Sukesh Ned presents to Cumberland Business Chamber members how to optimise warehouse productivity via: - industrial engineering techniques - automated processes - staff redeployment and other techniques in April 2015

1. 22nd April 2015
Sukesh Ned
Turnaround Services Global
Business Breakfast session

2. Global middle class is growing
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
2002 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028
WorldPopulation(millions)
Rich Middle Class PoorSource: Brookings Institution

3. Cost competitiveness is shifting

4. In Australia
Average age is increasing 1 in 4 were born overseas
PROJECTED POPULATION AGED 65 YEARS AND OVER
-50% 0% 50% 100% 150% 200% 250%
UK
New Zealand
China
India
Italy
Vietnam
Germany
Relative Absolute
Source: ABS
Source: ABS 2013

5. Changing landscape
DEMOGRAPHICS
SUPPLYCHAIN
TRADE &
BANK
?

6. Embrace the change
RUN FASTER
STAY ALERT
LEAP AHEAD

7. Deepen customer insights
UNDERSTAND OBSERVE EXCITE
Listening to your
customer
Make your
customer talk
Observing how customer
uses products
- Pre-use
- During use
- Post use
Identifying how value
could be added through
- Physical
- Emotional means
Enhance Value
Thinking from
customers and
their customers’
viewpoints to
enhance value

8. Monitor and reduce costs
LAYERS OF
INEFFICIENCY
Costs of
• Low productivity
• Defects / Damages
• Rework
• Under utilisation
• Excess design
COST BAND
CORE COSTS

9. Improve order fulfilment
• How to improve your order fulfilment by 15% to 20% ?
• Reduce stock out of frequently ordered products
• Monitor sales pattern and product mix
• Improve manufacturing lead time for make–to–order
products

10. Reduce cash flow
• How to reduce your inventory by 15% to 20%
• Use ABC / FSN analysis for products
• Optimise safety stocks and reorder quantities
• Monitor inventory periodically

11. Customer Story
Dynamo & Lamp manufacturer
Quick Facts
• Dynamo and lamp manufacturer for
bikes
• 120+ employees including contract
labour
• 50+ saleable SKUs with 350+ variants
• Semi-automatic assembly operations
• Under-utilisation of high value asset
capacities
• Higher work-in-process inventory at
certain workstations
• Stock-out of certain variants and over
inventory of others
• Sub-contracting of intermediate
operations
• De-bottlenecking of workstations resulting in reduced WIP and cluttering
• Increased production by over 25% with the same machines and employees
• Reduced utilisation for bottleneck workstation resulting in over 12% cost savings
• Optimum product mix ratio of variants resulting in no stock outs and FGI.
• 12 % improvement in customer returns due to better quality control of operations
Key Challenges
Strategic, Financial & Operational Benefits

12. Thank you
Turnaround Services Global
PO Box 566, Sydney, NSW 1235
Innovation is The Heartbeat Of Business