Lean production implemented in the enterprise management system returns millions, previously frozen in unfinished goods, into your working assets.
For final product packaging
the Rosshokolad company uses paper
materials, known as ‘wrappers’, customized for each client.
These can be either printed either in
their own printing office or ordered somewhere else.
Anyway, the number of printed copies is well on the safe side with
respect to the number of units produced – moisture loss, wantage, breakage, tears, etc.
Rolls of
unused wrappers are moved to the warehouse.
‘Cause it’s just wrong to throw them away, they’re so
beautiful, you know.
Of course, printing one wrapper costs dime a dozen, especially
with high numbers of printed copies.
However, the rolls of beautiful paper had piled up over time
and this sad collection was already worth millions of rubles.
And – you can’t just stretch the
warehouse, just as you can’t fit every Russian into the city of Moscow.
As part of pre-implementation business process reengineering, this bottleneck, among others, was pinpointed and analyzed.
The analysis results showed that the larger part of the huge stock
of wrappers was generated by repeated orders from regular customers (i.e. with the same design).
That
means they can be used in the future – in case a sound accounting system is set up.
Characteristically, the new accounting system was finally up and
running.
The business process of making orders was altered and got an option of choosing the
wrapper design from the list of this customer’s previous orders.
When the order is sent to the order processing department Ultimate knows the quantity of the wrappers in stock and automatically reduces the number of them in the order. With allowance for moisture loss/wantage, of course.
Simple enough?
Sure. But it doesn’t make millions of rubles
recovered this way less desired.
As godlike and extremely down-to-earth Vespasianus used to say,
‘money has no smell’.