Sigma toys

Cover page
 Brief: Problem statement:
Sigma toys is facing the issue Current situation of supply chain structure For our team to optimize
of reduction in profitability supply chain issue of
and market share. Sigma toys.
Fact analysis and issues:
 Operating income is decreasing
 Logistic and production cost have been raising constantly for few years.
 Packaging cost, taxes and freight charges are not channelized in an optimum way.
 The handling of rejected toys is generic.
 Reselling of them have to be more streamlined.
 Shelf availability issue duet to mis functioning of toy manufacturing units
 Reactor issue as more waiting time. Extra helpers wait long, underworked.
 Which might be leading to HR issues, which is causing attrition.
 Lead days are more for certain cities, and adding the freight charges to that,
 it is chaos and not optimized.
 Total demand is high than our production. 21.5 lakh is lesser production.

Toy manufacturing plant
o Bhubaneshwar is like the rotten
apple.
o With only 25% conversion and
high packaging rate of Rs 3.
Logistics Issues
 Lucknow having highest
lead time.
 Bhubaneshwar again with
the high freight cost.
PVC plant running like a govt. office
o 4 hours waiting hour for the reactor
workers.
o Tanks been function at 50% capacity only.
o One of the main cause of increasing cost is
mismanagement of PVC plant, on all levels.