Team BLUESTONE

Background
Research
Case overview
Sanitary napkin is manufactured in four locations:
North
East
West and
South
Each manufacturing region traditionally
Theory serves
of constraintsregionalDynamic
C&FA demand,
Buffer Management
attached to it.&Each
Aggregate
manufacturing unit has its own cost
Inventory
of manufacturing
transportation
and total available capacity.

Objective
Assumptions
Manufacturing &
Following are the KPIs (Key Performance Indicator)
Distribution
under Theory Of Constraintschannel network
Assuming
Lean
ManagementDynamic
routing strategy, transportation waste
We are
4 units in West, 3 units in North, 2 Units in East and 3
required to present quality product at lowest possible
optimization
Throughput
(T) - the rate at which in
money
is generated
distribution
system
cost
Units in South
through sales or interest.
Network(I)
Demand pattern of 1.5 units in West, 3 units in North, 2
optimization
model invested
which should
Inventory
- all money
inallocate
thingsrespective
intended for
CFA demand to one of the manufacturing location considering
units in East and 4 units in South
sale. It lowest
includes
totally
variable
costs
such
as
material,
plus
total delivered system cost
resources used in production such as land, machines,
No seasonality in demand and equal demand at all C&Fas
Simulation
Model of Sanpro manufacturing and distribution
in a region
trucks,
and computers.
Collaborative
Physical
LogisticsShared Logistics, Shared
network to optimize TDC (total delivery cost)
Operating
Expense (OE) - All money
spent
turning
Infrastructure, Shared Information
Transportation cost for transporting Sanpro from plants
Investment
into
Throughput.
includes
Potential
opportunities
to makeItMulund
plant direct
most labor, rent,
to C&FA Rs. 10000 per 300 KM for 0.5
and labor,
competitive
plus selling,
Sanpro manufacturing
general, and
siteadministrative costs.
Million Napkins

Background Research
Dynamic Buffer Management

Aggregate Inventory Transportation

Centralized Warehousing

By monitoring the buffer

penetration at each stock
location for each product, we
can question the buffer size
stock maintained

Buffer penetration: It is defined to be the number of missing units

from the buffer divided by the buffer size. For example: If the buffer
maintained for a particular SKU at any given location is 100 and
currently it has 60 units in pipeline, then the buffer penetration is 60%

Dynamic Buffer
Management (DBM) monitors
and adjust the buffer sizes of
a particular SKU at a given
location . This helps in
maintaining right amount of
inventory at any given
location, thereby reducing
inventory holding cost and
also distribution cost incurred
for transportation of this
excess inventory.

The buffer size is divided into equal zones. The buffer penetration is
monitored on daily basis and a color code is designated to each value
accordingly. The various color codes are:
less than 33% buffer penetration
Green
Between 33% and 67% buffer penetration
Yellow
Between 67% and 100% buffer penetration
Red
100% buffer penetration
Black
Inferences:
Green zone: Buffer stock is too high for existing demand and is
suggested to lower it by 33%
Red zone: Buffer stock is too low for existing demand and is
suggested to raise it by 33%

Background Research
Lean Management- Dynamic routing strategy, transportation waste in distribution system
Dynamic Routing Strategy
The location of various C&FA is already available and a routing strategy with minimum time is sought. Unlike conventional
models, the travel time on any link is considered to be stochastic and varies between an upper and lower limit according to
some probability distribution as well as time. The model here considers both the capacity of the links and the congestion on
the links.
It uses the shortest path algorithm to route the vehicles and recognizes delays caused by queuing in calculating the travel
cost of any particular route. The model has the flexibility for a vehicle to change its route at any time depending on network
conditions.

Lean Distribution & Transportation: Areas of Waste

Identified
Transportation: Movement of things (material, paperwork, supplies, vehicle)redundant moving of things. Optimizing route followed by drivers
Inventory: Any activity that results in excess or lack of inventory being positioned than needed or in a location where needed.
Movement: Walking to get loading/unloading/tools and equipment. Ergonomic design to minimize strain to human body and improve efficiency.
Waiting / delays: People, systems and material delays due to badly integrated processes. Delays trucks reaching destinations, customs
clearance processes, waiting for documentation approvals or goods that are not ready to be loaded in shipping areas are some examples.
Over processing: Doing more than the customer is willing to pay for.
Defects: Activities that cause rework, returns or adjustments, such as orders delivered at wrong facilities, incorrect documentation etc.

