Employee Strength
Annual Turnover - INR (Cr)
Sector: MSME – Industrial Valves & Precision Components
Location: Coimbatore, Tamil Nadu
Background
VEE Engineering Pvt. Ltd. (VEE) is a 25-year-old MSME manufacturing industrial valves and precision components for the oil & gas and water treatment industries. Despite a strong reputation for product quality, VEE was facing serious operational bottlenecks and customer delivery issues due to outdated processes, fragmented IT systems, and a lack of real-time visibility into production and inventory.
Business Challenges
- Functional Silos: Production, procurement, and sales teams operated independently with poor interdepartmental coordination.
- Manual Processes: 70% of documentation and approval processes were manual, leading to errors and rework.
- Inefficient Order Fulfilment: Average order-to-dispatch cycle was 28 days, with a 15% delay rate.
- Limited Data Visibility: Absence of a unified reporting system—data scattered across Excel files.
- High Inventory Costs: Excess raw material stock due to inaccurate demand forecasting and poor supplier scheduling.
- Customer Dissatisfaction: Late deliveries and limited communication regarding order status.
BPR Objective
To redesign core business processes—from sales order to delivery—to improve efficiency, reduce costs, and enable real-time decision-making through digital enablement.
Approach
The BPR project was executed over six months, following a structured five-phase methodology led by KVM Consulting.
Phase 1: Process Assessment & Diagnostics
- Conducted stakeholder interviews across all departments.
- Mapped over 40 core and sub-processes.
- Identified 12 high-impact process pain points.
- Benchmarked KPIs against industry standards.
Phase 2: Process Redesign
- Sales-to-Dispatch Cycle: Redesigned to integrate sales, production planning, and procurement workflows.
- Procurement: Introduced a supplier portal and just-in-time (JIT) procurement.
- Production: Shifted from batch-based scheduling to flow-based manufacturing.
- Inventory: Implemented ABC analysis and automated reorder levels.
- Quality Control: Standardized inspection templates with real-time defect logging.
Phase 3: Technology Enablement
- Deployed Oracle NetSuite ERP (Cloud) integrated with barcoding for inventory tracking.
- Introduced digital dashboards for production, finance, and supply chain KPIs.
- Implemented workflow automation for approvals and document control.
Phase 4: Change & People Enablement
- Conducted 10+ training workshops.
- Created a “BPR Champion Team” for continuous process governance.
- Revised job descriptions and introduced KPI-linked incentives.
Phase 5: Performance Measurement & Continuous Improvement
- Set up process performance dashboards to be monitored monthly.
- Regular audits for process adherence and improvement cycles.
Outcomes (Post 6 Months of Implementation)
KPI | Before BPR | After BPR | Improvement |
|---|---|---|---|
Order-to-Dispatch Cycle | 28 days | 16 days | ↓ 43% |
On-time Delivery Rate | 85% | 97% | ↑ 12% |
Inventory Turnover Ratio | 3.2x | 5.8x | ↑ 81% |
Production Rework | 6.5% | 2.3% | ↓ 65% |
Administrative Costs | ₹1.2 Cr | ₹0.8 Cr | ↓ 33% |
Customer Satisfaction Score | 78% | 92% | ↑ 14 pts |
Key Success Factors
- Strong top management sponsorship.
- Cross-functional team participation in process redesign.
- Early integration of digital tools for visibility and accountability.
- Continuous communication and training during transition.
Conclusion
Through a focused BPR initiative, VEE Engineering transformed from a function-driven to a process-driven organization, achieving operational excellence, reducing costs, and enhancing customer satisfaction.
The project became a model for MSMEs looking to combine Lean principles with digital transformation for scalable growth
