LAKSHYA: A BEACON OF KNOWLEDGE, APRIL EDITION 2021

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 nanosecond and hence it is quintessential to know about every minute change in the eco system. With Lakshya we aim to present our readers with compact yet explicit articles on vivid topics such as 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 in the near future.

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 "Success is the sum of small efforts, repeated day in day out."

Welcome to the 37th edition of “LAKSHYA”, our monthly supplement designed for people who dare to think above the average and believe in connecting the dots. We live in a technological era where an individual need to enhance his/her skills in every aspect that they deal with. Kaizen means continuous improvement for that to happen, everyone should stay updated and informed. Magazine is a kind of tool that aids students and professional managers to get deeper insights about the current trends and latest happenings around the world.

Lakshya is an amalgamation of articles from corporate professionals, faculties, and students from reputed organisations and institutions. The articles that are published through Lakshya have the essence of hands on experience from corporate professionals and business leaders, theoretical concepts and strategies from faculties, organic and fresh ideas from the young pool of budding managers.

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

We hope that you like this issue and please let us know if there are any subjects, you'd look forward to be addressed in upcoming editions. Please write to us and become a part of this discussion.

Email ID: kaizenclub.ibs@gmail.com

SAI KIRAN BOYINA SENIOR RESEARCH ASSOCIATE Kaizen – IBS Hyderabad Batch 2020-22

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CONTENTS

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TITLE

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From the Mentor’s Desk

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SUPPL Nature has solved one of the world’s greatest problem – the

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Suez trouble ends Supply Chain Management – Introduction & Significance In New Normal

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New Challenges in Pharmaceutical Industry

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Impacts of a crisis are never a gender-neutral, COVID19 is no exception!

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How Covid-19 amplified the importance of cold chain

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Managing supplier risk in the era of corona

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Blockchain Use Cases in Manufacturing

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Prada’s Bold Step Towards Sustainability. First Luxury Brand To Sign Sustainability Deal

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On-Demand Manufacturing

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Aeroplane Manufacturers

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From the Mentor’s Desk In the era of competition, it is imperative for students to 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 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 endeavour of knowledge creation through LAKSHYA.

Nishit Kumar Srivastava Mentor, Club Kaizen

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Faculties Insight Mrs. Pavana Jyothi Assistant Professor-IBS Hyderabad

Nature Has Solved One Of The World’s Greatest Problem – The Suez Trouble Ends It is not the technology, not the human mind, not the super power nations - but the nature (MOON) has solved one of the world’s greatest problems, that was originally created by the nature (WIND) – the Suez trouble ends: A giant container ship, the Ever Given vessel, ran aground in Egypt's Suez Canal after a gust of wind blew it. Tuesday (23/3/2021), bringing marine traffic to a halt along one of the world's busiest trade routes.

The Taiwan-owned MV Ever Given, a 400-metre1,300-foot-long and 59-metre wide vessel, loaded wait of 220000 Tons, carrying 20000 containers lodged sideways and impeding all traffic across the waterway as excavation trucks struggled to dig it out.

0 0 0 0

Is it so big and important news for the world?

Certainly Yes. Before we get into more details of this crisis which ended on 29/3/2021 after a log week of traffic halting on the Suez Canal. Let’s quickly understand the importance of it.

• • • • • • • • •

It connects two continents – Asia and Europe Very critical for Indian Export Import trade India imports major parts of its crude oil through this canal Very important in global supply chain Reduces the distance between India and Europe by 7000 KM 10% of the all global trade flows through the canal Crude oil, minerals, livestock and many more are travelling through this canal Goods worth US$ 9.6 billion pass through it every day Over 50 ships traverse the canal everyday

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• •

193 KM long , 8 meters depth , 1.5 million workers were used for digging the canal Construction started in 1859 and opened for commercial purpose in Nov, 1869 completed in 10 years

Impact of blockage and consequences: Insurance “The insurance industry is waiting with bated breath at the direction from which claims can arise out of the Canal blockage and of course what could be the enormity of the exposure,” said R Balasundaram, Executive Vice-president, Global Insurance Brokers Pvt Ltd. There are various areas of claims to possibly come up such as demand for GA (General Average) and salvage guarantee from cargo interests. There could be a claim under the hull and machinery policy or damages against the vessel, and business interruption losses. There could be losses due to perishable cargo or the cancellation of orders, hence the claim demand,” he stated. Describing it as a “once-in-a-lifetime type of event”, the Canal blockage is estimated to cause losses in billions of dollars for insurers and the loss of trade per day due to the closure is pegged at close to $9 billion, he said.

