LAKSHYA- A BEACON OF KNOWLEDGE, FEBRUARY EDITION 2023

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. Certified Supply Chain Analyst (CSCA).

2. Certified Demand Driven Planner (CDDP).

3. 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 “If you have knowledge, let others light their candles in it."

Welcome to the 58th edition of “LAKSHYA”, our monthly supplement designed for people who take that one extra step to reach perfection. To step above the average, one needs to strive for excellence.

That is exactly what we aim to achieve here. Preaching continuous improvement since its inception, Club Kaizen brought forward this magazine, which enables young writers to garner a platform where they can learn, grow and re-learn new things every day. A magazine is a tool that aids students and professional managers to get deeper insights into the current trends and latest happenings around the world.

Lakshya is an amalgamation of articles from corporate professionals, faculties, and students from reputed organizations and institutions all across the world. The articles published through Lakshya aims to provide a hands-on experience from great minds and business leaders who wish to inculcate theoretical concepts and strategies with practical implementation. We all collectively wish to bring in the best, organic and fresh ideas from the young pool of budding managers as well.

Also, the most important aspect of a magazine is that it provides a platform for students to enhance and improve their writing skills, it would also create an environment for them to enrich their thought process where they research and write articles.

We hope that you like this issue and please let us know if there are any areas or topics that you'd like us to address in upcoming editions. Please write to us and become a part of this discussion.

Email ID: kaizenclub.ibs@gmail.com

ANUSHKA AGARWAL JOINT SECRETARY - KORE Club Kaizen – IBS Hyderabad Batch 2021-23

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CONTENTS S. NO.

TITLE

PAGE NO.

1

From the Mentor’s Desk

5

2

Covid-19, Evergreen incident and the global supply chains: Lessons for handling crisis in supply chains

7

3

Unlock Maximum Efficiency: How to Optimize Your Manufacturing Resources

12

4

Businesses become more efficient when operations and Finance are integrated

16

5

Metaverse

20

6

Value Analysis & service industry

25

7

Aggregate Planning

29

8

Supply Chain Management

33

9

How To Lean Your Manufacturing Practice

37

10

Developing a New Product Through Crowdfunding: Tips and Strategies

41

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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. Rajan Kumar Gangadhari Faculty Associate, Department of Operations Management and IT IBS, Hyderabad.

Covid-19, Evergreen incident and the global supply chains: Lessons for handling crisis in supply chains

According to a number of studies and research agency reports, the Covid-19 pandemic has a negative impact on more than 86% of supply chains. The process of controlling the flow of products, services, and information from suppliers to customers is known as supply chain management (SCM). It entails managing and coordinating all sourcing, procurement, conversion, and logistics management processes as well as coordinating internal information flows within a business. SCM aims to guarantee that the appropriate products are created at the appropriate time, cost, and location, and that the appropriate quantity is delivered. SCM also aims to improve the supply chain's overall efficiency in terms of cost, quality, and service. Demand management, sourcing, production planning, inventory management, transportation, warehousing, and logistics management are crucial components of SCM. Following the COVID-19 pandemic, the world was at a time of calm and rising demand. To meet the demands, the businesses were channelling their operations.

The operations and profitability were also impacted by the inventory, holding costs, and restrictions put in place by various nations. The Taiwanese Evergreen Marine Corporationoperated Ever Given ship was hit in the Suez Canal for 7 days in March 2021. Approximately 12% of global trade was lost as a result of the Suez Canal blockage, according to data from Lloyd's list, and daily trade worth more than $9 billion was being delayed. The Suez Canal, which links the Mediterranean Sea to the Red Sea and offers a direct route between Europe and Asia, is a crucial waterway for international trade. It shortens the distance travelled by cargo ships transporting goods between the two continents and avoids the time-consuming and hazardous trips around the

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southern tip of Africa. As a result, the Suez Canal is important to global supply chains, especially for sectors like manufacturing, shipping, and the oil and gas industry.

Due to these two unanticipated events, the world's supply chains have been significantly impacted over the past three years. Most organisations have established systems for risk management or mitigation. But unexpected and unavoidable events could happen to us. Supply chain management involves identifying potential risks and threats that could obstruct the flow of goods and services, assessing their likelihood and impact, creating and putting into practise strategies to mitigate or prevent those risks, continuously assessing risks and adjusting strategies as necessary, incorporating resilience and agility into the supply chain, using data and analytics to make informed decisions, and improving the overall effectiveness of the supply chain.

We merely aim to summarise some broad conclusions drawn from the published literature regarding the lessons to be learned from crisis supply chain management in this work. Recent catastrophes and unanticipated events in the international markets have taught us the value of having a tested continuity plan, increased visibility and transparency, strong relationships with suppliers, agility and flexibility, effective communication, digitalization, risk management, diversification, resilience and sustainability, and continuous learning and improvement in managing supply chains. Automation and data exchange systems are being used more frequently in manufacturing technology as a result of Industry 4.0. Manufacturers are utilising industry 4.0 technologies like cyber-physical systems (CPS), the internet of things (IoT), cloud computing, and cognitive computing to supplement human decision-making with decentralised technology. By adopting industry 4.0 systems, the benefits can be explored; however, the organisations may face challenges such as high inventory, resistance to change, difficulty with transformations, a lack of leadership, or poor performance.

However, organisations can gradually implement data-driven decision-making step by step, starting with one department within the organisation, implementing it for a few months, and observing the change in performance; if the change is positive, they can proceed with full-scale implementation. This is done keeping in mind the long-term benefits. These technologies may eventually have a big impact on COVID-19 activities.

This crisis demonstrates that regional systems are more likely than global supply chains to be strong and resilient. Localization is also necessary for the environmental supply chain to be sustainable. Local production can be used to quickly respond to local needs while using minimal energy and resources. For instance, during the COVID-19 pandemic, several "hot spots" 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

manifested. More lives may be saved or the spread of positive cases may be slowed by ensuring essential supplies through more adaptable manufacturing and speedy distribution logistics to crisis areas, both of which are problems for social sustainability. Flexible manufacturing system technologies like robotics and additive manufacturing make it possible to localise production capacity. Prior to changing behaviour in response to the COVID-19 crisis, this action entails amicably resolving problems. As systems, particularly the market and governmental regulatory systems, begin to fail, organisations must change how they behave. Similar behavioural adjustments may promote sustainability. These insights can be used to lessen the crisis' effects and improve readiness for future disruptions.

The COVID-19 pandemic has brought to light the potential dangers associated with having global supply systems that only prioritise effectiveness. Implementing localization and redundant sourcing is one method to lower risk. This is crucial for remote communities that heavily rely on global supply chains for food security, like Pacific Island nations. In response to the COVID-19 disruptions, these communities have started to establish regional food markets, sharing programmes, and bartering systems. Food waste and pollution have decreased as a result of this localization. The COVID-19 crisis raised concerns about the sharing economy as well. For instance, during slowdowns and shutdowns, vehicles such as service or delivery vehicles that were not being used for their intended functions were repurposed to deliver necessities. Due to the excess capacity and availability during the crisis, one supply chain executive from a reputable international organisation claimed that they were able to use passenger and military aircraft to deliver goods internationally. Crowdsourcing may eventually become a standard method for logistics and delivery due to this adaptation to crisis needs. Public managers should therefore be aware of the effect they have on supply chains and develop laws that can help businesses come up with recovery strategies. By including international suppliers in the development of sustainability policies and initiatives for supply chains, governments should offer opportunities for learning. By doing this, social sustainability capabilities can be developed as a regular aspect of organisational operations as well as a means of responding to unforeseen crises.

