OPERATIONS MANAGEMENT
Group Members:Abhinav Thakur Adil Garg
15DM004 15DM009
Akhil Surendran
15DM015
Anish a!naik
15DM0"5
Anshul Gup!a
15DM0##
A$ush %ain
15DM04"
ABSTRACT In this project, our main emphasis was to map out business processes of DTD! "e ha# $isite# DTD faci%it& at a%pha ' Greater Noi#a as we%% as hub at Noi#a! The route map of the project was to $isit the site, interaction with the mana(er an# obser$ation of their #a& to #a& acti$ities so that we cou%# fi(ure out an& wastefu% acti$ities an# come up with an& i#ea or process to remo$e or re#uce such acti$ities! In the e)ecution, first we ha# meetin( at co%%ection an# #istribution a(enc& in Greater Noi#a, after which we approache# the Noi#a hub mana(er! A%on( with this, we ha# co%%ecte# secon#ar& #ata re%ate# with DTD an# %o(istics in#ustr& to ha$e an o$er$iew an# o$era%% un#erstan#in( of the in#ustr&!
INTRODUCTION DTD ourier * ar(o +t#! is one of the %ea#in( E)press #istribution compan& in In#ia co$erin( both #omestic an# internationa% ser$ices! Incorporate# in the &ear --., DTD is in its 'st &ear of operations in In#ia! It has a %ar(e #e%i$er& networ/ co$erin( c%ose to .,... pin co#es (i$in( its customers the best reach in the countr&! Its efficient internationa% networ/ spans o$er '0. (%oba% #estinations supporte# b& its own offices in 1S, 12, D13AI, SINGAPORE, ANADA, 3ANG+ADES4, 4ONG2ONG, SRI +AN2A, NEPA+, T1R2E5 an# associate offices in a%% the important (%oba% #estinations! 4ea# 6uartere# in 3an(a%ore DTD has its 7ona% offices in 3an(a%ore, Mumbai, De%hi an# 2o%/ata supporte# b& 8.. p%us own offices an# o$er 90.. channe% partner offices sprea# across the countr& #e%i$erin( o$er .. mi%%ion shipments e$er& &ear! ompan& has the state of art IT infrastructure to support their operations an# has bui%t man& customi:e# app%ications for its corporate c%ients!
Objective of the project The aim of our project is to map out business process, fin# out an& wastefu% acti$ities an# su((est an& i#ea or process to remo$e or re#uce such acti$ities! ;or our project our tar(et or(ani:ation is DTD!
ABOUT DTDC DTD has been inno$atin( constant%& to pro$i#e pro#ucts an# ser$ices that meet customers current an# future nee#s! To#a& &ou wi%% fin# DTD offerin( wi#e ran(e of ser$ices %i/e E)press courier, car(o, en# to en# supp%& chain so%utions, Retai% ser$ices %i/e tic/etin( so%utions, bi%% pa&ments, Mobi%e * DT4 top ups apart from Trainin( supp%& chain professiona%s throu(h its supp%& chain trainin( institute!
DTD
E-solutions
DTD has #ep%o&e# a state=of=the=art techno%o(& bac/e# b& efficient operations infrastructure to pro$i#e enhance# ser$ices to a%% its customers! The hi(h=en# IT capabi%ities ensure en#=to=en# trac/in( of each consi(nment at a%% sta(es ri(ht from boo/in( to #e%i$er&! The #ata is rea#i%& a$ai%ab%e on the web for customer reference! orporate customers are pro$i#e# customi:e# so%utions to meet their ser$ice re6uirements an# an efficient Mana(ement Information S&stem MIS support b& wa& of time%& automate# reports to /eep trac/ of their %ar(e number of shipments effort%ess%&!
E-Notify
DTD E=Notif& is a web=base# so%ution for priorit& ser$ices! To enab%e this ser$ice, customers nee# to mention the shipment numbers a%on( with their emai% #etai%s for the t&pes of notification the& mi(ht prefer> De%i$er&, E)ception, etc! ustomers are notifie# automatica%%& about the %atest status of their consi(nments, whether the& are #e%i$ere#, he%# up, not #e%i$ere# or Return to Ori(in ?RTO@ an# ?base# on customer
Corporte Trc!er
DTD orporate Trac/er is a web=base# trac/in( so%ution which is a$ai%ab%e on%& for corporate customers who pro$i#e bu%/ %oa# in re(u%ar basis! Secure +o(in an# passwor# are pro$i#e# to customers to access the DTD ustomer porta% for trac/in( their %oa# status either for an in#i$i#ua% consi(nment or for a specific perio#! Other than internet connecti$it& no other software insta%%ation is re6uire# to access the website!
