Cases

Review of the Organisation and Information Technology Systems for an Organisation into Manufacturing of Turpentine Based Fine Chemicals

Challenge

The client, a company manufacturing turpentine based fine chemicals was facing the following challenges:

  • Profitability going down
  • Lack of proper distribution network
  • Duplication of work / high paper work
  • Very high processing time

    1) Order fulfillment

    2) Procurement

  • Lack of formal planning process and system
  • High inventory levels due to nonmoving inventory and absence of stocking norms
  • Absence of clearly defined HR policies
  • Unclear job responsibilities across the organisation
  • Low morale of employees across the organisation
  • Absence of reporting relations in the organisation
  • Lack of proper information technology system

Our Approach 

To review the organisation and information technology systems, UC adopted the following approach:

  • Developed a channel management strategy and vendor information system
  • Initiated the design and implementation of the following sub-projects

    1) Set-up time reduction and paper reduction in process, achieving 70% time reduction in order fulfillment and more than 35% in procurement process

    2) Non Productive Capacity Assessment

    3) Redefined systems and procedures for stores, purchase, warehouse and dispatch departments

    4) Redefined the information flow and information capturing norms at all the different offices and manufacturing locations

  • Designed inventory norms
  • Developed an HR policy binder for the organisation
  • Designed an organisation structure with an industry and practice focus
  • Developed a Performance Evaluation System in the organisation
  • Developed a Performance Evaluation System in the organisation
  • Designed job descriptions and profiles for key positions in the organisation
  • Developed a suggestion scheme program in the organisation
  • Studied the current information technology system and identified the functionality requirements for the organisation

    1) Evaluated ERP solutions, looking in to the organization’s requirement

    2) Identified and implemented “Quick hits” across the organisation

Impact

The client received a review of the organisation and information technology systems. The overall benefits of the recommendations were estimated at Rs. 1 crore.