On Facility Layout For Workshop

Parcel Network Optimization
for India Post

Draft Workshop PPT
2-3 August, 2018
KPMG.com/in
Confidential : Draft for Discussion

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executed between Department of Posts and us (“Contract Agreement”).
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Statement of Confidentiality
• This presentation has been prepared by KPMG Advisory Services Pvt. Ltd. (‘KPMG’), an Indian private limited company
and a member firm of the KPMG network of independent member firms affiliated with KPMG International cooperative, a
Swiss entity.
• We have prepared this presentation solely for the purpose of providing select information on a confidential basis to the
management of Department of Posts (DoP) in accordance with the Contract Agreement dated November 16, 2016
executed between Department of Posts and us (“Contract Agreement”). It is subject in all respects to the terms and
conditions of the said contract agreement including restrictions on disclosure of this presentation to third parties.
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distribution of this report.
Sorting Facility Layout Designing
Facility Design Framework (1/3)
Sorting facility layouts is an outcome of an iterative design process
Overall facility design framework
Critical Inputs Option Iteration
Volume Process Flow

Outcome
Sort Method
Throughput
Facility
Storage Layout
Sort
Destinations
Equipment
Other
Assumptions Clearances
Critical inputs of the facility design framework has been explained below
Critical Inputs Explanation
Volume Number of articles that are required to be handled by the sorting facility
e.g. 3000 articles to be processed in the facility
Throughput Number of articles / activities that would need to be undertaken per unit time
e.g. 500 articles to be processed in the facility per hour
Sort Destinations Number of destinations for which the facility has to sort articles
e.g. 160 destinations including TD and NTD destinations for which the articles
would need to be sorted in the facility
Other Bag receipt schedules facility, bag dispatch schedules etc.
Assumptions e.g. 2 bag receipt schedules in the morning, 4 dispatch schedules in the
evening etc.
Above mentioned factors are the critical inputs required before designing any sorting facility.
Below is an short illustrative:

The size of a facility handling a volume of 3000 articles during a shift would be much larger than
the size of a facility handling a volume of 600 articles during a shift as they would need to process
articles at a throughput of 600 articles per hour vis-à-vis 60 articles per hour in other case
(assuming there are only 6 operational hours available during a shift of 8 hours). The number of
sort destinations would help in deciding the number of bins that need to be provided in the facility
for sorting. Some of the other assumptions like bag receipt schedule and bag dispatch schedule
would impact throughput requirement and could lead to higher or lower throughput requirement
than the above mentioned numbers and need to be planned for in the facility design.
Based on the inputs the decision on below aspects need to be undertaken for facility design which is an
iterative process and requires different designs to be made before choosing any one
Option Iteration Explanation
Process Flow The flow of processes and activities in the facility to manage the volume that
need to be handled at the desired throughput. This would typically depend on
the facility space available, physical constraints in facility etc.
Sort Method Dedicated sorting bins for all destinations vis-à-vis dedicated sorting bins for
high volume destinations coupled with single bins for multiple low volume
destinations (e.g. multiple destinations in sorting cases being sorted in the
same bin). This would again depend on the facility space available and the
volume of articles that need to be sorted for different destinations
Storage The bag holding area required for the bags received in the facility and bag
holding area required for the bags ready for dispatch from the facility. This
depends on bag receipt & dispatch schedules for identification of number of
bags and number of hours for which bags need to be held in the facility
Equipment The number of different equipment required would depend on the capacity of
each equipment to handle the volume and throughput requirements of the
facility. E.g. a high volume facility may need two bag opening tables while a
small volume facility may need only one.
Clearances Also, appropriate clearances need to be maintained between the different
equipment in the facility and also between different process areas so that
there is no restriction in the movement of people and equipment in the facility
Sorting facility layouts can be divided into different areas based on processes
Key areas in a Sorting Facility
Area demarcated for unloading of parcel bags into aligned empty bag trolleys
Bag Receipt Area
(roller containers)
Pre Sort Staging
Area demarcated for storing parcels that are yet to be sorted
Area
Primary Sorting
Area demarcated for primary sorting (preliminary sorting) of parcels
Area
Area demarcated for second level sorting (detailed sorting) of parcels for each
Secondary Sorting Area
destination
Post – Sort Staging Area demarcated for large sorted parcels or bags closed for further
Area connections
Area demarcated for loading of parcel bags into vehicles from aligned trolleys
Bag Dispatch Area
carrying closed bags
Returns Processing Area demarcated for processing articles being returned to shipper
Area demarcated for any data entry related work and also for a facility’s overall
Data admin
data administration
Area demarcated for stationary and consumables required in the facility for a
Storage area
short period of time
Critical areas in the facility are allocated based on the process flow
Overall flow of activities and processes in a typical sorting facility
Bag Receipt Area
Bag Dispatch Area

