100% realization of input values
We thank Mr. Vijayan, Managing Director of Good Leathers for giving permission to publish this case study
|Good Leather Company is a strong player in Calf leather production. Started as tannery operations, the business group carried out forward integration and successfully operates Shoe Units, Tanneries and controls Raw Material Purchase & Wet Blue production.
|Tannery operations are founded on strong management procedures personally monitored by Mr. Sekaran, one of the partners. Mr. Munikannan takes care of technical management in the tannery. Dedicated team of managers and staff ensure high quality of leathers and success of the company.
|Group chairman Mr. Vijayan took a visionary decision to go for LeatherLink Tannery Management Software in the year 2005. The progress was slow till a strong foundation was laid. From 2007 onwards systems covering Wet Blue, Chemicals and Production Operations is completely in place.
- Management control procedures for Wet Blue receipts, Assortment and Issues are computerized.
Chemical stock control was identified as priority area. Controls in the form of system generated documents are implemented for Purchase Orders, Receipts and Issues to Production.
- Gradwise Stock Reports
- Computer generated Job Cards for better tracking
- Entry and monitoring of operations done for each production batch.
- Piece to piece accounting of hides and accurate Wet Blue costing for each order despatched is calculated from the system
Production Process control is another strong features provided by LeatherLink Tannery Management Software. Good Leather Tannery defined Master Processes for each leather article.
- Purchase Order Print Outs/ Emails
- Chemical GRN
- Chemical Process Sheet
- Chemical Issue Slip
- Chemical Stock Control Statement - Opening, Purchase, Issues, Balance
- Variation between system stock and physical stock was at about 12% and is successfully reduced to less than 1%. All chemicals bought and consumed are realized as sales income now.
All customer order details, despatches made against them, details of production for the order are tracked in the system. Managers can access information for customers at finger tips.
- Link each production batch to a Master Process and monitor deviation from master process.
- On receipt of customer orders, calcualte chemical requirement for the orders in Drum and Finishing, allocate available stock to the order and plan for purchases if required.
- Deviation of actual costing from planned pricing is eliminated in the tannery.
- Handling of prepared solutions in Finishing is identified as a priority area and is the next focus of action
LeatherLink plays a role in the proud march of Good Leather Company into future.