Assignment: Case study – Change: To Be or Not to Be
Table of contents
1. Executive Summary
2. Presentation of the Problems
3. Presentation of the Solution
4. Analysis of the Solution
“Continuity gives us roots; change gives us branches, letting us stretch and grow and reach new heights” And that what Parthiv Vyas had thought for his company- Mebrisk India- before he introduced new reforms in the company in order to help it reach new heights. However, three years later Mebrisk India discovered its system revamp was a completely futile exercise. Adip Arya was extremely dejected when he found the system he had partly engineered with Parthiv Vyas was today being considered as completely fruitless by the Company’s new director of Operations, Kevin Mathais. It all began in 1997 when operations and finance in Mebrisk India was taken over by Parthiv Vyas, a commercially - driven person, who came from Delaware. Soon, after joining the company he came across many flaws in the working of the Sales and Production Teams respectively. He felt the Sales and Production Team can work together in cooperation only if commercial becomes proactive in the company. So the first thing he asked his team is to get him a zero or negative working capital and that can be done by the team by recovering the money from debtors before the company has paid for the raw materials. Parthiv also found that the production plan was not in sync with sales plan. He realized that the problem lies with the factories as they produced what they desired irrespective of what the market needed. This was happening due the miscommunication between the Sales and Production Teams of the Company. Hence, Parthiv came to the conclusion that need of the hour was to connect the factories with depots to regions to head office. As a result, he ordered every location to be provided with V-Sat connections at a huge cost, that is, 17 Crores. By doing so, he reduced the production planning cycle from one month to one day. Later, he also found that the company was producing and accumulating eight times more than required! In order to solve this problem, he asked his production team to manufacture the entire year’s need of products and dispatch it to the zonal stock points (ZSPs). Therefore, he set up various ZSPs and systems were put in place. This helped in reducing the production set up and re-set up runs. As a result for all these reforms, the company witnessed sync in the stocks and the tussle between the sales and production teams also stopped. In short, the new reforms were now a work of art. However the things changed in 2000, when Parthiv left the company and Kevin Mathais took over. He was not too happy with the “Plan Revamp”. He was of the opinion that the company was paying too much for technology and nothing was being achieved. He wanted the produced items to be moved directly to the stockists and hold them there rather at the ZSPs, the factory should be allowed to do the production planning and decide what and how much should be produced rather than the sales. In short, Kevin was trying to the company’s former condition. Kevin was shocked how did Adip Arya agree to such a revamp which was a complete waste and top of it the company never saved anything but not only lost everything. Confused and troubled by the questions of Kevin Mathais approached his boss and general manager, Hemant Trivedi. Hemant Trivedi tried to console him by explaining him the scenario when Parthiv had implemented the reforms. Hemant told Adip that e-commerce is not a way to reap results but it is a way to manage the internal things within the company more efficiently. It has made the things so dependable and easy as communication system is so strong among all the sections of the Company. Hemant was of the opinion, that without it, the...
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