Summer Training Report

On

TO STUDY SAFETY STANDARDS AND IMPORTANT

LOGISTICS ACTIVITIES IN JSW STEEL LIMITED

Completed In : JSW Steel Limited

Submitted In Partial Fulfillment

Of the Requirement

Of Bachelor of Business Administration

Training Supervisor Submitted By

Name: Sushil Nowal Name: Akshat Sharma

Designation: Vice President ENR No./Batch:42161201717

(BBA 4th sem.)

Submitted To:

Banarsidas Chandiwala Institute of Professional Studies, Dwarka. New Delhi

(Affiliated to Guru Gobind Singh Indraprastha University)
 BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project

entitled “LOGISTICS” is the bonafide research work carried
out by “Akshat Sharma” student of BBA, BCIPS, Dwarka ,
New Delhi during June-July 2019, in partial fulfillment of the
requirements for the Summer Training Project of the degree of
Bachelor of Business Administration.

He had worked under my guidance.

--------------------

Name: Sushil Nowal

Project Guide (internal)

Date:

Counter signed by

-------------

Name

HOD/DIRECTOR

Date :-
 DECLARATION

I hereby declare that this Project Report titled “LOGISTICS”

submitted by me to Banarsidas Chandiwala Institute of
Professional Studies , Dwarka is a bonafide work undertaken
during the period from June to July by me and has not been
submitted to any other University or Institution for the award
of any degree diploma/certificate or published any time before.

(Signature of the Student) date: / /2019

Name: Akshat Sharma

Enroll. No.:42161201717
 ACKNOWLEDGEMENT

I offer my sincere thanks and humble regards to JSW

LIMITED for imparting me valuable professional training
in LOGISTICS MARKET.

I pay my gratitude and sincere regards to ”MR. SUSHIL

NOWAL“, my project guide for giving me knowledge. I’m
thankful to him as he has been a constant source of helping
hand, motivation and inspiration. I am also thankful to him for
giving me suggestions and encouragement throughout the
project work.

I take the opportunity to express my gratitude and thanks to

members and staff of JSW Steel Limited who all cooperated
with me during my summer training.

Akshat sharma
 Table of Contents

S.NO.
 CHAPTER 1

INTRODUCTION

LOGISTICS

Logistics is generally the detailed organization and

implementation of a complex operation. In a
general business sense, logistics is the management of the flow
of things between the point of origin and the point of
consumption in order to meet requirements of customers or
corporations. The resources managed in logistics may include
tangible goods such as materials, equipment, and supplies, as
well as food and other consumable items. The logistics of
physical items usually involves the integration of information
flow, materials handling , production, packaging , inventory
, transportation , warehousing , and often security.
Logistics management is the part of supply chain management
that plans, implements, and controls the efficient, effective
forward, and reverse flow and storage of goods, services, and
related information between the point of origin and the point of
consumption in order to meet customer's requirements. The
complexity of logistics can be modeled, analyzed, visualized,
and optimized by dedicated simulation software. The
minimization of the use of resources is a common motivation
in all logistics fields. A professional working in the field of
logistics management is called a logistician.

Importance of Logistics Management

Logistics management important for the following reasons:
(i) Cost Reduction and Profit Maximization:
Logistics management results in cost reduction and profit
maximization, primarily due to:
 Improved material handling
 Safe, speedy and economical transportation
 Optimum number and convenient location of warehouses
etc.

(ii) Efficient Flow of Manufacturing Operations:

Inbound logistics helps in the efficient flow of manufacturing
operations, due to on-time delivery of materials, proper
utilization of materials and semi-finished goods in the
production process and so on.

(iii) Competitive Edge:

Logistics provide, maintain and sharpen the competitive edge
of an enterprise by:
 Increasing sales through providing better customer
service
 Arranging for rapid and reliable delivery
 Avoiding errors in order processing; and so on.

(iv) Effective Communication System:

An efficient information system is a must for sound logistics
management. As such, logistics management helps in
developing effective communication system for continuous
interface with suppliers and rapid response to customer
enquiries.

(v) Sound Inventory Management: Sound inventory

management is a by-product of logistics management. A
major headache of production management, financial
management etc. is how to ensure sound inventory
management; which headache is cured by logistics
management.

Activities involved in logistics:-

(i) Network Design:
Network design is one of the prime responsibilities of logistics
management. This network is required to determine the number
and location of manufacturing plants, warehouses, material
handling equipment’s etc. on which logistical efficiency
depends

(ii) Order Processing:

Customers’ orders are very important in logistics management.
Order processing includes activities for receiving, handling,
filing, recording of orders. Herein, management has to ensure
that order processing is accurate, reliable and fast.

Further, management has to minimize the time between receipt

of orders and date of dispatch of the consignment to ensure
speedy processing of the order. Delays in execution of orders
can become serious grounds for customer dissatisfaction;
which must be avoided at all costs.

