The client, a sanitary ware product manufacturing company faced a number of problems. They made losses for the previous three years and had a reduction of turnover by 25 percent in the previous four years. They had a weak marketing set up, high level of inventory (1 year), receivables and creditors and high level of rejections in goods manufactured. They had unclear job descriptions and responsibilities and a high employee turnover (50 percent in last 1 year). There was poor teamwork at the operating and supervisory level, a lack of formal planning processes and systems. The employees had poor morale and the company overall lacked strategic focus.
To make an operations review for the company, UC adopted the following approach:
- Developed a framework for planning to bridge the gap between the market mix and the production mix
- Determined finished goods inventory norms based on fast, slow and non-moving stocks
- Initiated daily shop floor meetings and quality circles involving supervisors of the production department to improve coordination and quality
- Defined the organisation structure
- Prepared job descriptions and a key performance indicators based evaluation system for the top operating management
- Appointed client teams for sub-projects and initiated weekly review meetings involving the top management
Having conducted an operation review, UC made suggestions on how to improve and eliminate the problems that the company was facing.