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Supply chains have learned the value of having a resilient and adaptable system in place as a result of the COVID-19 pandemic. It emphasises the importance of having backup plans and a diverse pool of suppliers. Technology adoption for remote operations and better visibility has become essential. Collaboration and effective crisis communication are also essential.

Additionally, the pandemic has highlighted the value of local production in lowering the possibility of global disruptions. Supply chain crisis management emphasises the value of readiness and risk assessment, prompt decision-making and adaptation to changing conditions, effective communication with stakeholders, backup plans and contingency measures, collaboration and coordination across the supply chain, as well as continuous monitoring and process improvement.

About the Author Dr. Rajan Kumar Gangadhari is an experienced safety engineer with a demonstrated history of working in the construction, theme park, and manufacturing industry. He is skilled in HSE Management Systems, Risk Management, Data Analytics, HAZOP, Audits, Assessments, and Emergency management.

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CORPORATE ANGLE

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Mr. Dalpatraj Punmiya Co-Founder and CEO - A.B. Designers

Unlock Maximum Efficiency: How to Optimize Your Manufacturing Resources

Manufacturing is an essential part of our modern economy and manufacturers are always looking for ways to maximize their efficiency while keeping costs low. Doing so requires careful planning and execution, as well as an in-depth understanding of the resources available to them. Fortunately, there are a few simple steps that can be taken to help ensure that manufacturers are getting the most out of their resources. By optimizing their manufacturing resources, manufacturers can unlock maximum efficiency and ensure that their products are being made as efficiently as possible. From analyzing current processes to finding ways to reduce waste and increase production speed, these tips will help any manufacturer reach their goals.

What Is Manufacturing Resource Optimization?

Manufacturing resource optimization (MRO) is the process of improving the utilization of resources such as machinery, equipment, materials, and personnel in order to increase efficiency and reduce costs. MRO is an important part of any successful manufacturing operation, as it helps to ensure that the resources available are being used as efficiently as possible. In addition to reducing costs, MRO can also help to improve the quality of the products being produced.

The main goal of MRO is to identify and optimize areas of production that are not currently running as efficiently as possible. This can be done by analyzing current processes and identifying areas where improvements can be made. It is also important to keep track of the resources being used and to identify any areas where resources are being wasted. By optimizing resources, manufacturers can unlock maximum efficiency and ensure that their production lines are running smoothly and efficiently.

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Analyzing Current Processes The first step in the MRO process is to analyze current processes and identify areas where improvements can be made. This can include looking at the layout of the production line, evaluating the materials and equipment being used, and assessing the effectiveness of the processes being utilized. By taking a close look at the current processes, manufacturers can identify areas where changes can be made to improve efficiency.

It is also important to evaluate the performance of the personnel involved in the process. This can include looking at the training they have received, their job satisfaction levels, and their overall productivity. By implementing changes in these areas, manufacturers can often improve efficiency and unlock maximum efficiency.

Reducing Waste and Increasing Efficiency Once the current processes have been analyzed, manufacturers can begin to look for ways to reduce waste and increase efficiency. This can include making sure that the materials and equipment being used are of the highest quality and that the processes being used are as efficient as possible. In addition, manufacturers should also look for ways to reduce the amount of energy being consumed and to find ways to reuse materials where possible.

Another way to reduce waste and increase efficiency is to look for ways to streamline production processes. This can include finding ways to reduce setup times, re-engineer processes, and eliminate unnecessary steps. By taking these steps, manufacturers can reduce waste and increase efficiency, unlocking maximum efficiency in the process.

Automating Tasks for Efficiency Gains Automation can also be used to help improve efficiency and reduce costs. Automation can include using robots to perform tasks that were previously done by hand, or using software to streamline processes. By automating tasks, manufacturers can reduce the amount of time and resources needed to complete a task and unlock maximum efficiency in the process.

In addition to reducing costs, automation can also help to improve the quality of the products being produced. Automated systems can help to eliminate errors and ensure that products are being made to the highest standards. Automation can also help to improve the safety of the production line, as robots can perform tasks that would otherwise be too dangerous for humans.

Optimizing Asset Utilization Asset utilization is another important factor in manufacturing resource optimization. Asset utilization involves looking at how the resources available are being used and how they can be used more efficiently. This can include looking at the layout of the production line and optimizing 13| 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

it for maximum efficiency. It can also involve finding ways to reduce downtime, such as scheduling regular maintenance and making sure that the machinery is running as efficiently as possible.

By optimizing asset utilization, manufacturers can reduce costs and increase efficiency. This can help to reduce the amount of resources being used and can also help to improve the quality of the products being produced. In addition, it can help to reduce the amount of waste being produced, as fewer resources are being used.

Utilizing Data-Driven Decision-Making Data-driven decision-making is another important part of MRO. By collecting and analyzing data, manufacturers can identify areas where improvements can be made and can also track the progress of their production processes. This can help to identify areas where changes need to be made in order to improve efficiency, as well as areas where resources are being wasted.

Data-driven decision-making can also help to improve the quality of the products being produced.

By analyzing the data, manufacturers can identify areas where the products are not meeting the desired standards and can make changes to improve the quality. This can help to reduce the amount of waste being produced and can also help to increase customer satisfaction.

Using Technology to Improve Efficiency Technology can also be used to help improve efficiency and reduce costs. By using the latest technology, manufacturers can automate processes, streamline production lines, and reduce the amount of energy being consumed. In addition, technology can be used to collect and analyze data, which can help to identify areas where improvements can be made.

Technology can also be used to help improve communication between departments. By using communication tools such as email and instant messaging, manufacturers can ensure that everyone is on the same page and that all processes are running as efficiently as possible. This can help to reduce costs and increase efficiency, unlocking maximum efficiency in the process.

Creating an Effective Maintenance Plan An effective maintenance plan is also essential for MRO. By having a regular maintenance plan in place, manufacturers can ensure that their machinery and equipment are running as efficiently as possible. Regular maintenance can help to reduce downtime and can also help to identify and address any problems before they become serious.

It is also important to have a plan in place for dealing with any problems that do arise. This can include having a team of technicians on hand to address any issues quickly, as well as having spare parts available in case of a breakdown. By having an effective maintenance plan in place, 14| 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

manufacturers can ensure that their machinery is running smoothly and that their production lines are running as efficiently as possible.

Implementing Lean Manufacturing Principles Lastly, manufacturers should also consider implementing lean manufacturing principles. Lean manufacturing is a set of principles that aim to reduce waste and increase efficiency. This can be done by focusing on eliminating unnecessary steps in the production process, streamlining processes, and reducing the amount of resources being used.