(iii) Procurement:
It is related to obtaining materials from outside suppliers. It
includes supply sourcing, negotiation, order placement,
inbound transportation, receiving and inspection, storage and
handling etc. Its main objective is to support manufacturing, by
providing timely supplies of qualitative materials, at the lowest
possible cost.

(iv) Material Handling:

It involves the activities of handling raw-materials, parts, semi-
finished and finished goods into and out of plant, warehouses
and transportation terminals. Management has to ensure that
the raw-materials, parts, semi-finished and finished goods are
handled properly to minimize losses due to breakage, spoilage
etc. Further, the management has to minimize the handling
costs and the time involved in material handling.
(v) Inventory Management:
The basic objective of inventory management is to minimize
the amount of working capital blocked in inventories; and at
the same time to provide a continuous flow of materials to
match production requirements; and to provide timely supplies
of goods to meet customers’ demands.

Management has to maintain inventories of:

 Raw-materials and parts

 Semi-finished goods

 Finished goods

Management has to balance the benefits of holding inventories

against costs associated with holding inventories like – storage
space costs, insurance costs, risk of damage and spoilage in
keeping stocks etc.

(vi) Packaging and Labeling:

Packaging and labeling are an important aspect of logistics
management. Packaging implies enclosing or encasing a
product into suitable packets or containers, for easy and
convenient handling of the product by both, the seller and
specially the buyer.

Packaging facilities the sale of a product. It acts as a silent

salesman. For example, a fancy and decorative packaging of
sweets, biscuits etc. on the eve of Diwali, makes for a good
sale of such items.

Labeling means putting identification marks on the package of

the product. A label provides information about – date of
packing and expiry, weight or size of product, ingredients used
in the manufacture of the product, instructions for sale handling
of the product, price payable by the buyer etc.

Labeling is a strong sales promotion tool. The consumer who is

persuaded to read the label may, in fact, try to buy the product;
even though he/she had no such premeditation (advance idea).

(vii) Warehousing:
Storage or warehousing is that logistical activity which creates
time utility by storing goods from the time of production till
the time these are needed by ultimate consumers.

Here, the management has to decide about:

 . The number and type of warehouses needed

 . The location of warehouses.

The above two decisions depend on the desired level of
customer service and the distance between the supply source
and final destination i.e. markets.

(viii) Transportation:
Transportation is that logistical activity which creates place
utility.

Transportation is needed for:

 Movement of raw-materials from suppliers to the
manufacturing unit.

 Movement of work-in-progress within the plant.

 Movement of finished goods from plant to the final

consumers.
Major transportation systems include:
 Railways

 Roadways

 Airways

 Waterways

 Pipelines.

Objectives of Study

1. To study safety standards of logistics in JSW steel

2. To understand locomotive and track maintenance

3. To study road and rail dispatch account of company

4. To study major projects for expansion of plant in JSW steel

Limited

5. To study important activities of logistics in JSW Steel

limited.

CHAPTER 2
 COMPANY PROFILE

COMPANY PROFILE

JSW Steel Ltd. is an Indian steel making company based in

Mumbai, Maharashtra. It is a subsidiary of JSW Group. It is
one of the fastest growing companies in India with a footprint
in over 140 countries. JSW Steel is an Indian steel company
owned by the JSW Group based in Mumbai, Maharashtra,
India.JSW Steel, after merger of ISPAT steel, has become
India's second largest private sector steel company.
The Group set up its first steel plant in 1982 at Vasind near
Mumbai. Soon after, it acquired Piramal Steel Ltd., which
operated a mini steel mill at Tarapur in Maharashtra. The
Jindals, who had wide experience in the steel industry,
renamed it as Jindal Iron and Steel Co. Ltd. (JISCO). Jindal
Vijayanagar Steel Ltd. (JVSL) was set up in 1994, with its
plant located at Toranagallu in the Bellary-Hospet area of
Karnataka and External Areas of Andra Pradesh, the heart of
the high-grade iron ore belt and spread over 3,700 acres of
land. It is just 340 kilometres from Bangalore, and is well
connected with both the Goa and Chennai Port. In 2005, JISCO
and JVSL merged to form JSW Steel Ltd. JSW Steel has also
formed a joint venture for steel plant in Georgia. The Company
has also tied up with JFE Steel Corp, Japan for manufacturing
the high grade automotive steel. The Company has also
acquired mining assets in Republic of Chile, United States and
Mozambique.
 HISTORY OF COMPANY

