22nd April 2015

Sukesh Ned

Turnaround Services Global

Business Breakfast session

Global middle class is growing

0

1000

2000

3000

4000

5000

6000

7000

8000

9000

2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028

World

Popula

tio

n (

mill

ions)

Rich Middle Class PoorSource: Brookings Institution

Cost competitiveness is shifting

In Australia

Average age is increasing 1 in 4 were born overseas

PROJECTED POPULATION AGED 65 YEARS AND OVER

-50% 0% 50% 100% 150% 200% 250%

UK

New Zealand

China

India

Italy

Vietnam

Germany

Relative Absolute

Source: ABS

Source: ABS 2013

Changing landscape

DEMOGRAPHICSSUPPLYCHAIN

TRADE &

BANK

?

Embrace the change

RUN FASTER

STAY ALERT

LEAP AHEAD

Deepen customer insights

UNDERSTAND OBSERVE EXCITE

Listening to your

customer

Make your

customer talk

Observing how customer

uses products

- Pre-use

- During use

- Post use

Identifying how value

could be added through

- Physical

- Emotional means

Enhance Value

Thinking from

customers and

their customers’

viewpoints to

enhance value

Monitor and reduce costs

LAYERS OF

INEFFICIENCY

Costs of

• Low productivity

• Defects / Damages

• Rework

• Under utilisation

• Excess design

COST BAND

CORE COSTS

Improve order fulfilment

• How to improve your order fulfilment by 15% to 20% ?

• Reduce stock out of frequently ordered products

• Monitor sales pattern and product mix

• Improve manufacturing lead time for make–to–order

products

Reduce cash flow

• How to reduce your inventory by 15% to 20%

• Use ABC / FSN analysis for products

• Optimise safety stocks and reorder quantities

• Monitor inventory periodically

Customer Story

Dynamo & Lamp manufacturer

Quick Facts• Dynamo and lamp manufacturer for

bikes

• 120+ employees including contract

labour

• 50+ saleable SKUs with 350+ variants

• Semi-automatic assembly operations

• Under-utilisation of high value asset

capacities

• Higher work-in-process inventory at

certain workstations

• Stock-out of certain variants and over

inventory of others

• Sub-contracting of intermediate

operations

• De-bottlenecking of workstations resulting in reduced WIP and cluttering

• Increased production by over 25% with the same machines and employees

• Reduced utilisation for bottleneck workstation resulting in over 12% cost savings

• Optimum product mix ratio of variants resulting in no stock outs and FGI.

• 12 % improvement in customer returns due to better quality control of operations

Key Challenges

Strategic, Financial & Operational Benefits

Thank you

Turnaround Services Global

PO Box 566, Sydney, NSW 1235

Innovation is The Heartbeat Of Business