Virat Services Case Study: Fixing MOQs Proved to Be a Blessing to Increase Sales and Productivity

The names used in case studies do not reflect any individual or company and are totally fictional.

Background
During Virat Services’ QMS consultation at Danishbhai’s factory (a Jamnagar-based manufacturer of precision brass components), a major roadblock was identified while analyzing machine productivity. Despite having skilled manpower and well-maintained machines, many machines consistently showed less than 50% efficiency.

The Problem
During a routine review, Mansukhbhai (the owner’s brother and key decision-maker) had a detailed conversation with Virat:

Dialogue – Identifying the Problem

Virat:
Mansukhbhai, I was reviewing the production logs. Why are machines frequently showing below 50% efficiency?

Mansukhbhai:
We also found it strange. Operators say it’s due to too many changeovers in a day.

Virat:
Let me check the order quantities… Hmm... 27 pcs, 93 pcs, 57 pcs? These are all small and uneven batches. Each changeover takes around 2–3 hours – tool search, fixture setting, sample part validation, etc. This is the main cause of downtime!

Mansukhbhai:
Yes, our production in-charge always keeps 2–3 extra parts in case of rejection. But we didn’t realize the changeovers were killing our productivity.

Root Cause Analysis

• Avg. Changeovers/Shift/Machine: 2.4

• Avg. Changeover Time: 2.5 hours

• Total Downtime/Shift/Machine Due to Changeover: ~6 hours

• Machine Efficiency: ~48%

Virat’s Solution: MOQ System Based on Part Size

Virat:
Danishbhai, I propose we fix MOQs based on part size and machine cycle logic. This way, you’ll run machines for minimum half-shift without resetting.

Danish:
But Virat, our customers order these odd quantities. Will they accept this?

Virat:
Let’s not assume. Let’s communicate. Here's the MOQ logic:

Part Diameter (mm)	Minimum Order Quantity	Justification
0–32 mm	100 pcs	Avg. cycle time allows 100 pcs/shift
33–50 mm	50 pcs	Takes more time, but 50 pcs feasible/half-shift
51–100 mm	25 pcs	Larger parts, slower speed

Also, MOQs should be accepted only in multiples – like 100, 200, 300; or 50, 100, 150; and so on.

Customer Communication Drafted by Virat

Subject: System Improvement Notification – Minimum Order Quantities (MOQs)
Dear Valued Customer,

Thank you for your continuous trust, support, and business.

As part of our internal quality and productivity enhancement initiatives, we have decided to implement standard Minimum Order Quantities (MOQs) for all our items, effective from 15-04-2024.

This change is made after carefully considering part sizes, production cycle times, and operational efficiencies – with a clear intention to serve you better.

Kindly refer to the attached MOQ list and place future orders accordingly.

Looking forward to your cooperation and long-term association.

Warm regards,
Danishbhai
For [Company Name]

The Outcome – 60 Days After Implementation

Metrics	Before MOQs	After MOQs	Improvement
Avg. Machine Efficiency	48%	65%	+35%
Avg. Changeovers/Shift	2.4	0.8	–66%
Avg. Setup Time Saved/Day	~5 hrs	~1.5 hrs	+3.5 hrs/machine
Monthly Sales Turnover	₹23.5 lakhs	₹26.5 lakhs	+13%
Customer Complaints on MOQ	NA	0	Zero Resistance

Dialogue – After Results

Mansukhbhai (smiling):
Virat, I thought we’d lose orders. But guess what – not a single customer complained! And now we’re booking more orders than before!

Virat:
That’s the magic of systems, Mansukhbhai. Clear communication, fair logic, and consistent execution – it always works.

Danishbhai:
And even our operators are less stressed now – no more mad rushes to change setups every few hours!

Conclusion:

This simple decision to fix MOQs brought massive gains in efficiency and sales, while also improving shop floor stability and customer discipline. All it needed was data-backed reasoning, clear communication, and courage to change.

— A classic example of how a QMS-driven approach delivers real, measurable results.