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STRIVING FOR A BRIGHTER TOMORROW
STRIVING FOR A BRIGHTER TOMORROW
Source : Economic Times Brand Equity14 SBUs with Corporate Offices & Manufacturing Facilities
Industrial Garden Township of 3000 acres in Mumbai 1800 acres of Mangrove Plantation
5 manufacturing locations & 85 major suppliers Unmatched reach 16 Branches & over 700 Dealers
Market leader in Furniture Industry with Home, Office Furniture
Heading for 2400 Cr + Business in 17-18
ABOUT US
Furniture for all Needs
Challenges faced in VUCA World
Build Internal capability
Culture of Continual improvement
Transforming Leadership
Build Sustainability
Challenges
Managing
Uncertainty
Increasing Automation
Pace of innovation
Stiff competition from Domestic &
International Market
Supply chain inefficiencies
Shrinking Product lifecycles
RESPONSEREQUIRED
Challenges to Godrej due to Unorganized Supplier base
Beyond SourcingBuild Supplier capability
Take relationship beyond transactions
Create value proposition for both Godrej Interio & Suppliers
High Potential High Impact
Low Potential Low Impact
High Potential Low Impact
Supplier Mapping Based on Potential V/S Impact
Rationalization of Suppliers
1. Increased Share of business to each supplier2. Ease of Deploying common processes3. Reduction in Total Supply Chain Cost
Supplier Base(Nos)
Procurement Value (Crs)
2007 2017
600 +
X
84
10 X
Procurement value share increased by 10 X
No. of suppliers consolidated to 1/7th
High Potential- High Impact suppliers were selected for
capability enhancement
Winning in the VUCA world- The Godrej Way
Build Internal Capability
Culture of continual improvement
Transforming Leadership
Build Sustainability
Build Internal Capability
Culture of continual improvement
Transforming Leadership
Build Sustainability
• Developing process capabilities for future success
• Inculcate internal capabilities among employees
Winning in the VUCA world- The Godrej Way
Building Internal Capabilities
ENHANCE FACILITIES & EQUIPMENTS
QC TESTING CONTROLS
CRITICAL PROCESS CONTROL
ELIMINATE PROCESS
INEFFICIENCIES
STANDARDIZED PROCESSES
Robust system & Processes
Build Internal Capability
Review for completing certifications
Handholding to develop tools, methods, and standard procedures
Periodic visits to support the vendors for documentation
Periodic reviews by GI Top management to monitor the progress
& guiding the vendors
Facility visits to map the current processes
Incentive For timely achievement
Building internal capabilities:Developing Robust systems and Processes
Build Internal Capability
Building internal capabilities:Developing Robust systems and Processes
Build Internal Capability
Culture of continual improvement
Transforming Leadership
Build Sustainability
• Culture of always being change ready
• Adoption of change initiatives
Winning in the VUCA world- The Godrej Way
Culture of continual improvement
Building a culture of continual improvement:Leading towards World Class Manufacturing
Motivated Employee
HealthyEquipment
Good Manufacturing practices
Reliable Quality & Delivery at low cost
Com
petit
iven
ess
Product Quality•SOP•Problem solving•Poka yoke
Equipment Quality•Model machine•Break down reduction
Employee Quality TEI•3M•5S•Safety mgmt•Suggestion scheme
Production system Quality•Shift Mgmt,•MIS-Key Indicators•SMED
Culture of continual improvement
Getting Together to form a cluster
Common classroom training for faster learning
Handholding visit to implement the learning from training
Guidance by GI top management on Gemba during MRM visit
Sharing the ideas during monthly review meeting
Rewarding the performers
Getting Together to form a cluster
Common classroom training for faster learning
Handholding visit to implement the learning from training
Guidance by GI top management on Gemba during MRM visit
Sharing the ideas during monthly review meetingRewarding the performers
Building a culture of continual improvement:Manufacturing Excellence Cluster
Culture of continual improvement
