INTERNSHIP REPORT ON ´COST MINIMISATION BY REDUCING THE NO.OF TRIPS IN FINAL PRODUCT SUPPLY TO CUSTOMER ENDµ Under the Guidance Of Mr. Balkrishan Bhatt (Sr. Production Manager, Supply Chain) Caparo Maruti Ltd., Gurgaon Submitted By: Harish Saini MBA (Manufacturing) ROLL No.50702504 CERTIFICATE This is to certify that Mr. Harish Saini from L.M. Thapar School of Management, Patiala has undergone & completed summer training course at Caparo Maruti Ltd, Gurgaon on ³Supply Chain Management´ under the guidance of Mr. Balkrishan Bhatt from 15 May, 2009-15 July, 2009. His performance was excellent. Mr. Rattan Yadav (Assistant General Manager, H.R.) ACKNOWLEDGEMENT I express my deep sense of gratitude to Caparo Maruti Ltd for providing me valuable insights on Company¶s Supply Chain practices .I appreciate Mr. Balkrishan Bhatt (Senior Manager), Production and Supply Chain for their constructive guidance on the project titled ³Cost Minimization by reducing the no. of Trips in Final Product Supply to Customer End´. My sincere thanks to Mr. Suresh Yadav (Production Head) who was kind enough to familiarize me to plant¶s operations. CONTENTS Title Sr.no. 1 2-5 6-15 16-18 19-22 23-25 26 27 28-31 32-36 37 1. Introduction to Supply Chain 2. Supply Chain Management (SCM ) 3. Caparo Group 4. Caparo Maruti Ltd 5. Stamping Operations at Gurgaon 6. Gurgaon¶s Manufacturing Plant 7. Project Highlights 8. Supply Chain Structure at Caparo Maruti Ltd 9. Shortcomings to Supply Chain 10. Problem Breakdown 11. Savings to Supply Chain Structure . Supply Chain Management is a strategy through which such integration can be achieved. transformation of these materials into intermediate and finished products. Purchasing contracts are often negotiated with very little information beyond historical buying patterns. and the purchasing organizations along the supply chain independently. The result of these factors is that there is not a single. RAW MATERIALS FINISHED GOODS DISTRIBUTORS CUSTOMERS Traditionally. Clearly. planning. and the distribution of these finished products to customers.¶¶ For Example: A Supply Chain for a Single Product includes. manufacturing. integrated plan for the organization. distribution. there is a need for a mechanism through which these different functions can be incorporated together. marketing.INTRODUCTION WHAT IS SUPPLY CHAIN? A supply chain is:³a network of facilities and distribution options that performs the functions of procurement of materials. The term supply chain management was coined by Keith Oliver. Vehicle routing analysis.´ Importantly.´ In essence. it also includes³Coordination and collaboration with channel partners. Third-party service providers. . Intermediaries. Supply Chain Management integrates supply and demand management within and across Companies The primary objective of supply chain management is to fulfill customer demands through the most efficient use of resources. ³Supply chain management spans all movement and storage of raw materials. which can be suppliers. 1982. implementing and controlling the operations of the supply chain with the purpose to satisfy customer requirements as efficiently as possible. inventory and labour. Implementing JIT techniques to optimize manufacturing flow Using Location/Allocation.SUPPLY CHAIN MANAGEMENT Supply chain management (SCM) is the process of planning. including distribution capacity. and finished goods from point-of-origin to point-of-consumption. work-in-process inventory. Dynamic programming and traditional logistics optimization to maximize the efficiency of the distribution side. and Customers. Various aspects of optimizing the supply chain include: Negotiating with suppliers to eliminate bottlenecks. Production scheduling for each manufacturing facility in the supply chain (minute by minute). location. location. including the number. OPERATIONAL LEVEL Daily production and distribution planning. and planning process definition.FUNCTIONS OF SCM: Supply chain activities can be grouped into following three levels: 1. routes. locations. and size of warehouses. Inventory decisions. coordinating the demand forecast of all customers and sharing the forecast with all suppliers. 