Equipment Manufacturing Company
- One of the leading company of India engaged in construction equipment manufacturing since more than 45 years. They are mainly engaged in manufacturing of concrete mixture machines, man & material handling equipments. They have a strong reputation in India as well African countries.
- The dream of the director of this company is to become “Toyota of Construction Equipment Manufacturing Segment”. To achieve this dream he has consult Concept Business Excellence Pvt. Ltd. (CBEPL) as a mentor to achieve his ambition.
- As a improvement initiative partner we have carried out gap assessment of this company. We found high lead time of manufacturing, which results in low productivity. Due to low productivity other issues of high inventory at all the stages i.e. Raw Material, WIP and finished goods. This high inventory results in poor quality, blockage of cash flow, space crunch, dissatisfied customers, etc.
- Due to above issues employee dissatisfaction level was high, because there was always fire fighting situation in the company. All employees were busy but not productive. Hence to overcome this situation Operational Excellence journey road map is made by CBEPL to improve productivity, quality, delivery, morale, safety & to reduce cost of manufacturing. Top management was also involved to finalize the targets to achieve productivity, quality, inventory reduction, customer complain reduction, etc.
- For effective implementation of improvement initiatives entire organization’s improvement structure is formed. According to this structure Steering Committee, Senior member committee, coordinator, cross functional teams, etc. were formed.
- Based on the improvement projects trainings were provided to concern cross functional teams. Project execution handholding support was provided by CBEPL team.
Under this initiative following projects were executed;
- 5-S Goal: Improve Workplace & Employee Culture
- Kaizen Goal: Increase employee involvement in improvement activity
- Kanban Goal: Alignment of organizational goals with action plan
- SPF (Single Piece Flow) Goal: Organizational Stability
- VSM (Value Stream Mapping) Goal: Process Standardization
- Cycle Time Reduction Process waste elimination
Some of the key results of improvement initiative are as below;
- Workplace availability improved by 10%
- 20% reduction in Non-moving items
- More than 200 nos. of Kaizens were effectively implemented. These resulted in huge cost saving & boosting in employee morale
- Inventory turnover ratio improved from 5.94 to 12
- Stationary consumption cost is reduced by 53%
- Rework & Rejection is reduced from 81851 ppm to 310 ppm
- XX product assembly productivity is improved by 59%
- YY product assembly productivity is improved by 74%