Case Study - GEX: Gokaldas Builds a Lean Culture and Increases Profitability
Client
Gokaldas Exports Ltd. (GEX) is one of India’s largest apparel exporters. It is a “one-stop shop” for the world’s most preferred apparel brands, including major casual and sports clothing lines. In 2007, the private equity firm, The Blackstone Group, became a partner in GEX.
Challenge
GEX’s leaders determined they would need to improve profits 15 percent to 20 percent without adding resources in order to maintain their leading position. Nike, a key client, strongly suggested that the company implement lean process improvements, but GEX’s longtime leadership was skeptical that lean production would work in the garment industry.
Solution
Reassured by TBM Consulting Group’s guarantee of satisfaction and exposure to wide-ranging success stories at a “CEO Boot Camp,” Executive Director Dinesh Hinduja invited TBM into the company for an assessment and subsequent productivity-improvement action plan based on the LeanSigma® methodology. This included four weeks of lean training for three chief operating officers, all of whom received lean certification.
Results
Initial lean training and teamwork yielded productivity increases of as much as 35 percent— without adding resources. GEX made significant strides in on-time delivery, first-pass yield and productivity. Plus, sales increased by two percent in spite of a severe economic downturn. The company’s competitive position within the industry was strengthened due to improvements in lead time, employee absenteeism and attrition.
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