Driving business growth through Supply Chain practices

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