3. EPD
3
Reason for Improvement
Increased demand
Polymeric insulators – CAGR 15.6 % ( 2011 – 17 )
SMC and PC distribution boxes – CAGR 12.3 % ( 2011 – 17 )
Increased pressure on prices
Higher In-house costs
High cost of purchase from Bangalore
Lower lead time requirement from market
Inhouse capacity booked for Export Orders
4. 4
Moulding cost per
Insulator
Existing Rs 28
Required - Rs 15 per pc
Transport and Tax Cost
per DB
Existing – Rs 50
Required – Rs 3
Existing Capacity per
month
Insulator – 25,000
SMC DB – 7,000
PC DB – 20,000
Demand
Insulator – 50,000
SMC DB – 15,000
PC DB – 40,000
Lead Time in Weeks
Existing - 8-10
Required - 4 weeks.
Current Situation
EPD
5. 5
EPD
Analysis
Performed Detailed Analysis of capacities of Mould, Machine
and Supplier based on 5 yr LTP Sales Projections.
Identified bottlenecks and Resource (Mould, Machine,
Manpower, Space) requirements for Manufacturing as well as
storage.
Identified Suppliers with Rubber Injection Moulding Machines in
and around Vadodara
Inflation in costs, erosion in prices considered and mapped 5 yr
Differential P&L for decision making.
6. 6
Counter Measure
Counter Measure Matrix
Root CauseProblem Counter Measures Practical Methods Effectiveness Feasibility Budget Overall Action
Phase
Capacity
shortfall
Increase
d
demand
in
Market
with
lower
costs
Overall
market
growth
Capacity
mapping
vis-à-vis
demand
not done
Identify
new,
competent
suppliers
Enhance
capacity of
existing
suppliers
Supplier
identificati
on and
Audit
Mould
Developm
ent
Product
and
Process
Approvals
5 5 5
Mould
Developm
ent
Product
and
Process
Approvals
125 YES
5 5 5 125 YES
3 5 5 75 YES
5 5 1 25 No
5 5 1 25 No
EPD
7. 7
EPD
Result Check
25,000
50,000
0
20,000
40,000
60,000
Oct-14 Mar-15
Capacity (In No.s / Month)
Capacity (In No.s / Month)
Linear (Capacity (In No.s / Month))
28
15
0
10
20
30
Oct-14 Mar-15
Cost (Rs / pc)
Cost (Rs / pc) Linear (Cost (Rs / pc))
8
4
0
5
10
Oct-14 Mar-15
Lead Time for Lot Size -
50k (in weeks)
Lead Time Linear (Lead Time)
20,000
40,000
0
50,000
Mar-14 Mar-15
Capacity for PC DB
(No. per month)
Capacity (PC)
Linear (Capacity (PC))
8
4
0
5
10
Oct-14 Mar-15
Lead Time
(in weeks)
Lead Time Linear (Lead Time)
7500
15000
0
5000
10000
15000
20000
Oct-14 Mar-15
Capacity for SMC DB
(No. per month)
Capacity (SMC) Linear (Capacity (SMC))
Insulators SMC DB PC DB
8
4
0
5
10
Mar-14 Mar-15
Lead Time
(in weeks)
Lead Time Linear (Lead Time)
440
415
400
420
440
460
Oct-14 Mar-15
Cost (Rs / pc)
Cost (Rs / pc) Linear (Cost (Rs / pc))
1200
750
0
500
1000
1500
Mar-14 Mar-15
Cost (Rs / pc)
Cost (Rs / pc) Linear (Cost (Rs / pc))
49
30
148
100
61
300
0
50
100
150
200
250
300
350
Insulator SMC DB PC DB
Monthly Sales Increase in Lac INR
Before After
8. 8
Capacity Mapping done
for all EPD products inline
to 5 yr LTP and actions
identified.
Templates developed for
Capacity Analysis, Buy-
Make Decision for all
product lines of EPD.
Market demanded Lead
Time compared with
existing lead times and
Action Plan prepared
Standardization
EPD
9. 9
Outsourcing of
- Tension Insulators inline to Pin
Insulator
- LV ABC Acc,
- Ampact,
- HVCS planned
- Localisation of Outstate
supplies
- Indigenisation of Imports
Future Plan
EPD