3. creating communication channels for critical information and operational improvements such as cross docking. . distribution centers and facilities. including contracting. and quality of inventory. TACTICAL LEVEL Production decisions. including all nodes in the supply chain. and customers. Where to make and what to make or buy decisions 2. including frequency. Strategic partnership with suppliers. and contracting. and third-party logistics. direct shipping. Transportation strategy. including quantity. Demand planning and forecasting. scheduling. distributors. STRATEGIC LEVEL Strategic network optimization. The location of facilities involves a commitment of resources to a long-term plan. including all fulfillment activities and transportation to customers. These decisions include the construction of the master production schedules. and which plants to produce them in. cost and level of service. These decisions are of great significance to a firm since they represent the basic strategy for accessing customer markets. Operational decisions focus on detailed production scheduling. and DC's to customer markets. Inbound operations. number. so are the possible paths by which the product flows through to the final customer. PRODUCTION DECISIONS The strategic decisions include what products to produce. and equipment maintenance. Production operations. scheduling production on machines. plants to DC's. Once the size. including the consumption of materials and flow of finished goods. allocation of suppliers to plants. and location of these are determined. and will have a considerable impact on revenue. 2. SUPPLY CHAIN DECISIONS: There are four major decision areas in supply chain management: 1. including transportation from suppliers and receiving inventory. and sourcing points is the natural first step in creating a supply chain. Outbound operations. . LOCATION DECISIONS The geographic placement of production facilities. stocking points. Inventories exist at every stage of the supply chain as either raw material. Shipment sizes. Their primary purpose is to buffer against any uncertainty that might exist in the supply chain.3. These include deployment strategies (push versus pull). but they necessitate holding relatively large amounts of inventory to buffer against the inherent uncertainty associated with them. since the best choice of mode is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. Since transportation is more than 30 percent of the logistics costs. TRANSPORTATION DECISIONS The mode choice aspect of these decisions is the more strategic ones. While air shipments may be fast. and warrant lesser safety stocks. These levels are critical. Therefore customer service levels and geographic location play vital roles in such decisions. INVENTORY DECISIONS These are the means by which inventories are managed. since they are primary determinants of customer service levels. These are closely linked to the inventory decisions. at each stocking location. Meanwhile shipping by sea or rail may be much cheaper. routing and scheduling of equipment are key in effective management of the firm's transport strategy. reliable. semi-finished or finished goods. 4. they are expensive. . and setting safety stock levels. operating efficiently makes good economic sense. control policies-the determination of the optimal levels of order quantities and reorder points. Caparo¶s development in India began in 1994 with a joint venture with India¶s largest car manufacturer. Maruti Udyog. North America. . hotels. The group employs more than 8. Foundry and Research Development. It offers complete lifecycle solutions for automotive systems. Caparo¶s operations are located at over 60 sites in the UK. of values and of human effort. India. Fastening and Tubing facilities. Caparo¶s Indian operations currently employ over 5. advanced composites.it is a story of people. The group was founded in 1968 by Indian born British Industrialist. the group¶s wider activities encompass materials testing services. Chairman and Founder Caparo is a fast growing global manufacturing group with a 1bn Euro turnover. assemblies.Lord Paul. This rapid expansion continues today both via Greenfield projects and planned acquisitions. The group has developed three entities in India: Caparo Maruti. Above all it is a story of faith and family" . who remains Chairman. Lord Paul of Marylebone.000 people directly. film distribution and private equity