JAC presentation

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)


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


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


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


Prepare the PO from sugg.

Main Inventory controller


Receive PI from Supplier


Check prices and P.Nos.

Supplier to send final PI


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

JAC presentation

Documents

Transcript of JAC presentation