LOGISTICS REPORT:

DEPARTMENT INDUCTION

Name: GANESH SWAR

Designation: GET
Employee code: 49978
INDUCTION REPORT ON JSW LOGISTICS DEPARTMENT:
Logistics means repositioning of raw materials, work in process and finished goods from
one location to a specified destination at a reasonably low cost possible and within
specific time frame, to meet the demands of the customer/ any section of the
organization/ any department.
At JSW, Logistics department is divided into 2 sections, namely, inward section and
outward section. The inward section deals with the receipt of the raw material whereas
outward section is concerned with the dispatch of the finished goods. To meet the need of
receipt of goods and dispatch of finished goods, basically there 2 modes of Transport that
are preferred here at JSW.
Namely, (i) by road, (ii) by rail.
 The Logistics department in HSM-1-Coil Yard, HSM2, Bar mill-1&2, WR mill,
CRM-2 and CTL-5 are the loading yards for Rail Dispatch.
 The logistics department in BRM-1,BRM-2,CRM-1,CRM-2,HR-CTL,HSM-
1,HSM-2,SPCL,WRM has loading yards for truck dispatch.
About 70% of finished goods is dispatched by rail and rest by road, whereas the receipt
of raw materials is mostly done through rail.
The sections that are included in logistics are :
1. Receipt of raw materials.
a) Ports
b) South yard
c) Energy yard
d) Track hopper
2. Finished goods dispatch.
a) North yard
b) HSM 1/ HSM 2
c) CRM 1/ CRM 2
d) SPCL
e) CTL
f) BRM
g) WRM
Raw material handling section:
  The raw materials which are received are coal, iron ore lumps, iron ore fines,
fluxes like dolomite, limestone, bentonite etc.
 All of these materials enter through the South yard.
 The coal that is received is a mixture of imported and local grade where 80% is
imported and rest is local grade.
 Coal is important d from Australia, Russia, USA and South Africa.
 Coal is received by various ports across India, with custom clearance and then
dispatched to JSW through rakes powered by the Indian Railways.

Types of vessels that are handled at ports:

1. Handy vessel (capacity- 40000 tons) (draft- 10m)
2. Handy max ( capacity- 60000 tons) (draft- 12m)
3. Pana max ( capacity- 80000 tons) (draft- 14m)
4. Post Pana max ( capacity- 1lakh tons) (draft- 15 to 16m)
5. Cape size ( capacity- 2lakh tons) (draft- 18m)
6. VLOC- Very large ore carrier (capacity- >2lakh tons) (draft- 22m)
Major port: Chennai
Minor port: krishnapattnam
Trust port: goa(birth no.6)
South yard:
All raw material is received at this yard. There are 26 rail lines and 6 tipplers for rake
unloading of which 1,2,3,4 are single wagon tipplers and 5,6 are double wagon tipplers.
Main activities:

 Receipt & Weighment of Loaded/ Empty Rakes from Railways

 Placement of Raw Material rakes for Tippling / unloading
 Loading of G-Slag for Dispatch
 inspection & Handing over Rakes after unloading with Release Advices.
 Co-ordination with Railways.
 Placement of Indents on Railways for Outward Rakes.
Lines Position In Southyard
1. Line or track no.1 - Escaping line.
2. Line or track no.2 ,08 & 15 - In motion Weighment line.
3. Line or track no.3 ,9,10,16 ,
17,18,19,20,25 & 26 - Empty formation lines.
4. Line or track no.4 & 5 - Lines for placing rake for Tippler -02
5. Line or track no.6 & 7 - Lines for placing rake for Tippler -01.
6. Line or track no.11 &12 - Lines for placing rake for Tippler -04.
7. Line or track no.13&14 - Lines for placing rake for Tippler -03.
8. Line or track no.21 & 22 - Lines for placing rake for Tippler -06
9. Line or track no.23 & 24 - Lines for placing rake for Tippler -05

The main ports from where the raw materials are received from through vessels are as
follows:
 Goa port – MRH (draft-14m)
 Krishnapattanam port –PKPK (draft-18m)
 Chennai port – CHJD (draft-12m)
 Mangalore port –NMPT (14m)
When the vessel anchors at the berth , the raw materials are unloaded and dispatched to
JSW by means of rakes. Indian Railways is the power to these rakes for transport and It
allots 17hrs for loading. Once the rake reaches South yard through rail and the unloading
of materials is done at tipplers. The time available to unload and release one rake starting
from the time of placement is 8hrs after which demurrage charge of Rs.150/wagon/hour
is to be paid to the Indian Railways.
Track Hooper:
This section deals with unloading of raw materials too but this is mainly designed for
bottom discharge of raw materials. But for now the bottom discharged is discontinued
and side discharge system is adopted. BOBSN rakes are catering to the side discharge
system where the side doors are opened and the materials are unloaded into the hoppers.
Truck tipplers:
Truck tipplers are attending to the locally sourced ores that are transported through trucks
at the tippling stations.
Energy yard:
This section mainly assists the JSW Energy needs. The energy yard consists of 2 tipplers
and 6 lines. Amongst these 6 lines, 2 are used for inspection of the rake. The main raw
material unloaded in energy yard is steam coal.

