TABLE OF CONTENTS

Project Management Guidelines for IP

Krasnodar - SAR Project

Final Report

GUIDELINES
FOR MATERIAL STORAGE & HANDLING
IN THE CIGARETTE INDUSTRY

Author:
Design, Concept & Planning Group
PMI Engineering - 2005 I
version 4.0 / April 2005
Project Management Guidelines for IP
Guidelines for Material Storage & Handling in the Cigarette Industry

GENERAL INFORMATION

I.I DOCUMENT

S Title: “Guidelines for Material Storage & Handling in the Cigarette Industry”
S Edition : Version 4.0, March 2005
S Intranet : http://www.intranet.pmi/HQ/DEPTS/OP/FG/Engi/content/02_Func-
tionalGroups/Industrial_Projects/DCP/DCP_Logistics.aspx

I.II IMPRESSUM

S Printing and publishing

PMI Engineering SA, CH-2000 Neuchâtel, Switzerland

I.III COPYRIGHT©

The reproduction of this document, in whole or in part, is forbidden. No part may be

copied in any form, and cannot be used, edited or transmitted by any electronic
means (photocopy, photography, magnetic supports or other recording processes),
without the written authorization of PMI Engineering SA. All rights including reproduc-
tion, translation, edition, distribution and also industrial property and recording, are
reserved.

Printed in Switzerland

PMI Engineering - 2005 I

 Guidelines for Material Storage & Handling in the Cigarette Industry

II PMI Engineering - 2005

Guidelines for Material Storage & Handling in the Cigarette Industry

TABLE OF CONTENTS

Chapter 1. GENERAL INTRODUCTION 1-1

1.1. ACKNOWLEDGMENTS 1-1
1.2. MAIN MODIFICATIONS OF THESE GUIDELINES 1-1
1.3. OBJECTIVE 1-2
1.4. CHALLENGE OF THE LOGISTIC CHAIN 1-2
1.5. PMI FACTORY LOGISTICS 1-3

Chapter 2. DISTRIBUTION LOGISTICS 2-1

2.1. PRODUCT, PACKAGING AND PALLETIZING 2-1
2.2. NON TOBACCO MATERIAL 2-7
2.3. FINISHED GOODS 2-11
2.4. EXTERNAL HANDLING EQUIPMENT 2-17

Chapter 3. WAREHOUSE LOGISTICS 3-1

3.1. STORAGE 3-2
3.2. WAREHOUSING AND OPERATIONAL SEQUENCES 3-15
3.3. LOGISTICS EQUIPMENT 3-19
3.4. WAREHOUSE PROJECT 3-33
3.5. CHECKLIST FOR EXISTING BUILDINGS 3-57
3.6. WASTE HANDLING CONCEPT 3-57
3.7. ENVIRONMENT, SAFETY, SECURITY, CLEANING 3-59
3.8. STAFF TRAINING/ORGANIZATION 3-66

Chapter 4. LOGISTICS IN OPERATIONS 4-1

4.1. PRE-BLENDING & INFEED LOGISTICS 4-1
4.2. ADD-BACK LOGISTICS 4-5
4.3. CUT FILLER STORAGE & HANDLING 4-7
4.4. CASING KITCHEN LOGISTICS 4-9
4.5. FULL CASING KITCHEN 4-9
4.6. SECONDARY LOGISTICS 4-11

Chapter 5. SYSTEMS IN LOGISTICS 5-1

5.1. WMS WAREHOUSE MANAGEMENT SYSTEM 5-1
5.2. RADIO FREQUENCY 5-4

Chapter 6. APPENDIX 6-1

6.1. LOGISTICS CHECKLIST 6-2
6.2. C90 TECHNICAL DESCRIPTION 6-13
6.3. LOSS PREVENTION TASK FORCE 6-15
6.4. PALLETIZATION OF NTM 6-27
6.5. FINISHED GOODS PALLETIZATION COMPARISON 6-41
6.6. BATTERY SPECIFICATIONS 6-44
6.7. WAREHOUSE STORAGE LOADS AND FLOOR QUALITY 6-47
6.8. WMS TECHNICAL INFORMATION 6-49
6.9. RADIO FREQUENCY TECHNICAL DESCRIPTION 6-55
6.10. GLOSSARY 6-61

Chapter 7. REFERENCES 7-1

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IV PMI Engineering - 2005

 Guidelines for Material Storage & Handling in the Cigarette Industry

CHAPTER 1.
GENERAL INTRODUCTION
Contents of this chapter
1.1. ACKNOWLEDGEMENTS 1.1. ACKNOWLEDGMENTS
p.1-1
1.2. MAIN MODIFICATIONS
OF THESE GUIDE-LINES This manual compiles the past experiences gathered through our
p.1-1 affiliates and the industrial projects. This has been prepared by the
1.3. OBJECTIVE p.1-2 Industrial Project Group/Design, Concept and Planning in PMI En-
1.4. CHALLENGE OF THE
LOGISTICS CHAIN p.1-2
gineering in Neuchâtel.
1.5. PMI FACTORY
LOGISTICS p.1-3 The update of this manual became necessary due to technical de-
velopments in the field of storage and handling, as well as to in-
clude the experience gathered in realized projects.

In order for us to improve this document, any comments, feed-

back, experiences would be very much appreciated.

Special thanks to our affiliates, R&D and PMI HQ functions for

their support for the update of these guidelines.

1.2. MAIN MODIFICATIONS OF THESE GUIDELINES

The major modifications compared to the previous version (v.03)

are as follows :

S Tobacco palletizing (chap. 2.1.3.).);

S Common storage systems & methods (chap. 3.1.1.);

S Building infrastructure (chap. 3.4.8.);

S Appendix:
- Logistics Checklist (chap. 6.1.);
- C90 Technical Specifications (chap. 6.2.);
- Loss Prevention Task Force (chap. 6.3.);
- Casing Kitchen Supply Description (chap. 6.4.);
- Palletization of NTM (chap. 6.4.);
- Finished Goods Palletization Comparisons (chap. 6.5.);
- Battery Specifications (chap.6.6.);
- Warehouse Storage Loads and Floor Quality
(chap. 6.7.);
- WMS Technical Information (chap.6.8.);
- Radio Frequency Technical Description (chap.6.9.);
S Chapter 7. “REFERENCES”;

S Guidelines format has been revised.

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1.3. OBJECTIVE
The objective of these guidelines is to provide the necessary recommendations for:
S Distribution logistics;
S Warehouse and storage logistics;
S Production and waste logistics;
according to PMI specifications and others in order to fulfil the company’s logistic chain require-
ments and to avoid undesirable losses. At a given time, PMI has billions of dollars worth of materials
and goods in storage in warehouses and in process. These guidelines aim to ensure that the propre
quantity of materials arrive in good condition for production and that PMI products will reach the
consumer in proper time and in the proper quality.
Additionally, some chapters have been inserted in appendix, as technical references for various
technologies used in the field of logistics.

1.4. CHALLENGE OF THE LOGISTIC CHAIN

In agreement with all partners in the logistics chain, the correct material, in the right quanti-
ty and in the required quality must be in the right place at the right time.

Purchasing Logistics Sales

Finance
Production

Quality Health, Safety,

Asset Protection

Figure 1 : Every department is involved in logistics

Company logistics is an integrated entity. It links the company with the procurement market on one
side and with the sales market on the other. Therefore, the performance and the effect of logistics
reaches far beyond company boundaries. As business functions, production, sales and service
companies are elements of a logistics system.

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1.5. PMI FACTORY LOGISTICS

Procurement logistics Production logistics Distribution logistics

Tobacco / NTM Tobacco / NTM / Waste FG
External transport FG Storage
Goods receipt Internal transport Order picking
Control Buffer storage Packing
Stock placement Handling of material and Shipping of goods
waste

FMS
Factory Management
System

(EDI) WMS MRP WMS (EDI)

Production
Warehouse for Warehouse for
buffer Customers
Suppliers Tobacco &NTM FG
Production

Waste logistics
Packaging
Waste
Recycling Dust
Incineration : Material flow
Controlled
incineration WMS
: Information flow

Figure 2 : PMI factory logistics

Above is a typical diagram of logistics’ scope in PMI factories showing material flows as well as
information flows. Four types of tools can help to manage all the information related to logistics:
FMS: Factory Management System;
MRP: Material Requirement Planning;
WMS: Warehouse Management System;
EDI: Electronic Data Interchange.
To review a factory layout from a logistics point of view and to avoid forgetting key points, refer to
Appendix 6.1. “Logistics Checklist”.

1.5.1. MRP : Material requirement planning

The MRP is generally considered as the beginning of the logistics chain.
The MRP is often computerized and takes into account:
S Existing stock at the beginning of the period;
S Production planning during the period;
S Expected supplies during the period;
S Expected expenditure during the period;
S Variations of the security stock;

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S Resupply time.
It will then determine:
S What needs to be ordered;
S When it has to be ordered.

1.5.2. EDI: ELECTRONIC DATA INTERCHANGE

A real time communication system between the factory, its suppliers and its clients. Bar code label-
ling on the items gives standard messages all through the customer supplying chain.

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CHAPTER 2.
DISTRIBUTION LOGISTICS
Contents of this chapter
2.1. PRODUCT, PACKAGING 2.1. PRODUCT, PACKAGING AND PALLETIZING
AND PALLETIZING p.2-1
2.2. NON TOBACCO
MATERIAL p.2-7 2.1.1.Tobacco product
2.3. FINISHED GOODS p. 2-11 Tobacco related materials can be separated into two main
2.4. EXTERNAL HANDLING categories:
EQUIPMENT p.2-17

Products
Raw tobaccos (leaf and stems) that have been threshed but not
yet processed in a Primary.

Semi-products
Tobacco that has been partially processed such as Basic Blended
Strips (BBS) and reconstituted tobacco (CL/RL/RCB).
Add backs such as :
S Expanded Tobacco (ET);
S Improved Stems (IS);
S Small Lamina (SL);
S Ripper Shorts (RS);
S Off Specs (OSP).
Cut Filler (CF) being the completely processed tobacco ready to
use.

2.1.2.Tobacco packaging
Depending on the country of origin and the region of operation, the
tobacco packaging may be different. Hereafter an overview of the
principal units used.

Bales
Bales of oriental tobacco weigh between 25 to 55 kg depending on
the country of origin. Bales of leaf weigh up to 100 kg and are not
frequently used in Europe.

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Greek Turkish bale

bale

Figure 3: Oriental tobacco in bales

Cardboard boxes
C48/PS90/CP99
Telescopic cardboard boxes are most commonly used for raw tobacco and semi-products.
Dimensions vary between the boxes but all are designed to fit on a 800 x 1200 mm Euro pallet.

715
1138

TOP
TOP FLAP
C48/PS90 TOP FLAP
Inside volume: 0.567 m3
755

Outside volume: 0.592 m3

Weight of the case: 14 kg

BOTTOM

STRAPS

Figure 4: C48/PS90 cardboard box

711
1146
TOP
TOP FLAP
CP99 TOP FLAP
Inside volume: 0.534 m3
778

Outside volume: 0.634 m3

Weight of the case: 14-15 kg

BOTTOM

STRAPS

Figure 5: CP99 cardboard box

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C96
Telescopic cardboard box is being introduced for reconstituted tobacco and oriental tobacco.
Please, note that this case is half a C48 but has the same construction quality.

C96:
Inside volume: 0.290 m3
Outside volume: 0.308 m3
715 TOP
Weight of the case: 14 kg
1138

TOP FLAP

TOP FLAP

378
BOTTOM

STRAPS

Figure 6: C90 cardboard box

C90
Non-telescopic cardboard box is mainly used in Europe for products such as CF, IS and ET.

C90:
Inside volume: 0.581 m3
Outside volume: 0.643 m3
765
Weight of the case: 10 kg 1135

TOP FLAP

TOP FLAP
740

STRAPS

Figure 7: C90 cardboard box

For additional information, please, refer to:

S Appendix 6.2. “C90 Technical Description” ;
S Reference [45].

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PM80 (not used in Europe)

The PM80 consists of an open body and lid cover and is used in some regions for ET.

PM80:
Inside volume: 1.217 m3
Outside volume: 1.395 m3
Weight of the case: 41 kg

Figure 8: PM80 carton

Hogshead
The hogshead is mainly used in the US for leaf and reconstituted tobacco.

Figure 9: Hogsheads

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2.1.3. Tobacco palletizing

Store tobaccos on pallets or on wooden planks to avoid humidity and dirtiness.

Bales (Oriental Tobacco wrapped in Hessian)

There are 4 ways of stacking bales on pallets depending on their size: 2 types of PLAKA (the most
commonly used), KILITS and STIFA:

PLAKA storage KILITS storage

STIFA storage PLAKA storage for 100 kg bales

Figure 10: Tobacco bales palletizing

Figure 11: Tobacco bales in intainers

Intainers can be of various dimensions/capacities depending on the truck type.

For more details on intainers, refer to:
S Chapter 3.1.1.

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Cardboard boxes
Tobacco cartons are often stored without pallets and stacked on wooden planks. If palletized, three
cartons per pallet are practical.

705

1135

2365
11625
740

Figure 12: C48 palletizing

Summary of Tobacco packaging and palletizing :

PRODUCTS SEMI-PRODUCTS

Supplier leaf supplier PMI affiliate process plant

Storage 12-18 months 1-6 months

Product ORIENTAL LEAF STEMS BBS RECONSTITUTED CF ET/IS ET

Packaging Turkish/ (CP99) (CP99) (CP99) (CP99) (C99) hogshead C90 C90 PM80
Greek C48 C48 C48 C48 C96
bale

Length 680/750 1138 1138 1135 ∅ 1200 1135 1143

(mm)

Width (mm) 650/500 715 715 705 765 1086

Height 370/300 755 755 385 1220 740 1124

(mm)

Net weight 55/50 180/ 180/200 200/210 165 160 450 140 70 80
(kg) 28/35 200

Pallet Euro pallet 800x1200 mm no pallet 800x1200 mm no

pallet

Max. layers 1 up to 8* up to 8* up to 8* up to 8* up to 10* up to 6 up to 6* up to9* up to 6*

for bulk pallet C48 C48 C48 C48 CP96 hogshead C90 C90 PM80
stacking **

Height 1630 6040 755-6040 385- 1220- 740- 740- 1124-

(mm) 3850 7320 4440 6660 6744

*Depends on packaging quality, storage conditions, temperature and relative humidity.

** See Figure 10, Figure 53, Figure 54 & Figure 55.

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When tobacco C48 is stacked on pallets, the height should be limited to 8 high for new cartons
S Storage configuration = 5 plus 3
Or = 6 plus 2

Safety is of the highest priority! Environmental conditions, carton strength and unit weights must
be considered to apply best practices; with appropriate adjustments if required to reduce stack
heights.
On an exceptional basis only, 3 high for second hand cartons can be considered.
For C90, the recommended stacking height is based on test conducted in given conditions and with
clear cardboard specifications (see appendix 6.2.). If these conditions are not respected, a new test
has to be conducted.
Refer to:
S PMI quality document, reference [15] for additional information.

2.2. NON TOBACCO MATERIAL

2.2.1. NTM products

Each NTM item has an identification code made up of 6 figures. The first 2 digits determine the fami-
ly, as listed below, and the last 4 determine the item:

CODE FAMILY EXAMPLE

10 Ingredient (IG) 10
12 Solution (SO) 12.2026 aftercut almandine
20 to 23 Filter making 20.0002 plasticizer
30 to 34 Cigarette making material 32.0166 tipping paper
38 to 49 Cigarette packaging material 43.0794 aluminium foil reel
55 to 66 Carton and bundle material 60.0316 display carton
70 to 72 Shipping case material 70.9555 shipping case
80 Adhesive (AD) 80.1254 cigarette seam adhesive
89 Various (VA) 89

Figure 13: NTM code numbers

NTM warehouse stock capacity varies between 1 to 3 months according to the material, imported
or local.

2.2.2. NTM packaging

NTMs come in all different shapes and sizes depending on the product, the country, the supplier,
the transportation, the storage, etc.

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2.2.3. NTM palletizing

Most NTMs are delivered on pallets.
As an example, hereunder is a description of the NTMs used in manufacturing of Marlboro KS box
and Marlboro KS soft.
Refer to:
S Appendix 6.4. for illustrations of the palletized items.

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ITEM - MLB KS SOFT PM code Length of Theoretical usage Waste Usage Pallet or SU Area by pal- Qty of NTM per Total Pallet
bobbin (m) per mio cig. factor% / mio.cigs dimensions in cm let /SU (cm2) pallet/SU weight (kg)
Filter W L H
TRIACETINE 20.0001 9.001 kg 5.0% 9.45 kg 100 120 110 12000 580 kg 610.00
WHITE TOW 22.0150 112.834 kg 2.0% 115.09 kg 99 148 120 14652 616 kg 632.38
PLUG WRAP 23.0133 5500 3.819 bob 2.5% 3.91 bob 120 120 147 14400 200 bob 770.00
HOTMELT 80.0177 0.550 kg 0.0% 0.55 kg 80 120 109 9600 180 kg 224.40
LIQUID ADHESIVE 80.1254 0.367 kg 0.0% 0.37 kg 80 120 56 9600 300 kg 340.05
Maker
CIGARETTE PAPER 30.0618 7300 8.630 bob 3.4% 8.92 bob 120 120 147 14400 200 bob 1016.71
LIQUID ADHESIVE 80.1255 2.600 kg 0.0% 2.60 kg 80 120 98 9600 550 kg 625.87
TIPPING PAPER 32.2233 3400 3.971 bob 3.4% 4.11 bob 80 120 114 9600 76 bob 475.00
LIQUID ADHESIVE 80.0010 8.200 kg 0.0% 8.20 kg 80 120 98 9600 550 kg 625.87
Packer
BLACK INK 31.1847 0.020 kg 0.0% 0.02 kg n.a. n.a. n.a. 3 kg 0.00*
LIQUID ADHESIVE (HL&DC) 80.8501 3.000 kg 0.0% 3.00 kg 80 120 98 9600 550 kg 625.87
LABEL 41.1399 50.000 th 1.6% 50.80 th 80 120 125 9600 540 th 888.00
ALUMINIUM FOIL 43.0116 1000 7.500 bob 0.5% 7.54 bob 80 120 125 9600 54 bob 480.00
CLOSING STICKER 45.1374 50 th 1.0 % 50.50 th 80 120 64 9600 3’000 th 0.00*
PACK POLYPROPYLENE 46.0185 4000 2.025 bob 1.2% 2.05 bob 80 120 139 9600 80 bob 616.50
PACK TEAR TAPE 47.0047 50000 0.162 bob 0.8% 0.16 bob 80 120 143 9600 56 bob 255.00
LIQUID ADHESIVE (PACKAGING) 80.8506 3.400 kg 0.0% 3.40 kg 80 120 107 9600 375 kg 422.30
DISPLAY CARTON 60.1923 5.000 th 1.2% 5.06 th 80 120 105 9600 24 th 417.33
BUNDLE POLYPROPYLENE 46.0073 3200 0.463 bob 0.8% 0.47 bob 80 120 124 9600 18 bob 410.00
PACK AND BUNDLE TEAR TAPE 47.0156 20000 0.074 bob 0.8% 0.07 bob 80 120 143 9600 56 bob 292.00
SHIPPING CASE 70.1728 100.000 pcs 0.3% 100.30 pcs 83 142 174 11786 400 pcs 267.31
SEALING TAPE 72.0169 0.150 bob 1.5% 0.15 bob 80 120 110 9600 204 bob 495.00
SELF ADHESIVE (BOX) 71.0713 100.000 pcs 0.0% 100.00 pcs 80 120 128 9600 259’200 pcs 536.00
SELF ADHESIVE (PALLET) 71.0710 8.333 pcs 0.0% 8.33 pcs 80 120 84 9600 78’000 pcs 0.00*
STRETCH FILM 89.0009 1870 0.792 kg 0.0% 0.79 kg 80 120 118 9600 490 kg 520.00

* Not received on pallet

Figure 14 : NTM list and description for MLB KS soft

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ITEM - MLB KS BOX PM code Length of Theoretical usage Waste Usage Pallet or SU Area by pal- Qty of NTM per Total Pallet
bobbin (m) per miocig. factor % / mio.cigs dimensions in cm let/SU (cm2) pallet/SU weight (kg)
Filter W L H
TRIACETINE 20.0001 9.0011 kg 5.0% 9.45 kg 100 120 110 12000 580.00 kg 610.00
WHITE TOW 22.0150 112.834 kg 2.0% 115.09 kg 99 148 120 14652 616.38 kg 632.38
PLUG WRAP 23.0133 5500 3.819 bob 2.5% 3.91 bob 120 120 147 14400 200.00 bob 770.00
HOTMELT 80.0177 0.550 kg 0.0% 0.55 kg 80 120 109 9600 180.00 kg 224.40
LIQUID ADHESIVE 80.1254 0.367 kg 0.0% 0.367 kg 80 120 56 9600 300.00 kg 340.05
Maker
CIGARETTE PAPER 30.0618 7300 8.630 bob 3.4% 8.92 bob 120 120 147 14400 200.00 bob 1016.71
LIQUID ADHESIVE 80.1255 2.600 kg 0.0% 2.60 kg 80 120 98 9600 550.00 kg 625.87
TIPPING PAPER 32.2233 3400 3.971 bob 3.4% 4.11 bob 80 120 114 9600 76.00 bob 475.00
LIQUID ADHESIVE 80.0010 8.200 kg 0.0% 8.20 kg 80 120 98 9600 550.00 kg 625.87
Packer
BLACK INK 31.1847 0.020 kg 0.0% 0.02 kg n.a. n.a. n.a. 9600 2.5 kg 0.00*
INNER FRAME 44.0014 920 1.793 bob 1.5% 1.82 bob 80 120 142 9600 26.00 bob 550.00
LIQUID ADHESIVE (HL&DC) 80.8501 8.100 kg 0.0% 8.10 kg 80 120 98 9600 550.00 kg 625.87
HINGE LID BLANK 40.7148 50.000 th 0.5% 50.25 th 80 120 105 9600 120.00 th 650.00
ALUMINIUM FOIL 43.0150 1800 3.685 bob 0.5% 3.70 bob 80 120 125 9600 54 bob 633.90
PACK POLYPROPYLENE 46.0273 4000 2.125 bob 1.2% 2.15 bob 80 120 144 9600 80 bob 626.46
PACK TEAR TAPE 47.0047 50000 0.170 bob 0.8% 0.17 bob 80 120 143 9600 56 bob 255.00
DISPLAY CARTON 60.1922 5.000 th 1.2% 5.06 th 80 120 105 9600 24 th 475.00
BUNDLE POLYPROPYLENE 46.0074 3200 0.461 bob 0.8% 0.46 bob 80 120 126 9600 18 bob 417.50
PACK AND BUNDLE TEAR TAPE 47.0156 20000 0.074 bob 0.8% 0.07 bob 80 120 143 9600 56 bob 292.00
SHIPPING CASE 70.1727 100.000 pcs 0.3% 100.30 pcs 83 142 174 11786 400 pcs 292.92
SEALING TAPE 72.0169 0.150 bob 1.5% 0.15 bob 80 120 110 9600 204 bob 495.00
SELF ADHESIVE (BOX) 71.0713 100.000 pcs 0.3% 100.30 pcs 80 120 128 9600 259’200 pcs 536.00
SELF ADHESIVE (PALLET) 71.0710 8.330 pcs 0.0% 8.33 pcs 80 120 84 9600 78’000 pcs 0.00*
STRETCH FILM 89.0009 1870 0.792 kg 0.0% 0.79 kg 80 120 118 9600 490 kg 520.00

* Not received on pallet

Figure 15 : NTM list and description for MLB KS box

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2.3. FINISHED GOODS

2.3.1.FG packaging
Cigarettes are packed into shipping cases:
S 10’000 cig shipping case (5 x 5 x 2 bundles) as shown below;
S But also 5’000 cig shipping case (5 x 5 x 1 bundles);
S Shipping cases have different sizes for different cigarette formats.

Figure 16: Finished goods packaging 10’000 cig. shipping case

2.3.2.FG palletizing
Shipping cases are stored on pallets. When palletizing :
S Close shipping case flaps with tape or adhesive to ensure stability of pallets and the loading
characteristics of the shipping cases.
S Orient cigarettes horizontally (as shown above) to avoid mashed, flattened, loose or void
ends.
S Structure of the shipping case (orientation of the flutes) should avoid flattening.
S Maintain shipping cases vertical and thus, the inner reinforcing corrugation vertical, to with-
stand loads from the top.
S Calculate the strength needed for shipping cases as a function of the storage conditions.
S Monitor shipping cases for crushing.
S Shipping cases should not overlap the pallet.
S Take care of stability. Use film wrapping to provide support to the cases.
S Do not build towers but mix up the shipping cases level for stability.
S Ensure a snug fit of: cigarettes in packs, packs in cartons, cartons in cases, cases on pal-
lets, pallets in containers to ensure stability and minimize movement in transit.
Refer to:
S PMI quality document - reference [14].
As an example, hereunder are descriptions of palletization for:
KS - box - display carton - 800 x 1200 mm pallet (see Figure 17);
KS - box - display carton - 1000 x 1200 mm pallet (see Figure 18);

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KS - soft - display carton - 800 x 1200 mm pallet (see Figure 19);

KS - soft - display carton - 1000 x 1200 mm pallet (see Figure 20);
100’S - box - display carton - 800 x 1200 mm pallet (see Figure 21);
100’S - soft - display carton - 800 x 1200 mm pallet (see Figure 22);
100’S - soft - display carton - 1000 x 1200 mm pallet (see Figure 23);
100’S - box- display carton - 1000 x 1200 mm pallet (see Figure 24).

1) KS-BOX-DISPLAY CARTON
layers A PALLETIZING
800 x 1200 mm pallet
10’000 cigarettes per case
21 shipping cases per pallet
layers B
1921

210’000 cigarettes per pallet

~15.5 kg per case
~350 kg per pallet

layers A
Disadvantage:
The shipping case in the
middle is completely invisible
from the outside.

Shipping case
2 layers A 1 layers B
592

(800)

462
264

(1200)

Figure 17: KS-box-display carton palletizing (800 x 1200 pallet)

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2) KS-BOX-DISPLAY CARTON
layers A
PALLETIZING

1000 x 1200 mm pallet

10’000 cigarettes per case

1921
layers B
27 shipping cases per pallet
270’000 cigarettes per pallet
~15.5 kg per case
~450 kg per pallet
layers A

Shipping case 2 layers A 1 layers B

(1000)
592

462
264

(1200)

Figure 18: KS-box-display carton palletizing (1000 x 1200 pallet)

3) KS-SOFT-DISPLAY CARTON
layers A PALLETIZING
800 x 1200 mm pallet
10’000 cigarettes per case
21 shipping cases per pallet
layers B
1870

210’000 cigarettes per pallet

~15.5 kg per case
~350 kg per pallet

layers A Disadvantage:
The shipping case in the
middle is completely invisible
from the outside.

Shipping case
2 layers A 1 layers B
575

(800)

455
245

(1200)

Figure 19: KS-soft-display carton palletizing (800 x 1200 pallet)

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4) KS-SOFT-DISPLAY CARTON
layers A PALLETIZING
1000 x 1200 mm pallet
10’000 cigarettes per case
layers B 30 shipping cases per pallet

1870
300’000 cigarettes per pallet
~15.5 kg per case
~500 kg per pallet
layers A
Disadvantage:
The shipping cases in the middle
are completely invisible from the
outside.
(1000)
575

455
245

2 layers A

1 layers B
(1200)
Shipping case

Figure 20: KS-soft-display carton palletizing (1000 x 1200 pallet)

5) 100’S-BOX-DISPLAY CARTON
PALLETIZING
layers A
800 x 1200 mm pallet
10’000 cigarettes per case
18 shipping cases per pallet
180’000 cigarettes per pallet
1921

layers B
~17.5 kg per case
~350 kg per pallet

Disadvantage:
layers A
The shipping case in the middle is
completely invisible from the out-
side.
Shipping case

2 layers A
6

1 layers B
592

(800)

542
264

(1200)

Figure 21: 100’S-box-display carton palletizing (800 x 1200 pallet)

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6) 100’S-SOFT-DISPLAY CARTON
layers A PALLETIZING
800 x 1200 mm pallet
10’000 cigarettes per case
18 shipping cases per pallet
layers B

1867
180’000 cigarettes per pallet
~17.5 kg per case
~350 kg per pallet

layers A Disadvantage:
The shipping case in the
middle is completely invisible
from the outside.

Shipping case

2 layers A 1 layers B
574

(800)

532
250

(1200)

Figure 22: 100’S-soft-display carton palletizing (800 x 1200 pallet)

7) 100’S-SOFT-DISPLAY CARTON
PALLETIZING

1000 x 1200 mm pallet

10’000 cigarettes per case
1867

24 shipping cases per pallet

240’000 cigarettes per pallet
~17.5 kg per case
~450 kg per pallet

Shipping case
574

(1000)

532
250

(1200)

Figure 23: 100’S-soft-Display carton palletizing (1000 x 1200 pallet)

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8 100’S-BOX-DISPLAY CARTON
PALLETIZING

LAYOUT TO BE ADDED

Figure 24: 100’S-box-Display carton palletizing (1000 x 1200 pallet)

Slims palletization (ex. of PM Germany)

Slims brands (like Eve 120’s) are stored 3 pallets high, but Super slims brands only 2 pallets high.
Both Euro- and Industrial pallets are used depending on the destination, e.g. Greece, Denmark and
Norway receive FG on Euro pallets, for all other current destinations Industrial ones are used.

Figure 25: Figure 26: Figure 27:

X-Slim Industrial pallet X-Slim Euro pallet Slim Industrial pallet

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2.4. EXTERNAL HANDLING EQUIPMENT

Transport optimization is one of logistics’ major tasks.
Elements to be taken into account:
S Cost;
S Distance, speed and duration;
S Security and reliability;
S Laws and regulations;
S Insurance;
S Handling, palletizing.
All types of transport must be considered: road, rail, air and sea. This is called a transportation study
and is one of the first steps when planning a warehouse.
For information on contracts and responsibility related to transportation, refer to :
S INCOTERMS (International Commercial Terms), published by the ICC (International Cham-
ber of Commerce), in Paris.
Refer to:
S Appendix 6.3.1. for forwarder and transportation vender selection and evaluation.

2.4.1.Pallets
Standard EURO pallets are the most commonly used pallets.
However in our industry the tendency is to more often use 1000 x 1200 mm pallets because they
allow better floor utilization with finished goods.
Use these two type of pallets wherever possible.

EURO PALLET INDUSTRIAL PALLET

Pallet weight (800 x 1200 mm) : 20 - 30 kg Pallet weight (1000 x 1200 mm): 25 - 35 kg

Figure 28: 800 x 1200 (EURO pallets) and 1000 x 1200 (industrial pallets)

Pallets can be disposable (very fragile) or reusable; in this case renting the necessary pallets should
be considered.
Refer to:
S Appendix 6.5. for comparisons of FG palletizing.

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2.4.2. Lorries
There are 2 main categories of vehicles: road trains and semitrailers.

Figure 29: Road train

Figure 30: Semitrailer

Road trains allow goods to be loaded or unloaded simultaneously in two different places.

