Kirloskar Oil Engines Ltd. (KOEL)
By focusing on enabling flow of projects in the New Product Development funnel using TOC principles, KOEL crashed lead time of projects!
Equipment Manufacturing
Rapid Flow R&D
From a business standpoint, NPD is of crucial importance for business growth in KOEL. But as in most NPD organizations, the enormous workload, high uncertainty and a heavy dependence on external suppliers had made the task of new product development very challenging. The process was riddled with frequent rework, delays in parts development and production stabilization. But by applying the principles of Theory of constraints and by focusing on the flow of projects in the funnel, rather than individual projects, this division broke out of a vicious loop of delays and capacity wastages. Within one year of implementation, the following major benefits realized.
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Video Case Study
Kirloskar Oil Engines Ltd: Accelerating New Product Development (NPD)
Senior management at Kirloskar Oil Engines Ltd.(KOEL), their suppliers and dealers discuss the benefits of moving away from a forecast-based model to consumption-based operations. KOEL is now not only able to offer guaranteed deliveries in ONE WEEK (industry standard is four-six weeks) but have also reaped several financial and operational benefits.
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