Finished goods section:

This section deals with the dispatch of finished goods to customers both by road and rail.
About 70% of dispatch is done through rail and rest 30% is done by road. The main
dispatches done include HR, CR, LP and CTL products. The dispatch through road is
done through trucks and there are different type of trucks that facilitate the dispatching,
trucks that are generally used are as follows:
10 wheeler – 16 tons
12 wheeler – 21 tons
14 wheeler – 24 tons
18 wheeler – 28 tons
22 wheeler – 33-35 tons

The dispatches through rail are done in different type of rakes with different capacities
are as follows:

RAKE LOAD PER WAGON WAGON PER

WAGON LENGTH(M) RAKE
BOXN 66 TONS 9.78 59
BRN 66 TONS 13.71 45
BOST 63 TONS 12.8 45
BFNS 61 TONS 13.71 45
North yard:
It’s the main section that deals with dispatch of finished goods by rail. North yard is
consisting of 10roads, of which 4 are used for finished goods loading on to the rakes.
There are few equipments that are used in North yard. They are:
 Aerial coil tilter -capacity. 40 tons (2 nos.)
 Coil tilters – capacity. 40 tons (14 nos.)
 Cranes – capacity. 50 tons (7 nos.)
 Slab tongs – capacity. 40 tons (5 nos.)
Dispatch Procedure

HSM 1:
• Mainly Road dispatch directly to customer and Coil movement to North yard
/HSM2 for Rake loading.
• Two bays EF and FG bay.
• Two loading lines for rake each placing 7 wagons each.
Approx 400 coils shifted and moved per day
The handling equipments used here are as below:
 Inside yard: crane 68B capacity 25 tons
 Outside yard: cranes 68C capacity 25 tons and 68D capacity 30 tons
 1 nos. tilting machine capacity 40 tons
 2 coil cars capacity 25tons
 6 shifting cars.
HSM 2:
This yard consists of a storage area with 3 bays for hot rolled coils. These bays are EF,
FG and GH bays. The first two bays are production areas and GH bay is purely under the
control of the logistics. Logistics here handles loading on 2 tracks and the handling
equipments used are:
 Cranes : capacity 50 tons (4 nos.)
 Tilters : capacity 40 tons (5 nos.)
 Forklifts : capacity 40 tons (2 nos. )
 Grabs : horizontal (electric ) and vertical ( mechanical ) capacity 40 tons
The entire yard is managed using YMS (Yard Management System). Internal shifting
takes place through trucks and external dispatch through rail or road.
Internal shifting takes place through trucks from HSM-2 to NY.
Shifting takes place by wagon to CRM-2.
CRM 1:
This yard caters the needs of CRM1. The products that are manufactured are CRCA,
CRFH, HRPO and HRSPO. CRM1 operates mainly from 4 bays which are PQ, IH, RCL
and SPM bay. The PQ bay is for logistics and the other bays are also used due to space
constraint.
The handling equipments used are:
 Cranes –3 nos. Capacity 40 tons in PQ bay
Packing is done on the basis of the type of customer and also based on the customer
requirement, I.e., whether it’s domestic or export. Domestic goods are packed using 4
straps and exports are packed using 6 straps. A tarpaulin cover is placed on the coils for
aesthetic purposes and to weather proof it. There is also a skidding area in which manual
packing on saddles takes place for monsoon season.
Dispatch per day is about 2200-2500 tons.
CRM 2:
Logistics area at CRM 2 is the AB bay. The columns 20-55 are used for rail dispatch and
1-19 are used for road dispatch. The entire Logistics area is managed used YMS at CRM
2. The coils are carried and placed at the required location using a system known as
ASRS (AUTOMATIC STORAGE and RETRIEVAL SYSTEM) which is also managed
and maintained by YMS. The products produced are CRCA, GI, HRPO, HRSPO etc,.
The storage capacity of the yard at CRM 2 is 2000 coils.
The equipments used, at rail dispatch area are
 Cranes: 4nos capacity 30 tons and hook capacity 5 tons
 60 can be handled on two tracks.
For road dispatch we have:
 Cranes: 2 nos. capacity 30 tons
 Moving car saddles: 10 nos.
At ASRS, we have 2 stacker cranes.
Average dispatch:120000tons/month(by rake),50000tons/month(road)
CTL:
This section deals with the logistics support for cut to length products of HR and CR coils
manufactured. There are 7 CTL units supporting the requirements of customer.
At CTL 5, we have 1 crane (capacity 20 tons) for logistics requirement. At CTL 6, we
have 1 crane (capacity 20tons). At CTL 7, we have 1 crane (capacity 20tons) for logistics
requirements. Here we have both road and rail transferring.
SPCL:
Steel processing center limited logistics consists of :
 AB, BC, CD bays
 Column 33-45 comes under logistics finished goods yard.
 1nos. coil tilter ( capacity 5 tons)
 3nos. cranes/bay (capacity 15 tons), 2nos belts (4 tons)
 Grades of coils handled: HRPO, CRCA, CRCH, GI
  3nos cutting units at AB bay, 3nos cutting units at BC bay, 2nos cutting units at
CD bay
 Average dispatch:30000tons/month
WRM:
It has yard capacity of 10MT. It handles wire rods ranging from 5.2 to 22mm of low,
medium, high and special carbon grades. Dispatch is done through both road and rail. In
rail, the coils are loaded on BOST and BOXN wagons and by road, it’s is loaded on
trucks of capacity 10, 22, 25, 28, 34 tons.
The equipments used are
 1nos fork lift (capacity 5 ton)
 1nos shifting car (capacity 20 ton)
 4nos cranes N1-N4 of 15 tons capacity with electromagnet of capacity 8 tons.
 Storage capacity of the yard is 12000tons.
 Average dispatch is 45000tons/month.
BRM:
BRM 1&2 put together has a capacity of 2.2 MTPA. The section handles TMT bars of 8-
40mm diameter and angles in PQ bay. The goods are loaded onto BRN, BRNA and
BOST wagons on the track (1nos.). The goods are also transported by trucks having 14,
20, 22 wheels. Trucks are also used for internal shifting from SMS 2 & 3 to BRM.
The equipments used are:
 5nos cranes (capacity 25 tons) which can lift 3 bundles at a time using
electromagnets.
 BRM-1 has storage capacity of 55000tons.
 Average dispatch is 130000tons/month(BRM-1).
 Yard length for BRM-1 is 400m.