In 1994, Jindal Vijayanagar Steel (JVSL) was set up with its

plant located at Toranagallu in the Bellary-Hospet area in the
State of Karnataka, the heart of the high-grade iron ore belt and
spread over 10,000 acres of land. over a decade. It also set up
a plant at Salem with an annual capacity of 1 million tonne. It
is on the threshold of a major expansion plan of adding 3.2
million tons per annum to its at Vijayanagar Plant to achieve
11 MTPA by 2011. It has established a strong presence in the
global value-added steel segment with the acquisition of a steel
mill in US and a Service Center in United Kingdom. JSW Steel
has also formed a joint venture for setting up a steel plant in
Georgia. The Company has further acquired iron ore mines in
Chile and coal mines in USA & Mozambique.The current
manufacturing capacity of company is 18 MTPA. In Aug 2014,
it acquired welspun Maxsteel Ltd in a deal valued at around
1,000 Crores.JSW has already acquired 3 MTPA(metric tonnes
per annum) Hot Rolling Plant in Dolvi Maharashtra (earlier
named Ispat Industries Ltd.).

JSW Steel Brand Analysis

 Parent Company
JSW Group
 Category
Iron & Steel

 Sector
Industrial Products and Chemicals

 Tagline/ Slogan
No Limits

 USP(unique selling proposition)

The largest private sector steel manufacturer in terms of
installed capacity

JSW Steel STP(Segment target positioning)

 Segment
Steel, flat steel products, long steel products, wire products,
plates

 Target Group
Infrastructure, Oil industry, automobile and construction
sectors

 Positioning
One of the key and strategic steel producer in the country
catering to almost all segments with range of steel products
JSW Steel SWOT Analysis

(a) Strengths
Here are the strengths in the JSW Steel SWOT Analysis

1. India’s third largest steelmaker with a combined capacity of

14+ MTPA hence enjoys economies of scale

2. High growth prospects with a consistently increasing

revenue and strong financial position

3. One of the lowest cost steel producers in the world

4. First steel producer in the world to use Corex Technology

for producing hot metals

5. Operates in both upstream as well as downstream sectors

(b) Weaknesses
Here are the weaknesses in the JSW Steel SWOT Analysis:

1. Limited portfolio diversification compared to industry

leaders

2. Less number of mines under its hood affects availability of

raw materials

3. Capacity utilization is not cent percent

(c) Opportunities
Following are the Opportunities in JSW Steel SWOT Analysis:
1. Increase in demand from all sectors in Indian & Global
world

2. Mergers & Acquisition to keep steady supply of raw

materials

3. Product development by investing more in R&D

(d) Threats
The threats in the SWOT Analysis of JSW Steel are as
mentioned:
1. Cyclical nature of steel industry needs to have efficient
process of production

2. Competition from existing and foreign players

3. Government and environment regulations

4. Changes in the prices of raw materials & end products

JSW Steel Competitors

Below are the top 3 JSW Steel competitors:
1. TATA Steel
2. SAIL
 3. Arcelor Mittal

OBJECTIVE 1 :- To study safety standards of logistics in

JSW steel

SAFETY ACTIVITY IN LOGISTICS

JSW Steel limited gives first preference to safety they normally

follow below mention safety measures:-

 Working at height

 Permit to work

 Lifting and handling

 Personal Protective equipment

 Road safety

 Machine guarding

 Electrical safety

 Confined space

 Conveyor safety

In JSW logistic department follows standard operating

procedures (SOP) while loading a vehicle

1. Whenever a vehicle enters into a company driver and helper of

the truck should wear reflecting jacket shoes and helmet
2. After that it enters into loading point in department the driver
should turn off the engine and goes outside of department

3. Then associate employee will keep some stopping blocks to the

vehicles to avoid the to and fro motion of the truck

4. Then fixes the wooden block on the surface of the truck to

avoid the jerking movement of the product

5. When the product is to be loaded in the truck by the crane on

the wooden blocks

6. Then it should be tightened by the chain

7. After that truck is ready to be dispatch from the company.

OBJECTIVE 2 :- To understand locomotive and

track maintenance

LOCOMOTIVE AND TRACK MAINTENANCE

Track maintenance is also called as P-way (permanent way). In

JSW steel track maintenance department consists of –

 150 man power

 9 gangs

 188 kilometers of railway tracks

 3 crossing points

Constructions of railway track

 The distance between two rail is called ‘gauge length ’
Different types of gauges are :-

 Broad gauge:- 1676 mm

 Meter gauge:- 1000 mm

 Narrow gauge:- 762 & 600 mm

Length of rail is 13 meter and there are two types of rail depending
upon weight they carry

1. 52 kilogram / meter

2. 60 kilogram / meter

SLEEPER

Railway sleepers, also called railroad ties, railway ties or

crossties, are an important railway component. Generally, the
rail sleeper is always laying between two rail tracks to keep the
correct space of gauge.Having been developed for more than
one hundred years, the railway ties need to meet the different
requirements of the various railway tracks. Different types of
sleepers are made:-

A. Wooden Sleeper :-

The sleepers made of timber are known as wooden

sleepers. These sleepers were widely used as the best type
of sleepers as they fulfilled all the requirements of an ideal
sleeper. But these are now backdated and not used widely
Advantages of wooden sleeper;-

1. Timber is easily available.

2. The initial cost of wooden sleeper is low.

3. They require few fastenings which are also simple to design.

4. These sleepers are easy to handle.

5. Suitable for all types of ballast.

Disadvantages of wooden sleeper:-

1.Difficulty in maintaining gauge of the track.