E-Trc!er
DTD E=Trac/er is a uni6ue Trac/in( so%ution main%& for the customer who #oes not want to open the browser an# trac/ the consi(nment e)p%icit%& from the Porta%! It is a #es/top=base# app%ication that the customers nee# to insta%% on his %oca% s&stem! ?Not re6uire#@To (et the %atest consi(nment status, a%% the customers ha$e to #o is to (o on%ine an# point their computer mouse just on top of the app%ication icon on their #es/tops! A tin& on%ine win#ow wi%% #isp%a& the shipment status for a%% their #e%i$eries!
"eb #ic!up
DTD "eb Pic/up is a tota% on%ine pic/up so%ution for the customer! ustomers nee# to submit pic/up re6uests throu(h the DTD web porta%! On successfu% submission, the re6uests wi%% be forwar#e# to the #esi(nate# pic/up office! DTD e)ecuti$es wi%% pic/ up the shipment from customer
E-Invoice
This is DTD
E- Co$plince
DTD E=omp%iance is a web=base# comp%ain forum for the corporate customers an# channe% partners! "ithout an& specia% app%ication insta%%e# to run this, customers can re(ister their ser$ice
comp%aints on the porta%! omp%aints are trac/e# with uni6ue comp%aint numbers an# #etai%s are a$ai%ab%e with comp%ete communication histor&! ustomers can a%so $iew the support matri) with a(e wise ana%&sis!
O#ERATIONS IN NOIDA A% &or 'istribution of inco$in( pc!(es There are #ifferent a(encies which are in partnership with DTD! Each a(enc& is
assi(ne# with a particu%ar area in the territor&! There territoria% ri(hts are preser$e# so that no two a(encies ha$e conf%ict with each other! 3! Out(oin( pc!(es ustomers can sche#u%e a pic/ up re6uest b& c%ic/in( on the option a$ai%ab%e on • compan& website or the& can persona%%& $isit an& of the a(enc&! As per ru%es, customer nee# to pac/ the consi(nment in the presence of DTD officia%s for •
securit& reasons! In case pac/in( is not #one in front of the DTD officia%s, the co%%ectin( person ta/es two ID proofs of the customers to han#%e the subse6uent securit& issues if
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arise in case! In the e$enin(, co%%ecte# pac/a(es are processe# to DTD hub, Noi#a! 4ere, barco#e is (enerate# for each pac/a(e! Each pac/a(e is han#%e# as per priorit&
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re6uirement! ;rom the hub, a%% the pac/a(es are #irect%& sent to airport! As the barco#e is (enerate#, who%e information re%ate# to that particu%ar pac/a(e becomes a$ai%ab%e on compan& website %i/e #ate of boo/in(, source, #estination
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hub an# e)pecte# #ate of #e%i$er&! In the premium cate(or&, ne)t #a& #e%i$er& option is a$ai%ab%e for metros!In others, ' to 8 #a&s are ta/en for #e%i$er& at #oorstep
)ET*ODO+,
./ Reserch pln
Agen($ +isi! -ub +isi! Telephoni( (onversa!ion
* s r e m o ! s u ( h ! i ' ! n e m ! r a p e d s ( i ! s i g o l $ b d e ( a ) s m e l b o r p ' o n k o T & * r o ! ( e s e ( i v r e s n i $ n a p m o ( e h ! ) o n o i ! i d n o ( ! n e s e r p e h ! ' o n k o T & * s i s a b $ l i a d n o d e ( a ) s m e l b o r p ! u o b a n o i n i p o s , r e g a n a m ' o n k o T & * $ r e v i l e d o ! ! n e m h ( ! a p s i d m o r ) s s e ( o r p e r i ! n e e h ! d n a ! s r e d n u o T & * o r ! ( e s e ! a r o p r o ( m o r ) n o i ! a m r o ) n i e v i r e d d n a ! ( a ! n o ( o T &
In or#er to carr& out the process map of DTD for the i#entification an# e%imination of the wastefu% acti$ities, #irect contact with the a(enc& office of DTD was re6uire#! Group members $isite# the a(enc& office in A%pha=', Greater Noi#a! Thereb& un#erstan#in( the entire process $erba%%& from the contacte# person! A $isit to the hub station was a%so re6uire# to un#erstan# the entire process from the #ispatchin( of the item to the fina% #e%i$er& an# a%so to /now the #a& to #a& prob%ems face# b& the compan&! A%ternati$e research p%ans, such as inter$iew with the mana(er of the hub an# te%ephonic con$ersations were a%so use# for #eeper un#erstan#in( of the #a&=to=#a& functions of the hub!
