Take the Capacity Hunt Challenge
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The document discusses taking the Capacity Hunt Challenge to identify hidden capacity within an organization. It notes that there appears to be a shortage of capacity as the factory and warehouses are full with no free space. Adding official new capacity requires large investments of money and time with uncertain returns. However, the document argues that significant hidden capacity likely already exists within the organization and can be uncovered by having staff identify bottlenecks and ways to activate unused capacity, all within 30 hours and without large investments. Taking the Capacity Hunt Challenge is presented as a lower-risk way to gain extra production capacity.
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Take the Capacity Hunt Challenge
- 1. Copyrights©2013CVMark.AllRightsReserved. Take the Capacity Hunt Challenge! Shridhar Lolla
- 2. Copyrights©2013CVMark.AllRightsReserved. U R CONVINCED THAT OFTEN DEMAND > SUPPLY 25-05-2013 2 time
- 3. Copyrights©2013CVMark.AllRightsReserved. IT APPEARS… THERE IS SHORTAGE OF CAPACITY There is no free capacity in the factory The Staff in Office and Factory are always busy Every inch of the Factory and Ware Houses is full of material And People are working more than 8 hrs, often leave late for home and even come on weekends to work 24-08-2013 3 We need Additional CAPACITY !!!
- 4. Copyrights©2013CVMark.AllRightsReserved. WE NOW HAVE A CAPEX PLAN Machines and Tools Infrastructure Computers and s/w support People, RM and Startup Expense Cr 10 Cr 15 Cr 3 Cr 12 Cr 40 24-08-2013 4
- 5. Copyrights©2013CVMark.AllRightsReserved. ADDING CAPACITY NEEDS HUGE MONEY RETURNS TAKE TIME IT DIVERTS ATTENTION FROM CURRENT OPERATIONS REQUIRES A LOT OF EFFORT MUST BE CERTAIN ABOUT RETURNS ROI ? 24-08-2013 5
- 6. Copyrights©2013CVMark.AllRightsReserved. THE REALITY THE WORLD IS NO MORE THE SAME GROWING COMPLEXITY EVER MORE UNCERTAINITY FIERCER COMPETITION GROWING PRODUCT OBSOLESENCE UNPREDICTABLE CUSTOMER PREFERENCES SHIFTING MARKET PLACES EVER CHANGING DEMAND 24-08-2013 6
- 7. Copyrights©2013CVMark.AllRightsReserved. THE REAL PROBLEM FOR A SUSTAINIABLY GROWING BUSINESS, WE MUST TAP AVAILABLE OPPORTUNITITES IMPLEMENT CAPEX PLAN THE BUSINESS ENVIRONEMNT IS FULL OF UNCERTANITY IT IS TOO MUCH RISK TO INVEST IN UNCERTAIN ENVIRONMENT24-08-2013 7
- 8. Copyrights©2013CVMark.AllRightsReserved. Remember ! Capacity of an Organization Capacity as You see today Last best, Last demonstrated , Average… Your next substantial increase in capacity need not come by investing in CAPEX 24-08-2013 8
- 9. Copyrights©2013CVMark.AllRightsReserved. In fact • Your next significant capacity growth depends on the CAPACITY of your team to see Hidden Capacity in your organization. • Because, significant capacity of your organization is hidden somewhere inside the organization. 24-08-2013 9
- 10. Copyrights©2013CVMark.AllRightsReserved. What should U Do? • Holdback the CAPEX list and take the capacity Hunt Challenge – Your capacity is not hidden in many places, it would be in one or just few places. Do not waste your money, time and effort in trying to improve all places • The Truth is: – Your staff knows where the capacity is hidden. – And your organization has everything to unhide capacity, without too much trade-offs and burn-outs 24-08-2013 10
- 11. Copyrights©2013CVMark.AllRightsReserved. Indeed your team can • Identify Hidden Capacity in Less than 30 hours • Realize Extra Capacity in Less than one Lead Time. Without spending too much money and without taking real risk 24-08-2013 11
- 12. Copyrights©2013CVMark.AllRightsReserved. Here is How • Present your operational performance • Your sales team confirms that indeed demand for some products is higher than supply • Your team – Follows the trail inside the factory to Identify the ‘one thing’ that Limits your Capacity – Identifies and Calibrates the Hidden Capacity – Draws up action plan to Activate the Hidden capacity – Agrees on a mechanism to harness Hidden capacity All in less than 30 hours24-08-2013 12
- 13. Copyrights©2013CVMark.AllRightsReserved. To know the process of Identifying Hidden Capacity Read the section “Surfacing 20% Hidden Capacity in less than 30 hours”, in the game changing book “Building Manufacturing Competitiveness “ eBook https://www.smashwords.com/books/view /311306 and http://www.amazon.com/dp/B00CIZR1LQ The hard copy is available at https://www.createspace.com/4257639 24-08-2013 13
- 14. Copyrights©2013CVMark.AllRightsReserved. Don’t Delay Take the Capacity Hunt Challenge Now You can also call +91 94480 70081 or write to lolla@cvmark.com Remember ! Your organization is loosing substantial capacity every day!! Plug it now!!! 24-08-2013 14
- 15. Copyrights©2013CVMark.AllRightsReserved. References • This presentation is a part of the sequel along with following : – What is Operations? – Capacity Hunt Program Reveals Hidden Capacity 24-08-2013 15