Already on ArticleSlash?

Forgot your password? Sign Up

How Operational Excellence saved a Business during recession? - A Case Study

Brijesh Singha
 


Visitors: 358
 5 votes

The slow down saw business pressing panic button and also hurrying to cut prices throughout the board- promotions, people, traveling and also client interactions. As an alternative, Coimabtore-based India's top fabric equipment producer, Lakshmi Device functions, made a decision to concentrate on operational excellence to obtain a strategic side in the market. “The funding products sectors were the first to really feel the impact of downturn and that we felt 18-months earlier, " LMW CFO R Rajendran informed ET. He stated rather than going into a panic method, the firm decided to take advantage of the chance to develop internal health and wellness. As part of this, it up its concentrate on functional quality (OE) programme. Focusing on ‘leaner, quicker and reliable’ technique to attain business quality, the firm in tie-up with Kaizen Institute India as consulting companion, introduced a global programme, Lakshmi Lean Excellence Acceleration Programme (LLEAP). The Kaizen institute aided the business to recognize and do away with all blockages in implementation of a procedure. It mostly worked with two items namely carding and ring framework. “They offered us support and created internal experience to ensure that we might carry out the exact same in other divisions, " Mr Rajendran brought in. Kaizen institute's supervisor Jayanth Murthy stated the determining scale for success in any kind of making firm is the degree of supply, since supply is the largest symptom of waste. “Our primary goal was to move ‘roofing high’ supply to ‘head tall’ and then to ‘below eye degree, ‘" he brought in. Adhering to execution of LLEAP, the business could see a noticeable change in layout of equipment and also almost 20 % of factory area has been saved for future development. “The circulation is being dealt with and also the stock has actually additionally been reduced by around 25 %, " Mr Rajendran brought in. In worth terms, he stated, the stock holding at any kind of factor of time dropped to around Rs 90 crore from the typical Rs 120 crore. “When supply goes down, working resources demands decline and so bottom-line decreases, " Mr Murthy stated. As a result of economic downturn, the internet sales of LMW lost to Rs 1375 crore in 2008-09 from Rs 2205 crore in 2007-08. “When there was a lengthy spell long economic downturn in 1998-2003, we faced reduced demand yet no cash money crunch. The latest economic downturn decreased the worldwide buying power and it contributed to the troubles of making business, " Mr Rajendran claimed. The ability use of the firm touched as reduced as 40 % but now with prospects of revival, the order book has actually improved leading to capacity utilization of about 60 %. “We have 3450 long-term employees which includes team as well as workers. Every person's time, energies and emphasis during the slowdown was transformed towards LLEAP. It helped us turn leaner and come to be quality as well as price consciousness. We additionally used that time to create new items in the alreadying existing line, " Mr Rajendran stated. The Kaizen institute promoted the magic of one-thirds concept, where, leading administration, workers and also tools were divided right into 3 components. “While most administrations started with tools, since 82 % of the firm's time revolves around using devices, the LMW top administration was aggressive enough to recognize the demands of LLEAP, " claimed Mr Murthy. He stated, the top administration settled to embrace and also drive OE by welcoming the philosophy of almost everywhere, every person, daily Kaizen for continued enhancement. “They reviewed, checked, assisted and was the driving force behind the success of the programme, " he added.

The slow down saw business pressing panic button and also hurrying to cut prices throughout the board- promotions, people, traveling and also client interactions. As an alternative, Coimabtore-based India's top fabric equipment producer, Lakshmi Device functions, made a decision to concentrate on operational excellence to obtain a strategic side in the market .

"The funding products sectors were the first to really feel the impact of downturn and that we felt 18-months earlier, " LMW CFO R Rajendran informed ET. He stated rather than going into a panic method, the firm decided to take advantage of the chance to develop internal health and wellness. As part of this, it up its concentrate on functional quality (OE) programme.

