ClientGenus Power Infrastructures Ltd. manufactures electronic energy meters, electricity infrastructure products, hybrid microcircuits, inverters, batteries, and uninterruptible power supplies. Challenge Genus Power’s rapid sales growth was outpacing the company’s 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 floorspace, new products are being launched in half the time, and revenues have grown five-fold, capturing an estimated 22% of the Indian market for its products. Electricity Management P roduct Manufacturing Case Study800.438.5535 | www .tbmcg.com 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-rela ted 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 primar y 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 efficiency, 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 first and second improvement projects on the shop floor improved efficiency and reduced costs by 69 percent and 42 percent respectively.
Client Genus Power InfrastructuresLtd. manufactures electronic energymeters, electricity infrastructureproducts, hybrid microcircuits,inverters, batteries, anduninterruptible power supplies.
ChallengeGenus Power’s rapid sales growthwas outpacing the company’sproduction capacity, whichundermined its market position andcaused it to lose some orders. Also,its product development processeswere too slow to keep up with marketinnovation demands.
Solution
Genus started working withTBM Consulting Group in 2004to implement LeanSigma tools andpractices. Starting with severalhighly focused kaizen events, themethodology has touched everyarea of the company and transformedthe culture.
ResultsAverage product costs have beenreduced 15-20%, output doubled in
the same floorspace, new productsare being launched in half the time,and revenues have grown five-fold,capturing an estimated 22% of theIndian market for its products.
Electricity Management Product Manufacturing Case Study
800.438.5535 | www.tbmcg.com
LeanSigma ® Supports Rapid Growthat 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 electronicelectricity meters, power distribution devices, and a variety of otherenergy-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 andprivate utilities, and state electricity boards. It reports an installedbase of 15 million power meters.
In 2004 Genus managers recognized that the company needed tomake a dramatic increase in efficiency, in part to keep pace withrapid growth in new orders, and to bring new products to marketfaster. 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, LeanSigmamanufacturing methods and a fundamental culture change havehelped Genus reduce production costs, improve quality, shortenorder-to-delivery times, and be more responsive to ever changingcustomer demand. The first and second improvement projects on
the shop floor improved efficiency and reduced costs by 69 percentand 42 percent respectively.
“We started with top management, helpingthem understand the concepts, and then weworked with the people in the production
areas,” reports R. S. Rathore, generalmanager of research and developmentfor Genus.
“Those first projects really helped everyoneunderstand what our customer requirementsactually are. Understanding the takt time, rate of production required to meet customer demand, helped usallocate people based on a need basis. That concept triggered some tremendous changes.”
After more than 50 formal kaizen projects, Genus continues to make significant process improvements on theproduction floor and in other departments. The company’s Kaizen Promotion Office helps coordinate at leasttwo improvement events per month, which are now facilitated by internal managers. Those events are prioritizedbased on current customer needs and future direction. In addition, the company continues to work with TBM onseveral Design for LeanSigma projects every year.
800.438.5535 | www.tbmcg.com
Customer Value
Create Flow (Remove Waste)
SynchronizedSystem Pull
Mapping the Value Stream(Identify Waste)
Continuous Improvement Full Potential
Customer value guides every aspect of the Genus LeanSigma approach.
“ Anything that contributes to growth and new business
takes top priority,” says Rathore. “It’s all about offering
the right product at the right price to our customers.”
“Anything that contributes to growth and new business takes top priority,”says Rathore. “It’s all about offering the right product at the right price toour customers.”
Since implementing Design for LeanSigma, Genus has cut producttime-to-market roughly in half, from more than a year to six months, andradically expanded its product portfolio. “The methodology has helped usstreamline our new product development systems and bring more productsto market with much better initial quality,” Rathore adds. For example,a new meter that the company brought to market recently progressed fromidea through development to launch in six months. It also recouped the
total development investment and started earning a profit inside of 12 months.
Today, dramatic improvements in efficiency and superior quality havehelped Genus earn recognition as a leading vendor in its markets. Visitingcustomers comment on the highly organized and visual managementindicators in its production areas. Most importantly, its customers--suchas North Delhi Power Limited--have formally recognized Genus as a keyvendor partner because of the company’s superior delivery performanceand ability to bring new products to market quickly.
944,046
1,569,019
1,987,637
2,673,174 2,660,434
2006-07 2007-08 2008-09 2009-10 2010-11
Genus Output, Meters/Fiscal Year
$38,976,000
$48,608,000
$57,568,000$62,272,000
$90,048,000
2006-07 2007-08 2008-09 2009-10 2010-11
Genus Annual Turnover
Genus Power Kaizen Event Improvements (Total)• 15–20% 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
Electricity Management Product Manufacturing Case Study
TBM Consulting Group, Inc.4400 Ben Franklin Blvd.Durham, NC 27704800.438.5535www.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 achievesignificant growth in sales and earnings through operational excellence. We work with clients to improvebusiness performance by leveraging their investments and creatively engaging their human resources.
Our clients achieve significant responsiveness and reliability for customers to achieve leadership positionsin their categories. TBM clients leverage operational excellence to grow their bottom line, optimize totalworking 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 comprehensiveperformance improvement system to remove obstacles and achieve full potential.
A key element of our LeanSigma approach leverages our Lean Six Sigma heritage evolved from Japaneselean management principles and the Toyota Production System (TPS).
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08/2011
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