44 MIS Case 1
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Transcript of 44 MIS Case 1
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8/3/2019 44 MIS Case 1
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Case Study Summary
Sonam Apparels has manufacturing unit in Hazipur, Bihar and makes womens, Mens and
Kids wear for both Export as well as Domestic market. Since 1990s when the Indian
Garment Industry growth was normal and quota system prevailed companies remained
competitive by reducing cost, enhancing quality and being able to deliver rapidly. As a lot ofdemand came from customers that wanted customized products with new colour and style
in 2006 the company decided that changes are to be made in the manufacturing to be
competitive and cater to customers.
Thus R.Ankit & sons (consulting firm) were hired to re-engineer its manufacturing process
and scheduling was immediately identified as a critical component.
The manufacturing process at Sonam has grown complex and scheduling is done in ways
impossible 3 years back. Though order quantities are small, the number of orders has gone
up. Due to better pre production and post production planning in terms of fabric, color,style and doing line balancing the process/plant have become more efficient.
Sonam now accepted orders of customized items by understanding the effect of these on all
the other orders. Earlier it wasnt responsive to such orders. Various departments were
coordinated and the levels of work in progress (WIP) were increased to schedule and
optimize the plant. But WIPs storage costs money and unfinished garments dont create
revenue.
DISHA, a capacity scheduling systems developed by M/S Gates Ltd. was thus selected after
six months of search. The systems helps consider the capacity of each line and determinesthe quantity of different materials needed and when for suitable operation. Not only
because rapidly release a detailed schedule to the production floor, it has the ability to
balance all manufacturing parameters viz., machine efficiency, inventory levels and on time
delivery. It could quantify these decisions, doing away with guesswork, reducing the risk
factor.
Lead time reduction was identified as the main goal of the overall project. The benefits were
lower inventory and customer satisfaction. It requires more than installing scheduling
systems viz., streamlining the product line, real time dispatching and production floor
feedback were the additional steps to create an agile manufacturing environment.
Sonam was able to reduce its manufacturing cycle time by 30% within one year. A real time
dispatch and feedback system was installed in next 12 months to move to 50%. Through
proper management of the WIP buffer at the output and operating all subsequent work
centers in the made to order mode, all the other inventories from the plant were rid by 60%
within the same time by properly managing the WIP buffer at the output of the
manufacturing process and operating all subsequent work centers in the made to order
mode.
DISHA is essential tool to the process of continuing scheduling and its day to day scheduling
simulation tool to analyze and improve the efficiency of the whole plant.