STRIVING FOR A BRIGHTER TOMORROW 14 SBUs with Corporate Offices - - PowerPoint PPT Presentation

STRIVING FOR A BRIGHTER TOMORROW

Source : Economic Times Brand Equity

14 SBUs with Corporate Offices & Manufacturing Facilities Industrial Garden Township of 3000 acres in Mumbai 1800 acres of Mangrove Plantation

5 manufacturing locations & 85 major suppliers Unmatched reach 16 Branches & over 700 Dealers Market leader in Furniture Industry with Home, Office Furniture Heading for 2400 Cr + Business in 17-18

ABOUT US

Furniture for all Needs

Challenges faced in VUCA World

Build Internal capability Culture of Continual improvement Transforming Leadership Build Sustainability

Challenges Managing Uncertainty Increasing Automation Pace of innovation Stiff competition from Domestic & International Market Supply chain inefficiencies Shrinking Product lifecycles

RESPONSE REQUIRED

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

High Potential High Impact Low Potential Low Impact High Potential Low Impact

Supplier Mapping Based on Potential V/S Impact

Rationalization of Suppliers

• 1. Increased Share of business to each supplier
• 2. Ease of Deploying common processes
• 3. Reduction in Total Supply Chain Cost

Supplier Base

(Nos)

Procurement Value (Crs) 2007 2017 600 + X

84

10 X

Procurement value share increased by 10 X

• No. of suppliers

consolidated to 1/7th

High Potential- High Impact suppliers were selected for capability enhancement

Winning in the VUCA world- The Godrej Way

Build Internal Capability Culture of continual improvement Transforming Leadership Build Sustainability

Build Internal Capability Culture of continual improvement Transforming Leadership Build Sustainability

• Developing process capabilities

for future success

• Inculcate internal capabilities

among employees

Winning in the VUCA world- The Godrej Way

Building Internal Capabilities

ENHANCE FACILITIES & EQUIPMENTS QC TESTING CONTROLS CRITICAL PROCESS CONTROL ELIMINATE PROCESS INEFFICIENCIES STANDARDIZED PROCESSES

Robust system & Processes

Build Internal Capability

Review for completing certifications Handholding to develop tools, methods, and standard procedures Periodic visits to support the vendors for documentation Periodic reviews by GI Top management to monitor the progress & guiding the vendors Facility visits to map the current processes Incentive For timely achievement

Building internal capabilities:

Developing Robust systems and Processes

Build Internal Capability

Building internal capabilities:

Developing Robust systems and Processes

Build Internal Capability Culture of continual improvement Transforming Leadership Build Sustainability

• Culture of always being

change ready

• Adoption of change

initiatives

Winning in the VUCA world- The Godrej Way

Culture of continual improvement

Building a culture of continual improvement:

Leading towards World Class Manufacturing

Motivated Employee Healthy Equipment Good Manufacturing practices Reliable Quality & Delivery at low cost Competitiveness

Product Quality

• SOP
• Problem solving
• Poka yoke

Equipment Quality

• Model machine
• Break down reduction

Employee Quality TEI

• 3M
• 5S
• Safety mgmt
• Suggestion scheme

Production system Quality

• Shift Mgmt,
• MIS-Key Indicators
• SMED

Culture of continual improvement Getting Together to form a cluster Common classroom training for faster learning Handholding visit to implement the learning from training Guidance by GI top management on Gemba during MRM visit Sharing the ideas during monthly review meeting Rewarding the performers

Getting Together to form a cluster Common classroom training for faster learning Handholding visit to implement the learning from training Guidance by GI top management

• n Gemba during MRM visit

Sharing the ideas during monthly review meeting Rewarding the performers

Building a culture of continual improvement:

Manufacturing Excellence Cluster

Culture of continual improvement

Transformation of Company front…

Removed unwanted material and created space for powder coating process

Transformation Through Space Recovery …

Culture of continual improvement

Sustenance Photo Initial Photo Red Tagged Photo

Red Tag Removed Photo

2S Shining Photo 3S Shining Photo

Transformation of Shop floor through 5S …

Culture of continual improvement

Customer Tolerance to Quality is tending to zero …

Transforming Quality leading to ZERO Defect

Culture of continual improvement

• A. CTQ Mapping and CTQ adherence
• To capture critical parameters to quality
• Implementing 100% inspection system to produce

defect free product

Benefits to Suppliers Benefits to Godrej Interio

75% reduction in ppm rejection 70% of Cluster Suppliers Self certified

• B. Dent, damage & Scrap mapping
• To identify & eliminate potential causes for rejection

due to dent, damage, scrap during handling and transfer from RM stage to FG stage

• C. Packing and Packaging mapping
• To identify & eliminate potential causes of damage

/ rejection due packing & packaging

• D. Proactive visit to customer
• To capture 100% Customer feedback in 4Qs:
• Product Quality
• Delivery Quality
• Service Quality
• communication Quality

Transforming Quality leading to ZERO Defect

Culture of continual improvement

Transforming Delivery leading to 100% OTIF

• A. Planning Improvement
• Production planning board on shop floor
• Daily dispatch plan, OTIF performance trend

Benefits to Suppliers Benefits to Godrej Interio

> 95~98 % 40% Improvement

• B. Changeover time reduction
• Implementing SMED
• Increasing m/c run time
• C. Breakdown reduction
• Implementing autonomous maintenance systems
• D. Material Transfer
• Restricting unnecessary movements
• E. Layout Improvement
• Improved layout as per subsequent operations

Culture of continual improvement

Transforming Cost leading to Increased Competitiveness

• A. Capacity Utilization
• Production planning & Control
• Improving m/c Uptime
• Changeover time reduction: SMED

