Enabling quicker turnaround through analytical modelling of manufacturing operations
Ma Foi’s analytical intervention reduced the lead time of a Gold Jewellery manufacturer by 50%
Situation
One of India’s largest organised jewellery manufacturer had long lead time of 8-12 days for manufacturing their casting jewellery, and this was further complicated by uncertain and seasonal market demand, margin undercutting in the market and huge price fluctuations in the gold industry. Raw material forms close to 90% of the cost in gold jewellery manufacturing, hence optimal management of inventory and managing Order to Delivery lead time is highly imperative for sustaining in the business and being profitable.
Corrective Action
Ma Foi conducted a thorough study of the current production process, the raw material and consumable supply chain, the workforce and machinery deployment pattern and the factory maintenance operations. We deployed the operational best practices in the following three areas,
- Manufacturing Process – Standardised the operations lead time and constraints of individual processes, streamlined the material flow by introducing small batch processing techniques, improved WIP data collection, reporting and communication, and initialised the periodic inter-departmental meetings to expedite decision making
- Supply Chain Management – We created methods to validate orders, streamlined batching, and communication process, and created an end point order adherence check mechanism.
- Maintenance Process – We set up the fledgling department’s structure, created the SOPs by adopting best practices in preventive and breakdown maintenance, inventoried and classified the assets, brought in measurable efficiency outcomes, and introduced AMC for non-critical maintenance areas
Result
- Ma Foi reduced the manufacturing lead time to 4-5 days
- Created a comprehensive and interactive capacity constraint model which is being used for both short term production planning and long term strategic planning for new plants
- Created operational SOPs which are being adapted in the current ERP implementation process
Sandeep Dahiya,
CEO / Director
Sandeep@mafoibusinessconsulting.com
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Joe Prasanna
Principal Consultant
joe@mafoibusinessconsulting.com
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