ONE TEAM
ONE FAMILY
OUR SLOGAN
Maximize profitability
Minimize cost
y
Kaizen Concept
Non stop
improvement by
every individual in his
area
HOW TO MEET THE CHALLENGE
Store Keeper Jonaid
Picker/DriverJahangir
Picker BinnerZia(Terminated)
Picker Binner Prasad
Picker binnerFaisal
JAC CPD Manager Rasheed Khan(Terminated)
Picker BinnerSaad (repl)
Group Parts ManagerYounis Fareed Khan
2015 Organization JAC CPD
Picker BinnerImran(Terminated)
Parts Mgr. 1
CPD Mgr. 1
Brs.Controller 1
S/Keeper 1
Pickers 6
Total 10
Branches ControllerNooruddin
Store Keeper Jonaid
Picker/DriverJahangir
Picker Binner Prasad
Picker binnerFaisal
JAC CPD Manager Syed Fazal Haq
Picker BinnerSaad (repl)
Group Parts ManagerYounis Fareed Khan
2016 Organization JAC CPD
Parts Mgr. 1
CPD Mgr. 1
S/Keeper 1
Pickers 4
Total 7
JAC Riyadh
Br/ ManagerFazal
PickerFarhad
PickerHari
JAC Jeddah
JAC Qassim
SalesmanZakir
CleanerIbrahim
Salesman Osman
Store Keeper Suhail
PickerAbdallah
SalesmanM.Khalifi
JAC Dammam
JAC Khamis
SalesmanAbdulaziz
Group Parts ManagerYounis Fareed Khan
2015 Organization JAC Branches
Store KeeperEricson
Store KeeperAsif
PickerHayat
SalesmanRazi
SalesmanHaroon
W/S Ctr CV
Saad
W/S Ctr PV
Arshad
Br. Manager 1
S/Keeper 3
Salesman 8
Pickers 5
Total 17
JAC Riyadh Br
Store keeperFarhad
SalesmanArshad
Picker binnerHari
JAC Jeddah
JAC Qassim
SalesmanZakir
PickerHayat
Salesman Osman
Workshop Counter
Saad
Parts manager TBA
JAC Dammam
SalesmanM.Asif
Group Parts ManagerYounis Fareed Khan
2016 Organization Group Branches
Store KeeperEricson
Store KeeperAdnan
CleanerIbrahim
AUCRiyadh
AUCJeddah
Gulf Motors
salesmanSazzad
SalesmanTBA
Parts sale &W/H in/ch
M.Khedr
Gulf Motors
Salesman 1
AUC
Salesman 1+1 TBA
Total 17
JAC Branches
P/M + S/Man TBA 1+1=2
S/ K +Salesmen 4+5=9
Picker 3
Total 14
Store KeeperSuleman
SalesmanTBA
5. Manpower Manpower
0
5
10
15
20
25
30
18
23
27
21
12
JACGulfAUC
2013 2014 2015 2016 2017 2018
KPIs
KPIs are the manager’s powerful tool to measure the performance of his department but he needs to set challenging
but achievable targets for all areas. Part Sales KPIs: sales achievement against the set target , sales
per salesman , sales per category , GP and discount controlParts Inventory KPIs: MOS (month of stock ),Inventory fill rate
DHL ratio to total stock orders , obsolete stock ratio to total stock and stock turn ratio
Ware houses operation KPIs: Service rate from CPD to branches , Service rate from branches to workshop , Job card
closing rate , Picking rate , binning rate.
