Improvement in utilisation of internal and external logistics in Hall Longmore

Abstract

In Operations research that maximizes process utilisation is one of the key factors in creating and maintaining a business or process at an optimal and profitable level. Minimization of unnecessary costs as well as time wastages will assist in achieving maximum outcome. The on-site trucks, used as inter-plant transportation, are vastly underutilised and monthly fixed amounts, paid per truck, are being wasted when trucks are stationary. It means that salaries are being paid for no work done for a number of days per month and no profitable work comes from this. There are various reasons for delays such as slow production, breakdowns, loading crews that aren’t ready, weather, paper-work and others that were investigated. The workers to work ratio is also out of balance. This can also be seen as a form of under-utilisation as the trucks aren’t being used to their full potential. Investigation into the current situation and understanding limits and delays was done to solve this problem. There are no official records of truck usage or a tracking system currently available here. Thus time studies in comparison to other logistics companies will be done for better insight into how to handle the situation. Transporting of pipes from site to consumer also seems to be a problem area. There is a truck per customer and every customer doesn’t need a delivery every day. This brings up the question of under-utilisation of the equipment. Looking at the entire transport system, these findings will have a tremendous effect on the overall outlook on the transport services, not only on how to utilize it in a more efficient way but will have a significant positive impact on the company.