2.High maintenance cost.

3. Low scrap value

4. . The life span of wooden sleepers is minimum (12 to

15 years) compared to other types of sleepers.

B. Iron material sleepers:-

The sleepers usually made of cast iron are known as iron

sleepers. Due to growing shortage of timber to be used for
wooden sleepers, their high maintenance, cast and short
life, iron sleepers are now being widely used. These
sleepers are extensively used in India than other countries
in the world

Advantages of iron sleepers :-

 a.Uniform in strength and durability.

b. Gauge can be easily adjusted and

maintained.

c. The lateral and longitudinal stability of the

track is more.

d. Renewal is not frequent.

Disadvantage of iron sleepers:-

a. Require more quantity of ballast.

b. These sleepers are not suitable for bridges,

level crossing etc.

c. More damage during accident.

d. Iron is liable to rust

C. . Rein forced cement concrete :-

The sleepers made of reinforced concrete are known

as concrete sleepers. These sleepers are
constructed of rein force cement they are of two types
mono black sleeper and two back sleepers

Advantages Rein forced cement concrete

Long life span ( 40 to 60 years).

2. Require fewer fittings.

3. Adjustment of gauge is simple and easy.

4. They provide strong connections between rail and sleeper.

5. The lateral and longitudinal stability of the track is more.

Disadvantages Rein forced cement concrete

1. Initial cost is high.

2. Liable to break under rough handling or due to improper

design.

3. Renewal is little bit difficult.

4. The scrap value is nil.

SLEEPER DENSITY

The number of railway sleepers required to be placed

under the track per rail length is called as its railway
sleeper density .

It is generally given by the formula sleeper density=

M+x

Where m= length of one rail in yards

X= number of rail sleepers

M+4 , M+12 is sleeper density distribution on a board gauge

route and length of rail is 13m it means that 13+4= 17 , 13+12
= 25 respectively the sleepers will be used per rail on the route
 In JSW hot metal area M+12 density is implemented .

LOCO’S

JSW is having locos :-

 BHEL:- 350HP – 4 in no.’s

700HP- 38 in no.’s

1400HP-1 in no.’s

 SAN:- 800HP – 2 in no.’s

 DLW :- 1350HP-7 in no.’s

In total JSW is having 52 loco’ in service

ENERGY YARD

Energy yard or east yard is raw material unloading yard.Raw

material are:-

1. Coal ( directly sent to power pant):- It is the hard rock which

can be burned as a solid fossil fuel.

2. Iron ore (sent to beneficiation plant) :- They are rock and

minerals from which metallic iron can be economically
extracted

3. Dolomite:-It is an anhydrous carbonate mineral composed of

calcium magnesiun carbonate limestone
4. Limestone:- It is a carbonate sedimentary rock that is often
composed of the skeleton fragement of marine organisms such
as coral , soraminisera, and mollusks

 . 8 hours time is given for unloading a rake

TRX YARD:- ( Train examiner yard)

It inspect the condition of wagon and repairs it to become in a

good working condition. It consists of total nine lines where
three lines are for checking and six lines for parking .

NORTH YARD :-

In this yard only finished goods are loaded in rake.This yard

consists of:-

 20 full rake lines

 2 loading points having 4 lines (no. 2, 3, 7, and & 8)

 5 cranes in service

 200 wagons loading capacity / day

 15 tilters of 40 tones load capacity

Here finished goods are

 Hr coil

 Cr coil

 GI coil

 GA coil

 TMT bars

 Wire rods

 Billets

 Slabs

SOUTH YARD :-

It is raw material unloading and SLAG loading yard . It consists

of 28 lines

 6 wagon tipplers

 12 locos

 3 gates to enter rakes (gate no. 1,2,4)

 8 hours for free time

 17 hours for loading

 2 weigh bridges
 26 rakes / day enter into yard

Logistic department supply the rake to the wagon tipplers as

per the requirement handling system.

CUT TO LENGTH (CTL)

Cut to length means to cut the material according to customer

needs technically cut to length include so many processes like
cross cutting to length, uncoiling, various coils such as cold or
hot rolled carbon steel coils and straightening ,measuring and
stacking .

