Kurlon Limited Case

SUBMITED BY
Submitted To PRAVEEN BEN 18140
Rajendra PRERANA V 18141
Todalbagi NIKHILESH M C 18159
SOUMYA K 18170
VIBAV RAJ 18189
Introduction

 Kurlon is the largest manufacturer of mattresses, pillows and coir

mats.
 Kurlon produces 126 different configurations of mattresses.
 This sums up to 80% of total sales.
 Bangalore (caters southern, western and northern parts of India)
and Bhubaneswar (caters eastern part of India) are the two main
facilities for its production.
 Bangalore plant produces 65% of total output.
RC Pad Manufacturing Process:

 Carried out in Arisikere plant.

 It is made by combining coconut fibre & latex (3:2).
 Coir fibre intertwined into ropes which is further
stored in water for 80 days and finally Coirs get the
shape of springs
The Operations are:
1. Untwisting:
 First the moisture content is checked.
 Coirs with less than 15% are fed to the untwisting machines.
 Then coirs are untwisted.
2. Sheeting:
 Coir fibres which are at least 6 inches are fed to conveyors.
 Chemical compound (consisting of latex, clay and bonding chemicals) is spayed
in transit.
 The sprayed sheet is heated at 100C to ensure bonding.
3. Sheet cutting:
 RC sheets are cut to one of the 12 specific widths (62 to 86 inches).
4. Pressing:
 Fleeces are pressed at 120C and pressure of 2.5 bar.
 The output is referred to as Semi finished RC pads.
5. Vulcanizing:
 Pads are loaded in a tray.
 Fed to vulcanizing chamber
6. Cooling:
 Vulcanised pads are cooled before sending to pad cutting.
 No inventory.
7. Pad Cutting:
 RC Pads are cut into different pads in this operation.
 Also trimming of edges are done.
 Standard RC Pad dimension is 71 length and 51 width.
4. Pressing:
 Fleeces are pressed at 120C and pressure of 2.5 bar.
 The output is referred to as Semi finished RC pads.
5. Vulcanizing:
 Pads are loaded in a tray.
 Fed to vulcanizing chamber
6. Cooling:
 Vulcanised pads are cooled before sending to pad cutting.
 No inventory.
7. Pad Cutting:
 RC Pads are cut into different pads in this operation.
 Also trimming of edges are done.
 Standard RC Pad dimension is 71 length and 51 width.
 •Made improvements in
kurlon
• ASO(AREA SALES • Online portal assisted
• Made changes in
supply chain practices OFFICE) increased the customers in detail
to 72 for ordering process
• Moved its entire • ASOs could order
ordering system to • Had 6000 dealers
when combined to directly from the plant
internet • Software help the
• They showed an both the plants
management to
exponential growth in • Created 3 hubs check on inventory
the last decade • Increase in product Supply
everyday
differentiation
operations chain
overall
Problem

 Retailers additionally stock other marked mattresses which mean

kurlon needs to convince retailers to push there products.

 Retailers had a storage issue so they focused on the quick moving

stock on a normal, they hold 1-2 weeks of stock.

 There is an enormous interest in nonstandard size beddings and

numerous vast retailers take into account this interest though it
requires kurlon delayed in delivery.
 Kurlon stocks coir ropes and latex to counter the supply and price
uncertainties
 Competition from local players
 Challenges of providing higher variety to customers
Problem

Mismatches between indents and dispatches

Constrain of space and credit availability for retailer
Chances of lost sales
Issues were not resolved entirely
There was high number of variation under kurlon brand which add
confusion among the customers
2.Evaluate the performance of the
delhi area office on the supply chain
dimension? For your analysis you may
like to focus on SDL 72*35*4
3. What is your evaluation of the
company’s planning processes?
 In one stage of manufacturing Kurlon uses MTO model, were reginal centers provide
intends gives enough time to carry out the complete set of
operations(source,make,assemble & delivery) after placing the order
 CTO model (Build to order) also followed were suppliers give enough time to the firm
to assemble the product before delivery
 Delivery reliability : here in the case the higher inventory were hold the order
penetration point
 This is to ensure higher reliability.
 They follow centralization system where, stocks will be held at one central point and
all the retailers will be served from this central point.
 in this case inventory carrying cost will be reduced but the transportation cost will
increase.
Cont..
 Production planning is at two levels- long term and short term
 Long term plan is done in the last quarter of financial year
 Short term is done every month
 Plants deals with inflammable materials, so there is high possibility of fire hazard
 No proper safety measures were followed in the company
 No proper planning for non-standard sizes as Kurlon mainly focused only on 21
sizes
 As demand for non-standard size constitute about 10%-30% of total demand
 No proper formal forecasting methodologies
What specific actions do you recommend to
Narendra Kuduva to address supply chain
performance problems?
 Focus attention to different categories of items because Kurlon is dealing with 126 SKUs
 For categorizing SKUs we use ABC classification which is Selective Inventory Control
Technique
 ABC Classification : Items classified as A(very importance) , B(Moderate Importance) & C
(little importance)
 Cumulative Cumulative
Annual sales in percentage of total percentage of total
Item ID Item ranked by sales values quantity sales items
SDL 72*35*4 1 11032 36.81 0.8
SDL 75*35*4 2 4563 51.39 1.6
Apsara 72*35*4 3 2438 59.69 2.4
Romantique 75*35*4 126 0 100 100

According to the Annual sales (in quantity) in Delhi region we

can categorize the SKUs using ABC classification
SKUs in A categories can be given higher priority in allocation of
management time
From table the top 3 SKUs accounts for about 60% of sales
volume, so these should be classified as very important
So he should spend most of his time and attention on A-
category item
 Allocation of managerial time : A-category item should get more attention & C-
category item should receive very little
 Improvement efforts for A-category items through
1. Supplier relationship
2. Lead time reduction
 The managers should look for a contingency plan particularly for A-category items
incase of stockout situations
 A-category items has to kept at all regional distribution points(RDP), B-category items
should be kept at few RDP, but C-category items has to be kept at central warehouse
only
 Hiring temporary workers whose work can be terminated at the end of the peak
season
THANK YOU