xyz Industries

xyz Industries

PROBLEM STATMENT

Ever increasing customer expectation more branded competitors are the theme of the business now. Need of creating Point of differentiation is very vital through Gold Standard in services and Ambience of the work place with high operational efficiency by TEI.

PROJECT CHARACTERIZATION

Collecting C-Sat score
Through customer satisfaction and dissatisfaction studies.
Collecting non-conversion data and analyzed reasons for non conversion
Inventory analysis.

If customers are dissatisfied with processes, delivery or with efficiency of staff, they would spread their stories to other customers and prevent sales and customer satisfaction from increasing

To achieve organization vision through creating fans by TEI

To create Awareness & Empower the Frontline Staffs who are playing a major role in Sales.

This problem align with following strategic goals of the division

  1. to create fans through good ambience and operational efficiency
  2. to increase top lines sales
  3. to improves stock turn
  4. Employee engagement though TEI and best practices

(Bottom up approach of involving employees on solving problems / issues of store operations, upkeep of stores, making innovation/Kaizens& improving customer satisfaction)

Customer Feedback
Comments from visitor’s book
Customer  Complaints
Website
Informal Customer Complaints.
C-sat survey

TEI is the most important factor, to create this everyday GEMBA take place where the learning and sharing is done.

LDMS – Lean daily management system prepared and maintained

Other CTQs identified:

  • Effective service.
  • Attractive Ambience.
  • Quick billing.
  • Customer Engagement
  • Sales staff who understand the customer requirement and display the stocks.

BASELINE MEASUREMENT

Time spend in Non value added activities leading to stress for staff and customers.
Working in Isolations.
Employees Not Involved in solving routing stores problems.
Fire fighting for most of the needs.
Tendency to keep excess stock of consumables like packing &Indirect material.
Involvement in eliminating Waste in process.
CSAT Score
NO of positive comments from customer.
Store upkeep (5S) audit score.
Multi Skilling Score
No of Kaizens
Kanban Status
Stock out incidents.
All the above has been reported through Weekly Lean MIS.
A set of tool which aim to keep everything in an organized way, improve store upkeep, improve efficiency, save time and increase productivity., reduce material wastage and costs or wastage in any manner, customer satisfaction and do all this through total employee involvement
Phase 1: Pilot in 3 Stores
Phase 2: Extended to 30 more stores in top cities
Phase 3: National Roll-out, in progress (rolled out in 99 stores out of the 116 stores in the chain)
Customer Feedback
Customer comments from visitor Book
Customer Complaint
Customer feed back from Website
Formal and Informal Customer complains.
Survey.
Weekly lean MIS reports contains store upkeep score, no. Of stock out incidents against secondary consumable materials, no. Of positive comments, stock vs. sales ratio, capturing and liquidating aged stock and no. Of Kaizen made by employees and included same in Lean daily Management System.
Pilot in 4 boutiques and found good result in store upkeep score, no. Of kaizen made by RSOs, improve csat score, stock sale ration and customer’s positive comments quick service etc.
Lean concept – Store upkeep score, No. Of stock out incident of secondary consumables, No. Of kaizens made by RSOs., waste elimination, reducing non-value added activities, cost saving & TEI

ROOT CAUSE DIAGNOSTICS

Why why analysis for the following problems have been carried out indetail to identify the root cause.

  1. Customer Satisfaction Level
  2. Employee satisfaction Level
  3. Customer Re-Visiting Index
  4. DOWNTIME – Identified 8 type of waste.

Defect
Out of stock
Waiting
Not utilizing people’s talent
Transportation
Inventory
Motion
Extra processing
Based on the Root Cause Analysis, we have piloted the process at 4 boutiques to understand the Cause & Effect
Store Upkeep Audit Score.
Defective Stock Status.
Eliminating Excess stock in front end.
Multi Skilling through Internal Trainer system.

REMEDIAL ACTIONS

Gemba, 5s, Kanban, kaizen implementations, problem solving techniques, Brainstorming

  • Provided training through lean champion to all the staff.
  • Lean retailing training & benefits shared across the country.
  • Region wise best lean boutique & best 2 kaizens awarded

Based on the GEMBA and other initiatives to understand the causes like cost savings, wastages, customer dissatisfaction are validated and implemented best practices through kaizens in the boutique by the team of RSO (Retail sales officer)

Qualified Lean Champion, ABM & RBM will review the solutions finalized by RSO (Retails Sales Officer) and empower the RSO to implement the same in the boutique to understand the effects. Also RSOs are recorded as Kaizens and awarded best kaizens by SMT.

SOLUTIONS DEPLOYMENT

Reworked the outcomes of pilot based on business requirements

  • Phase 1: Pilot in 4 stores
  • Phase 2: Extended to 30 more stores in to a rep cities,
  • Phase 3: National Roll-out, in progress (rolled out in 99 stores out of the 116 stores i the chain)

By showcasing results achieved in pilot and also conducting training and motivation session for RSOs. We also motivate them by awarding best lean boutique of the quarter region wise and awarding best kaizens from each region.

SUSTENANCE OF GAINS

All the gains from implemented solution (kaizens) were formulated into SOPs and deployed and then audited. – Main Objective is to create Daily lean Habits, which grow the culture of Lean in Tanishq.

Lean Retailing has been extended across the network thru Phase 2 and Phase 3 Implementations.

Tangible

  • Saving through introduction of kanban system for packing material is 67 lakes in 09-10
  • Cost reduction in inventory of carrying cost, store running expenditures, maintenance, repair, electricity expenditure, diesel, telephone bill, retail space recovery, etc. As a results of kaizens (continuous improvements) done at stores. Cost saving through kaizens 1.09 Crore (09-10)
  • Defective stock in retail system reduced from 1.65 cr in 08-09 to 0.1cr 09-10
  • 5666 Kaizens (improvements) made by Retail Sales officers. Best Kaizens / practices implemented across the showrooms
  • 20% saving through introduction of kanban for jewellery spares, stationary items, pantry items, cleaning items
  • Product sales Vs stock ratio improved to 25% for 09-10 from 21% in 08-09
  • The latest CSAT score of customer statisfaction as on mar’10 has gone to 8.6 from 8.0, in 2009 which is considered to be excellent in retail standards.
  • Improved revisiting of existing customers 34% in 09-10 from 26% in 08-09 as depicted in Anuttara details.

Intangible

  • Store upkeep audited through 7s audit, Score gone up to 71% in 09-10 from 56% in 08-09
  • Multiskilling score of employees improved to 69% in 09-10 from 58% in 08-09
  • Simplified / Improved / standa rdized operations across the stores.
  • Improved sales with optimization of Inventory and daily indenting by RSOs.
  • Quick service – billing time reduction (about 50%), search time is far less, store more organised, Store upkeep much improved.
  • Informal comments like visitor book comments has also been captured through portal system and action taken (Opportunity for Improvement Vs positive comments ratio improved from 1:3.3 (08-09) to 1:5.3 (09-10) )
  • 550 Retail Sales officers became a part of ‘Tanishq fan Club’ and were rewarded with cash prize.
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