Team Apache

Pranay Singh
Soumendu Sanyal
 Data Analysis &
Introduction Problem Definition Recommendation Conclusion
Insights

Executive Summary
Statement

Approach
Pain Points
Problem

Excellentia Stainless Steel business has Skewness in Order Book causing Domino Building & Testing the initial Hypothesis for

experienced a dip in revenue by 11% FY-16 Effect through the entire cycle identifying the Problems

year in comparison to previous year. Despite Developing a plan of Action for each department
Unable to understand Market Demands &
the reduction in operating expenses by 8% for smoother transition from current state
meet client expectation there by poor
the company the company’s Gross profit Iterative changes to transform existing working
operating working cycle
dipped by 32% FY-16. state

Company Profile Business Domain Problem Solution

• Excellentia Stainless Steel a Europe based Stainless steel manufacturing company with a
Skewness in the Order Shortening of Sales
production capacity of 7.8MTPA has experienced a revenue drop of 11% FY-15-16. Sales Book Cycles to 1-2 weeks
• The company makes 3 type of Steels & caters the needs for Manufacturing, Construction
Master Scheduling,
Procurement plan not
etc. The most sold grade of steel is type-400 Steel. Analysis As-If state Analysis production planning based
Operations matching Production
on client urgency & profit
planning margin
Impact Analysis
Use of Digital Cloud
• Greater Productivity among all the functionalities leading to Poor planning of Inbound
Logistics and Outbound Logistics
Platforms and efficient
overall boost in sales and meeting client requirements contracting
People
• Monthly demand-forecasting meeting planning, scheduling &
Stringent credit policy to
procuring materials at right time, at right price High Working Capital
Finance /Poor Performance Ratios
match the industry
average of 90 days
Process • Improvement in Operational Capabilities Analysis

Technology • Significant changes in the current state by adopting Latest IT tools BUSINESS OBJECTIVE: An integrative Approach to increase the sales & customer satisfaction
by adopting iterative approach to solve all the issues Step-By-Step.
 Annexures

Root Cause Analysis

Dip In Gross
Profit

Sales & Production

Sourcing &
Business Planning & Finance Logistics
Procurement
Development Control

Poor Order Book Position / Risk of Goods available at High Working Capital /Poor Inefficient and ordinary
Underutilization of Capacity
Order Book Skewness right price & quantity Performance Ratios Inbound/Outbound Logistics

Orders skewed towards the High Fluctuations in the Opaqueness in Pricing of High skewness in availability of
end of the month No Demand Forecasting
Price Goods trucks

Limited Market Coverage Opaqueness in Pricing of Delayed Commercial Clearance

No Pipeline Inventory Very Lenient Credit Policy
Goods for domestic orders

50% opportunistic Clients No Demand Forecasting High Lead Time for Procurement
Quality Deviation Inefficient Budget planning
Strategy of Raw Materials
Very Low Order Book Position
at the start of the month Emergency loan
Inefficient Sequencing disbursement

Order Cancellations

Low visibility for future

demand
 Annexures

As-If State Segment Wise Distribution Grade of Steel Used

Automobiles/
Grade Of Architecture & Consumer
Steel Used Construction Railways/ Durables Manufacturing Percentage
Transportation

200 29.78 55.84 40.09   12.40%

300 98.25 123.42 154.04 262.5 62.92%
400   96.13 93.86 60.34 24.68%

Percentage 12.62% 27.15% 28.39% 31.84% 1014.25