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Bouncy Bouncy

F.Y. Teng | April 11, 2012
The story of a well-crafted change management initiative that keeps people and business going on the up and up at top Asian manufacturer of slab stock polyurethane, Sheela Foam

Extending the Lines
After conception, the project was executed in three phases. Phase 1 was all about training the middle managers-particularly on the key concepts behind TOC and its use in the context of Sheela Foam's business-and working with them to identify the key performance indicators of the business, and was completed by October 2009.

By phase 2, which they entered in January 2010, the company had already started measuring TP, OTIF, OE and investments based on a standardised set of performance parameters and benchmarks.

Phase 3 ended in April 2010-marking the completion of the project-with the full implementation of the system through 'greatplus', which enabled the broadcast of performance parameters through the 'greatplus' homepage and via SMS to executives, as well as the placement of controls for continual enhancements at any time in future.

Mahkotia tells us that by then, they had already begun to see some returns. "In spite of [the global economic] recession, our Weekly TP increased and our OE was reduced," he says. "Individual departmental or functional performance parameters got aligned

with overall business objectives. All departmental or zonal heads and their staff were brought on one page through the 'greatplus' homepage and via SMS."

The fuller picture is more impressive, of course. "When we adopted the concept of TOC, our average weekly TP went up by about 52 percent and our turnover since then has gone up by 45 percent," Mahkotia says. "We were able to increase the OTIF from 76 percent to 89 percent. These improvements have come [in spite of the global economic] recession and slow down in the market."

"This was possible only due to us having, one-focused weekly monitoring, two-a strong update mechanism, that is, our daily morning SMSes which update all key executives about our business performance, three-the alignment of all our business processes in one direction, and four-bringing the key performance indicators on the home page as a frequent reminder to all personnel at the organisation concerned," Mahkotia says.

"Our OE also dropped by about 5 percent within a year of the project's completion. This was made possible by our business and functional heads ability to monitor OE at weekly intervals," says Mahkotia. "We did not go out there to actively and aggressively try to reduce our operating expenses, which is usually all about cost cutting. Instead, we just monitored them, identified the weakest links that disturbed the TP and fixed them. In some places it was about the market and in some places it was about the product. Our team worked on these weak links and strengthened them."

 

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