By implementing lean manufacturing principles, manufacturers can reduce costs and increase efficiency. This can help to unlock maximum efficiency and can also help to improve the quality of the products being produced. In addition, it can help to reduce the amount of waste being produced and can also help to improve customer satisfaction.

Conclusion Manufacturing resource optimization is an important part of any successful manufacturing operation. By taking the steps outlined above, manufacturers can optimize their resources and unlock maximum efficiency. From analyzing current processes to reducing waste and increasing production speed, these tips will help any manufacturer reach their goals. By optimizing their resources, manufacturers can ensure that their products are being made as efficiently as possible and that they are getting the most out of their resources.

About the Author Dalpatraj Punmiya graduated with a B.Com from Jai Hind College in Mumbai. Having worked in the textile sector for more than thirty years, he has perfected his inventory management, supply chain analytics, crisis management, operations, major vendor management, etc. abilities. He owns his business in Mumbai and has a manufacturing plant in Gujarat.

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Mr. Nithinkumar H Team Lead at Infosys BPM Ltd Bengaluru, Karnataka Businesses become more efficient when operations and Finance are integrated

Manufacturing operations departments and finance teams share the same goal of keeping the company running like a well-oiled machine. The key to operational success is ensuring that the business operating model aligns with the new economic realities, which might seem easier said than done in today's rapidly evolving business world. In our industrialized and digitized economy, how we have historically conducted business is no longer effective. New technologies and innovation are disrupting business models. Consumer buying and behavior patterns are continually changing. Global geopolitical danger has reached its pinnacle. While growth in industrialized economies is slowing, it faces formidable obstacles in emerging ones. There is more competition today. The world is currently volatile, unclear, complicated, and confusing. The company's operational performance is under tremendous strain due to these developments. Businesses must therefore learn to adapt, become nimble, and innovate to thrive and perform better in this changing market. By assisting the organization in overcoming these obstacles, Finance may significantly enhance operating performance.

Businesses become more effective when operations and Finance are integrated. This is because it ensures everyone knows the economic effects of other people's decisions. Combining operations and Finance functions allow you to make smarter decisions, save money, and improve future planning. Top-performing businesses know that operational choices and actions directly affect their financial outcomes. Increased manufacturing productivity, for instance, results in lower Cost of Goods Sold and higher EBITA. The P&L that results from operations is entangled. While this is something that we all understand on some level, the most influential organizations make those linkages clear. When they decide to increase EBITA by a certain amount, they know how to get there and start programs to make it happen.

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The importance of Finance in this situation allows us to fulfill our responsibility as a Business Partner. Operational managers are experts in every aspect of their operations, but they may need to fully comprehend the P&L or how their actions affect it. Finance can fill this gap. They must possess sufficient knowledge of the industry and the region they serve to be knowledgeable about the issues and have a well-supported point of view. Once they have this base, they can make the connection between Operational objectives and how they affect the bottom line. They can then collaborate with functional managers to share their expertise and develop their business acumen.

By providing accurate, timely, and pertinent information, the finance department may assist operations in making better decisions. All the information required to make better judgments is provided by linking your processes, which can see the actual costs of production and inventories, with Finance, which can see a financial performance.

Cultivate a culture of inquiry: Creating a work climate where individuals are willing to ask questions is the first step in integrating your operations and finance departments. Staff divisions between operations and Finance are possible. It takes intentionality and a culture where individuals feel comfortable being openminded to bring these teams together.

Focus on data and information during meetings and know that the operations and finance teams can view investments and timetables differently. Some scenarios seem high stakes, like discussing a disparity in a financial statement.

Respect others' knowledge: While varying viewpoints might make communication difficult, they also help an organization succeed. Companies may remain resilient and inventive by appreciating the diverse skills that everyone brings to the table.

Remember that various people may interpret the same dataset or even the exact phrases differently.

Operations data may be solved by financial and accounting staff as cash flow or financial statements. However, employees in the operations division can be preoccupied with the availability of raw materials, inventory control, or the number of units they can secure contracts.

Choose a common vocabulary and approach: Language limitations also separate the operations and finance departments. Avoid jargon that can cause misconceptions, and speak at a level understandable to everybody during cross-team discussions. You can explain your arguments by giving concrete instances.

Ensure that the operational personnel has sufficient financial literacy to participate in discussions regarding various financial aspects. Similarly, accounting and finance professionals require 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

training from a functional standpoint to better understand the underlying principles of the operations' finances. Make sure to clarify your meaning if you must use jargon.

Later, review your initial hypotheses: Instead of being proactive and future-focused, finance departments may play corporate historians' role by providing reports. Operations employees may believe they understand what is happening, but their perspective may need to match the financial numbers.

Decisions made due to these divergent viewpoints may need to be revised or based on outmoded assumptions. We liquidated all our goods, so we should have made a tonne of money, or we sold it all at a loss, someone on the operational side would argue. They may need to know that accounting staff periodically revalues that inventory at a lower cost or net realizable value. Be sure to review your presumptions periodically. It's possible that earlier estimations of overhead allocation need to be updated. Because of inflation and deflation, inventory value might change considerably. Your manufacturing chain's installation and integration of the new equipment cost more than you thought or took longer than expected. It's also possible that your equipment is living longer than you've anticipated, which would cause a discrepancy between the financial and operational statistics on its depreciation.

Finance and operations should collaborate more effectively. This will boost productivity, cut expenses, and aid with future planning.

Finance must continue to take a keen interest in aiding the company's pursuit of operational excellence.

It is vital to understand that Finance business partnering is not a one-off activity in which Finance expresses interest in enhancing operations, disappears for a while, reappears, and then the cycle repeats. The emphasis should be on ongoing development instead.

The gap between Finance's actual and desired engagement in operations is still huge, even though several firms have already begun restructuring their finance groups. Finance must realize that more has to be done to close this gap. A desire to improve the company and establish oneself as a critical participant must exist. Finance can only do more if senior executives and the corporate culture encourage cooperation between FinanceFinance and the rest of the company. Consequently, the type of organization the CFO works for may impact Finance's function. If the company is established, resistant to change, and needs more administrative support, Finance will always be in charge of monitoring and reporting. However, Finance will be a crucial strategic advisor if the firm is inventive and adaptable and leaders rely on data to guide their decisions.

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Finance must develop continuously and turn into a learning organization. It must modify its working style. Finance needs to develop into an educational organization that is constantly changing. It must modify its operational structure and acknowledge its crucial role in assisting the company in improving operational performance. Significant obstacles are frequently encountered during the transformation process, but this must not be a reason to give up. The emphasis should be on improving and making performance a daily requirement. Focus on a few operational goals, procedures, and essential reporting and analysis urgently requiring improvement. After completing these and being satisfied with the results, you move on to the following areas for development.

Starting small and recognizing tiny victories can occasionally be preferable to never beginning.

About the Author: Mr. Nithin Kumar H is a Team Lead at Infosys BPM Ltd, Bengaluru, Karnataka, India. He has more than seven years of experience in various business and finance-related domains.

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Mr. Vaibhav Manager Operations Choice international MetaVerse

Imagine a world where billions of people live, work, shop, learn and interact with each other -- all from the comfort of their couches in the physical world. Digital facsimiles of ourselves, or avatars, move freely from one experience to another, taking our identities and our money with us.

