Case St

--- About Phantom ---

Phantom glass ltd is one of the leading glass manufacturing companies in India

--- Location ---

The plant is located in western India at a prime location

--- Capacity ---

The installed capacity of 32 million CSQM (600 tones per day) of float glass

--- Future of Phantom Ltd ---

Phantom is making good headway in the market as the product are well accepted because of world class quality and the prices are comparable to other available products in market

Problem faced by Phantom Glass

Problem No.1

Lack of Co-ordination with CSD - Delays in getting information on production schedules as a result CSD is not able to give confirmed dispatch schedules to logistics department. This results in waiting time for trucks, penalties and long delivery time.

Problem 2

Load Utilization in Crates - Most of the crates are of odd sizes rather than fixed sizes

Problem 3

Allocate Storage Capacity - Glasses are stored in warehouse in packed form which requires 30% more space. Due to low space, Phantom has to store 250 CSQM per sq meter while the international standard is 125. The breakage rate is also very high.

Problem 3

Organize the dispatches - Lack of co-ordination between CSD and logistics department results in long waiting line for containers and trucks and results in daily penalties of 1000 Rs /=. Productivity is also very low, the contractors make 2/3 loads per shift instead of standard 5.

To bring down the inventory carrying cost which includes the carrying cost for packaging material. Would you suggest the shortage of glass sheets in an unpacked condition and packaging only at the time of disptach?

Answer

The idea of storage of glass sheets in unpacked condition and packaging only at the time of dispatch is better.

As the space required for the packed glass sheet is approx 30% more than the unpacked material.

The carrying cost of glass from the manufacturing unit to the warehouse can also be reduced.

As the data...