The particular unit of Asian Paints had a relatively higher budgeted cost of production – highest chunk in man-hour, which needed to be reduced by fair means and improving the overall process.
Approach by Minton
- Minton’s developed methodology for observation of activities in 80% of production batches to map the complete task list
- Using principles of Lean to categorize all activities and associate them with productivity and value add metrics
- Consultants perspective in each activity – critically introspecting each activity, identifying reducing non value adding elements and brain storming to find best alternatives to reduce
- Redesigning norms using improved activities, small automations, modifying material movement and reorganizing roles and responsibilities
Minton team redesigned the budgeted manpower norms for 80% of production batches by an average of 16%. This resulted in a direct budgeted cost saving of 16% per unit of output.
This exercise resulted in that particular unit of Asian Paints winning an internal award for the year for the significant improvement made in the area of cost optimization.
Below are some of the insights from the observations and redesigning of manpower norms