Transformation of Company front…
Removed unwanted material and created space for powder coating process
Transformation Through Space Recovery …
Culture of continual improvement
Sustenance Photo
Initial Photo Red Tagged Photo Red Tag Removed Photo
2S Shining Photo3S Shining Photo
Transformation of Shop floor through 5S …
Culture of continual improvementCustomer Tolerance to Quality is tending to zero …
Transforming Quality leading to ZERO Defect
Culture of continual improvement
A. CTQ Mapping and CTQ adherence
• To capture critical parameters to quality• Implementing 100% inspection system to produce
defect free product
Benefits to Suppliers Benefits to Godrej Interio
75% reduction in ppm rejection
70% of Cluster Suppliers Self certified
B. Dent, damage & Scrap mapping
• To identify & eliminate potential causes for rejection due to dent, damage, scrap during handling and transfer from RM stage to FG stage
C. Packing and Packaging mapping
• To identify & eliminate potential causes of damage / rejection due packing & packaging
D. Proactive visit to customer
• To capture 100% Customer feedback in 4Qs:• Product Quality• Delivery Quality• Service Quality• communication Quality
Transforming Quality leading to ZERO Defect
Culture of continual improvement
Transforming Delivery leading to 100% OTIF
A. Planning Improvement
• Production planning board on shop floor• Daily dispatch plan, OTIF performance trend
Benefits to Suppliers Benefits to Godrej Interio
> 95~98 % 40% Improvement
B. Changeover time reduction
• Implementing SMED• Increasing m/c run time
C. Breakdown reduction
• Implementing autonomous maintenance systems
D. Material Transfer
• Restricting unnecessary movements
E. Layout Improvement
• Improved layout as per subsequent operations
Culture of continual improvement
Transforming Cost leading to Increased Competitiveness
A. Capacity Utilization
• Production planning & Control • Improving m/c Uptime• Changeover time reduction: SMED
Benefits to Suppliers Benefits to Godrej Interio
More than 5000 kaizens Avg 50 projects per year
B. Productivity Improvement
• Identifying and eliminating :• Muda , Mura , Muri
C. Continuous Improvement
• Encouraging kaizens
D. Quality Cost
• Reducing rework• Reducing defects
Build Internal Capability
Culture of continual improvement
Transforming Leadership
Build Sustainability
• Role of leaders in the organization
• Leap towards business excellence
Winning in the VUCA world- The Godrej Way
Transforming Leadership
Transforming Leadership
Key Challenges:
• Absence of Leadership Structure• Absence of Business Planning Process• Absence of Skill Building Process
Transforming Leadership
Roadmap for Leadership Development
Getting Together to form a cluster
Common classroom training for faster learning
Individual Guidance to each member by GI Top management for their strategic plans
Formal closure of BE Cluster
Appreciation of the members for participation
Srategic Business plan & Expansion plans were drawn as necessary for 10 x 10 growth
Transforming Leadership
Transforming leadership: Godrej-SME business Excellence Cluster
Transforming Leadership
Individual Guidance to each member by GI Top management for their strategic plans
Formal closure of BE Cluster Appreciation of the members for participation
Transforming leadership: Godrej-SME business Excellence Cluster
Transforming Leadership
Guiding SME’s to define their Mission, Vision and Values
Godrej- SME Business Excellence Cluster
2016-17 2017-18 2018-19 2019-20 2020-20 2020-21
Growth Plan-Revenue Rs 22 Cr 30 Cr 40 Cr 60 Cr 80 Cr 100 Cr
Share of Business-Existing Customer(s) % 85% 80% 75% 75% 70% 70%
Share of Business -New Customer(s) % 15% 20% 25% 25% 30% 30%
Share of Business from Furniture sector(Current sector) 90% 90% 85% 85% 80% 80%
Share of Business from New Sector 10% 10% 15% 15% 20% 20%
Share of Business from Furniture sector(Current sector)
Existing Products 90% 90% 85% 80% 75% 70%
New Products 10% 10% 15% 20% 25% 30%
Godrej-SME Business Excellence clusterStrategic Business Plan