CTL – 5 having 6 -25mm thickness of the sheet

CTL – 6 having 1.6 -6mm thickness of the sheet

CTL – 7 having 3.5 -12mm thickness of the sheet

Production capacity of plant is 60,000 tons/month

Rated production is 75,000 tons / month

 Customers for CTL

 Retail customers (Banglore)

 Original equipment manufacturer(OEM)- Kirbi , Intra, L&T
 Auction
 Export
 Self consumption
CTL consists of 3 cranes for logistics

ANNEALED COTING LINE (ACL)

Annealed means heat and allow it to cool slowly in order to
remove internal stressess.The ACL can be used for annealing
temperatures of over 1,000℃ as needed according to variety. It
will stabilize quality at a high level through state-of-the-art
furnace control and high-precision tension control. What is
more, it also offers quality assurance devices such as an online
magnetic property measurement, coating thickness meter, sheet
thickness meter, sheet width meter, and surface defect meter.

Production o 300kg -15 ton weight coil and slit

Having 3 cranes – S01-10 ton capacity to lift

S02-10 ton capacity to lift

S03-15 ton capacity to lift

3 loaded points (from column no. 1-17)

Average dispatch of 10,000 ton / month

Cranes are hooked with belt 6mtr – length for coil & and 8mtr
for slit

HOT STRIP MILL

The steel is a hot metal which is in liquid state which goes

from 1HSM to Sms and it is processed slabs are billets are
produced. Slabs are then sent to hsm and slabs are turned into
coil by making it very thick . Hot strip mills in these days are
either conventional hot strip mills or strip mills for rolling thin
 slabs. The primary function of the conventional hot strip mill
(HSM) is to reheat the semi-finished steel slabs (rolled or
continuously cast) to the rolling temperatures and then to roll
them thinner and longer through a series of rolling mill stands
driven by large motors and finally coiling up the lengthened
steel sheet for its easy handling and transport.

HSM 1

Produced coils are shifted by road & rail internal shifting to the
CRM-1 by transfer car having capacity of 5 coils and 125 ton
capacity.

HSM 1 having 3 cranes for logistic department named as 68B

35 ton capacity

68C – 35 ton capacity

68C- 35 ton capacity

It is also having 2 bays

 Inner bay
 Outer bay – 2 tracks for loading point

HSM1 consists of :

 2 transfer cars to shift coils to coil roll mill

 6 transfer cars to shift coils from inner bay to outer bay
 1 grab of 25 ton capacity
 1 Tilter of 40 ton capacity

WIRE ROD MILL

 Wire rod mills are high speed mills capable of rolling of
smaller dimensions at high production rates, while at the same
time keeping investments and operating costs at the reasonable
levels. The objective of a wire rod mill (WRM) is to reheat and
roll steel billets into wire rods. The production of wire rods in
wire rod mills is subject to constant change. The growing
demands on the quality of the wire rods as well as on the
flexibility and cost effectiveness of the wire rod mills has
necessitated the development of new and innovative
technologies and processes. Wire rod mill consists of :-

 4 Electro magnetic cranes of SWL-15 ton

 1 Fork lifter of 6 ton capacity
 1 Transfer car of 20 ton capacity (SWL 15 ton)

Production of 5.2 to 22 mm diameter of the wire

OBJECTIVE 3 :-To study important activities of

logistics in JSW Steel limited.

ACTIVITIES

Logistics is also known as Physical Distribution management.

Logistics is an activity carried out by many different
companies for the physical distribution of goods.

For example – If you have to deliver a good from your

warehouse to a dealer, then you need to adjust the inventory
that you have in your warehouse (because goods are leaving).
Similarly, you need to have entries that the goods have left
from your warehouse and reached the dealer. In between, you
also need to ensure that goods are handled in the appropriate
manner and they reach in the desired condition to the dealer. If
there are any returns from the dealer, they have to be accounted
too

Logistics activities

(A) Order processing –

The Logistics activities start from the order processing

which might be the work of the commercial department in
an organization. The commercial department is the one
who ensures that the payment terms and the delivery terms
have been met and then processes the order from within the
company. Basically, the commercial team accepts the order
from the customer and places the order to the warehouse. If
the customer has given the payment, a commercial team
makes the entry into the system and tells the warehouse that
the customer has given an order of 10 units so the
warehouse needs to deliver 10 units.In many companies,
the entry from commercial also deducts the inventory in the
warehouse. So if the commercial team has given the go-
ahead for a purchase order of 10 units, the available
inventory will automatically be deducted by 10 units so that
double ordering does not happen. This is an important step
in logistics activities because any mistake in this step
(wrong entries of quantity, delivery address etc) can affect
the whole logistics process.
(B). Raw Materials handling –

