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Both the cluster members as well as the economy stand to gain through the implementation of this approach. Participating companies have experienced both tangible and intangible benefits.
Tangible Benefit
Some tangible measurable benefits that companies have achieved include:
- Space saving of around 375 sq mtrs
- Upto 30% improvement in productivity
- Sales increased by around by 35%
- Manufacturing costs reduced by about 25%
- Inventory turnover improved by about 50%
- Significant reduction in change-over time
- Energy cost saving by 50%
- Financial saving of over Rs.100 lacs
- Reduction in manpower requirements
Intangible Benefit
Intangible benefits include greater employee involvement, better working environment, improved floor space utilization and safe working conditions. The last benefit can also be measured in tangible terms as companies are known to achieve a zero accident or no accident status.
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