About this Presentation
This presentation describes how Tata Advanced Materials Ltd. used TOC principles to double its operational productivity, turn-around from loss making to profit making, and sustained the profit increase over the last four years! After an overview of Tata Corp. and Tata Advanced Materials Ltd., the presentation describes the situation as: Due to the heavy investments made for the aerospace business and the time taken to ramp up the execution of orders, the losses started to go up and reached a peak of $10 mn on sales revenue of $14 mn USD in 2012-13. The spree of losses continued in 2013-14 and the 1st half of 2014-15. In October 2014, SR Mukherjee (aka SRM) joined the organization. SRM had worked in an organization previously, where TOC had been implemented. It was decided to implement TOC in TAML to improve its OTIF, throughput and profits. TOC Implementation started with a weekly dashboard and reviews every week from November 2014. The following metrics were used to build alignment in the organization: OTIF, net revenue, throughput, customer complaints, and free cash flow (FCF). The entire senior team was aligned to deliver on these parameters and discussions were focused on planned vs actual achievement, variance between the two and the corrective actions to be taken in the coming week to meet the plan. From this beginning the detailed Tata journey and results are provided. Video length: . PDF: slides.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
Tata Advanced Materials underwent a significant operational turnaround using TOC principles, transforming from a loss-making to a profit-making company.
The company focused on improving key parameters such as on-time and full (OTF), net revenue, throughput, customer complaint and free cash flow.
The company also focused on improving its working capital by buying smaller lots, increasing replenishment frequency, reducing MOQ with vendors, and focusing on the aging inventory.
Instructor(s)