investment.CAPARO GROUP "Caparo is more than a successful business enterprise . With business interests predominantly in the manufacture of steel. The Stampings. automotive and general engineering products. modules and components.000 people worldwide. Poland and Spain. and many others indirectly. soon to be complemented by upcoming facilities for Forging. CAPARO INDIA A wholly owned subsidiary of Caparo UK. Caparo Engineering India PVT Ltd (CEIPL) and Caparo India Private Ltd. Headquartered in London. fortitude and ability.ETHICS Caparo is something more than a successful enterprise«it is a story of people. truth and integrity . only bad management ³What I like is people who are proud of what they do´ Lord Paul Our aim is to always be in the top 10% of performers (measured against our industry competitors) Success will happen so long as you work hard. with integrity Find excitement in industry and your own job in it Cherish the enduring values of fidelity. of values and of human effort. nothing else is good enough Never abandon hope There is no such thing as bad business. Working together we can build Caparo with resolution. our suppliers. The goodwill and confidence of Caparo employees. our customers and our managers is the bedrock of our business Always aspire for excellence. India:. acquire the sheet metal business of IAL 11 Caparo T1 smashes track record at Dubai Autodrome .HISTORY Natural Gas Tubes starts making spiral weld tubes at Huntingdon First year sales £14. Buy back public 20%.becomes Caparo Industries 1968 December 31 1978 November 16 1980 December 31 1984 December 31 Acquire Wrexham Wire now Caparo Wire 1980 December 31 Acquire control of quoted public company LK Industrial Investments .Caparo Fasteners constructing new plant in Chopanki 2005 December 31 (RN). India . Indira Gandhi Acquire control of quoted public company LK Industrial Investments .Halol and Bawal plants established. new pressing plant commences production 2004 December 31 Caparo Maruti. India 2007 January 2008 July 18 Caparo Engineering India Private Ltd.000 Tredegar Spiral Weld Mill opened by late Prime Minister of India.Caparo Engineering expansion in Pithampur (NP) and new plant in Greater Noida (UP) 2006 February 01 Creation of Vehicle Products division 2006 November 03 Duke of York launches Caparo's 120 acre site in Chennai. Mrs. 2002 December 31 2002 Summary : Caparo Engineering India Private Ltd Pithampur.becomes Caparo Industries 1991 December 31 Caparo Industries goes private. aerospace. a grouping of Tier 1 component design. From an initial joint venture with the major Indian car manufacturer Maruti Udyog in 1994. but also established Caparo customers worldwide where Caparo will continue to provide local service and support. which showcases many of Caparo¶s innovative new products and processes in this sector. This has been highlighted by the launch of the Caparo T1 high performance sports car in 2006. Geographically. engineering and manufacturing companies providing advanced solutions to the automotive. Caparo have established a wide range of businesses and now operate on 22 sites in India and plans are in place to develop a further 9. military and motor sport markets is just one of the key initiatives being developed within the group. Furthermore the creation of Caparo Testing Technologies. Caparo¶s plans to create a leading automotive components manufacturing group in India are well advanced.S FUTURE An expansion into automotive and aerospace markets. whilst maintaining and developing the steel and engineering business. a group of businesses specializing in comprehensive Destructive and Non-Destructive Testing (NDT) services will provide support to the aerospace industry and offer a valuable service to other Caparo group companies. is a key strategy for the group. . Caparo India¶s activities will serve not only the regional automotive sector. with the benefits of Asian manufacturing. The development of Caparo Vehicle Products. film distribution. research and development centre and stampings facility. y ENGINEERING Caparo Engineering has continued to develop and grow strongly and is reaping the benefits of its size and the cross fertilization of ideas from the different subsidiaries and the adoption of best practices. which houses a forge. The 120 acre Chennai site. And Caparo