What is Metaverse?

A Meta Verse is a virtual world with shared 3D virtual spaces operated through multiple virtual tools. It’s like our real and dynamic world where everything would be online in an immersive 3D environment. A hypothetical iteration of the Internet as a single, universal, and immersive virtual world that is facilitated by the use of virtual reality (VR) and augmented reality (AR) headsets. The metaverse refers to an immersive and persistent three-dimensional virtual realm, shared with many users, that spans various digital platforms and merges with the physical world, where people can shop, work, play and hang out together in real time.

History behind Metaverse Dating back to 1938 French poet and playwright Antonin Artaud uses the term Virtual Reality in his collection of essays. Later in the year 1984 American computer scientist, musician and VR pioneer Jaron Laniaer founds VPL Research incorporation who developed the first virtual reality headsets and data gloves. The metaverse is a vision of what many in the computer industry believe is the next iteration of the internet: a single, shared, immersive, persistent, 3D virtual space where humans experience life in ways they could not in the physical world.

Some of the technologies that provide access to this virtual world, such as virtual reality (VR) headsets and augmented reality (AR) glasses, are evolving quickly; other critical components of 20| 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

the metaverse, such as adequate bandwidth or interoperability standards, are probably years off or might never materialize.

One of the most popular virtual gaming setups, and a game that can best depict the metaverse as we know it today, is Second Life, launched in 2003. This game resembles an early 2000’s roleplaying game and fulfils several roles imaged for the future where users are embodied, and avatars can interact and hang out with each other in a virtual world. These virtual spaces allow us to enjoy real-world experiences such as clubbing and business meetings, among a lot more. The game also has a virtual economy and its currency. Second life comes close to the current textbook metaverse.

Linden Lab unveils shared a 3D virtual space that allows users to explore interact with others build things and exchange virtual goods in the year 2003. In the year 2012 Israeli entrepreneur Yoni Assia introduces colored coins. It was extended to the cartoons as well, in the year 2016 Pokémon GO introduces the world to the augmented reality games overlaid on the real world. Recent year in the 2021 and 2022 Microsoft introduces Mesh as a new platform that promises to synchronize virtual collaboration.

Features of Meta Verse 1.) Digital 3D Avatars: Digital 3D avatar is one of the key aspects of metaverse technology.

Users can seamlessly create their digital replicas while entering a metaverse platform and control their 3D avatars to access & experience the technology to the fullest. In an idealistic metaverse, users can completely control these avatars with the help of AR/VR technologies.

2.) Completely Immersive User-Experience: VR and AR metaverse technology involves elements like multi-definition sounds and surround images that enable a user to have a real-like experience. Metaverse can also require the use of technologies like omnidirectional treadmills and haptic body suits that help the users experience & navigate a virtual environment.

3.) Real – time 3D Spaces: In the metaverse, users can participate and experience real-time 3D spaces and locations. These virtual spaces can either be a whole new location or even an exact digital replica of any existing physical location. A developed metaverse will also have a fully functioning economy where users could participate in diverse activities.

4.) Interactivity and Synchronicity: With AR & VR metaverse technology, users can seamlessly connect with other users in the virtual venue through the functionality of digital avatars. Users can also react to each other and the digital environment just like they do in the real world.

Interactivity in the metaverse can be thought of as an enhanced version of a virtual event.

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5.) Multidevice functionality: A key characteristic of the metaverse is that a user can access, operate, and experience it from any device. However, to operate and have a completely immersive experience, users need to use metaverse AR & VR tools like goggles and gloves. These tools are not supported on devices like phones or tablets.

Future of Metaverse: The future metaverse would be something very similar to our real world in many aspects and even replace some real-world activities. Some metaverse non-fungible token (NFT) vendors have enabled their NFTs to be usable in some metaverse games such as clothing and footwear and more are planning to venture into the domain. The future metaverse can also be a huge contributing factor to the growth of the virtual economy, which depends on video games and virtual worlds where disruptions are almost nil. An increasing number of NFT enthusiasts are sensing opportunities to invest in virtual lands on such games and sell or rent them for a price. With major players like Meta entering this space and confidently signaling it could be the new future, it is only a matter of time before we see other entities follow suit. It could lead to an exponential expansion of the boundaries of the metaverse and unlock vast volumes of value hitherto unknown to consumers and investors alike.

Metaverse is a virtual world with shared 3D virtual spaces operated through multiple virtual tools.

It’s like our real and dynamic world where everything would be online in an immersive 3D environment. A hypothetical iteration of the Internet as a single, universal, and immersive virtual world that is facilitated by the use of virtual reality (VR) and augmented reality (AR) headsets. The metaverse refers to an immersive and persistent three-dimensional virtual realm, shared with many users, that spans various digital platforms and merges with the physical world, where people can shop, work, play and hang out together in real time.

Conclusion: The future metaverse will be something very similar to our real world in many aspects and even replace some real-world activities. Some metaverse non-fungible token (NFT) vendors have enabled their NFTs to be usable in some metaverse games such as clothing and footwear and more are planning to venture into the domain. The future metaverse can also be a huge contributing factor to the growth of the virtual economy, which depends on video games and virtual worlds where disruptions are almost nil.

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An increasing number of NFT enthusiasts are sensing opportunities to invest in virtual lands on such games and sell or rent them for a price. With major players like Meta entering this space and confidently signaling it could be the new future, it is only a matter of time before we see other entities follow suit. It could lead to an exponential expansion of the boundaries of the meta

About the Author: Mr. Vaibhav is an experienced Director of Operations with a demonstrated history of working in the Retail and Manufacturing industry. Skilled in AutoCAD, Project Estimation, Project Management, Black Belt, Quantity Surveying, Product Marketing and Construction. Strong operations professional with a Bachelor of Engineering - From KJ Somaiya College of Engineering, Vidyavihar.

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EMERGING MANAGERS

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Mr. Akshay Arvind Thirumavalavan M.Sc. in Power and Flow group of Mechanical Engineering, 2022-2024 Eindhoven University of Technology Eindhoven, Netherlands Value Analysis & service industry

Value Analysis & service industry: One of every company's main objectives is to gain a competitive edge over competitors in the industry as it boosts business margins, draws in additional clients, and solidifies brand recognition.

Value chain analysis is a method used to assess business processes that can help businesses acquire a competitive edge and find flaws that can be rectified to increase productivity and provide value.

The manufacturing sector is more heavily weighted in the traditional value chain than the services sector. The standard value chain analysis can still be modified to incorporate the value chain idea and produce a service value chain. By breaking down the organization's logistics, operations, and infrastructure, the management may determine the true worth of a good or service. It can also assist in selecting the competitive edge possessed over competing companies.

The sector of the economy, namely the service sector, provides intangible services rather than tangible goods. Banking, hospitality, communications, computer software, virtual trading, healthcare, and other industries can be considered services. Economists have noticed a significant movement from manufacturing to services in the last few years. Robots now perform most of the labor in the manufacturing sector, reducing the need for human work and contributing to this trend.

