"This case focuses on production and stock management at Synthite, an oleoresin manufacturer in Kerala, India. It discusses the issues the company faced in the production of pepper oleoresin, one of its main products, and follows the problems to Synthite's make-to-stock (MTS) generation strategy, inventory management practices and several stuff flow practices at the plant.
Synthite, recognized in 1972, had developed to become the major exporter of spice oleoresins from India, with a 35% allocation share in the worldwide oleoresin business.
The company faced several challenges in stock management, production preparation, and ultimately, in satisfying customer prospect on order lead period. Driven by indecisive demand, their ad-hoc finished commodities carrying strategy came to naught. Manual transports of substances in the plant resulted in the waste of plant capacity, resources labour and stuff. Lengthy quality tests on just one sequence blocked 30% to 50% of output capacity for extended intervals. The case summarizes, and provides quantitative data to assess the inventory management, material flow and order lead times of Synthite company's strategy to addressing the challenges it faced. Synthite finally decided to put money into automated material flow and additional production capacity at the plant. "
PUBLICATION DATE: February 15, 2013 PRODUCT #: ISB011-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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