There is a saying that goes: “before we point at others, we must first look at a mirror.” The quote implies that when you look at yourself in the mirror, you would see your own flaws. If you seize this moment constructively, and as an opportunity to reflect on what you see, you will attain self-improvement. In a professional setting, a term called SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis has the same idea as the premise of this paragraph—analyzing your flaws, and improving upon it. Using this as our guide, we can now examine how the Taiwan-based company achieved this 110 million New Taiwan Dollars (NTD) increase in their savings. For this article, we’ll focus on S, W, and O.
The company was growing rapidly. They were able make a name for themselves through the development of high-quality tires and production of UHP, SUV, LTR, PCR, and other series tires. They were becoming a big-shot in the tire industry; however, they noticed that production efficiency was not maximized.
Before we can increase our profit, we must first look at what’s holding us back—this might be the idea that came to the minds of the consulting department manager and the production planner when they initiated the plan to improve. There were two key areas that needed attention:
- Using Excel for production plans—this is a weakness because Excel could not consider current sales information nor inventory levels. This made Synchronization difficult and affected company profits.
- The inability to respond to an increasing number of small and diverse orders, rush orders, and frequent order changes. It became impossible for them to update the plan manually and in time. This led to late deliveries and an inefficient allocation of production capacity.
After finding out about their flaws, they had a chance to improve upon it. They searched for a production scheduler, and after a series of evaluation, they found the perfect partner—Asprova. Because of its known abilities in scheduling, the company was able to overcome their weaknesses and turn it into strengths. Objectively speaking, the percentage of products delivered directly without having been stored, increased from 45% to 85%; this lead to savings of 50 million NTD per year. Lastly, inventory turnover was reduced from 20 to 15 days contributing another 60 million NTD per year.
Do you find it hard to manually schedule rush orders and never-ending order changes? There’s still hope, let us help you make your company more profitable and your job a lot easier. You can start with this free trial version of Asprova so you can evaluate. We’d love to hear your thoughts.