Focusing on ‘leaner, quicker and reliable’ technique to attain business quality, the firm in tie-up with Kaizen Institute India as consulting companion, introduced a global programme, Lakshmi Lean Excellence Acceleration Programme (LLEAP).

The Kaizen institute aided the business to recognize and do away with all blockages in implementation of a procedure. It mostly worked with two items namely carding and ring framework. “They offered us support and created internal experience to ensure that we might carry out the exact same in other divisions, " Mr Rajendran brought in.
Kaizen institute's supervisor Jayanth Murthy stated the determining scale for success in any kind of making firm is the degree of supply, since supply is the largest symptom of waste. “Our primary goal was to move ‘roofing high’ supply to ‘head tall’ and then to ‘below eye degree, ‘" he brought in. Adhering to execution of LLEAP, the business could see a noticeable change in layout of equipment and also almost 20 % of factory area has been saved for future development. “The circulation is being dealt with and also the stock has actually additionally been reduced by around 25 %, " Mr Rajendran brought in.

In worth terms, he stated, the stock holding at any kind of factor of time dropped to around Rs 90 crore from the typical Rs 120 crore. “When supply goes down, working resources demands decline and so bottom-line decreases, " Mr Murthy stated.

As a result of economic downturn , the internet sales of LMW lost to Rs 1375 crore in 2008-09 from Rs 2205 crore in 2007-08. “When there was a lengthy spell long economic downturn in 1998-2003, we faced reduced demand yet no cash money crunch. The latest economic downturn decreased the worldwide buying power and it contributed to the troubles of making business, " Mr Rajendran claimed.

The ability use of the firm touched as reduced as 40 % but now with prospects of revival, the order book has actually improved leading to capacity utilization of about 60 %. “We have 3450 long-term employees which includes team as well as workers. Every person's time, energies and emphasis during the slowdown was transformed towards LLEAP. It helped us turn leaner and come to be quality as well as price consciousness. We additionally used that time to create new items in the alreadying existing line, " Mr Rajendran stated.

The Kaizen institute promoted the magic of one-thirds concept, where, leading administration, workers and also tools were divided right into 3 components. “While most administrations started with tools, since 82 % of the firm's time revolves around using devices, the LMW top administration was aggressive enough to recognize the demands of LLEAP, " claimed Mr Murthy.

He stated, the top administration settled to embrace and also drive OE by welcoming the philosophy of almost everywhere, every person, daily Kaizen for continued enhancement. “They reviewed, checked, assisted and was the driving force behind the success of the programme, " he added.


(1226)

Article Source:


 
Rate this Article: 
 
Car Sales 101 A Case Study
Rated 2.6 / 5
based on 5 votes
ArticleSlash

Related Articles:

Guidelines to Write a Case Study Assignment - Case Study Writing Services UK

by: Lucja Wiktor (September 02, 2015) 
(Reference and Education/Home Schooling)

The Right Tools Arent Enough, You Have to Plan For Operational Excellence

by: J Timothy Connor (June 17, 2008) 
(Business/Management)

Small Business Flexibility - My Own Case Study in International Business

by: Cindy King (September 15, 2008) 
(Business/International Business)

Your Own Business - A Case Study on Its Risks and Rewards

by: Wim Venter (September 22, 2008) 
(Business/Entrepreneurialism)

How to Go Green in Daily Business: A Case Study

by: Desiree Michels (November 29, 2017) 
(Business/Logistics)

Business Surveys - A Creative Success Case Study

by: Neil Walsh (April 27, 2008) 
(Business/Marketing)

Winter Sports Case Study: Choosing the Best Ski Case

by: Desiree Michels (February 20, 2017) 
(Insurance/Travel)

The University Of Illinois: A Study In Excellence

by: Jerry Coffey (March 24, 2010) 
(Reference and Education/College University)

Business Growth A Case Study on Good Vs Bad Growth

by: Wim Venter (June 22, 2008) 
(Business/Management)

Car Sales 101 A Case Study

by: Mark Tewart (July 02, 2008) 
(Business/Sales)