Material handling is the movement of goods within the

warehouse. It involves handling the material in such a way that
the warehouse is able to process orders efficiently. Although it
may sound a mundane task, it is an important one and an
ongoing activity in any warehouse. For a small shop with
100 products, it is very easy to move one product from one
place to another. But IF this small shop was not sure WHERE
the products are kept, the shopkeeper will have to search for
the order and the product every time he receives the order. He
will have to search this in all the 100 products that he has and
then he will have to move the other products so that he can
give the ordered product to the customer. Now multiply this
scenario by 100 times. Warehouses of large companies are
sometimes half a mile or more in size. Imagine the amount of
material stored in the warehouse. If the warehouse manager
does not know where the material is stored and how he is going
to bring it to the dispatch center of the warehouse, he will be in
big trouble and his productivity and efficiency will take a big
hit. That is why materials handling is an important function of
logistics. Arranging material within the warehouse properly so
as to allow easy movement and dispatch material is an
important activity in logistics management. This becomes more
important as the warehouse grows in size.

Raw material coming from abroad through vessel (dry bulk

cargo) via sea route . Vessel contain no of hatches . Hatches
can be load different materials in one ship. There are 6
 different types of vessel with their draft measurement . Draft is
the bottom part of ship which goes inside the water due to load.

 Handy vessel

 Carrying capacity (cc) upto 40.000 empty with 10m draft

 Handy max(super max)—CC upto 60,000MT with 12m draft

 Panamax CCupto 80,000 MT with 14m draft

 Psot panama CC upto 1,00,000 upto 15m

 Cape size vessel CC upto 2,00,000 upto 18m

 Very large ore carriers(VLOC) CC upto 3,00,000 upto 22m(not

used in India)

Drafts measurement of the ports:-

a. Goa port – 14m

b. Chennai port – 12m

c. Manglore port – 14m

d. Krishnapatnam port- 18m

(C) Ware housing:–

If we take the example of JSW Steel this is consumer

durable company which are present all over India. Its
manufacturing might be at one point , but the distribution is
all across the country thus , warehousing plays a huge role
and is one of the important activity. The important point in
 warehousing is that the warehouse should be nearby to the
dealer or the distributors’ place and it should facilitate the
easy delivery of goods. If there was a product which was
from a branded company, but which takes 1 week to
deliver, then this product might not move as much in the
market as another product which is taking 2 days to deliver
even though it is unbranded .Thus, it makes sense for the
branded company to have a closer warehouse so that can
immediately deliver the goods. Once a brand establishes
itself in a new territory, the first thing it does is to lease a
new warehouse so that It can be closer to the territory and
closer to the end customers.The location of warehouses
also reduces the pressure on mother warehouse (large
warehouses which stock most of the products). When there
is a peak in demand or if there is a drop in production, these
warehouses can take the pressure of deliveries and they can
become interdependent to ensure delivery of goods to
consumers.

(D) Inventory control –

If a firm has 100 units of a product in stock, but the demand

is only of 10 units, then the company has uselessly invested
in 90 units. This is money which can be used as a working
capital and it is money on which banks are applying
interest. On the other hand, another firm had a demand of
500 units, but they have manufactured only 200 units
thinking that demand will be less. Now they have lost the
orders which is an opportunity cost. The perfect firm will
be one, which has manufactured 100 units, knows there
will be 50 units of demand and is ready even if demand
doubles. But they are continuously monitoring the demand
 and are ready for it without investing much in
manufacturing.With the above example, you understood the
importance of Inventory control in Logistics activities.
Inventory management is one of the most important
functions of logistics especially after the adoption of
various production techniques such as Just in time
manufacturing, lean manufacturing or other manufacturing
processes where the cost of inventory management is
brought down.

(E).Transportation –

Now we come to one of the major l ogistics activities which is

one of the most resources heavy and revenue heavy segment of
logistics. There is a single reason that transportation is costly –
Fuel. Be it petrol, Diesel or gas, fuel is costly, and it is mostly
consumed in transportation activities. This is why companies
spend lakhs to control the transportation expenses because it is
one of the highest variable expense to any company.
Transportation involves the physical delivery of goods from the
company to the distributor or dealer and from the dealer to the
end customer. Generally, companies are involved only till the
point delivery happens to the distributor or the dealer. The
distributor is then responsible for the delivery to the end
customer. However, transportation is a cost to the dealer as
well and reduces his profit – due to which the company has to
give higher profits to the dealer – to negate his costs.The better
the warehousing and the inventory management of a company,
the lower is the transportation cost for the
company. Economies of scale play a major role in the cost-
effectiveness of transportation. FMCG adopted “breaking the
bulk” method to reduce the cost of transportation and also to
improve functions of logistics as a whole.

