About this Presentation
This presentation describes how Tata Advanced Materials Ltd. used TOC principles to double its operational productivity, turn-around from loss making to profit making, and sustained the profit increase over the last four years! After an overview of Tata Corp. and Tata Advanced Materials Ltd., the presentation describes the situation as: Due to the heavy investments made for the aerospace business and the time taken to ramp up the execution of orders, the losses started to go up and reached a peak of $10 mn on sales revenue of $14 mn USD in 2012-13. The spree of losses continued in 2013-14 and the 1st half of 2014-15. In October 2014, SR Mukherjee (aka SRM) joined the organization. SRM had worked in an organization previously, where TOC had been implemented. It was decided to implement TOC in TAML to improve its OTIF, throughput and profits. TOC Implementation started with a weekly dashboard and reviews every week from November 2014. The following metrics were used to build alignment in the organization: OTIF, net revenue, throughput, customer complaints, and free cash flow (FCF). The entire senior team was aligned to deliver on these parameters and discussions were focused on planned vs actual achievement, variance between the two and the corrective actions to be taken in the coming week to meet the plan. From this beginning the detailed Tata journey and results are provided. Video length: . PDF: slides.
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.
Tata Advanced Materials underwent a significant operational turnaround using TOC principles, transforming from a loss-making to a profit-making company.
The company focused on improving key parameters such as on-time and full (OTF), net revenue, throughput, customer complaint and free cash flow.
The company also focused on improving its working capital by buying smaller lots, increasing replenishment frequency, reducing MOQ with vendors, and focusing on the aging inventory.
Instructor(s)
S. R. Mukherjee
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.