However, there is undoubtedly room for exploration in the service sector.

Companies can use value chain analysis to increase their profits in two ways: • Cost leadership entails reducing costs and streamlining processes to increase profit margins.

• Competitive differentiation entails branding as a different company and providing a one-of-a-kind, high-quality service.

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The service value chain comprises various manufacturing inputs, outputs, and activities: Inbound Logistics for the service industry: 1. Inseparability: Service is delivered to multiple consumers simultaneously.

2. Intangibility: This type of service is tailored to one or more consumers.

3. Perishability: Because services are not perishable goods, they cannot be saved or stored.

4. Heterogeneity: the quality of service and experience may differ from person to person, such as responsiveness and customer service quality.

Operations in a service industry: The acquisition of raw materials and supporting goods for usage within the organization is referred to as inbound logistics. As can be seen, the manufacturing sector is better served when it comes to this definition. Inbound logistics are included in the supply value chain. However, the items are different.

The importance of operations management in the supplier value chain might take time to become apparent. But, in this case, the processes are the procedures that enable the services and give customers their experiences. For instance, to provide speedy client service in the hospitality industry, food, bedding, drinks, and other requirements must be kept well-stocked. It would help if the tourism industry's boarding, lodging, and emergency procedures are overseen.

Outbound Logistics for the service industry: According to the traditional business model, outbound logistics includes storing and distributing commodities. Yet, in the service value chain, direct service delivery to the customer without the need for intermediary agents or delays is part of outbound logistics activities. Thus, the qualities are different here. For instance, an internet service provider worries about how smoothly the customer receives the bandwidth, download speed, and service quality the company provides.

Similarly, the outbound logistics for the banking sector focus on delivering a positive client experience and dependability throughout transactions.

Marketing & Sales in the service industry: In the industry value chain, sales refer to persuading potential clients to purchase your services. At the same time, marketing generates demand by providing the appropriate services to those who need them. Lead generation is a classic example of marketing and sales in the service value chain.

In the conventional industry value chain, each market is based on the company’s product's characteristics. Having a distinct strategy to offer services while in the service value chain is considered to be the best.

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Service: It is crucial to remember in Value chain analysis, that customer recommendations and reviews are significant in a company’s success. The new customers will want to know other customers’ experiences because the products are intangible. As a result, post-purchase support services are essential to the success of the services industry. A positive customer experience results in client retention, loyalty, and indirect marketing for the business.

Activities that contribute to value in the Service Industry: The value chain analysis supporting activities create a solid foundation for the physical operations that will be carried out, similar to a framework that includes the main tasks and offers assistance.

Infrastructure: Different service businesses have varying forms and sizes of infrastructure needs along the services value chain. For instance, the hotel sector requires a substantial physical infrastructure, which includes structures, beds, food, and much more. Contrarily, businesses that provide IT services need data servers, communication routes, fiber optics, etc. Moreover, infrastructure includes the areas of finance, accounting, planning, and law.

Human Resource: Human resources continue to be a vital component of the service value chain analysis despite the growing importance of technology in this field. Various service value chain models necessitate varying degrees of hiring, training, and other human resource management operations. Legal proceedings, corporate staff training, course instruction, and maintaining transaction privacy are just a few of the many facets of HRM. Hence, HRM must expend more energy, time, and resources.

Technology: Throughout the past few decades, technology’s influence has increased dramatically. Some sectors of the service value chain are solely dependent on technological development. Internet service providers, Amazon cloud computing, and Airbnb are examples of cutting-edge technology success stories. In the modern world, technology is a crucial source of competitive advantage. Thus, it is necessary to recognize innovation and research in this field Procurement: Again, procurement varies across various service value chains. Procurement is not very important in the Airbnb model. They must purchase goods to run the firm while working in the banking 27| 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

sector. Nonetheless, procurement is a significant activity in the hotel sector. In the hotel industry, end-of-life management is a constant challenge. They must frequently replace the equipment and supplies used for everyday operations. They must choose the best suppliers at fair prices to save costs and get the most excellent products.

Conclusion: Any organization may see the path to profitability through a value chain analysis. Examining the service value chain attempts to bring the service sector into compliance with the highest requirements for customer satisfaction. This is the fundamental basis for any firm to achieve a competitive edge. Value analysis weighs the price of a product or service against its benefits to customers. It forces to think about each process step in terms of how it benefits the client, who could be a consumer or another company. This implies that each process stage is examined and challenged in light of its benefit to the client. One can streamline one’s business and utilize fewer resources if there is no benefit to the client, and the step is optional for the product or service as a whole. The cost-saving potential is a crucial benefit of value analysis, and it permeates every other use of the system, making it advantageous in every way. Value analysis divides a good or service into its constituent parts, allowing one to examine each role separately and assess its significance and effectiveness. When properly implemented and executed, value analysis lets one spot pieces that are either unnecessary or may be swapped out for less expensive ones. The procedure for the good or service being analysed is improved to be completed more economically. It is to be understood that services always need to be performed economically while making sure that the quality of the service does not suffer.

About the Author: Akshay Arvind Thirumavalavan is a young and dynamic student pursuing his master’s in the power and flow group of mechanical engineering, which is involved in dynamic and active research for a cleaner tomorrow from Eindhoven University of Technology-Eindhoven, Netherlands. He did his bachelor's in Mechanical Engineering, at Velammal Engineering College, Chennai, with a final project on investigating after treatment of emissions with low-cost alternatives.

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Ms. Diksha Jain MBA, 2022-2024 IBS Hyderabad Aggregate Planning

Introduction: Aggregate planning in supply chain management inside a manufacturing facility is crucial when aiming to increase operational efficiency. The concept of 'Aggregate Planning' deals with planning material procurement so that the cost incurred is minimum to the organization. It is done to get an idea of how many materials need to be procured and at what time so that the production process is smooth. The concepts of aggregate Planning might be used when you want to predict your supply chain needs well in advance. How a company can make the most of its existing resources is what aggregate planning answers.

The supply chain's effectiveness is significantly impacted by aggregate Planning because it needs input from every level to be effective. The overall plan is a general operation guide and provides primary production and distribution decision parameters. If a manufacturer intends to increase production over a specific period, the supplier, transporter, and warehouse must be aware of this intention and factor it into their plans. In an ideal world, all supply chain stages would collaborate on an overall strategy that optimizes supply chain performance. It is unlikely that all projects will mesh in a coordinated manner if each step independently develops its aggregate plan. This lack of coordination leads to supply chain shortages or oversupply. As a result, it is critical to developing aggregate plans for the entire supply chain.

Important factors for Aggregate Planning: 1. Budget: Allocation of budget to different resources to utilize them optimally and efficiently outputs.

2. Risk: Risk and uncertainty go hand in hand. Aggregate Planning should help tackle risks that may arise during production.

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3. Competition: Aggregate Planning should be done keeping competition in mind to maximize output and for the firm to maximize profits.

4. Futuristic approach: Aggregate Planning is done to align the future needs well in advance to avoid any difficulty later. It has to be done with a futuristic approach to keep all the needs aligned to arrive during the market.

Why is aggregate Planning important?

Aggregate Planning helps to manage facilities so that the finished goods inventory is not stocked up at the facility. Also, the goods should be protected before reaching the target customers. Both these situations are losses for the firm and should be avoided. To avoid the same, aggregate Planning should be done as it helps to manage the inventory to prevent future losses for the organization.

Relationships with distributors and suppliers are also developed due to the process as interaction between various stakeholders increases to keep them informed about the inventory status for production.

A manufacturing organization will incur higher costs if it has less inventory. Also, it will need extra storage space because improper storage increases the likelihood of damage. The company will also need to spend more on supplies, labor, and equipment to handle the merchandise and its transfer. Aggregate Planning helps to meet demand and supply.

An organization can understand its human resource need through aggregate Planning. It helps to know how many more people will have to be employed to complete the work on time and how many will have to be let go to minimize costs for the firm. The aggregate planning method helps the organization to save tie and money that it would have otherwise put into training human resources.

It also helps to adjust the capacity of the manufacturing facility to meet demands.

Aggregate Planning as Operational Tool: Aggregate planning aids in striking a balance between the organization's operational, financial, and overarching strategic goals. It acts as a platform for managing demand and capacity planning.

An organization can attempt to balance price, promotion, order management, and new demand creation when demand does not equal capacity.

When capacity and demand are out of balance, an organization may consider several different approaches: Firms can reduce/increase demand by laying off/hiring excess/inadequate excess/inadequate excess/deficient personnel.

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Temporary labor for a set amount of time or contracting out work to a subcontractor can be done in order to meet demands for staffing.

Influencing factors for aggregate Planning: Since the organization strives to balance long-term strategic Planning and short-term production success, aggregate Planning is a crucial operational activity. Before an overall planning process can begin, the following elements must be present: It is necessary to have full knowledge of the available production equipment and raw materials.

A reliable demand projection for the medium-term The cost of production is planned financially, and this involves preparing for labor, inventory, and raw materials.

Organizational policies regarding quality control, labor management, etc.

Challenges in Aggregate Planning: Despite many advantages of Aggregate Planning, we must remember that, like every coin has two sides, aggregate Planning comes with its share of issues. The first one is that it is done for only a specific duration or a short period. It is done for a limited time duration only. Even though this is a limitation, it presents a chance to improve your management techniques. An aggregate strategy urges you to keep track of changing external and internal factors and incorporate them into your business strategies. You periodically design a new plan that best represents current circumstances and positions you for long-term success. Moreover, aggregate Planning depends on the premise that some variables are specific, whereas, in reality, there could be significant disruptions at any time. This stresses how crucial it is to develop and carry out an all-encompassing plan while keeping in mind that you must be adaptable and mindful of problems as they arise.

How aggregate Planning affects production and team efficiency?

Consistent production enables businesses to meet demand more effectively while wasting fewer resources. Because an effective aggregate plan creates a balance between demand and capacity, it allows a company to level out production rather than having sudden increases or decreases. Instead of ramping up or rapidly decreasing production based on the current environment, a facility with an aggregate plan can level out production planning to serve customers over the entire period.

In addition to maximizing business profits and ensuring consistent production, aggregate Planning is critical for creating a stable, dependable work environment for your team. Your company's workforce and resource requirements can fluctuate dramatically without an appropriate aggregate plan. As a result, you may find yourself constantly firing and hiring employees. This undermines 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

trust, makes it difficult to attract new talent, and may encourage current employees to look for work elsewhere. It can also lower work quality because it is difficult for employees to perform at their best when they are constantly concerned about when their jobs will end.

Conclusion: There are numerous ways to cut costs and improve business strategies, but aggregate planning is unique in that it combines information and addresses demand and capacity issues from a more holistic perspective. If you want to stabilize production, create a more dependable workplace for your team, and reduce costs, you can start by developing an aggregate plan.

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Mr. Sai Avinash Kaari MBA, 2022-2024 IBS Hyderabad Supply Chain Management

“Inventory is something you don't see in nature. Everything in nature has continuous present utility.

Our factories and distribution centers need to be optimized such that everything in there has continuous present utility.” ― Hendrith Vanlon Smith Jr, CEO of Mayflower-Plymouth

Supply chain management, which comprises all procedures that transform raw materials into finished commodities, is the control of the movement of goods and services. It entails the deliberate simplification of a company's supply-side operations to optimize customer value and achieve a competitive edge in the market. Through supply chain optimization, businesses can cut back on wasteful spending and speed up the delivery of goods to customers. Effective SCM protects companies from costly recalls and legal actions as well as the media. A supply chain manager controls and reduces costs and avoids supply shortages.

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How Supply Chain Management (SCM) Works SCM represents an effort by suppliers to develop and implement a supply chain that is as efficient and economical as possible. The Supply chain covers everything from production to product development to the information systems needed to direct these undertakings. Supply chain management often aims to centrally coordinate or link a product's manufacturing, shipment, and distribution. By maximizing the supply chain, businesses can reduce wasteful spending and speed up the delivery of goods to customers as discussed, to do this, significant attention is paid to internal inventories, internal manufacturing, internal distribution, internal sales, and the stocks of external suppliers to the company. The foundation of supply chain management is the notion that almost all products that are sold are the result of the work of numerous businesses that make up a supply chain.

Supply chains have been around for a very long time, but most companies have only recently realized the value they can provide to their operations.

The supply chain manager works to cut back on shortages and keep costs in check. Supply chain managers "oversee and manage the complete supply chain and logistic operations to maximize efficiency and minimize the cost of the organization's supply chain," which goes beyond logistics and procuring inventories. The bottom line of a business can be immediately impacted by improvements in efficiency and productivity.

The Five parts of SCM are:

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1. Procurement: Sourcing and purchasing raw materials, components, and finished goods from suppliers.

2. Production Planning: Determining what products should be produced, how much should be produced, and when they should be produced.

3. Logistics: Managing the transportation and storage of raw materials, components, and finished goods, including inbound and outbound shipments and inventory management.

4. Inventory Management: Maintaining an optimal level of inventory to minimize costs and ensure customer satisfaction.

5. Delivery: Delivering finished goods to customers, including order processing, shipping, and customer service.

Supply chain vs Supply chain Management The supply chain refers to the flow of goods, information, and money from the raw material stage to the final customer. It includes all the activities involved in the production and delivery of a product or service, including procurement, production planning, logistics, inventory management, and delivery.

SCM, on the other hand, is the coordination and management of these activities to optimize the flow of goods, information, and money along the supply chain, minimize costs, improve efficiency, and ensure customer satisfaction. It involves using various tools and techniques, such as production planning and control, logistics management, and inventory management, to manage the supply chain effectively. In summary, the supply chain is the entire process, while SCM is the management of that process.

Types of supply chain models SCM does not appear the same in every organization. Each business's SCM process is unique due to its specific objectives, advantages, limitations, and Typically, a corporation can choose one of six major models to direct its SCM procedures. The type of supply chain model a company adopts is primarily based on its business model and customer demand. Some common types of supply chain models adopted by companies include: • Make-to-Stock (MTS) Model: Suited for companies with stable and predictable demand, products are manufactured in advance and kept in inventory, ready for customer demand.

