STRIVING FOR A BRIGHTER TOMORROW
14 SBUs with Corporate Offices & Manufacturing Facilities Source : Economic Times Brand Equity Industrial Garden Township of 3000 acres in Mumbai 1800 acres of Mangrove Plantation
ABOUT US Market leader in Furniture Industry with Home, Office Heading for 2400 Cr + Business in 17-18 Furniture 5 manufacturing locations & 85 major suppliers Unmatched reach 16 Branches & over 700 Dealers
Furniture for all Needs
Challenges faced in VUCA World Build Internal Managing capability Uncertainty Shrinking Increasing Product lifecycles Automation Culture of Continual improvement RESPONSE REQUIRED Challenges Transforming Leadership Supply chain Pace of inefficiencies innovation Stiff competition from Domestic & International Build Sustainability Market
Challenges to Godrej due to Unorganized Supplier base
Beyond Sourcing Build Supplier capability Take relationship beyond transactions Create value proposition for both Godrej Interio & Suppliers
Rationalization of Suppliers Supplier Mapping Based on Potential V/S Impact 2007 2017 High Potential Supplier Base High Impact 600 + 84 Procurement value share (Nos) increased by 10 X No. of suppliers consolidated to 1/7 th Procurement Low Potential High Potential 10 X X Value (Crs) Low Impact Low Impact High Potential- High Impact suppliers were selected for capability enhancement 1. Increased Share of business to each supplier 2. Ease of Deploying common processes 3. Reduction in Total Supply Chain Cost
Winning in the VUCA world- The Godrej Way Culture of continual Transforming Build Build Internal improvement Leadership Sustainability Capability
Winning in the VUCA world- The Godrej Way • Developing process capabilities for future success • Inculcate internal capabilities among employees Culture of continual Transforming Build Build Internal improvement Leadership Sustainability Capability
Building Internal Capabilities QC TESTING CONTROLS STANDARDIZED PROCESSES CRITICAL PROCESS CONTROL ENHANCE FACILITIES & EQUIPMENTS ELIMINATE PROCESS INEFFICIENCIES Robust system & Build Internal Processes Capability
Building internal capabilities: Developing Robust systems and Processes Facility visits to map the current Handholding to develop tools, processes methods, and standard procedures Incentive For timely Periodic visits to support the achievement vendors for documentation Periodic reviews by GI Top Review for completing management to monitor the progress certifications & guiding the vendors
Building internal capabilities: Developing Robust systems and Processes Build Internal Capability
Winning in the VUCA world- The Godrej Way • Culture of always being change ready • Adoption of change initiatives Culture of continual Transforming Build Build Internal improvement Leadership Sustainability Capability
Building a culture of continual improvement: Leading towards World Class Manufacturing Reliable Product Quality •SOP Quality & Delivery •Problem solving at low cost •Poka yoke Production system Quality Good Manufacturing Competitiveness •Shift Mgmt, practices •MIS-Key Indicators •SMED Equipment Quality Healthy •Model machine Equipment •Break down reduction Employee Quality TEI Motivated •3M •5S Employee •Safety mgmt •Suggestion scheme Culture of continual improvement
Building a culture of continual improvement: Manufacturing Excellence Cluster Rewarding the performers Sharing the ideas during monthly review meeting Guidance by GI top management on Gemba during MRM visit Handholding visit to implement the learning from training Common classroom training for faster Handholding visit to implement the Getting Together to form a Guidance by GI top management Sharing the ideas during Common classroom training for Rewarding the performers learning from training cluster on Gemba during MRM visit monthly review meeting faster learning learning Getting Together to form a cluster Culture of continual improvement
Transformation of Company front… Transformation Through Space Recovery … Culture of continual improvement Removed unwanted material and created space for powder coating process
Transformation of Shop floor through 5S … Red Tag Removed Photo Initial Photo Red Tagged Photo 2S Shining Photo 3S Shining Photo Sustenance Photo Culture of continual improvement
Transforming Quality leading to ZERO Defect Culture of continual Customer Tolerance to Quality is tending to zero … improvement