Currently the following descriptions are valid in the EU :

Road train: Semitrailer:

Max total length: 18.50 m 18.50 m
Max total width: 2.50 m 2.50 m
Max total height: 4.00 m 4.00 m
Example of lorry in. dimensions: 7.0 x 2.4 x 2.4 m -
Example of trailer in. dimensions: 7.0 x 2.4 x 2.4 m 13.5 x 2.4 x 2.4 m
Max total weight
in the EU: 40.0 t 40.0 - 44.0 t
Tare: 13.5 t 12 t
Load weight
in the EU: 26.5 t 28 t
Volume: up to 120 m3 up to 120 m3
Pallets 1200 x 800: 34 (17 + 17) 33
Pallets 1200 x 1000: 28 (14 + 14) 26

Figure 31: Descriptions for lorries in the EU

Apart from the above mentioned categories of vehicles, many different types of vehicles can be
found on the market in the form of road trains or semitrailers. The most important ones are:

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S Open deck or skeleton frame lorry (for containers);

S Open deck with tarpaulin;
S Normal steel body;
S Steel body with insulation;
S Steel body with refrigeration;
S Tankers (for liquids);
S Silo (for cereals and granule).
Optimization of transport is especially important for finished goods. It is possible to load pallets with
4 layers of king size cigarette shipping cases into a lorry.
Pallets with 4 layers of shipping cases are difficult to handle, palletize and wrap. 3 layer pallets can
be loaded into the lorry and a fourth layer added manually. This, as well as using 1000 x 1200 pallets,
will result in the best volume utilization in case of pallet loading and can be considered in countries
where the cost of labor allows it. Nevertheless, according to PMI quality document - reference [14],
it is not recommended to store shipping cases on 4 layers for quality reasons. See appendix 6.5.
for comparisons of FG palletizing.
Hereunder is a comparison of loading potential with king size box display carton cigarettes. The
comparison is made for a semitrailer at PMP SA, Neuchâtel in Switzerland as shown in Figure 33.

Pallet Pallets per Layers of Cigarettes per Cigarettes per

semitrailer shipping cases pallet semitrailer
800 x 1200 33 (3 x 11) 3 210’000 6.93 mio
800 x 1200 33 (3 x 11) 4 280’000 9.24 mio
1000 x 1200 26 (2 x 13) 3 270’000 7.02 mio
1000 x 1200 26 (2 x 13) 4 360’000 9.36 mio

Figure 32: Loading potential of semitrailer

Hereunder is a loading plan for palletized king size cigarettes in a semitrailer at the PMP SA,
Neuchâtel in Switzerland (1995):

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VARIANT 1

CH

Max 33 PALLETS Max weight EURO 40 t

Load ~12210 kg Max weight CH 28 t
6,93 mio.cig. Tar ~15 t
Max load EURO ~25 t
Max load CH ~13 t
Weight/Pallet ~350 kg
~13,5 m 1 Pallet FG 210000 cig.

VARIANT 2

CH
Max2,5 m

Max 32 PALLETS
Load ~11840 kg
6,72 mio.cig.

Max16,5 m

Figure 33: Loading of a trailer truck at the PMP SA, Neuchâtel, Switzerland

For information on maximum legal sizes and weights of other types of motor vehicles in other coun-
tries, refer to:
S ”Limits of Motor Vehicle Sizes and Weights” published by International Road Federation,
525 School Street, S.W., Washington, DC 20024.
It is the responsibility of the warehousing department to ensure that vehicles / containers are in-
spected for the following points before loading PMI products :
S Foreign odor, dirt, wet;
S No damaged walls, floor or ceiling that could potentially damage the product;
S Cigarettes must be oriented horizontally and shipping case flutes vertically (See Figure 16);
S Vehicles / containers must be watertight and if possible airtight;
S A record of non-conformities must be kept and local PMI QA department must be contacted.

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Shipping Case Shipment

The following shipping case configuration could be used for trailer truck / container loading :

Figure 34: Loading pattern of a 40’Container _Loading capacity : 1000 shipping cases

Figure 35: 40’ Container loaded with shipping cases

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2.4.3.Containers
Use ISO standard size containers:
Lengths (in feet) : 20’, 40’
Width (in feet) : 8’
Heights (in feet) : 8’6’’

Figure 36: 20 ft container Figure 37: 40 ft container

Most European countries are part of the so called IC Pool and use standard size containers as given
in the below table:

Length Inner Inner Inner Height at Tare Volume

[feet] length [m] width [m] height [m] doors [m] [t] [m3]
20 ft 8’6 5.895 2.35 2.392 2.27 ~ 2.5 35
40 ft 8’6 12.029 2.25 2.392 2.27 ~ 3.756 70

Figure 38: Dimensions of IC Pool containers

20 ft container:
1 3 5 7 9 11 13 15 48 C48 on 3 levels
2 4 6 8 10 12 14 16 96 C96 on 6 levels
48 CP99 on 3 levels

1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31
2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32

40 ft container:
96 C48 on 3 levels
192 C96 on 6 levels
99 CP99 on 3 levels

Figure 39: Loading plan for C48 cartons into 20 and 40 ft containers

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 Guidelines for Material Storage & Handling in the Cigarette Industry

CHAPTER 3.
WAREHOUSING
Contents of this chapter Warehousing determines the quality of goods distribution and in
3.1. STORAGE p.3-2 many cases is the starting point of company efficiency.
3.2. WAREHOUSE
LOGISTICS p.3-15 When exploring rationalization potential, it is necessary to
3.3. LOGISTICS constantly review warehousing requirements, i.e. the necessity to
EQUIPMENT p.3-19 store goods and products while never interrrupting production and
3.4. WAREHOUSE never missing a customer’s order (see Figure 40). New require-
PROJECT p.3-33
ment profiles for logistics systems should come from the changes
3.5. CHECKLIST FOR
EXISTING BUILDINGS p.3-57 in industry, commerce and services. The warehouse plays an im-
3.6. WASTE HANDLING portant part, no longer as a place to store goods, but as a fully inte-
CONCEPT p.3-57 grated element of logistics.
3.7. SAFETY. SECURITY,
CLEANING p.3-59 New constructions must meet these guidelines and wherever pos-
3.8. STAFF TRAINING sible, existing storages are to be modified to reach the minimum
ORGANIZATION p.3-66
requirements, at least.

NEVER NEVER MISS

INTERRUPT A CUSTOMER’S
PRODUCTION ORDER

FACTORY

MINIMIZE
STOCK

Figure 40: Warehouse Logistics

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3.1. STORAGE
This chapter gives details on how to store cigarette related goods in a warehouse.

3.1.1. Common storage systems & methods

Factors that influence the ability to satisfy a plant’s storage objectives are the type of storage system
used, the unit load dimensions, the type of pallet board, the storage warehouses dimensions, ceiling
height, fire protection and seismic conditions, and the material handling equipment.
The storage objectives are defined according to the unit load throughput and accessibility require-
ments, the product rotation requirement, the best storage density per aisle, the most storage keep-
ing unit (SKU) openings per aisle, and the best financial value. These objectives are similar regard-
less of the size of the facility or whether it is automated.
To satisfy these storage objectives, there are numerous systems available. Once the objectives and
the system’s design parameters have been clearly defined, selection of the appropriate system can
begin. The following chapters provide a list of each storage system’s advantages and characteris-
tics.

Bulk stacking, block storage

In floor stack storage, unit loads or containers are placed on the floor to a maximum of 6 to 10 unit
loads deep per storage lane. A storage lane may be a single row or back-to-back rows. Because
of leaning of unit loads and variance of unit load placement on the floor, longer storage lanes reduce
lift truck deposit and withdrawal productivity.
For cube (air space) utilization, unit loads are stacked on the floor unit loads. This method of stacking
requires that the unit load or case of goods on the floor is capable of supporting the stacking weight.
Floor stack storage provides high storage density but poor unit load accessibility. The SKU in the
storage lane’s aisle position is the SKU for the entire storage lane.
To deposit or withdraw a unit load, the lift truck enters the storage lane from the aisle, travels to the
lane’s unit load position, performs the required activity, and backs out from the storage lane to the
same aisle. In the design of a floor stack storage system’s row and aisle layout, the number of unit
loads deep per storage lane is often varied to bury the building columns within storage lanes. The
utilization factor for a floor storage system is estimated at 60%-70% of the provided unit load posi-
tions. Unit load rotation is last in, first out (LIFO) and throughput volume is considered high.

S Blocks of 1-8 layer high (with some

precautions for the 7th layer), 3-10
pallets deep
S Handling by counterbalanced forklift
S Minimum aisle width : 3.5 m
S Well suited for robust packaging and
in case of large stocks per item
S Cheap system
S Low capacity utilization and low effi-
ciency if used as FIFO system
S Marking on the floor is recommended

Figure 41: Bulk stacking

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Adjustable pallet rack storage

Adjustable pallet rack is one of the basic storage system. Usually the unit loads in the first vertical
opening are placed on the floor and unit loads in other vertical openings are placed on pairs of load
beams. If aisles must be narrow and a straddle truck is used, the bottom rack opening may be raised
onto a pair of load beams that provide straddle clearance.

A rack bay consists of two vertical upright frames designed to hold the bay’s unit load weight and
one or more pairs of horizontal load beams designed to hold the rack opening’s unit load weight.
The connection method of the upright frame and load beams commonly allows adjustment of the
rack opening’s vertical height. For stability, the upright frame’s base plate should be secured to the
floor and ties should be used with back-to-back upright frames. Whenever possible, all building col-
umns and fire sprinklers are in the flue space between back-to-back rack rows.

With standard single-deep pallet racks designed for single rack rows or back-to-back rack rows, the
unit load position utilization factor is of about 85-95%. Unit load rotation can be either first in, first
out (FIFO) or LIFO. Throughput volume can be high, and accessibility is excellent. But storage den-
sity is low because of the number of aisles required.

S Standard racks of 3-6 levels high, 1-2

pallet deep (120 cm)
S Handling by reach truck or counter-
balanced forklift
S Minimum aisle width: 3.2m for reach
truck and 3.5m for counterbalanced
forklift
S Simple, reliable, very flexible
S Best suited for mixed storage range
(items with high and low turnover)
S High capacity utilization and high
efficiency if used as a FIFO system

Figure 42: Medium high rack storage

Drive-in racks and drive-through

Drive-in rack systems offer high density storage for large unit loads. The rack structure includes
upright frames and posts, support arms, guide rails, support rails, and side, top, and back bracing.
Bottom loads are placed on the floor, and others rest on support rails.

Each storage lane may be two to ten load positions deep; six to eight positions is most common.
Rows may be single or back to back. Because each unit load position on a lane should contain the
same type of SKU, the utilization factor is just 65-80%. Unit load accessibility is relatively poor and
load rotation is LIFO.

Each storage lane must be wide enough for handling vehicle to drive between the support rails.
Aisles must be wide enough to permit a loaded vehicle to turn into or back out of each lane. Vehicles
travel in the lanes with loads elevated at the storage level. Throughput volume is medium.

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S Special form of block storage, 3-5

levels high, normally 6-8 pallets deep
(10 maximum). Pallets are stored on
L-shaped steel profiles
S Handling by reach truck
S Difficult handling in deep alleys
(drivers must be very cautious).
Possibility to add an optional rail
guidance system to help the driver
S Minimum aisle width : 3.2m for reach
trucks
S Applied when conditions for block
storage prevail, but the packaging is
not robust enough
S Low efficiency if used as FIFO system
S The additional expense of racks is
compensated by improved use of
Figure 43: Drive-in racks warehouse volume

Drive-through rack systems are very similar to drive-in rack systems. The same components are
used for construction, but there are no back braces. Each storage lane is accessible from two
aisles, so either LIFO or FIFO stock rotation is possible. The utilization factor is 65-80%, and
throughput volume is medium. Storage density is high, although not quite as high as with drive-in
racks, because rows cannot be placed back to back or around building columns. Unit load accessi-
bility is rated as poor.

Slide-in racks

S Compact storage system which

allows fast handling
S Good FIFO system but can be used
as a FILO mode too
S The bearing-chain system with roller
bases allows storage of up to
18 pallets per ”channel”
S Handling by reach truck or counter-
balanced forklift
S Minimum alley width : 3.2m for reach
truck and 3.5m for counterbalance
forklift
S Expensive solution

Figure 44: Slide-in racks

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High-rack storage, handling by hi-rack stacker (very narrow aisle)

S Standard steel racks of 6-12m high and

1-2 pallets deep; the lift height is usually
8-12 m
S Handling by guided hi-rack stacker
S Minimum aisle width: 1.6 m
S Minimum main corridor access width:
5.5 m
S Widely used, flexible and high
performing system
S The exchange area between storage
and adjoining zone needs to be carefully
designed
S High capacity storage system
S High quality floor is required

Figure 45: High-rack storage and hi-rack stacker

High rack storage, handling by stacker crane (high bay warehouse)

S Similar to previous solution but 12-30 m

high and different handling
S Handling by curve-going manual stacker
crane fixed on alley and no battery drive
S High capacity storage system
S The exchange area between the storage
and adjoining zone are equipped with
simple conveyor systems
S The racking structure is roof and façade
bearing
S Relatively expensive

Figure 46: High-rack storage and stacker crane

Dynamic flow-through storage

Gravity flow or flow-through rack systems use one aisle for SKU deposit (entry) and one aisle for
withdrawal (exit). The racks are similar to other types of racks except that pallets rest on inclined
skatewheels or roller conveyors.
In conventional facilities, pallet gravity flow storage lanes are three to four levels high. In hybrid or
high-rise facilities, the storage lanes may be designed to eight levels high. The weight of the unit

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load determines the slope or pitch of the flow rack system. Lanes may be three to twenty loads
deep. Normally, captive or slave pallet boards are recommended.
Unit loads are placed on the skatewheels or conveyor at the entry end of the storage flow lane.
Gravity and the unit load’s weight allow the load to flow to the exit end of the storage lane. When
a load is removed from the exit end, the next unit load in the flow lane moves forward to the exit
position.
The gravity flow system indexing movement of the unit loads from the deposit end to the withdrawal
end of the system allows each storage flow lane to accommodate one SKU per aisle opening. Stock
rotation is FIFO. Utilization factor is 90%, and throughput volume is high. This storage system has
high storage density and fair unit load accessibility.

S Pallets moving by gravity on roller

conveyors in the racking bay towards
the picking station
S This is a real FIFO system
S Handling by reach truck or counter-
balanced forklift
S 3-20 pallets deep
S Especially suited for high turn over
items
S High rate of warehouse capacity
utilization
S Relatively expensive

Figure 47: Dynamic flow-through storage

Moveable racks

S Compact storage system where pallet

racking are on movable bases, which
can be powered by motors
S The height of the racking installation
depends on the slope but is not suited
for high levels
S Handling by reach truck or counter-
balanced forklift.
S The number of aisles can be reduced
to one per racking block, the aisle is
opened where required
S Minimum aisle width : 3.2m for reach
truck and 3.5m for counterbalanced
forklift
S Especially suited for low turnover
items

Figure 48: Moveable racks

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Radioshuttle high-density storage systems

The system is an electrically powered load carrier that transports goods in and out of storage tunnels
within specially designed racking.
Each unit has rechargeable batteries, is operated by wireless remote control, and can be quickly
and easily transferred between different storage locations by a conventional forklift truck. Built-in
sensors precisely control shuttle parking in the storage tunnels, to ensure maximum density of stor-
age. The system is suitable for both first-in first-out (FIFO), and first-in last-out (FILO) operations.
While the radioshuttle unit transports the load, operators are free to work elsewhere. Several units
can be controlled from one transmitter.
There is a range of units for different pallet sizes, including a combi version that can accommodate
two different pallet sizes. Maximum capacity per pallet is either 1000 or 1500 kilograms.

S Electrically powered load carriers

conveying goods in and out of deep
storage “tunnels” within specially de-
signed racks
S Racking installation until 12m high
S Handling by reach truck or counter-
balanced forklift
S Can be used both as FIFO or FILO
mode
S Radioshuttles are handled by radio-
transmitter
S Especially suited for high turn over
items
S High rate of warehouse capacity
utilization
S Relatively expensive

Figure 49: Radioshuttle high-density storage systems

Intainers
Mobile and collapsible container used like mobile racks for the storage of tobacco bales (Oriental
type).

S Until 8m high / number of levels de-

pends on the height of each intainer
S Handling by counterbalanced forklift
S Minimum alley width : 3.5m
S Low efficiency if used as FIFO system
S Load capacity per intainer is low
S High flexibility when the mix between
storage of cartons and/or bales of to-
bacco is necessary
S Flexibility and easy handling
S Quick truck (un)loading time

Figure 50: Intainers

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Push back rack

Push back rack systems are a variation of gravity flow racks. System components are the same,
but load brakes are not needed. Push-back systems are normally designed as single rack rows for
installation against a wall. The system has one aisle for both deposit and withdrawal of unit loads
and is designed for three to four unit loads high and three to five unit loads deep per storage lane.
Unit loads are deposited by placing the inbound unit load against the unit load in the storage lane’s
aisle position and pushing it back into the storage lane. When a load is withdrawn from the system,
the next unit load in the lane flows into the aisle position.
The system’s unit load utilization factor is 65-80%, and product rotation is LIFO. Throughput vol-
ume is low, but storage density is rated as good. Load accessibility from the aisle is good.

S Store a variety of SKUs on different

levels of lanes for easy product access
S 3-5 pallets deep
S Interlocking carts help percent
dangerous jamming and costly product
damage
S Maximizes space utilization
S LIFO system

Figure 51: Push back rack

Comparison between main racking systems

Block Adjustable Drive-in Drive- Gravity Push High

Storage pallet rack through flow Back racks
Utilization factor, 60-70 85-95 65-80 65-80 90 65-80 85-95
%
Building footprint small large small small small medium small
Effectiveness of very good fair very good very good excellent good very
space usage good
Accessibility to poor excellent poor poor fair fair excellent
SKU
Probability of high low medium medium low medium low
damage
Rotation of SKU LIFO FIFO LIFO FIFO FIFO LIFO FIFO
LIFO
Number of aisles few many few few few few few
Security poor good good good good good good
Unit loads deep 8-10 1-2 8-10 8-10 3-20 3-5 1-2
Storage density high low high high high good high
Throughput high high medium medium high medium high
volume

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3.1.2. Racking supplier list

Below is listed a number of suppliers who have been used in various projects. However the list is
not exhaustive.

Company Address
DEXION GMBH Dexionstrasse 1-5
35321 Laubach
Germany
Phone: +49-640 5800
Fax: +49-640 1758
www.dexion.com
EAB 333 33 Smälansstenar
Sweden
Phone: +46-371 314 40
Fax: +46-371 312 25
www.eab.se
MECALUX SA Gran Via, 72-78
08902 L’Hospitalet de Llobregat Barcelona
Spain
Phone: +34-932 616 901
Fax: +34-932 632 682
www.mecalux.com
MECALUX SA 82, Impasse des Fauvettes
74930 Reignier
France
Phone: +33 01 60 11 92 92
Fax: +33 01 60 11 55 75
www.mecalux.com
ALSTEC France 98, rue d’Ambert
45800 St Jean de Braye
France
Phone: +33-238 78 4231
Fax: +33 680 35 5490
www.alstec.com
SSI SCHÄFER Fritz Schäfer Strasse 20
D 57290 Neunkirchen / Siegerland
Phone: +44 027 3570-1
Fax: +44 027 3570-396
www.ssi-schaefer-noell.com
STANDARD Depo ve Raf Sistemleri A.S
Perpa Ticaret Merkezi B Blok No 2529
13 Okmeydani
34381 Istanbul Turkey
Phone: 0212 221 18 24
Fax: 0212 210 42 63/66
www.standard.gen.tr

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3.1.3. Raw tobacco leaf storage recommendations

Do not store flammable products or products from which strong odors emanate close to tobacco
(eg: chemical products, perfumes, washing powder, animal skin, rubber, tires, alcohol, liquid clean-
er, fuel, wine, liquor, old paper, etc.).
Avoid storing infested tobacco in non-infested warehouses: treat infested tobacco before storage
(see § 3.7.10. and § 3.7.11.).
Physically separate semi-manufactured tobacco such as ET, BBS or CF from other tobaccos.
Physically separate green and re-dried tobacco to avoid cross infestation.
Do not store more than 200 tons per lot number in the same fire section.
Refer to:
S PMI quality document, reference [15] for complementary information about storage of tobacco.

Bulk stacking
Bulk stacking is usual for :
S C48 cases - 8 heights (see page 3-29)
S C90 cases - 6-9 heights (see Appendix 6.2.)

8-9 C90 stacking

without pallets
5.9 - 6.8 m

Pile 70 kg/box
560-640 kg/pile
4.5 m

Figure 52 : C90 stacking

Stacking heights depend on stacking conditions (temperature, humidity, ...) and also on weight,
quality of cardboard,...
Due to the crush test variability of incoming new cardboard construction and material, the impor-
tance of having a minimum incoming criteria (BCT and, especially ECT) for C90 and C48 has been
shown to be able to stack them 6, 8 or 9 levels with safe confidence.
Carton stacks must be supported by pallets or wooden plates in order to prevent moisture.
Stack uniformly with:
S 80 cm wall perimeter for inspections;
S 10 cm aeration spacing every 6 m;
S 1 m spacing everywhere if fumigation may be necessary;
S Consider sufficient additional height for sprinkler, ventilation, ducts, lighting, ...

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Figure 53: Raw Tobacco in C48 Figure 54: Raw Tobacco in C48 stored
stored on 8 levels (5+3) on 8 levels (6+2)

Figure 55: Hogsheads stored up to 5 high

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Racking
Oriental bales can be palletized and stored on standard racks. Alternatively oriental bales can be
stored on intainers that can be used for storage and transportation. (See § 3.3.2. for more details.)

Figure 56 : Raw Tobacco in bales stored in standard racking

3.1.4. NTM storage recommendations

Take special care with forklift handling.
Avoid exposure to sunlight.
Store NTMs in their original packing.
Separate bulk ingredients from different sources.
Special care must be taken when storing flammable and combustible liquids (see chapter 3.7.5.).
Refer to:
S PMI quality document, reference [15] for complementary information about NTM storage.

Bulk stacking
Bulk stacking up to 4 pallets high, depending on the item (see chapter 2.1.3.).
In order to optimize the capacity utilization and due to the large number of references, it is recom-
mended to have a limited number of pallets in depth. That has to be defined according to the brand
portfolio.
Consider sufficient additional height for sprinkler, ventilation, ducts, lighting, ...

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Figure 57: Bulk stacking storage of NTMs

Racking
Due to different pallet sizes and weights, and the large number of references, it is not recommended
to use drive-in, slide-in or dynamic flow-through racks. Special consideration must be taken before
choosing a high bay warehouse for NTM storage, such as slave pallets, quality control and material
control at entry/exit (see § 3.3.2. for more details).

Figure 58: Racking storage of NTMs

3.1.5. FG storage recommendations

Handle with care.
Respect distance between the walls and the product:
S 80 cm wall perimeter for inspections;
S 10 cm aeration spacing every 6 m.
Refer to:
S PMI quality document, reference [14] for complementary information about FG storage.

Bulk stacking
Bulk stacking is usual for finished goods, 2 pallets high, 3.9 m high (see Figure 59).
S Minimum 6 m building free height under girders for bulk stacking;

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S Enough space between the ceiling and the pallets must be respected to ensure proper han-
dling by forklifts and avoid damage of the product by contact with the building structure;
S Dispose pallets in order to allow the forklifts to enter the rows without damaging the goods
(crosswise pallets);

Figure 59: Bulk stacking of finished goods

S Consider sufficient additional height for sprinkler, ventilation, ducts, lighting, ...
Additional requirement for soft packs :
S When pallet-stacking soft packs, a plywood sheet has to be inserted between the two pallet
levels to evenly distribute the weight and avoid damaging the upper layer of the bottom
pallet.
If a 3rd pallet level is needed for logistic/economical reasons :
S Local PMI QA must ensure that the resistance of the shipping cases is well adapted to this
configuration;
S A plywood sheet has to be inserted between each pallet level;
S The weight of every pallet of the upper level has to be evenly distributed between 2 columns
of the lower levels.
In order to optimize the capacity utilization and due to the large number of references, it is recom-
mended to have a limited number of pallets in depth. That has to be defined according to the brand
portfolio.

Figure 60: Bulk stacking storage of FG

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Racking
Finished goods can be stored in all types of racks. FEFO system is highly recommended (see §
3.3.2. for more details).

Figure 61: Racking storage of FG

3.2. WAREHOUSING AND OPERATIONAL SEQUENCES

The administrative procedure referring to receiving, storage, shipping and related activities are
regulated with the warehousing/logistics department of the PMI Affiliate.
Computerized inventory control is essential to ensure long-range planning and optimal movement
in relation to production or customer requirements.
Store only tobacco in tobacco warehouses, FGs in FG warehouses and NTMs in NTM warehouses
or their specified location.
In general, FEFO is the rule for batches of each product but not for single items.

BBS/LEAF PC ET AC NTM FG

LORRY TRAIN LORRY LORRY TRAIN LORRY TRAIN LORRY TRAIN LORRY TRAIN
TRAIN

forklift + forklift +
forklift + elect hand pallet forklift forklift + elect hand forklift forklift + elect hand forklift elect hand forklift elect hand forklift forklift + elect hand
forklift + elect hand
Palletizing Palletizing Palletizing Palletizing Grouping

retrack + forklift +
forklift + elect hand pallet forklift + elect hand forklift + elect hand
elect hand elect hand forklift + elect hand

Order Warehse
Labeling Labeling Labeling Labeling
picking expidition

tractor + trailer tractor + tractor + tractor +

tractor +
retrack
retrack Store + retack Store + retrack Store + Hasard elect Store + retrack Store + retrack Store +
Reserve Reserve Reserve Reserve Reserve
retrack unstore retrack unstore retrack unstore warehse hand unstore retrack unstore retrack unstore
pallet
tractor + trailer tractor +
tractor +

Leaf forklift Store + Leaf forklift Store + Buffer forklift Store +

expidition forklift unstore expidition forklift unstore palletiser forklift unstore

external tractor +
tractor + trailer tractor + trailer tractor + trailer forklift + elect hand
tractor + REMOTE
HAZARD Palletiser
WAREHOUSE WAREHOUSE WAREHOUSE

electri
clamplift + Casing Inclined Flavouring NTM c Store +
Store
elect hand kitchen rollers kitchen buffer pallet unstore

clamplift +elect hand pallet elect hand automate elect hand elect hand automate
elect hand
Main line Add-back filter Filter
clamplift
feed feed shootin maker

elect hand Oriental Casing Primary Flavouring Cut filler forklift or Second. Maker Case
pallet line feed cylinder add-back cylinder cases clamplift feeders packer filling

manual +
elect hand

Stemk line Add-back Store in

clamplift
feed feed ripp. room

elect hand
WASTE

Store
Tipping forklift forklift Ripping forklift Waste
shorts

PRIMARY SECONDARY

Figure 62: Material flows example

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3.2.1. Raw tobacco leaf main flow

LEAF
UNLOADING PALLETIZING LABELLING STORAGE PRIMARY
EXPEDITION

LEAF
INSPECTION

QA
MONITORING

Figure 63: Raw tobacco leaf flow in warehouse

Refer to
S Chapter 3.7. : Safety, security, cleaning
S ”Warehouse instructions for tobacco”
S ”Procedure to be followed in case of arrival of damaged tobacco in the warehouse”
S PMI quality documents, reference [6] to [12]

Unloading and palletizing

Tobacco arrives in containers, trucks, railway carriages.
If sealed, check the seal and record it as such.
If monitored with pheromone-baited traps, record the information.
On arrival check the specific markings (total number of packages, lot number, weight, etc.) and note
the date. This information can be used as a bar-code and input into the computer database.
Off load the container, stack packages on pallets and store them in designated areas.
Train personnel involved in unloading to be aware of tobacco types, importance of odors,
recognition of mould and damp, recording pheromone trap data, procedures to follow if fumigant
is found, etc.

Leaf specialist inspection

The leaf specialist inspects a certain percentage of each shipment to confirm that it meets contrac-
tual requirements.
This inspection takes place in a specially prepared area and within the day of arrival.
This inspection includes checking of:
S Visual quality;
S Soundness;
S Aroma;
S Package integrity and whether recycled packing or not;
S Presence of odor;
S Stains or water damage;
S Signs of infestation by insects.
All irregularities should be reported.
If the lot or part of it does not conform to the customers requirements, it may be rejected. Investigate
to identify the cause of the problem and find the solution (eg lot rejection or fumigation in the case
of infestation).

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Refer to
S PMI quality documents, references [6] to [12];
S Chap. 3.4.16. for additional information.

QA monitoring
Set about 1 % of tobacco aside for QA monitoring.
The type of testing includes:
S Strip size distribution;
S Foreign matter quantification;
S Stem content;
S A battery of chemical analyses (pesticide residue testing, etc.).

Labelling
The lot number is generally used to classify tobacco, but depending on the warehouse management
system used, packages can be labelled for recognition.

Storage
Tobacco will remain in storage until required for manufacturing.

Leaf expedition
This area holds the requirements for 1 to 3 days production, depending on the location of the ware-
house in relation to the factory.
The batches of tobacco are prepared in the correct sequence.
See Chapter 4.1.3. “Logistics Recommendation in the Pre-blending Area”.

3.2.2. Non tobacco material main flow

BUFFER
UNLOADING PALLETIZING LABELLING STORAGE
STORAGE

QA
MONITORING

Figure 64: NTM flow in warehouse

Unloading and palletizing

Unload trucks on arrival and avoid exposure to sunlight.
Items that are not delivered on pallets, such as drums, must be palletized.
Check bulk deliveries in accordance with relevant PMI quality document, reference [3].
Refer to:
S PMI quality document, reference [1] in case of non conforming delivery parameters in the
warehouse.

QA Monitoring
Maintain appropriate Product Data Sheets (PDS) or Material Safety Data Sheets (MSDS) on site.

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Labelling
Each NTM used for corporate brands should have a bar-code. This code can be used as
recognition.
Refer to:
S PMI quality document, reference [13].

Storage
Before they can be used, NTMs must be tempered in the ambient conditions (temperature amd hu-
midity) of the production floor. The buffer storage is therefore generally located in the manufacturing
building, in or close to the make/pack area.
Refer to:
S Reference [15] for NTM storage and best used before date (BUBD);
S Chap. 4.6.3. for complementary information.

3.2.3. Finished goods

CASE ORDER
FILLING PALLETIZING STORAGE GROUPING LOADING
PICKING

Figure 65: FG flow in warehouse

Case filling and palletizing

Case filling and palletizing can be manual, semi-automated or fully automated depending on the
manufacturing site.
In the case of a fully automated system and if the layout allows it, it makes sense to locate the
palletizer directly in the warehouse section.

Storage
Refer to:
S Reference [4] for best used before date for finished products.

Order picking
Cigarettes are picked from shelves and palletized according to the customers order. This operation
is generally manual.

Figure 66: Order picking

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Consider having a pallet stretch wrapping machine in this area.

Grouping
Shipments are prepared prior to lorry or train arrival.

Loading
The loading must conform to the customer’s order.

3.3. LOGISTICS EQUIPMENT

3.3.1. HANDLING EQUIPMENT

Vehicles that enter the warehouse are powered by battery (possibly odorless fuel propane gas).
There are 11 major types of internal handling vehicles used in our industry :

Pallet truck
Load capacity: 1.4-3 t
Use: Horizontal ground transport

Pedestrian Electrical Man standing Man sitting

for short distances for long distances

Figure 67: Pallet trucks

Pallet stacker
Load capacity: 800 kg-1.6 t
Lift height: 3-6m
Use: Stacking with limited floor loading capacity / slow

Pedestrian Electrical Man standing Man sitting

Figure 68: Pallet stackers

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Counterbalanced forklift
Load capacity: ~1.5 t
Lift height: 3-6m
Use: Lorry and ramp loading
Counterbalanced forklifts can be fitted with a number of different attachments enabling to handle
or rotate goods that are not stacked on pallets like drums, tow, etc. without damaging them.

3 wheels for better handling ability 4 wheels for greater stability

Figure 69: Counterbalanced forklifts

Reach truck
Load capacity: ~2 t
Lift height: 11 m
Use: Stacking in racking systems

Figure 70: Reach truck

High rack stacker

Load capacity: ~2 t
Lift height: 14 m
Use: High rack stacking in narrow aisle

With man down With man up

Figure 71: High rack stacker

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Stacker crane (manual or fully automated)

Load capacity: ~2 t
Lift height: 12-25 m
Use: Manual or automatic stacking

Figure 72: Stacker crane

Tractor
Load capacity: ~10 t traction
Use: Long distance transport

Figure 73: Tractor

Order picker
Load capacity: ~2 t
Lift height: 0-9m
Use: Order picking

Horizontal, man standing Horizontal, man sitting Vertical

Figure 74: Order pickers

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AGV (automatically guided vehicle)

Load capacity: ~2 t
height: 2.8 m
Use: Driverless transport system.

