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.