Case study: smart factory

cHow
r e aa Capital
t i o n Equipment Manufacturing company digitized their
factory operations.
About the customer Problems as
Problems as visible
visible to
to the
the
customer
customer
XYZ Pvt Ltd.
Problem 1: Decreasing Net Profit
Mumbai, Maharashtra despite Increase in Revenue

Capital Equipment
Manufacturing
Problem 2: Delayed Key
Fabrication, Installation and Projects leading to
Commissioning of Water and customer dissatisfaction
Wastewater Treatment Plant

50+ Shop Floor Staff Problem 3: Unorganized

shop-floor and highly
cluttered stores
Primary customer base:
Food and Beverages
industries Problem 4: promotor of the
organization has to get
involved in every decision
25 Years in Business
making

Root Cause Analysis

Lack of No demar-
documentation cation on
1. Inventory data shopfloor
was managed in area
Hard copies
2. No GRN
3. No record of
purchases

Undefined Job
roles / dept. Undefined performance
Undefined Purchase measurement mechanism
heads
mechanism
Case study: smart factory
c r aemanufacturing
“In a t i o n company, information flow between multiple
departments can happen only by adopting technology”
Tools & Techniques used The Intervention
Entire Factory was virtually put for revamp.
01 Supply chain management Various data collection opportunities were
identified like RM Stock, Purchase, GRN etc.
02 5s Techniques Entire data collection mechanism was set up with
an excel based inventory management tool.
Performance Management Detailed 5s was conducted on the shopfloor,
03
System various areas were identified and designated.
Various job roles were identified, right people
04 Kaizen identification and
were interviewed and respective responsibilities
implementation
were given to them.

A glimpse of Intervention

Inventory Management Dashboard

Employee Engagement
• Safety Guidelines
Activity: Physical Check up
• Sexual Harassment Policy Making
• Attendance and leave policy and
many more Stores after 5s Activity

Significant drop in stock-out situations

Results
Better availability of material at site for implementation
On-time project completion leading to bonus pay-outs from the customer
Better cashflow management, due to enhanced visibility of stock holdings
Increased morale of the employees on the shop floor where employees are willing to learn new
skills, taking new initiatives etc.

From a data blind company, setting up the entire supply chain mechanism has
put XYZ Pvt. Ltd. on its course for a relevant ERP adoption thereby moving
towards a data driven company.
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