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Leansigma Supports Rapid Growth at Genus Power: Electricity Management Product Manufacturing Case Study

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Karishma Koul
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25 views

Leansigma Supports Rapid Growth at Genus Power: Electricity Management Product Manufacturing Case Study

case study

Uploaded by

Karishma Koul
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PDF, TXT or read online on Scribd
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Electricity Management Product Manufacturing Case Study

Client
Genus Power Infrastructures Ltd. manufactures electronic energy meters, electricity infrastructure products, hybrid microcircuits, inverters, batteries, and uninterruptible power supplies.

LeanSigma Supports Rapid Growth at Genus Power


Manufacturer of electric meters and related products overcomes growing pains and dramatically reduces its new product development cycle time. Genus Power Infrastructures Ltd. manufactures electronic electricity meters, power distribution devices, and a variety of other energy-management-related products. It has a factory in Jaipur, India, and a second facility in Haridwar that opened in March 2010. The company reported revenues of Rs.720 crores ($160 million) for its 2011 year end. Its primary customers include public and private utilities, and state electricity boards. It reports an installed base of 15 million power meters. In 2004 Genus managers recognized that the company needed to make a dramatic increase in efciency, in part to keep pace with rapid growth in new orders, and to bring new products to market faster. After visiting several other businesses around Jaipur for ideas, and seeing the remarkable progress at another local manufacturer, Genus began working with TBM Consulting Group. Starting with a clear understanding of customer value, LeanSigma manufacturing methods and a fundamental culture change have helped Genus reduce production costs, improve quality, shorten order-to-delivery times, and be more responsive to ever changing customer demand. The rst and second improvement projects on the shop oor improved efciency and reduced costs by 69 percent and 42 percent respectively.

Challenge
Genus Powers rapid sales growth was outpacing the companys production capacity, which undermined its market position and caused it to lose some orders. Also, its product development processes were too slow to keep up with market innovation demands.

Solution
Genus started working with TBM Consulting Group in 2004 to implement LeanSigma tools and practices. Starting with several highly focused kaizen events, the methodology has touched every area of the company and transformed the culture.

Results
Average product costs have been reduced 15-20%, output doubled in the same oorspace, new products are being launched in half the time, and revenues have grown ve-fold, capturing an estimated 22% of the Indian market for its products.

800.438.5535 | www.tbmcg.com

Customer Value

Mapping the Value Stream (Identify Waste)

Create Flow (Remove Waste)

Synchronized System Pull

Continuous Improvement

Full Potential

Customer value guides every aspect of the Genus LeanSigma approach.

We started with top management, helping them understand the concepts, and then we worked with the people in the production areas, reports R. S. Rathore, general manager of research and development for Genus.

Anything that contributes to growth and new business takes top priority, says Rathore. Its all about offering the right product at the right price to our customers.

Those rst projects really helped everyone understand what our customer requirements actually are. Understanding the takt time, rate of production required to meet customer demand, helped us allocate people based on a need basis. That concept triggered some tremendous changes. After more than 50 formal kaizen projects, Genus continues to make signicant process improvements on the production oor and in other departments. The companys Kaizen Promotion Ofce helps coordinate at least two improvement events per month, which are now facilitated by internal managers. Those events are prioritized based on current customer needs and future direction. In addition, the company continues to work with TBM on several Design for LeanSigma projects every year.

800.438.5535 | www.tbmcg.com

Electricity Management Product Manufacturing Case Study

Anything that contributes to growth and new business takes top priority, says Rathore. Its all about offering the right product at the right price to our customers. Since implementing Design for LeanSigma, Genus has cut product time-to-market roughly in half, from more than a year to six months, and radically expanded its product portfolio. The methodology has helped us streamline our new product development systems and bring more products to market with much better initial quality, Rathore adds. For example, a new meter that the company brought to market recently progressed from idea through development to launch in six months. It also recouped the total development investment and started earning a prot inside of 12 months. Today, dramatic improvements in efciency and superior quality have helped Genus earn recognition as a leading vendor in its markets. Visiting customers comment on the highly organized and visual management indicators in its production areas. Most importantly, its customers--such as North Delhi Power Limited--have formally recognized Genus as a key vendor partner because of the companys superior delivery performance and ability to bring new products to market quickly.

Genus Power Kaizen Event Improvements (Total)


1520% reduction in product costs 300% improvement in output (500 to 1,500 meters per line) 240% improvement in productivity (4.8 to 11.2 meters/man/hr.) Quality yield improvement from 92% to 98.3% 75% reduction in line changeover time (2 to 0.5 hrs.) Workspace reductions mitigated need for additional floorspace

Genus Output, Meters/Fiscal Year


2,673,174 2,660,434

Genus Annual Turnover


$90,048,000

1,987,637 $57,568,000 1,569,019 $38,976,000 944,046 $48,608,000 $62,272,000

2006-07

2007-08

2008-09

2009-10

2010-11

2006-07

2007-08

2008-09

2009-10

2010-11

800.438.5535 | www.tbmcg.com

Driving Strategic Growth and Value through Operational Excellence


TBM Consulting Group is a global consulting firm that drives rapid execution of business strategies to achieve significant growth in sales and earnings through operational excellence. We work with clients to improve business performance by leveraging their investments and creatively engaging their human resources. Our clients achieve significant responsiveness and reliability for customers to achieve leadership positions in their categories. TBM clients leverage operational excellence to grow their bottom line, optimize total working capital, increase speed to market, and create significant value for associates and shareholders. Our consultants have ten to twenty years of operating management experience before joining the company. They work hand-in-hand with clients to transfer knowledge and provide a framework for a comprehensive performance improvement system to remove obstacles and achieve full potential. A key element of our LeanSigma approach leverages our Lean Six Sigma heritage evolved from Japanese lean management principles and the Toyota Production System (TPS). For more information about TBM India, please visit, call or contact our regional office director. www.tbmcg.in

LeanSigma and the TBM logo are registered trademarks of TBM Consulting Group, Inc.

TBM Consultants (India) Private Ltd. 905 9th Floor, Tower B Unitech Signature Towers South City - 1, NH 8 Gurgaon, 122001 Haryana, India www.tbmcg.in P: +91.124.437.5995 F: +91.124.437.5995

08/2011

TBM Consulting Group, Inc. 4400 Ben Franklin Blvd. Durham, NC 27704 800.438.5535 www.tbmcg.com

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