Organization was operating at low profit margin, lower efficiency. The organization has called upon EBS Team to support them for improving their operational efficiency, which will help them to improve their profitability.
EBS Team has conducted 6 Days operational Assessment of the organization and identified several areas that were impacting their operational efficiency and profit.
Process Focus and Implementation
- Frequent product changeover was causing Extra tool change hours in turn leading to production loss
- Frequent changeover was causing higher setup change RM rejections
- Higher machine Breakdown causing Production loss (Poor Plant Maintenance)
- Higher Inventory of RM and FG
- Delay in realization of Payment or payment receivable was more than 50 Days
- Quality Standard was not robust throughout the process ,as no effective Quality management system was in place
Production Planning Process:
- Production planning process
- Maintenance Process
- Inventory management Process
- Payment Collection process
- Manufacturing Process
Organization did not have an effective production Planning Process. System established for daily, weekly and monthly review of customer orders. This helped in effective communication between RM stores and Production planning. With the support of Planvisage software production planning activities are carried out for optimization of production planning. Orders of different customers are grouped while making the production plan.
The Cell concept introduced and 42 machines divided in to 7 different product categories. This helped to avoid frequent Size change over. Effective Tooling management system established. Tool change monitoring system established, people were mentored on how to reduce the tool change over time .Daily production review meeting introduced to improve the communication between production, Planning and tooling department.
Preventive maintenance system introduced for the entire machine. Maintenance team were trained on effective breakdown analysis. Spare part management established to maintain optimum level of critical spares. 5S implemented to keep work area clean and tidy. Machine FMEA concept introduced for critical machines and exhaustive checkpoints are identified for conducting preventive maintenance.
Preventive maintenance provided significant reduction in breakdown and improved the performance of the machine.
Inventory Management Process:
Inventory management process is established. SCM –Plan visage software used to optimize the RM inventory, keeping the lead time of suppliers. Weekly Supplier schedule released to have better control over inventory. RM Stores and planning coordination improved through daily/weekly and monthly review
Payment Collection process:
Payment collection process established along with Customer relationship Management. Weekly Review system established for outstanding review. Customer communications improved and were informed about their dues and payment were collected by the respective CRM members.
Quality Management System:
Existing Quality management Systems re-defined and emphasis given more on customer focus and process approach. Incoming, in process and final Quality Assurance system are strengthened and people were made aware of the consequences of deviating from the requirements. Process FMEA and SPC system are introduced to identify the issues leading to poor Quality and effective preventive and detection control mechanism are established.
- Profit increase from 4.5 % to 13.65 %
- Payment Outstanding days reduced from 45 to 15 days
- RM Inventory reduced by 40%
- FG Inventory Reduced by 30%
- 78% reduction in Machine down time
- 80% reduction in Tool change time
- 68% reduction in Change over RM rejection
RM Rejection Data:
Tool Change Hours: