Lakshya is an initiative by Club Kaizen which is our monthly supplement designed for people who dare to think above the average and believe in connecting the dots. In an age where technology has taken over every sphere, information is abundant and data is omnipresent, we have conspired to bring to you a collection of thoughtfully created and carefully curated pieces of work by some bright aspiring minds of ICFAI Business School, Hyderabad on the current trends and hot topics in the field of Operations Management and their relevance in different Industries. Everything is growing at the pace of nanoseconds and hence it is quintessential to know about every minute change in the ecosystem. With Lakshya we aim to present our readers with compact yet explicit articles on vivid topics such as the Internet, Banking, IT, IoT, etc. A fair share of this edition focuses majorly on the banking systems and payment gateways. With the constantly evolving technology, it will be interesting to ponder over changes that could be seen soon. We look forward to providing the students with some valuable insights and inculcate the passion for reading once again within our readers. Lakshya is an amazing platform for readers as well as aspiring readers to showcase their talent and pen down their thoughts which in turn will be a gold mine for information for the students of not only IBS but from the outside world too.
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OUR KNOWLEDGE PARTNER
Club Kaizen is privileged to have The International Supply Chain Education Alliance (ISCEA, USA) as the Knowledge Partner from Lakshya’s 24th edition. To be a single source for Total Supply Chain Knowledge through Education, Certification, and Recognition is the mission of ISCEA. Many workshops/events are conducted by ISCEA to improve the knowledge of manufacturing and service industry professionals. ISCEA provides a platform to explore leadership potential to the aspiring leaders in the supply chain industry while developing the skill sets and knowledge desired by corporations, through SCNext (ISCEA Young Supply Chain Professional Association). Some of the internationally recognized certification programs developed by ISCEA include1. 2. 3.
Certified Supply Chain Analyst (CSCA). Certified Demand Driven Planner (CDDP). Supply Chain Case Competition.
To know more about ISCEA, visit http://www.iscea.net/india. We look forward to working with ISCEA in spreading knowledge and reaching greater heights together.
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EDITOR’S LETTER “Today a reader, tomorrow a leader”
Colleges are the best part of our life and magazine is its powerful tool and an integral part of the overall infrastructure and the vision of the college. Magazine becomes a platform for all the students and faculty to express their literary and artistic talents. It also ignites young minds. I feel extremely honored by my association with the 43rd edition of "LAKSHYA" Club Kaizen’s monthly supplement designed for people who dare to think above the average and believe in connecting the dots. As the editor, it has been a combination of fun, work, meeting, discussions, surfing, browsing, typing and so much more!
I congratulate the entire editorial board for their excellent team work and unflagging efforts for successfully compiling the magazine. This wonderful edition would not be possible without the support of the team. Hard work and dedication of many people have gone in its making. I was very thrilled to receive informational articles from you all showcasing your writing skills and brilliant creativity. I hope you enjoy reading as much as we enjoyed framing it and have a delightful experience as you flip through every page of this issue. Please let us know if there are any subjects, you'd look forward to being addressed in upcoming editions. Please write to us and become a part of this discussion. Email ID: kaizenclub.ibs@gmail.com Happy Reading!
GARIMA SONI JOINT SECRETARY INTERNAL AFFAIRS & ADMIN Club Kaizen – IBS Hyderabad Batch 2020-22
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CONTENTS
S. NO.
TITLE
PAGE NO.
1
From the Mentor’s Desk
5
2
Internet of Things and Healthcare: A Marriage of Disjoints?
7
3 4
The Changing Paradigm of Logistics Operations Is FinTech the Future of Supply Chain?
11 14
5
Pandemic Challenges In Medical Glass Industry
17
6
How to Make a SMART World?
23
7
Squid Game - A Look at South Korea’s Debt Trap
25
8
Factors Influencing the Facility Location
27
9
Supply chain management with Internet of Things (IoT)
31
10
Managing Quality
35
11
Use Of Technology in Inventory Management
39
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From the Mentor’s Desk In the era of competition, students must be prepared for the ever-changing business environment. Knowledge creation plays an important role to learn to tackle the dynamic nature of business. I appreciate and congratulate the initiative of club KAIZEN for bridging the gap between the corporate world and academia through LAKSHYA which is an excellent platform where industry practitioners, academicians, and researchers can share their knowledge and experience, acting as a beacon guiding students to reach their goal. My best wishes to Club KAIZEN in their endeavor of knowledge creation through LAKSHYA.
Dr. Nishit Kumar Srivastava Mentor, Club Kaizen
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FACULTY’S INSIGHTS
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Dr. Shankha Sengupta Department of Operations and IT, IBS, Hyderabad. Internet of Things and Healthcare: A Marriage of Disjoints?
Internet-of-Things (IoT) could be defined as device-based networked interaction approach, enabled through inter-machine communications, involved in the assimilation and dissipation of data. IoT facilitates connection irrespective of place, time, and the type of device through the cryptic empowerment of the objects (devices), additionally providing the optimal utilization of multiple routes, network, or service. It could also be represented as an innovative technology, with its sheer concentration towards the networked environment, to incorporate the conglomerate communication of various wireless as well as wired connections. Let’s commence with an example of IoT implementation in the physical scenario: IoT could be utilized to facilitate traceability and simultaneous tracking of mobile objects tagged with Radio Frequency Identification (RFID) tags, as the objects travel through their immediate environment; additionally, the devices which are positioned at fixed locations within an environment to monitor any relative or disruptive changes in the surroundings. Potential application could be accounting for the object transmitted through the value chain, which would ensure unprecedented and updated end-to-end visibility within the supply chain, in turn, which would accrue better security, reliability, and coordination amongst multiple players within the chain. Additionally, objects strategically stationed within an environment, equipped with sensors, regulatory capabilities, and connected to IoT, could assist in the assessment of the adjoining environment, analyse and report any changes therein, and could further process alternation in the existing state either through the intelligence possessed therein, or through situation-based parameters pre-defined in advance. The sequential and step-wise upgradation of the benefits derived through the implementation of IoT could only be derived through the accumulation, integration, and subsequent analysis of data combined from multiple technology-based sources: RFID tags, search engines, satellite images, sensors, social media posts and updates, GPS signals enabled in mobile communication devices and even photo-driven applications such as Instagram. 7 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
Though over the years, several organizations have provided various definitions and specifications for IoT design (such as MIT, EPCglobal, European Commission, Internet of Things China), the generic requirements for IoT could be attributed to similar stipulations: • • • •
Integration of devices with varied specifications and function-oriented attributes Intelligence based decision making Localization and identifying the possible trajectory of data processing, and Ensure seamless transmission and exchange of universal data.