(F).Packaging –

There are two types of packaging – One which the customer

sees on the shelf of supermarkets or hypermarkets where the
package appears attractive and makes the customer buy the
packages. The other is transport packaging where the products
are packed in bulk so as to avoid any breakage or spillage and
yet allow them to transfer huge volumes of the product safely
from one place to another. Packaging the product is a
responsibility of the logistics team because otherwise the
product will reach damaged to the end customer and this is a
huge cost to the company. This is why, especially in
export markets, a huge amount is spent in the packaging of the
product. The packaging may cost only 1-2% of the value of the
product, but if it is not right during transportation, it will result
in 100% cost due to the damage and loss of the product.The
above were all the functions of logistics and the logistics
activities which have to be taken care of in any major
company. Management looks at logistics in two different
ways.In one way, management looks at logistics as
interdependent systems. So transportation may be one system
and warehousing may be other. In this case, the cost of systems
as individuals is controlled and they are calculated
as individual costs in the books of accounts.In other
management styles, possibly where the products are large and
robust and not small units, the management considers logistics
as a whole and it is given its own individual header in the
 books of accounts. The different logistics activities are clubbed
together as one cost and the cost is brought down as the whole.

In JSW STEEL packaging:-

4 – straps for domestic coil

6- straps for special grade

8 – straps for export coil

Straps of 16 to 22 mm width

Wire rod mil (WRM) having production capacity of 0.6

million tons per annum(MTPA)

OBJECTIVE 4 :- To study the rail and road

dispatch account of JSW steel

DISPATCH

The role of transport is to facilitate the movement of goods.

This may be from points of manufacture, storage or pre-
positioning, to points of use; or between hubs and distribution
points; or hubs to end use; or distribution points to end use; or
return from end use back to hub and pre-positioning points or
manufacturers. The source and destination may be in the same
country, or one may be in a different country requiring
international movement.JSW Steel Limited uses two different
modes to dispatch their material by road and rail .

Road Transport :-
If an organisation decides to acquire its own vehicles, there are
a number of areas to be considered. The type of vehicle, in
terms of the chassis-cab and the body type, needs to be
determined. The nature of the operation may also require that
mechanical handling aids need to be incorporated into the
overall vehicle specification

Advantages of road transport

The advantages of owning vehicles include:

 vehicles can be built specifically to carry a particular

product. Special equipment for materials handling can be
attached.
 the driver can be specially trained and will fulfil the
'ambassador' role for the organization.
 vehicles can carry the company livery, perhaps the aid
organisations logo and, where appropriate, the Red Cross;
and management retains total control over the vehicle and
its operation.

A major disadvantage - Management of the transport function

can occupy a great deal of management time, requires
specific expertise and significant capital investment. In
contrast, third party carriers can often provide more cost-
effective transport facilities but careful consideration must be
given to the level of service required

BY ROAD :-

Vehicle type
1. 10 – wheeler --torus

2. 12 – wheeler --torus

3. 14 – wheeler -- torus and trailer

4. 18 – wheeler -- trailer

5. 22 – wheeler -- trailer

RAKE TYPE :

2--type wagons --BOST --27 WAGONS in one placement

BOXN--36 WAGONS in one placement

Types of product to be loaded

1.WRC----Wire rod coil

2. WRVC – Wire rebar coil

BY RAIL :-

Rail transport is a safe land transportation system when

compared to other forms of transportation. Rail transportation
is capable of high levels of passenger and cargo utilization and
energy efficiency, but is often less flexible and more capital-
intensive than highway transportation is, when lower traffic
levels are considered. Rail transport costs less than air or road
transport. It is very suitable for the movement of large load
sizes over longer distances, but it has the following
disadvantages:
 it lacks the versatility and flexibility of motor carriers since it
operates on fixed track facilities. It provides terminal to
terminal, rather than point to point delivery services;
 though it offers an effective method of bulk haulage, it is slow.
Documentation for movement by rail is controlled through the
rail waybill. The rail waybill is a non negotiable document. It
contains the instructions to the railway company for handling,
dispatching and delivering the consignment. No other
document is required expect for

international transport across borders, where enquiries should

be made locally as to the proper documentation needed.

In JSW Steel 24-25 wagons can with stand in the yard.

CRM1

After packaging the material it is send to logistic department

for onward dispatches . Each coil contain a sticker with weight
,destination, bar code, customer name etc. Dispatches of
material are done 3 cranes each 40T capacity to :-

a. direct customers

b. stock yard(secondary logistic

c. NY(rake activity),HSM2 (Hot strip mill), CY ,CRM2 , CTL5

&7

These internal dispatches are done by local transporters mainly

Balaji . Average dispatch is 200o ton / day and customer
complaint is “ZERO”. All coil are checked at three stages for
accurate delivery to customers:-
a. Bar code scanner

b. At weighment

c. By FG security manually

Various stages of dispatch system:-

1. Planning vehicle assign

2. Check in entry from FG gate

3. Loading start _ empty weigment

4. Loading end __ after loading completion

5. Shipment completion __ after load weightment

6. Shipment start__ after invoice generation

7. Shipment ends _ after unloading confirmation

CRM2

To separate dispatch department

a. Rail dispatch:-

All dispatches are done through rake . they have two tracks and
also have 2 ASRS ( automated storage and retrieving system)
where they can store 2000 coils with ten steps each step having
100 coils storage is done through two stacker cranes(30T
capacity)The plant capacity is 4.3MTPA.