Loco-shed:
This section caters to the need of loco maintenance, track maintenance and loco supply
for internal shifting. There 50 locos owned by JSW, of which one loco (loco no.7) is
shifted to JSW Salem.
Locomotive details:
No of
DLW (1350 BHEL BHEL (1400
yards Locomotives
HP) (700/350 HP) HP)
deployed
SOUTH YARD 10 3 7
NORTH YARD/
5 3 1
WRM/BRM
HSM#2 1 1
ENERGY YARD 3 1 2
HMY 4MTPA 13 (8+4)
HMY 7/10 MTPA 9 9
STANDBY 5 1 4
MAINTENANCE 3 1 2
CRM-2 1
TOTAL 50 7 39 1

Maintenance schedule for locos:

Every loco is maintained and serviced in the loco shed stationed near the north yard.
Maintenance for each loco is scheduled 3 Times a month. There are 3 maintaining
schedules namely A, B1, B2.
 A schedule is followed from day1 to day 10 of a month.
 B1 schedule is followed from day 11 to day 20 of a month.
 B2 schedule is followed from day 21 to day 30 of a month.
But every day a health checkup team of 6 members and an engineer goes around all the
yards for routine inspection.
A locomotive comprises of following main parts:
 Engine
 Traction generator
 Traction motor
 Compressor
 Blower
 Control compartment
  Batteries
 Wheel and axle
 Bogey
Compressor is used for compressing air which is used for the application of brakes, horn
and engine governing.
Invoicing:
An invoice is a commercial document that itemizes a transaction between a buyer and a
seller. If goods or services were purchased on credit, the invoice usually specifies the
terms of the deal, and provides information on the available methods of payment.
An invoice is also known as a bill or sales invoice. This section functions as a
documentation unit. A commercial document is generated containing the overall data of
consignment. Then CSD will release material as per customer and PPC will plan the
schedule for Mills to roll the material accordingly, get back the information and release
material for selling. Depending on the customer advance payment or credit based
payment is accepted.
According to the rules framed by the Indian Government, excise duty is applicable for all
kind of goods manufactured by an industry. Excise duty is applicable on all the finished
goods manufactured by JSW Steel. The products that excised are HR coils, CR coils,
wire rods, TMT bars, slabs, slag cement and slag.
It also issues lorry receipt, way bills, register in E-sugam. Indian government has set the
excise duty of 12.5% and CST tax of 2%(interstate) and VAT of 2% for prime goods of
steel.
Passes: manual gate pass, parking slip, empty weighment slip, loading cum packaging
slip, lorry receipt