1. Sales
2. Facility
7. Inventory
3. Operation
6. Marketing
4. Logistic
5. Manpower
8. Cost Reduction
Parts Department Structure
9.1 m
11.8m
9.8m
1.3m
0.7m
JAC = 9.8mGulf = 1.3mAUC = 0.7m
1. Sales
6.4 m
9.1 m
Parts sale achieved and Target 2016
2013 2014 2015 2016 2017 2018
JAC
GULF
SALES TARGET 2016
Total 11 , 854,431
1. Sales
Gulf 4,305 111,921 107,616 116,225 107,616 116,225 111,921 90,397 116,225 81,788 116,225 111,921 111,921 1,300,000
AUC RYD 1,325 34,437 33,113 35,762 33,113 35,762 34,437 27,815 35,762 25,166 35,762 34,437 34,437 400,000AUC JED 993 25,828 24,834 26,821 24,834 26,821 25,828 20,861 26,821 18,874 26,821 25,828 25,828 300,000Total 2,318 60,265 57,947 62,583 57,947 62,583 60,265 48,675 62,583 44,040 62,583 60,265 60,265 700,000
AUC
BRANCH Net Net Net Net Net Net Net Net Net Net Net Net Net NetRiyadh JAC 16,023 416,598 400,575 432,621 400,575 432,621 416,598 336,483 432,621 304,437 432,621 416,598 416,598 4,838,946Riyadh sedan 3,270 85,020 81,750 88,290 81,750 88,290 85,020 68,670 88,290 62,130 88,290 85,020 85,020 987,540 Jeddah 5,300 137,800 132,500 143,100 132,500 143,100 137,800 111,300 143,100 100,700 143,100 137,800 137,800 1,600,600Qassim 4,322 112,372 108,050 116,694 108,050 116,694 112,372 90,762 116,694 82,118 116,694 112,372 112,372 1,305,244Dammam 2,690 69,940 67,250 72,630 67,250 72,630 69,940 56,490 72,630 51,110 72,630 69,940 69,940 812,380Khamis 3,007 78,182 75,175 81,189 75,175 309,721Total 34,612 899,912 865,300 934,524 865,300 853,335 821,730 663,705 853,335 600,495 853,335 821,730 821,730 9,854,431
APPROVAL
Branch Net sale Cost GP % Salaries Rent Others Tot Exp Net profit %
Riyadh 5,826,486 3,204,567 2,621,919 45 337,297 36,800 30,000 404,097 2,217,822 38
Jeddah 1,600,600 880,330 720,270 45 72,540 90,000 20,000 182,540 537,730 34
Qassim 1,305,244 717,884 587,360 45 61,374 0 20,000 81,374 505,986 39
Dammam 812,380 446,809 365,571 45 48,316 80,000 20,000 148,316 217,255 27
Khamis 309,721 170,347 139,374 45 24,878 12,000 10,000 46,878 92,496 30
CPD 0 0 0 #DIV/0! 381,820 35,000 30,000 446,820 -454,850 #DIV/0!
Total 9,854,431 5,419,937 4,434,494 45 926,225 253,800 130,000 1,310,025 3,124,469 32
GULF MOTORSRiyadh 1,300,000 715,000 585,000 45 94,344 50,000 12,000 156,344 428,656 33
Total 1,300,000 715,227 585,000 45 94,344 50,000 12,000 156,344 428,656 33
AUCRiyadh 400,000 220,000 180,000 45 59,760 70,000 10,000 139,760 40,240 10
Jeddah 300,000 165,000 135,000 45 51,738 100,000 12,000 163,738 -28,738 -10
Total 700,000 385,000 315,000 45 111,498 170,000 22,000 303,498 11,502 2
G.Total 11,854,431 6,520,164 5,334,494 45 1,132,067 473,800 164,000 1,769,867 3,564,627 30
Budget Summary 2016
APPROVAL
JAC1. Sales
How can we increase sales revenue and profit
Set sales target for each branch and each individual and measure the sale with set target on daily , weekly and monthly basis.
Apply parts Marketing methods Gain the customer loyalty by close follow up Train the sale staff for quality service Motivate the staff with bonus or incentive.
1. Sales
INCENTIVE SCHEMEMonthly
Basic Amount: 50% of the basic salary(current scale)
Target achievement is mandatory
Target and Points90-94%:0.8 ,95-99%: 0.9
100% : 1101-107%: 1.1
108-above:1.2Other Factors
GP ( Gross Profit ) Target & Points
40%- 44: 0.90,45-49:1 ,50-54:1.1 ,55 -above 1.2
1 Sales
APPROVAL
Operations
3
Stock Orders Process From Inventory Management to supplier
Print Suggested Orders
MAD X ( L/T + S/S + O/C)
Send PO to Supplier Excel File
Inventory controller
Edit the suggested order
Inventory controller
Prepare the PO from sugg.