Transforming Leadership
Godrej- SME Business Cluster
Godrej- SME Business Cluster
Formalizing Organization structure & Strategy building
Godrej-SME Business Excellence cluster
Godrej-SME Business Excellence cluster
Transforming Leadership
Mech Tech Industries, Turbhe P M Electro Auto Pvt Ltd, Nasik Prarthana Manufacturing, Khopoli
5 more green field factories under various stages of completion(1 Platinum rated Green Factory Building of M/s Kashish Panel under completion)
Expansions : 3 Green field Factories
Transforming Leadership
SME STAR ICON-Performance Excellence Recognition 2015-16
Significant Performance Excellence (400-499 Points) – 3 SuppliersSustained Performance Excellence (500-599 Points) – 2 Suppliers
5 Suppliers Participated
Build Internal Capability
Culture of continual improvement
Transforming Leadership
Build Sustainability
• Green supply chain
• Technology coupled with
innovation to stay ahead
Winning in the VUCA world- The Godrej Way
Build Sustainability
Energy Efficiency Water Conservation Waste Management
Green House Gases Reduction Renewable Energy Material Conservation
Transforming Supply Chain leading to Green
Parameter FY14-15 FY15-16 FY 16-17 FY 17-19
Energy, Water, Waste Base line 15 % over
previous year5 % over
previous year3 % over
previous year
2 Training Programs on energy management by CII Faculty
Pledge towards Sustainability…
Green Pledge ( Sept 2015 )
Some of our Sustainability Initiatives…
Energy Efficiency: 27% Reduction in Specific Energy consumption through 53 Projects
Water Conservation: 23% Reduction in Specific Water consumption through 37 Projects
Waste Management: 17% Reduction in Specific Waste Reduction through 52 Projects
Green House Gases Reduction: 4100 trees planted which will offset 105MT CO₂e per year
3.38 Lac KWh energy saved 27.72 Lac Liters water saved 97.3 Ton material saved
207 KW of RE added 941 Ton of CO₂ equivalentGHG reduction
61.4 Lac Saved
Results
Recognition & Rewards for Sustainability Initiatives
Khutale Engineering gets Recognized as “Most Energy Efficient Unit”,
Hyderabad Sept’ 2017
2 Platinum, 2 Gold, 5 Silver Awards
Building Sustainability through Digital Transformation
Need for Digital Transformation
Lack of transparency Ineffective decision making Less responsive supply chain
Operational inefficiencies
Top management role
restricted to monitoring
rather than strategy building
Stores• Material Receipts• Updated stocks
Production planning• Add customer orders• Place PO to suppliers
Suppliers• Visibility to production schedule• Plan deliveries
Production • Production scheduling• Plan Vs Actual status
Dispatch• Execute dispatches• Vehicle tracking
Godrej• Live Order status at various
stages of completion
Cloud based Mobile App A pilot project with one of our tech savvy supplier`
1. Increased Transparency 2. Real-time insights & decision making 3. Improved production planning4. Faster deliveries 5. Operational Excellence 6. Freed up CEO’s bandwidth from monitoring
to strategy building
Enhance
Technical
Capability
Enhance
Managerial
Capability
MIS
&
Key Indicators
IT enabled Dashboard
Evaluating
& Recognizing
Consolidate Vendor Base
OPT
IMIS
EDI
GITI
ZEVendor
Rationalization Framework
BS SupplierExcellence
Rating
Manufacturing Excellence
Leveraging “Digital” to sustain gains
Business Excellence
Build Sustainability
Supplier Performance
Supp
lier P
oten
tial
Disengage
Collaborateto excel
Strategic Partnership
BS Supplier Excellence Rating System
Low
Low
Hig
h
High
3- Tier Excellence Rating
Godrej-SME relationship towards Strategic Partnership
IN TOUCH
RESOUCRCE SHARING
INFORMATION SHARING
CONSULTING
CO-DECISION MAKING
CO-PROBLEM SOLVING
CO-CREATING
Tran
sact
iona
lEs
sent
ial
Pref
erre
d
5 %
35 %
60 %
60 %
35 %
5 %
2007
Tran
sact
iona
lEs
sent
ial
Pref
erre
d
2017Strategic Partnership
Not even best seeds and best fertilizers will give good crops if the soil is not nurtured well.
Similarly, we are nurturing SME’s to enhance their capabilities to thrive in this VUCA world