Transforming Quality leading to ZERO Defect A. CTQ Mapping and CTQ adherence B. Dent, damage & Scrap mapping • • To capture critical parameters to quality To identify & eliminate potential causes for rejection • Implementing 100% inspection system to produce due to dent, damage, scrap during handling and defect free product transfer from RM stage to FG stage C. Packing and Packaging mapping D. Proactive visit to customer • • To identify & eliminate potential causes of damage To capture 100% Customer feedback in 4Qs: • / rejection due packing & packaging Product Quality • Delivery Quality • Service Quality • communication Quality Benefits to Suppliers Benefits to Godrej Interio 70% of Cluster Suppliers 75% reduction in Culture of continual Self certified ppm rejection improvement
Transforming Delivery leading to 100% OTIF A. Planning Improvement B. Changeover time reduction • • Production planning board on shop floor Implementing SMED • • Daily dispatch plan, OTIF performance trend Increasing m/c run time C. Breakdown reduction D. Material Transfer • • Implementing autonomous maintenance systems Restricting unnecessary movements E. Layout Improvement • Improved layout as per subsequent operations Benefits to Suppliers Benefits to Godrej Interio Culture of continual > 95~98 % 40% Improvement improvement
Transforming Cost leading to Increased Competitiveness A. Capacity Utilization B. Productivity Improvement • • Production planning & Control Identifying and eliminating : • • Improving m/c Uptime Muda , Mura , Muri • Changeover time reduction: SMED C. Continuous Improvement D. Quality Cost • • Encouraging kaizens Reducing rework • Reducing defects Benefits to Suppliers Benefits to Godrej Interio More than 5000 Culture of continual Avg 50 projects per year kaizens improvement
Winning in the VUCA world- The Godrej Way • Role of leaders in the organization • Leap towards business excellence Culture of continual Transforming Build Build Internal improvement Leadership Sustainability Capability
Transforming Leadership Key Challenges: • Absence of Leadership Structure Transforming • Absence of Business Planning Process Leadership • Absence of Skill Building Process
Roadmap for Leadership Development Transforming Leadership
Transforming leadership: Godrej-SME business Excellence Cluster Appreciation of the members for participation Formal closure of BE Cluster Srategic Business plan & Expansion plans were drawn as necessary for 10 x 10 growth Individual Guidance to each member by GI Top management for their strategic plans Common classroom training for faster learning Getting Together to form a cluster Transforming Leadership
Transforming leadership: Godrej-SME business Excellence Cluster Individual Guidance to each member by GI Top Formal closure of BE Cluster Appreciation of the members for management for their strategic plans participation Transforming Leadership
Guiding SME’s to define their Mission, Vision and Values Godrej- SME Business Excellence Cluster Transforming Leadership
Godrej-SME Business Excellence cluster Strategic Business Plan 2016-17 2017-18 2018-19 2019-20 2020-20 2020-21 Growth Plan-Revenue Rs 22 Cr 30 Cr 40 Cr 60 Cr 80 Cr 100 Cr Share of Business-Existing Customer(s) % 85% 80% 75% 75% 70% 70% Share of Business -New Customer(s) % 15% 20% 25% 25% 30% 30% Share of Business from Furniture sector(Current sector) 90% 90% 85% 85% 80% 80% Share of Business from New Sector 10% 10% 15% 15% 20% 20% Share of Business from Furniture sector(Current sector) Existing Products 90% 90% 85% 80% 75% 70% New Products 10% 10% 15% 20% 25% 30%
Formalizing Organization structure & Strategy building Godrej- SME Business Cluster Godrej-SME Business Excellence cluster Godrej-SME Business Excellence cluster Godrej- SME Business Cluster Transforming Leadership
Expansions : 3 Green field Factories Mech Tech Industries, Turbhe P M Electro Auto Pvt Ltd, Nasik Prarthana Manufacturing, Khopoli 5 more green field factories under various stages of completion Transforming (1 Platinum rated Green Factory Building of M/s Kashish Panel under completion) Leadership
SME STAR ICON-Performance Excellence Recognition 2015-16 5 Suppliers Participated Significant Performance Excellence (400-499 Points) – 3 Suppliers Sustained Performance Excellence (500-599 Points) – 2 Suppliers Transforming Leadership
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