Figure 75: Automatically guided vehicles for carton/pallet handling

Radioshuttle
Load capacity: 1.2 t
Use: High density storage system guided by rail inside deep racking system

Figure 76: Radioshuttle

Tow hand pallet tractor

Load capacity: up to 5 t traction

Figure 77: Heavy-duty tow tractor for internal trams and floats

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Figure 78:Train of handpallet trucks for handling of five pallets per transport

What to look for when choosing handling vehicles

Mast closed height

adapted to lowest clearance
Rear-view mirror Overhead guard or
cabin for external use Duplex or triplex mast
Fork carriage adapted to highest product access
adapted to lowest clearance
adapted for attachment full free lift
such as carton clamp
Load backrest
Spot light
provides a better stability
Battery lifting gear for battery exchange
Flashing light on the
counter weight Battery charger for 48V battery
380V 50Hz, 3 phases
charging cycle < 8 hours
Two additional hydraulic
functions for side-shifting
and attachment
Removable forks
length adapted to
pallet dimension

Battery
char-
ger

Battery typically 48V500Ah

Integrated side-shifting +/- 100 mm One spare battery per shift operation, max. 2
Non marking super-elastic tyres
not for ex-proof ! antistatic
Basic chassis Electrical counter balance forklift
four wheels for better stability or Lifting capacity : 1’500 kg
three wheels for better maneuverability

Figure 79: Choosing an internal handling vehicle

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Battery specifications
There are mainly two different types of batteries:
S Lead (acid) batteries
S Gel batteries
From a gel battery point of view, the advantages are as follows: it does not require maintenance and
there is no gas formation during charging thus a separate battery charging room is not required.
The disadvantages are as follows: a short time of working life, small capacity, the high costs of pur-
chasing and their sensitivity to strokes.
It is recommended to use the gel batteries only for one-shift operations.
Refer to:
S Appendix 6.6. for more information about batteries;
S Chapter 3.4.15. for battery charging room specifications.

Battery exchange
It is required to exchange electrical handling equipment batteries every 8 hrs. This task is performed
in the battery charging room/area. Stackers, tow trucks, reach trucks have theirs batteries ex-
changed via special exchange tables on rollers. Due to the weight and the difficult access, forklifts
require a crane to carry out this operation.
There are 3 ways to exchange forklift batteries :
1. Use a crane fixed to a building structure (ceiling, column);
2. Use a locally manufactured ”fork-crane” : slip on forks to which a hooking device is hung via
chains (2 forklifts are required for the battery exchange, including the forklift whose battery must
be exchanged);
3. Use an independent mobile crane.

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Internal handling vehicles suppliers

Below is listed a number of suppliers who have been used in various projects. However the list is
not exhaustive.

Head office Swiss office

Jungheinrich AG Jungheinrich S.à.r.l
Friedrich-Ebert-Damm 129 Rue du Simplon 1
D-22047 HAMBURG CH-1800 VEVEY
Germany ++41 21 921 72 33
Still GmbH Still S.à.r.l.

POB 74 07 20 Rte de Chardonne

D-22097 HAMBOURG CH-1604 PUIDOUX
++49 40 73 39 0 ++41 21 946 40 80
Germany
Linde AG Linde Lansing Manutention SA

Postfach 62 Av. Général-Guisan 30b

D-63736 ASCHAFFENBURG CH-1800 VEVEY
++49 60 21 99 0 ++41 21 923 62 60
Germany
BT Industries AB BT Aimsa SA

S-595 81 MJOLBY Rue du Lac 22b

++46 142 860 00 CH-1020 RENENS
Sweden ++41 21 636 22 36
Stöcklin Logistik AG Stöcklin Logistique SA

Postfach Ch. Anciens-Moulins 2a

CH-4143 DORNACH 1 Case postale 424
++41 61 705 81 11 CH-1009 PULLY
Switzerland ++41 21 728 31 91
Hyster Europe Limited

Berk House, Basing View, Basingstoke,

Hampshire, RG21 4HQ
England

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3.3.2. RACKING EQUIPMENT

Points to be checked during warehouse capacity analysis:
S Keep safe working aisles by providing sufficient handling space and pedestrian access;
S Sufficient handling clearances between the pallets (take in account possible pallet overlaps);
S Sufficient handling clearances between the pallets and the racking equipment;
S Sufficient distance between the pallets at the last level and building utilities.
Design, installation and use have to be carried out according to the latest FEM regulation.
Points to be checked during a racking bid analysis
Equipment :
S Rack protections must be included (Column Guard and End Frame protection);
S Anti-seismic equipment design (if the case) should follow FEM (Fédération Européenne de
la Manutention) requirements (see page 3-27).
Layout :
S Distance between racking protection and the racking : 45-50mm;
S Handling clearances between the pallets and between the pallets and the uprights :
75-100mm;
S Handling clearances between the top of the stored pallets and the beams : 100-150mm.

Figure 80: Situation to avoid in a racking system

Racking Inspection
S Racking Inspections should be performed according to EHS management system, manual
reference [36].

Training is organized by PMI Engineering EHS department. Please contact this de-
partment for any further information.

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Adjustable Pallet Racking components :

Figure 81: Adjustable pallet racking components

Drive-in Racking components :

COMPONENTS
6 3

1 Frames
1
2 GP4 arm
7
3 GP4 rail
4 Sigma rail
5 Drive-in support
6 Horizontal cross bracings
7 Vertical cross bracings
2
8 Guide rail

8 9 Guide rail protectors

5
4 9

Figure 82: Drive-in racking components

Seismic Resistant Racking

Racking systems with seismic resistant design are more complex than standard racking. They re-
quire additional structural framing and anchor bolts to resist the horizontal forces which are gener-
ated when an earthquake occurs. The horizontal forces depend upon the actual weights stored in
the racking and the intensity of the earthquake.
This racking should normally include the additional structural elements and supports as listed:
a. Portal Ties. The rack lines should be linked to each other with portal ties along the top of the
complete racking system. These then connect the rack lines together and to a series of vertical
bracing frames which resist the seismic horizontal forces.

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b. Pallet Cross Ties. The front and rear beams which directly support the stored materials are
linked to each other with diagonal pallet cross ties, which reinforce the racking horizontally.
c. Vertical Bracing. Vertical bracing in two directions transmits the horizontal forces from all levels
of the racking to the concrete floor at the base.
d. Holding Down Bolts. The racking systems must be adequately anchored to the concrete floor
with epoxy embedded or cast-in bolts. The base plate of the racks and the bolts must be correct-
ly designed and constructed to resist the shear and tensile forces resulting from seismic action.
e. Connections. All structural elements must be provided with bolts or clip connections sized to
adequately transfer and resist the maximum design loads.
Although the above features are subject to changes according to the detailed design and the specif-
ic seismic classification for the specific area, it is recommended that these features are taken into
account when purchasing seismic resistant racking systems.
The racking system supplier shall submit a detailed design, together with drawings and calculations,
which are certified by an In-Country Registered Structural Engineer and must be fully compliant with
the Standards and Laws of that Country.
The supplier is the expert in this field.

Figure 83: Anti-seismic racking equipment

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Figure 84: Anti-seismic racking equipment

Rack height specifications

Refer to:
S Chapter 2. for dimensions of stored materials.
Tobacco storage: C48 in block storage

3270

9500

6230
5460

770
70

150

Figure 85: C48 in block storage (8 levels)

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Tobacco storage: C48 with Tobacco storage: Bales in standard

Expanded Tobacco in drive-in racks racks
2700
120
1350

1260
125
370

9400
8260
290

8000

9400
2800

6000
2460
1140

2460

5800

50

2000
490

150

4000
220
2460

3000

1630

2000
770

370
150 150

1315 Remark: 50 : Depending on the load Remark: 150 : Depending on the load
Figure 86: C48 with Expanded Tobacco in Figure 87: Bales in standard racks
drive-in racks

NTM storage: 4 levels in standard NTM storage: 6 levels in standard

racks racks 3700
3700
1500

8000
1450
1300
1300
1450

9500
9500
7150

1450
1300

6550
2350

1300
1450
4800

5100
2450

8000
2300

2150

heavy heavy
2000

3650

heavy

Figure 88: 4 levels in standard racks Figure 89: 6 levels in standard racks

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NTM storage: 3 levels in standard racks Finished Goods storage in drive-in racks
1350 350

3700

1950
1850
50
300

6400

2300
300 50
2100

9400
4550

7100
2300

9050
4800
50
500
2300
2450

2500
1950
1240 Remark: 50 : Depending on the load

Figure 90: 3 levels in standard racks Figure 91: Storage in drive-in racks

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3.3.3. Main suppliers for PMI projects

Affiliate Type of equipment Supplier Country
Saint-Petersburg GF
PHILIP MORRIS IZHORA Handling equipment MHC (Hyster-BT) England
Volkhonskoye Shosse 7
Poselok Gorelovo, Lomonosov Racking equipment MHC (EAB) Sweden
District Waste related HSM (compactor) Germany
198323 St. Petersburg equipment NTM (small boy England
Russia bins)
Loading dock HAFA Germany
equipment

Romania GF
PHILIP MORRIS ROMANIA SRL Handling equipment MHC (Hyster-BT) England
Horia Closca Si Crisan 83-105
83 105
Otopeni, Ilfov Racking equipment Mecalux Spain
Romania Loading dock equip- HAFA Germany
ment
Krasnodar New Warehouse
PHILIP MORRIS KUBAN Handling equipment BT Sweden
Ulitsa Ippodromnaya,
Ippodromnaya 10
350038 Krasnodar Racking equipment Mecalux Spain
Russia Loading dock equip- MBW Germany
ment
Almaty GF
PHILIP MORRIS KAZAKHSTAN Handling equipment STILL Germany
1 Zhansugurov Street - Otegen
Batyra Village Racking equipment Standard Turkey
127 Angarskaya Street, Almaty - Waste related NTM (small boy England
deliveries equipment bins)
483331 Almaty Oblast / Energeti-
cheskiy Village Loading dock equip- HAFA Germany
Kazakhstan ment
PMP Krakow Masterplan
PHILIP MORRIS POLAND S.A. Handling equipment STILL Germany
Aleja Jana Pawla II 196
31-982 Krakow Racking equipment Mecalux Spain
Poland Waste related Avermann (compac- Poland
equipment tor)
RAF-MET (bins)
Loading dock equip- HAFA Germany
ment
Pallets CMC (HBW slave Poland
pallets)

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Affiliate Type of equipment Supplier Country

PM Philippines GF
PHILIP MORRIS PHILIPPINES Handling equipment STILL/Jungheinrich Germany
MANUFACTURING
Lot 3, Phase 1 B - FPIP Project Racking equipment Schaeffer Germany
Site, Sto. Tomas Waste related HSM Pressen Germany
First Philippine Industrial Park equipment
4234 Batangas
Philippines Loading dock equip- Blue Giant Canada
ment
Pallets San Miguel Packag- Philippines
ing
PM Ukraine GF
PHILIP MORRIS UKRAINE Handling equipment Jungheinrich Germany
Ulitsa Netechenskaya
Netechenskaya, 25-A
25 A
61125 Kharkiv Racking equipment Standard Turkey
Ukraine Waste related Orwak Sweden
equipment HSM Germany
Loading dock equip- HAFA Germany
ment
PM Serbia
DIN ”FABRIKA DUVANA” AD Handling equipment STILL Germany
NIS 12 February 74
18000 NIS Racking equipment
Serbia Waste related Tehnix Croatia
equipment

3.4. WAREHOUSE PROJECT

This chapter provides guidelines in the planning and the realization of an “ideal” warehouse.
New construction should follow these guidelines as closely as possible. Existing buildings should
be chosen and modified to resemble the ideal environment.
Refer to:
S Figure 93 for an illustration of the ideal warehouse according to these recommendations;
S Reference [31] for more details.

3.4.1. Laws & Regulation

General construction requirements must conform to the local or national authority standards and
those of the insurers.
Tobacco storage requires acceptance of the Leaf department of the PMI Affiliate, based on specified
criteria.
PMCC Risk Management is to be notified of all substantial projects prior to the generation of a cost
estimate to determine the appropriate loss control standards to be applied. Highly Protected Risk
Standards are to be applied to projects where the insured Property Damage / Business Interruption
(PD/BI) value exceeds 50 millions USD (e.g. sprinklers, fire alarm system, water supply and good
separation of values with firewalls etc.). PD/BI over 10 millions USD to be looked at on a case by
case basis. There are no special requirements under 2.5 millions USD.

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Interior separation is very important in the overall design and arrangement of tobacco manufactur-
ing facility. Due to the overall value of the process equipment and the high business interruption loss
potential, passive protection in the form of fire separation walls must be provided to limit the potential
of uncontrolled fire spread throughout the factory.

3.4.2. Project procedure

The starting point when planning a warehouse is to determine the global flows of material in the fac-
tories it will have to support. For this it is necessary to know:
S The production volume and brand mix, i.e. the type and quantities of tobacco products, in-
gredients and NTM used for the production;
S Where the raw material comes from and where the finished goods will go to;
S The maximum level of pallets in and pallets out (PIPO). As the production volume is quite
stable the innage is typically flat. However the outage can show extreme variations (up to
200%) due to seasonal peaks, etc.;
S A detailed transportation study should be done in order to determine the transportation time,
cost and security for the major items;
S Transportation time and manufacturing time will determine the resupply time;
S The transportation study together with considerations such as the daily need in FGs, the
volatility of the markets and the contractors, the safety of a warehouse, etc. will be the major
elements in fixing the security stock volume for each item.
After determining the approximate surface of the warehouse, the general design as well as variants
can be defined considering the following criteria:
S Building space available on site and building possibilities according to local regulations and
conditions;
S Exact dimensions of the warehouse according to the type of storage;
S Structural specifications regarding the type of storage, loading, etc.
It is possible, calculating the BUBD, the total storage volume and considering various storage sys-
tems, the approximate surface of the warehouse.
The warehouse can be detached from the manufacturing plant or linked to it by a covered passage-
way. In which case the transportation of goods between the factory and the warehouse can either
be done by tractor and trailer or with transport belts or driven roller cages.
Once the warehouse project has been accepted, an external company can be commissioned for
the project and a cost estimate preparation in order to establish a Capital Appropriation Request.

3.4.3. Low cost Modular Warehouse (LMW)

A study on the Logistic Projects in the PMI Region was conducted in order to determine the most
effective warehouse in terms of investment costs for the warehouse building as well as for the rack-
ing and handling equipment. The warehouse concept could then be used in the PMI region.
The study can be summarized as follows:

Types of warehouses
First the following types of warehouses were defined and selected:

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CLEAR STORAGE
SYSTEM BUILDING HANDLING FIGURE
HEIGHT METHOD

Conventional Counterbalanced
A warehouse
6.5 m Block storage
forklift

Medium hi-bay Conventional

B warehouse
9.5 m
rack storage
Reach truck

Medium hi-bay
C warehouse
9.5 m Drive-in racks Reach truck

Medium hi-bay
D warehouse
9.5 m Slide-in racks Reach truck

Hi-bay High rack stacker

Conventional
E warehouse 14.0 m
rack storage
”12 m class” (hi-racker)

Hi-bay
Conventional Stacker crane
F warehouse 14.0 m
rack storage (manual)
”12 m class”

Hi-bay
Rack supporting Stacker crane
G warehouse 21.0 m
roof and walls (manual)
”20 m class”

Figure 92: Types of warehouses

Hybrid solutions of warehouses

The 12 most rational combinations of storage systems were developed and compared. For each
combination, the types of goods (tobacco/NTM/FG) are stored in respective storage systems:

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VARIANT TOBACCO STEMS/ET/ TOBACCO NTM FG COMMENTS

BBS/STEM SHORTS/IS ORIENTAL
1 A A - A A Not suited for oriental
2 - B B B B Not suited for BBS/stem/local
3 E E E E E Recommended solution
4 G G G G G High storage volume
5 A C C B C Low building/large surface/2 heights
6 A D D B D Low building/large surface/2 heights
7 A B B B B Low building/large surface/2 heights
8 A E E E E 2 different building heights
9 A E E B E 3 different building heights
10 E E E B E 2 different building heights
11 A G G G G 2 different building heights
12 A G G B G 3 different building heights
A: block / 6.5 m B: middle high / 9 m C: drive-in / 9 m
D: slide-in / 9 m E, F: class 12 m G: class 20 m
Figure 93: Combinations of types of warehouses

Comparing the investment for the different combinations

The investment cost ranges for the above variants (storage system and warehouse building) were
then compared. See Figure 94.
From the investment point of view a 12 m class hi-bay warehouse would be the most favorable. But
it requires perfectly even floor, and this cannot be guaranteed for more than a few years. The stor-
age system is also very rigid and inflexible during handling peak periods.

145

140
UA.R4
UA.R7
COMPARISON OF INVESTMENT IN %

135

130

125 UA.R5
UA.R6

120

115
UA.R12
UA.R10
110
UA.R3
UA.R9
105

100 UA.R8
UA.R11

95
5 10 15 20 25 30 35 40 45 50 55 60
PRODUCTION IN BIO.CIG/YEAR

Figure 94:
Relative investment for different warehouse combinations as a function of production volume

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Comparing the other factors

After comparing the investment cost (one of the major criterion when selecting a LMW), other fac-
tors were affecting the solution as follows:
S Differences in building height: flexibility, building, passing from one zone to another one;
S Floor load and evenness: extra investment, guarantee;
S Modularization: standardization, size;
S Warehouse running costs: handling, maintenance;
S Warehouse organization: flexibility of the system (use of handling equipment, etc.);
S Integration of sprinkler system (clear height).

Defining the Low cost Modular Warehouse (LMW)

Finally, after taking all the above factors into account, the most rational variant was defined to be
as follows:

LMW TOBACCO STEMS/SHORTS TOBACCO NTM FG

BBS/STEM ET/IS ORIENTAL
VARIANT A C B B C
STORAGE Block storage Drive-in rack Rack storage Rack storage Drive-in rack
CLEAR HEIGHT 6.5 m 9.5 m 9.5 m 9.5 m 9.5 m
HANDLING Forklift Reach truck Reach truck Reach truck Reach truck

Figure 95: Low cost Modular Warehouse

Determining the size of a LMW module

The optimum standard module size for a Low cost Modular Warehouse was then determined for
this combination of storage systems according to storage volume, racking size.
Floor area: 36 m x 84 m = 3’024 m2
Clear height: 9.5 m (single height warehouse)

9.5 m

Floor area: 36 m x 84 m = 3’024 m2

84 m
36 m 36 m Clear height: 9.5 m (single height warehouse)

Figure 96: LMW modules

In order to allow full flexibility of the warehouse, the 6.5 m block storage of BBS and stems will take
place in a 9.5 m high module too. The warehouse will be single height.
Wherever possible a new warehouse will be built with modules of this shape and size with these
storage systems.

3.4.4. Warehouse surface requirement

It is important to have a rough idea of the necessary floor surface of a foreseen warehouse.
However, this is not straight forward because the surface depends on many different factors:
production, brand, storage system and height, racks, alley width, etc.
In order to evaluate the necessary surface, hereunder is a table showing the approximate floor sur-
faces necessary to store each category of products used to run a 10 bio cig/year factory and for the
storage systems described in Figure 92.

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Floor [m2] A B C D E F G
10 bio cig/yr block/6.5m middle- drive-in/9m slide-in/9m class 12m class 12m class 20m
high/9m high rack crane
BBS/Stm/loc [m2] 2100 unsuitable unsuitable unsuitable 1600 1600 1200
ET/Short [m2] 6600 5900 4600 3800 2900 2900 2100
Oriental [m2] unsuitable 720 440 390 290 290 330
NTM [m2] 4200 3200 unsuitable unsuitable 1900 1900 1200
FG [m2] 11’200 7300 5800 4600 3800 3800 2600
Premise [m2] ~2000

- Brand: MLB - Box - Display carton

- Blend: 50% BBS, 11% oriental, 8% stem, 4% local, 9% short. 20% ET
- Premises: Receiving, shipping, offices, etc.
- Stock ranges: tobacco 3 months, NTMs: 3 months, FGs: 2 months.

Figure 97: Approximate surface requirement for a 10 bio cig./year factory

According to this table the surface requirement to store material necessary to run a 10 bio cig/year
factory is situated between 10’000 and 25’000 m2.
For example, adding up the highlighted figures will give the approximate floor surface necessary
for a Low cost Modular Warehouse as defined above. See chapter 3.4.3. In this case the surface
of the warehouse would be 16’420 m2 which corresponds to about 6 LMW modules.
Allow another 2’000 m2 for other premises.
The total surface of the building would be ~18’420 m2
Interpolation for different production volumes is difficult especially for non storage premises and
areas such as receiving, shipping, offices, etc.
In any case, for each project, the total floor surface of the warehouse must be carefully deter-
mined.
See storage specifications for NTM, FG, Raw Tobacco, ET and Cutfiller (page 3-29 & following)

3.4.5. Surface ratio per type of storage

For each type of storage, we can consider a ratio which will give us the surface necessary in each
warehouse for storing a certain quantity of pallets.
This ratio depends on the type of racking (or bulk) and the number of levels.
The following table takes into consideration only some features and it has to be considered as
approximation.

Levels Ratio : PP floor/m2

Block BBS / Raw tobacco 8 (C48) 0.5
Drive-in ET 9 (C48) 0.48
Standard racks Oriental (standard aisle) 4 0.26
Standard racks NTM (standard aisle) 5 0.30
Standard racks NTM (narrow aisle) 5 0.40
Drive-in FG * 4 0.35
Radio shuttle FG * 4 0.45

Figure 98: Ratios : Pallet places floor/m 2

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3.4.6. Utilization rate of storage system

According to the storage system considered for a project, the real number of pallet places does not
correspond to the usable number of pallets. In fact, due to the number of references and to the FEFO
rule to respect, in practical situation, rows of pallet cannot be filled before having been emptied. This
results in a practical capacity inferior to the real capacity.
The choice of the utilization rate for each type of storage system depends on the brand portfolio,
FEFO system and the number of different material suppliers.
Refer to:
S Chapter 3.1.1. for indicative figures.

3.4.7. Location and situation of warehouse building

Choosing a location takes time to investigate thoroughly:
S Possibility of having a bonded warehouse;
S Volatility of the market;
S Political stability;
S Local regulations;
S Excise and duty rates;
S Man hour cost;
S Custom clearance time;
S Climate, seasonal effects;
S Possibility of renting a warehouse;
S Long term contracts, partnership with dealers;
S Land ownership;
S Optimization of transport cost;
S Distance from source;
S Resupply time;
S Soil conditions;
S Access (roads, railway lines, airport).
Situate tobacco warehouses away from industrial and residential areas, with a minimum of 20 m
to the fence line. Analyze the possibility of having a railway line serving the warehouse.
Ensure the location has good transportation access and preferably with land available for future ex-
pansion.
The configuration of the ground and the nature of the soil should be such as to minimize the cost
of site preparation and building foundations.
Survey the land to ensure no unforseen geological characteristics hamper the construction.
Ensure there is no risk of:
S Flood. Away from flood zones with good drainage.
S Explosion. Away from fuel or gas storage.
S Odors. Away from chemical factories, abattoirs, meat processors, rubber processors, spice
dealers, etc.

3.4.8. Building infrastructure

The elements below are an abstract and summary of what is available in the reference guideline
‘Basic Guidelines for Warehouse Building, Scope of Works, Building & Plant Services”, ref [42].

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General building description

The general building shape is as follows:
S Height of the warehousing area shall be 9.5 m and the clear height of the loading docks 4.5 m;
S No basement required or recommended for storage (difficult moisture control).

Landscaping and grounds

S Gravel or concrete a 1 m perimeter around the warehouse to reduce insect risk and facilitate
sanitation inspections and security patrols;
S Plant shrub and trees more than 5 m from warehouse, preferably plant only lawn and flower
beds to reduce risk of birds.

Storm and Sewage drains

S Location should be such as not interfering with rack posts floor fixation and out of forklifts
traffic lanes.

Foundations
S Position floor height 1.2 to 1.3 m above the site level (same height as loading docks) to al-
low direct loading/unloading from adjustable ramps;
S Thermal insulation and waterproofing of the building perimeter and below the floor slab shall
be foreseen to avoid moisture increase.
Floors
S The floor inside the warehouse shall have the capacity to withstand frequent traffic of heavily
loaded forklifts and loads of stored materials (in rack or bulk);
S Maximum loads depend on type of material stored, storage system and building height.
Spread load as well as point loads have to be considered;
S Max needs for floor loads, see table in Appendix 6.7.;
S The floor surface shall be uniform to provide full flexibility and to allow for changing the type
and position of the logistic system at a later stage;
S The floor shall have monolithic concrete slab with surface hardener and anti-dust treatment;
S For narrow aisle trucks and drive-in following standard is recommended: DIN 15 185. For
other types of storage like standard racks and bulk storage no particularly demanding flat-
ness and evenness are required. Recommended is a floor built according to ”DIN 18 202
Zeile 4” as shown below:

Level tolerances
Line References Random limits in mm with measuring point
intervals in m up to
0.1 1 4 10 15
3 Finished floors, e.g. screeds as service 2 4 10 12 15
screeds, screeds to take flooring systems
Flooring, tiled flooring, filled and bonded
floorings
4 Finished floors with higher specifications, 1 3 9 12 15
e.g. self-smoothening floors

Figure 99: German Standard - DIN 18 202

Floor quality table included in Appendix 6.7.: ‘Warehouse storage loads & floor quality’

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Floor joints
S Joints should be limited to a minimum. Construction/expansion joints (>10mm) should be
avoided in main traffic lanes;
S Seal expansion joints flush with the floor to reduce dust accumulation and facilitate fumigation;
S Expansion joints shall be able to withstand heavy traffic of logistic equipment.

Slopes or ramps
The slope of ramps should not exceed certain values according to following parameters (see
below):
S type of handling device;
S frequency of transports;
S weight of loads;
S length of ramp.

hand pallet electric pallet stacker Counterbal- Reach

truck hand pal- and small anced forklift truck
let truck tractor
Frequency±2 trips./h 6% 10% 10% 30% 5%
or length ± 3m
Frequency ±10 trips./h 5% 7% 7% 20% 3%
or length± 15 m
Frequency >10 trips./h 3% 5% 5% 12% 3%
or length > 15 m

Figure 100: Small loads (<100 kg for hand pallet trucks, < 250 kg for others)

hand pallet electric pallet stacker Counterbal- Reach

truck hand pal- and small anced forklift truck
let truck tractor
Frequency ±2 tr./h 3% 7% 7% 18% 5%
or length ± 3m
Frequency ±10 tr./h 3% 6% 6% 12% 3%
or length ± 15 m
Frequency >10 tr./h 3% 4% 4% 6% 3%
or length > 15 m

Figure 101: Heavy loads (>100 kg for hand pallet trucks, > 250 kg for others)

When the slope is steeper than 3% the angle between the horizontal and the slope should be
rounded. The radius depends on the type of the handling device (wheelbase and ground clearance).
Generally a radius of 2 meters is acceptable.

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R ²
2m
If slope >3%

R=2m

Figure 102: Slope scheme

Structural steel works

S The main steel structure shall be of steel/concrete columns and trusses /beams;
S The column gridline spacing shall be minimum of 18.0m x12.0 m such as to allow a
favourable storage arrangement as well as an easy circulation of forklifts;
S Metalwork’s shape should be selected in order to avoid dust built-up, additional surfaces to
clean, potential roosting sites for birds, (profiles shaped like ∩, Λ, O or | not like , V, ⊥,
or ⎭).

Facades
S The upper part of the facades shall consist of insulated steel cassettes and metal cladding
or similar systems. Thickness of insulation to be defined according to local climatic condi-
tions. Light colors shall be used to reduce solar gain (outside surface) and to reduce need
for artificial light (inside surface);
S The concrete finish inside and outside the sandwich panel or masonry wall shall be smooth.

Roof
S Prevent clashes of structural elements with utilities or racking (cable trays, pipes, ducts);
S Do not install any false ceilings or false walls. They are difficult to clean and provide a haven
for pests;
S Roofs for hot and cold climates have different characteristics, nevertheless as general prin-
ciple the construction shall be the following:
S Low slope corrugated steel decking with mineral wool insulation. In cold climate, cover with
an outer polymer bitumen waterproofing layers and appropriate fastening. In warm climate a
outer light-colored, prepainted corrugated steel sheet with ventilated layer with adequate
damp proofing insect grids and roof ridge ventilation.

Internal walls
S Ensure all walls are smooth inside and outside (no rough brickwork, etc.) to reduce dust
accumulation;
S Warehousing area surrounding wall to be made out of brick or concrete on about ~1m in
height to avoid damages to façade elements;
S Install curbs at wall-floor junctions and paint those as well as corners white to encourage
effective cleaning and facilitate inspections.

Doors & windows

S Minimize direct sunlight in the warehouse. Any use of windows in the warehouse is
discouraged. Use windows in office areas only;
S Door types and sizes (forklift traffic doors size 350 cm wide and 400 cm high or at least
forklift’s closed height) shall allow easy access for goods and personnel;

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S Exit doors shall be self-closing with sensor (to prevent pest entry and for security), and
adequate marking;
S All doors, windows and gates shall be well sealed in order to avoid penetration of rodents,
pest and for security reasons.

Lighting
Lighting requirements (light intensity & quality) have to be defined taking into account the type of
activities happening in the various storage area (manned / non manned area, pure storage / buffer
with intensive traffic, inspection / receiving / shipment activity, etc.).
As yellow light less attracts insects than white light, the former should be preferred where true color
rendering is not required.
Inside buildings, use of white light should be limited where interior area is visible from outside and
next to openings to the exterior (doors, loading docks, etc.).
Outside buildings (roads, parking areas, outside section of docks), white light should only be
applied several meters away from building openings (typically 20 meters).
Regarding these constraints, the following parameters are recommended (according to ISO 8995
(2002)):

Room - Area Illumination Type of lighting Color

level
Warehousing areas 100 lux High pressure sodium Light yellow
(non-permanently manned)
Receiving/shipping areas 200 lux High pressure sodium Light yellow
(inside warehouse)
Buffer in production areas 300 lux Metal halide Daylight white
(FG, NTM, CF, raw tobacco)
Palletizing areas 300 lux Metal halide Daylight white
Tobacco leaves inspection 4750 lux Fluorescent 54W Philips Calibrated
(above mobile inspection table 50% 940 / 50% 830 color natural white
only) rendering
Docks (outside of warehouse) 50 lux High pressure sodium Light yellow
Trucks parking areas 20 lux Low pressure sodium Dark yellow
Roads 5 lux Low pressure sodium Dark yellow

HVAC
S Ensure there is an adequate system for ventilation, cooling or heating to achieve the neces-
sary storage conditions. Install recirculation fans or cooled air fans and air treatment system
depending on local weather conditions;
S The distribution of conditioned air should be as uniform as possible;
S Adapt the layout of the air distribution duct to the layout of the storage areas so that the
ducts run over the passages and facilitate access for maintenance;
S In case of using ESFR sprinklers in warehouse, the installation of HVAC ducts shall be
closely monitored in order not to interfere with the sprinkler operation;
S Keep temperature and humidity low;
S Stabilize ambient conditions to avoid mould, infestation, off-taste or off-odor and to maintain
the physical properties of the items, ensuring FGs reach the consumer in good condition;
S Air the warehouse (or section) by opening doors and windows twice weekly (early in the
morning in order to keep the temperature low);

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S Monitor humidity and temperature in all areas;

S Keep a record of the ambient conditions to help necessary corrective actions based on data
(electronic data logger, chart recording thermohygrographs);
S Ensure the warehouse has no leaks, damp areas, or condensation.

