Samvad 2007

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CMD Operations Going Beyond Volumes

CMD Volume Trend

OPC production growth : Paints
Figures inclusive of USD

Growth of
19%

CMD Volume Trend

OPC production growth : Resins

Growth of
50%

Starting 06-07 Building a base

Until March 2006 we had serious concerns with respect to our

functioning

Doubts were raised from Planning function with respect to

reliability of operations

Samvad 2006 was used as a base to bring about improvement

Expectations with respect to performance parameters were

shared with OPCs

OPCs have responded positively to these expectations

Performance Parameters 06-07

There is an improvement in all parameters over the year 05-06

Are we satisfied with this improvement ?
Is there a further scope to Improve ?
There is certainly a huge scope for improvement
We believe . Satisfaction leads to Complacency

How to Target Improvement

Although overall improvement is achieved the areas of

performance parameters to be looked into are..

Consistency in volume compliance on monthly basis

Reduction in SKU variance and especially shortages

Catering to priorities & prorata production

Realisation of defined capacities

By focusing on above issues we project

Customer is the King. Are we prepared to satisfy him at all times ??

Who are our Customers

Central Planning

Distribution & Marketing

Purchase

CMD is only a conduit ... In reality, OPCs satisfy the customer

With understanding of our customers, what can be the Theme for 07-08

Theme 07-08
The broad level Theme for the year RELIABILITY
Guidelines for achieving reliability

Preparedness for Meeting Volume Demands

Following proper Systems and MIS

Two way Dialogues with CMD

Top to Down Focus on operational issues

Preparedness for Meeting Volumes

Delivering the plans in Toto . on time every time

Hindrances are controllable and uncontrollable

Issues such as timely RM / PM supplies are uncontrollable.

Focus of OPCs is desired on controllable issues

Contd

1) Preparedness for Meeting Volumes

OPC controllable issues that needs to focused are..

Capability to produce as per defined capacity

Ensure uptime of processing machines in season by planned

preventive maintenance

Factor local reasons and ensure adequate availability of

manpower

Ensure competent , trained staff who can meet production targets

without requiring intervention

When delivery of volume is not as per capacity OPC looses

When volumes produced are at peak capacity .. OPC gains

2) Systems & Procedures

Expectation is simple .. Follow procedures as laid down by APL

Procedure for Unloading material with proper PO

Procedure for Truck loading

Follow Storage and Stacking norms for RM , PM & FG

Accurate accounting of RM additions in batch

Procedure for on line posting of production figures

Procedure for direct rejection and online rejection of RM and PM

Following in process checks as per f-sheet for processing

Key to Consistency in delivery

Systems & Procedures should drive the process more than people

3) Compliance to MIS
MIS reports are strong means of communication between OPC and
CMD function

Communication on feasibility of plan at the FN start is of utmost

importance.

Daily Production Report before 10.30 am

Daily truck detention report
RM / PM stock out and critical RM / PM report
Immediate communication on machine breakdown
Best Estimates by 10th day of FN
Reasons for deviation in case of excess or shortage

On Time MIS results in Immediate Solutions

4) Two Way Dialogue

Two Way dialogue is the best tool to build faith and

bring about positive change

Let us understand where you are not comfortable in

meeting our expectations so that we reach mutually
agreeable conclusions and redefine our expectations

5) Top to Down Focus

Focus on operations and systems needs to percolate from the

head of the unit.

Clear message and communication of intent to all from the unit

head helps in driving systems

Commitment towards continuous improvement first from the

Unit Head will drive change across the levels

For better direction and estimate of progress made

Review the processes on regular basis
Take customer feedback
Cascading effect is fast when approach is top to down
To facilitate the review process we relaunch OPC Rating

OPC Rating

OPC rating is not for the purpose of competing with other OPCs

OPC do not need to compare their rating with other OPCs

OPC rating is aimed at.

Identifying strength areas for the OPC
Bring about improvement in weak areas

OPC rating is to be used for benchmarking and setting improvement

targets

On broader level it is measuring capability of OPC in mainly 3 areas

Service level
Quality
Cost

OPC Rating

Details of OPC rating calculations

The goal for OPCs should be to reach a level of 10 Rating

Moving towards Improvement

Having proved our capacity to produce, we will now move

towards Reliability

The Mantra for Reliability

Delivering as per Capability

Following systems & procedures

Compliance to MIS

Two way Dialogue

Thank You