is still growing. was inaugurated in October 2007. With business interests mainly in the manufacture of steel.COMPANIES The Caparo group is a collection of over 40 companies operating on over 60 sites in the UK. foundry. y INNOVATION In pursuit of commercializing innovative inventive ideas. The Caparo Innovation Centre is an imaginative new approach to turning product ideas into business realities. the group's wider activities encompass materials testing. India. Further expansion into this market is part of Caparo¶s ongoing commercial strategy. hotels and bespoke furniture. Caparo established µThe Caparo Innovation Centre¶ at the beginning of 2003 as collaboration between Caparo plc and the University of Wolverhampton. India ± Caparo Engineering India Private Ltd (CEIPL): The Industry manufactures stampings and fasteners for the automotive and general engineering markets. The company continues to identify appropriate acquisitions in niche manufacturing. . In 2006 alone the group acquired 22 companies. automotive and general engineering products. This range of lightweight mounts is compact enough to be used in a variety of aerospace applications. North America. Spain. y AEROSPACE The Caparo group companies offer the aerospace industry a diverse range of solutions. Products supplied to the aerospace market include Anti Shock Vibration mounts from Caparo Dynamics. Canada and Dubai. Inc.y INVESTMENT Caparo group has invested in a diverse portfolio of companies from film distribution to private equity investment. Film 24. Hapax and Gordon Murray Design. Core Capital. India ± Caparo Maruti Ltd India ± Caparo Engineering India Private Ltd (CEIPL) y STEEL PRODUCTS Caparo¶s steel operations span the UK.Bull Moose Tube Company India ± Steel Tubes India. aerospace. y VEHICLE PRODUCTS Caparo Vehicle Products (CVP) is a grouping of innovative Tier 1 component design. engineering and manufacturing companies providing advanced solutions to the automotive. y LEISURE Caparo Hotels is a management and investment company which currently operates four hotels in Southern and Central England. North America and more recently India. Dewas . The Companies are as follows: North America . The Companies are AV pictures.Caparo Vehicle Components. military and motor sport markets. UK ± Caparo Steel Products Ltd North America . GLOBAL PRESENCE: . CUSTOMERS: . . . COMPANY FOCUS (STUDIO CAPARO) Studio Caparo. weld assemblies and closures supplier to Maruti Suzuki (India) and General Motors (India). which transforms into a sideboard in seconds. and the quirky µStack¶ drawer concept. They serve in the fields of Stamping die. the challenging Braemar Seascope. an acoustic canopy which reflects sound back into the building. Maruti Udyog Ltd ( Manufacturers of Automotive body panels). quality products that showcase a first class design pedigree has been realized.Formed in 1994 as a joint venture with India¶s largest car manufacturer. the ingenious smart board dining table. the London based provider of design-led manufacturing solutions has now been trading for over a year. developed by upcoming designer Shay Alkalay. Panel checker & Welding jig designing for sheet-metal parts. The Company operates from three sites in India: Gurgaon. Even in this short period. Recent projects completed by Studio Caparo include the innovative line of furniture created for APRRO. Halol and Bawal. the company's aim to produce high-concept.CAPARO MARUTI LTD-INDIA Caparo Maruti Limited (CML) is a world-class Tier1 sheet metal stamping. . DASH: CML is the manufacturer of Dash assy parts for following models for Maruti Udyog Limited (India) ± 800cc car Zen Esteem Wagon-r Alto Versa This part is critical for the mounting of air-conditioner units and engines and for the prevention of water entering into the vehicle. This part is critical for spot strength as the body of the vehicle is welded to it. .PRODUCT LINE CHASSIS: CML is making auto chassis for Omni model for Maruti Udyog Limited. These parts are commonly called the firewall and they separate the engine chamber from the driver chamber. Facilities at the plant include a press shop. hemming shop. weld shop and a quality control laboratory. this is probably the most important element in an automobile. This part is critical for mounting of steering wheel & for prevention