Driving business growth through Supply Chain practices

Hants GroupWattala

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

• ISO 9001:2008• Challenge National

Awards

• Enhance Profitability• Enhance financial

capability

• Enhance market share by 2017

• Evolve SC• Diversification

• T &D• Compliance• Rewards night

Internal Financial

CustomerProductPeople

What is a supply chainSource

Plan

produce

Deliver

Customer

“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

Includes all functions involved in receiving and fulfilling a customer request

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

Customer Satisfaction

Transformational Journey

Top management commitment

Effective communication

Capability Development

Employee Engagement

Reward & Recognition

Burning PlatformHigh % of machine BreakdownLong lead timeNon 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 30  A. 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

                                     

25 Quality 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 com

munication

•Family culture

One to

chat

•Build up an EBA

Gemba

culture

•Communication at the place

CommunicationMorning market

Morning standing meeting

Monthly staff with HOD

Management review

Monthly Townhallmeeting

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 workWaste watcher teams - ownership V

SM

Standard work

5S

Lean Culture, Respect/Develop Genba’s idea and mentality

Project Title: Project Objective: Process: “Comfilux”production Reduce 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 streamto 3 days & reduce labour No: of people: - 11cost.

Before After

Line balancing VSM Std work ROL/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 assocatesUSD 2,438

Total approx USD33,619

FoamslitterFoamslitter

Fabric cuttingFabric cutting

flangingflanging

sewingsewing Spring unit fabricationSpring unit fabrication

PackingPacking

Spring unit assembly Spring unit assembly

Fabric cuttingFabric cutting flangingflanging

SewingSewing

Pack

ing

Pack

ing

Des

patc

h ar

ea

FG area

Foam(2 Hr)

Units

Foam

fab

Fabric

cutting

assem

bly

Flangin

g

Sewing

packing

0

5

10

15

20

25

30

TT -!6.8min

Av.time-7h/demand – 25Nos/day

Stage 2 – lay out change

Fabric

cutting

assem

bly

Flangin

g

Sewing

packing

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

Business Excellence