Pre Sort Primary Secondary Post Sort
Vehicles with bags depart from the facility

Staging Sorting Area Sorting Area Staging
Vehicles with bags arrive at the facility
Area (Preliminary (Detailed Area

sorting) Sorting)
Bags are unloaded &
Bags are loaded &

dispatched
Bags Bag weighing
received
Bag opening, Secondary

arranged in bag routing
article receiving sorting, bag
trolleys in label printing &
& primary sorting closing and
order of pasting and
done using sort manifest
priority for bag staging
application printing done
processing done
Manual sorting facility design with Direct Sorting for 192 destinations
Bag Pre Sort Bag Primary Post Sort Bag
Secondary
Receipt Staging Opening Sorting Staging Dispatch
Sorting Area
Area Area Area Area Area Area
SWS
E
P P P
BB BB B BB BB
Staging Area
15’ Primary Secondary
Post Sort
Bag Opening
5’ Sorting Area
Area Sorting Area
B
B
12’
BB BB B BB BB
Station 1
Station 3
Station 5
R246
P
P
WIP
T
T
B BB BB 10’ B BB BB B
R R’
R’ R
5’ WIP 2’
135
B
B
B
WS
B
B
WIP
WIP
WIP
WIP WIP WIP WIP
4’
Bag Dispatch
8’ 6”
B
B
Common Aisle
Area
Receipt
Area
B
Bag
WIP
WIP
WIP
B
WIP WIP WIP

P
WIP
WIP WS
WIP 135
2’ 2’
Staging Area
B
B
6’ 6’
T
Bag Opening
B
B
BB BB B BB BB
Staging Area
4’
Pre Sort
Area
Station 2
Station 4
Station 6
Post Sort
R R’
R’ R
E R246
BB BB 8’ 8’ B BB 5’ BB
B
B
Primary
Sorting Area
12’ B BB BB B BB BB
E
B
WIP
WIP
WIP
WIP
Large E E E
BB BB B BB BB
E
B
B
Package Data admin & booking area Returns Processing and holding area
B
B
Processing
P
P
BB BB Area
P D P D P D P D P D BBBB B BB BB
- Bag Opening - Work in progress