Though the implications of introduction of IoT have been projected in positive orientation, the actual implementation of such technology could still be ascertained in its nascent stages. The integration of differently-specified devices to enable unified transmission of data could be pictured as smooth transaction processing, however, the security issues related to data phishing, breach of technology, standardizing the communication protocols, compatibility issues, human error, and manipulation intent would lend apprehensions regarding the development of aggregated commitment towards implementation of the same. An application of IoT which has been initiated in several countries is in the domain of Healthcare. The concept of “remote monitoring” of patients (non-critical/stable) on a daily basis to gain an understanding of the pattern of their viral statistics, has been observed to be seamlessly apprehended through the development of IoT devices, such as wristbands for example. The Advantage? Remote Monitoring could ensure optimal allocation and utilization of the infrastructure within the premises of a healthcare service provider (Hospitals/Clinics/Medical stations), providing better accessibility based on criticality and emergency situations, whereas simultaneously reducing the cost structure of a normal patient. Additionally, the technology could enhance medical service provisions in rural dominions as well, with broader options of analysing and devising remedial measures through expert opinions. Moreover, the introduction of such devices in healthcare observation would also propagate higher accessibility to health records without instigating higher strain on the underlying systems, and would provide increased control over one’s own health, without the requirement of repeated intervention from a third party. IoT systems in the healthcare industry have typically been devised for purposes which primarily cater to issues related to diabetes diagnosis and control, rehabilitation in case of physical injuries, and situations of “assisted living” for elderly people. Typically, IoT devices have also been designed to monitor Parkinson’s disease patients. The idea was to provide sensor-based wrist bands to such patients, and to observe and integrate information such as generic activity progressions, quivers, and an extensive pattern of patient mannerisms, coupled with strategically positioned vision-oriented technologies (such as cameras) within homes, with remotely placed healthcare systems at medical facilities, to sequentially develop an understanding of the patient’s progress with the disease through their daily lives. Similarly, monitoring of blood sugar has also been eased through the introduction of IoT. The machines are calibrated and proposed such that it eases the patients themselves to record blood sugar 8 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
levels by themselves at specified intervals. Thereafter, the device would initiate analysis of two forms of abnormalities. Based on the severity of the abnormalities, it would decide whom to notify: patient, family members, nursing services, or specialists such as doctors. Therefore, as could be justly ascertained that the trend of investment in IoT devices as a healthcare service provider could augment better accumulation and analysis of extended data and information, and could provide the end-user to self-assess and simultaneously communicate with a specialist during emergencies. Typically, it would also stimulate healing within the patient’s natural environment rather than in artificial settings, and incite better judgement and promote healthawareness within the patient without outside interference. So, as they say, “An Apple a Day, Keeps the Doctor Away”, an IoT technology in future might just induce us with the information about exactly how many Apples would suffice to our health conditions, and when to savour. References: Baker, S. B., Xiang, W., & Atkinson, I. (2017). Internet of things for smart healthcare: Technologies, challenges, and opportunities. IEEE Access, 5, 26521-26544. About the author Shankha Sengupta is presently involved as an Assistant Professor in ICFAI Business School, Hyderabad and his area of specialization is in the disciplines of Operations and Information Technology. he has also been teaching MBA sessions for the last 9 Years and has been instrumental in their academic and managerial skill development through case discussions, live projects and individual mentoring as required for the below-average students.
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CORPORATE ANGLE
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Mr. Sandeep Chordia Risk Analyst, Deloitte Haskins and Sells LLP The Changing Paradigm of Logistics Operations
How do you think FM Logistic has performed since the start of the pandemic? Like other businesses, the Indian warehousing segment is reeling under the effect of the Corona virus crisis. Driven by robust growth in the e-commerce and manufacturing sectors as well as rising demand in emerging tier-2 and tier-3 cities, logistics and warehousing space absorption is expected to grow by 35% in 2021. And will be fastest to recover from the COVID-19 pandemic. Growing demand for temperature-controlled warehouses to cater to the pharmaceutical and food and FMCG sectors, as well as growth in organized retail, are the likely drivers for this growth. Non- essential goods warehouses remained closed for some time and resulted in job losses. However, the future is bright as a recovery of the logistics sector is one of the fastest post-pandemic. Warehousing demand is increasing and particularly driven by the e-commerce and pharma sectors. The Government of India’s focus on making India a global manufacturing hub has caused warehousing clusters to expand rapidly beyond the top cities and into Tier 2 and 3 cities. Also, as most of the Tier 2 and 3 cities in India are aligned with industrial hubs the demand for A-Grade warehouses in these cities has increased substantially. Simultaneously, the increasing internet penetration in rural areas in addition to rising household income and the government’s push on digital in rural areas, has increased the pressure on manufacturing organizations to move closer to their customer base in these areas. In this endeavor to cater to the hugely untapped rural customer base, organizations have realized the importance of developing quality and world-class warehousing facilities, as these facilities not only offer operational excellence but also facilitate cost optimization. In addition, the government’s “Make in India” policy will continue to fuel growth for the industry. The warehousing sector is expected to expand manifold, despite the short-term issues, owing to various factors contributing to its future growth. Experts are of the opinion that warehousing would be among the first real estate segments to recover from the shock of the Coronavirus and might even attract huge capital, as investors switch to more resilient asset classes.
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In 2020, despite the pandemic situation looming in the country, we added 1 million sq. ft. of warehousing space under our operations as we acquired new businesses. The main impetus for this growth has been on account of great focus on the e-commerce, Omni channel, FMCG, food, and Pharma sectors. In recognition of our efforts to support the supply chain of our customers during the nationwide lockdown and the subsequent relaxation of lockdown restrictions, we were awarded the “Overall Excellence in Logistics and Supply Chain Award” at the SCALE Awards organized by the Confederation of Indian Industry. On account of our strong people and customer policies, we have emerged as a resilient, responsible, and reliable logistics service provider. Moving forward, we plan to expand our operations by another 30 lakh sq. ft. by the end of 2022-23. We will be setting up our own warehouses in the major consumption areas of the country like Mumbai, Bengaluru, Hyderabad, Chennai, Delhi. etc. Who are FM Logistic’ major customers? How have they been affected by the recent disruptions?
FM Logistic India has an extremely strong clientele that includes several blue-chip Indian and multinational corporations. We provide them with an array of supply chain services including Warehousing, Distribution, Co-packing for the FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma, and other sectors. Technological advancements and the Internet of Things (IoT) have made a transformative impact across sectors and FM’s adoption of these technologies ensured that our customers are not impacted by the pandemic. Seamless integration across the platforms like WMS, TMS has ensured uninterrupted services to customers during pandemics. Companies now more than ever use digital analytical and forecasting tools to assess market demand and meet the ever-changing consumer expectations. They have understood that technology has become essential in enhancing growth and productivity. Businesses today have been making a shift towards complete automation, with an aim to bring the entire chain from procurement to distribution on the same platform. Many industries have implemented a distributor management system to make transactions both speedy as well as more accurate. It has helped in tracking secondary sales daily, managing inventory better through automated demand fulfillment, process claims online, and manages master data from a centralized location. The pandemic brought a sudden and unpredictable change in consumer behavior which left businesses in a tough spot. In order to deal with such situations, companies have understood the importance of having a real-time pulse of the market and invested in different technologies to cope up with the ever-evolving consumer behavior. Today, an increasing number of companies are embracing technology to gain an edge in this highly competitive environment. While technology upgrade is an ongoing process, companies are actively working towards its adoption to provide the best of their services to their consumers. They have realized that it will play an increasingly 12 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
important role in making sure that the products reach consumers faster and will also result in increased cost savings. To enable our customers across various sectors to cater to the ever-changing demands of their end consumers, FM Logistic India has an indigenous warehouse management system in place which works on the plug-and-play model to seamlessly work for both B2B mode (where large stocks go to shop and malls) and B2C mode (where they go to particular customers). From the same stock that was dedicated to physical stores, our WMS enables our customers to access piece orders instead of bulk. The WMS allows customers to go to the piece level. This requires a lot of integration. Our WMS is capable of managing the seasonality and skews of our customers’ supply chains. Additionally, we provide efficient Value-Added Services, i.e., kitting, packing, labeling, etc. to help our customers to manage their supply chain seamlessly. Our proven expertise in provisioning ecommerce and Omni channel logistics has helped us to remain a step ahead of our competitors – even during COVID times. About the author Mr. Sandeep Chordia is an Analyst of Risk Advisory in Deloitte Haskins and Sells LLP. He has got a year's experience in this firm. He had just completed his graduation from Loyola College and has joined Deloitte for his future endeavors. He has also got a Diploma in Fashion Designing which he was fond of but finance had induced him.
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Mr. Himanshu Sankhe Apple, Support Specialist, Toronto
, Is FinTech the Future of Supply Chain? Integration of fintech in the supply chain offers a look into the future where all kinds of transactions take place in the digital realm. The fintech ecosystem in India has grown exponentially, especially in areas of supply chain. The 2016 Demonetizations made us realize the potential of a digital economy. With more and more people getting comfortable with using smartphones and other digital devices, the volume of money moved digitally has shown a remarkable increase. Mobile networks, service providers, manufacturers have all contributed synergistically towards this adoption. This in turn sowed the seeds for the emergence of a vibrant and thriving fintech ecosystem. But the potential of the fintech industry isn’t limited to the consumer sphere. Its next cycle of growth will come from the business-to-business sector. The transformational impact wrought by fintech firms in streamlining supply chains is the perfect example. Integration of fintech in the supply chain offers a look into the future when majority transactions, regardless of the consumer or B2B spaces, will take place in the digital realm. What has changed? Supply chain transactions were traditionally protracted, expensive affairs. You had the buyer, the supplier, and between them a maze of banks and complex trade agreements. It was a timeconsuming set-up that demanded a significant amount of working capital. But above all, it was far from inclusive. That’s because banks would grant finance only to companies with strong credit histories and profiles. That left an entire chunk of small and medium-sized firms — the mainstay of our economy — and startups, increasingly the drivers of our economic growth, without access to supply chain
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credit, thereby limiting their potential. This in turn put a cap on our country’s economic growth, hindering it from realizing its full potential. But fintech platforms have removed these roadblocks. Fintech firms effectively act as intermediaries or brokers between buyers and suppliers. Wellconnected fintech firms also have links with a network of banks. Crucially, fintech firms create a win-win situation for buyers and suppliers. Suppliers get paid upfront or within a short duration of the transaction taking place by the fintech companies. Buyers are given an extended period over which to pay the fintech middleman as per negotiations in the agreement. The network of banks a fintech firm has links with not only offers a greater choice of financial institutions from which to secure funding, but also allows the parties to pick and choose those institutions that offer the most favorable financing terms. It makes for greater choice of more affordable credit. Fintech platforms have the potential to streamline the supply chain. The whole process from procurement to delivery is made easier, more convenient, seamless and, most importantly, cheaper, in large part due to automated processing of payments. That is why the combination of supply chains and fintech firms is a blessing for small and medium enterprises (SME) and startups in particular. These are the companies that need to squeeze everything they can from their investment at the lowest cost. These are also the companies that need funding the most to unlock the next stage of their growth. At the same time, these are usually the companies with the most unproven credit histories. Fintech firms have effectively levelled the playing field for them, giving buyers adequate time to secure funding, putting them in touch with banks that would otherwise not lend to them, all the while making sure payments to suppliers aren’t held up. Fintech firms keep the wheels of business turning. When it comes to fintech adoption in supply chain financing, we have barely scratched the surface. A big reason for this is that it is still a new concept and making that initial transition from conventional to digital, especially for small businesses, is still somewhat a leap of faith. But there is no denying the transformative power of fintech. As its benefits become more obvious, supply chain fintech adoption will only gather momentum. With its potential to smooth out the supply chain and spur a more inclusive approach to financing, it has the power to unlock growth in individual businesses and, by extension, the broader economy. FinTechs typically act like brokers. Their relationships with an entire network of different banks or financial institutions allow them to obtain the best funding solutions for their customers. This is similar to the way third-party logistics companies (3PLs) arrange transportation. It used to be that a firm would have all of its transportation contracted with one trucking company. But a 3PL is able to pick and choose a transport company in much the same way as a brokerage. 15 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
Fintechs today are working towards integrating blockchain into the economy, different parties in any ecosystem (e.g.: supply chain) will act as Nodes, when a monetary transaction occurs, that record will be stored in a ledger and that acts as a concrete proof which can be visible to all or few depending on the type of blockchain. Also, one major highlight for using blockchain is digital currency. One specific digital coin can help homogenize flow of funds across nation and help settle things internally. This will help organizations bring stability and reduce redundancy. The oncoming age of cloud, blockchain, AI all seems exciting and it will be interesting to see how Fintechs adapt with changing ecosystems Traditionally, supply chain management has been about sourcing, making, and delivering. Now, it’s about “funding” — using the supply chain as a source of inexpensive capital. FinTech companies are helping to make this possible, and as they expand into new areas, their importance in supplychain management is certain to grow.
About the author Himanshu Sankhe is a STEM graduate with post-graduation in Supply Chain and Financial Technology. His early professional experience was working with Startups and FinTechs. His interests include Blockchain, Capital Markets, Data Science and AI. He is currently working as Advisor and Analyst at Orokii Inc., Toronto and as a Support Specialist at Apple, Toronto.