of water into the vehicle. DOOR ASSEMBLY PARTS: Caparo Maruti manufactures complete doors for General Motor India¶s MUV. Aesthetically. . functionally and from the safety standpoint.QUARTER LINE ASSEMBLY: CML is the manufacturer and supplier of this assy for following models of Maruti Limited (India) ± 800 CC car Alto COWL UPPER ASSEMBLY: CML is the manufacturer for Maruti of Cowl upper assys parts for the Zen model. die spotting press. long members. Caparo India¶s stamping operations are now spread across several hi-tech facilities in India. . It has developed capabilities to supply complete body-in-white systems to OEMs like Tata motors ± a skill set unmatched in the Indian industry. It is the only supplier in India possessing capabilities to meet all stamping & stamping assembly requirements of OEMs. The company¶s wide range of stamping products include body parts.STAMPING OPERATIONS (GURGAON) OVERVIEW: Caparo India specializes in providing complete Steel & Aluminum metal stamping solutions for a variety of applications. brackets. Caparo India is also strongly focused on developing technologies to get into Advanced Composite Materials. reinforcements. Starting right from the Process design & development stage to providing tools. frame add-on parts. and other general stampings. chassis parts.perhaps the technology most likely to replace sheets metal over the next 7-10 years. migration to mass production & effective delivery management. the Company offers tailor-made solutions to customers. Having started with a single unit at Gurgaon. The plants in Pune & Jamshedpur were acquired in 2007 & are critical to developing business with Tata Motors.MANUFACTURING PLANTS: Caparo India stamping operations are currently based out of 11 plants with 3 new plants under construction . Gurgaon Bawal Greater Noida Pithampur (Indore) .Caparo India¶s facility in Greater Noida. primarily services Honda Siel while the Pithampur plant is dedicated largely to Eicher motors & Force Man .Halol has been set up mainly for General Motors & the Gurgaon & Bawl facilities service Maruti. Chennai CEIPL CML. Halol Jamshedpur . PRODUCTS: Outer Body Panel Large Inner Panel Reinforcements Brackets Frame add-on parts Cross members and Chassis Parts General Stampings o o o o o o o . Hood inner .GURGAONS MANUFACTURING PLANT Operational since .Floor panels.5*1.Feb 1996 Total Area . three presses of 400 T each.12. Investment .INR 100 cr Man power employed .100 sq.8 meters Products manufactured are Dash Panels .m Capacity . Quarter Line .2.Front member & Door inner FACILITIES: Automotive Press Shop Die Spotting Press Car Wield Shop y Projection wielding stations y Drawn-Arc wielding stations y Spot wielding stations .m Built up Area . one press of 110T & 80T Bed size of all presses is 2.4 mn line strokes p.330 employees PLANT HIGHLIGHTS: Fully-automatic press line consisting one press of 800T.600 sq.a.5. boot lids . Caparo India is making long members for Eicher Motors at Pithampur plant. Tavera.members .pillars . High Tensil parts-They are used by OEMs to lend strength & stiffness with a favorable mass to cost ratio. Long Members-They are the members on which the complete Chassis & body of Commercial vehicles rest.APPLICATIONS: Skin Parts. Caparo has pioneered this concept in India & supplies 15 such parts to Honda. Caparo is manufacturing complete doors for General Motors India¶s MUV.Caparo India manufactures all kinds of skin parts such as outer panels & inner panels in various sizes (t=0.body frames .5-0. .floors etc through a combination of processes like welding & adding nuts & bolts.6 mm) At present. Assembly Systems-This involves assembling the various body parts including Frames . Body-In-White Systems-Caparo has built capabilities for complete body in white systems that include side panels .seat components etc. n o.RH/LH Panel dash Dash side .LH FFF-RH FWHO-RH/LH FFR-LH FFR-RH Panel Dash Panel Back Tunnel .RH/LH Rear quarter inner ± RH Rear quarter inner ± LH FFF. GURGAON Sr.LIST OF PRODUCTS MANUFACTURED AT CAPARO MARUTI. