BA Read More

LMW achieved remarkable results with an order flow-based manufacturing solution:  on-time delivery now >95%

Lakshmi Machine Works Ltd. (LMW) - Machine Tool Division

Lakshmi Groups

LMW Machine Tool Division (MTD) is a pioneer in the <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/industries/equipment-manufacturing/">manufacturing</a> of CNC Lathe (Turning Centre) and Machining Centres. LMW's customers are component (parts) manufacturers in the automobile industry, auto ancillaries, and general-purpose machining/engineering industries. They place orders whenever there is a need to enhance their capacity and/or capability. The major challenge for the company was posed by two realities in this environment:<ol><li>The actual timing of when the customer needs the order delivered is subject to uncertainties (at the customer’s end) such as site readiness, loan approvals, market conditions, etc.</li><li>Assembly of each of these machines involves ~1500 components which are procured or imported from over 100 vendors. So, the actual time of order completion is also subject to uncertainties in the arrival of all the needed parts on or before the scheduled assembly date.&nbsp;</li></ol>&nbsp;This co-existence of uncertainties at both ends, coupled with pressure to meet monthly targets, led to a stressed working environment and undesirable effects, including an increase in inventory (RM/WIP/FG), customers experiencing high and varying lead -times, poor on-time completions, loss of assembly output, etc.&nbsp;&nbsp;After implementing an end-to-end ‘pull’ replenishment solution to ensure components availability, the uncertainties delaying the timely assembly of standard machines were dampened. Further, for customised machines, an innovative manufacturing solution was implemented to ensure on-time delivery as per the committed due date.&nbsp;&nbsp;Key benefits experienced post- implementation are as follows:&nbsp;&nbsp;<figure class="image"><img style="aspect-ratio:921/929;" src="https://web-assets.vectorconsulting.in/storage/editor_uploads//image-1719853811_1777266335.png" width="921" height="929"></figure>

LMW Machine Tool Division (MTD) is a pioneer in the <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/industries/equipment-manufacturing/">manufacturing</a> of CNC Lathe (Turning Centre) and Machining Centres. LMW's customers are component (parts) manufacturers in the automobile industry, auto ancillaries, and general-purpose machining/engineering industries. They place orders whenever there is a need to enhance their capacity and/or capability. The major challenge for the company was posed by two realities in this environment:<ol><li>The actual timing of when the customer needs the order delivered is subject to uncertainties (at the customer’s end) such as site readiness, loan approvals, market conditions, etc.</li><li>Assembly of each of these machines involves ~1500 components which are procured or imported from over 100 vendors. So, the actual time of order completion is also subject to uncertainties in the arrival of all the needed parts on or before the scheduled assembly date.&nbsp;</li></ol>&nbsp;This co-existence of uncertainties at both ends, coupled with pressure to meet monthly targets, led to a stressed working environment and undesirable effects, including an increase in inventory (RM/WIP/FG), customers experiencing high and varying lead -times, poor on-time completions, loss of assembly output, etc.&nbsp;&nbsp;After implementing an end-to-end ‘pull’ replenishment solution to ensure components availability, the uncertainties delaying the timely assembly of standard machines were dampened. Further, for customised machines, an innovative manufacturing solution was implemented to ensure on-time delivery as per the committed due date.&nbsp;&nbsp;Key benefits experienced post- implementation are as follows:&nbsp;&nbsp;<figure class="image"><img style="aspect-ratio:921/929;" src="https://web-assets.vectorconsulting.in/storage/editor_uploads//image-1719853811_1777266297.png" width="921" height="929"></figure>