.%./ •
#reli$inry Investi(tion DTD is the thir# part& %o(istic pro$i#er, pro$i#in( mu%tip%e %o(istic ser$ices for
customers! The prime ser$ices inc%u#e transportation, warehousin(, cross=#oc/in(, •
in$entor& mana(ement, pac/a(in( an# frei(ht forwar#in(! One of the prime issues face# b& DTD is the prob%em re%ate# with transportation! Since courier an# %o(istics ser$ices function with time factor an# ha$e c%ients who prefer or want their (oo#s on time, the mo#e of transportation an# channe%s are often (i$en hi(h ran/ of importance an# #isturbances in the channe% of transportation, which inc%u#es
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human or non=human errors can be a cause of %oss of (oo#s or re$enue for the compan&! Norma% courier ser$ice #iffers e)tensi$e%& when compare# to %o(istics ser$ices! The former focuses on sma%% sca%e #e%i$er& whi%e the %atter concentrates more on %ar(e sca%e #e%i$er& of (oo#s to its customers, main%& the in#ustria% customers!
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The restrictions imp%icate# b& DTD on certain (oo#spro#ucts transfer an# #e%i$er& are e)p%osi$es, f%ammab%e %i6ui#s an# so%i#s, o)i#i:ers an# or(anic per o)i#es, ra#ioacti$e materia%, corrosi$es etc! Such (oo#s an# pro#ucts contain ha:ar#ous characteristics an# are cate(ori:e# b& the IATA in the Dan(erous Goo#s Re(u%ations!
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E1plortive Stu'y
So%ution to a particu%ar prob%em face# b& an& compan& cannot be fu%% proof, a%thou(h amount of %oss can be re#uce#! Re#ucin( cost at the same time earnin( profit cou%# increase sustainabi%it&! In case of DTD, the prob%em %ies with its %oa#in( an# un%oa#in( time (aps which #isturbs the f%ow of transportation! "hen a thir# part& %o(istics pro$i#er is compare# with a norma% business firm concentratin( on ;MG or other pro#ucts, the former nee#s to imp%& more attention to its c%ients because of the #irect customer re%ationship, which is nee#e# for ser$ice base# companies, un%i/e the %atter which approaches interme#iaries for #isturbin( its ph&sica% pro#ucts to its customers! 4ence %osses can be (reater when a ser$ice compan& is in$o%$e# with its c%ients! In case of DTD, if a courier #oes not reach its #estination on time, it wou%# resu%t in comp%ete refun# thereb& increasin( the o$era%% cost of the #e%i$er& an# a%so %oss to the compan&!
0/ Reserch Desi(n
rimar$ sour(es .ues!ionair /n!ervie' re
Telephoni ( /n!ervie'
Se(ondar$ sour(es 0eb 1e)eren(e s
23is!ing 4ompan$ 1epor!s
#rd ar!$ 1e)eren(e s
2/ +i$ittions • • •
+imite# base time for the project +ess a(enc& office an# hub stations co$ere#! +ess number of 6uestionnaire fi%%e#!
