Sector: Manufacturing
Industry: Kitchen Utensils Manufacturer
Years of Engagement: 4 years
Workplace: 1 Facility
Challenges:
When we got engaged, the unit was doing an annual business of only Rs 6 Cr. Father & son managing all operations along with 25-30 workers and 6 staff. Son had high aspirations to build a brand, recognised in domestic as well as Europe market and grow multifold in three years. But they were struggling for last two years on all fronts with no success such as Product design & tooling, Market, Production capacity, Pricing, Supply chain, Competency of available people, Finance and Factory space
Expectations:
- Help, a guide to fighting & sail through all fronts to grow from Rs 6 Cr to 25 Cr in 3 years
- Don’t propose any plan calling for big investments
Approach:
Vedzen’s had to specially design a special model approach to address the challenging assignment. The customer had no competent team members and no big budget for paying even consulting charges. We designed one day per month visit to the factory and rest coaching off-site through chat, VC, emails etc to the team members.
Implementation:
The diagnostic study revealed delayed decision making of owners because of difference in skill areas, experience and their basic nature. Regular coaching and counselling individually and together, restructuring accountability helped to align & build the teamwork. Starting with 5S disposal actions freed space from 18,000 units spread allover and established disciplined material flow with 1200 units of controlled WIP, within eight months. Assessed marketing plan, balancing supply chain, established quality norms, tooling improvements, stocking policy, manpower training was also addressed. Introduced new product development process and review system to expedite decision-making and launching new products quickly. Addressed component standardization, with increased new products. Introduced new distributors in new regions. Identified bottleneck areas, introducing low-cost mechanized solutions, buying new polishing machines to de-skill the operation that doubled production capacity. Moved out RM stores in a rented low-cost FG warehouse, adding more bottleneck machines, developed vendors to feed small items focused on only core work in the limited space. This helped to achieve a daily output of 1000 units from 250 units.
Results:
- Empowered motivated staff & workforce
- The business grew from 6 Cr to 24 Cr in 4 years from the same facility
- Product basket increased from 62 to 84 & RM components reduced to 180 from 270
- A recognized domestic brand within premium quality brands in the market
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