• Make-to-Order (MTO) Model: Suited for companies with low volume, and high variability demand, products are manufactured only after a customer order is received.

• Assemble-to-Order (ATO) Model: Suited for companies with a wide variety, and low volume demand, products are assembled only after a customer order is received, using components and subassemblies that are kept in inventory.

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• Configure-to-Order (CTO) Model: Suited for companies with a high degree of customization, products are configured and manufactured to customer specifications.

• Hybrid Model: Suited for companies with a mix of predictable and unpredictable demand, using a combination of forecasting and demand signals to drive production and inventory management. It's worth noting that companies may adopt different supply chain models for different products or product lines and modify their supply chain models over time as market conditions and customer demand change.

Why is the supply chain important?

SCM is important because it can have a significant impact on a company's overall performance and competitiveness, including: • Cost Reduction: Effective supply chain management can help to minimize costs by optimizing the flow of goods, information, and money, reducing waste and inefficiencies, and lowering inventory levels.

• Improved Efficiency: A well-managed supply chain can improve operational efficiency, speed up delivery times, and reduce lead times, helping companies to meet customer demand more effectively.

• Increased Flexibility: A flexible supply chain can help companies quickly adapt to changes in customer demand, market conditions, and other external factors.

• Improved Customer Service: A strong supply chain can help companies to improve customer satisfaction by delivering products and services more quickly and consistently.

• Enhanced Reputation: Companies with a well-managed supply chain are often seen as more reliable and trustworthy, helping to build a positive reputation in the market.

• Increased Revenue: By reducing costs, improving efficiency, and enhancing customer satisfaction, a strong supply chain can contribute to increased revenue for a company.

Therefore, SCM is a crucial aspect of business operations that can significantly impact a company's success and competitiveness in the marketplace.

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Ms. Sana Sai Naga Deekshitha MBA, 2022-2024 IBS Hyderabad How To Lean Your Manufacturing Practice

Manufacturing is a key piece of any company’s strategy to grow productivity, lower costs and bring about long-term growth. Lean manufacturing is a process that aims to decrease the rate of production by reducing the number of repetitions needed to produce a product. It’s also known as cycle-free manufacturing. Lean manufacturing was originated in Toyota motors to eliminate the waste and enhance manufacturing operations.

What is manufacturing lean?

Manufacturing has many aspects, but one of its most important functions is to decrease the rate of production. By using less capital, equipment and workers, the quantities of production can be higher.

Although manufacturing is a process that uses some variability in the number of operations to accomplish a goal, the process is still highly reliable.

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Take stock of your production process When you have a general idea of when, how and where your production will occur, you can begin to take stock of the products you’re working on. This is a good time to ask yourself — What do I know about production that I can use to my advantage?

Set targets for quality and cost Marketing and sales goals need to be our highest priorities, but operational and operational efficiency also play important roles in creating and growing a profit. To help you prioritize the efforts required to reach your goals, create a production and quality budget. This budget should address the following: - Key functional areas and their costs (i.e. raw materials, production equipment and material costs) - What is needed to achieve the goals? (i.e. how much, why and when) - How will I achieve the goals? (i.e. how much, why and when) - How will my team achieve the goals? (i.e. how much, why and when) - What is the cost of doing business in your country?

Monitor your production activity As you begin to take stock of your production process, you’ll begin to see where you’re making mistakes. Make sure to note down the mistakes you make so you can be better positioned in the future. One common production mistake is to assume that all parts, pieces and machines on a production line know exactly what they’re doing. This is often due to the fact that human employees are often unaware of some of the technical aspects of the job, such as how to pre-drill holes in the ground, or how to sand and/or boring holes in stone. To keep your production running at a standard, you’ll also need to regularly monitor it — this includes visual and verbal communication, as well as the way in which the operation is taking place.

Add quality and price controls Poor quality, time-consuming or already-overdue work can demotivate an operation and prompt the employer to take corrective action. To prevent this from happening, it’s critical to put in place quality and price controls throughout the business. These controls should be easy to monitor and easily adjustable. For example, you can establish Quality Control Lines (QCLs) that know when and how much to produce certain products and when to ship others. You can also set up quality control procedures in the company’s purchasing and purchasing policies.

Reduce waste with reduced inventory used Waste is one of the most important and persistent challenges facing manufacturing organizations.

All too often, manufacturers end up with too much inventory that isn’t needed or isn’t needed to meet customer orders. To try and reduce this waste, many manufacturing organizations choose to 38| 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

use automation. However, this can easily turn into a two-tiered system, with one group handling the “ups” and the other handling the “downs.” This leads to overproduction and underconsumption, as too few parts or goods are produced to the demand. It’s also possible to use a combination of processes to reduce this waste. For example, you could use a batching system to bring-off some of the excess capacity that might otherwise occur during the busy months of summer.

Lean more — Don’t use the same articles One of the most important lessons that can be learned from the history of all technological advancements is that the boundaries between disciplines and disciplines must be kept as clean and light-hearted as possible. Artaud famously said, “You can never kill a humorist. You can only kill a manufacturer.” As a manufacturer, you must never do business without using various humoristic terms — such as using the word “brick,” “cement” or “leather” to describe a product, or without using the word “run” when discussing the process. These terms make the manufacturer laugh, and they are a great way to keep your work from getting boring. They also help you identify potential obstacles that stand in the way of you having a good time while you’re making your company money.

5 principles of lean manufacturing: This five step process for guiding the implementation of the lean techniques was proposed by James P. Womack and Daniel T. Jones in the year 1997. The five principles proposed by them are a.) Value b.) Value stream c.) Flow d.) Pull e.) Perfection Value: value is the key determinant that tries to satisfy the customer demands. In order to achieve this the company asks few questions to themselves including what is the timeline for manufacturing and delivery, at what price the customers would purchase it and other related questions.

Value Stream: once the end goal has been determined then the next process is value streaming. It is mapping a simple but eye-opening experience that identifies all the actions that take a product or service through different stages includes, design process, production, procurement, administration and customer service. This process sometimes referred as re-engineering process. Eventually this enhances the entire business operations.

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Flow: In this stage there will not be any interruptions or bottlenecks occur during the manufacturing process. However, this has become one of the toughest challenges for the managers because the bottlenecks should be identified and should be removed from entire cross functional departments.

By successfully implementing the flow process companies can improve the efficiency more than 50%.

Pull: by removing the lean in the flow process the process will become much faster and can dramatically improve. This helps the company to delver the products as fast as possible. “Pull” refers in delivering the products to the final consumers. With the help of this products need to be built in advance.

Perfection: the most crucial and important principle among all other principles is perfection.

Perfection doesn’t come from one person. It ties all the team to built a perfect product. This requires individual as well as corporate effort. Eventually this strengthens the employee bond and lead to a great workforce. All these five principles will improve the production process efficiency and remove the bottlenecks.

Conclusion Manufacturing is a crucial and essential part of any business’s strategy to grow productivity, lower costs and bring about long-term growth. It is crucial that businesses implement lean manufacturing practices to achieve these ends. If you want to create a profitable, healthy and well-educated business, you need to be able to produce at a high standard. You also need to be able to meet customer orders quickly and efficiently. During the day, focus your energy on making sure your production rate is high enough to meet customer orders. As the owner, it’s your responsibility to make sure your operation maintains a high standard of efficiency. If you don't have this, your company will not be successful.