Way bills:
Particular states have brought up a suitable document to avoid fraud transactions of goods
between states. Some states like Andhra Pradesh , Gujarat , Orissa , Madhya Pradesh ,
Uttar Pradesh , Haryana , Rajasthan enquire for way bills which, is an authorized receipt
consisting of all the information regarding the goods being transported.
There are 2 kinds of transporter contracts. They are:
1.Pre pay 2.To pay
Pre pay:
This type is authorized by JSW which is responsible for hauling of the finished goods to
its customers. The truck receipt is SAP generated.
To pay:
In this type tenders are put up and contractors are selected based on the value of bids. The
responsibility for the security of goods is on the customers end.
ARE:
ARE stands for application for removal of excisable goods is an application that needs to
be submitted by an industry coming within SEZ to the Indian government . so according
to the Indian government , any industry coming under SEZ is applicable for exemption
from excise duty.
Initially excise duty is charged at the nominal rate which is later refunded back to the
industry.
E- sugam:
To get transparency in all ort of transactions, the Indian government brought E- sugam
into force. Under this all the transactions are made online.Following documents are
required for vehicle dispatch:
 Invoice
 Truck receipt
 E- sugam
 Way bill
 Test certificate
 ARE

Accounting:
There are 3 types of accounts.
 Accounts payable
 Accounts receivable
 Final accounts
The final account is the combination of accounts payable and receivable. Bills processing
and payments is related to rail freight payments, branch rake handling, road freight
payments and port related bills certification.
Rail freight payments:
These payments are made through web portal as E-payments to various railway divisions
like Konkan railways, South Central railways, East Coast railways, Southern railways
and South Western railways.
Payments to:
1. South Western railways
 F.G. dispatches freight
 Incoming IOF payments
 Coal from Goa port
 Slag and cement
2. Southern railways
 Limestone and dolomite
 Coal from Mangalore and Ennore
3. Konkan railways
 Limestone from Jaigadh
4. South Central railways
 Limestone and dolomite from MLK, VDI, PGDI
 Coal from Krishnapattanam
5. East Coast railways
 IOF rakes from Chattisgarh
o Near 4% of IR revenue generated by JSW Logistics.
o SWR Zone’s 75% of revenue is generated by JSW Steel Ltd.
Road dispatch accounts:
 Submission of bills should be done by 10th, 20th, 30th of every month
 Also payments of bills need to be done on 10th, 20th, 30th of that month.
 HR,CR,WR,TMT are dispatched by road.
 Kataria and Balaji are the transporters.
Strategy,SAP,Railway liasioning:
 Deals with the planning of raw material inward.
 Import is done 60% by rake and 40% by road for iron ore.
 Rake tracking number is generated once the rake is loaded.
 Coordinate with Indian railways.
  Calculate the service tax against the import of raw material and give it to the
railways.
 CSR activities: provided dustbins to SWR.

PROJECTS:
Major ongoing projects:
Project head Project name qty Completion date Cost crs

Capex BF3/4 emergency escape line 1 km May 2017 2.5

Additional lines at north yard 1 line May 2017 0.7

Cement palnt Cement yard modification for 1.9 km Sept 2017 5.0
mechanized loading

12 mtpa bal. SMS-1:New pouring station 1 km May 2017 8.0

track

MGP 1 km Feb 2017 1.5

Total 17.7

Major ongoing projects :

ParticularsProject Project name Qty Completion date Cost crs
head
equipments wagons BFNS Wagons 2 set Jun 2017 33.0
Locos Locomotives for 12 8 nos May 2017 44.9
mtpa balancing and
other equipments for
LSC
Total 83.9
TQM:
TQM is the integration of all functions and processes within an organization in order to
achieve continuous improvement of the quality of goods and services.
THE GOAL IS CUSTOMER SATISFACTION.
0757 Concept:
Zero
 Zero defects
 Zero waste
 Zero injury
Seven QC Tools
1. Cause and Effect Diagram
2. Check sheet
3. Histogram
4. Pareto Diagram
5. Scattered Diagram
6. Control Chart
7. Stratification
Five S’
1. Sort
2. Set in Order
3. Shine
4. Standardize
5. Sustain
Seven Wastes (TIMWOOD)
1. Transportation waste
2. Inventory waste
3. Motion waste
4. Waiting time waste
5. Over process
6. Over production
7. Defects
KAI-ZEN (Continual Improvement)
2 KAIZENS /Per Section /Per Month
One Point Lesson
 A One Point Lesson is a 5 to 10 minutes learning tool, which normally take less
than 15 minutes to write. It is a lesson on a single topic/point, on one sheet of
paper.
 It normally consists of 80% diagram and 20% words all produced by hand.
 2 One Point Lesson / Section/Month
POKA-YOKE (Mistake proofing)