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Mr. Shreyansh Vats Analyst, Deutsche Bank CIB Centre
Mumbai , Pandemic Challenges In Medical Glass Industry
COVID-19 has possible been the largest pandemic the world has seen in the last century. Ongoing for about two years now, COVID-19 has infected over 76.6M individuals, heavily disrupting the ecosystem. With successful shots of vaccines after lots of efforts, the big challenge is store and supply those nearly 2B doses of vaccine. Pharmaceutical glass manufacturers, thereby need support to the aggressive market growth and overcome the pandemic supply challenges since the vaccine needs to be stored in glass vials only. To successfully and effectively meet this demand, especially for the upcoming booster doses, all the industry has to do now is to resolve internal challenges to meet the demand. There are 2 pillars to navigating through this strategy: •
Navigating the operational challenges o Creating a concrete risk scoring methodology o Identifying more potential risk domains o Compare the suppliers on the basis of the risk they pose and the financial impact they have, the possible ways of mitigating the risks • Inventory Management o Figuring out the change in the inventory position o Identifying reasons for a potential obsolete inventory o Comparing the total available production time with the required production time to identify if there is a supply constrain
Supplier Risk Scoring To have misleading metrics in quest of solving the challenging problems in the medical supply chain isn’t going to help. The big question is: what should be the constituents of that successful metric to gauge which of the suppliers are the riskiest ones? 17 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
If we break down the problem, there are three parts which we can attack on: •
Understanding the data
•
Deciding what should be the new sub-metrics that can be derived from this data
•
Allocating the appropriate weightage to different sub-metrics [Example, Analytical Hierarchy Process or AHP analysis
There can be other risk domains too which should be considered: •
Internal operations quality
•
Raw material storage
•
Bad cash flow
•
Illegal market
Inventory Management It has often been observed that inventory position and inventory levels have often been confused. Inventory position, and not the inventory level, gives a better picture of the number of items currently in possession coupled with the inventory ordered. Certain insights about the new average monthly demand (APU) can lead us to figure out a change in the inventory position at the current instant.
• Inventory Position = Pipeline Inventory + Inventory Level • Pipeline Inventory = Lead Tiime x Demand Rate (in number of units per day) • Inventory Level = On hand Inventory -Backorder Assumptions and Considerations: •
Pipeline inventory is the number of orders that have been placed but not yet been received.
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•
Minimum Order Quantity (MOQ) = One-time lead demand = Pipeline Inventory.
•
Lead Time is the duration between the date of ordering new inventory and receiving them.
•
Backorder is the total amount of demand that has not been satisfied.
•
We assume here that there are no backorders.
Inventory Position 1: With the previously observed APU (units) Inventory Position 2: With the newly forecasted APU (units) * Δ = Change
Potential Obsolete Inventory Obsolete inventory is a term that refers to the inventory which is at the end of its product lifecycle. This inventory is not expected to be sold in the future too.
Potential Obsolete Inventory shall be the amount of inventory unsold after the span of 1 year and is calculated using the demand forecast insights by the marketing team. 19 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
•
VarianceDemand=Demand Variability x (Demand Rate in number of units per day)2
•
Standard Deviation (Lead Time)
S-OTD=Orders delivered on-time / Total number of orders completed
References 1. https://www.primaseller.com/knowledge-base/inventory-management-guide/ 2. https://www.stitchlabs.com/learning-center/safety-stock-reorder-point-lead-time-calculateformulas/ 3. https://www.inflowinventory.com/blog/reorder-point-formula-safety-stock/ 4. https://quickbooks.intuit.com/r/growing-complex-businesses/safety-pipeline-inventoryaccounting-for-yourstock/#:~:text=Your%20pipeline%20inventory%20can%20be,inventory%20would%20be %20150%20units 5. https://personal.utdallas.edu/~metin/Or6302/Folios/ombasestock.pdf
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6. https://www.accountingtools.com/articles/accounting-for-inventory.html 7. https://dearsystems.com/obsolete-inventory/ 8. https://smallbusiness.chron.com/provision-obsolete-inventory-include-reserve-writeoff81094.html 9. https://www.eazystock.com/uk/blog-uk/reduce-excess-obsolete-inventory/
About the author Shreyansh Vats is currently working as an analyst with Deutsche Bank CIB Centre, Mumbai. An alumnus of Indian Institute of Technology (IIT) Kharagpur, Shreyansh enjoys exploring problemsolving skills and has co-authored “Bury the Hatchet with Case Problems,” the first-ever casebook from the IIT Kharagpur campus. He also manages a LinkedIn page “Bury the Hatchet” where he shares his problem-solving ideas and insights.
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EMERGING MANAGERS
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Mr. Manav Marwaha MBA, 2020-2022
IBS Pune How To Make A SMART World? Generally, the word SMART is used as praise for someone, it may be simply for the person’s appearance or mental ability. With technology becoming smarter like never before every possible thing is becoming smart. Yes, we can say we are smart people and want smart things. A basic telephone became a smartphone and school classrooms became smart classrooms. The foundation of this development is to revolutionize the era of hyperconnectivity. With the developing and emerging technology trends, the habits of consumption have also changed. After smart devices and appliances, the is all set to witness smart cities, smart buildings, and smart campuses. If we think a bit more about the smart world, it is kind of making us lazy. Technology has affected us in several ways. In the future, technology will step in and change various things. Smart devices will take decisions for us like Chatbots making shopping decisions with the help of AI and ML. With increasing development, the consumer has become smart. It has been defined by several experts that several forces will affect and shape the future of Consumers. Keeping in mind the concept of sustainable development we are growing and inventing the best we can. Forces that are changing the world: •
The Internet-of-Things (IoT): The installation of smart devices is one of the applications of IoT. Sensors and detectors help in measuring and detecting various things like humidity, light, fire, water, etc. Even these sensors are capable of sensing services so that they can be improved. IoT is something that aims to improve the quality of life. • Big Data: As always said data is the gold of the era, with the availability of advanced tools it is capable to predict future data. Real-time monitoring helps to predict and make decisions based on historical data. • Cloud Computing: With the increase in data mining, the space for storing data has also increased. The cloud computing services that provide space to store data has also improved. Saas, Paas, and Iaas are on-demand cloud services. This technology has added a good amount of value in terms of connectivity, security, and availability of data. • Blockchain: This technology mainly aims towards data security and connectivity improvement. In current times blockchain has so many applications and companies are 23 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
continuously trying to leverage this technology. In the coming time, the advancement in this technology is fast and fearless giving rise to various new secure algorithms and other security features. •
•
Virtual Reality: VR has mainly improved the digital interactions which further helped in the development of education, training, and business meetings. It has given a new way to practical studies when someone is not actually present there. 3D models and AR/VR has improved the learning styles for the students. Future technologies: 5G and next-generation power systems are among the two main technologies that will change the world. 5G will increase the bandwidth to 400 MHz, which will be around 10 times faster than 4G.
New SMARTS of the FUTURE: •
• • •
Smart Energy: PoE is a concept of new power transmission over Ethernet, it is capable of carrying 60 watts of electric power and data over ethernet cables. The main focus of the new methods is the optimized use of power. The focus is to make the process reliable, sustainable, and cost-efficient. Smart Government: Govt Offices are adapting the new smart technology. All the applications for government-related work can be filled easily. So, there is no more standing in queues and wasting time. Smart Businesses: E-commerce has given rise to many new businesses. Everything is available online now and it leads to the promotion of various handicrafts. You can order anything sitting at your home from mobile. Smart Schools: Education is within the reach of everyone, even children living in remote areas can learn like normal children. Various e-learning platforms and interactive smart classrooms have made the concept of education very interesting and understandable.
So, in all one needs to be smart to use the smart equipment that is designed to help us and make our work easy. Try to explore and learn new technologies, most importantly try to make kids and aged people aware of them. The SMART world in the future and we should cherish the new technologies.
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Ms. Arunima Rao MBA, 2020-2022
IIM Jammu Squid Game - A Look at South Korea’s Debt Trap South Korean survival drama Squid Game gripped the world with its riveting plot and gory sequences. With over 111 confirmed viewers, it is now being described as Netflix’s “biggest ever series at launch”. This show is one of many examples of the South Korean entertainment industry churning out top-quality content, putting it on the global radar. The premise of the show is simple - 456 individuals who are deeply entrenched in debt were rounded up to play a string of deadly children’s games. They were lured into this setup using a cash bounty of $38 million which promised to end their financial distress. The rest of the world associates the country with sleek Samsung gizmos and peppy BTS songs. However, The series has cast a light on a grim reality. The country’s millennials are faced with the bleak reality of being caught in a debt trap. The Asian Financial Crisis in the late 90s gave way to growing unemployment and wage stagnation. In order to resuscitate the ailing Korean economy, the government encouraged banks to lend freely. This involved doling out money, almost carelessly, to groups without clearly established credit history like college students. As a result, household debt skyrocketed to record highs. During this time period, household debt jumped to around $365 billion. To put this into perspective, that’s about ₹27,000 trillion now. This problem has persisted over the years. This is evident from a 2017 report by KDI Focus which notes that, since 2013, the youth unemployment rate grew rapidly. This trend emerged even though the pursuit of education steadily ascended as well. The surging number of college graduates is met with an abysmally slow pace of professional and semi-professional job growth. According to the Korean Herald, only close to 60% and 75% of individuals in their 20s and 30s respectively were employed. A key difference between the debt situation in South Korea and the US is the ample separation of private and corporate debt in the latter. Traditional Korean ways of banking involve business owners being exposed to economic vagaries directly, shouldering the debt burden. In fact, last year alone, personal bankruptcies rose to a staggering five-year high of 50,379. The percentage of debtors 25 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
lagging behind on any type of personal debt leapfrogged from 48 per cent in 2017 to 55.47% this year. The icing on the cake is that entrepreneurs who file for bankruptcy are shown a long list of employment restrictions. Faced with a scenario where dwindling economic prospects, several Koreans resorted to gambling. This perfectly aligns with the main storyline of the lead, a gambling addict. As per 2012 data from the National Gambling Commission based in Seoul, 6.1% of Koreans are bedevilled by gambling addiction. This is two to three times the norm in the US and other prominent European nations. Small businesses are plagued with the issue of inadequate social security support and the absence of a rehabilitation program in the event of venture failure. Moreover, failed entrepreneurs are treated as outcasts by society. The cultural blow of social stigmatisation often deters the youth from trying ventures. One can draw parallels with India where countless millennials have been victims of data theft, inadvertently throwing them into a debt spiral. According to an article by Mint, data shared with dubious lending apps that draw users in using token amounts of money was stolen and used by collection agents to harass customers. In response to the customer complaints, the Reserve Bank of India (RBI) demanded app disclosure of the licensed lenders on whose behalf these apps issue loans. However, a grey market continues to thrive and local money lenders exploit families. RBI data reveals that by 2020, Indian household debt had shot up to 38% of our annual output. This is truly an eye-opening figure even after discounting for the fact that this figure was arrived at after taking into account specific instruments. The extortionary nature of grey market transactions, both online and offline, have just been magnified by the COVID pandemic wiping away millions of jobs. This has forced several families to turn to such exploitative financing sources. This is especially true for loans issued at cripplingly high interest rates. It sheds light on the harsh truth that debtors lurking in the shadows very much exist and not everyone is in a comfortable position to repay loans. In the case of South Korea, an effective to deal with the situation at hand would be to set effective loan limits in place. This could be married with safety nets for vulnerable groups, thereby, preventing debt burden from multiplying over a period of time. Without these steps, the next generation of Koreans will find themselves in a situation where no second chances are given, echoing Squid Game’s plot. Can we break out of the game?
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Mr. Shashank Arya MBA, 2020-2022
IBS Hyderabad
Factors Influencing the Facility Location Facility Location is the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factors: Overall objective of an organization is to satisfy and delight customers with its product and services. Therefore, for an organization it becomes important to have strategy formulated around its manufacturing unit. A manufacturing unit is the place where all inputs such as raw material, equipment, skilled labors, etc. come together and manufacture products for customers. One of the most critical factors determining the success of the manufacturing unit is the location. Facility location determination is a business-critical strategic decision. There are several factors, which determine the location of facility among them competition, cost and corresponding associated effects. Facility location is a scientific process utilizing various techniques. Location Selection Factors For a company which operates in a global environment; cost, available infrastructure, labor skill, government policies and environment are very important factors. A right location provides adequate access to customers, skilled labors, transportation, etc. A right location ensures success of the organization in current global competitive environment. Industrialization A geographic area becomes a focal point for various facility locations based on many factors, parameters and issues. These factors are can be divided into primary factors and secondary factors. A primary factor which leads to industrialization of a particular area for particular manufacturing
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of products is material, labor and presence of similar manufacturing facilities. Secondary factors are available of credit finance, communication infrastructure and insurance. Errors in Location Selection Facility location is critical for business continuity and success of the organization. So it is important to avoid mistakes while making selection for a location. Errors in selection can be divided into two broad categories behavioral and non-behavioral. Behavioral errors are decision made by executives of the company where personal factors are considered before success of location, for example, movement of personal establishment from hometown to new location facility. Non-behavioral errors include lack of proper investigative practice and analysis, ignoring critical factors and characteristics of the industry. Location Strategy The goal of an organization is customer delight for that it needs access to the customers at minimum possible cost. This is achieved by developing location strategy. Location strategy helps the company in determining product offering, market, demand forecast in different markets, best location to access customers and best manufacturing and service location. Factors Influencing Facility Location If the organization can configure the right location for the manufacturing facility, it will have sufficient access to the customers, workers, transportation, etc. For commercial success, and competitive advantage following are the critical factors: • • • •
• •
Customer Proximity: Facility locations are selected closer to the customer as to reduce transportation cost and decrease time in reaching the customer. Business Area: Presence of other similar manufacturing units around makes business area conducive for facility establishment. Availability of Skill Labor: Education, experience and skill of available labor are another important, which determines facility location. Free Trade Zone/Agreement: Free-trade zones promote the establishment of manufacturing facility by providing incentives in custom duties and levies. On another hand free trade agreement is among countries providing an incentive to establish business, in particular, country. Suppliers: Continuous and quality supply of the raw materials is another critical factor in determining the location of manufacturing facility. Environmental Policy: In current globalized world pollution, control is very important, therefore understanding of environmental policy for the facility location is another critical factor.