Background Research
Collaborative Physical Logistics- Shared Logistics, Shared Infrastructure, Shared Information
This solution area is defined as the sharing of physical
infrastructure such as warehouse storage and transportation
vehicles in order to simplify the overall physical footprint, and to
consolidate flows to improve service and asset utilization.
Sharing and collaboration can take place both between and
across various nodes of competitive supply chains and it can apply
to existing infrastructure or to newly built collaborative
infrastructure. Examples include:
Shared
transport:
A collaborative
approach
between
manufacturers, between retailers, and between manufacturers and
retailers and possibly a third-party logistics provider to share
transport; it involves sharing load planning and truck capacity.
Shared physical infrastructures: Manufacturers, retailers and
possibly third-party logistics providers collaborate to share
warehouses and distribution centers for activities such as storing
goods or cross-docking.
Shared information: Sharing information to manage flows among
manufacturers, retailers and third-party logistics providers in order
to combine deliveries from more than one source towards multiple
stores via a warehouse or distribution centre.

Shared Transportation

North region
MANUFACTURER 1
Companies
who
adopted
Collaborative
MANUFACTURER 2collaborative physical logistics:
CFAs/Warehouse
Carrefour,
MANUFACTURERBndicta,
3
Nutrimaine,
Lustucru,
FM Logistics
East region
A multi-player approach has
resulted in benefits such as a 34%
MANUFACTURER 1increase in average delivery
frequency and a 115% increase in
Collaborative
average load per delivery.
MANUFACTURER 2
CFAs/Warehouse

Week 1
Understanding current
working practices

Plan Of Action

Buffer Stock Maintenance practices

currently at CF&A
Studying loading, unloading,
documentation taxation dealings, Week 5&6
human body involvement,
Testing of
inspection
methods
and
time
spent
Transportation
Week 3
etc processes
model developed

Capturing variations
in Demand and
Manufacturing unit
selection pattern by
applied Model

Elimating waste
identified to
improve
efficiency

Testing model developed in practical

scenario and recording observations
so made
Applying Lean principles to eliminate
identified waste activities

Evaluation of various costs of

previous months associated to
distribution and analysing variation
Quantity being ordered in past
months and route followed by
trucks analysis

Week 2
Collection of
data for existing
Network model

Week 4

Developing
alternatives for
Distribution
Studying Demand variations
in certain
period and analyzingNetwork
demand model
allocation by different CFAs to plants

After studying and collecting relevant

information about existing distribution
network the alternatives will be
explored by referring competitors
practices, research articles, non direct
competitors carry out

Week 6
If required,
working on
Dynamic transit
of Transportation
Vehicles

In this Stage, Industry application

based Dynamic routing software can
be used which will direct the vehicles
ONLINE and optimize the
transportation path

Potential opportunities to make Mulund plant most

Refrences
competitive Sanpro
manufacturing site
For making Mulund Plant most competitive we need to analyze various constraints under which plant
operate, as well as thorough As-Is- Analysis is needed. Since core problems are needed to be determined
and eliminated, We propose a very unique and highly effective tool given by Dr. Eliyahu M. Goldratt. Called
Thinking Process. By determining the true core problem in a situation, it is helpful to write the current state
in a diagram format. These cause and effect relationship are used to uncover the core problem associated
with the undesirable Effects (UDEs). The core problem is also the weak link in the operation when it
concerns obtaining the goal of the company.

Thank You

Current Reality
Dr. Eliyahu M. Goldratt
Tree developed

the Thinking Process:

This
diagram shows a logical explanation of the

This
is apractice
series ofand
steps
used to
situation. With
logically
based common
locate
the
constraint
(What
to
sense, the major UDEs can be interconnected through
Change?)
cause
and effect relationships in a Current Reality Tree
Determine
(CRT).
Creating this
tool leads
to the
the solution
(What
to process of
determining
to Change.
changeWhat
to?) and
This
analysis
method the
alsosolution
provides a tool to
How
to implement
understand
existing
of the cause. It does this
(How tothe
make
the nature
change?).
bydiscussing and scrutinizing our basic intuitive sense,
These steps are actually referred to
which exists in our environment. It is somewhat different
themanagement
Thinking Process.
fromasthe
approach of correlation and
classification.