Case Study Insta Cement Industries

BACKGROUND

India is the second largest cement producer in the World, after China and the production capacity is expected to reach 550 Million Tonne by 2025 with large concentration in Western and Southern Parts of the country. The Industry is expected to grow at 9% CAGR between FY18 to FY20, on the back of increased spends on roads and railways, push towards affordable housing by central government and materialization of pent-up demand.

CASE STUDY

Insta Cement Ltd enjoys 40 percent market share in the western parts of the country, along with a value premium. It has a strong consumer-based brand equity developed over a period due to its quality consistencies and delivery commitments. The company enjoys 26% market share pan India and has built up its long term strategy to penetrate in rural markets.

At cements production plant an average of 300 trucks per day shipments are made. The trucks are classified into categories according to its carrying capacity i.e. 10MT, 15MT, 20MT and 25 MT. The plant serves in lead distance from 10km up to 500km. Recently, there has been a permanent restrictions on the movement of heavy load trucks during certain hours of the day due to increasing road accidents and traffic congestion in the state. These restriction hours are imposed two times a day during 7 am to 10 am and 2 pm to 4 pm respectively.

Due to this restriction the truck turnaround time (TAT) has drastically increased which is affecting the service levels and on time deliveries. Refer to table for TAT figures.

TAT	TAT in hours
TAT inside the plant	4.25
Activity wise TAT
TAT inside the plant		Ideal		Actual TAT
		TAT(mins)		(mins)
Gate-in from truck yard		15 mins		65mins
Loading		35 mins		95mins
Security Check		15 mins		35mins
Invoicing		10 mins		45mins
Gate-out		2 mins		15mins

TAT for last 6 months per shift are as follows:-

SHIFT	TIME	TAT( Average of last 6
		months)
A	6am-2pm	4 Hours 40 mins
B	2pm-10pm	5 Hours 10 mins
C	10pm-6am	3 hours 20 mins

The increased TAT has led to congestion of trucks within the factory premise and hence safety has become concern due to their movement. Also, due to long waiting time and turnaround time the trucks are moving to competitors.

As a new management trainee hired in logistics suggest possible ways to reduce the TAT inside and outside the plant. What automation tools can be used to support the same?