For an organization to have an effective and efficient manufacturing unit, it is important that special attention is given to facility layout. Facility layout is an arrangement of different aspects of manufacturing in an appropriate manner as to achieve desired production results. Facility layout considers available space, final product, safety of users and facility and convenience of operations. 28 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
An effective facility layout ensures that there is a smooth and steady flow of production material, equipment and manpower at minimum cost. Facility layout looks at physical allocation of space for economic activity in the plant. Therefore, main objective of the facility layout planning is to design effective workflow as to make equipment and workers more productive. Facility Layout Objective A model facility layout should be able to provide an ideal relationship between raw material, equipment, manpower and final product at minimal cost under safe and comfortable environment. An efficient and effective facility layout can cover following objectives: • • • • • •
To provide optimum space to organize equipment and facilitate movement of goods and to create safe and comfortable work environment. To promote order in production towards a single objective To reduce movement of workers, raw material and equipment To promote safety of plant as well as its workers To facilitate extension or change in the layout to accommodate new product line or technology upgradation To increase production capacity of the organization
An organization can achieve the above-mentioned objective by ensuring the following: • • • •
Better training of the workers and supervisors. Creating awareness about of health hazard and safety standards Optimum utilization of workforce and equipment Encouraging empowerment and reducing administrative and other indirect work
Factors affecting Facility Layout Facility layout designing and implementation is influenced by various factors. These factors vary from industry to industry but influence facility layout. These factors are as follows: • • • •
The design of the facility layout should consider overall objectives set by the organization. Optimum space needs to be allocated for process and technology. A proper safety measure as to avoid mishaps. Overall management policies and future direction of the organization
Design of Facility Layout Principles which drive design of the facility layout need to take into the consideration objective of facility layout, factors influencing facility layout and constraints of facility layout. These principles are as follows: • •
Flexibility: Facility layout should provide flexibility for expansion or modification. Space Utilization: Optimum space utilization reduces the time in material and people
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•
movement and promotes safety. Capital: Capital investment should be minimal when finalizing different models of facility layout.
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Mr. Nikunj Kumar Raj MBA, 2021-2023
IBS Hyderabad Supply chain management with Internet of Things (IoT) Internet of Things (IoT) is a game-changing technology in every major industry, including retail, transportation, finance, healthcare, and energy. The Internet of Things demonstrates its full potential in processes such as supply chain Management, forecasting, and oversight applications assist fleet managers in improving distribution operational efficiency and adding transparency to decision-making. The Internet of Things has the potential to improve all aspects of the complex supply chain process. In this article, the impact of IoT on supply chain management and its applications in the industry has been discussed briefly. Why we use Some of the primary goals of IoT deployment in supply chain management are tracking and monitoring. Warehouse and fleet managers can use the technology to keep track of their cargo and inventory. However, the Internet of Things is about more than just asset management. Real-time location tracking The Internet of Things provides managers with a consistent stream of real-time data about the product's location and the transportation environment. You will be notified if the product is shipped in the incorrect direction, and you will be able to track the delivery of finished goods and raw materials. In the warehouse. Internet of Things enables seamless workflow and performance. Furthermore, when combined with artificial intelligence, IoT becomes a stepping stone towards full-fledged warehouse automation with little to no human supervision. Employees can easily locate goods and get to the exact aisle for a specific product with the help of IoT. 31 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
Applications of IoT in various sector Supply chain management is a broad field with many facets. Throughout the delivery, dozens of operations take place at the same time, and it is critical for managers to streamline them. Next, we'll look at how technology influences several parts of supply chain management, such as communication, logistics, storage, and shipping. Asset monitoring and management With the help of IoT it’s easier for asset monitoring and management. Managers can now fully rely on software to update the status of all assets instead of manually logging the data or using traditional inventory devices. Sensors, RFID tags, beacons, and smart materials, similar to asset monitoring in retail, allow supply chain managers to quickly trace each item and obtain instant access to important insights on each delivery, such as the contents of the parcel, storage guides, and so on. Automation When it comes to managing large warehouses for major retail and logistics companies, this technology's full potential is realized. There are numerous Internet of Things applications in supply chain management that aid in the automation of warehouse operations, such as inventory drones connected infrastructure for warehouse condition monitoring and remote control. The humantechnology synergy in manufacturing and supply chain management assists warehouse managers in increasing productivity, lowering costs, and increasing resilience. Advantages Increased speed Supply chain speed will be increased with the help of Smart route-planning tools and IoT tracking technologies. By incorporating these technologies into daily operations, managers shorten the feedback circle, benefit from faster decision-making, proactively mitigate delay risks, and improve overall warehouse efficiency. Greater precision Closed systems are slower and more difficult to access than connected platforms. Companies that develop a cloud-based IoT system ensure that all parties involved in the supply chain lifecycle have access to relevant data and can quickly discuss problems. Furthermore, web and mobile tools for various users (employees, managers, operators, and customers) assist them in working with the insights, using collected data to build strategies and scenarios relevant to user roles and needs.
Increased adaptability IoT gives managers extensive data regarding goods turnover, which helps merchants and supply chain managers figure out how many units of each product to order. By enabling high precision in 32 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
asset monitoring, shipping, and navigation for on-the-road drivers, the Internet of Things also decreases the impact of human mistake. The difficulties encountered when implementing IoT in logistics and supply chains A skill disparity Warehouse workers and vehicle drivers will need extensive training to adjust to managing connected systems. It takes time to explain security practices and outline guidelines for using corporate platforms. Increased data storage difficulties One of the numerous advantages that the Internet of Things provides to supply chain management is large data pools. Company executives will need to create data governance policies and hire data scientists and analysts to ensure that the right conclusions are drawn from IoT-based insights. Security risks Vulnerabilities in data processing and storage can lead to outside attacks and leaks, harming the company's reputation and increasing the cost of failure. With the help of machine learning and cryptographic hardware monitoring concepts, company managers can mitigate outside security threats and safely access all stored data. Companies that successfully implemented IoT in supply chain Amazon Amazon is a leader in the use of IoT devices in the supply chain. The company first integrated fleets of connected robots for warehouse management in 2012. The primary function of automated technology is to identify products by scanning QR codes on packages. Amazon makes better use of its human workforce by implementing IoT in the warehouse, allowing employees to focus on tasks such as packing, wrapping, and inventory management. Volvo To track the shipment of car parts from various countries, the company employs a networked cloud-based system. Volvo tracks vehicle delivery to the corporation's international suppliers using the Internet of Things. Nissan Company uses IoT automation to connect various industrial plants. Intelligent warehouse management systems have been installed at the company's factory in Sunderland, UK.
