Streamlining Supply Chain and Quality Management for Enhanced Manufacturing Efficiency

Janatics Pneumatic, a manufacturing company, faced critical challenges in managing their supply chain, particularly with suppliers from Jamshedpur sending raw materials to their facility in Coimbatore. The core issues included poor quality (high PPM ratios), inconsistencies in on-time delivery (SOTD), and inefficient resource utilization, leading to increased operational costs and market share erosion.
 

Challenges Identified

1. Optimization of Raw Materials: The imbalance in raw material supply either led to cash flow issues due to excess inventory or halted production due to shortages.

2. On-Time Delivery: Lagging SOTD affected market competitiveness.

3. Planning and Quality Issues: Inadequate planning and substandard product quality were significant concerns.

4. Excessive Cash Flow in Inventory: Inefficient inventory management tied up unnecessary capital.
    

Approach and Strategy

Our expert team first conducted an on-site visit to the Coimbatore facility to comprehend the challenges at the factory level and assess the existing processes and costs. This initial analysis was crucial for developing a tailored strategy.
 

Analysis and Strategy Development

• Gap Analysis in Inventory Management and Manufacturing Processes: We identified key areas where improvements could be made and set a clear roadmap to achieve our objectives.

• Alignment with Business Requirements: The strategies were designed to meet the specific needs of the business, ensuring practical and applicable solutions.
   

Objectives and Achievements

Within 365 days, we accomplished two primary objectives:

1. Quality Improvement: The defect PPM (Parts Per Million) was significantly reduced from 4784 to 1551, nearing the target of 1000.

2. Enhanced Supplier On-Time Delivery: The SOTD metric improved dramatically from 45% to 98%, almost reaching the 100% target.
    

Additional Benefits

• Knowledge Transfer to Suppliers: Our intervention helped suppliers understand the importance of quality, improving their supply standards.

• Improved Inventory Planning: The enhanced approach to inventory management resulted in more efficient use of resources and reduced cash flow tied up in inventory.

• Overall Cost of Time Delay (COTD) Improvement: The streamlined process led to a reduction in delays and associated costs.

Conclusion

This case study demonstrates the importance of a holistic approach in addressing supply chain and quality management challenges. By focusing on key areas such as inventory management, quality control, and supplier relations, we achieved significant improvements in operational efficiency and market competitiveness.