S$ple 3uestionnire Most of the 6uestions as/e# were open=en#e# in nature! @ Do &ou ha$e an& #istribution channe% prob%ems ?re%ate# to transportation@Bif so, how can the& be minimi:e#B '@ "hich of the fo%%owin( factors, un#er transportation se(ment affects its functiona%it& the mostB A@ 3@ @ D@
En$ironmenta% Disturbances 4uman Errors +oa#in( an# 1n%oa#in( time (aps Misce%%aneous CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
8@ Is there an& possib%e materia% #ama(es that happen #urin( e)ecution of an or#erB 0@ Are there an& situation which are out of &our contro% that affects the #ai%& operations of the compan&B 9@ Are there an& prob%ems re(ar#in( manpower mana(ementB @ Are the techno%o(ies use# b& DTD constant%& impro$e# an# #oes &our staff re6uire specia%i:e# trainin( re(ar#in( operations of such techno%o(&B
PROCESS )A# The process map starts with #istribution an# co%%ection a(enc& who are (enera%%& pri$ate operators whose wor/ of #istributin( an# co%%ectin( the or#ers has been outsource# b& DTD! CO++ECTION AND DISTRIBUTION A,ENC D/SAT/G 6 A T2 6D2S T6 T2 A2A ;< =DTD>
2T8 6 6D2 D2TA/S /T6 T2 S;8 A/ S8ST2M
A2TA2 6 6D2 AD A8M2T 6M
6 he!her !o a((ep! order7 6
82S
;ST6M2
#ROCESS )A# O& CO++ECTION AND DISTRIBUTION A,ENC
The map is #escribe# as fo%%ows ! The customer wou%# p%ace an or#er to #e%i$er its mai% or (oo# to its #esire# %ocation!
'! Genera%%&, the a(encies accept the or#er! 4owe$er, there are certain cases where the& can a%so #en& the acceptance of or#er because %o(istic constraints %i/e non=a$ai%abi%it& of manpower to e)ecute the or#er! 8! Once the or#er is accepte# an# the pa&ment is recei$e# from the customer! The operator wou%# then enter the #etai%s of the or#er into the supp%& chain website of DTD which can be accesse# on%& b& the operator! The website can be accesse# b& operator an&time an# an&where! 0! After a certain thresho%# time, a%% the or#ers are then sent to DTD area hub! In our project, after pm a%% the or#ers in the a(enc& wou%# be sent to hub!
T*E *UB The area hub where a%% the or#ers are sent to an# recei$e#, from $arious co%%ection an# #istribution a(encies an# hubs from other areas!
S;8 D/ST/<;T/6 ;
A;T6MAT2D 2@/G AD +2//AT/6 6
A;T6MAT2D A@AG/G AD
MA;A S6T/G
ST6AG2 SA2
olle(!ion and Dis!ribu!ion a en(ies
olle(!ion and Dis!ribu!ion agen(ies
olle(!ion and Dis!ribu!ion agen(ies
The process map of AREA 413 is as fo%%ows>
! Once the or#ers are recei$e# from co%%ection an# #istribution a(encies the& are store# in stora(e warehouses where the& are manua%%& sorte# base# on area co#es, re(ion, states an# priorities! '! Once the sortin( is #one these or#ers are then (roupe# to(ether to form consi(nments base# on certain simi%ar criteria %i/e same :ones ?north, south, east an# west@, simi%ar area co#es, same states or same priorities! The or#ers are a%so in#i$i#ua%%& barco#e# to ensure that it is not misp%ace#! 8! These consi(nment are then pac/e# to(ether in automate# machines an# then bar=co#e#! 0! ;ina%%&, the consi(nment are then sent to supp%& centers %i/e airports, rai%wa&s an# bus termina%s where the& are sent to other hubs for further #istribution! 9! "hen the hub is recei$in( consi(nments for #e%i$er& in %oca% area, the& chec/e# an# $erifie# throu(h an automate# process which a%so up#ate# in their trac/in( s&stem! ! Once the& ha$e been chec/e#, the& are then sorte# accor#in( to %oca% area co#es an# then sent to co%%ection an# #istribution a(encies for #e%i$er& o f or#ers to their #estination!