Drainage
S Avoid underground piping. Ensure drains are accessible, flushable and roddable;
S Install removable mesh traps on all drains inside and outside, to facilitate cleaning.

3.4.9. Loading docks

Each country can have its own specification for the size of the trailers. It is then important to make
a precise national research in order to fix the right height for the docks.
It is highly recommended to allow enough space for the receiving and shipping area. The normal
surface per loading docks needs to be 2 times the lorry surface. For example: In case of a 13.5m
long and 2.5m wide trailer, we need then approximately 68m2 per dock.
The number of receiving and shipping docks depends on many parameters :
S Number of pallets in & out per shift;
S Number of trailers;
S Size of the trailers;
S Type of goods going in & out;
S Way of handling the goods;
S Quantity of handling equipment and number of operator working on each zone.
Perpendicular or corn ear for lorries. Same height as lorries deck (1.20 to 1.30 m). Centre distance
of lorry axis: min 4 m.
Consider dock shelters that avoid exposing material and people to external conditions.
Parallel to railway line if train (~1.15 m height).
Plan loading dock for small lorries or vans at ~0.5 m height or access by ramp.
Site dock levellers for slope not exceeding more than 7%.
If the warehouse has to be at ground level (as opposed to ~1.20 m above) dug out access ramps
are necessary for docking the lorries (max slope: 3%).
Free space in front of loading docks: min 35 m

min 4 m min 4 m

min 4 m

Figure 103: Corn ear, perpendicular loading docks, and dock shelter
Refer to:
S Reference [23] for additional information.

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3.4.10. Loading methods

Train loading
Container loading

Figure 104: Flat railway truck was modified to load container on train.

raceway
upper guiding rail

mandatory free space

container

hanging box

platform

container wagon
lifting jack
side roller
platform level
motor

lower guiding rail

Figure 105: Example of loading system for containers on train (HAFA system)

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Wagons loading

folding handle

guide rail

L1
wagon floor platform

1200
middle of track

1785

L1 = total length

Figure 106: Siding aluminium dock plate for wagon loading (HAFA system)

Lorry loading
Dock leveler systems
Mechanical

operating rod

fixed lip

lorry bed 225 L1 locking mechanism

dock

heavy duty spring

sliding mechanism
L1 = total length
special guide rail
O = maximum rise
roadway U = maximum fall
X = required operation space

Figure 107: Mechanical dock leveller system (HAFA system)

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Hydraulic

springs for weight equalization

L1 = total length strengthening ribs
L2 = length of platform
S = length of gradient security bolt
BH= depth of leveller leveller platform
O = maximum rise
L1 toe guard
U = maximum fall
S
L2

O
anchoring lugs
U frame
BH

release chain

rubber buffer
hand hole aluminium segmented swing out lip

reverse mechanics for lip

tailift accommodation

Figure 108: Hydraulic dock leveller system (HAFA system)

Manual

L1

165 L2

350
vehicle deck

loading O
dock

two automatic security

lock arms A

L1 = overall length
L2 = body length
O = rise
A = maximum stand-off bridging gap
spring-loaded pawl catches B = width

Figure 109: Manual dock leveller system (HAFA system)

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Dock shelters

Figure 110: Dock shelter (HAFA system)

Mobile loading platform

Figure 111: Mobile loading platform (HAFA system)

Security during truck loading

In order to avoid any security issues during truck loading, such as the truck leaving the loading dock
without being filled, a wheel lock system can be installed. In that case, each loading dock should
have its own system.
There are two recommended suppliers :
S Calematic (Glomot Penot Systèmes)
S Wheel-lok (Rite Hite France)

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Figure 112: Truck wheel lock system

This system offers in all weather conditions, an effective way to help prevent early departure and
trailer creep accidents at loading docks for trailers and trucks with or without rear impact guards (ICC
bars), including those with hydraulic liftgates.

The unit includes wheel guides mounted on both sides for accurate trailer positioning. This helps
ensure that trailers consistently back in on center for safe engagement, extending the lifetime of the
seal, shelter bumpers and building wall.

For better communication with truck drivers a traffic light is in accordance with the position of the
lock arm. As soon as the truck is locked, the system communicates with red and green lights to dock
personnel and truck driver that safe loading and unloading can take place. The truck or trailer cannot
slide, roll or be accidentally driven away from the loading dock before it has been safely and com-
pletely loaded or unloaded. After completion of the loading operation the truck will be unlocked and
is allowed to leave.

Automatic truck loading/unloading

In order to speed up truck loading and unloading, an automatic belt system can be installed. This
system is only applicable for PMI internal flows as it requires all trailers to be equipped with belt sys-
tems.

Figure 113: Automatic truck loading & unloading

Find hereafter three potential suppliers :

S Legras Industrie
S Konstruktiewerken Berlikum
S CSI

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Figure 114: Automatic truck loading & unloading in Philsa (Turkey)

3.4.11. Raw tobacco leaf, cut filler and addbacks storage

Tobacco is packed with a moisture level of 12 to 14 %.
A pocket of high moisture (20 to 25 %) in the tobacco will result in moulding the entire package.
Keep temperature and humidity low.
A minimum is not given, however, cold tobacco will require either additional time to temper or differ-
ent conditioning parameters, or both.
Refer to:
S PMI quality document, reference [15] for recommended temperature and humidity.

3.4.12. Non tobacco material storage

For example crystallization of ink may occur below 10 °C.
Risks associated with non-conformance are not negligible: for example if liquid adhesives are fro-
zen, even for a short time, they will be unusable (machinability problems).
Refer to:
S PMI quality document, reference [15] for recommended temperature and humidity.

3.4.13. Finished goods

Refer to:
S PMI quality document, reference [14] for recommended temperature and humidity;
S For BUBD, PMI quality document, reference [4] .

3.4.14. Service areas and other premises

Plan on 15 to 25 m2 for maintenance and warehouse equipment spare parts (install a hoist for mast
dismantling).
Computer room, electricity room (sub-station), fire protection room (sprinklers), waste compacting
room, boiler plant.
Offices: 9 - 12 m2/person
15 - 20 m2 for offices receiving visitors, meeting, etc.
Kitchen, eating areas, changing rooms, showers, lavatories for personnel and third parties must be
completely tiled to facilitate cleaning. Separate from the warehousing area by two sets of doors for
hygiene and to limit pest movements.

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3.4.15. Battery room

A separate room or clearly defined area must be allocated for forklifts and the charging of electrical
batteries.
The room layout should:
S Allow vehicles to be recharged to get in and out. Room layout and access doors to be
designed accordingly.
S Allow access for servicing. The batteries, or vehicles to which they are fitted, should have a
space of at least one meter between them;
S Be at normal ambient temperature (not below 5°C and above 35°C ), humidity not controlled;
S Have the chargers mounted on, or against a wall;
S Have the connections from batteries to chargers as short as possible. Locate chargers
accordingly;
S A hoist system with a lifting capacity of 1500 kg to exchange batteries can be necessary if
the use of a forklift is not possible. For all trucks (except counterbalanced forklifts), use of a
fast horizontal battery change device is recommended.
The air exhaust must:
S Provide sufficient air circulation during charging cycle to avoid hydrogen accumulation by
natural ventilation or an exhaust fan;
S As hydrogen is lighter than air, make sure that the exhaust air ducting is located at the top of
the room;
S Have air supply diffusers at the bottom of the room to allow good air circulation.
Gas emission with airtrack and aquamatic batteries

Ventilation
Charging
Charging
Capacity

Charger

Average
Battery

supply
Amps

Amps
time

rate
Qty

VDC Ah V AC hour A AC A DC kW m3/h

Counterbalanced 1 24 700 400 8 3.0 28.0 2.1 18.1
forklifts 2t
Tow tractor 1 24 600 400 8 2.6 24.0 1.8 15.6
Radio shuttle 1 24 250 230 7 3.7 10.0 0.9 6.5
Floor cleaner 1 36 250 230 8 4.9 10.0 1.1 9.7
Pallet stacker 1 24 250 230 8 3.3 10.0 0.8 6.5
Electrical 1 24 250 230 8 3.3 10.0 0.8 6.5
handpallet

Figure 115: Minimum requirements

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Safety equipment must be on hand

S Fire extinguisher suitable to deal with electrical fires;
S Eye wash to deal with accidental acid-splash. Such equipment is essential to the installation;
S Appropriate protective clothing must be worn when servicing the batteries on charge;
S A notice prohibiting the use of naked flames and smoking must be displayed in the charging
room.
Refer to:
S Chapter 3.7. “Safety, Security, Cleaning”;
S Reference [43];
S B&U, Room requirement sheet, 2.19 Battery charging.

3.4.16. Inspection area for tobacco leaves

The Tobacco leaves inspection area or system is mainly intended to allow Leaf department to visual-
ly inspect / recognize tobacco lots and perform sanitary inspections.
The area (min. 100m2) should be located in the immediate vicinity of tobacco storage area and
should also allow tobacco lots handling, sampling (for further analysis by PMI R&D) and inspection
preparation by warehouse personnel.
The inspection work can take place in a dedicated room or using a mobile unit moved in storage
area.
The inspection task lighting system must be similar to the specification elected for the PMI HQ in-
spection rooms (to provide identical inspection conditions for Leaf specialists all over and compari-
son with master samples). Briefly, 4,750 Lux are needed to inspect all tobacco types generated from
a (50:50) mix of 54W fluorescent tubes of 940 and 830 color rendering/temperature specifications
(Philips made tubes).

Figure 116: Example of Leaf Sample Inspection Room (PMI HQ - Lausanne)

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Figure 117: Example of mobile light unit for leaf inspections/recognitions

Refer to
S Reference [44], for more details.

3.4.17. Picking area for Finished Goods

It is highly recommended to keep always in the FGs warehouse or in the shipment area a zone for
the picking.
Some of the PMI factories ship only full pallets with one single brand per pallet. But it is necessary
to keep in mind the possibility to prepare mixed pallets or half pallets.
The surface needed depends mostly on the number of brands and the quantity of mixed pallets per
day.

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3.4.18. Recommendations for warehouses

min.4m min.4m min.4m

NO DEADENDS

min.35m
10 BIO.CIG/YEAR

R min.30m
APPROX. 10’000--25’000m2 DEPENDING ON STORAGE SYSTEM
LMW (9,5 m HIGH WAREHOUSE): 16’000m2/10 BIO.CIG/YEAR

0,5m HIGH
1,2m HIGH

5--10m
min.5m
1 SHIFT OPERATION

DRIVER
OFFICE
& CONTROL
RECEIVING
OFFICE
OFFICE
NTM RECEIVING LEAF RECEIVING
AREA AREA

ORIENTAL TOBACCO :
RACK STORAGE TOBACCO,BBS,STEM :

PLANNING
BLOCK STORAGE

& WIS
RELAX
ROOM
WAREHOUSE

1 STORY 1,2 TO 1,3m HEIGHT

INSPECTION
PRACTICAL LAYOUT NO BASEMENT

SLIDE IN 3 LEVELS (1 DAY)

LEAF PREPARATION AREA

LEAF
STEM,SHORTS,ET,IS :
DRIVE--IN RACK PRATICAL COLUMN GRID

8 STRAND/cm SCREEN ON
WINDOWS & OPENING

NO DIRECT SUNLIGHT
MAX. WATER TIGHTNESS

STEM,SHORTS,ET,IS : SANDWICH PANEL WALL

DRIVE--IN RACK SMOOTH INSIDE & OUTSIDE

EXTERIOR LIGHT COLOR

3,5m

4--5m FREE HIGHT

4m

UNDER GIRDERS
IN OTHER PREMISES
3,5m

FINISH FLOOR / 40cm UP WALLS

PALLET
REPAIR

HOIST SYSTEM HOIST SYSTEM

ACID & OIL PROTECTIVE

FUTURE EXPANSION

GOOD VENTILATION
LAND AVAIBLE FOR

BATTERY ROOM :
GLUE ROOM CLEANING
AREA

RAILWAY LEVEL --1,15m

DRIVE IN
4 LEVEL
FOR 50 BIO.

200 PP
FINISHED GOODS :
DRIVE--IN RACK
FG
FINISHED GOODS : PALLETIZING
STOREROOM AREA
DRIVE--IN RACK
1 LMW MODULE 3 SHIFT OPERATION
84x36m
48 PALLETS
9,5m HIGH BOX
FLOOR : PICKING AREA
PRESSURE: 50Kg/cm2
LOAD: 2000Kg/m2
NTM : 2 SHIFT OPERATION
FLATNESS: 5mm/m
RACK STORAGE MAX SLOPE: 1mm/m
AISLE WIDTH:1,5m
MANAGER

OFFICE

MAIN AISLE:3,5m
210 PALLETS--FLOOR
RELAX
ROOM

PALLET
PICKING AREA
PLANNING
& WIS

HIGH PRESSURE SODIUM

100 LUX
OFFICE

HEAT,SMOKE,FIRE
DETECTION
SHIPPING
OFFICE

SPRINKLERS FIRE
EXTINGUISHERS HOSES
NO FALSE CEILING OR
DRIVER
OFFICE

WALLS/GOOD INSULATION
1 SHIFT OPERATION

SHIPPING AREA
min.5m
min.10m

CONCRETE OR GRAVEL
min.1m

min.20m

TRASH

SECURE PERIMETER FENCING

WITH GATEHOUSE
NO VEGETATION
min.2m

min.20m

RESIDENTIAL
& INDUSTRIAL
AREAS

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3.5. CHECKLIST FOR EXISTING BUILDINGS

When visiting, inspecting and especially choosing an existing warehouse for use or purchase, take
time to investigate:
S Cleanliness and tidiness;
S Off-odors such as animal skins, fertilizers, chemicals, rubber, cotton, tires, fuel, etc.;
S Lighting (mask windows if necessary);
S Possibility of airing the storeroom;
S Temperature in the storeroom (thermograph);
S Humidity in the storeroom;
S No storage lower than the ground floor (difficult moisture control);
S Carriage and lorry unloading;
S Health/cleanliness inspection (infestation);
S Possibility to carry out fumigation;
S Other articles stored;
S Road and rail equipment;
S Handling equipment;
S Floor quality;
S Floor load bearing capacity;
S Building free height;
S Environment;
S Safety and security;
S Fire protection;
S Water supply for fire fighting;
S Anti-theft devices or possibilities (electronics, guards);
S General impression.
For further information related to building and utilities design, please, have a look on the PMI Engi-
neering SA web site : http://www.intranet.pmi/hq/depts/op/fg/engi/content/02_functionalgroups/in-
dustrial_projects/ipghome.aspx
Refer to:
S “Warehouse survey, Philip Morris Companies Inc.”(Appendix 6.3.2.).

3.6. WASTE HANDLING CONCEPT

The generation of waste offers a great opportunity to make production processes more efficient and
must not necessarily have a negative impact on cost.
As the waste is not the main product, there is a high risk of not taking the handling and removal of
outcoming waste sufficiently into consideration, unless we can find an economic reason in doing
so. The best example for that in the Tobacco Industry, is the removal of wasted tobacco and tobacco
dust due to the risk of infestation with beetles or moths, which can incur tremendous costs. Another
example may be glass, paper or metal with the possibility to make money from it.
In addition to the economic reason of the waste removal, other main reasons have to be mentioned:
Cost effectiveness :
S Opportunity to make production and logistics more cost effective.

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Plant tidiness :
S Aesthetic appearance;
S Effective logistics without obstacles;
S Avoidance of working accidents or negative effects on health;
S Avoidance of machine breakdowns by settled waste.
Philip Morris Principles and Policies :
Refer to :
S Reference [36].
Local legislation :
S Compliance with local regulations and rules.
Reputation :
S Growing environmental consciousness;
S PMI wishes to anticipate than to react.
A concept for the waste handling is necessary, because nowadays it becomes more and more im-
possible and undesirable to send all waste for landfilling. Landfilling should become the last option
in the future. All concepts for the waste handling will have to pass the following prior steps:

DESIRABLE UNDESIRABLE

The documentation concept doesn’t show measures for avoidance of waste. This is a long term is-
sue and projects are always running with a lot of involved departments.
For more details about waste handling/pre-treatment are available, refer to:
S “Guidelines for waste management in tobacco factories”, reference [29];
S “Les déchets industriels de PMPSA”, reference [30].

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3.7. ENVIRONMENT, SAFETY, SECURITY, CLEANING

The warehouse management owner is responsible for the safety in all sections of the warehouse:
S Forklift drivers must have training and be issued with a license;
S The lifters, pallets and racks have to comply with the legal safety and security regulations;
S Check racks every 6 months;
S Ensure proper fire protection when stacking empty pallets, they burn very quickly.
Refer to:
S References [17], [18], [21], [25], [36], [46];
S Local laws and regulation;
S Insurance policies;
S PMI quality document, reference [2];
S NFPA (National Fire Protection Association).

3.7.1.Access and egress

The access road must be suitable for fire trucks from at least 2 directions.
Mark pedestrian and exit routes.
Avoid dead ends in external and internal layout.
Refer to:
S Reference [36].

3.7.2.Pilferage and burglary

Provide a secure perimeter fence with a gatehouse for security control.
The warehouse site should be completely fenced off and all incoming and outgoing traffic should
be under the control of a door-keeper.
The access in the warehouse for unauthorized people is forbidden.
Secure the warehouse area against burglary, theft, sabotage, etc.:
S Install locks on every door;
S Strict control of the number and allocation of keys;
S Install surveillance or alarm systems (television cameras, intrusion detection),
S Organize a service of rounds during the night.
Refer to:
S Reference [36].

3.7.3.Material classification
Classify all materials according to the different hazards:
S Ordinary combustible material;
S Plastic;
S Flammable liquids;
S Low flash point liquids (ref. [2]);
S Aerosols;
S Flammable compressed gas.

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Plan storage location and design accordingly:

S Fire walls;
S Drainage.
S Ventilation;
S Protection;
S Separation/segregation.
Ensure:
S Effective housekeeping;
S Enforcement of rules.

3.7.4.Fire protection
The leading causes of fire are:
S Electrical failure;
S Overheating;
S Arson, incendiary;
S Cutting/welding;
S Spontaneous ignition;
S Smoking.
Use passive and active fire protection:
S Fire walls and doors;
S Building construction;
S Forbid smoking, display signs;
S Have only metal waste paper baskets in offices;
S Install sprinkler system if required and ensure periodical controls. Where there are racks,
consider ESFR (Early Suppression Fast Response) sprinkler systems that don’t need to be
installed in the racks themselves.

If ESFR sprinklers are installed, follow NFPA/FM Standards/Datasheets.

Refer to local law and regulation and insurance policies.

Bulk storage area :

No minimum flue space (flue space = horizontal distance between storage units).

Racking area with storage height between 7.6m and 12.2m (top of highest load)
No solid shelves are allowed.
S Single-row racks (= standard racks)
Flue space between the pallets must be wider than 7.5 cm on each side;
S Multiple-row racks with butted load in one direction (drive-in)
Flue space between pallets must be wider than 15 cm in the non-butted direction.
In any case, the vertical alignment of the flue spaces is to be maintained as much as possible.
S The roof/ceiling slope should not exceed 16.7%;
S Distance between top of highest load to sprinkler head must be more than 914 mm;
S Distance between sprinkler deflector and ceiling must be min. 127 mm and max 460 mm.

For other racking systems, refer to FM DS 8-9 and NFPA 13.

S Make a procedure for cutting and welding including fire-watches.

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Install detection and organize response:

S Heat, smoke, fire detectors;
S Different types for different situations;
S Identify the location of firefighting equipment and hazardous materials on a plan that is kept
current. Review the plan regularly with local fire authorities.
Plan the layout:
S Avoid obstructed detectors;
S Avoid measured parameters to be deflected away;
S Possibility of testing.
Install an alarm:
S In attended area;
S Organize a reaction procedure;
S Provide warehouse personnel with a fire drill;
S Direct line to the fire brigade.
Place fire extinguishers and hoses and ensure periodical controls:
S They must be reachable at any time and their position clearly marked;
S Extinguishers as first aid to deal with small fires;
S Extinguishers are not fire fighting tools except large wheeled units;
S Determine number and location by accessibility and fire regulations;
S Ensure sufficient water supply and pressure for hoses and water storage for sprinkler
system if installed;
S Fire-hydrants should be placed near the building and connected to public water main or to a
reservoir;
S Ensure that employees are trained in the correct use of fire fighting equipment, including
extinguishers.
Electrical equipment:
S No combustible storage in switch gear rooms;
S Cable trays and electrical panels and junction boxes must be kept clean;
S Junction box and panel covers must be in place;
S Integrity of explosion-proof or dust-tight fixtures must be made sure;
S No unauthorized extension cord must be used;
S Cable trays must always be kept clean;
S No unauthorized heaters must be used.
Stacking empty pallets:
S They burn very quickly and extremely fiercely (850°C in 15 min.);
S Do not stack them to close to the ceiling (sprinkler-hampering);
S Do not stack them close to fire doors (they fall over);
S Do not concentrate large amounts close to each other;
S If stored externally, store them at least 10 m away from any building wall.

3.7.5.Flammable and combustible liquids storage

According to the NFPA standards AC flavoring are classified as flammable liquids depending on the
indicated flash point.
Wherever possible they should be stored in a separate detached liquid warehouse 60 m away from
any exposed building. In these conditions the hazard warehouse requires no specific fire protection.

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If a detached liquid warehouse is not feasible refer to NFPA for other possibilities.
Dispensing of liquids is not allowed.
Refer to:
S Reference [21].

3.7.6.Environment
The environment must be thought of in relation to the safety and security rules with:
S Spill containment and protection of sewers;
S Run-off water from fire fighting;
S Labelling of goods;
S Disposal of packing material.

3.7.7.Handling equipment
Refer to:
S References [40] and [41].

3.7.8.Examples of what not to do

Figure 118 : Stack goods properly Figure 119 : Use the right tool (ex. to rotate
to avoid damage bales of tow)

Figure 120 : Use the right tool (to reach Figure 121 : Clear out debris regularly and
required height) avoid potential fire sources

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Figure 122 : Store goods on pallets and abide

by maximum layers of storage

3.7.9.Cleaning
Keep everything clean.
Use industrial vacuum cleaners, with suitable attachments (3000 W, 7 m3/min).
Do not use air blowers.
Prepare cleaning, inspection and auditing schedule.
Define procedure and roles of all personnel.
Facilitate work of cleaning staff, improve access (gaps between storage pallets and walls, spaces
underneath and behind machinery, fixtures such as below weigh scales).
Encourage cleaning and facilitate inspections, paint corners and wall-floor junctions white.
Avoid cramped storage to facilitate access.
Do not build stacks into walls or corners, keep clear from doors, windows, ventilation.
Pay attention to drains, gullies and sinks. They are an important source of mould, flies, cockroaches,
other insect pests and rodents.
Completely seal opening around utility pipes, drains, cables and ducts passing through walls and
floors.
Maintain and clean doors, windows, fan vents, air bricks, hoist apertures.
Brief cleaning personnel on nature of pests. Encourage them to report findings and help in early
detection of infestation, underlining the importance of their work.
Sweep floors frequently.
Clean up tobacco dust accumulated in cracks and crevices.
Keep walls, warehouse equipment and devices clean.
Immediately repair broken windows, damaged roofs and doors and overall weatherproofing.
Clear out broken cases, debris and waste regularly.
Empty all bins daily, clean them regularly.
Pallets are a potential source of infestation and cross-infestation. Subject them to regular inspection
and cleaning.

3.7.10. Monitoring for insects

Monitoring is necessary when external ambient temperatures are above 15 °C , when the insects
are able to fly.

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A comprehensive pheromone-baited trapping program is necessary because of the possibility of

bringing infested tobacco into warehouses and the risk of feral insects entering.
Refer to:
S References [7] to [12].

3.7.11. Fumigation
Fumigation consists of using gaseous pesticide that penetrate the tobacco mass (bale, case or
hogshead) at atmospheric pressure and, when used correctly, kills 100% of all life-stages of insects
within.
Fumigation is usual only for tobacco. Before attempting fumigation consult your QA or Leaf Manag-
er or PMI R&D.
Fumigation is a specialized task and requires qualified, licensed, experienced contractors or per-
sonnel. Local regulations should be applied.
Affiliates who do fumigation should appoint personnel to be trained to interact knowledgeably with
contractors. Fumigation is potentially dangerous and requires extensive safety precautions.
Fumigation cannot be done when the tobacco temperature is below 16°C for the cigarette beetle
(Lasiodoma serricorne) and below 10°C for the tobacco moth (Ephestia elutella).
Fumigation can be conducted in:
S Available containers (landsea or railcars);
S Under tarpaulin sheets;
S Specially built rooms or chambers;
S The whole warehouse.

Fumigation in a freight container outside the building (min 20m distance), under a
shelter
Provide a secured area for such fumigation. Size the area to accommodate the number of
containers foreseen. Security will require at least a cordon of 20 m around the site.
Concrete or pave the area slab and provide good drainage. Capture the runoff liquid for proper
disposal if it poses an environmental hazard.
Cover the area with a roof to allow aeration in inclement weather.
Disadvantages of this type of fumigation :
The fact that it is performed in an ”open environment” remove the flexibility to do it during winter (at
a possible very low temperature) in cold countries, that way forcing us to wait for spring (higher
temperature).
Advantages of this type of fumigation :
It is a cheap concept.
No too strict regulations as fumigation is not performed inside a building.

Fumigation under a polyethylene sheet (tarpaulin fumigation) in a separate building

Stack tobacco in standard stack volumes to allow standard sized sheets and fumigant dosage.
Allow at least 1 m between stacks and walls to allow fumigators to properly place the sheets and
seal to the floor with sand or sand snakes.
Plan for stacks fumigated under sheets to be cordoned to exclude workers not involved in the fu-
migation. This usually means the warehouse is closed during the sheet fumigation.

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Ensure an even floor, without drain covers, expansion joints or other openings to prevent gas leaks.
Disadvantages of this type of fumigation :
The building should be heated to allow fumigation.
Advantages of this type of fumigation :
This separate building may be used to isolate tobacco suspected to be infested to conduct a close
monitoring without any risk of cross- infection.
Should fumigation be conducted regularly, fumigation ”bubble” (tent) may be installed in this
building.

Fumigation in a closed chamber

Chambers should only be considered if fumigation is conducted regularly. The following are only
brief guidelines for using phosphine. Involve experienced contractors.
Obey local or national rules governing the construction, specification and pressure testing of such
chambers.
Aim for maximum gastightness with gastight walls and well sealing doors.
Install a fan to aerate the chamber, the exit gas may be passed via a filter to ”scrub” the air. Such
scrubbers are usually activated, metal-coated charcoals.
Install an electric device external to the chamber to avoid the corrosive effects of phosphine.
Allow an air space around the entire chamber.
Disadvantages of this type of fumigation :
Comply with possible strict regulations.
It is an expensive concept.
There is a possibility that we do not perform any more fumigation in 5-10 years.
Advantages of this type of fumigation :
The fact that it is performed in a closed chamber that can be heated, gives the advantage that we
can do it any time of the year.
Safe fumigation type as the chamber is built to be gastight.

Fumigation in Warehouses
Preference should be given to stack fumigation because they are simpler, use less fumigant and
are less expensive.
Construct to allow simple closure and sealing of the warehouse to minimize the amount of tempo-
rary sealing.
Ensure at least a 20 m security perimeter around the warehouse.
Train personnel to liaise with fumigating contractor.
Protect any corrodible material from exposure to phosphine gas.
Disadvantages of this type of fumigation :
Comply with possible strict regulations.
Whole or main part of the warehouse cannot be accessed for a certain period of time.
Advantages of this type of fumigation :
The fact that it is performed in a closed chamber gives the advantage that we can do it any time of
the year.

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Cheap concept.
For a full description of fumigation, refer to:
S PMI quality document, reference [6].

3.8. STAFF TRAINING/ORGANIZATION

The personnel includes:
S A warehouse supervisor in charge of the current administration tasks;
S Store-keeper(s) responsible for the control of incoming and outgoing goods, as well as of
the preparation of shipments;
S Forklift-driver(s);
S Unskilled labor mainly for the handling of individual cases when sorting goods, preparing
shipments, loading/unloading of trucks or railway carriages, etc.
Use skilled and trained personnel for:
S Tobacco storage;
S Housekeeping;
S Safety & security;
S Smooth handling.
Employ a sufficient number of reliable and trusty specialists for the continuous professional supervi-
sion of the tobacco. They should be capable of:
S Differentiating the tobacco types.
S Recognizing infestation.
S Ascertaining the condition of tobacco (moisture, mould, foreign odor, etc.)
S Reconditioning tobacco and packages.
S Sewing bales.
S Cutting samples.
Establish and train a first response fire fighting team for each shift.
For high bay warehouse (or any other highly automated systems), it is recommended to train the
operators specifically, according to racking system supplier recommendations and international
safety standards.
Refer to :
S Chapter 3.7. “Safety, Security, Cleaning”;
S “Warehouse survey, Philip Morris Companies Inc.” (see Appendix 6.3.2.).

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CHAPTER 4.
LOGISTICS IN OPERATIONS
Contents of this chapter
4.1. PRE-BLENDING & INFEED 4.1. PRE-BLENDING & INFEED LOGISTICS
LOGISTICS p.4-1
4.2. ADD-BACK LOGISTICS p.4-5
4.1.1.Pre-blending area operations
4.3. CUT FILLER STORAGE
& HANDLING p.4-7 Pre-blending area operations involve three main activities:
4.4. CASING KITCHEN
LOGISTICS p.4-9 S Batch preparation;
4.5. FULL CASING S Virginia, Burley and Oriental lines feeding operations;
KITCHEN p.4-9
4.6. SECONDARY LOGISTICS
S Stem line feeding operations.
p.4-11
4.1.2.Batch preparation
The tobacco for Primary treatment is prepared in batches accord-
ing to a schedule defined by the Affiliate’s Leaf department (de-
rived by assumptions of HQ Leaf department in Lausanne). Each
batch follows a particular sequence of tobacco types and lots.
A one shift to one-day storage guarantees the Primary operations.
The tobacco blend sequence may require a quantity of tobacco
lower than a single handling unit. In this case it is necessary to split
the tobacco packed in cases and/or hogsheads in the precise
weight quantity defined by the sequence (see§ 4.1.3.)
In order to define the required space for the batch layout, it is im-
portant to know the number of complete batches to place in this
area, amount and type of tobacco per blend, the tobacco packag-
ing and the primary machinery layout.

Virginia, Burley and Oriental lines feeding operations

The design of the logistics equipment and layout must take into
consideration that the feeding of the three lines is a continuous
process, which alternates different types of tobacco according to
a pre-defined sequence. Any interruption in this process could
result in a poor quality blend. This is the reason why it is strongly
recommended, when the space allows it, to prepare tobacco
batches in advance.
Virginia, Burley and Oriental lines can either be three separated
lines or combined. If they are separated, each line will have its own
feeding station and the corresponding batches should be placed
in front of each line. In case it is combined, the feeding occurs at
two points: one for oriental tobacco and the second one for the
other leaf tobacco.
The tobacco cartons are de-cased with an automatic/semi-auto-
matic de-casing station or manually. The tobacco bales and the
hogsheads are opened manually.

Stem line feeding operations

The stem line is a continuous production line. It does not follow any
sequence and it does not require particular batch preparation.
The stem line is furnished with a tipping station for handling raw
stem.

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4.1.3.Logistics recommendation in the pre-blending area

Tobacco batch requirements

A tobacco batch includes the quantity of tobacco with defined Tobacco type, Tobacco lot ID and To-
bacco Material Code.
The logistic parameters such as location of tobacco warehouses versus Primary equipment, avail-
able building space, customer requirements complete the information to set the number of batches
to lay-down per shift / day.

