The document summarizes a case study about a company called Mebrisk India that underwent changes to its operations and supply chain management over time. It describes the company's conditions before and after the director Parthiv Vyas implemented a "Plan Revamp" in 1997-1999 to improve coordination between suppliers, production, and sales. The new director Kevin Mathais questions whether the changes were necessary. The case examines whether further changes should be made or if the original revamp should be maintained, and how to best achieve coordination between all parts of the supply chain in a dynamic environment.

1. CHANGE: TO BE OR
NOT TO BE
Amit Manwade AM-304
Milind Gokhale AM-317
Nilesh Kataria AM-320
Pratik Sharma AM-323
Rajavardhan Reddy AM-328

2. Agenda
 Case
 Facts and Interpretations
 Unknowns and assumptions
 Problem Statement
 Probable Solutions
 Best Solution and justification
 Learnings / Takeaways

3. Overview
Entities in the case :
 Mebrisk India – An FMCG Company
 Adip Arya – Assistant Manager (commercial)
 Kevin Mathais – New Director of operations of
Mebrisk India
 Hemant Trivedi – Adip’s boss and GM
(commercial)
 Parthiv Vyas – Old Director of Operations and
Finance of Mebrisk India before Kevin

4. Overview
Scenes:
 Adip and Kevin debated and argued for 3 days
over why “Plan Revamp” was done and was it
worth?
 Adip meets Hemant for guidance
 Hemant starts explaining the need for Plan
Revamp then
 Adip also remembers last 3 years and his effort in
implementing “Plan Revamp” initialised by old
director of Mebrisk – Parthiv Vyas
 Hemant explains to Adip the need for Change and

5. Company Conditions
 Before Parthiv Vyas (Before 1997):
 Tug-of-war between sales and production
 The Performance parameters of the company include – Man hrs per
tonne, Machine hrs per tonne, idle capacity reduction.
 Factories produced what they desired irrespective of what market
needed, giving more focus to performance indicators.
 Difference between sales forecasts and actual sales used to be 60%.
 Unsold stock pile up in company’s inventories.
 Closing stock of large packs while demand is unmet for smaller pack
sizes of products.
 Commercial dept. playing as a mute moron in the company.
 Working capital was 33% of turnover.
 There was no flow of information between teams and lack of a system for
faster data collection.

6. Company Conditions
 1997 – 1999 [Changes during Parthiv Vyas]
 Zero/negative working capital
 JIT inventory at all factory locations and vendor supplied
management
 Putting in place an information system to collect and report daily
sales, daily stocks, supplier positions in real-time.
 Wiring the entire company (Costly V-Sat connections).
 Daily production planning.
 Establishment of ZSPs (Zonal Stock Points) and managing ad-
hoc sales requirement.
 Disadvantages:
 It increased management cost
 The IT implementation and wiring was very costly during the time
when it was undertaken.

7. Company Conditions
 2000 and onwards [Kevin Mathais point of view]
 The Plan Revamp was indeed very costly and
unnecessary.
 With working capital reduction, space should also be
reduced.
 No need of stockpiling items at ZSPs. Move it to
stockiests or factories.
 Move production planning back to the factory.
 Sales should not tell manufacturing, what to produce
and how much to produce.

8. Facts and Interpretations
 The company had spent 17 Crores on the plan revamp
 Parthiv vyas came from a company which had commercially driven
environment (Delaware)
 Tug-of-War every year between sales and production depts. -
Interpretation Commercial dept needed to be active.
 The production and sales plans not in sync
 Performance parameters followed in the company in factories : man
hours per tonne, machine hrs per tonne and idle
 capacity reduction. - Interpretation - The focus was on man hrs per
tonne in the factory and thus the factory produced what they wanted
irrespective of the market need. [Performance indicators were given
more preference over stocks/inventory Reduction]
 Things implemented by Parthiv vyas in Plan Revamp were : Zero or
negative working capital, - JIT inventory management, connect
everyone (factories, depots, regional offices, head office) for the
faster data flow. through VSat connections, Daily Production
Planning.

9. Ground Realities - Unknowns and
Assumptions
 Who will be managing the zonal offices –
Company itself or some intermediary party.
Assumption is that the ZSPs were managed by
company.
 When Kevin suggested to move all stocks
directly to Stockiest (who is a third party
person), it was assumed that they will simply
accept it to keep a big chunk of stocks.

10. Problem Statement
 How to achieve the co-ordination between
suppliers, production unit and sales in a
dynamic environment?
Was Plan revamp undertaken by the company, a
complete waste?
To change or not to change further to the
revamps put in with great efforts?

11. Solution: Auto Replenishment
 Have the stocks stored at distributors.
 Production unit will be aware of the inventory
position at the stockists.
 Sales will forecast the requirement in details
like packaging, product sizing, product
variances demand and provide it to the
production team.
 On the basis of above production team will
prepare the production plan.
 This can be achieved through end-to-end
communication using IT.

12. Top 3 learning / takeaways
 Business strategy should be market driven.
 Change is inevitable in order to adapt to the
changing environment.
 Transition from one state to another should be
smooth.

13. Thank You
Amit
Manwade
AM-304
Milind
Gokhale
AM-317
Pratik
Sharma
AM-323
Nilesh
Kataria
AM-320
Rajavardhan
Reddy
AM-328