Triveni Group Case Challenge IIM Indore PGP Mumbai

Triveni Group Case Challenge

IIM Indore PGP Mumbai Team Radicals Abhishek Jain Himanshu Mehta

Team ProfileAbhishek Jain, 25 Years, IIM Indore PGP MumbaiPGP 1 participant, as an IT Engineer proven track record in IT/SystemsWorked with TCS for 34 monthsCompassion, resilient & consistent in efforts to achieve goalsHimanshu Mehta, 23 YearsPGP 1 Participant, hails from Mechanical Engineering backgroundWorked with Mahindra two Wheelers for 6 monthsAnalytical bend & niche for creativity drives his efforts

Different Inventory points at SSM Dyed PurchaseHead Office Printing/Dyeing/Cutting/ Embroidery/Job Work /Weaved yarn/Dyed yarn/Printed Yarn

Warehouse Stock/Saree

Warehouse Grey PurchaseWarehouseAdditional Processes to be implementedPart InspectionFor Dyed Purchase Inspection at the supplier end For Grey Purchase -Inspection after each stage of operationShown in process chartTwo-Bin System for Workflow Reduces WIP InventoryTwo-Bin system at each Printing, Dyeing & Cutting stage (in case Raw material is Grey Purchase)

How to ensure sales & production closenessTo communicate variation in Forecasted Sales v/s Actual Sales to Production Department on the basis of Weekly Reports Aggregate Demand planning aligned with sales variationDemand Forecasting & Production planning Production planning ..Assuming that Demand & Lead Time (time for order to reach work station) both are subject to variation & further assuming that Lead time & Demand are normally distributed = , = = , = Reorder point in such a case can be defined as sum total of Expected demand during Lead time & SafetyStock = + = = Where = . () + . () & Cycle service level is the probability that the stock out will not occur during the lead time of theinventory

Coordination amongst departments Just-in-Time Philosophy Reorder Point: Coordination between Dyed fabrics and Grey fabrics purchase coordinators to ensure right quantity of order Each unit in production process must be aware of the capacity of other units so as to minimize access inventory at each levelFor e.g. Sizing and weaving team: Flow of material at weaving team depends on sizing team size. The time taken for weaving would be grater than the time taken for sizing. Hence accordingly sizing should be done to minimize inventory pile up at weaving endSales team must be aware of the current stock level anytime to avoid ambiguity while procuring orders.

Inventory Reports1. Inventory Ranking report Ranked on the basis of Cost of sales, Gross Margin, Carrying cost .Suppose on the rank scale of 1 to 100, 1 would be best with least cost & items above rank 90 must not be accumulated as inventory Similarly they can be ranked on Gross margin & Carrying cost Rank by Cost of Sales Rank by Carrying Cost Rank by Gross MarginFrequency : MonthlyReporting : Line Manager2. Inventory Hits Reports

The word hits here means the number of times over the reporting period that the item has appeared on an invoiceIdeally this should be used in conjunction with the ranking reportFrequency : MonthlyReporting : Line Manager

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