The company is a leading shirting fabric manufacturing company and part of Raymond group. The objective of this assignment is to build a decisive competitive edge of high reliability on delivery performance at SO level by reducing the production lead-time, and to capitalize the same in the market to increase company sales and profits. By implementing TOC solutions, Raymond Zambaiti has got the following benefits within a short span of eight months.
1. Production lead-time is reduced by 25% (from 45/50 days to 33 days) at SO level.
2. On-time delivery performance (at SO level) has been improved to 95%.
3. In this industry, order assortment (multiple SKUs in one sale order) getting dispatched together on or before the agreed due date is a critical requirement of customers.
Before TOC, production flow entity used to be at SKU level leading to desynchronized flow at SO level and more waiting time at warehouse. (First SKU waiting for the last SKU). After TOC, the production flow entity has been changed to SO level. A 50% reduction (15 days to seven days) in assortment waiting time at company warehouse has been achieved because of improved synchronization and flow. This reduction also results to improved cash to cash cycle.