#ROB+E)S •
ustomers ma& un#er $a%ue or o$er$a%ue the (oo#s the& #ispatch! This fa%se #ec%aration
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%ea#s to #e%a&s at airport c%earances! In winters, most of the trains run %ate an# f%i(hts a%so (et #e%a&e# cance%%e# %ea#in( to
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#e%a&s in the shipment #e%i$er&! There are a%so cases of natura% ca%amities %i/e recent f%oo#s in hennai! There is a%so possibi%it& of human errors which resu%ts in misp%acin( of pac/a(es! ;or
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e)amp%e, a shipment sche#u%e# to De%hi if is p%ace# in Fammu boun# ba((a(e! There has a%so been cases of su##en an# %ar(e sca%e %oss of manpower! ;or e)amp%e, in
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3an(a%ore there are cases where E=commerce companies hire a%% of the staff of DTD in 3an(a%ore airport to han#%e a%% the incomin( car(o of these companies at 3an(a%ore airport! Since these peop%e are not re(u%ar emp%o&ees of DTD the& %ea$e without notice! This %ea#s to su##en %oss of manpower which causes consi(nment to stoc/pi%e for wee/s! This happens #urin( pea/ season %i/e Diwa%i, hristmas or 4o%i season!
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There are cases where automate# $erification an# pac/a(in( s&stems ma%functions! A%thou(h an en(ineer is a%wa&s a$ai%ab%e on ca%%, it a%wa&s ta/es time to correct an& prob%em which causes #e%a&s in #a&=to=#a& operations of the DTD!
SU,,ESTIONS
Primari%& DTD fo%%ows best in#ustr& practices mo#e%%e# on internationa% p%a&ers %i/e ;EDe) an# D4+! ;urthermore, DTD fo%%ows stan#ar#i:e# processes in a%% of its hub! 4owe$er there are certain cases where $ariation in ser$ices is $er& hi(h!
In cases of su##en %oss of manpower we su((este# that the& re(u%ari:e the hirin( of fie%# staff an# ma/e them permanent emp%o&ees, but it was rejecte# b& the mana(er because it wou%# %ea# to increase# operatin( e)penses which wou%# trans%ate to increase# prices in the mar/et! This wou%# ma/e DTD uncompetiti$e in the mar/et!
;urthermore DTD itse%f outsources some of its processes to thir# part& which a(ain %ea#s to hi(h chances of $ariation in ser$ices! This is often #one b& companies a%% o$er the wor%# so as to cut costs! A(ain to re#uce $ariations DTD has a%rea#& create# certain stan#ar#s which has to be fu%fi%%e# b& thir#=part& $en#ors! Our su((estion re(ar#in( this was that DTD shou%# constant%& e$a%uate its stan#ar#s an# chan(e them accor#in( to emer(in( scenarios!
ertain c%imatic factors are sti%% out of DTD contro%! "hi%e misp%acement of or#ers are $er& rare cases where chances of such occurrin( is .!.'!Since DTD has a%rea#& refine# its process o$er the &ears it #i# not re6uire an & more su((estion to impro$e its ser$ices! E)cept for the abo$e cases which is out of contro% of DTD, it has mana(e# to re#uce $ariations in e$er& aspect of its process f%ow!
Conclusion
"e $isite# DTD hub in Noi#a an# pri$ate courier a(enc& ?#istribution an# co%%ection a(enc&@ to e%icit information about their processes so as to construct their process map! "e $isite# courier a(enc& so that we can /now about the prob%ems at the customer contact point! Then we $isite# to the hub so that we can un#erstan# about the entire process from #ispatchin( to #e%i$er& an# to /now the prob%ems face# b& them on #ai%& basis! In #ue process we a%so un#erstoo# on how a supp%& chain mana(ement or(ani:ation functions on #ai%& basis! After ta%/in( to the mana(er of the hub we were ab%e to un#erstan# the nuances face# b& him on #ai%& basis! ;urthermore, we a%so #iscusse# on $arious su((estions i!e! their pros an# cons if the su((estion was to be imp%emente#! A%so we foun# out that the or(ani:ation constant%& tries to refine its process! 4ence, most of the su((estions recommen#e# were a%rea#& imp%emente# an# impro$e# upon! "e a%so %earne# that no matter how much we tr& to impro$e our process we a%so ha$e to account for factors which are be&on# our contro% an# prepare for a%% e$entua%ities! 4ence, a perfect so%ution can ne$er be foun#! There were a%so prob%ems that came from customer
