Ashutosh K Tripathy

Roll No. MP13017

Idea:-

To minimize the transportation cost of gear boxes from Jamshedpur to Lucknow
and Pune .The study is done for recognizing the opportunities available within the
scope for better space utilization and alternate ideas for supply chain and
logistics.
The idea is primarily applicable for the transportation of gear boxes from TML
Drivelines, Jamshedpur to TML Lucknow. The same idea will be implemented for
transportation of gear boxes from Jamshedpur to Pune, after the success of the
plan for Lucknow.
In first phase the idea is to reduce the transportation cost of gear boxes to
outstation customers. Taking it forward in second phase planning is to come up
with new cost effective idea for local customers and other outstation customers
too.
Introduction:-

TML Drivelines caters predominantly to the needs of M&HCV market segment of
Tata Motors. TML drivelines manufactures Gear Boxes and Axle for M& HCV
segment .TML Drivelines caters to almost 98% of the volume requirement of TML
Lucknow. Leveraging & enhancing the Key Strategic Advantages Close
Relationship with Tata Motors as a customer with Assurance of volumes and
Ability to deliver Axles & Transmissions at low cost; and addressing the identified
key strategic challenges, have been identified as drivers for TML Drivelines long
term sustainability.
The major contributor to this is the requirement of Gear Boxes at TML Lucknow.
The volumes produced at TML Lucknow are 40% of the total M&HCV of TML. TML
Drivelines future growth is largely governed by Tata Motors engagement with it.
This is manifested by the assurance of volumes and the major contributor to
this is TML Lucknow.

One of the core competencies of TML Drivelines is ability to manufacture least
cost gear boxes. The proposed idea will add value to this, as it will reduce the
cost (by reducing the transportation cost).
Different from existing:-

Existing:-
Currently 40 feet semi high trailers are used for transportation of gear boxes from
Jamshedpur to Lucknow. For Lucknow transportation Scope of work is defined as
keeping the cost of transportation same and increase the no. of gear boxes in trip.
For Pune the scope is defined as use of LPT 1109 or any other heavy vehicle which
can carry gear boxes and having facility of side wise loading.

At present we use 40 feet semi high trailer for transportation of gear boxes from
Jamshedpur to TML Lucknow. The trailer is not used for its 100% load carrying
capacity. At present this trailer can carry at max 84 nos. of gear boxes in a trip. In
this condition 3 to 4 feet useful length of the trailer remains unused due to the
taper shape (step available) (refer Photo 1). The presences of this step prevent us
to keep an additional row of pallets. In the proposal, the taper shape will be
replaced by the flat space available, which can be used to keep one additional row
of pallets. Current condition can be manifested as - Transporting a space which
does not carry any Load. As a result the space and load carrying capacity both
remains under-utilized. In addition, this underutilization of space creates the
shortage of gear boxes at TML Lucknow. This inclination also creates the problem
during loading and unloading of Gear Box pallets.



Photo 1:- Existing practice. (Use of 40 feet semi high trailer)
Proposed:-
In the proposed scenario we have to use 40 feet high bed trailer. This 40 feet high
bed trailer will not have the taper inclined space. The availability of such trailers
will be worked out after floating the enquiry and consulting the service providers.
Considering the requirement of 2 to 4 trailers per day, depending on the volume
of production, it can be assigned to any potential transporter for the sough type
of trailers.
In the proposed situation there will be an increase in the no. of gear boxes to be
transported in a trip. I.e. we can dispatch more gear boxes in same cost. This will
ensure 100% space utilization as there will not be the inclined space as it will be
converted to a flat bed. This flat portion can now be utilized to keep an additional
load (Gear box pallets).
Figure 1 shows the average load (average no. of gear boxes per trailer) which the
trailers will carry in proposed scenario. It also shows the trend for last 9 years.
There is a clear cut increase in the next 5 years. In the fig1. The projection for
next 5 years is plotted after talking to different transporters and is based on the
availability of the proposed flatbed trailers. By FY 2018-2019 it can be expected
that 100% trailers used will be flatbed only which can carry at max 108 nos. of
gear boxes in a trip.


Fig: 1 Existing and Proposed Loading pattern of trailers for Lucknow dispatch Of Gear Boxes
Cost of Installation:-

In the conception stage it is assumed that there will not be any additional cost for
the proposed state. But it is expected the the availability of the 40 feet flatbed
trailers may be a point which needs to be discussed with the service provider. At
present lot of 40 feet flatbed trailers are plying but the work regarding the
assurance in terms of business needs to be ensured to service providers. It will
motivate lot of transporters to work for the availability of 40 feet flatbed trailers.
There can be an open float of enquire for the proposed requirement. Looking at
the current market it is expected that lot of players will be interested in investing
for increasing the no. of the required type of carriers.
At present based on preliminary investigation, lot of transporters are available
who are having either 2 or 3 such trailers which were improvised for some other
need.
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Existing GB Per
Trailer
Proposed GB Per
Trailer

Long run cost saving:-

Calculating the cost saving with respect to 5 years vehicle projection is plotted
below. Fig. 2 shows that the cost of transportation of a unit gear box varied from
Rs 639 to Rs 679 in last 9 financial years.
Calculating the cost of transportation for the gear boxes for next 5 years (refer fig.
1), it will come down to Rs 510 per gear box. The proposal will bring down the
unit Gear box transportation from Rs 639 to Rs 589 from current financial year. It
is again based on the availability of flatbed trailers.



Fig 2: Cost of transporting unit gear box from Jamshedpur to TML Lucknow.

679
663
646
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639 639
589
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510
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541
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691
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511
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631
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Existing Cost
Per GB(Rs.)
Proposed cost
per GB(Rs.)
The savings per gear box is plotted in fig. 3. Considering the total volume
projection (volume of M& HCV at TML Lucknow) there will be saving of Rs 16 lacs
in Fy 14-15. This saving will go up to Rs 27Lacs. By the end of FY 18-19.

Fig 3: Saving out of transportation of gear boxes in next 5 FYs.

Environmental and social benefits:-

For environment there will be reduction in fuel consumption. The reduction in
carbon foot print in next 5 Fy is plotted below. The fig 4 shows that the co2
emission will go down from 4.81 KG per gear box transported to 3.47 KG per gear
box.(Assumption 1liter diesel emits 2.68 KG of Co2)
For society it will create more jobs as it will attract more manpower to create
more flatbed trailers. Moreover it will also ensure the safe transportation of gear
box pallets from Jamshedpur to TML Lucknow.
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0
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160
Fy 14-15 Fy 15-16 Fy 16-17 Fy 17-18 Fy 18-19
Saving(Rs. Per GB)
Saving(Rs. Per
The reduction in the transportation cost will also bring internal customer delight.
It will also ensure the delivery of more gear boxes in a trip, which will ensure the
vehicle production as per plan at TML Lucknow.


Fig 4: CO2 emission for transportation of one gear box from Jamshedpur to Lucknow.

4.81 4.69
4.58
4.63
4.58
4.75
4.69
4.52 4.52
4.17
3.91
3.68
3.61
3.47 3.47
3.67
3.87
4.07
4.27
4.47
4.67
3.47
3.67
3.87
4.07
4.27
4.47
4.67
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Co2 Emission per
GB transported