Benefits to Suppliers Benefits to Godrej Interio

More than 5000 kaizens Avg 50 projects per year

• B. Productivity Improvement
• Identifying and eliminating :
• Muda , Mura , Muri
• C. Continuous Improvement
• Encouraging kaizens
• D. Quality Cost
• Reducing rework
• Reducing defects

Build Internal Capability Culture of continual improvement Transforming Leadership Build Sustainability

• Role of leaders in the
• rganization
• Leap towards business

excellence

Winning in the VUCA world- The Godrej Way

Transforming Leadership

Transforming Leadership

Key Challenges:

• Absence of Leadership Structure
• Absence of Business Planning Process
• Absence of Skill Building Process

Transforming Leadership

Roadmap for Leadership Development

Getting Together to form a cluster Common classroom training for faster learning Individual Guidance to each member by GI Top management for their strategic plans Formal closure of BE Cluster Appreciation of the members for participation Srategic Business plan & Expansion plans were drawn as necessary for 10 x 10 growth Transforming Leadership

Transforming leadership:

Godrej-SME business Excellence Cluster

Transforming Leadership

Individual Guidance to each member by GI Top management for their strategic plans Formal closure of BE Cluster Appreciation of the members for participation

Transforming leadership:

Godrej-SME business Excellence Cluster

Transforming Leadership

Guiding SME’s to define their Mission, Vision and Values

Godrej- SME Business Excellence Cluster

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%

Godrej-SME Business Excellence cluster

Strategic Business Plan

Transforming Leadership

Godrej- SME Business Cluster Godrej- SME Business Cluster

Formalizing Organization structure & Strategy building

Godrej-SME Business Excellence cluster Godrej-SME Business Excellence cluster

Transforming Leadership Mech Tech Industries, Turbhe P M Electro Auto Pvt Ltd, Nasik Prarthana Manufacturing, Khopoli

5 more green field factories under various stages of completion

(1 Platinum rated Green Factory Building of M/s Kashish Panel under completion)

Expansions : 3 Green field Factories

Transforming Leadership

SME STAR ICON-Performance Excellence Recognition 2015-16

Significant Performance Excellence (400-499 Points) – 3 Suppliers Sustained Performance Excellence (500-599 Points) – 2 Suppliers

5 Suppliers Participated

Build Internal Capability Culture of continual improvement Transforming Leadership Build Sustainability

• Green supply

chain

• Technology

coupled with innovation to stay ahead

Winning in the VUCA world- The Godrej Way

Build Sustainability

Energy Efficiency Water Conservation Waste Management Green House Gases Reduction Renewable Energy Material Conservation

Transforming Supply Chain leading to Green

Parameter FY14-15 FY15-16 FY 16-17 FY 17-19 Energy, Water, Waste Base line 15 % over previous year 5 % over previous year 3 % over previous year

2 Training Programs on energy management by CII Faculty

Pledge towards Sustainability…

Green Pledge ( Sept 2015 )

Some of our Sustainability Initiatives…

Energy Efficiency: 27% Reduction in Specific Energy consumption through 53 Projects Water Conservation: 23% Reduction in Specific Water consumption through 37 Projects Waste Management: 17% Reduction in Specific Waste Reduction through 52 Projects Green House Gases Reduction: 4100 trees planted which will offset 105MT CO₂e per year

3.38 Lac KWh energy saved 27.72 Lac Liters water saved 97.3 Ton material saved 207 KW of RE added 941 Ton of CO₂ equivalent GHG reduction 61.4 Lac Saved

Results

Recognition & Rewards for Sustainability Initiatives

Khutale Engineering gets Recognized as “Most Energy Efficient Unit”, Hyderabad Sept’ 2017

2 Platinum, 2 Gold, 5 Silver Awards

Building Sustainability through Digital Transformation

Need for Digital Transformation

Lack of transparency Ineffective decision making Less responsive supply chain Operational inefficiencies Top management role restricted to monitoring rather than strategy building

Stores

• Material Receipts
• Updated stocks

Production planning

• Add customer orders
• Place PO to suppliers

Suppliers

• Visibility to production schedule
• Plan deliveries

Production

• Production scheduling
• Plan Vs Actual status

Dispatch

• Execute dispatches
• Vehicle tracking

Godrej

• Live Order status at various

stages of completion

Cloud based Mobile App

A pilot project with one of our tech savvy supplier`

• 1. Increased Transparency 2. Real-time insights & decision making 3. Improved production planning
• 4. Faster deliveries 5. Operational Excellence 6. Freed up CEO’s bandwidth from monitoring

to strategy building

Enhance Technical Capability Enhance Managerial Capability MIS & Key Indicators IT enabled Dashboard Evaluating & Recognizing Consolidate Vendor Base

OPTIMISE DIGITIZE

Vendor Rationalization Framework BS Supplier Excellence Rating Manufacturing Excellence

Leveraging “Digital” to sustain gains

Business Excellence

Build Sustainability Supplier Performance Supplier Potential Disengage Collaborate to excel Strategic Partnership

BS Supplier Excellence Rating System

Low Low High High 3- Tier Excellence Rating

Godrej-SME relationship towards Strategic Partnership

IN TOUCH RESOUCRCE SHARING INFORMATION SHARING CONSULTING CO-DECISION MAKING CO-PROBLEM SOLVING CO-CREATING

Transactional Essential Preferred

5 % 35 % 60 % 60 % 35 % 5 %

2007

Transactional Essential Preferred

2017

Strategic Partnership

Not even best seeds and best fertilizers will give good crops if the soil is not nurtured well. Similarly, we are nurturing SME’s to enhance their capabilities to thrive in this VUCA world