 |
|
|
|
|
| |
Purch-lympics Entry #6 - Round #3
|
| |
Abdul Khan
Manager-Materials, India
|
|
|
|
 |
"Procurement as they say is not everybody's job, though in every day life can be best linked with a typical Indian House wife budgetary control of a traditional Kitchen. Whether to maintain reorder levels (control minimum and maximum stocks), price benefits (Bulk Buying) Substitute changes etc to name a few.
In the year 2003 when I worked as Asst. Manager-Purchase in Textile Spinning Industry manufacturing synthetic yarn one major problem we were facing was how to control on the high consumption of bearings and to leverage on the buying cost of this huge consumption. Many techniques were adopted such as re-structuring the Preventive Maintenance schedules, Indent control etc. Still things did not improve as per expectations. So an executive team comprising of Purchase, Production, Quality and Maintenance was formed constituting the Cross Functional Team.
Brain storming was done and as a result a synergistic decision was taken to involve the Bearing manufacturer. They deputed their techno-commercial team to study the case. After a rigorous study the team came to very good concept of Introducing a "Bearing Bank" and educating the team about the bearing mounting methods, maintenance etc.
This was agreed to implement immediately. In Bearing Bank the concept was that the Bearing Manufacturer maintained the Minimum and Maximum levels absorbing the Inventory Carrying Cost at its end. When ever bearing was issued for consumption, from this date to agree pay days invoicing was done.
As result within 2 months the consumption went down by almost 30% and what seemed to be a cancer in the system was diagnosed and eliminated from the root cause. Root cause majorly contributed to the old age practices and tools of mounting bearing, regular habit of withdrawing more than required. But with bearing bank and constant education and training program by manufacturer mindset was changed.
Finally within 6 months it was established and proven that with a close buyer supplier interaction and feedback any complicated manufacturing defect can be eliminated. But there should be the will and inner urge must prevail among the team to come out as winners."
|
|
|
|
|
|
|
|