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Conclusion In supply chain management, the Internet of Things has a wide range of IoT applications. It improves the tracking and monitoring of goods, increases transparency in the communication process, and improves planning precision. An IoT-based platform is a great investment for both small and large businesses, as long as you have a clear goal for what you want the technology to do for you. It is also critical to bring in a skilled team for the design and development stages.
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Mr. Anantya Singh Manhas MBA, 2021-2023
IBS Hyderabad
Managing Quality When something doesn't operate as expected, the quality of a product jumps to the forefront of a customer's mind. However, in order to produce a high-quality product or provide a high-quality service, well-considered processes are required. The first question to ask when evaluating quality is, "What is a quality product?" To various people, a quality product means different things and expectations vary from product to product. Even more challenging is the fact that, in addition to having different quality expectations, clients perceive and describes each of these factors differently. One of the most difficult aspects of quality management is converting such perceptions into matrices that an operations manager can act on. Furthermore, a customer rarely defines the quality of a product or service based on a single metric. Intuitive quality is defined across several dimensions Customers most typically evaluate the following characteristics when defining quality, according to Harvard Business School's David Garvin: • • • • • • • • •
Performance-for eg. Metric for an automobile are km/liter and time to accelerate from 0-60 km/hr. Features- eg. Interior Technology, ABS, Air Bags. Reliability- the consistency with which the product performs. This dimension indicates how frequently the product malfunctions and fails to meet performance expectations. Durability- How long the product will provide adequate service. Aesthetics – The product's appearance, feel, and sound. Safety- The possibility of harm or injury as a result of using the product Conformance- How well your product or service meets its design specifications when used by customers. It is critical because firms use these matrices to advertise their products. Serviceability Perceived Quality- How people perceive the quality of a product, which influences a company's market reputation.
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Addressing quality You may have heard the old saying “quality is free” implementing an effective quality system is anything but free, but the alternative usually proves to be much more expensive. Producing a high-quality product or service necessitates the participation and involvement of the entire business. Quality starts with product design, necessitates careful manufacture, and must be prioritized in customer service. The primary burden of poor quality is failure costs, detection costs and prevention costs. Process Approach of Quality Traditional Focus Who? Doing my job Knowing my job Motivate Measure the workers
Process Focus How? Getting things done Knowing the process Removing barriers Measure the process
The Toyota process improvement methodology (also known as kaizen) and its offshoots, such as Total Quality Management (TQM) and Six Sigma, are all efforts to enhance quality using a process-oriented approach. They offer a fresh perspective on quality, emphasizing the importance of transforming an organization's culture in order to accomplish continuous improvement. Considering the Customer Quality is what the customers say it is. Worse yet, customers expectation are always changing. So to define quality, you must know what’s important to your customer and keep updating that knowledge over time. Marketing, product design, and organization/productions must all work together to deliver the product that the target customer wants. Getting all hands-on deck Any quality improvement project requires widespread participation from all levels of the organization. Line employees are frequently the first to notice process flaws that lead to poor quality. They are the finest source for discovering and implementing changes because they do the procedures on a daily basis. Upper management supports is also critical. Implementing quality improvement projects frequently necessitates a significant amount of time and money. Management must be willing to accept potential short-term productivity losses in exchange for long-term gains.
Sticking to improvement effort Kaizen, TQM and Six Sigma all focus on continuous improvement, which is the crix of any successful quality-focused program for two reasons: 36 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
•
• Quality is much like musical instrument. If you give up practicing every day then you won’t improve anymore and you’ll actually get worse. Because customer expectations rise over time, quality must improve to keep up.
The figure also called plan do study act cycle is also called the deming wheel of PDSA cycle it represents circular nature of continuous improvement. The process has 4 steps: • • • •
Plan: you must plan for improvement and the first step is to identify the problem that you need to solve or the process u need to improve. Do: then implement and observe the plan. Study: you need to evaluate the data you collect during step 2 against the original data u collected from the process to assess how well the plan improved the problem Act: if the evaluation shows true result, then you should keep the plan in place.
Designing for the quality Quality begins with a product’s design, which determines how well the product will meet customers need. Quality Function deployment (QFD): is a structured approach for integrating customers requirement into a product, it is also the process used to create the product. The House of Quality is a tool to accomplish this integration. Starting with the end in mind The House of Quality (HOQ) ensures that the quality is designed into a product from the start. Step 1: Customer Requirements – "The Customer's Voice" The first step in developing a QFD is to identify market segments and prospective customers. After that, the team gathers customer requirements for the product or service and rates them on a scale 37 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
of 1 to 5. The most important is number five, and the least important is number one. Determine the importance of each item. Step2: Technical measures Product requirements or technical characteristics are aligned with the customer's voice. This step can be challenging because it requires people to work in groups to identify the variables that may have the greatest impact on the customer requirement factors. Parameters should be meaningful, measurable, and global in nature. Step 3: Roof / Correlation Matrix The House of Quality's triangular "roof" matrix is used to identify how the design requirements interact with one another. It aids designers in the next phase of the QFD project. The triangular matrix has the appearance of a house with a roof. The interrelationships are rated as "+ +" for strong positive, "- -" for strong negative, and "blank" for no interrelationship. Step4: Relationship Matrix The House of Quality's triangular "roof" matrix is used to identify how the design requirements interact with one another. It aids designers in the next phase of the QFD project. The triangular matrix has the appearance of a house with a roof. The interrelationships are rated as "+ +" for strong positive, "- -" for strong negative, and "blank" for no interrelationship. Step5: Importance Rating The total sum of each column is multiplied by the customer importance factor to arrive at this figure. It aids in determining where to allocate the most resources. Then compute the importance percentage. Step 6: Competitive Evaluation It aids in understanding competitor products in order to meet the needs of the customer. It's also a good idea to ask customers how they rate the product or service in comparison to the competition. To gather feedback, use surveys, customer meetings, or focus groups/clinics. Rate your level of satisfaction on a scale of 1 to 5. Where 1 represents extreme dissatisfaction and 5 represents extreme satisfaction.