Tobacco batch preparation area

The batch preparation area is the area where the batches are prepared according to the defined
sequence. This area could be inside the Primary building close to the Primary equipment or in a
separate area.
The tobacco preparation area should take into consideration the space required to:
S Lay-down the batches;
S Handle the tobacco units during picking activities;
S Split partial tobacco units;
S Prepare the final blend sequence;
S Guarantee that the manoeuvring of different types of logistic equipment is compliant with
PMI safety policies and procedures.
The batch composition tells us :
S Batch layout (amount of units);
S Splitting requirements.
The space required for the tobacco batch preparation is calculated according to the worst possible
batch composition (the batch with the highest amount of units) and the sequencing.
A reduction of space could be obtained by stacking the tobacco cases 3 high. Tobacco bales may
also be received on intainers thus changing the batch layout.
Splitting station and hogshead opening area :
Splitting station structure:
The structure is made of two metallic plates, one used as a platform and the second perpendicular
to the first as a thrust. The forks of the counterbalanced forklift are used as a splitting tool.
It is recommended to use a plate supported by a pallet in order to avoid the loss of tobacco.
Half unit weight control is performed with a scale. Two systems are possible:

Counterbalanced
forklift forks
RAW
TOBCCO
C48 A SIZE

Splitting station Plate

Figure 123: Splitting station

1. Standard floor scale: The operator has to put the tobacco on a plate pre-positioned on top of
the scale and the weight is calculated by reducing the plate weight from the total.

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2. Scale linked to the counterbalanced forklift forks: Used, for example, in BoZ, the system is
directly installed on the truck. The operator can always see the weight of what he is trans-
porting.
A bar code printer is required for the labelling of the half units.
The remaining half unit is stored on standard racks, located next to the splitting station, for tempo-
rary duration.
Temporary
storage area
Second
half unit

Plate

First
half unit
Primary
feeding area

Figure 124: Tobacco unit splitting

Hogshead opening:
S The hogshead opening and the splitting operation generate a lot of dust and waste. It is thus
convenient to perform those two tasks in the same area.
S During the opening, the bottom plate of the wooden packaging is kept and the tobacco is
handled on a pallet.

Figure 125: Hogshead manual opening

Tobacco batch preparation off-shore

In case of space constraints and/or tobacco storage in off-site warehouses, tobacco batches can
be prepared in the external warehouse/s. The picking activities must consider the reverse sequence
to load and unload the lorries.
It is recommended to foresee the lorry’s unloading into the factory directly in LIFO (Last In First Out)
order.

Handling of tobacco batch and feeding Primary lines

The choice of the handling equipment depends on the space availability and the type of feeding sta-
tion, the required feeding speed and the PMI & local safety policies and procedures to apply in that
factory.

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The following handling equipment is usually used for the tobacco feeding:
S Forklift trucks of 1.5 tons with clamps or with turnable forks plus attachment to insert into the
forks;
S Hand-pallet trucks to handle oriental bales on pallet;
S Electrical stacker to move cases on pallet closer to the feeding station.
The crane is the best choice in case of space constraints.
The evaluation of the best handling to adopt (automatic or manual) should be considered on a case
by case basis. This evaluation should also finally take into consideration the impact on the required
labor while running the Primary line operations.
The C48 cartons are handled the following way:
The following is a step by step presentation of safe manual feeding operation of the line with C48
cartons:

1. Counterbalanced forklift (CF) 2.a. CF rotates the C48 carton 90° 2.b. C48 carton at 90°!
transports and places the C48 with the turnable device (the CF
carton on top of the conveyor is equipped with a special turn-
able device allowing a 360° rota-
tion of the forks)

3.a. Operator cuts the carton straps 3.b. Operator opens the carton and 4. CF rotate another 90° the C48
takes out the upper protection carton with the turnable device
paper

5. CF places the carton on top of the 6. CF pulls up the carton. The pres- 7. After the tobacco is totally re-
conveyor and then changes the sure of the clamps must not be leased the CF puts the C48 car-
position of the clamps from the too high because it will deform ton down near the conveyor and
middle to the top of the C48 carton the C48 carton the operator

Waste in the pre-blending area

While designing the logistic layout, it is recommended to foresee the necessary amount of marked
areas for the following wastes: folded cartons, hogsheads, jute, paper, plastic bags and empty
pallet.

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Example of a Pre-blend & Infeed area layout (PM Philippines)

There are 5 infeed lines in the area: one stem line, 2 oriental lines, one Burley/Recon line and finally
one Bright line.
The concept is to have for each type of raw tobacco, a zone reserved for the preparation of the
batches already sequenced. This reduces the risk of errors in deliveries and facilitates the work of
the Primary operators as only one type of tobacco is handled.
Before feeding the line, it is the duty of each line responsible to control that the batches are com-
posed with the right items (label number) and sequenced correctly. This reduces the risk of errors
and gives enough time to the warehouse operators to replace the wrong item or organize the se-
quencing correctly before feeding the line.

STEMS

ORIENTAL

VIRGINIA

BURLEY RECON

Figure 126: Pre-blend & infeed area in PM Philippines

4.2. ADD-BACK LOGISTICS

The add-backs are Improved/Heated Stems (IS/HS), the Expanded Tobacco (ET) and the Tobacco
Shorts.
The Improved Stems are specially processed stems. It is fed to the process from silos, bins or car-
tons. This mainly depends on the available process equipment.
The Expanded Tobacco is specially processed tobacco used mainly for its rod filling property. It is
fed to the process from silos, bins or cartons. This mainly depends on the available equipment.
The Tobacco Shorts are initially non-conforming cigarettes, which have been ripped in order to be
reused up to a certain percentage in any blend. They come directly from the ripping room and are
fed to the process through a feeding line.

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It is required to have a buffer area for the ET & HS & Shorts.

4.2.1.Buffer
The buffering for all add-backs is sequenced according to the batches produced that day.
The following criteria should be taken into account when calculating the buffer area :
S Sufficient corridor for forklift handling;
S Sufficient space for buffering (according to the blend composition including the maximum
possible quantity of add-backs).
Although add-backs are usually stored in cartons or bins, that may change if there is a DIET plant
and a stem line. In case of cartons and/or bins, the add-backs are either stored in bulk or in a sophis-
ticated automatic system.

4.2.2.Handling
In case of manual handling, the add-backs are handled by counterbalanced forklifts equipped with
carton clamps.

4.2.3.Example of an add-back area (Philippines)

The add-backs are delivered from the receiving area by counterbalanced forklifts equipped with car-
ton clamps and stored in allocated areas.
The add-backs are fed to the process by counterbalanced forklifts.

Figure 127: Organization of the area (proposal):

Buffer zone for folded PM80 on pallets and preparing Buffer zone for improved stems PM80 cartons
them for ET filling station
Buffer zones for full ET PM80 cartons Buffer zone for empty cut filler bins
Buffer zone for small lamina C48 cartons Buffer zone for full cut filler bins (10 batches)
Buffer zone for full short bins

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4.3. CUT FILLER STORAGE & HANDLING

4.3.1.Introduction
The Cut Filler (CF) storage is the principal link between Primary and Secondary production areas.
The required functionalities have been described in “Study of Cut Filler Storage Alternatives” issued
by PMI Engineering in May 2000.
The objective of this chapter is to propose some recommendations in case a manual storage system
is used.

4.3.2.Cut Filler operations

When having manual operation the CF is filled in bins stacked in four levels in the Primary area. A
forklift must always be available to empty the full station and fill the empty feeding station with bins
as well as supply bins to the feeders of Secondary machines.
The CF area (or CF buffer) is the compromise between storage requirements and available space.
In the case of having a limited CF area, it is recommended to mark it as ’a non pedestrian area’ for
safety and security reasons. Only forklifts will move around during the feeding operations.

4.3.3.CF container type, bin storage

The CF is usually stored in wooden bins with a capacity up to 2 m3 (PMI standard).
CF is also stored in 1.33 m3 and 1 m3 (PMPSA) bins.

4.3.4.CF Storage requirement

The calculation of the storage requirement results from the consideration of the daily usage of CF
bins.
Therefore, Primary working pattern versus Secondary working pattern addresses this usage.
An additional safety stock could be considered upon customer request.

CF storage area
The storage area for CF bins should be defined taking into consideration the following:
S A dedicated space for each batch of CF blends;
S A space to place empty bins (these are = 5-10% of total bins);
S The bins are stored 4 high.
It is recommended to store the batches of CF bins in ’rows’ (Figure 125). The rows should be
marked on the floor and the depth of each row depends on the number of bins required per batch.
It is also possible to have an automatic CF bins handling system (e.g. PMPSA, see Figure 128):

Figure 128: CF bins

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Required number of CF bins

The calculation of the total required CF bins is derived from the storage requirements and the worst
filling capacity per bin, which is equal to of 130 kg per wooden bin (1.33 m3) and of 400kg (2m3).
We recommend considering additional requirements for handling and cleaning empty bins.

Type of bin (2m3) Total weight (kg)

Empty 101
IS 420
ET 360
CF 500
Shorts 440

4.3.5.CF handling requirements

When choosing the handling equipment, it is recommended to guarantee the maximum flexibility.
For example, a forklift with turnable forks can handle both cut filler bins and CF boxes
(C48/C80/PM80/...). Consider also a special device to avoid damaging the bins by overcompres-
sion.

4.3.6.Example of a CF Area (Klaipeda factory)

The following example of layout represents the solution adopted for the CF buffer in Klaipeda’s
factory (Aug 2000).
The CF storage area indicated in the layout satisfies a storage requirement of 16 batches. The exist-
ing PML portfolio and production volume requires a max of 12 batches for handling CF full and
empty bins.
One batch contains up to 32 bins (8 on the floor stacked 4 high) that results in an availability of space
for 384 bins.

Figure 129: CF area in Klaipeda

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4.4. CASING KITCHEN LOGISTICS

There are two types of Casing Kitchen : The AC/PC Kitchen and the Full Casing Kitchen.

4.4.1.The ready-to-use Kitchen

The Casing (PC) and Flavor (AC) are received ready-to-use in drums. The AC drums must be stored
in an ex-proof storage area while the PC drums can be stored in a regular warehouse. This type
of kitchen requires 4 main areas for : AC kitchen (ex-proof), PC kitchen, PC storage and AC storage
(ex-proof).

Figure 130: Layout of St-Petersburg factory

4.5. FULL CASING KITCHEN

The AC/PC is produced on site. This type of kitchen requires 5 main areas for : AC preparation, PC
preparation, Ingredient storage, PC storage and AC storage (ex-proof). As the AC is an alcohol
composite the area where the AC is treated must be ex-proof.
Ingredients are received in carton bags or in boxes on pallets, in drums or in bulk (tanker).
The main ingredients may be received as follows:

Ingredient Packaging type Capacity per unit

Licorice Bags / on pallet see Chapter G.4.
Cocoa Powder Bags / on pallet see Chapter G.4.
Sorbitol Bags / on pallet see Chapter G.4.
MF(S) Powder Base Fibre Drums / on pallet see Chapter G.4.
Chocolate liquor Boxes / on pallet see Chapter G.4.
Invert Sugar Bulk 20’000 kg / delivery
Ethanol Bulk 20’000 kg / delivery
Glycerine Bulk 20’000 kg / delivery
Propylen Glycol Bulk 20’000 kg / delivery
Sugar Bulk 30’000 kg / delivery
Base Flavor Drums / on pallet see Chapter G.4.

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Figure 131: Full kitchen layout at PMPSA

Figure 132: PMP SA kitchen bulk delivery

4.5.1.Storage Type
Standard Racking is usually used in storage areas which have a minimum free height of 6.5m. In
case of a lower height then bulk storage is performed.

4.5.2.Handling
Ex-proof handling equipment must be used in an AC Storage and in the AC area of a casing kitchen.
Material receiving and storage are usually performed by a 1.5-t forklift while handling in the AC
Kitchen Area is performed by a man standing pallet stacker.

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4.6. SECONDARY LOGISTICS

4.6.1.Handling concept in Secondary
It is especially recommended to use the THT (Tow Hand Trolley) concept for the NTM supply and
the FG & Waste Retrieval when:
S The distance between the warehouse/buffer/waste room and the Secondary is long;
S The warehouse/buffer/waste room and the Secondary are on the same level;
S FG palletization is performed manually in the Secondary.
The concept is described in the Figure 133.

Figure 133: NTM supply with THT concept

Ideally the concept should work the following way:

NTMs - 5 pallets constitute a complete train. The train is built at the NTM Buffer and the pallets
are delivered to the Secondary.
FGs - 5 pallets constitute a complete train. In case there is no palletizing through shipping case
overhead conveyors, the train is built in the Secondary. Otherwise, it is built right after the
wrapper and the pallets are delivered in the buffer/warehouse.
Waste – 5 waste bins constitute a complete train. The train is built in the Secondary and the bins
are delivered in the waste room.
In case the facility does not permit or require a THT concept then small handling equipment such
as pallet stackers and electrical hand pallet should be used.
The THT concept is considered as a low cost approach when no other automatic FG handling is
foreseen.

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4.6.2.NTMS Supply Concept in Secondary :

This concept is independent of the choice of whether to use the THT concept or not. The decision
is mainly based on the Secondary layout and the frequency of brand changes. Adhesive supply is
not part of this concept. There are two types of supply:

Supply in Full pallets

All NTMs are supplied on full pallets.
This concept should be used when:
S The space around the link-up allows to have all required NTMs on full pallets;
S Brand changes do not occur frequently (<1 every 3 shifts) and there is a specific brand pro-
duction on a high scale.

Supply in Kit pallets and Full pallets

This type of supply concerns mainly the Make/Packs and is not applicable for Filter Making. Bobbin
NTMs are supplied on kit pallets and non-bobbin NTMs are supplied on full pallets (DC, Hingelids...).
This concept should be used when:
S There is a lack of space around the link-up thus not allowing all NTMs to be supplied on full
pallets and there is sufficient space in the NTMs buffer;
S Brand changes occur frequently (>1 every 3 shifts) and there is not a specific brand produc-
tion on a high scale.
Note: The kit pallet gives a cleaner and safer environment compared to pallets.
The design of the kit pallet depends on the Make/Pack layout.
The following NTMs can be placed on the kit pallet:
S Bobbins (Pack OW, DC OW, bundle paper, cigarette paper, tipping paper, etc.);
S NTMs for long usage (tear tape, sealing tape, etc.) or special NTMs (tax sticker box, etc.).
Ideally the concept should work the following way:
Each make/pack group has four kit pallets (two for maker and two for packer). There are two kit pal-
lets on the make/pack group being used while two others are being filled at the NTMs buffer. Each
kit pallet has the capacity of a single shift. When the majority of the bobbins on the kit pallet has been
used, a full kit pallet is taken from the NTMs Buffer and exchanged with the one on the group. The
empty kit pallet is brought to the NTMs Buffer where it is filled and stored ready-to-use.
Examples of PMI Factories supplying the Secondary with kit pallets:

a. The kit pallet concept has been applied in PMP SA in the following way:

Figure 134: Kitting pallet in PMPSA

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There is a single kit pallet per group with all NTMs supply for the maker and also pack and display
carton polypropylene bobbins for the packer/wrapper (see Figure 134).
b. The kit pallet concept has been applied in Izhora in the following way:

Figure 135: Kitting trolley in PM Izhora

There is a single kit trolley (and not pallet) per group with all NTMs related to the packer only (see
Figure 135).

4.6.3.NTM Buffer
NTM’s require a certain period of conditioning before being used in production. This conditioning
period decreases the waste quantity generated at the Secondary. The conditioning period is 24h
or 48h according to the NTM type. NTM pallets should be unpacked before being stored in the buffer
in order to allow the optimal conditioning. Almost all NTM’s require to be conditioned in order to mini-
mize waste due to frost / humidity damages. PMI quality document, reference [15], recommends
a minimum of 24h conditioning time for all NTMs.
You can find below the conditioning time used by PMG Berlin.

Filter/Cigarette Making Packing

NTM type Conditioning time NTM type Conditioning time

Acetate Tow 24 h Inner frame 24 h

Triacetine PM 24 h Packing adhesive 24 h

Plug Wrap 24 h Hinge Lid 48 h

Filter seam adhesive 24 h Aluminium foil 48 h

Filter inner adhesive 24 h Sticker 48 h

Filter rods 24 h Pack overwrap 48 h

Cigarette paper 24 h Pack tear tape 24 h

Cigarette seam adhesive 24 h Carton adhesive 24 h

Tipping paper 48 h Display carton 24 h

Tipping adhesive 24 h Carton overwrap 48 h

Carton tear tape 24 h

Shipping cases * 24 h

Sealing tape 48 h

* depends on country weather conditions

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An NTM buffer area is not only required for conditioning reasons but also for the preparation & stor-
age of the kitting pallets and the preparation of the THT. Half-pallets may also be stored in the buffer
but for short periods only.
It is usual to have 6.5m free height in an NTM Buffer in order to store pallets on 3 levels in standard
racks. Single access is preferable for almost all types of NTMs. Shipping cases may be stored in
bulk on 3 levels (the weight of every pallet of the upper level has to be evenly distributed between
2 columns of the lower levels).
Sticker buffer and AC/PC buffers are usually completely separate due to their tax related and safety
related specificities.
Recommended ambient conditions in the make/pack area:
Temperature: 22 +/- 3 °C
Relative humidity: 58 +/-5 %

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CHAPTER 5.
SYSTEMS IN LOGISTICS
Contents of this chapter
5.1. PRODUCT, PACKAGING 5.1. WMS WAREHOUSE MANAGEMENT SYSTEM
AND PALLETIZING p.5-1
5.2. RADIO FREQUENCY p.5-4
5.1.1.Introduction
Competitive pressures for improved customer service levels, in
terms of both order fulfillment time and the need for added ser-
vices, are causing increased focus on the warehousing activities.
In order to improve customer service levels and provide customer-
mandated value added services, today’s modern distribution facil-
ities require advanced, versatile, and powerful Warehouse Man-
agement System (WMS) software.

5.1.2.PMI requirements for a WMS

The Warehouse Management System runs on its own as well as
interfaced with the Host System. It is located on level 2 of the IS
pyramid in a standard factory management system under Expand-
able or SAP level. The PMI requirements for a WMS are summa-
rized in the following points, which are applicable in Tobacco, NTM
and Finished Goods operations.

Traceability
A full traceability implies that the materials are visible at any point
of the supply chain. A complete integration and/or interfaces of all
systems of the supply chain would guarantee that.
WMS implementation in factory warehouse covers the traceability
from the entrance into the factory to the delivery to the distribution
centres. The essential prerequisite remains the interfaces to the
Host system and other existing factory systems.
In case where no interfaces are established, the traceability will
benefit from WMS by reducing the grey zones of good visibility.

Warehousing
A WMS is required to optimize surfaces and volumes by managing
the storage locations. That includes the management of medium
and high bay storage, having full automatic racking, narrow aisle,
drive in, radio-shuttle, normal racking and bulk storage. In
addition, PMI needs WMS to manage efficiently multi sites
warehousing and, on the physical side, to manage custom cleared
and non-custom cleared stock and multi-ownership.

Material Flow
A WMS is required to optimize means and flows by using new
technologies (radio frequency and barcode) and by managing the
moving of handling equipment. This includes all types of equip-
ment, different kinds of layout inside the factory and the distance
between the storage areas. Another requirement is the possibility
of cross docking, when material is delivered directly from receiving
to the production floor and/or from the production to the shipment
areas.

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Transaction Flows
Real time inventory is mandatory to identify eventual material shortages and/or when a change oc-
curs from non-custom cleared stock to custom cleared.

QC Management
The quality status allows Quality department to release or block material for quality reasons. The
quality status must be an attribute of the product visible at any point of the processes.

Best use of Human Resources

The system should increase the reliability of the administrative operations by reducing the paper-
work. That implies the qualification of users and an increased quality of their job. WMS should in-
crease the reliability of the stock and reduce the cost of yearly counting by implementing a cycle
counting procedure.
Refer to:
S Appendix 6.8. “WMS TECHNICAL INFORMATION”;
S PMI Method, reference [13].

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PALLETIZING

Figure 136 : WMS

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5.2. RADIO FREQUENCY

5.2.1.Definition of radio frequency technology

A Radio Frequency (RDF) and data communication system consists of hand-held or vehicle-mount
mobile data terminals, which communicate in real time to a host computer system. This real time
communication link is established using radio base stations strategically placed throughout the fa-
cility to establish a customized, wireless local area network.

5.2.2.Application of the radio frequency in the industry

The radio frequency finds its best application at any transportation facility, trucking, rail, port or dis-
tribution centre, warehouses and production centre. The utilization of radio frequency can simply
be extended to all processes once managed by paper or voice radio transactions. This automation
replaces inaccurate, decentralized information with accurate, real time status of all equipment, yard
spaces, dock doors and work in progress. This, in turn, allows for increased planning, so facilities
can manage their areas proactively, rather than trying to keep up with chaotic activities.
In the manufacturing sector, for example, the radio frequency wireless system provides highly accu-
rate real-time control over the movement of components from the time they arrive at receiving of
the factory to the point at which they are delivered to the assembly lines. The RDF system guaran-
tees sub-second response times, covers all production floors and is extremely versatile with the dif-
ferent kind of terminals.
In the warehouse environment, the radio frequency system reduces inventory control costs, de-
creases delivery time, and, most importantly, increases productivity. This is obtained by shortening
the communication queue. The operators no longer have to wait their turn to receive work assign-
ments from or give completion data to dispatcher or co-ordinator on voice radio system. There is
always work available on the data screen and always the ability to status complete work, so time
is never wasted waiting. Information about assignment and their completion status can be used to
optimize tasks in real time due to its immediate availability on the host computer system.
In the distribution process, by adding real-time data collection and co-ordinating activities through
the central mainframe, it is possible to streamline the order handling and increase the service levels.
Barcodes and RDF systems can fill in the eventual missing links in the distribution databases.
The use of the RDF system together with Warehouse Management System (WMS) ensures that
everything is logged on and tracked in the Host and local computer systems.
Refer to:
S Appendix 6.9. “RADIO FREQUENCY TECHNICAL DESCRIPTION”.

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CHAPTER 6.
APPENDIX
Contents of this chapter
6.1. LOGISTICS CHECKLIST
p.6-2
6.2. C90 TECHNICAL
SPECIFICATIONS 6-13
6.3. LOSS PREVENTION
TASK FORCE p.6-15
6.4. PALLETIZATION OF
NTM p.6-27
6.5. FINISHED GOODS
PALLETIZATION
COMPARISON p.6-41
6.6. BATTERY
SPECIFICATIONS p.6-44
6.7. WAREHOUSE STORAGE
LOADS AND FLOOR
QUALITY p.6-47
6.8. WMS TECHNICAL
INFORMATION p.6-49
6.9. RADIO FREQUENCY
TECHNICAL DESCRIPTION
p.6-55
6.10.GLOSSARY p.6-61

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6.1. LOGISTICS CHECKLIST

When reviewing a factory layout or when initiating a logistic pre-study, the checklist hereafter
provides some of the key points to avoid forgetting potential sources of issues.

I. TOBACCO WAREHOUSE
A. General
1. Is the warehousing space and capacity in line with specific storage duration?
2. Is the warehousing requirement in line with factory location and supply chain requirements?
3. Does the factory layout and logistics/warehouse area permit an easy capacity extension of the factory?
4. Are building shapes symmetrical?
5. Are the exact capacities of the warehouses known?
B. Building
1. Has the building roof and façade been constructed to avoid dirt due to birds?
2. Are offices well located to have a global view of the material?
3. Are the dust collection, battery charging room, casing kitchen & buffer, offices and workshops designed
according to EHS requirement?
4. Does the construction allow enough flexibility of people or material movement?
5. Have the access and exit roads been drawn in a way so to avoid useless traffic complication (truck,
car,…)?
6. Is the location of the different kind of materials adapted to the frequency of deliveries flows?
7. Is the storage divided in areas and subdivided in sectors with addresses to allow a quick access and to
implement WMS system?
8. Is the doors system adapted to the weather conditions or to the frequency of opening?
9. Is the dock area adapted to the door system to the weather conditions, to minimize energy losses and
to allow watertightness?
10. Is there a dedicated and reserved place for returnable packaging items (treatment, sorting)?
11. Is the racking system adapted to Oriental/ Semioriental bales, Raw Tobacco cartons and hogshead?
B.1. Floor
1. Has the area where the traffic of forklifts is dense been identified?
2. Is the floor maximum load adapted to logistics needs?
3. Is the floor adapted for forklift traffic?
C. External
1. Has an access for future train deliveries been considered?
2. Has an access for container handling been considered (crane, …)?
D. Storage
1. Is there a dedicated and reserved place for the storage of empty pallets close to the material used?
D.1. Racking equipment
D.1.1 Type of racking system
1. Is the racking system adapted to the warehouse?
2. Is there a possibility of extension?
3. Is the warehouse storage area convertible into another type of storage?
D.2. Security
1. Has the equipment fixation to the ground and protection been checked?
2. Is the width driveway adapted for the appropriate movement of the forklift?
3. Is the racking equipment compatible with the protection system like fire sprinklers and water pipe?
4. Are the racks at a safety distance from the fire sprinklers?
5. Does the rack interfere with access to exit doors?

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D.3. Pallets
1. Is the type of pallets adapted to the utilization in the factory?
2. Is the racking system adapted to Euro pallet, Industrial pallet and one way pallet?
E. Handling
1. Is the manual manutention minimized?
2. Is the material handling ergonomics In the warehouse and near from production equipment?
E.1. Battery equipment
1. Is the operational time and recharging time adapted to the working shift hours?
2. Is the life time of the battery known?
3. Is the number of batteries adapted for the utilization?
4. Is the access to the charging room optimized?
5. Are there enough batteries for the replacement of the counterbalanced forklift battery when it is empty
or breaks for the operators?
6. Are the walls isolated?
7. Are the floors protected from acid attack?
8. Is an extension possible?
E.2. Forklift equipment
1. Is the number of forklifts working with gas or diesel known?
2. Is the number of ex-proof forklifts for AC/PC adapted?
3. Is the lifting height adapted?
4. Is it ergonomics for driver?
5. Is the capacity adapted for the production?
6. Is the choice of equipment in line with PMI recommendation like standard defined suppliers?
E.2. Other equipment
1. Has forklift with electronic balanced been considered?
2. Does the equipment for cleaning allow an easy access to the roof?
F. Flow
1. Has the minimization of pallet flow thanks to THT or trolleys been considered?
2. Are different materials mixed in a single storage area? (cf. PMI method)
3. Have receiving and shipping of NTM & FG & Tobacco semi-products not been mixed? (cf. PMI
method)
4. Has receiving of raw tobacco not been mixed with other material receiving & shipping? (cf. PMI
method)
5. Have receiving & shipping been centralized in an adjacent warehouse?
6. Is there a security distance between AC storage and DIET building from the main factory?
7. Is there an ex-proof building for AC and BC storage?
8. Has space for a conveyor link from the warehousing to the factory been foreseen?
9. Has the organization for the transportation between the external warehouses and the factory been
adapted? Eg foreseen closed corridor, lorry…
10. Are loading and unloading locations not separated to have the possibility to share equipment?
G. Tobacco
1. Is there a tobacco packaging description for local and imported tobacco (dimensions, weight)? In a
way to update tobacco warehousing capacities according to packaging types?
2. Are shape, content and palletization of NTMs pallets according to standards or specification to the
location?
3. Is the racking system adapted to the different kind of pallets (Euro, non standard, Industrial)?
H. Warehouse waste
1. Is there a delimited area for waste: place reserved for the storage of waste?
2. Have the local waste treatment and separation been considered?
3. Has requirement & application of local legislation on site been assessed?

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4. Has the potential of local waste retrieval contractors been assessed?

5. Is the waste retrieval area centralized (spare access road, equipment)?

II. TOBACCO BUFFER (PREBLEND AREA)

A. Building
1. Is the doors system adapted to the weather or to the frequency of opening?
2. Is bug wall useful to separate infeed area and Primary processing areas?
B. Receiving area
1. Is the dock area adapted to the door system to the weather conditions, to minimize energy losses and
to allow watertightness?
C. Batch
1. Is the batches’ capacity flexible?
2. Is the preblending area well dimensioned according to the blend received and batch size?
3. Are batches adapted to the supply capacity and location of the main warehouse?
D. Storage
1. Is the type of storage adapted to the material flows?
2. Does the storage area permit an easy extension?

III. INFEED LOGISTICS

A. Building
1. What is the maximum batches storage capacity?
2. Is the access to the waste room close?
B. Splitting
1. Is there enough place for the storage of empty pallets?
2. Is there enough place for tobacco bales and carton opening?
3. Is there enough place for the splitting operation?
4. Is the type of storage adapted?
C. Primary process line
1. Is the number of persons working at each line adapted to the production?
2. Is the degree of automation adapted to the cadence of production?
3. Is holding conveyor used?
4. In case of breaking down is the access to lines easy?
D. Handling
1. Has the THT concept been considered?
2. Does the type of truck allow flexibility?
3. Is the crossing forklifts flows minimized?
4. Do counterbalanced forklifts with turnable forks or forklifts with carton clamps or pallet stacker have to
be used?
5. Is the number of forklifts for batches feeding adapted?
6. Is the number of forklift drivers adapted to the production?
E. Infeed waste
1. Is the location of wastes storage and collection well defined?
2. Is there a place reserved for the storage of empty pallets close to the material used?
3. How are wastes brought to the waste room?
4. Are waste separated in containers?
5. Can the casing kitchen waste room be used as a centralized collection? Or is it too far?
6. What is the system to avoid contamination by the transfer through any area related to the Secondary?
7. Is the outside waste area close to the Primary?
8. Is it possible to use a receiving gate as a waste area?

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IV. ADDBACK FEEDING LOGISTICS

A. Feeding system
1. In case of breaking down is the access to CF feeding lines easy?
2. Is the degree of automation adapted to the cadence of production?
3. Is the ripping room close to the add back?
B. Handling
1. How and where are wastes stored and collected?
2. Is there a place reserved for waste treatment?
3. Is the number of forklifts for bin transport and tipping adapted?
4. Do counterbalanced forklifts with rotative forks and clamps or counterbalanced forklifts with turnable
forks and rotative forks have to be used?
C. Storage
1. Does the type of storage allow the most flexibility?
2. Are the block lanes on ground for full and empty bins storage adapted (bin deep, level high)?
D. Flow
1. Is the crossing of forklifts flows minimized?
E. Access
1. Is the distance minimized from the receiving area?

V. CUT FILLER AREA LOGISTICS

A. CF storage
1. Is the type of CF storage well chosen (cf bins vs silos)?
2. Who is in charge to store pallets and to bring the empty pallets?
3. Is there a special place to store empty boxes?
4. Is there a special place to store empty pallets?
5. Are the block lanes on ground for full and empty bins storage adapted (bin deep, level high)?
6. Is the level of stacked bins stable?
7. Is there enough place to move between rows?
8. Is there enough place to move between lines?
B. Feeders
1. Are the feeders adjacent to Secondary?
2. Has one to one feeder been considered?
3. Are there indicators showing the condition of the feeder and the bin to allow the operator to manage
more efficiently his work and time?
4. Is there a subdivided area to reduce the risk of contacts between the counterbalanced forklifts between
the feeders’ zone and the full cut filler bins batch area?
C. Flow
1. Are bins coming and going well defined?
D. Handling
1. Is the number of forklifts for bin transport and tipping adapted?
2. Do counterbalanced forklifts with turnable forks have to be used?
3. Is the lifting height adapted?
4. Is it ergonomic for the driver?
5. Is the capacity adapted for the production?

VI. CASING KITCHEN LOGISTICS

A. Storage
1. Does the storage area permit an easy extension?
2. Is there a place reserved to store empty pallets?
3. Is the width between lines wide enough to allow an easy handling?

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4. Are they convertible into another type of storage?

