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Case Study: Carborundum Universal Limited(CUMI)

Updated: Dec 1, 2023

Client Overview



Carborundum Universal Limited (CUMI) is a part of the US $2.4 billion conglomerate Murugappa Group. The group is one of India's largest family promoted, professionally managed corporate with 34,000 employees. A pioneer and market leader in several fields with over 40 manufacturing locations across 12 States in India, the group has a strong presence in abrasives, engineering and cycles, bio-products, sanitary ware, plantations,

sugar, farm inputs, finance, & nutraceuticals.

SCM Initiative

Cumi implemented RAMCO ERP in 2000. In order to overcome some of the Shop Floor SCM issues, it looked for vendors who can provide the solution. It evaluated Planvisage SCM solution. After a thorough analysis, it went ahead with Planvisage solution. The implementation started in October 2008 and completed by January 2009.


Production Workflow

There were essentially three stages involved in the production.

Planning Before Planvisage

The marketing team generates the demand for next month with daily schedule. Based on this demand, capacity plan is manually generated. While creating the capacity plan, no check is made to see if the material is available. There is no link to purchase team of which order needs to expedited/de-expedited based on capacity plan. This was creating problem in execution as production cannot start due to lack of material which in turn affected optimum use of resource and customer delivery. There was no feedback to the marketing team on the commitment date based on material and capacity constraints. Since the supply chain was complex, the total planning time was more than a week. Hence their planning frequency was once in a month.


Planning After Planvisage

Based on the demand generated by marketing team, a single plan is created across multiple department taking into account real time material and capacity constraints. A feedback is provided to the marketing on the commitment date of orders. Planning frequency was made as daily cycle with automatic e-mail alerts. Bottleneck resources are effectively loaded and thereby increased throughput.


Report Developed

Some of the reports developed were

MRP

It highlights exception when stock of a RM fell below the Monthly Requirement based on Demand

Benefits

  • Releasing PO to avoid delay in delivery

  • Develop alternate source where required

  • Identify non moving stocks

Capacity Utilization

It highlights exceptions where there is not enough capacity in the shop floor for the monthly demand

Benefits

  • Plan for increasing the capacity / overtime

  • Follow the critical Resource to ensure high

throughput

Shop Floor Plan

It shows planned value for any given day for all the machines in a optimal sequence to execute as per priority and due date

Benefits

  • Maintain and improve OTD

  • Improve Bottleneck throughput

  • Avoid build up of WIP

Late Delivery

It highlights exceptions where the latest available date is greater than earliest required date for a Sale Order combination based on lead time

Benefits

  • Identify the Orders affected by Resource

  • Inform Customers about possible delays in advance at time of order booking

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