Thyssen Internship Final Presentation
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1
Reviewing and optimizing the order process cycle and normalizing the sales curve
Agenda
Calculating the response time of each function in the process. Identifying reasons for the delayed response time and Measures to reduce the
same. Studying reasons for non-uniform sales in the month for the determined time
duration and measures to stabilize the same.
Flow of the project DMAIC
Define numerical definition of project scope, objectives and constraints
Measure capability of current process performance, comparing with the benchmark
Analyze the problems to find out root causes Improve… identify potential solutions Control the performance to continue to achieve higher results
3
Define
Reviewing the process flow from checklist to Order Confirmation generation.
Process Flow Identifying the chronic defaulters, Top reasons for the process delay and
suggesting measures to bring down the process time from the current average.
Order Management
Quality Assurance Department
Production planning control
Credit Control
Purchase Order
Work Order
Measure To calculate the response time starting from checklist to Order Confirmation
generation
To study orders in totality which have taken both more and less than 4 working days to get executed categorizing as Ideal, high and extreme and find a trend among them.
To calculate the average response time of each function against the ideal time and computing their standard deviation.
Correlation co-efficient of each department with the total response time.
RESPONSE TIME is the difference between the time taken from the receipt of Order to release of Order Confirmation.
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MeasureFunctions Average Response
time of total work orders
Average Response time of delayed work orders
Correlation with the delay response
Order Management
0.86 days 2.89 days 0.29
Quality Assurance Department
0.99 days 2.40 days 0.35
Production Planning and Control
1.79 days 3.60 days 0.75
Credit Control 1.71 days 2.16 days 0.05
Purchase Order to Work Order
4 days 9.33 days
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Analyze Analyzing the delay response wrt variables as Customer, Grade, Product,
and region to be delivered by sorting the top defaulters.
Calculating the percentage delay of each item among the assortment as well the average process time of each assortment.
Identifying the top 5 reasons for delay of each department for the work order delayed by them.
Thus identifying the top 5 reasons as a whole.
The time frame for the analysis is from October 2007 to May 2008
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Customer
8
VA
TE
CH
HY
DR
O IN
DIA
PV
T LT
D
BH
AR
AT
HE
AV
Y E
LEC
TR
ICA
LS LT
D.
BH
AR
AT
HE
AV
Y E
LEC
TR
ICA
LS LT
D H
BH
AR
AT
HE
AV
Y E
LEC
TR
ICA
LS LT
D-B
Crom
pton Greaves Lim
ited
CR
OM
PT
ON
GR
EA
VE
S LT
D.(S
D)
AD
OR
WE
LDIN
G LIM
ITE
D
BE
ST
EN
GIN
EE
RS
PU
MP
S P
VT
LTD
.
KA
PS
ON
S IN
DU
ST
RIE
S LT
D
LAR
SE
N &
TO
UB
RO
LIMIT
ED
PR
EC
ISIO
N S
TA
MP
ING
UN
IT-II
Tem
pel Precision M
etal Product
PR
ES
SM
AT
IC E
LEC
TR
O -
KA
YT
EE
SW
ITC
HG
EA
R LT
D.;
PIT
TI LA
MIN
AT
ION
S LIM
ITE
D
SIE
ME
NS
LIMIT
ED
SIE
ME
NS
LTD
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0
2
4
6
8
10
12
14
16
10.5
14
5.5
8.71
4.34.95
4.33.4 3.5 4
3 3.452.913.294.39
3.6 3.5
Delay Percentage
Average process time
Grade
9
GR
-1000
50C350
50C400
50C630
65C530
50C470-A
P
D
Pow
erCore C
140-27
50C470
50C800
50C530
Pow
erCore C
120-27
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
47.0641.94
22.97 21.62 20.83 18.75 18.64 17.65 16.33 14.81 13.64 13.64
6.68 6.52
3.81
3.113.42
4.38
3.76 3.82
3.37
2.48
3.47
2.86Delay Percentage
Average Process Time
Product
10
CR
FH
PO
LE S
HE
ET
NG
O F
P H
S
CR
CA
NG
O F
P LS
NG
O F
P M
S
NG
O S
P
CR
GO
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0.00
2.00
4.00
6.00
8.00
10.00
12.00
14.00
16.00
18.00
Delay Percentage
Average Process Time
Region
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IND
OR
E
CO
IMB
AT
OR
E
FA
RID
AB
AD
JALA
ND
HA
R
VA
DO
DA
RA
MU
MB
AI
BA
NG