5. Is the size of the display adapted to the warehouse?
6. Has the equipment fixation to the ground and protection been checked?
7. Is the driveway width adapted for the appropriate movement of the forklift?
8. Is the racking equipment compatible with the fire sprinklers?
9. Are the racks at a safe distance from the fire sprinklers?
10. Are materials susceptible to deterioration by direct sunlight been stored under cover?
B. Handling
1. Is the number of forklifts for transport adapted?
2. Has ex-proof electrical forklift for truck unloading been used?
3. Has ex-proof pallet stacker for AC ingredients handling been used?
4. Has ex-proof reach truck for AC and PC export and ingredient storage been used?
5. Has pallet stacker for PC ingredient handling been used?
C. Waste
1. Who is in charge to evacuate waste?
2. Is there a zone where wastes are collected to be removed?
3. Where is the most appropriate area for waste treatment?
4. Have drum press and waste containers been used?

VII. NTM WAREHOUSE

A. General
1. Is the warehousing space and capacity in line with storage duration?
2. Is the warehousing requirement in line with factory location and supply chain requirement?
3. Does the factory layout and logistics/warehouse area permit an easy extension?
4. Are building shapes symmetrical?
5. Are the exact capacities of the warehouses known?
6. Is there NTM description for corporate and local brands (dimensions, capacity per pallet, weight, pallet
size)? In a way to update NTM warehousing capacities according to storage levels vs. floor load.
B. Building
1. Have the building roof and façade been constructed to avoid dirt due to birds?
2. Does the construction allow enough flexibility of people / material movement?
3. Have the access and exit roads been drawn in a way to avoid useless traffic complication?
4. Is the location of the different kinds of materials adapted to the frequency of deliveries flows?
5. Is the storage divided in areas and subdivided in sectors with addresses to allow a quick access and to
implement WMS system?
6. Is the warehouse adapted to change the racking system?
7. Is the doors system adapted to the weather conditions or to the frequency of opening?
8. Is the dock area adapted to the door system to the weather conditions, to minimize energy losses and
to allow watertightness?
9. Is there a dedicated and reserved place for returnable packaging items?
B.1. Floor
1. Has the area where the traffic of forklifts is dense been identified?
2. Is the floor maximum load adapted to logistics needs?
3. Is the floor adapted for forklift traffic?
C. External
1. Has an access for future train delivery been considered?
D. Storage
1. Is there a dedicated and reserved place for the storage of empty pallets close to the material used?

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D.1 Racking equipment

D.1.1 Type of racking system
1. Is the racking system adapted to warehouse?
2. Is there a possibility of extension?
3. Is the warehouse storage area convertible into other type of storage?
4. Has the rack system been improved to have an easier and more efficient access to the buffer?
5. Is there a possibility to use racking system named “Radio Shuttle Racking System” (RSRS) for euro-
pallets storing to increase warehouse capacity?
D.2. Security
1. Has the equipment fixation to the ground and protection been checked?
2. Is the driveway width adapted for the appropriate movement of the forklift?
3. Is the racking equipment compatible with the protection system like fire sprinklers and water pipes?
4. Are the racks at a safety distance from the fire sprinklers?
5. Does rack interfere with access to exit doors?
D.3. Pallets
1. Is the type of pallets adapted to the utilization in the factory?
2. Is the rack system adapted to euro/ industrial/ non standard pallets?
E. Handling
1. Is the manual manutention minimized?
2. Is the material handling ergonomic in the warehouse and close to the production equipment?
E.1. Battery equipment
1. Is the operational time and recharging time adapted to the working shift hours?
2. Is the life time of the battery known?
3. Is the number of batteries adapted for the utilization?
4. Is the access to the charging room optimized?
5. How many charging rooms are necessary?
6. Are there enough batteries for the replacement of the counterbalanced forklift battery when it is empty
or breaks for the operators?
7. Are the walls isolated?
8. Are the floors protected from acid…?
9. Is an extension possible?
E.2. Forklift equipment
1. Is the number of forklifts working with gas or diesel known?
2. Is the number of ex-proof forklifts for AC/PC adapted?
3. Is the lifting height adapted?
4. Is it ergonomic for the driver?
5. Is the capacity adapted for the production?
6. Is the choice of equipment in line with PMI recommendation like standard defined suppliers?
E.3. Other equipment
1. Has forklift with electronic balanced been used?
2. Does the equipment for cleaning allow an easy access to the roof?
F. Warehouse waste
1. Is there a delimited area for waste: place reserved for the storage of waste?
2. What are the local waste treatment and separation?
3. Have requirement & application of local legislation on site been assessed?
4. Has the potential of local waste retrieval contractors been assessed?
5. Is the waste retrieval area centralized (spare access road, equipment)?

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VIII. NTM BUFFER

A. Storage
1. Is there a place reserved to store empty pallets?
2. Are materials required for cigarette making and filter making separated?
3. Are all materials related to kitting grouped in the same area close to kitting trolleys?
4. Are heavy materials on the floor level?
5. Are pallets with bobbins stored on the floor level in order to permit easy access during kitting process?
6. Are half-used pallets stored on top of the racking in case it is not foreseen to re-use very soon?
7. Are low pallets or half-used pallets on top of the racking in order to avoid any interference with the
sprinklers and other fire protection equipment?
B. Handling
1. Are full pallets or kit pallets used?
2. Has counterbalanced forklift with normal forks been used?
C. Warehouse waste
1. Are waste bins been used for the soft packaging waste?
2. Is wooden packaging being piled on pallets?

IX. SECONDARY SUPPLY

A. Handling
1. What kinds of trolleys have been used?
2. Does the space around the link-up allow to have all required NTMs on full pallets?
3. Do brand changes occur frequently?
4. Are full pallets or kit pallets more adapted and why?
5. Are trolleys been used for the full pallet supply of make-packs? If yes, has the same concept been
used for the filter making supply?
6. Has the THT concept for the FG pallet handling been considered?
7. Are the heaviest bobbins on the lower level?
8. Is there a dedicated location for each NTM?
9. Does the quantity on the kit trolley allow a single shift?

X. FILTER MAKING LOGISTICS

A. Filter maker
1. Is the filter maker close to the NTM buffer?
B. Filter shooting
1. Is the transport from buffer to the make/pack automatic (filter shooter)?
2. Is the filter shooting close to the filter maker?
C. Filter buffer
1. What type of storage is used?
D. Filter waste
1. Is a tow tractor used to bring waste bins?
2. According to local regulation, can waste filter be landfilled?

XI. DUST LOGISTICS

A. Storage
1. Is the storage area close to the dust collection?
B. After removal
1. According to local regulation, can dust be landfilled?
2. Has dust compaction been considered?

XII. RIPPING LOGISTICS

A. Shorts
1. What is the standard storage system?

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B. Cigarette & Ripper waste

1. According to local regulation, can dust be landfilled?

XIII. PRIMARY & SECONDARY WASTE LOGISTICS

A. Collecting
1. Have containers for different waste and separation been used?
B. Removal
1. Is the Waste Management department directly at the Secondary department?
2. Who is in charge to evacuate wastes?
3. Is there a zone where wastes are collected to be evacuated?
4. Where is the most appropriate area for waste treatment?
5. Is there a delimited area for waste: place reserved for the storage of waste?
6. Have requirement & application of local legislation on site been assessed?
7. What are the local waste treatment and separation?
8. Has the potential of local waste retrieval contractors been assessed?
9. Is the waste retrieval area centralized (spare access road, equipment)?
C. Handling
1. Have semitrailers been used to receive waste products that are generated fast and in large quantities?
D. Equipment
1. Has a pneumatically filled container for tobacco dust been used?
2. Do containers shorten the dust handling route within the factory perimeter from Secondary to storage
place?
3. Is there potential for re-using the dust compactor?
4. Is there on site solid-fuel (waste) burner with energy production?
5. Has a compact wastewater treatment system been installed?
6. Is the capacity of the landfill known and limited?
7. Have drum press and waste containers been used?

XIV. SHIPPING AREA

A. Storage
1. Is there a manual operator rack or a floor guidance?
2. Is there a dedicated place for a floor cleaner?
B. Handling
1. Have counterbalanced forklifts with normal forks or pallet stackers been used for handling?
2. Has tow truck been used for retrieval?
3. Has THT concept been used?
C. Pallet handling
1. Is wrapping used to bring the pallets from the shipping area to the FG buffer?

XV. FG WAREHOUSE
A. General
1. Is the warehousing space and capacity in line with storage duration?
2. Does the factory layout and logistics/warehouse area permit an easy extension?
3. Are building shapes symmetrical?
4. Are the exact capacities of the warehouses known?
B. Building
1. Have the building roof and façade been constructed to avoid dirt due to birds?
2. Are battery charging rooms, offices and workshops designed according to EHS requirement?
3. Does the construction allow enough flexibility of movement?
4. Have the access and exit roads been drawn in a way to avoid useless traffic complication?
5. Is the location of the different kind of materials adapted to the frequency of deliveries flows?

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Guidelines for Material Storage & Handling in the Cigarette Industry

6. Is the storage divided in areas and subdivided in sectors with addresses to allow a quick access and to
implement WMS?
7. Is the doors system adapted to the weather conditions or to the frequency of opening?
8. Is the dock area adapted to the door system to the weather conditions, to minimize energy losses and
to allow watertightness?
9. Is there a dedicated and reserved place for returnable packaging items?
10. Is the racking system adapted to Oriental/ Semioriental bales, RT cartons and hogshead?
B.1. Floor
1. Has the area where the traffic of forklifts is dense been identified?
2. Is the floor maximum load adapted to logistics needs?
3. Is the floor adapted for forklift traffic?
C. External
1. Has an access for future train deliveries and access been considered?
D. Storage
1. Is there a dedicated and reserved place for the storage of empty pallets close to the material used?
2. Have bulk or rack storage been used?
D.1. Racking equipment
D.1.1 Type of racking system
1. Is the racking system adapted to warehouse?
2. Is there a possibility of extension?
3. Is the warehouse storage area convertible into other type of storage?
D.2. Security
1. Has the equipment fixation to the ground and protection been checked?
2. Is the driveway width adapted for the appropriate movement of the forklift?
3. Is the racking equipment compatible with the protection system like fire sprinklers and water pipe?
4. Are the racks at a safety distance from the fire sprinklers?
5. Does rack interfere with access to exit doors?
D.3. Pallets
1. Is the type of pallets adapted to the utilization in the factory?
2. Is the racking system adapted to Euro pallet, Industrial pallet and one way pallet?
E. Handling
1. Is the manual manutention minimized?
2. Is the material handling ergonomic in the warehouse and close to the production equipment?
E.1. Battery equipment
1. Are the operational and recharging times adapted to the working shift hours?
2. Is the life time of the battery known?
3. Is the number of batteries adapted for the utilization?
4. Is the access to the charging room optimized?
5. How many charging rooms are necessary?
6. Are there enough batteries for the replacement of the counterbalanced forklift battery when it is empty
or breaks for the operators?
7. Are the walls isolated?
8. Are the floors protected from acid…?
9. Is an extension possible?
E.2. Forklift equipment
1. Is the number of forklifts working with gas or diesel known?
2. Is the lifting height adapted?
3. Is it ergonomic for the driver?
4. Is the capacity adapted for the production?

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5. Is the choice of equipment in line with PMI recommendation like standard defined suppliers?
E.3. Othert equipment
1. Has forklift with electronic balance been used?
2. Does the equipment for cleaning allow an easy access to the roof?
F. Flow
1. Has the minimization of pallet flow thanks to THT and trolleys been considered?
2. Has space for a conveyor link from the warehousing to the factory been foreseen?
3. Has the organization for the transportation between the external warehouses and the factory been
adapted? Like foreseen closed corridor, lorry…
4. Are loading and unloading locations not separated to have the possibility to share equipment?
G. Warehouse wastes
1. Is there a delimited area for waste: place reserved for the storage of waste
2. What are the local waste treatment and separation?
3. Have requirement & application of local legislation on site been assessed?
4. Has the potential of local waste retrieval contractors been assessed?
5. Is the waste retrieval area centralized (spare access road, equipment)?

XVI. PEOPLE
A. Movement
1. Is the distance from parking to workplace minimized?
2. Is the walk road covered?
3. Do doors allow an easy access?
4. Are the employees not disturbed with material flows?
5. Doesn’t the frequency of movement and access disturb working people?
6. Is there a separation between pedestrian and fork truck routes?
7. Is there a single main corridor for general access?
B. Locker room
1. Is the system of ventilation established?
2. Are the ladies/men accommodations adapted for a possible extension?
3. Are the social or cultural aspects considered?
4. Is the lockers room close to the building entry?
5. Is the locker room close to Secondary? (most people work there)
6. Is there a separate locker room for the external cleaning company’s employers?
C. Relax room
1. Does the relax room allow separation for smokers and no smokers?
2. Has the system of ventilation been established in the smoking room?
1. Is there enough place for employees to move?
2. Has a standard training been set?
3. Are emergency exit routes easily accessible and clearly shown?
E. Working place
1. Is there a suitable environment with HVAC and enough light in line with PMI and local regulation?

XVII. OFFICE
1. Are offices close to windows for sunlight?
2. Are offices designed to respect PMI standard and local regulation?
3. Are offices, QA labs, workshops, relaxes close to each other?
4. Is the walking distance from furthest point of factory to the administration building reasonable?
5. Is HVAC for Secondary & offices installed?
6. Is offices location compatible with a future extension?

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XVIII SPARE STOCK

A. Administrative
1. Is there an archive storage room?
2. Is there a place for document scanning?
B. Production
1. Is the spare stock centralized?
2. Is there a report that shows materials without stock to identify materials which can be deleted?
3. Is there FIFO storage? (for example: lighters, because they loose gas)

XIX. OTHER WASTES

A. Canteen & office waste
1. Who is in charge to evacuate wastes?
2. Is there a zone where wastes are collected to be evacuated?
3. Where is the most appropriate area for wastes treatment?
4. Have drum press and waste containers been used?

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6.2. C90 TECHNICAL DESCRIPTION

This carton is intended to replace most single liner semi-finished goods cases and in particularly
for ET production lines but is NOT intended to substitute the so-called Leaf - C48 for raw strips/
factory by-products which is undergoing a design change itself (co-ordinated by PMI Leaf, Brian
Salmon).
The C90 carton specifications were established by R&D/PMI Packaging/Procurement who can
inform you of the procurement procedures. Currently this carton is not yet part of the centralised
purchasing, therefore, you can approach your local suppliers to work with them to replace your
”old” ET cartons.
This carton is substantially stronger than the former ET case to deal with the compressive forces
of pressing ET, IS or CF. Indeed, the former ”ET case” cannot resist the bulging efforts during
pressing and, even more important, the risk of collapse in the warehouses due to the increased
loads (this does not apply to the C48 which has slightly stronger walls than the C90). This C90
was designed with Warehouse Safety as a guiding factor.

BRILLANTCOURT 4-CASE POSTALE 1158-1001 LAUSANNE-SWITZERLAND-TELEPHONE (41-21)618 6111-TELEFAX (41-21) 617 69 10-

GENERAL PRODUCT DESCRIPTION FOR ETNA CASES C 90

1. PRODUCT
ETNA, 80 Kg per case, stacked 9 high
140 Kg per case, stacked 6 high
2. GENERAL DESCRIPTION
- Slotted-type box with top and bottom flaps according
FEFCO CODE 201
- Butted Inner Flaps
- Doublewall
- Manufacturing joint: glued ans stitched
3. QUALITY DESCRIPTION
- Double wall CA Flute
- Wet resistant
- Outer Liner: Kraft 400 g/m2
- C-Flute: semi-chemical 190 g/m2
- Center Liner: Kraft 400 g/m2
- A-Flute: semi-chemical 190 g/m2
- Inner Liner: Kraft 400 g/m2
4. DIMENSIONS
Length Width Height
- External dimensions: 1135 x 765 x 740
- Internal dimensions: 1117 x 747 x 704
(Outside dimensions are to be kept, see Appendix
5. OTHER PARAMETERS
Thickness : ~ 10.0 mm
ECT : >22Kn/M
Mullen Bursting Strength : >3500 kPa

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Please consult the carton design :

This carton dimensions are 1135 x 765 x 740 (LWH external) and can be loaded as follows :

Press Load Packing density

kg/carton kg/m3
C90 - DIET I YES 70 120
C 90 - DIET II YES 65 110
C90 - NET YES 50 85
C90 - ES YES 80 135
C90 -CF YES 140 240

These loads/densities were determined during numerous tests at different facilities. They are
not strict and could be potentially increased but only after following a rigorous qualification proce-
dure by R&D. This C90 carton has been used for all packing & shipping at PMP Neuchatel/On-
nens and was part of a complete redesign of their export logistics including a new pressing sta-
tion in both CF and ET production lines. They can be contacted for technical details.
Last but not least, do not to confuse the C90 with other cases like C48, CP99, C99 or other C96.
This has created some confusion in the past.

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6.3. LOSS PREVENTION TASK FORCE

Philip Morris Loss Control Task Force has established a guideline concerning loss prevention.
This guideline contains criteria for the selection of the modes of transportation used in the move-
ment of Philip Morris products and provides recommendations for the selection and evaluation
of transport vendors. All Philip Morris entities should seek to maximize the application of these
guidelines.

6.3.1.Loss prevention formal guidelines for forwarder and transportation vendor

selection and evaluation

FORWARDERS
A. Selection Criteria/Reliability
1. Historical performance
2. References checked (experience of other customers, relationships, and with local law en-
forcement, if possible)
3. High security standards (both transportation and warehousing)
4. Financially sound (balance sheet, P/L-statement, credit agency)
5. Equipment readily available

B. Operations (Transportation)
1. Utilize trucking companies which meet criteria outlined in this document (see II. Truckers)
2. Follow guidelines outlined if the forwarder is also a trucking company utilizing its own assets
(see II. Truckers)
3. Right of refusal of trucking companies which do not meet criteria outlined
4. Name of insurance company and insured amount confirmed in writing, including guarantee
for subcontractors

C. Operations (Warehousing) - See also warehouse survey at 6.3.2.

1. No third party storage (except similar products)
2. Security check made by PMI to include night check to ensure proper lighting
3. Warehouse open to requests for security checks by outside agencies, i.e. insurance compa-
nies
4. Smoke alarm installed
5. Security alarm installed with direct police/security office contacts
6. Twenty-four hour watch or monitor controlled security service, to include at least one walking
post outside.
7. Point of contact list for emergency situations, both for internal personnel as well as PMI per-
sonnel (Emergency Plan)
8. Hand held fire extinguishers available
9. Ban on smoking inside the warehouse except in designated areas away from stored goods
10. Secure parking area for after hour deliveries for valuable loading
11. All seals checked against transport documents on inbound goods. Any discrepancies are
to be immediately reported to warehouse management and them to PMI warehousing per-
sonnel to remove seals and open trucks, not truckers.

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12. Should a loss occur, verification of seals should take place to insure that the affixed seals
are those emplaced at origin. The primary means of this verification should be a return of
the seals to point of origin.
13. Book inventories will be adjusted according to local contracts/requirements and reported to
warehouse management. Any discrepancies will be immediately rectified by recount of book
values, and if still unresolved, by physical count.

D. Contract
1. Forwarder shall assume responsibility for negligent and malicious acts
2. Forwarder shall list PMI Companies Inc. as additional insured of his Public Vehicle Liability
Insurance Policy.

TRUCKERS (Guidelines for PMI direct to truckers or forwarders to truckers)

A. Selection Criteria/Reliability
1. Historical performance
2. References checked (Experience of other customers, relationships, and with local law en-
forcement, if possible)
3. High security standards
4. Financially sound
5. Equipment readily available and in sufficient numbers
6. Provide evidence of vehicle liability insurance with statutory limits of liability as minimum cov-
erage, and name Philip Morris as additional insured.

B. Operations
1. Employ reliable drivers who have been screened and considered reliable (depends on kind
and value of goods)
2. All drivers in possession of valid driver’s license and passport, as necessary
3. Company ensures a driver’s training program, which includes safety, security, and reporting
procedures (where useful and possible)
4. Send trucks in convoy or two drivers per truck or three drivers on two trucks traveling togeth-
er. (This primarily relates to long shipments where the goal is to keep the truck moving)
5. Instruct drivers and workers not to discuss cargo
6. Always park in secure areas at night when loaded. Use approved list of these areas (current-
ly the International Road Union list)
7. Never leave truck unattended or unlocked
8. Ensure drivers have proper information regarding unloading locations and times
9. Ensure drivers have clear and extensive information to manage export/import customs regu-
lations
10. Goods to be unloaded as soon as possible upon arrival and not later than the day of delivery
11. Driver informs company/forwarder when stated arrival time will be exceeded and ask for in-
structions
12. Trucking company informs customer upon receiving information that arrival time will be ex-
ceeded

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13. Trucking company makes arrangements with customer/warehouse for securing of cargo if
arrival time is exceeded and will be after normal work hours
14. Ensure customer has proper information regarding shipment prior to truck arrival, to include
driver, truck number, arrival time
15. Drivers required to show proper documentation and credentials for pickup of goods
16. Trucks shall be equipped with these items at a minimum. (At least for long distance trans-
ports, export, imports etc.)
a) Automated door locking
b) Key operated interruptible fuel supply and/or clutch, and/or brake
c) Optical/acoustic alarm
d) Steering wheel locking system or bar
e) No mechanical deficiencies
f) Hard bodied trucks preferred
g) Citizen’s Band radio
h) Current telephone numbers for use in emergency situation en-route, at least one of
which can be accessed 24 hours a day. These numbers should include the number
of the customer and a specific point of contact.
i) Current list of secure parking areas which cover the entire length of the route
j) Only deliver to address on documentation - no exceptions without approval of PMI or
forwarder, whichever is applicable
17. Always expressively employ sound safety practices
18. Name of insurance company and insured amount confirmed in writing
19. All trucks sealed by PMI personnel or their contracted agents at warehouses and opened
only by PMI personnel, their contracted forwarder, or consignee at destination - Not The
Trucker!
20. Should a loss occur, verification of seals should take place to insure that the affixed seals
are those emplaced at origin. The primary means of this verification should be a return of
the seals to point of origin.

EXCEPTION REPORTING
Exceptions should be reported by market for each forwarder and/or trucker utilized.

LOSS REPORTING AND RECOVERY GUIDELINES

A. Loss Reporting
1. Losses should be reported immediately in accordance with individual local transport guide-
lines
B. Recovery Guidelines
1. In order to achieve best recoveries and to force forwarders for careful handling of our goods
“WAIVERS OF SUBROGATION” are never to be accepted.
2. A close collaboration should be established with surveyors and/or insurance companies who
may be investigating the loss.
3. A close collaboration should be established with law enforcement personnel who are at-
tempting to effect recovery on behalf of Philip Morris.

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4. With advice from law enforcement officials and possibly surveyors/insurance companies,
evaluate with the law department and security, benefits and ramifications of offering a reward
for recovery of stolen goods.
5. Seal verification should be established as part of the claims/recovery process.
V. CHANGES TO THESE GUIDELINES
1. Losses which occur in spite of these guidelines should be reviewed carefully. Regional and
market management should review loss reports for patterns. The Loss Control Task Force
should do the same. Submissions for enhancement or change to the particular item in these
guidelines should be brought to the Loss Control Task Force when they occur.

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6.3.2.Warehouse survey

WAREHOUSE SURVEY PHILIP MORRIS COMPANIES INC.

Assured: Report Ordered By:
Reviewed and Approved By:
Location: Re-inspection Date:
Amount at Risk:
(If street name and number not shown, insert same where ascertainable)

IMPORTANT Did you personally inspect interior of premises?

If not, state reason and answer only “Exterior” questions of
report:

Date premises visited:

FIRE

1. A. Basic construction of walls (wood stud, brick, cement block, corrugated iron,
etc.) :

B. Basic construction of floor (wood joisted, reinforced concrete, corrugated iron,

etc.) :

C. Basic construction of roof (wood joisted, reinforced concrete, corrugated iron,

etc.) :

2. Height of building (No. of stories) : Any basement?

____ ______

3. A. General occupancy of building (manufacturing, mercantile or warehouse) :

B. Sole tenant or multiple tenant :

C. If multiple tenant, indicate any hazardous occupancies such as restaurant,

woodworker, bowling alley, etc. or storage of hazardous materials :

4. A. Approximate distance to nearest fire department :

B. Is fire department paid or volunteer ?

C. Approximate distance to nearest fire hydrant :

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5. A. Is building equipped with automatic sprinkler system ?

B. What is water supply for sprinklers (street-main connection, gravity tank, pres-
sure tank or combination there of) ?

C. Is sprinkler system equipped with water-flow alarm ?

D. If so, is alarm connected to central station ?

E. Is clearance of 24” maintained between stock piles and level of sprinkler heads ?

6. A. Is building equipped with automatic fire alarm ?

B. If so, is alarm connected to central station ?

7. A. Does electrical wiring appear to be in good condition ?

B If not, explain :

8. A. Approximate age of building :

B. Condition (good, fair, or poor) :

C. If poor, explain :

9. A. Building of excessive (over 15,000 sq. ft.) ground area ?

B. If so, is it divided into sections by masonry fire walls ?

10. Adjacent exposures (as you face front of assured’s building) :

No of feet No of stories Construction Type of occupancy

Right to story bldg

Left to story bldg

Rear to story bldg

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11. Which floors of building occupied by assured (basement, 1st floor, 2nd floor,
etc.)?

12. A. Indicate type of manufacturing or processing done by assured :

B. If storage only, describe type of merchandise :

13. A. Are premises kept clean and orderly ?

B. If not, explain :

14. Are “No Smoking” signs posted and obeyed ?

15. Sufficient rubbish cans with covers, for disposal of waste ?

16. Is there a supply of hand fire extinguishers or fire pails ?

17. A. Are there any special hazards such as painting, spraying, welding or use of blow
torches, etc. ?

B. If so, explain :

C. How segregated and safeguarded ?

18. Is clearance of 18” maintained between combustible materials and gas-fired

heaters, if any ?

SECURITY

1. Physical Security

A. Private Property Signs :

B. Fencing :

1. Barbed Wire:

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2. Clear Zones on Both Sides:

C. Lighting:

1. Outside of Facility :

2. Outside Doors Illuminated :

D. Doors:

1.Secured with Alarms :

E. Windows :

1. Locked with Alarms :

2. Tinted/Shades :

F. Docks :

1. Overhead Doors Secured/Alarmed :

2. Drivers :

3. Restricted :

2. Guard Force

A. Armed :

B. Are guard tours monitored ?

C. 24 hour/7 day coverage :

D. Are guards supervised ?

E. Do they have two way radios ?

F. Minimum Training :

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G. Do they prepare incident reports ?

H. Exterior Patrols :

3. Access Control

A. Is there an employee ID system ?

B. Separate Employee/Visitor/Contractor Entrances :

C. Are visitor logs required ?

D. Has receptionist been indoctrinated on security procedures ?

E. Is there a package/property control system ?

4. Intrusion Alarms

A. Is there a system ?

B. Is it monitored ?

C. In-house or at a central station ?

D. Are police automatically advised of alarm activations ?

E. Are there alarms on all outside exits and roof access points ?

F. Are there motion detectors ?

G Are there panic alarms ?

5. CCTV

A. Is there a security CCTV system ?

B. Adequate monitors ?

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Guidelines for Material Storage & Handling in the Cigarette Industry

C. Exterior cameras weather proofed ?

D. Do cameras have pan, tilt and zoom capability ?

6. Key Control

A. Is there a key control program ?

B. Are there written procedures and policies in effect ?

C. Are they issued on a need to have basis ?

D. Is an inventory maintained ?

E. Are physical audits conducted ?

F. Are there safes or vaults in the facility ?

WATER DAMAGE

1. Is roof in good condition and free of leaks ?

2. Do all gutters, downspouts and roof drains appear to be free of obstructions and
working properly ?

3. Are water pipes and plumbing fixtures in good condition ?

4. A. Type of heating system (steam, hot water, forced air, etc.) :

B. Is it in good condition ?

5. A. Are premises air conditioned ?

B. If so, does system appear to be in good condition ?

6. A. Is any of assured’s property kept in basement ?

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B. If so, indicate type of property and approximate value :

7. A. Is all merchandise on all floors (including basement) stored on skids, pallets or

shelves ?

B. If not, explain :

8. A. Is there any unusual water damage hazard from tenants on floors above
assured?

B. If so, explain :

9. A. Do assured’s operations constitute an unusual water damage hazard to tenants

on floors below ?

B. If so, explain :

10. A. Is there any danger of flood by surface water run-off or drainage from surround-
ing higher ground?

B. If so,explain :

C. Indicate approx. distance to nearby creek, river, bay, or other body of water (if
any) :

D. Is there any danger of flood from such creek, river, bay, or other body of water?

E. If so, explain :

F. Indicate approx. elevation above maximum high water level :

G. Has the Army Corps of Engineers and/or HUD (or applicable entity in local area)
ever surveyed the area for flood control ?

H. Protective measures against flood (dykes, pump systems,etc.) :

I. Any history of sewer back-up ?

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MISCELLANEOUS PERILS

1. Any danger of walls, floors or roof collapsing ?

2. A. Building particularly susceptible to windstorm damage ?

B. If so, explain :

3. A. Is any of assured’s merchandise or equipment stored in adjacent open yard ?

B. If so, indicate type and approx. value :

C. How protected from theft or other perils ?

4. A. Is any of assured’s merchandise or equipment stored on adjacent open pier or

wharf ?

B. If so, indicate type and approx. value :

C. How protected from theft or other perils ?

I. Losses Has assured sustained any fire, windstorm, burglary, sprinkler leakage,
flood, water damage, collapse or other type of losses in the past ?

If so, describe briefly :

II. Narrative Comment briefly on any features of this risk which you feel needs amplifi-
cation :

III. Diagram (If necessary to clarify report, or if more than on building involved) and
Photograph(s)
Number attached, if any :

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6.4. PALLETIZATION OF NTM

Hereafter is a description of a possible palletization and stacking of NTMs.
Source: NTM used to manufacture MARLBORO KS 84 mm at PMPSA, Neuchâtel, Switzerland,
August 2001.