Main Inventory controller
Inventory controller
Receive PI from Supplier
Inventory controller
Check prices and P.Nos.
Supplier to send final PI
Inventory controller
to confirm the order to Supp.
Inventory controller to
forward PI to logistic Mgr
3 Operation
CPD Manager post
actually received parts
Finance to do final
posting in the syst
Supplier
CPD Manager
Checker
Direct ship ( dhl)
S keeper & Binners
Inspection( stock )CPD mgr, to send
Short list to finance
Supplier to confirm & Settle the claim
Supplier to send
Short parts next ship
Inv. controller to
Send claim to supp
S/ keeper& Binners
Storage3 days 1 cont
CPD3 Operation
Deliver To
Warehouse Flow
CPD
ReceivingPickingPacking
Stuffing
Branches
Receiving
CheckingBinning
Supplier
3 Operation
Print Suggested Orders
Picker ( picking ) Store keeper
Automatic Stock Replenishment From CPD to Branches
Convert to transfer orders
Issue picking slip
CPD Manager
Checker( check & pack)
Checker ( dispatched )
Driver (Parts delivered)
S/Keeper (Exit 17 same Day
Jed, Dam, Qas = 24 hrs
Khamis 48 hrs)
3 Operation
Parts request Branch( S/K)
Picker (Parts picking) checker( parts checking )
Daily Parts request from branches to CPD
CPD Manager
CPD Store Keeper
Send picking slipChecker (Parts packing )
Driver (Delivery)
Br. S/K( Exit 17 every 2 hrs
Jed, Dam,Qas = 24 hrs
Khamis 48 hrs)
Checker (Dispatch)
3 Operation
Sale cycle cash customer
Parts picking
Picker Salesman
Acknowledge accuracy
Cash Counter
Salesman
Receive Order
SalesmanBR. Acct. (Final posting)
Checker delivery
Checker checking
Issue pick slip
Salesman
customer buyCustomer receiving
signature
customer return
Sup./approval
Salesman sign.
Part recd.good con
S/keeper sign.
sup. signature
3 Operation
Work Shop Parts Issuance Process
Branch Ware House
store keeper
Workshop
Cash
W/S clerk
Send System Req
Picker (Parts Picking)
Checker (Checking)
Parts receptionist Create System Order
Checker (Delivery)
Technician (Present Job Card)
Parts receptionist W/S Counter
Workshop
warranty
Issue Picking Slip
Warranty clerk
approval
3 Operation
Parts Marketing
Setting up market driveStrengthen after sale , sell more vehicles , sell more parts.
Mail shots , telephone calls and customer visits by senior staff, inviting customers to our facility for physical evidence of our excellent service , promoting the business benefits of the trucks and promoting the quality of service and parts that backs up the servicing, Promote genuine parts which ensures the long life of the vehicle.
Motor show , invite customer for new launching , Branch directory , product and pricing
information , remain closed to the customer and all that attract the customer loyalty ,
6 Marketing
InventoryMaximize the availability of parts and minimize the
inventory cost, order the right part on the right time with right quantity.
Ensure adequate parts availabilityEnsure excellent customer service
Ensure efficient and smooth distribution of partsto branches
Achieve adequate MOSachieve highest inventory fill rate
achieve highest customer service rateSystem ordering based on sale to minimize the risk
of obsolete stock
7 Inventory
7 Inventory KPIMOS
5030
30
15 128
MOS
7 Inventory KPI
2013 2014 2015 2016 2017 2018Availability
0.8
0.82
0.84
0.86
0.88
0.9
0.92
0.94
0.96
85%
88%
85%
90%
92%
95%
Inventory fill rate
Cost reductionMaximum utilization of man power
Fill the operational gaps , fill gaps in the process.Maximum utilization of space in the ware houses
Reorganize ware houses to save time and avoid losesSet KPIs and targets to measure the performance of
each individual.Minimize the inventory cost.
Stop cannibalization jobsMinimize DHL orders , fill gaps in stock orders.