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Mr. Vishal Kumar MBA, 2021-2023
IBS Hyderabad Use Of Technology in Inventory Management
Almost each company in the current industrial world relies on inventory management. Inventory management is critical to a company's growth, survival, and success. Poor inventory management can result in a decline in sales as well as a drop in revenue, which can lead to a business's downfall. Unfortunately, it appears that not all businesses have appropriate inventory management system. Product loss, pirated products, and shelf restocking are all issues that companies encounter. RFID has shown to be the most effective advanced technology for enhancing inventory management in most businesses, including Walmart stores. RFID technology allows products to be read in real time, eliminating issues such as counterfeiting, stock restocking, and product misplacement without the need for human interaction. The data is transferred promptly and directly to the back-end system, where it can be retrieved immediately or later by the inventory manager to make the appropriate decision. Radio Frequency Identification (RFID) Radio Frequency Identification, or RFID, is a wireless technology that consists of two parts: tags and readers. The reader is a device that generates radio waves and uses one or more antennas to receive signals from the RFID tag. Tags can be passive or active, and they use radio waves to communicate their identify and other information to adjacent readers. The reader powers passive RFID tags, which do not have a battery. Active RFID tags are powered by batteries. RFID tags can store anything from a single serial number to several pages of data. Readers can be mobile and carried by hand, or they can be installed on a post or suspended from the ceiling. Reader devices can also be included within the design of a cabinet, room, or structure. Inventory Management Inventory management assists businesses in determining which goods to order and when to order it. It keeps track of stock from purchase to sale. The practice keeps track of trends and responds accordingly
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to ensure that there is always enough stock to fulfil customer orders and that shortages are identified early. Inventory becomes revenue if it is sold. Inventory ties up cash before it sells, despite the fact that it is reported as an asset on the balance sheet. As a result, having too much inventory costs money and lowers cash flow. One indicator of good inventory management is inventory turnover. Inventory turnover is a financial measure that indicates how often stock is sold over time. A business should not have more inventory than it can sell. Dead stock, or unsold inventory, can result from low inventory turnover. Advantages of RFID •
Reduce Labor Costs
When detected by an AIDC system, the tags create and report information automatically, reducing labor expenses. •
Contains More Information
More data is also beneficial for tracking and tracing products, as well as keeping consumers, retailers, and other supply chain partners informed. •
Prevents overstocking and understocking
RFID tags can also reduce stocking concerns and boost security in your business because everything is tracked. •
Scans more items faster
RFID tags can also process and catalogue data more quickly than even the most advanced handheld barcode scanners. Disadvantages of RFID •
Cost can be higher
The expenses of implementing RFID tags can be much higher than the price of continuing to use barcodes. •
Upgrading equipment may be necessary
Scanners are also required to detect and register the tags automatically. In addition, your warehouse management system (WMS) or other warehouse systems may require RFID integration. •
RFID may be incompatible in other countries, DCs or Warehouses
Finally, there is no authority that regulates RFID tag information. As a result, information standards in one location may differ from those in another. As a result, you may need to spend a lot of money transcribing APIs or EDIs to get over these roadblocks. •
Security Concern
While RFID systems are constantly updated and improved in terms of data security, they can still be hacked. Remote devices, such as cell phones, can occasionally be used to scan and copy data from tags 40 | | K A I Z E N’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
at close range. This might then be used to generate a cloned tag or duplicate the information to another tag, which is a risk that the retail industry is particularly concerned about. Implementation of RFID in Walmart Walmart is the only company responsible for increasing RFID awareness among the general Public. The general population has little to no awareness of RFID technology in 2003. However, this immediately changed when the retailer stated that all cases and pallets of inbound shipments would be required to have RFID tags attached. Walmart began its RFID-based inventory tracking test last year with only seven outlets in Texas and eight product suppliers. Due of their high value, gadgets such as television sets, CDs, and stereos were separately tagged in addition to shipments. Walmart aimed to progressively expand the number of participating locations, with the goal of implementing RFID technology across the corporation by the end of 2006. Walmart executives suspected that improper stock numbers were causing the company's sales and customer satisfaction problems. They anticipated that using RFID to improve supply chain visibility and make more precise ordering decisions would alleviate these problems. As a result of Walmart's announcement, many of the other big-name outlets, including Best Buy, Target, and Home Depot, as well as European chains Tesco and Metro Stores, began experimenting with adopting RFID. RFID: Success Factor for Walmart According to research conducted by the University of Arkansas RFID Research Center on Walmart's use of RFID, retailers that used RFID had 16 percent fewer out-of-stocks at the store level than nonRFID locations. (University of Arkansas) Despite these findings, several large retailers are still hesitant to implement RFID because of problems encountered during Walmart's adoption drive. Walmart and many other shops continued to employ RFID, despite the fact that the technology did not see the projected retail boom in 2005. Instead, RFID found new applications in race timing, hospital equipment tracking, and inventory control. Despite its criticisms, RFID technology has progressed to the point where, by 2010, Walmart was tracking shipments to shops as well as merchandise within stores across the firm. Walmart revealed the deployment of RFID tags to track select sales floor items the same year, starting with men's jeans and underwear. Following this application's success, Bloomingdales, Macy's, and a number of other prominent retailers began utilizing RFID to track clothes. All Walmart stores in the United States employ RFID to track inbound shipments and items on the sales floor to this day.
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ABOUT US The word “Kaizen”, where “Kai” = change, “Zen” = good, signifies change for the better. In its birthplace Japan, the word Kaizen is imbibed as a process that many small continuous changes in systems and policies bring effective results than few major changes. This methodology applies to every department across different sectors. Kaizen – The Official Operations Club of IBS Hyderabad has always been aspiring “Constant Change ad Evolvement”. We, as an organization work to inspire and aspire to the student community for the betterment of the future. KORE – Kaizen’s Operations and Research Entity, one of our primary wings provide the students with a platform to improve and hone their technical competencies to meet the changing demands of the organizations. KORE’s sphere of influence includes Case-Based Research, Consultancy, Live Projects, and Workshops. LAKSHYA, an initiative of KORE focuses on improving the reader's knowledge about Operations Management by providing insights in the form of articles on various operation techniques followed by different companies and also updating the emerging trends in the communities.
SHRISTI SHARMA JOINT SECRETARY - KORE Club Kaizen – IBS Hyderabad Batch 2020-22
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LAKSHYA is an academic print and is not for any commercial sale. Reliability and Responsibility, for sources of data for the article vests with the respective authors. Please feel free to drop in your suggestions at kaizenclub.ibs@gmail.com KORE: Kaizen’s Operations & Research Entity. Kaizen – The Official Operations Club of IBS Hyderabad All Rights Reserved
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