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Mr. Abhisekh Kumar MBA, 2022-2024 IBS Hyderabad Developing a New Product Through Crowdfunding: Tips and Strategies

The e-commerce industry is highly competitive and dynamic, with businesses constantly looking for innovative ways to attract customers and generate higher profits. One of the most effective strategies to increase profits and gain a competitive edge is through competition-oriented dynamic pricing. This pricing strategy focuses on adapting to changing market conditions to maximize profits. This comprehensive guide will provide you with an in-depth look into what competitionoriented dynamic pricing is, why it is beneficial for your business, and how to successfully implement it. By the end of this guide, you will have a thorough understanding of how to use this powerful pricing strategy to increase your profits and gain a competitive edge.

Benefits of Competition-oriented Dynamic Pricing When companies set their prices manually, they’re essentially guessing at what their customers are willing to pay. Competition-oriented dynamic pricing tactics let you automatically analyze data related to your business and competitors, then respond by changing prices in real-time to increase sales, maximize profits, and attract more customers. There are many benefits that come with using competition-oriented dynamic pricing, including: Improved Profitability - Dynamic pricing allows businesses to price their products in real-time based on supply and demand, seasonal demand, competitors’ pricing, and more. This means businesses can set higher prices when supply is low, and lower prices when supply is high. Accurate Product Pricing - Automatic pricing allows you to set accurate prices that are fair to customers. Instead of guessing at what your customers are willing to pay, you can use data to set fair and accurate prices that attract more customers without scaring them away. Attract More Customers - When you have fair pricing, customers are more likely to shop with you, which results in more sales and a larger customer base. Increased Customer Loyalty - Customers who shop at stores with fair pricing are less likely to shop around for better deals.

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Analyzing the Competition Before you can start adjusting your prices, you need to know what your competitors are doing.

The first step in dynamic pricing is to closely analyze and track your competitors’ pricing. This will help you understand the types of products your competitors are selling, their profit margins, and the prices they’re currently charging for their products. You can track your competitors’ pricing manually or with help of automated tools that are designed to collect and analyze data in real-time to help you make price adjustments. Pricing intelligence tools allow you to collect and analyze data in real-time to give you insights on how to adjust your prices based on your competitors’ pricing strategy. You can use a pricing intelligence tool like Price to track your competitors’ price, product information, and inventory levels, and see how your prices stack up against theirs. Price’s price tracking tool allows you to track and monitor the pricing and product information of your competitors’ listings and create custom alerts to notify you when prices change. Price also lets you track your competition based on product type, brand, and inventory levels. This will help you understand how demand for similar products and inventory levels vary across different products your competitors sell.

Developing a Pricing Model Once you’ve analyzed your competitors’ pricing, you can use that data to create a pricing model. A pricing model is a formula that determines the price for each item in your inventory based on the data collected from competitors’ pricing and your costs. There are several factors that you should consider when you’re creating a pricing model, including: Demand - The first thing you need to determine is the demand for your products, which you can calculate using the average sales of your top-selling products. You can also use a price-demand curve to help you determine the price you should charge. Price-demand curves show the relationship between the price of a good and the quantity demanded. You can use the price-demand curve to determine the quantity of units you can sell at different prices. Competitive landscape - You also need to consider your competitors’ pricing to determine a price that will help you stand out from the crowd. Customer pricing expectations You should also consider customer pricing expectations when creating a pricing model. For example, some customers may be willing to pay more for organic products while others are looking for cheaper, low-quality products. You can use the data you collected on your competitors’ pricing to help you determine a price range for each product type. Understanding all of these factors will help you create a pricing model and determine the price for each product in your inventory.

Setting Prices in Real-time After you’ve created a pricing model, you can start setting prices in real-time. Setting prices in realtime helps businesses gain an edge and generate higher profits by responding to changes in demand 42| 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

and reducing inventory levels. Setting prices in real-time is possible through software that incorporates your pricing model and competition-oriented dynamic pricing strategies. There are several software options available, including: Pricing Intelligence Platform - Pricing intelligence platforms are designed to let you set prices in real-time based on your pricing model and tracking data from your competitors’ listings. These platforms allow you to track your competition and react quickly by adjusting your pricing as needed. Pricing intelligence platforms also allow you to set pricing for seasonal goods and services based on a calendar. This helps you save time because you don’t have to manually adjust pricing. Pricing automation tools - Pricing automation tools allow you to set dynamic pricing by analyzing the data in your pricing model. These tools also allow you to set dynamic pricing based on demand, inventory levels, and your competition. Pricing automation tools allow you to set pricing based on a variety of factors, including seasonality, weather, customer demand, and more. These tools also allow you to set up alerts and notifications to let you know when to adjust your pricing based on changes in the market.

Monitoring Price Changes In addition to setting your prices in real-time, it’s important to monitor your competition to make sure your prices are still accurate. This will help you identify any changes in the market that may affect your pricing model and require you to make adjustments. There are several ways you can monitor the competition, including: Monitoring price changes - You can track your competitors’ price changes to determine whether your prices are accurate. Tracking inventory levels - Tracking inventory levels will help you understand whether demand for your products is increasing or decreasing. Monitoring customer behavior - Monitoring customer behavior allows you to understand how customers are responding to your products and competition. This will help you understand whether customers are buying higher priced items or lower priced products. Tracking social sentiment - Tracking social sentiment allows you to understand how customers are feeling about your products, the competition, and the market. This will help you identify any changes in the market that may affect your pricing model and require you to make adjustments.

Strategies to Increase Profitability There are several strategies you can employ to increase profitability and increase your profits through competition-oriented dynamic pricing. These strategies include: Increasing your prices - If you’ve collected data that shows customers are willing to pay more, you can increase your prices when demand is low and supply is high. Decreasing your prices - If customers are willing to pay less for your products, you can decrease your prices when demand is high and supply is low.

Switching to different product lines - You can also switch to different product lines based on demand, supply, and price. This will allow you to sell the products that your customers are willing 43| 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

to pay more for, while also lowering the price on the products they’re less willing to pay for.

Avoiding price wars - It’s important to avoid price wars, especially if you’re switching to different product lines. This will help you avoid coming across as desperate and encourage customers to buy your higher priced products Adopting Automation & AI-based Tools Many businesses rely on manual pricing and competition-oriented dynamic pricing, but this can be time-consuming and difficult to manage manually. Fortunately, you can use automation tools to save time and energy while improving your pricing strategy. Automation tools can help you set accurate prices, track your competition, and respond quickly to changes in the market. You can use automation tools to track your pricing, track inventory levels of your products, and collect data on your competition. You can also use automation tools to set dynamic pricing based on your pricing model and the data you’ve collected. This will help you save time and energy while improving your pricing strategy. You can also use automation tools to respond quickly to changes in the market. For example, you can set up alerts to let you know when your pricing needs to be adjusted based on changes in the market. You can also use automation tools to help

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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.

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