ALO
RE
HY
DE
RA
BA
D
PU
NE
BA
LLAB
HG
AR
H
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
100.00
0.00
1.00
2.00
3.00
4.00
5.00
6.00
7.00
8.00
46.05
32.1429.17 27.27 25.00 23.73
16.67 16.1610.75 9.09
7.38
4.68
3.96
3.32
4.48
3.893.40 3.57
2.962.59 Delay Percentage
Average Process Time
Delay reasons
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Delay reasons
13
PO not available56%
PO not clea
r12%
Price Revision23%
Prioritizati-on of cus-tomers
9%
Top OM Delay Reasons
Application of ma-terial
3%PO not clear
3%
Produc-tion Con-
straints4%
Specifica-tion ( T/
W/L)49%
Surface critical
18%
Tdc 24%
Top QAD Delay Reasons
Delay reasons
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Availability of RM34%
Ex-stock
8%
Low Order Quantity
27%
Pro-duction Con-straint
8%
Wrong Coil Weight
22%
Top PPC Delay Reason
Advance Payment47%
Not receipt of PDC for previous sup-
plies27%
Overdue20%
Payment Term credit period
7%
Top CC Reasons
Observations OM:
Due to concerns with the check list the preparation of the same is being taken care by the OM team rather than the sales office.
Lack of clarity in the PO has been one of the issues for the delayed response time.
Delay caused due to prioritization of customers is currently being reverted back from the PPC dept.
OC: Ex-stock status is not available with OM. Low order quantity and wrong coil weighted
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Observations
QAD: Lack of clarity in the specifications and clarification process takes a lot
of time. There is inconsistency between the P.inquiry and P.O. They
Prefer verifying with the company regarding the TDC.
CC
Non-receipt of PDC for current supply.
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ImproveOld Procedure New Procedure
Tdc is usually not attached by OM Tdc to be mandatorily attached before order is logged from OM
Reasons along with the order log is usually edited by the concerned Departments
Every corresponding delay should carry a reason and all the logs should be retained
Non-clarity of PO is major reasons for delay
Verification of PO from the customer at the sales end will expedite process
Separate functions working independently Integration of departments similar to supply chain can give us Reduced lead time and shift load, Information flow, better service and flexibility
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Define
Studying reasons for non-uniform sales in the month for the determined time duration.
Identifying reasons for the concern. Identifying a relation between the order confirmation cycle and the sales
delivery pattern The time frame for the analysis is from October 2007 to May 2008
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Measure
Primarily the complete sales data was segregated fortnightly.
Measured the order count and quantity of all the customers for the first and last fortnight.
Accordingly top 20 customers were sorted wrt percentage of orders placed in the first and last fortnight.
We used the weighted average method to determine the average OC date of the first and last fortnight.
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Month of Invoice Weighted Average OC date for the first fortnight
Weighted Average OC date for the last fortnight
Oct-07 10-Sep-07 23-Sep-07
Nov-07 12-Oct-07 9-Oct-07
Dec-07 27-Oct-07 6-Nov-07
Jan-08 2-Dec-07 12-Dec-07
Feb-08 2-Jan-08 22-Jan-08
Mar-08 28-Jan-08 29-Jan-08
Apr-08 1-Mar-08 23-Mar-08
May-08 1-Apr-08 7-Apr-08
Relation between OC generation date and Dispatch date
Analyze
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12 1924 84 56 10 25 182 21 56 111 516 74 48 51 107 34 15 116 131
0 04 18 14 3 8 68 8 24 51 238 35 24 26 57 19 9 72 83
Dispatch Count (1-15)Dispatch Count (16-31)Quantity
Observation
44% of dispatch in 1st fortnight and 56% in 2nd fortnight
WO of majority of these companies are generated in the 2nd fortnight.
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Conclusions
Better planning possible if OC generated in 1st half the month.
Will reduce undue pressure during the month end.
23
THANK YOU
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