Bajaj Electricals Engineering And Projects Division

• Engineering & Construction
• Rapid Projects Execution

With the new paradigm of synchronized supply and execution management, the company now delivers most projects 3-4 months early

Over the last 75 years, Bajaj Electricals Ltd, a pioneer in electrical home appliances, lighting and luminaires business, has progressively diversified into turnkey projects. Bajaj Illumination and High mast lighting system projects involve providing lighting solutions for a wide spectrum of utilities such as airports, shipyards, port trusts, sports stadiums, monuments etc., while the Power Distribution projects work on rural electrification. And TLT projects cater to connecting power transmission grids across India –i.e. connecting power generating plants or sub-stations.

Most of the EPC projects in India are executed in environments of high uncertainty; completion of these projects require coordination and cooperation between various stakeholders like state-owned companies, individual landowners and the contractors. Therefore, gross delays are very common. When Bajaj started TOC implementation, it too had large number of open projects with chronic delays and cost over runs but with the new paradigm of TOC based synchronized supply and execution management of projects, the company reaped both operational and financial benefits. The results include:

Client Speaks

We embarked on the journey of implementing TOC processes along with Vector Consulting Group, to realize the full potential of all categories.

Anant Bajaj

Managing Director, Bajaj Electricals

BEL has embarked on a journey of implementing pull systems of management in the entire supply chain. What’s the motivation?

Our primary sales had been growing at 20% a year. Most of the growth was from few products. Only a few SKUs had significant penetration among a large base of retailers. We embarked on the journey of implementing TOC processes along with our consulting partners, Vector Consulting Group, to realize the full potential of all categories.

What were the results?

After enabling the supply chain, we are in the process of rolling out this initiative pan-India. Currently, the initiative is in first phase of roll out in selected branches. The reach in these regions has doubled, retailers added 40% new SKUs. The secondary sales have gone up by more than 50%.

What have been the implementation challenges?

The implementation is a paradigm shift not only for us but also for distributors. Many age-old industry beliefs had to be challenged. For example, we had to move away from pushing for primary sales targets. At the same time, steps were taken to create price hygiene to avoid territorial conflict and to protect the interests of retailers. The distributor had to be convinced to deploy resources to improve range and reach. Many distributors cherry-picked outlets based on sales volume and payment realization comfort, all other outlets were termed bad counters. We had to break this myth of bad counter by ensuring retailers capital is not blocked and at the same time see that each retailer has a single source of supply. The process of supplying small lots frequently helped break the myth. We also changed our volume-based schemes. The results are exciting.

Godrej Power Infrastructure & Renewable Energy

• Engineering & Construction
• Rapid Projects Execution

The company adopted TOC method of planning and executing projects to consistently complete projects in time

Godrej PIRE (Power infrastructure & renewable energy business) is considered as a critical revenue driver for the Godrej & Boyce Group. But in 2013-14, the company was experiencing a common industry situation. The projects of the company (large scale village electrifications, electrical substations), were chronically delayed, thereby requiring more working capital to be ploughed in. Moreover, the company also had to contend with cost over runs and negative margins. Therefore with the objective of turning around the business by completing projects in time, Godrej PIRE adopted the TOC methodology. With thrust on erection billing vis-à-vis the erstwhile focus on supply billing, and increased focus on undertaking EHV projects (which offers higher margins), the company achieved following results:”

Trident Group

• Engineering & Construction
• Rapid Projects Execution

Adopting TOC principles, the company erected a spinning plant of 30,000 spindles, in a record time of nine months

One of the leading players in textile industry, Abhishek Industries (Trident Group) erected a spinning plant of 30,000 spindles using CCPM. A greenfield project, it was completed in a record time of nine months as compared to the industry benchmark of 12 months. The ramp-up to peak production was also achieved in 40 days as compared to the typical industry time of 3-4 months.