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Hindustan Industries Limited

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Hindustan Industries Limited

Scenario: Case Facts

* HIL’s plant is in a tax benefit zone and the head office is in Bombay. Since invoicing needs to be done out of the plant and major transport services (MOG) are out of Bombay, major coordination is required. * Truck turnaround time and area utilization are critical success factors in HIL’s capacity expansion plans.

Objectives of HIL

* Minimize turnaround time of trucks * Minimize number of checkpoints for truck drivers * Re-engineer processes and make effective use of automation where significant time reduction is achieved

Analysis of Current Process at HIL

Turn- around Time * Planned cycle time is 82 minutes but actual average time is 165 minutes

Number of check points * Total number of delay points according to driver survey is 11. * Nine different documents need to be processed at 5 different locations.

Pain Points * Gate No. 2, Vehicle Check and Gate 3 are the biggest delay inducing points according to drivers

Time mismatches * Planned time from entry to warehouse is 18 minutes (10+2+6) wherein actual average is 43.36 mins and 38.36 for product 1 and product 2 respectively. * Time other than warehouse is planned to be 52 mins whereas actual average is 137.77 for Product 1 and 128.16 for Product 2.

Marketing & Transport issues * Marketing office in Bombay places the dispatch orders. * For trucks dispatch there is communication between Bombay office, Bombay trucks agency, truck representatives at plant and the plant MOG which creates redundancies in the system and multiple requests and documentation.

Automation * Processes like loading and tarpaulin cover are planned to take up 40 of 82 mins. There could be scope for reduction of time with automation.

Goal Incongruence * 2/3rd of the security work force is on

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