loader
Godrej Securities Solutions
bajaj

Godrej Securities Solutions

Godrej Securities Solutions, a division of Godrej & Boyce, is a market leader in the business of providing physical security products. Godrej Securities Solutions is a pioneer in providing security products such as safes, strong-room doors, safe deposit lockers, and record protection equipment, premises security solutions, home safes, and marine solutions. Banks, NBFCs, jewelers, corporates, defense establishments, and retail consumers of home safes are some of its customers. In October 2010, the company adopted the Theory of Constraints (TOC) framework for revamping the supply chain of its Physical Securities Business with the objective of improving on-time delivery performance, reducing lead-time, and enhancing the availability.The project was also expected to have a significant impact on the bottom line of the division.

Results achieved within two years of implementation are as given below. In the first two years, the profits increased by three times, and has quadrupled in the third year. The sales has also doubled in three years. The profitability has increased significantly, while ROCE has tripled. Institution Business : On-time performance improved to more than 90%, while the production lead time reduced by over 50%. Lead-time to customers reduced by 50%, while variability in lead-time reduced seven times. Output in the plant almost tripled, and this has been achieved with significant reduction in overtime and with the least addition of manpower. Work-in-progress inventory reduced by more than 50% and finished goods stock reduced by 50%. Rate of new product introduction increased by 200%.

Retail Business: Availability of all items is in the range of 90%. Number of distributors have almost tripled, along with doubling of range at the distributor. Number of retailers increased four times, along with doubling of range at the retailer.

Overall Result: Profitability has almost tripled.

The following are the results experienced so far –

bajaj-electricals-parameter

Client Speaks

PS-Tandon
Dara Byramjee
Executive Vice President & Business-Head, Godrej Security Solutions

With 3 times more output from the same capacity and reduced working capital requirement, we were able to improve our ROCE by three times.

Q: What actions were taken to improve output from the plant?

A: We provide physical security solutions (such as safes, lockers, strong room doors) for banks, institutions and retail. These products require assembly of more than 50 components. Some of these are made in-house, the rest are sourced from suppliers. We used to have significant desynchronization of these components at assembly leading to loss of capacity.

In 2010, we started the implementation of Theory of Constraints processes by partnering with Vector Consulting Group. After deploying the flow concepts of TOC, synchronization of these components at assembly improved dramatically. We started achieving the record output almost every day of the month.

Moreover, fire-fighting reduced significantly. This released the bandwidth of management to focus on improvements in the manufacturing line set-ups and working on capacity release projects that further increased output.

Q: What were the major paradigm shifts for you and your managers?

A: Earlier we always thought higher WIP leads to higher output. We realized that this is not correct. One of the biggest paradigm changes we implemented is the system of pull, where inventory was pulled into the system based on the daily gap in a pre-defined WIP level, which was set at half of the previous levels. The lower WIP ensured focus on fewer orders, thus increasing flow.

Q: What challenges did you face in implementation? How did you align the various stakeholders to the new change?

A: The biggest challenge was to change the established mindset of managers to the new way of working – moving from monthly to daily planning, aligning production to working on sales orders rather than focusing on local output. When people saw dramatic improvements in inventory and output in a very short-time, the initial scepticism gave way to infectious enthusiasm.

Other Clients

View All
kirloskar

Godrej Interio (Institutional Business)

kirloskar

Kirloskar Ferrous Industries Ltd (KFIL)

kirloskar

Filtrum Polymers Pvt. Ltd.

kirloskar

LMW Machine Tool Division (MTD)-New Product Development

kirloskar

Kirloskar Oil Engines Ltd. (KOEL)

kirloskar

Godrej Material Handling

kirloskar

Kirloskar Oil Engines Ltd (Spares And Services)

kirloskar

Godrej Securities Solutions

kirloskar

International Tractors Limited

kirloskar

Fleetguard Filters Pvt Ltd

kirloskar

Mahindra First Choice Services

kirloskar

Jindal Stainless Limited

kirloskar

Godrej Interio-NPI

kirloskar

VIP Industries Ltd

kirloskar

Godrej Megasari

kirloskar

Godrej Interio- Service And Spares

kirloskar

Bajaj Electricals Limited (CP)

kirloskar

JK Files And Tools

kirloskar

Landmark

kirloskar

Liberty Retail Revolution Ltd

kirloskar

Pratibha Syntex Ltd

kirloskar

Raymond Zambaiti Ltd

kirloskar

A Major Vertically Integrated Linen Exporter

kirloskar

KEI Industries Ltd

kirloskar

Bajaj Electricals Engineering And Projects Division

kirloskar

Godrej PIRE

kirloskar

Tata Bluescope Steel Limited

kirloskar

Tata Metaliks

kirloskar

Fleetguard Filters

kirloskar

Trident

kirloskar

Ashok Leyland- Spares Parts Division

kirloskar

Bajaj Luminaires Division

kirloskar

Filtrum Tools

kirloskar

Fleetguard Filters Pvt. Ltd. (NPD)

kirloskar

Godrej Interio

kirloskar

Godrej Interio-Home Kitchens

kirloskar

Godrej Storage Solutions

kirloskar

Godrej Tooling

kirloskar

Hercules Hoists Limited

kirloskar

JK Fenner (India) Ltd

kirloskar

Lakshmi Machine Works Ltd. (Machine Tool Division)

kirloskar

Liberty Shoes Ltd

kirloskar

Lucas Indian Service Ltd.

kirloskar

Mahindra First Choice (Spares And Services)

kirloskar

Parag Milk Foods Ltd.

kirloskar

Schneider Electric

kirloskar

Tata Motors-Spare Parts & Services Division (Commercial Vehicles)

kirloskar

Tata Radiators

kirloskar

Top1 Lubricants, Indonesia

kirloskar

Shiram Pistons

kirloskar

Tata Autocomp Systems Ltd

kirloskar

Royal Enfield

kirloskar

Volvo Eicher

kirloskar

Kelloggs

kirloskar

Khadims

kirloskar

Kurl-on

kirloskar

L&T – Heavy Engineering

kirloskar

Lenskart

kirloskar

Linc pens

kirloskar

MSP Steel

kirloskar

PARI

kirloskar

Pidilite

kirloskar

Jindal Stainless Steelway

kirloskar

Shalimar Paints

kirloskar

Raychem RPG

kirloskar

Shanthi Gears

kirloskar

Sintex Industries Limited

kirloskar

Skipper EPC

kirloskar

TATA International

kirloskar

Viveks

kirloskar

TATA Steel

kirloskar

Westside

kirloskar

Yellow Diamond (Prataap Snacks)

kirloskar

Polycab

kirloskar

Vaibhav Global Limited

kirloskar

APL Apollo Tubes Limited (APL Apollo)

kirloskar

Asian Granito

kirloskar

Kirloskar Agri

kirloskar

Daawat

kirloskar

FBB

kirloskar

Greaves Cotton

kirloskar

Godrej AV

kirloskar

Godrej Hershey’s

kirloskar

Godrej security solutions PSS

kirloskar

Century Plyboards India Ltd.

kirloskar

Raymond

kirloskar

Shakti Pumps

kirloskar

Skipper Pipes

kirloskar

Blackberrys

kirloskar

Dollar Industries

kirloskar

Sterlite Tech

kirloskar

Lupin

kirloskar

Strides

kirloskar

Ajanta Pharma

kirloskar

Sun pharma

kirloskar

Trident Group