Case Study

Tranter India (C): Lean implementation

13 pages
October 2016
Reference: IMD-7-1829

The case describes the rolles coaster years of Tranter India in three different acts. Part A shows the raise from 2006 to 2009, delivering fast growth by tripling revenues while increasing the margin. Only in part B, one comes to realize that the high growth period was not sustainable as cash related metrics were clouded. Tranter had increased inventory to handle extra capacities. And under the aim of high growth, market share was hunted for through extra credit terms. This came back to haunt the company. To turn around the sinking ship, two interventions are considered: introducing Lean and upgrading the ERP system. Part C unveil Lean as the cosen path and what the challenges of the implementation were and how it ultimately led to success.

Learning Objective

cash is king! – Don’t get fooled by positive looking Key Rations – only Cash is King! – Growth does not necessarily have to be good. Change management: Change is more than implementing process and systems. Change has to go deeper and become a culture. Only then it can sustain. Changes do not happen overnight. Strategy: a competitive advantage which is imitable is not lasting advantage. Inimitability increases when competitive advantage is complex and knowledge based.

Keywords
Change Management, Lean Management, Working Capital, Enterprise Resource Planning
Settings
Asia, India
Tranter India, Manufacturing
2006-2011
Type
Published Sources
Copyright
© 2016
Available Languages
English
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