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Model Part No. of stages 4 4 4 3 4 3 4 4 4 4 3 4 4 4 4 4 Stage 1st (tonne) 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 800 Stage 2nd (tonne) 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 Stage 3rd (tonne) 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 Stage 4rth (tonne) 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 400 Alto Alto Alto Alto WagonR WagonR WagonR WagonR Omni Omni Omni Omni Omni Versa Swift Swift Quarter inner lower ± RH Panel dash Rear wheel housing ± LH Fendor apron . OF TRIPS IN FINAL PRODUCT SUPPLY TO CUSTOMER END´ .PROJECT HIGHLIGHTS ³COST MINIMISATION BY REDUCING THE NO. the raw material for the finished goods to be manufactured is supplied by ten major sources namely: 1. The items which are considered here are: 1. Bhushan Steel 6. Thereafter. the processed material is loaded in trolleys which are then transported to the MUL plant in Swaraj Mazda trucks. Dash upper 3. Ispat 8. Cowl top 2. Uttam Galvano 9. Sail 10. Essar 2. Honda Trading The material obtained is further processed largely at the Gurgaon plant. Tata Ryerson 5. Ruchi Steel 7. The shearing of the rolls were done at the MUL plant. Tata Steel 4. Bosco 3. The processing of the raw materials is done at the Caparo Maruti station. Swift tunnel .SUPPLY CHAIN STRUCTURE (CAPARO MARUTI) According to the specifications of Maruti Udyog Limited. Each part was manually checked to & then supplied to MUL which means additional costs. The re-work of the part & the additional transportation expenses were additional costs. During the transportation of the items.SHORTCOMINGS TO SUPPLY CHAIN STRUCTURE AT CAPARO MARUTI LTD The transportation of the items to the MUL plant was a very critical process. the high quality set by MUL meant that even a minor scratch was treated as a major non conformity to standards & the part was sent back. care had to be taken that the items are not damaged during transit. . Transits: 390 Total costs: Rs.4.1200 No.000 .BEFORE IMPROVEMENT STATUS PRIMARY EXPENSES: Cowl Top Part: cowl top Units/trolley: 10 Trolleys/truck: 6 Cost of transportation/truck: Rs. 68. Transits: 273 Total costs: Rs.Panel Dash Part: dash upper Units/trolley: 25 Trolleys/truck: 6 Cost of transportation/truck: Rs.1200 No.3.600 . 27. 1200 No.800 Cumulative transportation costs/month = Rs. 80.400 . 76.2. 10. Transits: 234 Total costs: Rs.Swift Tunnel Part: swift tunnel Units/trolley: 10 Trolleys/truck: 10 Cost of transportation/truck: Rs. As logistics costs are a major chunk of the operating expenses of Caparo Maruti. expenditure related to transportation of finished goods is reduced. In order to minimize the logistics costs. At the same time. With the rising fuel prices and scarcity of petroleum resources. this cost cutting has been transferred to the vendors of MUL who need to control operating costs in order to make profits. Size of the trolley . With the limited capacity of the trucks. Therefore. resources and manpower available at company it was necessary to look in to the supply chain structure operated within the framework of delivery at the company. No. they need to be minimized so that the logistics process functions optimally. of Trolleys/Truck 3. On the other side. MUL has been slashing the prices of its vehicles to remain competitive & recapture its position as the market leader. we have 3 main variables to work upon: 1.PROBLEM BREAKDOWN In a volatile business environment & economic slowdown. it is necessary that minimum expenditure on petroleum resources should be incurred so that the natural resources are not overburdened. No of rack in a trolleys 2. Within the supply chain structure. both transportation resources and supply chain system has to be analyzed. efficient as well as economical. but there was a lot of space wastage in this process. This act was a crucial step in the units delivered per transit. the Supply Chain structure was faster. it was noticed that the assembly loaded in a trolley were loosely spaced and had no utility.Variable 1: No. Earlier the no of rows in a trolley were 5 i. Proper measures with regard to safeguarding of assembly were not taken. Moreover. of racks in a Trolley Solution for dash upper With careful research and analysis. 