PHANTOM GLASS LTD.

SUBMITTED BY:
DHRUV KUMAR
11305472
ABHISHEK KUMAR
11305833
SPARSH PATHAK
11303596
INTRODUCTION

Phantom glass ltd. Is one of the leading glass manufacturing companies in India
having an installed capacity of 32 millions CSQM(600 tones per day) of float
glass.
Float glass is a sheet of glass made by floating molten glass on a bed
of molten metal
Modern windows are made from float glass.
And their plant is located in western India at a prime location.
This company is also manufacturing a variety of international quality glass
Contd..

They have a collaboration with world class manufacturer.

They provide world class quality of product and price are less as compare to his
competitor.
Even in the prevailing recessionary trends is the market the company registered an
increase of 9.3 percent in sales.
Market share is 20 percent.
In total production,35 percent is of premium quality glass used in the automobile
sector.
And 65 percent goes into other applications.
Financial result for the past four year (in
millions)
Particular 1997-98 1998-99 1999-00 2000-01

Sales 1768 2060 2250 2460

Gross profit 300 325 339.6 332.1

Net profit 44.2 41.2 43 44

 30 percent sales are generated through exports.
They have 4 regional office and 200 dealers.
 Organizational chart

Managing
Director

VP VP Material &
VP Technical VP Finance VP Marketing
Production Logistics

GM-
GM Material Customer
services

GM Logistics
Inventory Movement in last 12 months
Problems

They have no material storage facilities at regional level

Packaging cost is more due to odd sized product.
50 percent of crates is used in odd sized.
Taking lot of time to dispatch the product.
Fragile rate is high due to over storage in warehouse
Wastage of labor force
Contd..

Lack of coordination between the CSD and logistics department.

Spending much of their time in multiple manual entries.
Inventory is Rising.
Reasons

They dont have any regional level material storage facilities so after the
manufacturing the glass sheets are packed in wooden crates and kept at the
warehouse having area of 2500 sq meter
Logistics department acts on the instructions of CSD, Sometimes delay is there in
getting the information from the CSD causing in part loading of trucks, longer
waiting for trucks(penalties), delays in loading and improper utilization of
contract labor.
The packaging cost is high because the company allocate 50% of the crates for
glasses in odd sizes and they cost 8% of the production cost rather than the 5% in
normal glass packaging.
As the warehouse containing 600 racks occupying more than 250 sq meter of
floor area. Especially with A type racks costing 30% more space than normal
stacking crates. So they have space Constraints.
Contd.

With that space constraints they had to keep 250 CSQM of material per sq meter
but the international standard says company must keep 175 CSQM worth of
material per sq meter for the purpose of safety.
Chances of breaking the glass is certainly high as there are lot products that is to
be contained in a small space. This can cause breakage say when moving the
glass the forklifts have to be extremely carful not to make contact with other
racks.
The dispatching of products are late because the information from the CSD
causing in part loading of trucks leading to longer waiting for trucks, trailers. This
lead to penalties of Rs 1000 for the trailers and Rs500 for the trucks per day.
The waiting time in dispatching the trucks cost extra money for the labor(Driver).
And the productivity level at the department is very low as the workers only
make 2/3 loads per shift. They engage 5/6 groups per day to make the loads. All
this costs extra money.
Contd.

Inventory of the company has increased from million unit to 7.3 million unit In a
year, that is increase of 1.2 million unit. This is caused by over production of
product. The rate of production is more than the rate of selling causing the over
stockage.
The warehouse staffs spends most of their time entering manual entries. Without
bar coding system, material storage takes a lot of time.
Suggestions

Instead of single warehouse they should open regional storage facilities which will
help them in moving the sheets easily and will solve the problem of storage space.
There should be a proper management between the logistics department and the
CSD.
Should find a new alternate way to store the glass sheets safely, to save some
storage space.
Should use JIT for the sheets which are in odd sizes. Causing less Inventory.
Should pay attention to the group and people that they are working or not.
Should stop producing glass for some times so that the inventory can be used.
Should use automatic entries instead of manual.
THANK YOU
Reference

http://www.investopedia.com/terms/j/jit.asp
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