Project in PPT please: Case Study $$ ABC Company $$ Acting like Alex Rogo $($The Goal$)$ You have joined as the Operations Manager of a large multinational company ABC Company that produces products for the Textile industry. Your company is a key Tier $1$ supplier to the manufacturers of garments and footwear for leading brands. Your role requires you to take care of the operations of two manufacturing plants situated in Bangladesh. One of the two manufacturing plants is an upstream, captive manufacturing plant for a key intermediate for the products produced by the company. The other one is a customer$-$facing manufacturing plant, i$.$e$.,$ produces finished goods that is then sold to B$2$B customers who use the products to manufacture garments and footwear. You have been with the company for a month and are trying to get to grips with the situation in the Bangladesh operations. The operations in Bangladesh have a long history of problems with poor business metrics across the board. You have been told that your key KPI in the next $3-12$ months is to get the operations back on track, but by taking an end$-$to$-$end view of the business. You are part of the country leadership team and report to the Managing Director. To begin with, you chart out a plan to review metrics and numbers that are drawn out of your previous experience. You also realize that this company $$ ABC Company $$ has huge strengths in the area of access to lots of data. You also have access to a bright young team member who has the skills to quickly put together various analysis of metrics and indications across the business. In a week, you are given a full report that has the following details for the customer$-$facing plant manufacturing finished goods. $95\%$ of products sold to customers are manufactured in$-$house, hence you decide to focus on those. Diagnostic Metric $($Year $2022)$ Average$/$ Full Year Highest Lowest Internal best in class average Finished Goods Forecast Accuracy $45\%70\%20\%75\%$ Finished Goods Forecast Bias $(-$ve indicates over forecasting$)-15\%+20\%-35\%+/-3\%$ Service levels for sales orders $($Fulfilment on time in full$)55\%80\%20\%90\%$ Order lead$-$times Days $($lower is better$)203595-6$ Availability for MTS materials $60\%68\%50\%90\%$ Adherence to broad Master Production schedule $72\%81\%65\%95\%$ Average Production lead$-$time $10156$ Avg $2,95\%$ in less than $3$ days Production lead$-$time adherence to standard $($standard lead$-$times already higher than benchmark for this plant$)50\%65\%35\%95\%$ Production quality $($Right First Time$)90\%86\%94\%97\%$ Adherence to production sequence on work centre $67\%75\%55\%75\%$ Annual sales to plan $80\%100\%$ Gross Margin $15\%45\%$ SD&A $($Sales$,$ Distribution & Admin expenses$)20\%12\%$ Conversion costs $($vs benchmark$)105\%95\%$ Energy$/$ Water costs per KG of prodn output $$1\mathrm{.}1$ $$0\mathrm{.}63$ Production output vs S&OP monthly plan $90\%99\%79\%99\%$ to $101\%$ Manufacturing Headcount per KG of Finished Goods produced $($Direct$+$Indirect$)53$ Sales order cancellation value $(\%$ of total sales$)4-5\%$ Less than $0\mathrm{.}2\%$ Production order realizations Rework success rate $50\%90\%25\%75\%$ Warehouse shipping reliability $93\%98\%$ Purchase Delivery reliability $60\%$ on time, $35\%$ late by more than a week, $10\%$ late by more than a month $85\%,<5\%$ late by more than a week Purchase order creation times $($Days$)52021-2$ Instances of repeat production of small MTS lots within a month $($except bulk A category items$)50\%15\%$ Min lot sizes for production execution for stock items Not implemented Implemented for all stock items and reviewed every $3$ months Factory Capacity utilization $65\%85\%$ No of different products $($Portfolio$)$ per $$1$M of sale $350150$ Percentage of products produced to global company specifications $25\%85\%$ Industrial Engineering standards for process times, wait times, etc. Not existent, incorrect Masterdata $95\%$ accuracy, maintained in ERP system Process capability of key process$/$ work centres Cp$=0\mathrm{.}8$ Cpk$=0\mathrm{.}7$ Cp$=1\mathrm{.}5$ Cpk$=1\mathrm{.}6$ Cp$=0\mathrm{.}4$ Cpk$=0\mathrm{.}3$ Cp$=2\mathrm{.}0$ Cpk$=2\mathrm{.}5$ Sales & Operations planning process maturity score $($Out of $10,$ internal audit findings$)27$ Stock accuracy $95\%85\%98\%99\%$ Demurrage charges on import consignments $(\%$ of sales$)2\%3\%1\mathrm{.}5\%<0\mathrm{.}1\%$ Analysis of root cause of service failures $($last $3-4$ months$)$ Area $\%$ contribution to failures $($OTIF failures$)$ Remarks Customer Service $20\%$ Credit blocks, Customer delivery blocks$/$ hold after production, change to due dates, Changes to order priority to accommodate other urgencies Production execution $25\%$ Delay in production process, Delay in starting order execution, production shortfalls to standard quantity, poor quality $($Right First Time$)$ Production Planning $15\%$ BOM Component shortages, Capacity constraints Warehouse Execution $40\%$ Customers not accepting deliveries, labour shortages, poor picking efficiencies, stock differences