGINEERING STORE
LOGISTICS

lementation of •Resource Sharing System .

l freight for logistics
•
•Resale of Materials .
FG to distant destination
•
•Forecasting methodology .
•
•Avoid intuition on purchase
PLANT ENGINEERING
•
•Better demand supply matching .
plementing a Sophisticated
eam turbines to reduce• the
•Automation of bonded store roo
age of current from grid
•