B - Bag Trolley SWS - SWS T R - Reject Station - Bag stands - Manifest WIP D - Table
Table package trolley
- Package - Primary sort - Bag weighing system printer
- Computer P # R’ - Return Station WS - Thermal WIP - Work in progress - Opening
Trolley station no. & label printing area for docks
printer bag trolley
Note : The above diagram is made to scale to only depict the clearances required for various equipment and process areas
Manual sorting facility design (1/4)
Design explanation of critical process area
Design Explanation
Element
Volume & • The facility shown previously is designed to process ~8400 articles in an 8 hour shift
Throughput wherein 6 hours of operational time is available leading to a throughput requirement of
1400 articles per hour (i.e. 8400 article / 6 hours = 1400 articles per hour)
Sort Method • It is assumed that all the sorting destinations are high volume destinations and require
dedicated bins / bags in the facility.
Bag Receipt • Minimum 15 ft. width of the bag receipt area to facilitate line-up & movement of bag trolleys
Area (roller container) to receive bags
• Dock size of 12 ft. is assumed to enable docking of vehicles for unloading of bags to be
received into the facility from the vehicles
Pre-sort • This area is designed based on number of 5 ft. x 3 ft. (L x B)size bag trolleys (roller
Staging Area containers) required for staging/holding the received bags
• One 5 ft. x 3 ft. bag trolley (roller container) is estimated to hold ~200 articles
• It is assumed that 4 hours of shipment inventory staging space is to be provided in the pre-
sort staging area. Hence, the total number of bag trolleys (roller containers) required in the
pre-sort staging area is = Throughput of 1400 articles per hour x 4 hours of staging
capacity requirement / 200 articles per bag trolley holding capacity = 28 bag trolleys (roller
containers)
• Hence, the pre-sort staging area has been designed to accommodate and stage at least
28 bag trolleys (roller containers) in order to hold 4 hours of inventory
Design Explanation
Element
Bag Opening • Bag opening area is designed based on the estimation of the number of bag opening
Area tables required for managing the facility throughput requirement of 1400 articles per hour
• One bag opening table is estimated to process ~350 articles per hour
• As a result, to process 1400 articles per hour, the number of bag opening tables required =
1400 / 350 = 4 bag opening tables
• Hence, 4 bag opening tables have been provisioned in the provided facility layout design
• Also, adequate clearances need to be provided between the bag opening tables. It is
estimated that ~10 ft. distance two bag opening tables is required for unrestricted
movement of bag trolleys
• Hence, the bag opening area has been designed based on above
Primary • In the primary sorting area, primary sorting (preliminary sorting) needs to be done for 1400
Sorting Area articles per hour
• Single primary sorting station is estimated to process ~700 articles per hour
• Hence, to process 1400 articles per hour, the number of primary sorting stations required =
(Preliminary 1400 / 700 = 2 primary sorting stations
Sorting) • Number of package trolleys in each primary sorting stations is = Number of secondary
sorting stations + 1 Dedicated package trolley for Rejects. It can be seen that a total of 6
secondary stations have been provisioned in the facility layout due to which the number of
package trolleys required at each primary sorting station = 6 package trolleys for 6
secondary stations + 1 trolley for sorting rejects = 7 package trolleys
• Minimum 4 ft. width of aisle is assumed for each primary sorting station for unrestricted
movement of package trolleys
• Minimum 8 ft. distance between bag opening table and primary sorting stations is assumed
to enable unrestricted movement of package trolleys, bag trolleys and people in the facility
Design Explanation
Element
Secondary • Secondary sorting area is designed based on the facility requirement to undertake
Sorting Area secondary sorting (detailed sorting) of 1400 articles per hour
• One secondary sorting station is estimated to typically handle upto ~250 articles per hour
including the bag closing activities
(Detailed • Hence, to process 1400 articles per hour, the number of secondary stations required =
Sorting) 1400 / 250 = 6 (5.6 rounded off to higher integer) secondary sorting stations
• The number of bag stands required at each secondary sorting destination is then
calculated as total number of 192 sorting destinations / total 6 secondary sorting stations =
32 destinations. Hence, each secondary sorting station needs to have bag stands to
enable sorting for 32 destinations
• A minimum clearance of 2 ft. is assumed between bag stands to facilitate sorting process
and also to facilitate removal of bags hooked to the bags stands
• A minimum clearance of 2 ft. is assumed for placement of computer stands at the start of
the secondary station aisle
• An additional 4 ft. clearance is assumed before the computer for placement of work in
progress package trolleys and also for placement of closed bags from the station
• Minimum of 8 ft. distance is assumed between primary and secondary sorting area to
facilitate unrestricted movement of package trolleys from primary sorting area to secondary
sorting area
Design Explanation
Element
Post sort • This area is designed based on number of 5 ft. x 3 ft. (L x B) size bag trolleys (roller
staging area container) required for holding the closed bags that need to be dispatched from the facility
• One 5 ft. x 3 ft. bag trolley (roller container) is estimated to hold ~200 articles
• It is assumed that 4 hours of shipment inventory staging space is to be provided in the
post-sort staging area. Hence, the total number of bag trolleys (roller container) required in
the post-sort staging area is = Throughput of 1400 articles per hour x 4 hours of staging
capacity requirement / 200 articles per bag trolley holding capacity = 28 bag trolleys (roller
containers)
• Hence, the post-sort staging area has been designed to accommodate and stage at least
28 bag trolleys (roller containers) in order to hold 4 hours of closed bags ready for dispatch
• However, since the post-sort staging area will have bags sorted according to schedules,
each bag trolley may not be filled up to its capacity. As a result higher number of bag
trolleys are provisioned for the post sort staging area.
Bag • Minimum 12 ft. width of the bag receipt area is assumed in order to facilitate line-up &
Dispatch movement of bag trolleys to facilitate dispatch of closed bags.
• Dock size of 12 ft. is assumed to enable docking of vehicles for loading of closed bags into
Area
the vehicles
Common • The facility has been designed in such a way in order to create a common aisle of least 8
Aisle ft. wide through the middle of the facility for the bag trolley, package trolley and people
movement in the facility
• Also smaller aisle of at least 6 ft. beside the bag opening table and primary sorting area
have been created in the facility to facilitate unrestricted movement of the package trolleys
in the facility
Thank You
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Parcel Network Optimization

for India Post

2-3 August, 2018

Confidential : Draft for Discussion

Critical Inputs Option Iteration

Volume Process Flow

Below is an short illustrative:

Bag Dispatch Area

Vehicles with bags depart from the facility

Area (Preliminary (Detailed Area

Bags are loaded &

Bag opening, Secondary

WIP WIP WIP

- Bag Opening - Work in progress

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