Abstract
ABC co. was established in Delhi in 1980, which produced electrical switchgears & appliances. The company had manual operations initially; quality was not a thrust area having about 16% process rejections. The demand for electrical appliances/switchgears was rising with increase in urbanization/ construction activities. The warranty return was as high as 6% and more competitors entered in the market making it difficult to improve sales. After brainstorming session, management implemented various techniques of TQM tools (5S, SQC, TPM, etc.). Investment in new technology including installation of few new machines and few low cost automation of equipment was made.ABC co. expected the payback period of three years for the new installed capacity. The internal rejections came down and as also cost and thereby market demand rose significantly. The major contribution was: a) Improving quality, b) Inventory reductions, c) BOM cost reduction, d) reduced order to supply time.
Highlights
Mr A B Chand, presently Chairman of ABC Company (ABC co), thought of starting one dealer shop of electrical products in Chandini Chowk, Delhi in early seventies
The results showed that lean manufacturing adoption has a strong association with the integration of information flows and external suppliers
System has been introduced and implemented with ongoing efforts, demonstrated that framework for vendor selection/ assessment/ up gradation and Quality improvements has been developed for other companies to follow similar practices to bench mark with that of ABC co standards : PO Time: The order to delivery time has decreased by: more than30%
Summary
Mr A B Chand, presently Chairman of ABC Company (ABC co), thought of starting one dealer shop of electrical products in Chandini Chowk, Delhi in early seventies. There was no looking back from 1983 when they set up units in Faridabad and later in Sahibabad for energy meters, switches and starters. This was the time when management of the company was gradually shifting its focus from a family owned (for ten years) to professionally driven organization. Most of the professionals were recruited from 1996 onwards in all major functional areas viz, marketing, production, factory operations, quality control and financial management. ABC Co was popular in Northern India for electrical requirements. It has been slowly growing in terms of sales and footprints across all the four regions in India.
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