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LMW achieved outstanding results through the adoption of an order Flow-based manufacturing solution, raising on-time delivery to above 95%.

LMW Ltd - Machine Tool Division

Lakshmi Groups

LMW Ltd - Machine Tool Division (MTD) is a pioneer in the <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/industries/equipment-manufacturing/">manufacturing </a>of CNC Lathe (Turning Centre) and Machining Centres. LMW's customers are component manufacturers in the automobile industry, auto ancillaries, and general-purpose machining/engineering industries. The company places orders whenever there is a need to enhance its capacity and/or capability. Two realities in this environment posed a major challenge for the company:&nbsp;<ul><li>The actual timing of when the customer needs the order delivered is subject to uncertainties (at the customer’s end), such as site readiness, loan approvals, and market conditions.</li><li>An assembly of each of these machines involves around 1500 components, which are procured or imported from 100+ vendors. So, the actual time of order completion is also subject to uncertainties in the arrival of all the required parts on or before the scheduled assembly date. &nbsp;</li></ul>&nbsp;This coexistence of uncertainties at both ends, coupled with pressure to meet monthly targets, led to a stressed working environment and undesirable effects, including an increase in inventory (RM/WIP/FG), customers experiencing high and variable lead times, poor on-time completions, loss of assembly output, etc. &nbsp;&nbsp;After implementing an end-to-end ‘pull’-based replenishment solution to ensure components availability, the uncertainties that had been delaying the timely assembly of standard machines were significantly reduced. Further, for customised machines, an innovative manufacturing solution was introduced to ensure on-time delivery in line with committed due dates. &nbsp;&nbsp;Key benefits experienced by LMW post-implementation are as follows: &nbsp;&nbsp;&nbsp;

LMW Ltd - Machine Tool Division (MTD) is a pioneer in the <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/industries/equipment-manufacturing/">manufacturing </a>of CNC Lathe (Turning Centre) and Machining Centres. LMW's customers are component manufacturers in the automobile industry, auto ancillaries, and general-purpose machining/engineering industries. The company places orders whenever there is a need to enhance its capacity and/or capability. Two realities in this environment posed a major challenge for the company:&nbsp;<ul><li>The actual timing of when the customer needs the order delivered is subject to uncertainties (at the customer’s end), such as site readiness, loan approvals, and market conditions.</li><li>An assembly of each of these machines involves around 1500 components, which are procured or imported from 100+ vendors. So, the actual time of order completion is also subject to uncertainties in the arrival of all the required parts on or before the scheduled assembly date. &nbsp;&nbsp;</li></ul>This coexistence of uncertainties at both ends, coupled with pressure to meet monthly targets, led to a stressed working environment and undesirable effects, including an increase in inventory (RM/WIP/FG), customers experiencing high and variable lead times, poor on-time completions, loss of assembly output, etc. &nbsp;&nbsp;After implementing an end-to-end ‘pull’-based replenishment solution to ensure components availability, the uncertainties that had been delaying the timely assembly of standard machines were significantly reduced. Further, for customised machines, an innovative manufacturing solution was introduced to ensure on-time delivery in line with committed due dates. &nbsp;&nbsp;Key benefits experienced by LMW post-implementation are as follows: &nbsp;&nbsp;&nbsp;