About this Presentation
Fleetguard Filters Limited (FG) is a joint venture between Fleetguard US and Perfect Sealing Systems P Ltd for manufacturing filters and other auxiliary systems for heavy commercial vehicles and heavy duty internal combustion engines. FG has been growing sales and profits consistently at 20%+ for the last 4 years. While sales and profits were growing at a healthy rate, the return on capital employed (ROCE) was stagnant around 10-12%. Around 2005 the senior management team at FG was exposed to TOC through the TOCICO conference at Barcelona, and the Viable Vision (VV) event at Mumbai. Our TOC guide helped us understand our constraint, and explained how our measurements were preventing us from exploiting and subordination to our constraint. We decided to measure only 3 parameters i.e. throughput, throughput loss, and productivity (T/OE). We started monitoring these on a weekly basis. We also abolished most of our monthly reports. We linked our people compensation to increases in throughput. Within 30 weeks our throughput increased by 35% without any increase in operating expenses, and thereby our profits increased by almost 100%! We experienced the truism that measurements drive behavior. Fleetguard Filters was able to increase its sales and profits continuously over 4 years but not its return on capital employed.
What Will You Learn
To help you get the most value from this session, we’ve highlighted a few key points. These takeaways capture the main ideas and practical insights from the presentation, making it easier for you to review, reflect, and apply what you’ve learned.
The company improved its business performance significantly by focusing on quality and delivery, implementing global measurements, and increasing throughput.
The company achieved a 48% increase in throughput and more than a 70% increase in profit.
The company subordinated everything to the decisions of quality, delivery, and throughput, even to the extent that senior-level individuals would step in to ensure quality and delivery if necessary.
Instructor(s)
Niranjan Kirloskar
Ms Alka Wadhwa
Alka Wadhwa is an experienced consultant and process improvement expert with over 24 years of expertise in the Theory of Constraints (TOC), Lean Six Sigma, and organizational performance optimization. She has successfully led projects in healthcare, financial services, and manufacturing, driving significant improvements such as a 67% boost in hospital operations and a 140% increase in outpatient visits.
Previously, Alka Wadhwa spent 17+ years at GE Global Research Center, where she led initiatives to enhance various GE businesses through advanced technologies, process redesign, and system optimization. Founder of Better Solutions Consulting, LLC, she specializes in using TOC, Six Sigma, and data analytics to streamline operations and build high-performance teams.
Her work has earned her multiple accolades, including the Empire State Award of Excellence in healthcare.
Dr Gary Wadhwa
Dr. Gary Wadhwa is a Board Certified Oral & Maxillofacial Surgeon with extensive experience in the field. He completed his Oral & Maxillofacial Surgery training at Montefiore Hospital, Albert Einstein College of Medicine in Bronx, NY, and has served as an Attending at prestigious institutions like St. Peters Hospitals, Ellis Hospital, and Beth Israel Hospital in NY. With a career spanning over two decades, he was the former CEO and President of a group specialty practice in NY from 1994 to 2015. Dr. Wadhwa holds an MBA from UT at Knoxville, TN, and has undergone additional training in System Dynamics at MIT, Health System Management at Harvard Business School, and Entrepreneurship and healthcare innovations at Columbia Business School. Committed to expanding access to Oral & Maxillofacial Surgery care, he is currently engaged in a meaningful project to provide healthcare services to underserved populations in inner city and rural areas through non-profit Community Health Centers.