6.4.1.Casing kitchen division

Source : Ingredients received at PMPSA
AC&PC produced for Export at PMPSA
A) The following ingredients used for AC and PC preparation are recommended to be
stored in standard racks.
Item : 10.60000 - Sorbitol

L W H
Pallet dimensions : 120 x 80 x 102 cm
Pallet weight : 620 kg
Item/pallet : 2 drums
Item content : 125 kg

Item : 10.1150 - Chocolate liquor

L W H
Pallet dimensions : 114 x 94 x 83 cm
Pallet weight : 520 kg
Item/pallet : 20
Item content : 25 kg

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Item : 10.1160 - Cocoa powder

L W H
Pallet dimensions : 120 x 80 x 105 cm
Pallet weight : 770 kg
Item/pallet : 18
Item content : 25 kg

Item : 10.1250 - Powder

L W H
Pallet dimensions : 120 x 120 x 115 cm
Pallet weight : 520 kg
Item/pallet : 20
Item content : 25 kg

Item : 10.1850 - Licorice Powder

L W H
Pallet dimensions : 120 x 80 x 150 cm
Pallet weight : 690 kg
Item/pallet : 27
Item content : 25 kg

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Item : 10.3200 - Powder

L W H
Pallet dimensions : 106 x 106 x 110 cm
Pallet weight : 400 kg
Item/pallet : 4
Item content : 91 kg

Item : 10.3965 - example of Liquid Basic Flavor

L W H
Pallet dimensions : 120 x 80 x 103 cm
Pallet weight : 540 kg
Item/pallet : 2
Item content : 238 kg

B) AC & PC received in factories without a full casing kitchen. It is recommended to store

them in standard racks. Nevertheless they can be stored in bulk on 2-levels as well.
Item : AC & PC drums

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6.4.2.Filter making division

Item : Acetate Tow

L W H
Pallet dimensions : 148 x 100 x 120 cm
Pallet weight : 632 kg
Item/pallet : 1 bale
Item content : 616 kg / 3.0 / 35000 Y
Number of levels : 4*
* last pallet positioned between two parallel blocks

Item : Triacetine (plasticizer)

L W H
Pallet dimensions : 120 x 80 x 103 cm
Pallet weight : 610 kg
Item/pallet : 2 drums
Item content : 265 kg
Number of levels : 4

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Item : Plug wrap

L W H
Pallet dimensions : 120 x 120 x 147cm
Pallet weight : 770 kg
Item/pallet : 200 bobbins
Item content : 5500 m/ 26.5 mm
Number of levels : 3

Item : Filter adhesive

L W H
Pallet dimensions : 120 x 80 x 56 cm
Pallet weight : 340 kg
Item/pallet : 12 drums
Item content : 25 kg
Number of levels : 2

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Item : Filter seam adhesive

L W H
Pallet dimensions : 120 x 180 x 108cm
Pallet weight : 224 kg
Item/pallet : 12 buckets
Item content : 15 kg
Number of levels : 3

Item : Filter rod

L W H
Pallet dimensions : 120 x 80 x 200 cm
Pallet weight : 274 kg
Item/pallet : 202’500 rods / 45 trays
Item content : 4500 rods / 126 mm
Number of levels : 4

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6.4.3. Making division

Item : Cigarette paper

L W H
Pallet dimensions : 120 x 120 x 147 cm
Pallet weight : 1017 kg
Item/pallet : 200 bobbins
Item content : 7300 m / 27 mm
Number of levels : 3

Item : Seam adhesive

L W H
Pallet dimensions : 120 x 80 x 98 cm
Pallet weight : 626 kg
Item/pallet : 1 tank
Item content : 550 kg
Number of levels : 3

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Item : Tipping paper

L W H
Pallet dimensions : 120 x 120 x 114 cm
Pallet weight : 475 kg
Item/pallet : 76 bobbins
Item content : 3400 m / 50 mm
Number of levels : 3

Item : Tipping adhesive

L W H
Pallet dimensions : 120 x 80 x 98 cm
Pallet weight : 626 kg
Item/pallet : 1 tank
Item content : 550 kg
Number of levels : 3

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6.4.4. Packing division

Box-display carton
Item : Silver metallized paper

L W H
Pallet dimensions : 120 x 80 x 125 cm
Pallet weight : 634 kg
Item/pallet : 54 bobbins
Item content : 1800 m / 80 mm
Number of levels : 4

Item : Innerframe

L W H
Pallet dimensions : 120 x 80 x 142 cm
Pallet weight : 555 kg
Item/pallet : 26 bobbins
Item content : 920 m / 95 mm
Number of levels : 3

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Item : Hinge lid blank

L W H
Pallet dimensions : 120 x 80 x 105 cm
Pallet weight : 650 kg
Item/pallet : 120’000 pcs
Item content : -
Number of levels : 3

Item : Fiscal sticker

Pallet dimensions : carton

Pallet weight : -
Item/pallet : 20’000 pcs
Item content : -
Number of levels : -

Item : Pack overwrap

L W H
Pallet dimensions : 120 x 80 x 144 cm
Pallet weight : 626 kg
Item/pallet : 80 bobbins
Item content : 4000 m / 120 mm
Number of levels : 2

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Item : Pack tear tape

L W H
Pallet dimensions : 120 x 80 x 143 cm
Pallet weight : 255 kg
Item/pallet : 56 bobbins
Item content : 50’000 m / 1.6 mm
Number of levels : 1

Item : Display carton

L W H
Pallet dimensions : 120 x 80 x 105 cm
Pallet weight : 475 kg
Item/pallet : 24’000 pcs
Item content : -
Number of levels : 3

Item : Display carton overwrap

L W H
Pallet dimensions : 120 x 80 x 126 cm
Pallet weight : 418 kg
Item/pallet : 18 bobbins
Item content : -3200 m / 120 mm
Number of levels : 2

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Item : Display carton tear tape

L W H
Pallet dimensions : 120 x 80 x 143 cm
Pallet weight : 282 kg
Item/pallet : 56 bobbins
Item content : 20’000 m / 3.0 mm
Number of levels : 1

Item : Shipping case 10’000

L W H
Pallet dimensions : 143 x 85 x 170 cm
Pallet weight : 270 kg
Item/pallet : 250 pcs
Item content : -
Number of levels : 3* * last pallet positioned between two parallel blocks

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Item : Sealing tape

L W H
Pallet dimensions : 120 x 80 x 107 cm
Pallet weight : 250 kg
Item/pallet : 1080 bobbins
Item content : 66 m / 50 mm
Number of levels : 1

Item : Packing adhesive

L W H
Pallet dimensions : 120 x 80 x 107 cm
Pallet weight : 422 kg
Item/pallet : 3 drums
Item content : 125 kg
Number of levels : 2

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Item : FG pallet stretch film

L W H
Pallet dimensions : 120 x 80 x 118 cm
Pallet weight : 520 kg
Item/pallet : 30
Item content : 1870 mm
Number of levels : 2

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6.5. FINISHED GOODS PALLETIZATION COMPARISON

6.5.1.Scope
The scope of this document is to highlight the pros and the cons of two approved PMI finished
goods palletization on 800x1200 mm and 1000x1200 Euro pallets.

6.5.2.Context
Following the decision of the PM BOZ operation to palletize finished goods (FG) on
1000x1200mm Euro pallets, some EEMA operations made the same choice (PM Lithuania, PM
Kazhakstan).
The present document aims to neutrally give the pros and the cons of such a decision.

6.5.3.The different palletizations

PMI standardized shipping cases contain 10’000 or 5’000 cig. The shipping cases’ dimensions
vary depending on the cigarette/packaging specifications (KS, 100’s, BOX, SOFT, etc.).
The shipping cases themselves have to be palletized for storage and transportation according
to the PMI guidelines, i.e.:
S Cigarettes should be stored horizontally;
S Shipping cases should not overlap the pallet;
S Structure of the cardboard should be well oriented to avoid flattening (orientation of
flutes);
S The module should be as stable as possible, therefore do not build towers but mix up the
shipping cases level per level for stability;
S Store on standardized pallets;
S Attach shipping cases together to the pallet (stretch wrapping).
The figures Figure 137 & Figure 138 show two approved palletizations on 800x1200 and
1000x1200 Euro pallets for any PMI KS-SOFT-DC brand.

layers A KS--SOFT--DISPLAY CARTON

layers A
KS--SOFT--DISPLAY CARTON PALLETIZING
PALLETIZING
1000 x 1200 mm pallet
800 x 1200 mm pallet layers B 10’000 cigarettes per case
1870

layers B 10’000 cigarettes per case 30 shipping cases per pallet

1870

21 shipping cases per pallet 300’000 cigarettes per pallet

210’000 cigarettes per pallet ~15.5 kg per case
~15.5 kg per case layers A

~350 kg per pallet

~500 kg per pallet
layers A

Shipping case
2 layers A 1 layers B
575

(1000)
575

(800)

455
245

2 layers A 1 layers B
455
245

Shipping case (1200)

(1200)

Figure 137: 800 x 1200 pallet Figure 138: 1000 x 1200 pallet

Figure 137 shows that 210’000 cig can be stored on a 800x1200 pallet (21 shipping cases of
10’000 or 42 shipping cases of 5’000).
Figure 138 shows that 300’000 cig can be stored on a 1000x1200 pallet (30 shipping cases of
10’000 or 60 shipping cases of 5’000).
These two palletizations will be compared in the next paragraph.

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6.5.4.Comparison
Pallets
Both pallets are standard, i.e. with dimensions compatible with all types of storage and trans-
portation methods.

Number of pallets
A FG warehouse requires 42% more 800x1200 pallets than 1000x1200.
Example: To store 1 bio cig, you need 4’762 800x1200 pallets
3’334 1000x1200 pallets

Ratio: number of cigarettes per square meter

The 1000x1200 palletization provides a gain of 14% warehouse floor surface.

Pallet Cig/pallet m2 Ratio cig/m2

800x1200 210’000 0.96 218’750
1000x1200 300’000 1.20 250’000

Example: To store 1 bio cig on the floor (pallets against each other), you need
4’572 m2 for pallets 800x1200
4’000 m2 for pallets 1000x1200

Transportation
The 1000x1200 palletization provides a better road transport utilization (12%):
Max. number of 800x1200 pallets in a European semi-trailer: 33
Max. number of pallets 1000x1200 in a European semi-trailer: 26

Pallet Cig/pallet Pallet/lorry Mio cig/lorry

800x1200 210’000 33 6.93
1000x1200 300’000 26 7.80

Example: To move 1 bio cig, you need 145 lorries with 800x1200 pallets
129 lorries with 1000x1200 pallets

Distribution channels
All paragraphs 6.5.3. and 6.5.4. show that the FG palletization on 1000x1200 pallets provides
a lot of advantages compared to the 800x1200. Nevertheless, before introducing this palletiza-
tion, the global logistic process through the distribution channel needs to be carefully studied.
In other words, the complete logistic infrastructure must be designed for 1000x1200 pallets from
the factory to the final customer.
Typical Error:
If racks are used for storage of 1000x1200 pallets, they have to be designed accordingly, other-
wise, one third of your pallet places is lost.

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2700 3300

standard rack compartment standard rack compartment

for 800x1200 pallets for 1000x1200 pallets

Figure 139Design racks according to pallet size

6.5.5.Conclusion
By comparing two approved FG palletizations of a KS-SOFT-DC brand on 1000x1200 and
800x1200 pallets, the 1000x1200 offers
S a saving in the number of pallets to buy;
S a saving in the warehouse surface to build or to lease;
S a saving in transportation.
On the other hand, to guarantee the success of the 1000x1200 pallet, the complete logistics
through the distribution channels must be carefully studied. To maintain two different standards
in FG palletization will definitely result in conflicts.
This document compares the palletization of KS-SOFT-DC products. For other formats, the
comparison would give different results, but still showing the same trend.

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6.6. BATTERY SPECIFICATIONS

The main distinctive features are listed in table below :

Lead batteries Gel batteries

Capacity 80% of nominal capacity is used 60% of nominal capacity is used
Working life 1500 charging cycles 1000 charging cycles
Discharging data The reduction of capacity is only Constant reduction of capacity since
visible by almost completely the beginning of the operation
discharged battery
Maintenance Water filling (1 x week) Maintenance free
Measurement of electrolyte density
(1 x month)
Such maintenance is well known
(car battery)
Operation requirements None S Equal floors (not shock-
Approaches for usage in any resistant)
conditions S Facilitated working conditions
(any steeps)
Charger Cheap non-controllable charger will Controllable charger is required
be used (Ratio of the price to non-
controllable 3:1)
Time of charging 6 – 8 h possible 10 – 14 h
Formation of hydrogen Large let of hydrogen Minor let of hydrogen (app. 1/10 to
at charging time the let of lead battery)
Requirements to a Natural/forced ventilation None
charging station The air volume depends on the In accordance with European norms
quantity of batteries and the type of and standards, no charging room is
chargers. required.

Intermediate charging It is only possible with electrolyte It is not possible.

(*) mixing.

(*) - Intermediate charging means: if the battery is disconnected during the charging in order to be used.
Short time charging conducts to the destruction of batteries. In case it is required to proceed a short time
(intermediate) charging, the device for mixing of electrolyte is necessary.

Chemical processes during charging

Both types of batteries work on the basis of an electrolysis of lead and sulfuric acid. In charged
battery, the positive plate consists of PbO2, the negative plate – of lead, electrolyte – of sulfuric
acid. During discharging on both plates, the lead sulfates is derived with the mixing of electrolyte
with water. During charging there is an inverse process. Thus the hydrogen is derived. The mix-
ture of oxygen and hydrogen from a loss of hydrogen more than 3.8 % is an explosion-hazard.
It is necessary to undertake measures in order to reduce the concentration of hydrogen in the
battery charging room.
Gel batteries:
A special liquid prevents the hydrogen loss thus enabling its reutilization.
Lead (acid) batteries:
The padding ventilation should provide a level of hydrogen below 3.8 %. Water should be added
in order to compensate the hydrogen loss in battery elements.

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Mixing of an electrolyte (EM)

During charging, the sulfuric acid is derived. It is rougher than water in electrolyte of the dis-
charged battery. Therefore, acid sinks to the bottom of the battery. Only at the last stage of charg-
ing is the hydrogen derived in an electrolyte. The hydrogen goes up in a liquid, admixing it. Thus
the even mixing of an acid is reached.
During short time charging no hydrogen is derived. The concentration of acid increases at the
bottom of the battery. The more concentration there is, the harder the reaction becomes. Conse-
quently, the plates can be damaged.
The EM enables the mixing of an electrolyte irrespective of hydrogen formation. Moreover, there
is air in each cell of the battery. The raising bubbles of air admix an electrolyte. Charging the bat-
tery this way prevents any potential damage.
Water filling system (aquamatic)
As the water is consumed during charging, it is necessary to add some.
This activity should be executed either manually for each cell of the battery, or together for all
cells with the use of a water filling system.
Using the water filling system, all cells are connected to one hosepipe. This hosepipe pours wa-
ter to the tank, then the filling proceeds automatically. The valves built-in in the battery prevent
an overflow.
The device for mixing of an electrolyte and water filling system are only used for lead batteries
and not for gel batteries.

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6.7. WAREHOUSE STORAGE LOADS AND FLOOR QUALITY

pallet dimension max. load on floor

pallet max.
note
length width footprint weight nb.levels
kg/m2

Bulk storage tobacco (C48) 705 1135 0.80 200 7 1750

NTM 1200 1200 1.44 1100 4 3056

2) 3) NTM 800 1200 0.96 800 4 3333 maximum value

1) NTM 0.96 538 4 2242 realistic average value

FG 1000 1200 1.20 500 4 1667

nb. of pallets per beam 1 pallet is max. per rack foot (point max. per rack foot
on floor load) in kg

On racks (6.5 m) tobacco - * 3 650 4 2925

NTM aver. 4 800 4 4800 average value

3) NTM max. - - 4 1100 4 6600 maximum value

FG - * 4 500 3 2000

On racks (9.5 m) tobacco - * 3 650 6 4875

NTM aver. 4 800 6 8000 average value

3) NTM max. - - 4 1100 6 11000 maximum value

FG - * 4 500 4 3000
whsefloors_21-mar-2005
* Drive-in racks, theoretical values

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Equipment Reachtrucks dynamic load 5.5 t. loaded 4900 (front axle loading)
(Still FM 20) on 4 hard wheels

VNA truck dynamic load 9.5 t loaded 2400 (max. per wheel)
(BT CTX 1300 SEi SF) (~equally distributed) on 4 hard wheels

Forklifts dynamic load 16.5 t. loaded 7550 (max. per wheel)

(Still AT700E/70, heavy model (15.1 t front axle loading) on 4 soft wheels, usually never used in warehousing areas
used for installation purpose)

Storage Method Handling equipment Building Floor load Equipment Floor flatness Floor quality
height point load

Block storage, standard racks, drive-in, others Conterbalanced reach truck 6.5 m 2500 kg/m2 6600 kg DIN 18202 (line 4) normal BN250

Block storage, standard racks Reach truck 9.5 m 2500 kg/m2 11000 kg DIN 18202 (line 4) normal BN250

Drive-in Reach truck 9.5 m 2500 kg/m2 4875 kg DIN 15185 high quality

Hi-rack 4) VNA truck 12 -15 m 2500 kg/m2 60 kg/m2 DIN 15185 very high quality

Stacker crane 4) Stacker crane 12 - 20 m 2500 kg/m2 60 kg/m2 DIN 18202 (line 4) normal BN250

1) The pallet weight taken into consideration here is an average pallet weight. Due to the fact that NTM stored in bulk are in buffer areas only, a standard
mix of various materials of different weight has to be available.
2) This value may be true locally under some pallets in a storage area.
3) The chance to meet these maximum values is around 2%, but it can happen anywhere in a warehouse.
4) Requirements to be confirmed by racking supplier.
Remarks
S Drive in racks have upstands every 1-1.5m, therefore the load per upstand foot is much smaller than with pallets on beams (as in above cal-
culation).
S Loads given in this table do not take into consideration corridors, traffic areas, or other empty spaces.
S Foot size of the columns (about 150x150mm) have not been considered yet for ’on rack’ point load calculation.

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6.8. WMS TECHNICAL INFORMATION

6.8.1.PMI Expected Functionality in WMS

As a basic indication WMS is expected to cover the functionality below listed.
The more detailed description of the expected functionality is also available in the document “
Warehouse Management System Specification “, reference [27].

General characteristics
S Multi language
S Multi site storage
S Multi ownership of inventory
S System parameterizing (adaptable to any PMI site by parameters configuration)
S Barcode and radio frequency compatibility

Warehouse architecture
S Different storage unit types
S Logical storage types (reserve area, area picking, etc.)
S Physical storage types (bulk, racking and high bay warehouse)

Putaway / retrieval strategies

S FIFO management and/or expiry date management
S Automatic replenishment of picking locations
S Variable location management
S Cross-docking
S Putaway/Retrieval rules aggregated and differentiated by:
- Picking lists,
- Storage areas,
- Docking areas (by lorry type)
- Handling equipment,
- Delivery types (ex: urgent delivery)

Optimisation management
S Storage optimization (ex: ABC rotation, product types)
S Putaway/Retrieval paths optimization
S Handling equipment optimization (task allocation by activity)
S Human resources optimization (people allocation by equipment / tasks)

Operative support
S Advance Shipping Note management
S Monitoring tasks activities (receiving, putaway, retrieval, shipment)
S Workload analysis

Value Added Activities

S Assortment, Counting, Price tagging
S Kiting, Packaging, Sampling

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Reporting
S Operational activities as inquiries by product, storage unit and location
S Inventory by product, location types and occupancy
S Discrepancy on purchase order by PO, product, supplier and delivery date
S Internal activity report by items, resources, activity type and exceptions
S Storage and Handling Unit tracking

6.8.2.Information management : WMS and Host System

Integrated logistics systems require special attention to the issues of reliability and security. This
can only be achieved if the information and tasks assigned to each system are clear.
The indication below should serve as guidelines when setting system information management.

Download from Host System ⇒ WMS

The information supplied by the Host System (ex. Expandable, SAP R2/R3) are:
S Item data base;
S Transmission of (supplier) purchase orders (PO);
S Replenishment orders for Primary and Secondary according to production planning;
S Transmission of customers’ orders and replenishment orders to other sites.

WMS data management

A WMS manages the following information:
S Item reference data;
S Storage data (site, warehouse, warehouse partitions, store area, storage location);
S Administration per item and Logistic Unit (LU) and/or Storage Unit (SU);
S Receipts of PO, registration of LU/SU data, dealing with putaway;
S Receipts of replenishment and customer orders;
S Separation of orders in full LU retrievals and LU pickings;
S Retrievals for production (Primary and Secondary);
S Automatic creation of replenishment and emptying orders;
S Retrievals for customers;
S Release / rejection of customers orders after host information;
S System and function access securities;
S Dialogues to operators disposal (internal order registration, WMS controlling);
S Manual registration dialogues for concerned functions in case of host system break-
down;
S Simulation of Purchase Order (PO) and Receiving Order (RO).

Upload WMS ⇒ Host System

The information transmitted to the Host System (ex. Expandable, SAP R2/R3) are:
S Item references;
S Purchase order data / Purchase order discrepancies;
S Putaway confirmation;
S Custom clearing data;
S Confirmation of internal movements sorted by a code (putaway, retrievals, and replenish-
ment in warehouse, replenishment orders for production);

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S Customer order discrepancies;

S Shipment confirmations;
S Stock discrepancies;
S Transfer order information ;
S Material rejection.

6.8.3.WMS Implementation: Pre-requisites

Identification of products and warehousing areas, business process reengineering and analysis
of existing system are the preliminary steps required for WMS implementation.

Identification and Labelling

PRODUCTS
As the flow control and management is based on the tracking of units’ movements, each unit
has to be identified. That could be obtained by using a label provided with a readable barcode,
or a chip or any other technologic advanced identifications.
Non Tobacco Material Standard PMI labelling is available at pallet levels (see PMI
Label Specifications).
Finished Goods Standard PMI labelling is available at shipping case and pallet
levels (see PMI label specifications).
Tobacco The identification should be defined place by place until a
standard labelling is released.
Semi finished Products The identification should be defined place by place until a
standard labelling is released.
STORAGE AREAS AND LOCATIONS
The identification of storage area identifies the co-ordinates and addresses where to putaway,
store and retrieve goods. This identification is normally available on PMI warehouses. The
introduction of the WMS and Radio Frequency readers requires having labels with barcodes.

Business process reengineering

Even though a WMS is flexible and adaptable, the implementation requires adapting the work-
flow to the philosophy of the software. This is the most important and difficult phase of the imple-
mentation.
The process review (or reengineering) recommendations should be part of the pre-implementa-
tion study. This is the part of major discussion between the WMS project team and the PMI cus-
tomers and it can take the longest time.

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Analysis of existing system

An analysis of the existing system is required to permit WMS to run correctly, to avoid having
too many discrepancies with the host system. The development of an interface between WMS
and the host system could avoid redundant manual inputs.
Interfaces with the SAP R/3 MMM and Warehouse Management System modules are available
(and implemented with SAP in Tabak as and BoZ).

6.8.4.WMS Implementation: Steps

The following steps give a rough idea of the activity to perform during WMS implementation:
S Make WMS software test on site;
S Prepare Description of Operations (DOP);
S Define the customization development, if required;
S Complete Configuration of the system based on site requirements;
S Perform test plan;
S Develop and test interface with other system;
S Do the software site integration;
S Complete training;
S GO-Live.

6.8.5.Technical Recommendations
A WMS offers the maximum freedom of selections relative to
S Computer Systems (includes fault tolerant systems);
S Peripheral Devices;
S Operating Systems;
S Database Manufacturers;
S Client / Server Technology.
The following recommendations for hardware (HW) and software (SW) architecture are pro-
vided as a support of discussion with ICS department when implementing a WMS on any site.
As a basis, we recommend implementing a ’high-availability’ system. However, a discussion
should take place during the first phases of a WMS project, because different levels of security
are possible. The final architecture must take into consideration the ICS policies and standards
defined by country and organization.

Sizing assumptions – Logistic side

From logistic point of view there are three main factors for sizing HW and SW:
S Number of order lines;
S Number of receiving lines;
S Length of the working day and the spread.
As an example, we assumed to have a medium warehouse. It is defined at the following volume:
S 3,000 order lines per day;
S 2,500 receiving pallets per day;
S 300 - 500 items;
S Two 8 hours shif.ts
The equipment recommendations to run WMS are:
S 4-5 Client PC’s;

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S about 10 Radio Frequency-Terminals.

WMS Hardware configuration

The following shows a rough estimation of the needed configuration (without high-availability)
that will be detailed as soon as possible during the project.
S Main Server – The purpose is to have a Live Database only.
S Secondary Server - The purpose is to have an History database, the Interface platform
and the Backup for the main server.
S Radio Frequency terminals Server - The purpose is to have Radio Frequency emula-
tion.
S WMS -Client-PC - Front End/ Client for PC WMS.
The detailed specification, for example, for the exact models, of CPU, Memory, Disks, Operating
System and Database should be done immediately after project start. The rapid change in avail-
able technologies does not suggest giving an indication here. However the reference of WMS
DC Master in Krasnodar (see below) might help to understand some technical choices for the
’less-expert’ users.

Figure 140 : Example of WMS Hardware structure implemented in PM Kuban (Jan 2000)

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6.8.6.PMI Selected WMS Product

Today WMS product recommendation is the software DC Master, developed by the company
Ofek in Tel Aviv, which is owned by SAP since 1998. For any reference please see Document
WMS Intermediate Solution: Tender evaluation, PMI Engineering, 1998.
Object-oriented in design, DC-Master is a Client/Server open systems package that supports
SQL-compliant relational databases, currently Oracle. DC-Master was designed for the global
market, with multi-national capabilities, allowing international corporations the use of the same
application regardless of the location of their worldwide distribution centers. The software DC
Master has been implemented as a ’stand alone’ application in Krasnodar between November
1999 and July 2000. See Document: DOP 5, PM Kuban, Jan 2000.

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6.9. RADIO FREQUENCY TECHNICAL DESCRIPTION

6.9.1. Radio frequency technology

Radio frequency in Narrow Band (NB)

The wireless data communication in Narrow Band signifies that the terminal roaming between
zones of coverage occurs on the same radio frequency band. The State authority assigns the
band to work with and this is unique per each customer. A customer can require more than one
narrow band frequency.
The following picture shows how a radio frequency data communication works in Narrow Band.

Radio Data Terminals

Ethernet
TCP/IP

NC RFU RFU RFU

Figure 141 : Radio frequency data communication in Narrow Band

The network controller (NC) and the base stations (RFU) are integrated with the existing Ether-
net or Token Ring networks of the customers. The controller and the radio frequency units are
always on-line both with the host system and the terminals. Receiving and sending the data from
/to the host and to/from the terminals are simultaneous activities. Upon accomplishment of the
required operations, the terminals update the data to the base station and to the controller and
to the host network.
This approach allows a remote diagnostics and frequency control thanks to synthesized radio.
The main benefits of this approach are :
S The system remains flexible to facilitate planning and ensure future compatibility with
ever changing requirements;
S The system is easily expandable in modules. New sites and/or changed local require-
ments can be accommodated using industry standard techniques;
S The system is readily available;
S There are no central points of failure making the system highly resilient;
S It provides a neutral backbone, designed to allow a sensible choice of the most appropri-
ate technology for each job. Spread Spectrum and Narrow Band systems can coexist on
the same network side by side.

Radio frequency application in Spread Spectrum (SS)

Improvements in radio frequency (RFD) technology and techniques have resulted in the rapidly
emerging availability of alternative solutions for wireless backbones in the data collection indus-
try. Founded on the traditional Narrow Band backbone, the industry grew with the introduction
of Spread Spectrum into the 902 MHz band. Today, the newest (and loudest) addition is the
Spread Spectrum option using the 2.4 GHz license-free ISM band.
The wireless data communication in Spread Spectrum signifies that the terminal roaming
between zones of coverage occurs on more radio frequency band. There is no a pre-assigned

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band frequency to work with and a permission from the State authority is not required. However
the possibility of working in any existing band means that two different customers could work
with the same roaming till interfering each other in the worst possible case. The picture below
shows an example of how a radio frequency data communication works in SS.

Figure 142 : Radio frequency data communication in SS

The system architecture of a SS radio frequency network consists of a cellular network of radio
frequency units (RFU) in multiple zones of coverage, all employing the same duplex radio fre-
quency channel (and, therefore, one license). Each RFU transmits and receives messages from
terminals within its zone of coverage, but with overlapping cells, each RFU may receive or trans-
mit to terminals, which are in other zones. The terminal monitors the signal strength and deter-
mines the best RFU to use. As a terminal ”roams” throughout a facility, the NC routes outbound
messages to the terminal.
The advantages of a Spread Spectrum solution are:
S Simultaneous inbound and outbound transmission;
S Support for parallel inbound message threads on the same radio frequency;
S Unrestricted terminal roaming between zones of coverage on the same radio frequency;
S Coverage redundancy via overlapping zones on the same frequency;
S Future customer requirements and new technology to easily be integrated into currently
installed systems.

Narrow Band vs. Spread Spectrum comparison

Today there is much attention being focused on the Spread Spectrum 2.4 GHz option being the
newest technology. In many cases 2.4 GHz is being proposed in lieu of narrow band systems
thinking that this solution should be better because it is the newest. However Narrow Band
technology is not being phased out. Narrow band solutions are being continuously improved with
innovative radio modulation techniques. That is mainly due to the fact that some application re-
quires the Narrow Band option as very large areas which have coverage constraints. Generally
a Narrow Band system offers the more robust features.
There are many parameters that must be examined to make a truly informed comparison and
decision as the raw data rates, the response time and data throughput. In reality the system re-
sponse time is another relevant factor. And the system response time can be increased either
by having high speed of transmission or by having more controllers to transfer the data.

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Comparative analysis of Narrow Band (NB) & Spread Spectrum (SS) Technology
Characteristics NB SS
Data transmission rate 9.6 KBaud 1 MBaud
Sub-second response Sub-second response time
No of frequencies necessary Equal to the No of base stations Possibility to work on 1 (one) fre-
recommended quency channel
Radius of Coverage from 1 (one) 300 M indoors 30 M indoors
base station
No of bases required (indoors) X 3X
3 times more than in case of NB
on an average
Interference resistance Highest in data transmission Lowest in data transmission
technology. technology. Largest No architec-
Specially adapted to interference tural and natural interference.
radio protocols. Lowest No of
natural and architectural
interference experienced
Battery life 8 hrs 4 hrs
Preparatory work Very high expenses in cabling
structure due to higher No of
bases
System price Could be higher system price due Could be higher system price due
to the costs of controllers to higher number of bases

The trend today is the use of mixed RF backbones, as a combination of all or some of the three
DRIFT backbones (NB, 902 MHz SS and 2.4 GHz SS).

Any vendor offering a choice of backbones also provides migration paths. Narrow Band supports
those parts of the application requiring solid, reliable coverage for critical transactional-based
processing while Spread Spectrum supports applications such as document processing, need-
ing more localized high data throughput. Best of all, both can be fully integrated into the informa-
tion system and be managed by the same controller.

At the question: What Should You Do? The answer is to determine what your system really
needs to do and which is its environment. In almost every installation, the combination of these
two variables will determine which backbone to use. If you have a small warehouse with many
operators taking high volumes of transactions, you will want to use 2.4 GHz. If you are planning
to track cargo on a 53-acre port or you have a warehouse with low number of transmissions a
day you may want to use Narrow Band.

6.9.2. Radio frequency hardware technical overview

Network Controller
A network controller allows the integration with existing Ethernet or Token Ring networks and
it makes the DRIFT system modular expandable. Each Network Controller can manage a maxi-
mum number of terminals in Narrow Band (that number is equal to 128 for most suppliers).

The main components of the network controller are the processor & memory, the Host Computer
or Base Station Interfaces, Diagnostic Terminal Interfaces and its capacity.

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Antennas
The main components of the antennas are Processor & Memory, Host Computer/Network Con-
troller Interface, Diagnostic Terminal Interface, Radio Link Error, Handling (physical and environ-
mental), Power, Narrow Band FM Transceiver, 902-928 MHz Spread Spectrum Transceiver
(Optional), 2.4 GHZ Spread Spectrum Transceiver (Optional) and Electrical Safety Approvals.

Hand Held Terminals

The best hand held terminals have an ergonomic design, a VGA display capable of easy viewing
of even large amounts of data, an ergonomic easy-to-use keyboard with large number keys in
QWERTY and ABCD formats and for use with ANSI, IBM 5250 and 3270 emulation.
The main components of the hand held terminal are Processor and Memory, wireless commu-
nication options, data rates (4.8, 9.6 or 19.2 Kbps) and channels (1 to 16), Peripherals, Key-
board, Display (Size & Weight), Environmental, Power Management and Optional Integrated
Scanners.
Example of hand held terminal used in KTF warehouse:

Mobile Terminals
The vehicle mounted terminals must be protected from the environment (water resistant, “hold
tight” ports and connectors and high tolerance to internal power supplies. They are designed
for driver efficiency (small, readable), have faster task completion and open application develop-
ment.
The main components of the mobile terminals are Wireless Communication Options, Peripher-
als, Bar Code Support, Keyboard, Display, Size and Weight, Environmental and Power Require-
ments.
Example of hand held terminal as used in KTF warehouse:

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6.9.3. The key questions to ask when looking at a radio frequency system
When looking at a new radio frequency (DRIFT) system integration you should ask the DRIFT
suppliers the following key questions about their wireless data communication systems:

1 Does the manufacturer provide a choice between 2.4 GHz spread spectrum, 902-928 MHz
optimized spread spectrum, or 403-513 MHz optimized narrow band radio technologies?
2 Does the system offer a contention protocol that results in the fastest response times in the
industry?
3 Does the system have multi-host, multi-emulation capability?
4 Does the system have emulation to provide you with plug and run capabilities?
5 Is emulation conducted at the network controller or at the terminal, resulting in which data
throughput?
6 Does the system provide a multi-channel cellular switching for seamless, unrestricted move-
ment?