Operations “Global shipping giant Maersk warns ripple effects of Suez Canal blockage will last for weeks” As on 29/03/2021, there were still 422 ships waiting to go through the Suez Canal. It is a known fact that no ship thought to take another

route, despite the fact that the crisis lasted 6 days, because the alternative route was more than 10,000 miles. The Suez Canal is still the safest, shortest, and best service course.

Trade Suez Canal blockage is delaying an estimated $400 million an hour in goods - Lloyd’s List calculates. Separately, data from Lloyd's List showed the stranded ship was holding up an estimated $9.6bn of trade along the waterway each day. That equates to $400m and 3.3 million tonnes of cargo an hour, or $6.7m a minute.

Looking at the bigger picture, German insurer Allianz said on Friday its analysis showed the blockage could cost global trade between $6bn to $10bn a week and reduce annual trade growth by 0.2 to 0.4 percentage points. Shipping broker Braemar ACM told the Wall Street Journal that the cost of renting some vessels to ship cargo to and from Asia and the Middle East had jumped 47% to $2.2m. Some vessels have been rerouted to avoid the Suez Canal. That is adding around eight days to their total journeys.

The Suez Canal blockage doesn't just affect the global shipping industry or the Egyptian economy - countless businesses, from domestic transport providers to retailers, supermarkets and manufacturers are also impacted.

Impact on India: The export scenes in India are no different either.

In addition to hike in shipping rates, the blockage has the potential to curtail key manufacturing supplies.

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India’s shipments of oil, textiles, furniture, cotton, auto components and machine parts to Europe, North America and South America could got delayed by 10-15 days. However, the most overlooked aspect so far has been the impact of a prolonged blockage on fuel prices in India, which is already one of the highest in the world. India, more than two-thirds of whose crude comes from the Gulf region, is among the top importers of crude oil and products via the Suez Canal. The volume is even higher than China, South Korea or Singapore. The resultant impact will show up in the form of higher crude prices, eventually trickling down in retail price terms.

obvious response to this gravitational tugging.)

When there's a full moon or moon is in its new phase, its gravitational pull adds onto that of the sun, resulting in more dramatic high and low tides, according to the National Oceanic and Atmospheric Administration (NOAA).

Problem solved Here's how the full moon helped free the stuck ship Ever Given in the Suez Canal

Those factors mean that the moon really lined up to give the Ever Given a much-needed boost. According to the New York Times, the Suez Canal may have seen water levels about 18 inches (46 centimeters) higher than usual.

Tides are most extreme when the Earth aligns with both the sun and the moon, the two objects that exert the strongest gravitational pull on our planet.

(Because water moves most easily in response to this pull, the tides are the most

And the moon was full on Sunday (March 28).

Even better for the stranded ship, as the moon was simultaneously relatively close to Earth in its orbit; it will reach the closest point, called perigee, on Tuesday (March 30). Perigee can also accentuate the extreme tides caused by full and new moons, according to NOAA

And now, thanks to the moon, the infamous Ever Given is on the go again (Nature again helped to solve the problem.

About the author: Mrs. Pavana Jyothi Ph.D from GITAM and also qualified Company Secretary, Member of ICSI, 2012. She has 9 years of teaching experience and has special interest towards Corporate Governance

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Corporate Angle

Mr. Pranjal Kumar Phukan Honorary Director-Strategy (ICTMAE) Supply Chain Management – Introduction & Significance In New Normal

Supply chain management is the handling of the entire production flow of a good or service starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (“links” in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users.

