RenB Case Study
A manufacturing Company in Maharashtra facing Production Inefficiency was making losses for the last 2 years and its Growth was restricted as it had a 18% Fall in its turnover due to its Productivity, Efficiency and Capacity Utilisation issues.
Product Manufacture in the Food sector
The Brief given to Re-Engineering Business Solutions (RenB) was that the company wanted to improve its Production and Cost Efficiency in PHASE I and also achieve its Growth and Profit targets in Phase II
RenB scope included, creating a Production and Cost Efficiency Metric , and enabling cost efficiency in all areas by enabling the Best Production Practices and through a Process intervention to get cost efficiencies in Phase I and post this if there is satisfactory result then go for the Growth Strategy Program in Phase II.
Planned: 120 days to 150 days
TimeLine Actual: 200 Days
RenB started the Project a comprehensive Diagnostics Process using the RenB Diagnostic Framework to Understand the Lacunae in its current Production Practices. A Detailed Heat Map was generated which clearly defined the areas of Inefficiency productivity.
The Diagnostic Process threw up the areas of inefficiencies, especially with major lacunae seen in production Practices and Production Floor Management , there were also inefficiencies seen the entire Production Processes which was manual from Raw material stage to Packing stage including Inventory and Logistics.
Efficiency Show Stoppers
The efficiency Show Stoppers were as follows:
Production Controls Missing.
Quality Control at Raw material Receiving stage to Packaging Stage
Productivity issues due to production floor management.
The Project Implementation focussed on Quality Control and Productivity
- Quality Control SOP’s was defined for implementation based on TQM methodology.
- Checks and Balances in the Production Control areas with Production SOP’s.
- Productivity Measurements were defined and productivity Targets were assigned.
- Inventory best practices were implemented with Inventory control and visibility for decision support through an Inventory SOP.
- Raw material Purchase cost controls was implemented through a purchase process SOP being implemented.
- Production Supervisory methods were refined and implemented.
- Training the Production Staff on the SOPS was completed for implementation.
- Capacity Utilisation SOP with Visibility Metrics.
From NO HRD Policy and Process to Implementing 62 Key Policy and Process for People Management and Development, adapting the RenB HRD 3T Framework, made an immediate impact with the employees and better productivity was seen in 60 days.
SAAS based quick fix tools was implemented in the areas of
- Inventory Management
- Production Management
- Logistics Management
- Productivity Management
- Quality TQM
- Quality Audit
- RenB Diagnostics Framework
- RenB Research and Analytics Framework
- RenB Process Automation Framework
- RenB HRD 3T Framework
- RenB Productivity Mapping and Implementation Framework
The Company achieved a 38% Improvement in its Productivity and cost efficiency and savings accrued of 9%.
The client has shown confidence in awarding the Phase 2 of its Growth Project to RenB, having satisfied with the Phase 1 of Productivity and Cost efficiency program of RenB .
RenB Take on the Project
“Our biggest challenge was the change management and adoption of the processes by Client Team , this was overcome with constant onsite, offsite collaboration with the client team and when we finished the project, the client team did throw us a farewell dinner , that was a nice feeling”Anirudh .A –Lead associate , RenB
“The project was successful and the results speak for itself , my fear of the change Management due to implementation of Processes and acceptability by the senior staff was overcome with the way RenB Team handled the Change Management process by involving all the stakeholders and taking along the entire team throughout the implementation”Managing Director