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Driving business growth through Supply Chain practices
Hants Group
Wattala
Sri LankaAn ISO 9001:2008 certified company
Nelun Anthony
Hants GroupCompany Profile
• Year of Establishment – 1981
• No of employees - 220
• Major customers – Local/Exports
• Main products – Polyurethane foam mattresses/Expandable Polystyrene products
Our VisionTo be Excellent in everything we do
Our missionTo be a 1billion operation by 2017
• Enhance market share by 2017
• Evolve SC
• Diversification
• T &D
• Compliance
• Rewards night
• Enhance Profitability
• Enhance financial capability
• ISO 9001:2008
• Challenge National Awards
Internal Financial
Customer
ProductPeople
What is a supply chain
“As the economy changes, as the competition becomes more global,
it’s no longer company versus company but supply chain versus supply chain”
Harold Sirkin (VP, Boston Consulting Group)
InformationMaterial
FundsSupplierCustomer
Problem contents before implementation
High cost of production/distribution
Inter /cross functional departmental issues
Poor on timely delivery
High Inventory of FG
Loss opportunities
Objectives of setting up a one chain Supply Chain
By providing the merchandize at the right location at the right time at the right price and right quality.
JIT
Cultural Change
Increased OEE/Effciency
Reduced system cost
Reduced inventory
RFT
Customer Satisfaction
Transformational Journey
Top management commitment
Effective communication
Capability Development
Employee Engagement
Reward & Recognition
Burning Platform
High % of machine Breakdown
Long lead time
Non availability of raw material on time
Supply Chain Dash Board
Customer service level
Supplier savings and service level
Cost of distribution
Plant efficiency/OEE
Acceptable Quality Level
Employee Happiness
Capability development
• Problem solving techniques
• Need based training
• TL development
Skill training record Trainee: Anton
Trainer: Rohitha
Job Breakdown Sheet DateOperation - Tape edge - HM 6/7 TT:
10min (Polylex) AQL : 98%Month of September
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30A. Basic Knowledge of machine
1 Parts & their role
2 Threading - Top & bottom / fixing tape
3 Tension setting
5 Setting table
6 Confidant in handling machine
7Maintenance - Daily lubri: / Weekly
lubri:
8 Electrical
9 Routing maintenance / JH / Recording
B. Basic Knowledge on Accessories
10Foam types vs mattress types (Spring
& all foam)
11 Mattress tape
12 Stickers
13 Labels
14 Ventilation
15 Handles
16 Fabric types / Quilted
17 Trim card
C. Measurement
18Foam & assembled spring unit - before
finishing
20Placement - Label & Stickers / Handles
/ Ventilators
C. Preparation for sewing
21 Reading job card
22 Selecting bundle
23 Fixing border panel
24Stitching top & bottom panels + end
knot & with 2” overlap
25Quality check - straight line sewing/ no
slips
26 Quality check - Corners
27Quality check - fabric-foreign
matter/quilt
28 Fixing and quality check on accessories
Open door communication • Family culture
One to chat • Build up an EBA
Gemba culture• Communication
at the place
Meeting standards
Employee Involvement/Overlapping areas between programs
TQM
TPM
Kaizen/QCC
5S
Continual Improvement5S/Kaizen/QCC
Continual ImpovementTPM/TQM
Jishu Hozen- Autonomous maintenanceOne point Lesson
TPM – RCO/SMED Rapid mould change over
Benefits
Intangible
• Embracing cultural Change
• Empowerment of employees
• Commitment of top level management
• Creating awareness and learning organization
• Pleasant working environment
Tangible
• Reduction of inventory cost from 67m to 49m
• Reduction of overhead cost by 13%
• Improved lead time from 7 days to 3 days.
• Customer case fill on time at 97%
Evolution of Lean Supply ChainUnmask the hidden factory and Back office
Eliminate non value added activities
Seeing Waste – Improve Flow
Reduction LT from order to cash
Minimize inventory and reduce cost
5W 1H – ECRS frame work
Waste watcher teams - ownership
VSM
Standard work
5SLean Culture, Respect/Develop Genba’s idea and mentality
Project Title: Project Objective: Process: “Comfilux”productionReduce lead time in the Enhance capacity by 50% to meet the current demandvalue chain from 5 days Reduce OT cost & eliminate muda in the value stream
to 3 days & reduce labour No: of people: - 11cost.
Before After
Line balancingVSM
Std workROL/BOM
Kanban
•No sense of takt time•RM stock out days•No smooth consumable flow•Muda in the information flow
Anticipated Savings Potential
Production Volume USD29,531
increase by 200 mattresses
OT saving (9 associates) X 3h/day
USD 1,650
Less 2 assocates USD 2,438
Total approx USD33,619
Foamslitter
Fabric cutting
flanging
sewing Spring unit fabrication
Packing
Spring unit assembly
Fabric cutting
flanging
Sewing
Pac
kin
g
Des
pat
char
ea
FG area
0
5
10
15
20
25
30
TT -!6.8min
Av.time-7h/demand – 25Nos/day
Stage 2 – lay out change
0
2
4
6
8
10
12
14
16
18
Capacity increase
Before
Our Dream
We want to be a world class company by 2020
Quality Cost Delivery