October 2018 saw the start of our operations out of Manangi Grama located on the outskirts of the historical town of Sira, 130 km from Bangalore. Our first micro-manufacturing unit with 7 workers was thus set up, amidst the lush green farms with the help of our unit in charge, Radhakrishna, and a team member from Bangalore.
What started as a unit with 7 workers, quickly transformed into one with 32 workers in Jan 2020, owing to the increased demand. Even as orders continued to flow in, we were limited to this 20*30 sq. ft space which could not accommodate any more workers, materials, or machines.
Thus, began our quest to expand a traditionally cottage industry manufacturing model to meet our growing demand while still retaining the handmade authenticity of our products.
As we looked around for a space to spread our roots, we zeroed into a location that worked for our short term goal of making 1 lakh popz a day and also our long term vision of creating a brand sourced, processed, and manufactured at the farm gate.
With the location sorted, we had a building in our hands and a vision in our minds, January 2020 thus saw the start of a new saga of expansion. It took us 3 months to get the unit in shape and this includes the lockdown period in April.
Here are some of the learnings that I thought would be helpful to share from the whole experience:
- Seek Expert Advice: While the need and desire to expand was apparent, the process seemed daunting. We started by reaching out to contractors and quotes we received had variations upwards of 50%, also we figured that we had very little understanding of the technical specifications. It was very apparent that we needed expert help. We finally settled on Zafar & Associates from the project management services domain. In hindsight, this was one of our best decisions, seeking help from domain experts saved us substantial time & money.
- Due Diligence: Finding someone with experience and who would be responsible for the PMS is not enough — You’ve got to do your due diligence too. One of the biggest challenges here was to source information on the right price owing to the lack of transparency in the construction industry. Hence our process of due diligence involved google searches, reaching out to family and friends experienced in this field, checking industrial buying sites, etc. These seemingly small tasks go a long way in cutting costs.
- Planning Phase: Dwight Eisenhower once said, “Plans are nothing, planning is everything.” We possibly couldn’t explain our planning phase better. One of our mentors who has helped build India’s largest food plants told us “Your plant is as good as your process flow”. To get a good understanding of the process flow, we involved everyone from machine operators to PD experts & the unit in charge. This learning helped create a plant layout that worked for us.
- The Big Three: We, as a team, identified three major, uncompromisable factors to be kept in mind while working on anything — hygiene & cleanliness factors, process flow design, and sticking to our budgets. These factors were at the cornerstone of all our decisions. We evaluated all of our decisions on these three pillars. This helped us be consistent in our execution.
- Decision Making: Very soon into the process we realized that having centralized control on large decisions e.g. budgets and local control on small, on ground decisions like the requirement of extra labor, material, etc would help us speed up the process. In this way not only did we cut down on the extra layers of hierarchy but also managed to improve our team communication.
- Balance between Outsourcing & In-house Sourcing: While the civil and electrical work was outsourced, a balance was maintained by handling all the internal fixture requirements in-house. Deciding on any requirement involved the following:
- Google research
- Talking to multiple vendors
- Comparing quotes
- Visits to the wholesale markets or industrial areas
This not only helped us understand the market, but we also got great insights on the variety available in the market, quality and costs for the respective items.
- Plan the Transition: Smooth transition is the key and planning this ahead of time is essential. This became even more important as during the transition our regular production had to continue. Transition checklists make the switch easier as well as the responsibility is well divided.
- Execute. Learn. Execute: This was the only mantra we followed. As we got used to the big space, we realized that while aesthetics is important, functionality is the MVP. To give an example, we covered all our windows with polycarbonate sheets which would protect the unit from insects, rain, dust as well as look aesthetically pleasing. However, within no time of working inside the unit, we realized that because of the thick sheets, there was no ventilation inside, and the unit became a furnace to work in. The sheets were then replaced by steel rods and strong meshes for better ventilation. These meshes solved all the dust, rain problems and also ensured ventilation.
- Expect the Unexpected: Timelines get extended. Lockdowns happen. Plans are disrupted. In short, expect the unexpected. The disruption in the supply chain right from shortage of labour to transportation challenges slowed the process further. While timelines need to be precise, a buffer of 35–40% in the number of days must be accounted for.
- Continuous Process: Only by being in space can one improve and work on it continuously. Even after the unit is set up and running, we are constantly working on improving it. Any addition to the unit is evaluated in terms of the following:
- Whether the equipment/ item is essential
- If it will add value to the unit or the workers
- If it improves the efficiency of an already existing process
- Cost variance of the existing process v/s the new addition
This journey of expanding the unit has been one crazy ride for us; and still, every week is a new challenge. Doing this from scratch makes us believe that soon we will be setting sights on going from 1 lakh popz a day to 10 lakhs.
