© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Banish waste &
Create wealthAccelerate cash flows. De-risk the business.
1Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Business challenge
MARGIN PRESSURE
Delayed receipts
Advance release
CostEscalation
Yieldreduction
2Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Business challenge
Our proposition: Refresh our perspectives!
MARGIN PRESSURE
Delayed receipts
Advance release
CostEscalation
Yieldreduction
2Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
7 Symptoms of cash constraint
1. Delayed payments to vendors and employees.
2. Ad hoc borrowings from Non Banking sources.
3. Mounting interest burden on borrowings.
4. Penalties on late payments and disputes.
5. Increase in ‘other income.’
6. Delayed release of refunds, commissions & credit notes.
7. Reserves used up to meet ‘nasty surprises.’
Core issue : Expenses run ahead of cash flows!
3Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
STRATEGIC GOAL
Who wants to fund a Sustainable long term growth
with Daily cash inflow ?
Olympic mindset : Faster. Higher . Farther
4Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
www.shekarsan.com5Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
www.shekarsan.com5Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!
www.shekarsan.com5Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
FREE: Estimate Waste!Annual
Turn over ` 5 Crores
• Lost Volume• Lost Value• Low Velocity
Quarterly waste
estimate` 2 Crores
www.shekarsan.com5Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Signals: Time based metrics1. Lead time for new offerings
2. Order maturity lead time
3. Order acceptance rate
4. Rate of schedule adherence
5. Delivery lead time(TAKT)
6. Touch time
7. On Time Fulfillment Rate
Key: Match weekly cash flows to meet commitments
6Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Tangible results
• Operating efficiency: Throughput
• Rate of Value added per hour
• Conversion efficiency: Turns
• Sweat the working capital
• Capital efficiency: Investment
• Weed out non performing assets
Don’t focus on costs. Capitalize on timing
7Thursday, 18 April 13
© All rights reserved by R Shekar ShekarsanTM Thought Catalyst Ⓡ First Published April 2013. Mobile :+91 98840 74802 www.shekarsan.com
Accelerate cash flows. De-risk the business.
Testimonials*Gokaldas Images
Samtel
Sheela Foam
Paharpur 3 P
Nat steel
Godrej
Fleetguard
Indo asian* Reproduced with permission.
www.goldrattindia.comTestimonials and authentic and audited results available at website.
8Thursday, 18 April 13