5 units of dash uppers could be loaded in 1 trolley. This was a significant improvement. . there was no damage to the dash uppers during transit. the no of dash uppers transported per trolley increased to 8 & also there was no compromise on the road safety norms. The quality of the dash uppers also didn¶t get hampered. By increasing the no of rows in the trolley to 8 and spacing the rows uniformly. Therefore.e. there was probability of increasing the no. of rows per trolley that would add to the capacity of trolley. Thus. mobility of trolleys and size to weight ratio of the trolleys is maintained. To achieve this CUP and LEG design was implemented. saving the space. With this critical design. There was a room for taller and more robust trolleys that would take the same square area. In this design. but due to height it would be able to carry almost double the goods to the previous design.Variable 2: No. there were extra legs being welded at the top of the trolley while a cup like structure was placed at the bottom. It was noticed that per cubic area was not properly utilized especially when it came to the height available within the truck. This mechanism in turn would act as a lock and key device in which leg of one trolley would be locked in the cup of the other. To achieve this within the cost structure available. . Thus. of Trolleys\Truck Solution for cowl upper The other challenging area was the no of trolleys within the layout of the trucks. the best possible option was to place two trolleys one upon the other. This would save the cost of purchasing new trolleys and other expenses well fits into the company¶s budget. Because of the hooks on the side of the trolleys within the truck. To overcome this problem the hook and spring design was modified in a way that the hook was placed at the bottom of the trolley to serve the purpose that was less taxing on space and thereby making rest of the 30% space for the 6th trolley.This design maintains the mobility and size of the trolleys because the adhesion of trolleys is temporary and is only utilized within the transportation vehicle. there was substantial gap between two trolleys and the no. . But the hooks on the side of the trolleys hamper the space management. of trolleys that could be loaded were limited to 5 and there was 70% room for the 6th trolley. was used to save on the time resources to move the trolleys to the destined transportation vehicle. This assy. Another problem associated with the transportation of trolleys was the spring-hook assembly at the side of the trolley. Changing this design would enable the company to load at least 6 trolleys per vehicle that would make each trip less expensive and more efficient. This was done by modifying the size of the trolleys. the loading capacity of the truck in terms of the no of units of swift tunnels increased. .5 inches The area of the Swaraj Mazda truck is 17533 square feet.Variable 3: Size of the Trolley Solution for swift tunnel In case of the swift tunnel.5 inches Breadth: 2 feet 6. Prior to the modification. This was a significant increase since now more swift tunnels could be transported per transit & the cost of transportation of the tunnels also decreased in confirmation with the set standards.5 inches After altering the shapes (considering truck length & width). Prior to altering the size of the trolleys the. Thus. the number of trolleys that could be fitted into the loading area increased significantly. the dimensions of the trolley¶s were: Length: 3feet 7. the load ability factor increased to 13. By slightly altering the dimensions of the trolleys. the loading area of the truck was optimally utilized by fitting in more trolleys in the loading bay. load ability factor of the truck was 10 trolleys. the size of a trolley being used was: Length: 3feet 11 inches Breadth: 2 feet 11. But after modification. 000 Net primary savings = Rs. of units per transit = 100 Swift tunnels transported = 23. the number of transits required to transport 23.800 Secondary Savings: Additional Execution Cost at Caparo & at Supplier end Additional stationary & overhead cost Additional Man hours Cost reduction .800 After the modification.400 units of swift tunnels decreased significantly as now 13 trolleys could be loaded in 1 truck. of transits = 234 No.400 Total costs = Rs. the cost of transportation to deliver the same amount of material decreased. 2.1200 Total cost = 1200*180 = Rs. AFTER MODIFICATION: No.SAVINGS TO SUPPLY CHAIN STRUCTURE: BEFORE MODIFICATION (Swift Tunnels) No. 2. Hence. 16. 80. 64.400 units = 180 Cost /transit = Rs. of units per transit = 130 No of transits required to deliver 23.