Some organizations in equipment manufacturing space have been able to create a harmonious supply chain with near perfect parts availability at reduced inventory , while releasing capacity of sales for customer acquisition.

1. Equipment
Manufacturing
Unresolved Conflicts

2. Copyright © 2015 Vector Consulting Group. All rights reserved.
A typical company in the
equipment manufacturing
industry deals with following
chronic conflicts

3. but very long lead
time to deliver other
equipment
High FG inventory of
equipment which are not
immediately wanted
despite having a
separate team for supply
chain management
Most of the sales capacity
in branches is used up in
material follow up
Copyright © 2015 Vector Consulting Group. All rights reserved.
despite having high non-moving
inventory of spare parts
Frequent complains
for delayed services

4. Copyright © 2015 Vector Consulting Group. All rights reserved.
High parts inventory but the assembly never has all the parts
required on the daily basis.

5. Copyright © 2015 Vector Consulting Group. All rights reserved.
Some organizations in equipment
manufacturing space have been able to
create a harmonious supply chain with
near perfect parts availability at reduced
inventory , while releasing capacity of
sales for customer acquisition.

6. Case Studies
1. KOEL
2. Godrej Securities
3. Godrej MHE

7. Copyright © 2015 Vector Consulting Group. All rights reserved.
Kirloskar Oil Engines Ltd.
(KOEL)
KOEL is the flagship company
of the Kirloskar Group.
Have four state of art
manufacturing units in
India that offer world
class service.
KOEL is an
acknowledged leader in
the manufacturing of
diesel engines,
agricultural pumpsets
and generating sets.

8. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Kirloskar Oil Engines Ltd.
Indicators Before (March 2013) After (March 2014) Remark
Debtors
(Receivables)
~ USD 12 Million ~ USD 4 Million Reduced by 67%
Inventories ~ USD 14.6 Million ~ USD 12.5 Million Reduced by 15%
Credit Days
(G-OEMs)
21 Days 7 Days Reduced by 67%
Cash to Cash Cycle
[Payables - (Inventory
+ Receivables)]
Cash Negative Cash Positive Cash Rich
Availability of
engines at G-OEMs
~ 78% on Daily Basis ~ 99% on Daily Basis
Order to Dispatch
(Ex-works)
35 - 45 Days ~ 7 Days Reduced by 80%

9. Copyright © 2015 Vector Consulting Group. All rights reserved.
Godrej Security Solutions
Godrej Security Solutions is a
company in India that provides
mechanical & electronic security
systems for banks, offices, homes;
CCTV cameras & more.
Offers diverse security
product solutions including
technologically advanced
sphere like cameras,
substance detectors, X-ray
baggage, scanners,
biometrics & access control
systems , burglary & fire
resistant safes, road blockers,
marine solutions etc.
The plant in Mumbai is rated
as one of the finest and
largest factories in India.

10. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Godrej Security SolutionsThe first
2 years, the profits
increased by
and has quadrupled
in the 3rd year
3 times
The sales
has also doubled in
3 years
The
profitability
has increased
significantly, while
ROCE has
tripled

11. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results (Institution Business)
Godrej Security Solutions
Output
in the plant almost
tripled, and this has
been achieved with
significant reduction in
overtime and with the
least addition of
manpower
Lead time
to customers
reduced by 50%,
while variability in
lead time reduced
seven times
On time
performance
improved to more
than 90%, while the
production lead time
reduced by over
50%
Work
-in-progress
inventory reduced
by more than 50%
and finished goods
stock reduced
by 50%
Rate of
new product
introduction
increased by
200%

12. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results (Retail Business)
Godrej Security Solutions
Number
of distributors
have almost tripled,
along with doubling
of range at the
distributor
Availability
of all items is in the
range of
90%Number
of retailers
increased four
times, along with
doubling of
range at the
retailer

13. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results (Overall Business)
Godrej Security Solutions
Profitability has
almost
tripled

14. Copyright © 2015 Vector Consulting Group. All rights reserved.
Godrej Material Handling
Equipment
Established in 1963 and part of
Godrej & Boyce Group, GODREJ-
Material Handling Equipment, is
India’s largest lift truck
Manufacturer.
The Forklift range of
the company includes
electric, LPG and diesel
counterbalanced
forklifts up to 25 ton
capacity, warehouse
trucks and special
trucks for specific
applications

15. Copyright © 2015 Vector Consulting Group. All rights reserved.
Results
Godrej Material Handling Equipment
Area Parameter Improvement
Operations
On-Time Performance Now 85%
WIP in Days Reduced by 33%
Output (Export Line) Increased by 54%
Output (Domestic Line) Increased by 24%
Manpower Productivity
(Mandays per Truck)
Increased by 10%
FG (count) Reduced by 75%
Purchase
RM Availability Now 97%
RM Inventory (Rs. Cr.) Reduced by 17%
RM Inventory (in Days) Reduced by 44%