Product CR coil :-
  CRCA----Cold roll cold annealed

 CRFH------ Cold roll full hard

 GI---- Galvanized iron

 GA------galvanized annealed

b. Road dispatch:

Loading is done through 35T capacity and yard length is 177m

and only TRCA, GI , and CRFH coil are loaded from here
before loading a vehicle they have a checklist which is checked
with the lorries that is vehicle no. , transpoter no. , uniform
platform , lashing, saddle, tarpaulins etc. Major customers are

 OEM

 Export

 Retail customer

INVOICING

(A) ROAD MODE:- aoance the vehicle is loaded then it comes

to logistics department for weighment . After weighment
invocing is done the following papers are checked before
invoicing:-

i. JSW gate pass

ii. Parking Number

iii. Manual gate pass issued by transpoter itself

iv. Empty weighment slip

v. Loaded weighment slip

After invoiving road permit of respective State will be

generated either online or manual and is attached with invoice .
Invoice consists of 4 copies after generation of invoice
simenatenously test certificate will be generated . Lr(5 copies)
is generated for frtight purpose . Then invoice is attached with
LR , TC and E---sugan and then the vehicle leaves the JSW
premises.

(B) RAIL MODE :- NY will confirm detail of product , loading

wagon with customer detail for invoice generation . Same
invoice will be generated and mode of transport will be
Indian railway . After invoicing will make RR with
coordination of railway department . Rail will carry invoice
copy . Invoices are send to customer through courier .
Orignal invoice are required to receive the material.

ROAD AND RAIL DISPATCH ACCOUNT

(a) Rail dispatch accounts

Two types of account

Receivable account and payable account

Account payable section :-

• Rail freight payment

•Road freight payment

•Handling and transportation payment

•Port related bills payment

There are different divisions of railway example south

western railway, south central railway, etc The material
coming from all the railway division are paid rail freight.
Payment is done through E-payment .Per day payment is to
the tune of 12-14 CR . Approximately montlhy payment is
200-300 CR.

Respective branches send the bill to account department.

Date for submission of bill is every 10th,20th ,30th of each
month. Payment made after 30 days of bill submission.

Process of payment

• Bills received

• LR checked

•Bills checked as per work order

• SAP entry

•Sales audit department for clearance

• Final payment through RTGS

(b) Road dispatch account

2 types (1) to pay (2)prepaid

(1) To pay- total responsibility of the customer

(2) Prepaid- company's responsibility of the delivery.

Freight is paid by JSW after shipment ends. Once the
shipment ends the transporter will generate his own
bills along with LR copies, signed and stamped by the
customers, and he submits to A/c department. Bills
submission dates are 10th, 20th and 30th of each
month. Payment made after 30 days of bill submission.
Any delay in delivery Rs.200/per day delay charges are
deducted from his payment. Payments are made on
every 10th, 20th & 30th of month.

Payment process same as Rail payment process as above.

Objective 5 :- To study major projects for

expansion of plant in JSW steel

PROJECTS

It is related to creating infrastructure for expansion of

plants __ existing and with new project both.

Major projects:-

• Went project- north yard to Toranagallu station track

no.& 7 and 8

• Darogi connection to cement plant

•Tippler rail and modification at South yard

•Additional track connectivity at North yard

•Additonal lines at cement yard

•Track doubling HSM 1to north yard

•Track connecting to CPL

PLANNING AND CONTRACTS

JBC(job based contract)

- packing contracts

- wagon covering

 .Goa
 NMPT
 PKPK
 Chennai
 Ennore port

MBC(man power based contact)

Maintainance of loco and tracks

JBI(job based intermittent)

Packing :

 Wood
 Hooks
 Strap
  Trapalling

LIST OF ABBREVATIONS USED IN REPORT

P-way Peremanent way

BHEL Bharat heavy electrical limited

SAN storage area network

TXR train examiner yard

CTL cut to length

SPCL steel processing center limited

HSM hot strip mill

WRM wired rod mill

BRM bar rod mill

CRM customer relationship management

 BIBLOGRAPHY

1. WEBSITES

(A) GOOGLE

(B) https://www.jsw.in/steel

(C) https://en.wikipedia.org/wiki/JSW_Steel_Ltd#targetTex
t=It%20is%20one%20of%20the,largest%20private%20
sector%20steel%20company.

(D) https://www.marketing91.com/logistics-activities/

2. MAGAZINES (of different cement companies)

4. NEWSPAPERS

- economic time,

- business standards