Reduce the non operational expenses
8 Cost Reduction
1.JAC Manpower 2015 = 27 personsTotal cost of salaries = 1,121,150 SR JAC JAC Manpower to date = 21merged jobs together with the business running with the same frequency of output which is reducing the cost to 926,225 SR and we can save 194,925 per year.2.The current cost of cannibalization is 50 hrs per month X technician salary 10 = 500 SR P/M and 6000 SR P/Y. We will minimize and finally stop cannibalization jobs.3.Current cost of parts shipping from CPD to branches and branches to branches is 15,000 SR/month,we will minimize this cost to12,000 in the next 2 months and reduce further as much as possible in the next months to come. 4.DHL cost reduction is also the target but it is only possible when the stock orders become stable specially for Gulf motors and Foton. 5.Current ware houses operational costs are high because of many items are located in one location, the picker takes longer time to find the part . There is no location sequence and the picker has to jump from one to other row , parts are not located according to the ABC movement classes and this all leads to loss of time .We did a picking test with the current situation. It took us 20 minutes to pick 10 items and we had another test with 7 storage technique facilities on board , it took us 5 minutes to pick 10 items . Time is money. A well organized and orderly ware house will ensure accurate stock counting and protect against the losses.
8 Cost Reduction
Request to IT Department 1.Create pick slip option in all the branches , No part
to pick manually. 2.Divide the moving stock in ABC movement classes. Create
ABC movement classes based on movement. A, Fast moving B, Medium moving C , slow moving. 3.Create multiple locations in the system.
4.Create alternate location in the inventory posting sheet where the rough sheet items can be punched directly in the system and get accurate result and save time as regular sheets
Set ordering parameters in the system for Gulf Motors and AUC same as JAC based on the average sale of past 6 months = Order Level = MAD x(L/T+S/S)=MAD(4+4)
SOQ(Suggested order quantity)=O/L-(Stock O/H+O/O)
CPD ware house reorganization
2 Facility
Step 1
2 Facility
Need separate account in the system to separate NMS from active stock.
New Ware houseStep 2
2 Facility
PLAN
New Ware house Model
Step 3
2 Facility
SHELVING
New Ware house Model MezzanineStep 4
2 Facility
SHELVING
1. One part one location
3. Store the parts based on A,B,C movement classes as A. Movement class nearest shelves to dispatch area
B. Movement class nearer to dispatch area after A shelvesC. Movement class last rows of moving parts storage area
4. Store the parts based on weight , heavy parts lower shelves light parts waist level , volume parts separate but near 5. Easy reach
7. Tag multiple locations for bulk parts
2. Location sequence serial
7 storage techniques
6. Vertical location for Exhaust pipes , Glasses
Step 5
8 Cost R
eduction
LOCATING PARTS
4
3
2
1
4 3 2 15
C01
4
3
2
1
4 3 2 15
B01
4
3
2
1
4 3 2 15
C02
4
3
2
1
4 3 2 15
B02
4
3
2
1
4 3 2 15
A014
3
2
1
4 3 2 15
A02
A0224
A0135
Sub-shelf 2
Shelf 02
Each location used for only one parts number.
One part one location
Zone AShelf number 02Sub shelf number 2Location number 4
8. Cost Reduction
1. One part one location.
czationCCCPD2ؤؤؤ Facility
Sample
2. Location sequence serial.
8. Cost Reduction
3. Store the parts based on B. Weight
KGKGKG
KG
KG
KG
Store at upper waist level
KGKG
Store under waist level
X
8. Cost Reduction
3. Store the parts based on C. Volume
IrregularControleasy to determine
Stock Condition
Difficult todetermine
Stock Condition
8. Cost Reduction
4. Vertical storage
Store Horizontally Store VerticallyX
8. Cost Reduction
5. Easy reach.
EASY PICK & BIN AREAS
Stores Not At Easy Reach Areas Store Within Easy Reach Areas
X
8. Cost Reduction
1. Increase productivity and work efficiency.
2. Reduce cost.
3. Increase storage space.
4. Safety.
5. Ensure A clean, orderly working environment.
6. Maintain high quality.
Thank You