Revitalizing Sales and Production - Lean manufacturing in panel industries Overcoming Challenges to Drive Growth and Efficiency
Discover how Vidhyut Power Pvt Limited, an electrical panel manufacturing company, overcame challenges and achieved remarkable improvements with the implementation of the Greendot management solution.
Through the adoption of Kanban, Just-in-Time (JIT), the 5S system, Kamishibai Dashboard, and Kaizen principles, Vidhyut Power optimized production planning, streamlined inventory management, enhanced workplace organization, and fostered a culture of continuous improvement.
Witness the transformative journey of Vidhyut Power Pvt Limited as they leveraged Greendot's powerful tools and methodologies to achieve outstanding results in sales, production, and store management. Experience how this comprehensive solution propelled their performance, efficiency, and customer satisfaction to new heights.
Challanges faced by client
- Sales: From 2010 to 2016, Vidhyut Power Pvt Limited faced the challenge of low sales turnover. This indicates that their sales performance was comparatively poor during this period. The company struggled to generate sufficient revenue and meet their sales targets, which had a direct impact on their growth and profitability.
- Production Issues: Production Issues: The company faced multiple production issues that affected their operations. One of the primary concerns was the inability to deliver orders on time. This led to customer dissatisfaction and potential loss of business opportunities. Additionally, Vidhyut Power Pvt Limited encountered a manpower crisis, experiencing difficulties in managing an adequate workforce. The cleanliness issues further compounded their production challenges, potentially impacting product quality and overall efficiency. Moreover, the delivery time of 3-4 weeks was deemed too high, leading to customer dissatisfaction and potential loss of competitive advantage
- Store Management: The company's store management faced significant challenges, including dead stock worth 23 lakhs. This indicates that a considerable amount of inventory remained unused or unsold, tying up capital and creating storage constraints. Furthermore, the company struggled with tracking materials effectively, leading to difficulties in locating and managing inventory. Inadequate stock management practices contributed to inefficiencies and financial losses.
- Low Production in Fabrication Shop: Vidhyut Power Pvt Limited encountered limitations in their fabrication shop's production capacity. The shop was only able to produce 5-6 tons, which was below their desired output level. This hindered their ability to fulfill customer orders in a timely manner and restricted their overall production potential.
These challenges collectively had a significant impact on Vidhyut Power Pvt Limited's performance and competitiveness in the market. The company recognized the need for strategic interventions and implemented measures to address each issue effectively. By resolving these challenges, Vidhyut Power Pvt Limited aimed to improve sales performance, enhance production efficiency, optimize store management, and increase their overall competitiveness.
Challenges faced by Vidhyut Power Pvt Limited
Kanban: The company implemented the Kanban system, a visual scheduling tool, to improve production planning and control. Kanban helped streamline workflow by visualizing the status of work and ensuring a smooth flow of materials and information. This allowed for better coordination between different departments and reduced delays in production.
Just-in-Time (JIT): The JIT approach was adopted to optimize inventory management and reduce lead times. By synchronizing production with customer demand, Vidhyut Power Pvt Limited aimed to minimize waste and eliminate unnecessary inventory holding costs. JIT facilitated a more efficient production process by ensuring that materials and components were delivered at the right time in the right quantities.
5S System: The implementation of the 5S system focused on improving workplace organization and cleanliness. This methodology involved Sort, Set in Order, Shine, Standardize, and Sustain. By eliminating clutter, organizing work areas, and maintaining cleanliness, Vidhyut Power Pvt Limited aimed to enhance productivity, safety, and overall efficiency.
Kamishibai Dashboard: The company utilized the Kamishibai dashboard, a visual management tool, to monitor and track performance in various areas. This system involved regular audits to identify deviations from standard practices and ensure continuous improvement. The Kamishibai dashboard helped in identifying and addressing issues promptly, leading to better process control and quality management.
Kaizen: Continuous improvement through the implementation of Kaizen principles played a crucial role in Vidhyut Power Pvt Limited's transformation. This involved encouraging employees to contribute ideas for process improvement, fostering a culture of continuous learning and development. By implementing small incremental changes over time, the company aimed to achieve significant improvements in various areas.
Sales Strategies & Review: Vidhyut Power Pvt Limited also focused on reviewing and revamping their sales strategies. This involved market analysis, identifying target segments, and developing effective sales techniques. Regular reviews of sales performance and customer feedback were conducted to refine strategies and enhance sales effectiveness.
By implementing these approaches, Vidhyut Power Pvt Limited aimed to address the challenges they faced in sales, production, and store management. These strategies aimed to improve production efficiency, minimize waste, optimize inventory management, enhance workplace organization, and foster a culture of continuous improvement, ultimately leading to improved overall performance and customer satisfaction.
Transforming Sales and Production: Overcoming Challenges for Remarkable Growth - A Video Testimonial"
Result of lean implementation
- Sales Growth: Through the adoption of various methods, strategies, and extensive training, the company experienced a remarkable sales growth of 70% within one year. The implementation of the greendot management solution played a crucial role in driving this growth by enabling effective sales management and enhancing customer engagement.
- Payment Collection: The company observed a notable improvement in payment collection. The implementation of lean practices streamlined the payment process, reducing delays and improving cash flow. This improvement positively impacted the company's financial stability and strengthened their relationships with suppliers.
- 90 % Production Delay Reduction: By implementing the kanban practice and utilizing the Kamishibai dashboard, Vidhyut Power Pvt Limited successfully addressed production challenges and achieved consistent on-time product deliveries. The introduction of a pull system empowered the team to identify and resolve issues independently, leading to a significant reduction in delivery delays from 30 days to just 3 days.
- 10 time Inventory Turnover Ratio Improvement: The adoption of Just-in-Time (JIT) principles enabled the company to reduce their inventory levels from 23 lakhs to 2 lakhs. This reduction in inventory not only optimized working capital but also improved payment cycles. Additionally, the implementation of a digital material management system further enhanced inventory control and facilitated efficient supplier payment management, indirectly contributing to improved profitability.
- 30% Production Efficiency Enhancement: Through the implementation of kaizen practices, Vidhyut Power Pvt Limited experienced a transformation in their shop floor culture. With increased participation and ownership from team members, production efficiency improved by an impressive 30%. The company embraced continuous improvement, identifying and eliminating inefficiencies to enhance productivity and overall performance.
- 400 % Fabrication Output Increase: By developing a system for outsourcing and nurturing new vendor relationships, the company successfully increased their fabrication output. Prior to lean implementation, their fabrication output was 5-6 tons per month. However, with the adoption of lean practices, the output skyrocketed to 22 tons per month, showcasing a significant improvement in production capacity.
- 5S Office Management: The implementation of 5S practices in office management led to improved file and document retrieval time. By organizing and standardizing workspaces, the company achieved enhanced efficiency, reduced waste, and improved overall operational effectiveness.
These achievements highlight the substantial benefits that Vidhyut Power Pvt Limited derived from their lean implementation journey. From sales growth and improved payment collection to enhanced production efficiency and increased fabrication output, the company successfully transformed various aspects of their operations, ultimately leading to improved profitability, customer satisfaction, and organizational excellence.