Going into the details of the radio frequency integration into your network, you should answer
to the following questions:
1 Spread Spectrum or Narrow Band?
2 Ethernet or Token Ring?
3 Is the radio frequency site survey already done? Is there any risk of dead spots?
4 How many controllers, antennas and terminals (mobile and hand held)?
5 Which type of scanners are being used? Which range of laser [ex. 85cm (SR short) 162 cm
(LR long)]?
6 Wire or radio connection (cordless) or both? Max length of wire used?
7 Which size of battery and life of battery?
8 Could any problem arise with electrical interference?
9 What is reliability and availability of the system?
10 What type of barcodes being used? Availability of different sizes and types of labels?
11 How will be organized the training? How will be handled the validation?

6.9.4.Major suppliers on the market used in PMI factories

Teklogix
Teklogix is a provider of industrial wireless data communication systems, integration services,
and product support and maintenance for customers throughout the world, in particular in Eu-
rope and North America. Currently, there are more than 6,000 Teklogix systems installed in 50
countries. The company has 38 sales and support offices and 26 independent distributors
throughout North America, Europe, Asia, Australia, the Middle East and South and Latin Ameri-
ca. Teklogix is a certified software partner of SAP AG.
PM USA in Richmond, PM Kuban in Krasnodar are the major sites with Teklogix radio frequency
solutions.

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LXE
As a wholly owned subsidiary of EMS Technologies, LXE is providing real-time data collection
and communication solutions to major companies world-wide. The Company has high capital
on its own internal resources and advanced research and development. This has allowed LXE
to provide superior wireless communication solutions across the complete logistics supply
chain, and moved LXE to the forefront as a pre-eminent source of products and services for
Wireless Data Networks and Systems Integration. LXE is a certified software partner of SAP
AG.
PM Belgium in BoZ is the major site with LXE radio frequency solutions.

Symbol
Symbol Technologies, Inc., a manufacturer of bar code-driven data transaction systems, is en-
gaged in the design, manufacture and marketing of bar code reading equipment, hand-held
computers and radio frequency (RF) data communication systems. Symbol is the only corpora-
tion in its industry with in-house technology for the design and manufacture of bar code scanning
products, hand-held computers and RF data communications systems. Symbol develops,
manufactures, sells and services one-dimensional and two-dimensional bar code scanning
products that principally employ laser technology to read data encoded in bar code symbols. The
Company’s bar code scanning equipment is compatible with a wide variety of data collection sys-
tems, including computers, electronic cash registers and portable data collection devices.
PMI Sales and Distribution centres in Europe adopted Symbol radio frequency solutions.

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6.10. GLOSSARY

ABC ANALYSIS
Procedure for determining three-part sequences in
order of importance on the basis of quantity/value
ratio. Values are, for example, stock turnover,
throughput frequency, weight or volume. The re-
sulting 20/80 principle signifies that 20 % of articles
account for 80 % of turnover (A-articles = fast mov-
ing), 30 % of articles (B-articles = medium moving)
create 15 % turnover and 50 % of articles (C-ar-
ticles = slow moving) 5 % turnover. ABC analyses
help to divide article ranges into economic order
picking groups.

Figure 143 : example of an ABC

analysis

AC
After Cut (Flavoring). Gives to each brand its unique flavor characteristics.

AGV
Automatically guided vehicle. Computer au-
tomatic materials flow system with driver-
less trucks as operational component.

Figure 144 : AGV design with on-board

computer and keyboard for entering han-
dling and travel orders.

AMAO
The AMAO (Assumed Maximum Area of Operation) is the maximum area where sprinklers will
operate in case of fire. The shape of an AMAO is rectangular or square.

BBS
Basic Blended Strip. It is a pre-processed tobacco (raw tobaccos, reconstituted leaf) including
casing/flavors used with a simplified Primary. Stored in C48 boxes.

BUBD
Best Used Before Date.

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BCT
Box Crush Test.
Determines a material strength by gradually increasing the pressure on the test surface until it
collapses.

C48
Telescopic cardboard box used mainly as tobacco packaging.

CF
Cut Filler. Ready to use tobacco for cigarette production.

CLS
Corporate Leaf System.

COMBINED CYCLE (double cycle)

Efficient use of industrial trucks in a warehouse. An empty truck moves into the transfer station,
picks up the pallet, transports it and deposits it at a specific storage location. The truck then col-
lects another pallet which it takes to goods-out, before returning to the starting point of the travel
cycle.

COMPARTMENT END STOP

Horizontal metallic section, parallel to the racking level, intended to hold the pallet back in case
of a false manoeuvre of the forklift.

DRIVERLESS INDUSTRIAL TRUCKS

Floor-bound trucks with integral drive motor which follows a given travel route without operative
(driver). The steering can be controlled with or without guide wire. Guide wire versions are me-
chanical guidance, optical and inductive (high frequency alternating current) guidance which all
require floor installation. The cost involved in floor installations brought about studies to find a
technological solution for a non-wire guidance system.

EAN
European Article Numbering.

ECT
Edge Crush Test.
Determines the stiffness of corrugated board by compressing a small section of board standing
or its edge until it fails. The load at failure is known as the compression strength.

EDI
Electronic Data Interchange.
A real time communication system between the factory, its suppliers and its clients. GEN code
labelling on the items gives standard messages all through the customer supplying chain.

END ACCESS LADDER

Ladder on the end of the racking and therefore in the circulation alley.

ESFR
Early Suppression Fast Response. High pressure sprinkler system that avoids having fire
protection piping in the racks.

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ET (NA)
Expanded Tobacco (No Ammonia). Pre-processed tobacco.

FAST, MEDIUM, SLOW MOVING

Fast moving articles = high turnover articles = A-articles.
Medium moving articles = medium turnover articles = B-articles.
Slow moving articles = low turnover articles = C-articles.

FEFO
First expired, first out.

FG
Finished Goods. Cigarettes packed into shipping cases.

FIFO
First in, first out. Goods deposited first will automatically be retrieved first. Continuous racking
automatically complies with the FIFO principle, but in other racking systems, organizational con-
ditions must be met before the FIFO principle can be realized.

FLT
Fork Lift Truck.

FMS
Factory Management System.

FREE FORK LIFT

The height to which load pick-up device can
move upwards without altering the closed
height of the mast (h5).
h1: closed height
h2: standard free lift
h3: lift height
h4: extended mast height
h5: free fork lift

Figure 145 : fork lift

HBW
High Bay Warehouse.

HVAC
Heating, Ventilation and Air Conditioning

HHD
Hogshead

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6. APPENDIX

Guidelines for Material Storage & Handling in the Cigarette Industry

INVENTORY
Operation that allows to figure the exact number of items in the warehouse. This operation can
also establish the storage locations.

ITEM (article)
The smallest size represented in any product range. The item will define the size, volume, color,
conditioning, label language or anything that can differentiate two objects. The same product in
three different package sizes will constitute three different items.

IS
Improved stem. Pre-processed stems.

JUST IN TIME
Availability strategy of company logistics. Materials or goods are made available for processing
or delivery without intermediate storage.

KAIZEN
Continuous improvement philosophy and method.

KNEE SUPPORT
Pier table on the end of the racking and meant to place a pallet temporarily before it is retrieved
by a forklift.

LIFO
Last in, first out.

LPP
Leaf purchasing plan.

LTR
Leaf Tobacco Reconstituted.

MRP
Material requirement planning.

NTM
Non-Tobacco Materials.

ORDER PICKING
Assembly of specific sub-quantities from an available total quantity as per specified requirement
information.

PC
Pre Cut (Casing). Water based solution containing humectants.

PERPETUAL INVENTORY
This type of inventory is the result of real time stock data. This can only be achieved with a thor-
oughly reliable computerized system. It avoids any physical movement of men or items.

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 6. APPENDIX

Guidelines for Material Storage & Handling in the Cigarette Industry

PIPO
Number of Pallets In and Pallets Out.

PHYSICAL INVENTORY
Inventory where the storekeeper checks visually the stock in hand.

QA
Quality Assurance.

QUARANTINE
Status of a reference which is not to be touched before favorable results of analysis.

PCIS
Production Control Information System.

RACKING COMPARTMENT
Space between two racking uprights, limited in height by the next racking level. Dimensions are
dependent on the loading aid used and the height of the unit load carried, the method of stacking
(crosswise or lengthways), the safety distance and the racking compartment’s loading capacity.

RDT
Radio Data Terminal. Allows direct wireless communication between operators in the ware-
house or factory and the controlling computer system.

RECALL
Operation launched to retrieve articles to the warehouse for various reasons (eg defect discov-
ered after shipment).

RO/RO
Roll-on/roll-off loading goods onto ships in road trailers or semitrailers.

SALE UNIT
Basic article packaging.

SEASONAL VARIATIONS
Property of a process that varies significantly according to hours, days, weeks or months.

SINGLE USE PALLET

Cheap and often poor quality pallet which is only to be used once. Proscribe in automatic or high
rack storage.

SIMPLE CYCLE (single cycle)

Closed travel cycle in either the retrieval or depositing cycle. The cycle starts at the pick-up and
deposit station and consists of one empty and one loaded run.

SKU (Storage keeping unit)

A common term for a unique numeric identifier, used most commonly in online business to refer
to a specific product in inventory or in a catalogue.

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6. APPENDIX

Guidelines for Material Storage & Handling in the Cigarette Industry

STACK PALLET
Pallet which will normally never leave the warehouse it has be assigned to.

STOCK MANAGEMENT
Stock management defines what has to be in the warehouse and valorizes it.

STOCK PICKER (order picking stacker)

Stacker with rising operator platform used for order picking as well as for the storage and retrieval
of pallets. The rising operator platform constructed as a driver’s cabin is integrated with the load
pick-up device in the mast section.

STOCK UNIT
Article packaging in the warehouse. An article can be packed in many ways: pallet, case, carton,
sale unit.

STORE MANAGEMENT
Store management concerns physical flows of items in the warehouse: storage location, order
picking, etc.

SUPPORTING BEAM
Horizontal beam supporting the pallet in the racking level.

TRACKING
Aptitude to trail a product and reconstitute its history: path, passage dates, concerned interven-
ing parties, etc.

WMS
Warehouse Management System.

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 Guidelines for Material Storage & Handling in the Cigarette Industry

CHAPTER 7.
REFERENCES
REF PMI TITLE AUTHOR DATE OF
NO METHOD NO RELEASE

1 095 LIST OF NON CONFORMING MATERIAL PARAMETERS EITHER AT THE WAREHOUSE, LABORATORY PMI OPERATIONS-CQA -----
OR ON THE PRODUCTION FLOOR

2 111 DETERMINATION OF THE FLASH POINT BY THE AUTOMATED FLASH POINT TESTER PMI OPERATIONS-CQA -----

3 155 INSPECTION OF LIQUID BULK DELIVERIES PMI OPERATIONS-CQA -----

4 365 EXTENSION OF ”BEST USED BEFORE DATE” FOR FINISHED PRODUCT PPMI OPERATIONS-CQA -----

5 716 STORAGE AND HANDLING OF MENTHOLATED INNER LINER PMI OPERATIONS-CQA -----

6 751 PHOSPHINE FUMIGATION OF TOBACCO PMI STANDARD OPERATION PROCEDURE PMI OPERATIONS-LEAF -----

7 752 MANAGING INSECT PESTS OF PROCESSED TOBACCO PMI OPERATIONS-LEAF -----

8 753 POST-HARVEST TOBACCO INFESTATION CONTROL PMI OPERATIONS-LEAF -----

9 754 KEY DETERMINATION FOR MOTHS ATTRACTED TO STORGARD PHEROMONE TRAPS PMI OPERATIONS-LEAF -----

10 755 POST-HARVEST TOBACCO, INFESTATION PREVENTION: BRIEF INSTRUCTIONS FOR USING PHERO- PMI OPERATIONS-LEAF -----
MONE TRAPS

11 756 POST-HARVEST TOBACCO, INFESTATION PREVENTION: PREVENTIVE SANITATION, GENERAL PMI OPERATIONS-LEAF -----
RECOMMENDATIONS

12 757 POST-HARVEST TOBACCO, INFESTATION PREVENTION: IN TRANSIT MONITORING OF TOBACCO PMI OPERATIONS-LEAF -----
WITH PHEROMONE TRAPS

13 777 DIRECT MATERIALS PALLET AND ITEM IDENTIFICATION LABEL SPECIFICATION PMI OPERATIONS-PACKAGING -----

14 833 FINISHED GOODS WAREHOUSE, MINIMUM QUALITY REQUIREMENTS (VALID FOR INTERNAL AND PMI OPERATIONS-CQA -----
EXTERNAL/CONTRACTED WAREHOUSES)

15 834 STORAGE OF TOBACCO AND DIRECT INCOMING MATERIALS (FOR PMI & TPM, INTERNAL USE ONLY PMI OPERATIONS-CQA -----
- NOT FOR DISTRIBUTION)

16 782 GENERAL SPECIFICATIONS FOR TOBACCO INGREDIENTS, FILTER ADDITIVES AND ADHESIVES PMI OPERATIONS-CQA -----

17 ----- PM USA - ENVIRONMENTAL HEALTH & SAFETY-POLICY & PROCEDURE JAN 1995

18 ----- MATERIAL SAFETY DATA SHEETS (MSDS) -----

19 ----- LIFT TRUCK SAFETY AND OPERATIONAL OVERVIEW PM TECHNICAL TRAINING

CENTRE, VIRGINIA

7-1 PMI Engineering - 2005

 7. REFERENCES
Guidelines for Material Storage & Handling in the Cigarette Industry

REF PMI TITLE AUTHOR DATE OF

NO METHOD NO RELEASE

20 ----- PM USA GENERAL PACKAGING SPECIFICATIONS PM USA -----

21 ----- FLAMMABLE AND COMBUSTIBLE LIQUIDS STORAGE CODE - NFPA 30 NFPA 2003

22 ----- ENTREPÔTS ET MAGASINS; TOUT CE QU’IL FAUT SAVOIR POUR CONCEVOIR UNE UNITÉ DE MICHEL ROUX 3ME ÉDITION
STOCKAGE EDITIONS D’ORGANISATION 04.2003

23 ----- EMPFEHLUNG 206.4. PLANNUNG UND PROJEKTIERUNG VON WARENUMSCHLAGERAMPEN SCHWEIZERISCHE GESELL- DEC. 1999
SCHAFT FÜR LOGISTIK (SGL)

24 ----- LIFT TRUCK SAFETY AND OPERATIONAL OVERVIEW

25 ----- PMI EHS STANDARDS ON “FORKLIFTS”, OHS 3.1

26 ----- LE TRAVAIL EN SECURITE - HTTP://WWW.SUVA.CH/FR/HOME/SUVAPRO.HTM SUVA- CAISSE NATIONALE

SUISSE D’ASSURANCE EN
CAS D’ACCIDENT

27 ----- WAREHOUSE MANAGEMENT SYSTEM SPECIFICATIONS OWL & PMI ENGINEERING MAY 1997

28 ----- STUDY OF CUT FILLER ALTERNATIVES PMI ENGINEERING MAY 2000

29 ----- GUIDELINES FOR WASTE MANAGEMENT IN TOBACCO FACTORIES PMI ENGINEERING DEC. 2003

30 ----- LES DÉCHETS INDUSTRIELS DE PMP SA - TRAVAIL DE DIPLÔME PMPSA JUNE 2001

31 ----- BASIC GUIDELINES FOR WAREHOUSE BUILDING (DRAFT) PMI ENGINEERING SEPTEMBER
2004

32 ----- ADJUSTABLE BEAM PALLET RACKING TOLERANCE, DEFORMATIONS & CLEARANCE (97) SEMA/FEM 10.03.2001

33 ----- CODE OF PRACTICE FOR THE DESIGN OF STATIC STEEL PALLET RACKING SEMA/FEM 10.02.2002

34 ----- GUIDELINES FOR SPECIFIERS OF STATIC STEEL RACKING AND SHELVING FEM (FÉDÉRATION EURO- 10.02.2004
PÉENNE DE LA MANUTEN-
TION)

35 ----- GUIDELINES FOR THE SAFE USE OF STATIC STEEL RACKING AND SHELVING FEM 2001

36 ----- PMI EHS MANAGEMENT SYSTEM MANUAL PM OPERATIONS/EHS

HTTP://WWW.INTRANET.PMI/HQ/DEPTS/OP/FG/EHS/CONTENT/TOOLS/EHS_MANAGEMENTSYSTEM-
MANUAL.ASPX

7-2 PMI Engineering - 2005

 7. REFERENCES
Guidelines for Material Storage & Handling in the Cigarette Industry

REF PMI TITLE AUTHOR DATE OF

NO METHOD NO RELEASE

37 ----- HTTP://WWW.INTRANET.PMI/HQ/DEPTS/OP/FG/ENGI/CONTENT/02_FUNCTIONALGROUPS/ENGINEER- PMI ENGINEERING

ING_SERVICES/EHS/EHS

38 ----- WWW.INVENTORYOPS.COM INVENTORY OPERATIONS

SOURCE FOR INFORMATION ON INVENTORY MANAGEMENT AND WAREHOUSE OPERATIONS CONSULTING L.L.C.

39 ----- WWW.TIS-GDV.DE: GESAMTVERBAND DER

TRANPORT INFORMATION SERVICE DEUTSCHEN VERSICHER-
UNGSWIRTSCHAFT E.V. GDV

40 ----- SUVA - CAISSE NATIONALE SUISSE D’ASSURANCE EN CAS D’ACCIDENT -SÉCURITÉ AU TRAVAIL SUVA
HTTP://WWW.SUVA.CH/FR/HOME/SUVAPRO/FACHTHEMEN_UEBERSICHT/HANDELN_SIE.HTM

41 ----- A GUIDE TO THE CODE OF PRACTICE & GUIDELINES FOR RIDER OPERATED TRUCKS NIFAST (IRELAND) 05.2002
HTTP://WWW.NIFAST.IE/PDFS/COP%20GUIDELINES.DOC

42 ----- ‘BASIC GUIDELINES FOR WAREHOUSE BUILDING, SCOPE OF WORKS BUILDING & PLANT SERVICES’ PMI ENGINEERING 2005

43 ----- DIN VDE NORMS 0510

44 LA_SR_10 LEAF QUALITY INSPECTION AREAS, SAMPLE & SMOKING ROOMS PMI LEAF DEPARTMENT

45 ----- PMI GENERAL MATERIAL SPECIFICATIONS : C48/C96 CARTONS PMI LAUSANNE 09.2003

46 ----- PMI STORAGE SAFETY TOOLKIT AT

HTTP://WWW.INTRANET.PMI/HQ/DEPTS/OP/FG/EHS/CONTENT/HOMEPAGE EHS.ASPX

7-3 PMI Engineering - 2005

 7. REFERENCES
Guidelines for Material Storage & Handling in the Cigarette Industry

7-4 PMI Engineering - 2005

 INDEX OF FIGURES

Guidelines for Material Storage & Handling in the Cigarette Industry

INDEX OF FIGURES

FIGURE 1 : EVERY DEPARTMENT IS INVOLVED IN LOGISTICS 1-2

FIGURE 2 : PMI FACTORY LOGISTICS 1-3
FIGURE 3: ORIENTAL TOBACCO IN BALES 2-2
FIGURE 4: C48/PS90 CARDBOARD BOX 2-2
FIGURE 5: CP99 CARDBOARD BOX 2-2
FIGURE 6: C90 CARDBOARD BOX 2-3
FIGURE 7: C90 CARDBOARD BOX 2-3
FIGURE 8: PM80 CARTON 2-4
FIGURE 9: HOGSHEADS 2-4
FIGURE 10: TOBACCO BALES PALLETIZING 2-5
FIGURE 11: TOBACCO BALES IN INTAINERS 2-5
FIGURE 12: C48 PALLETIZING 2-6
FIGURE 13: NTM CODE NUMBERS 2-7
FIGURE 14 : NTM LIST AND DESCRIPTION FOR MLB KS SOFT 2-9
FIGURE 15 : NTM LIST AND DESCRIPTION FOR MLB KS BOX 2-10
FIGURE 16: FINISHED GOODS PACKAGING 10’000 CIG. SHIPPING CASE 2-11
FIGURE 17: KS-BOX-DISPLAY CARTON PALLETIZING (800 X 1200 PALLET) 2-12
FIGURE 18: KS-BOX-DISPLAY CARTON PALLETIZING (1000 X 1200 PALLET) 2-13
FIGURE 19: KS-SOFT-DISPLAY CARTON PALLETIZING (800 X 1200 PALLET) 2-13
FIGURE 20: KS-SOFT-DISPLAY CARTON PALLETIZING (1000 X 1200 PALLET) 2-14
FIGURE 21: 100’S-BOX-DISPLAY CARTON PALLETIZING (800 X 1200 PALLET) 2-14
FIGURE 22: 100’S-SOFT-DISPLAY CARTON PALLETIZING (800 X 1200 PALLET) 2-15
FIGURE 23: 100’S-SOFT-DISPLAY CARTON PALLETIZING (1000 X 1200 PALLET) 2-15
FIGURE 24: 100’S-BOX-DISPLAY CARTON PALLETIZING (1000 X 1200 PALLET) 2-16
FIGURE 28: 800 X 1200 (EURO PALLETS) AND 1000 X 1200 (INDUSTRIAL PALLETS) 2-17
FIGURE 29: ROAD TRAIN 2-18
FIGURE 30: SEMITRAILER 2-18
FIGURE 31: DESCRIPTIONS FOR LORRIES IN THE EU 2-18
FIGURE 32: LOADING POTENTIAL OF SEMITRAILER 2-19
FIGURE 33: LOADING OF A TRAILER TRUCK AT THE PMP SA, NEUCHÂTEL, SWITZERLAND 2-20
FIGURE 34: LOADING PATTERN OF A 40’CONTAINER _LOADING CAPACITY : 1000 SHIPPING CASES 2-21
FIGURE 35: 40’ CONTAINER LOADED WITH SHIPPING CASES 2-21
FIGURE 36: 20 FT CONTAINER 2-22
FIGURE 37: 40 FT CONTAINER 2-22
FIGURE 38: DIMENSIONS OF IC POOL CONTAINERS 2-22
FIGURE 39: LOADING PLAN FOR C48 CARTONS INTO 20 AND 40 FT CONTAINERS 2-22
FIGURE 40: WAREHOUSE LOGISTICS 3-1
FIGURE 41: BULK STACKING 3-2
FIGURE 42: MEDIUM HIGH RACK STORAGE 3-3
FIGURE 43: DRIVE-IN RACKS 3-4
FIGURE 44: SLIDE-IN RACKS 3-4
FIGURE 45: HIGH-RACK STORAGE AND HI-RACK STACKER 3-5
FIGURE 46: HIGH-RACK STORAGE AND STACKER CRANE 3-5
FIGURE 47: DYNAMIC FLOW-THROUGH STORAGE 3-6
FIGURE 48: MOVEABLE RACKS 3-6
FIGURE 49: RADIOSHUTTLE HIGH-DENSITY STORAGE SYSTEMS 3-7
FIGURE 50: INTAINERS 3-7

PMI Engineering - 2005 I

 INDEX OF FIGURES

Guidelines for Material Storage & Handling in the Cigarette Industry

FIGURE 51: PUSH BACK RACK 3-8

FIGURE 52 : C90 STACKING 3-10
FIGURE 53: RAW TOBACCO IN C48 STORED ON 8 LEVELS (5+3) 3-11
FIGURE 54: RAW TOBACCO IN C48 STORED ON 8 LEVELS (6+2) 3-11
FIGURE 55: HOGSHEADS STORED UP TO 5 HIGH 3-11
FIGURE 56 : RAW TOBACCO IN BALES STORED IN STANDARD RACKING 3-12
FIGURE 57: BULK STACKING STORAGE OF NTMS 3-13
FIGURE 58: RACKING STORAGE OF NTMS 3-13
FIGURE 59: BULK STACKING OF FINISHED GOODS 3-14
FIGURE 60: BULK STACKING STORAGE OF FG 3-14
FIGURE 61: RACKING STORAGE OF FG 3-15
FIGURE 62: MATERIAL FLOWS EXAMPLE 3-15
FIGURE 63: RAW TOBACCO LEAF FLOW IN WAREHOUSE 3-16
FIGURE 64: NTM FLOW IN WAREHOUSE 3-17
FIGURE 65: FG FLOW IN WAREHOUSE 3-18
FIGURE 66: ORDER PICKING 3-19
FIGURE 67: PALLET TRUCKS 3-19
FIGURE 68: PALLET STACKERS 3-19
FIGURE 69: COUNTERBALANCED FORKLIFTS 3-20
FIGURE 70: REACH TRUCK 3-20
FIGURE 71: HIGH RACK STACKER 3-20
FIGURE 72: STACKER CRANE 3-21
FIGURE 73: TRACTOR 3-21
FIGURE 74: ORDER PICKERS 3-21
FIGURE 75: AUTOMATICALLY GUIDED VEHICLES FOR CARTON/PALLET HANDLING 3-22
FIGURE 76: RADIOSHUTTLE 3-22
FIGURE 77: HEAVY-DUTY TOW TRACTOR FOR INTERNAL TRAMS AND FLOATS 3-22
FIGURE 78:TRAIN OF HANDPALLET TRUCKS FOR HANDLING OF FIVE PALLETS PER TRANSPORT 3-23
FIGURE 79: CHOOSING AN INTERNAL HANDLING VEHICLE 3-23
FIGURE 80: SITUATION TO AVOID IN A RACKING SYSTEM 3-26
FIGURE 81: ADJUSTABLE PALLET RACKING COMPONENTS 3-27
FIGURE 82: DRIVE-IN RACKING COMPONENTS 3-27
FIGURE 83: ANTI-SEISMIC RACKING EQUIPMENT 3-28
FIGURE 84: ANTI-SEISMIC RACKING EQUIPMENT 3-29
FIGURE 85: C48 IN BLOCK STORAGE (8 LEVELS) 3-29
FIGURE 86: C48 WITH EXPANDED TOBACCO IN DRIVE-IN RACKS 3-30
FIGURE 87: BALES IN STANDARD RACKS 3-30
FIGURE 88: 4 LEVELS IN STANDARD RACKS 3-30
FIGURE 89: 6 LEVELS IN STANDARD RACKS 3-30
FIGURE 90: 3 LEVELS IN STANDARD RACKS 3-31
FIGURE 91: STORAGE IN DRIVE-IN RACKS 3-31
FIGURE 92: TYPES OF WAREHOUSES 3-35
FIGURE 93: COMBINATIONS OF TYPES OF WAREHOUSES 3-36
FIGURE 94: RELATIVE INVESTMENT FOR DIFFERENT WAREHOUSE COMBINATIONS AS A FUNCTION OF
PRODUCTION VOLUME 3-36
FIGURE 95: LOW COST MODULAR WAREHOUSE 3-37
FIGURE 96: LMW MODULES 3-37
FIGURE 97: APPROXIMATE SURFACE REQUIREMENT FOR A 10 BIO CIG./YEAR FACTORY 3-38
FIGURE 98: RATIOS : PALLET PLACES FLOOR/M2 3-38

II PMI Engineering - 2005

 INDEX OF FIGURES

Guidelines for Material Storage & Handling in the Cigarette Industry

FIGURE 99: GERMAN STANDARD - DIN 18 202 3-40

FIGURE 100: SMALL LOADS (<100 KG FOR HAND PALLET TRUCKS, < 250 KG FOR OTHERS) 3-41
FIGURE 101: HEAVY LOADS (>100 KG FOR HAND PALLET TRUCKS, > 250 KG FOR OTHERS) 3-41
FIGURE 102: SLOPE SCHEME 3-42
FIGURE 103: CORN EAR, PERPENDICULAR LOADING DOCKS, AND DOCK SHELTER 3-44
FIGURE 104: FLAT RAILWAY TRUCK WAS MODIFIED TO LOAD CONTAINER ON TRAIN. 3-45
FIGURE 105: EXAMPLE OF LOADING SYSTEM FOR CONTAINERS ON TRAIN (HAFA SYSTEM) 3-45
FIGURE 106: SIDING ALUMINIUM DOCK PLATE FOR WAGON LOADING (HAFA SYSTEM) 3-46
FIGURE 107: MECHANICAL DOCK LEVELLER SYSTEM (HAFA SYSTEM) 3-46
FIGURE 108: HYDRAULIC DOCK LEVELLER SYSTEM (HAFA SYSTEM) 3-47
FIGURE 109: MANUAL DOCK LEVELLER SYSTEM (HAFA SYSTEM) 3-47
FIGURE 110: DOCK SHELTER (HAFA SYSTEM) 3-48
FIGURE 111: MOBILE LOADING PLATFORM (HAFA SYSTEM) 3-48
FIGURE 112: TRUCK WHEEL LOCK SYSTEM 3-49
FIGURE 113: AUTOMATIC TRUCK LOADING & UNLOADING 3-49
FIGURE 114: AUTOMATIC TRUCK LOADING & UNLOADING IN PHILSA (TURKEY) 3-50
FIGURE 115: MINIMUM REQUIREMENTS 3-51
FIGURE 116: EXAMPLE OF LEAF SAMPLE INSPECTION ROOM (PMI HQ - LAUSANNE) 3-52
FIGURE 117: EXAMPLE OF MOBILE LIGHT UNIT FOR LEAF INSPECTIONS/RECOGNITIONS 3-53
FIGURE 118 : STACK GOODS PROPERLY TO AVOID DAMAGE 3-62
FIGURE 119 : USE THE RIGHT TOOL (EX. TO ROTATE BALES OF TOW) 3-62
FIGURE 120 : USE THE RIGHT TOOL (TO REACH REQUIRED HEIGHT) 3-62
FIGURE 121 : CLEAR OUT DEBRIS REGULARLY AND AVOID POTENTIAL FIRE SOURCES 3-62
FIGURE 122 : STORE GOODS ON PALLETS AND ABIDE BY MAXIMUM LAYERS OF STORAGE 3-63
FIGURE 123: SPLITTING STATION 4-2
FIGURE 124: TOBACCO UNIT SPLITTING 4-3
FIGURE 125: HOGSHEAD MANUAL OPENING 4-3
FIGURE 126: PRE-BLEND & INFEED AREA IN PM PHILIPPINES 4-5
FIGURE 127: ORGANIZATION OF THE AREA (PROPOSAL) 4-6
FIGURE 128: CF BINS 4-7
FIGURE 129: CF AREA IN KLAIPEDA 4-8
FIGURE 130: LAYOUT OF ST-PETERSBURG FACTORY 4-9
FIGURE 131: FULL KITCHEN LAYOUT AT PMPSA 4-10
FIGURE 132: PMP SA KITCHEN BULK DELIVERY 4-10
FIGURE 133: NTM SUPPLY WITH THT CONCEPT 4-11
FIGURE 134: KITTING PALLET IN PMPSA 4-12
FIGURE 135: KITTING TROLLEY IN PM IZHORA 4-13
FIGURE 136 : WMS 5-3
FIGURE 137 : 800 X 1200 PALLET 6-41
FIGURE 138 : 1000 X 1200 PALLET 6-41
FIGURE 139 : DESIGN RACKS ACCORDING TO PALLET SIZE 6-43
FIGURE 140 : EXAMPLE OF WMS HARDWARE STRUCTURE IMPLEMENTED IN PM KUBAN (JAN 2000) 6-53
FIGURE 141 : RADIO FREQUENCY DATA COMMUNICATION IN NARROW BAND 6-55
FIGURE 142 : RADIO FREQUENCY DATA COMMUNICATION IN SS 6-56
FIGURE 143 : EXAMPLE OF AN ABC ANALYSIS 6-61
FIGURE 144 : AGV DESIGN WITH ON-BOARD COMPUTER AND KEYBOARD FOR ENTERING HANDLING AND
TRAVEL ORDERS. 6-61
FIGURE 145 : FORK LIFT 6-63

PMI Engineering - 2005 III

INDEX OF FIGURES

Guidelines for Material Storage & Handling in the Cigarette Industry

IV PMI Engineering - 2005