Business Transformation in Plastic products manufacturing company
January 29, 2025
Company Overview:
1) Industry: Plastic Products Manufacturing
2) Location: Three Manufacturing plants with Marketing & Sales office in India
3) Markets: Domestic and Exports
Challenges:
1) Struggled with delivery issues and a significant backlog of orders.
2) High inventory.
3) Cash flow problems.
4) Reducing Profit.
Strategic Implementations:
1) Financial: Established KPIs, monitoring, review & control methodology
2) Operational Excellence: Improved overall manufacturing and supply chain flow.
3) Productivity Improvement: Bottleneck identification and Optimization and improving flow.
4) Employee Alignment: Rolled out an employee performance system aligned to company goals.
5) Business Review Process: Established a weekly business review mechanism involving all stakeholders.
Impactful Outcomes:
1) Delivery Performance: Improved from 60% to 98% in six months.
2) Manufacturing Lead Time: Reduced by 40% in a year.
3) Inventory Reduction: Achieved a 35% reduction.
4) Capacity Utilization: Revealed hidden capacity of 35% within one year.
5) Sales Growth: Increased by 40% in a year.
6) Profitability: Doubled in 15 months.
7) Cash Flow Improvement: Cash velocity increased by 25%.