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Case Study on Enhancing Capacity Utilization by 35% through Virtual Integration
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(May 25, 2020)

The newspaper publishing business across the globe adopted a drastic paradigm shift in therecent past. The new paradigm was to have a flexible production capacity that can offer a wide range of innovative product combinations and increased productivity.

In the light of fast changing and increasingly complex customer requirements, existing machine configuration at Airoli facility of The Times of India was found to be incompetent in terms of Flexibility and Operational Efficiency. Emergence of fresh market requirements necessitated some of the most efficient product combinations printed at Airoli to be shifted to other locations. This made the facility much underutilized – the capacity utilization drastically fell down from 42% to 34%.

The Virtual Integration concept supported by advancement in technology was to integrate two physically and operationally separate machines into combinations of virtually and dynamically configurable machines. The idea ensured optimum utilization of both machines that could be configured up to 4 machines with variable product possibilities. The idea also made it possible to integrate UV unit to the press that could offer an innovative 2-page glazed jacket for The Times of India and other dailies, which opened up a great revenue opportunity.

The Project was executed utilizing PDCA Methodology and achieved the tangible financial savings to the tune of Rs. 13.07 crore.

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