Internship at

M/s John Deere India Private Limited, Sanaswadi, Pune, India

(05-Jun, 2013 to 05-Jul, 2013)Undertaken by

Varun VermaIV Year Mechanical Engineering

SKN College of Engineering,Sinhgad Institutes,

Vadgaon,Budruk, Pune

Company overviewDepartment overviewPDC operationWork summaryProject descriptionLearning SuggestionsAcknowledgements

Contents

About the company John Deere is a world leader in providing advanced

products and services for agriculture, forestry, construction, lawn and turf care, landscaping and irrigation.

John Deere India Private Limited is a subsidiary of Deere & Company, USA in India. Its factory, located near Pune, manufactures 5000 Series agricultural tractors.

Spread across 112 acres, the factory has a total built up area of around 50,000 sq. meters. Manufacturing is carried out at three inter-linked factories - Transmission, Engine and Vehicle Assembly.

The company has implemented SAP system for sales and distribution as well as integration of manufacturing processes. Area offices, dealers, depots and C & F agents are networked to enhance efficiency and customer service.

JDPW

Company Overview

Department Overview

Operations

Project

Operation – 7 JD staff supported by TTs and 3PL• Plan, develop, organize, direct, manage and evaluate the operations

and budget of warehousing facilities.• Review contracts, invoices, work orders, consumption reports, and

demand forecasts to estimate peak delivery periods and to issue work assignments.

• Develop performance indicators to measure effectiveness of warehouse operation.

• Prepare or direct preparation of correspondence, reports, statistics related to the warehouse operations.

• Implement warehouse health and safety.Planning – 7 JD staff supported by TTs Planning department will set standards and targets for each

commodity procured. The quantity of products coming suppliers will be closely monitored Forecasting orders on the basis of previous sales, the general state of

the economy and consumer preferences.

Department Overview

Department Overview

Project Team – 3 JD employees• NGP relocation

• Site procurement • Selection, Ordering, installation & Commissioning of Racks, MHE’s and

other assets• IT systems installation before go live date• Material transfer from Pune to Nagpur warehouse• Inbound and outbound logistic strategy Ex Nagpur

• System up gradation Extended warehouse management-Next generation warehouse operations

ERP Service parts planning-Next generation planning ERP JD point-Next generation CRM ERP

• Regular process improvement projects

MDR – Green Bins

MDR – Green Bins

LDR– Small Bins

HDR – Pallets/ Cages

MDR – Blue Bins

974 – Pre-Pack

973– Receipt & Quality

Outbound - Packing

Staging and Dispatch

Receipt Racks

Outbound Picking & Packing: Eight Tables with 8 Pickers + 8 Packers + 1 Order picker. KEY DECIDER FOR HOW MANY LINES ARE SHIPPED ON A DAY

Part Distribution Centre (Pune)

Department Overview

PDC Operation

PDC Operation

Sales and SKUs handled

2010 2011 2012 20130

50

100

150

200

250

0%

50%

100%

150%

200%

250%

300%

100%139%

175%

250%

Sale (INR Crores) YoY Increase 2009 2010 2011 2012 20130

2000

4000

6000

8000

10000

12000

14000

16000

0%

50%

100%

150%

200%

250%

6736

8577

1115012736

15062

100%

127%

166%189%

224%

SKUs at PDC YoY Increase

India PDC has handled this increase in business as well as the number of SKUs stocked with the same area. There has been no space augmentations since 2009.

