Throughput accounting- Indian Institution of Management Banglaore: Bangalore.

Abstract

Siemens India, is in the process of reengineering its operations to face the challenges of tomorrow. Though the products manufactured by Siemens are widely accepted due to their superior quality, there is a significant gap between the delivery times required by customers and actual delivery times. It is with the objective of studying the throughput time, that the project was done in the Switchboard factory at Kalwa. Throughput time ir. defined as the time taken from the receipt of order to the collection of payment after despatch* The scope of the project was however limited to the activities taking place after the receipt of order in the factory. Analysis of the extra time taken to complete the orders reveal that majority of th6 time spent on the order is in various administrative activities, which add little value to the end product. In order to reduce the time spent by an order in the Assembly and Testing areas, timely availability of components / equipments and increased co-ordination between Sales, ESD and Works are necessary. The implementation of IPS and SCOPE system which are partly introduced to offer a solution for the problem, should be expedited. Radical systems changes by way of Equipment ordering and Technical processing by ESD will help in dramatically reducing the throughput time. Apart from satisfying the customers' delivery requirements, the reduced throughput time will result in enhanced capacity to manufacture more panels resulting in increased profit to the tune of 189 %. TIME should be recognised as a competitive weapon, in addition to cost and quality of the products and all efforts must be made to realise the potential benefits accruing out of reduced throughput time.