Small and Medium scale Business Show case organiszed by Asian Productivity Organization

1. Driving business growth through
Supply Chain practices
Hants Group
Wattala
Sri Lanka
An ISO 9001:2008 certified company
Nelun Anthony

2. Hants Group
Company Profile
• Year of Establishment – 1981
• No of employees - 220
• Major customers – Local/Exports
• Main products – Polyurethane foam
mattresses/Expandable Polystyrene products

3. Our Vision
To be Excellent in everything we do
Our mission
To be a 1billion operation by 2017
•Enhance market
share by 2017
•Evolve SC
•Diversification
•T &D
•Compliance
•Rewards night
•Enhance
Profitability
•Enhance financial
capability
•ISO 9001:2008
•Challenge
National Awards
Internal Financial
Customer
ProductPeople

4. What is a supply chain
“As the economy changes, as the competition becomes more global,
it’s no longer company versus company but supply chain versus supply chain”
Harold Sirkin (VP, Boston Consulting Group)
Information
Material
FundsSupplier
Customer

5. Problem contents before
implementation
High cost of
production/distrib
ution
Inter /cross functional
departmental issues
Poor on timely
delivery
High Inventory of FG
Loss opportunities

6. Objectives of setting up
a one chain Supply Chain
By providing the merchandize at the right location at the right
time at the right price and right quality.
JIT
Cultural
Change
Increased
OEE/Effciency
Reduced
system cost
Reduced
inventory
RFT
Customer Satisfaction

7. Transformational Journey
Top
management
commitment
Effective
communication
Capability
Development
Employee
Engagement
Reward &
Recognition
Burning Platform
High % of machine Breakdown
Long lead time
Non availability of raw material on time

8. Supply Chain Dash Board
Customer
service level
Supplier
savings and
service level
Cost of
distribution
Plant
efficiency/OEE
Acceptable
Quality Level
Employee
Happiness

9. Capability development
• Problem solving
techniques
• Need based training
• TL development
Skill training record Trainee: Anton
Trainer: Rohitha
Job Breakdown Sheet Date
Operation - Tape edge - HM 6/7 TT:
10min (Polylex) AQL : 98%
Month of September
12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
A. Basic Knowledge of machine
1 Parts & their role
2 Threading - Top & bottom / fixing tape
3 Tension setting
5 Setting table
6 Confidant in handling machine
7
Maintenance - Daily lubri: / Weekly
lubri:
8 Electrical
9 Routing maintenance / JH / Recording
B. Basic Knowledge on Accessories
10
Foam types vs mattress types (Spring
& all foam)
11 Mattress tape
12 Stickers
13 Labels
14 Ventilation
15 Handles
16 Fabric types / Quilted
17 Trim card
C. Measurement
18
Foam & assembled spring unit - before
finishing
20
Placement - Label & Stickers / Handles
/ Ventilators
C. Preparation for sewing
21 Reading job card
22 Selecting bundle
23 Fixing border panel
24
Stitching top & bottom panels + end
knot & with 2” overlap
25
Quality check - straight line sewing/ no
slips
26 Quality check - Corners
27
Quality check - fabric-foreign
matter/quilt
28 Fixing and quality check on accessories

10. Open door
communication • Family culture
One to chat • Build up an EBA
Gemba culture
• Communication
at the place
Meeting standards

11. Employee Involvement/Overlapping areas
between programs
TQM
TPM
Kaizen/QCC
5S

12. Continual Improvement
5S/Kaizen/QCC

13. Continual Impovement
TPM/TQM
Jishu Hozen- Autonomous maintenance
One point Lesson

14. TPM – RCO/SMED Rapid mould
change over

15. Benefits
Intangible
• Embracing cultural Change
• Empowerment of
employees
• Commitment of top level
management
• Creating awareness and
learning organization
• Pleasant working
environment
Tangible
• Reduction of inventory cost
from 67m to 49m
• Reduction of overhead cost
by 13%
• Improved lead time from 7
days to 3 days.
• Customer case fill on time
at 97%

16. Evolution of Lean Supply Chain
Unmask the hidden factory and Back office
Eliminate non value added activities
Seeing Waste – Improve Flow
Reduction LT from order to cash
Minimize inventory and reduce cost
5W 1H – ECRS frame work
Waste watcher teams - ownership
VSM
Standard
work
5SLean Culture, Respect/Develop Genba’s idea and mentality

17. Project Title: Project Objective: Process: “Comfilux”production
Reduce lead time in the Enhance capacity by 50% to meet the current demand
value chain from 5 days Reduce OT cost & eliminate muda in the value stream
to 3 days & reduce labour No: of people: - 11
cost.
Before After
Line balancing
VSM
Std work
ROL/BOM
Kanban
•No sense of takt time
•RM stock out days
•No smooth consumable flow
•Muda in the information flow
Anticipated Savings Potential
Production Volume USD29,531
increase by
200 mattresses
OT saving
(9 associates) X 3h/day
USD 1,650
Less 2 assocates USD 2,438
Total approx USD33,619
Foam
slitter
Fabric
cutting
flanging
sewing Spring unit
fabrication
Packing
Spring unit
assembly
Fabric
cutting
flanging
Sewing
Packing
Despatcharea
FG area
0
5
10
15
20
25
30
TT -!6.8min
Av.time-7h/demand – 25Nos/day
Stage 2 – lay out change
0
2
4
6
8
10
12
14
16
18
Capacity increase
Before

18. Our Dream
We want to be a world class company by 2020
Quality Cost Delivery