Manufacturing

SbMC

PRODUCTIVITY IMPROVEMENT LEADING TO PROFITABLE TURNAROUND FOR AUTO COMPONENT MANUFACTURER

Business Problem

Client is struggling with poor profitability, poor capacity utilisation and struggling to meet end Customer delivery schedule

What did we do?

  • Established levers for profitability– product volume mix, capacity utilisation, raw material cost, material yield, manpower cost and working capital cost
  • Launched focussed improvement projects on manpower cost, capacity utilisation & product mix

Methodology/ Tools used

Line balancing, SMED, OEE monitoring, Yield analysis and root cause analysis

Business Impact

  • Not meeting profitability targets
  • Not meeting client delivery schedules– risk of losing business
  • Not able to decide on capacity expansion as existing facility was not giving desired results

Results achieved

  • Capacity utilisation improved by ~ 19%
  • Wherever risk of missing the deadlines were found, alternate sources identified and risk mitigated
  • Manpower productivity improved by 21%
  • Material yield improved by 7.5%

The above results were achieved over a span of 4.5 months… Team on the ground were fully trained and equipped to horizontally deploy the learnings

SUPPLIER PROCESS STABILISATION FOR HEAVY ENGINEERING COMPANY

Business Problem

  • UK based heavy engineering manufacturer had identified Indian supplier for its newly to be launched product
  • But they were struggling to meet the launch date due to process instability and process scheduling @ supplier end

What did we do?

  • Thoroughly analysed the process and scientifically established the cycle times/ minimum batch quantity
  • Identified bottlenecks, established line capacity and arrived at realistic delivery schedule
  • Carried out process scheduling to meet the delivery targets

Methodology/ Tools used

Rough Cut Capacity planning (RCCP), Finite scheduling LPP model

Business Impact

  • Launch date of the product @ risk
  • All investment made to set up the line was @ risk
  • Possibility of de coupling with Indian supplier and shifting to UK based manufacturer

Results achieved

  • Good visibility on process completion internally as well as to end customer
  • Wherever risk of missing the deadlines were found, alternate sources identified and risk mitigated
  • Decisions were made on scientific data.
  • Better process visibility improved confidence level between supplier and the customer