Year Sale (INR Crores)

YoY Increase

SKUs at PDC

YoY Increase

2009 - - 6736 100%2010 88 100% 8577 127%2011 122 139% 11150 166%2012 154 175% 12736 189%2013 220 250% 15062 224%

Department overview

Week1: Introduction to organization work environment by Mr. Bhavan Saravana. Meeting people in

Receipt Quality Prepacking Binning Picking and Packing Dispatch

Understanding every operation performed on the material from inbound to outbound. Mapped southern states of India from JD PDC Ex NagpurWeek2: Understanding the Project requirements Mapped northeast and northern states of India. Contacting Mr. Anil and acquire docket charges for certain invoices Meeting with Mr. Vaibhav Ramdasi in John Deere sales office in Onyx

He shared his knowledge and experience in logistics and all the projects done so far . Logistics presentation for complete goods. Yard Management details from beginning till the currently deployed

ATIC tool Logistics strategies planned other product lines like Harvester/ ALJD/ Water Dewas Logistics strategy and how is it coming up Progress on Inbound and outbound mapping for Parts Ex Nagpur Separate meetings set up for understanding the progress for Inbound logistics

Work Summary

Week3: Preparing optimized routes for the outbound i.e. John Deere PDC (Nagpur) to Western

stated of India. Normalizing the maximum lines per day and observing weight for routes and determining if

they qualify for the full truck load or to be dispatched as part load. Meeting with Mr. Sunny Rana over WebEx

I shared the outbound strategy of the states covered so far . Mr. Sunny informed that he has already requested quotations from VRL and has

started working on inbound. Attend daily meetings between John Deere and spear employees and learn about the

common problems which hampers the performance of PDC.

Week4: Plant tour with Mr. Bhavan and Mr. Shambhuraj. Preparing report of work done and review with project supervisor before submission.

Work Summary

Project Appointed: Study on Parts outbound transportation

Strategy Ex-Nagpur : For JD PDC

Challenge: Define routes for out-bound transportation

strategy ex Nagpur Work with transport service providers and

JD Parts and Logistics to establish parts delivery routes with milk runs, FTLs, Part Loads, ex. Nagpur

Result expected: Complete mapping of outbound from

Nagpur to countrywide customers . Determination of full truck load and part

truck load routes

PDC at John Deere Plant (Pune)

Project Description

Project Description

Results1. Completed mapping of 341

cities with specific day of dispatch for different routes.

2. Considerable reduction in carbon footprint.

3. This system will also help in regulating the orders placed by the dealers.

Project Description

Example

If the shipment to the dealers above are sent using part truck loads thentaking interest for part load @ 6.43 Rs/kgThe total cost comes out to be 159013 Rs (Total Weight=24.73 T)

Now let us calculate the cost by sending the same shipment via combination of full truck and part truck loadsUse 16T FTL for Karimnagar, cost =30800 RsUse 9T FTL for Nirmal,Khammam,Vijaywada, cost=19800+17160+18000=54960 RsUse part load for Gudivada, Vishakapatnam, cost=(840+426)*6.43=8140 RsNet cost= 93900 Rs

Saving= 65113 Rs

Part Distribution Centre Involves the planning, implementing and controlling the physical

flows of materials and final goods from point of origin to points of use to meet customer requirements at a profit

It involves materials management, distribution systems and IT systems interlinked with one another

Getting the right goods at the right place at the right time for the least cost

Optimize space needed for growth Improved inventory turnover Inventory reductions Optimize Staffing

Learning

Suggestions

Cost Minimal use of paper Recycling packing material Portable cranes to improve material handling and ease workload. Quality The 3PL needs to be more disciplined and committed in maintaining proper 5s. The part distribution center needs increased number of automated facilities such as

bar code scanners, sweeping machines etc. Suggestion boards with color coding for each department. The plastic pallets have short life and need maintenance due to lower load bearing

capacity, Toyo Fiber Pallets can prove to be a better alternative.Safety The dividing lines need to be repainted and made strongly visible. Use of warning signs and signals. Workers should be provided hand gloves and helmets Delivery The working conditions could be made more comfortable by providing proper

ventilation and inducing air ducts at appropriate locations. Digital display boards indicating live performance of each department

My project guide: Mr. Nitin Rahangdale

Special thanks to: Mr. Bhavan Saravana

Mr. B.N Sampath

Acknowledgement