According to Bart Perkins & Thomas Wailgum, there are five components of traditional supply chain management systems: • • • • •

Planning Sourcing Manufacturing Delivery and Logistics Returning

Identifying potential problems • Optimizing price dynamically • Improving the allocation of “available to promise” inventory IDC’s Simon Ellis in The Path to a Thinking Supply Chain defines supply chain management by identifying the five “Cs” of the effective supply chain management of the future: • • • • •

Connected Collaborative Cyber-aware Cognitively enabled Comprehensive

Create a network or process to take back defective, excess or unwanted products.

By analyzing various global partner data, three scenarios are identified where effective supply chain management increases value to the supply chain cycle: KAIZEN’S OPERATIONS & RESEARCH ENTITY

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EVOLUTION OF SUPPLY CHAIN MANAGEMENT Both industrial engineering and operations research have their roots in logistics. Fredrick Taylor, who wrote The Principles of Scientific Management in 1911 and is considered the father of industrial engineering, focused his early research on how to improve manual loading processes. Operations Research began when scientists demonstrated the value of analytics in the study of military logistics problems in the 1940s as a result of the complex requirements of World War II. The evolution of supply chain management has been characterized by an increasing degree of integration of separate tasks, a trend that was underlined in the 1960s as a key area for future productivity improvements since the system was highly fragmented. Although the tasks composing logistics have remained relatively similar, they initially consolidated into two distinct functions related to materials management and physical

distribution during the 1970s and 1980s. This process moved further in the 1990s as globalization incited a functional integration and the emergence of logistics in a true sense; all the elements of the supply chain became part of a single management perspective.

Stepwise and according to improvements in information and communication technologies, the two ends of the assembly line became integrated into the logistics of the supply chain: the timely supply of raw materials and components from outside, and the effective organization of distribution and marketing. High rack storage, which later became automatically driven, or the internal movement of packages by flat robots was early expressions of logistical engineering.

Initially, logistics was an activity divided around the supplying, warehousing, production, and distribution functions, most of them being fairly independent of the other.

Although supply chain management (SCM) has only recently appeared as one of today’s most powerful strategic business concepts, its development can be traced back to the rise of

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modern logistics. In fact, although SCM represents a radically new approach to leveraging the supply channel in the search for order-ofmagnitude breakthroughs in products and markets, it, nevertheless, is closely connected with and in many ways is the product of the significant changes that have occurred in logistics management.

GREEN SUPPLY MANAGEMENT Green Supply Chain Management (GrSCM) aims to integrate environmental thinking into supply chain management. This includes product design, material sourcing and selection, the manufacturing process, delivery of the final product to consumers, and end-of-life product management.

Central concepts associated with GrSCM: • • • • •

Green purchasing and procurement Green manufacturing Green distribution Reverse logistics E-waste.

Ways to build Green Supply Chain • • • • • • • •

Product Selection Process and production Business Partners selection Logistics Design Packaging Material Reverse logistics Design Information Technology Green Building: Deploying greener practices in Design, construction and maintaining the buildings.

Benefits of GrSCM: •

GrSCM will help us to gain a competitive advantage and help us to attract new customers.

• • • •

Increased use of resources, improved efficiency and reduced production cost.

It contributes greater towards improved financial performance.

Reduces risk by avoiding hazardous material that leads to environmental effect.

Improved quality of products and services gives higher customer delight and reputation.

DESIGN THINKING TRANSFORMATION IN SUPPLY CHAINS MANAGEMENT Design thinking is about designing products, services and processes, always with the end-user in mind. When you apply design thinking to the supply chain, you have to think of every stage of the process, from “farm to table.” And your ultimate objective has to be designing it for the end user.

The three key stages of design thinking: Stage 1: Examine Business Processes Stage 2: Explore Rapid Prototyping Stage 3: Execute a Robust Customer Experience There are many tools and methodologies deployed to realize this value of effective supply chain and some of the most popular concepts in the efficiency movement are: • • • • •

Six Sigma Total Quality Management (TQM) Lean Manufacturing Outsourcing Digitization

Supply Chain Design at the very basic level refers to decisions taken by managers regarding the design of the physical (e.g., facility location, inventory levels); financial (e.g. cash-to-cash cycle, costing) and information flows (e.g.

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communicating with suppliers, demand forecasts) of the company’s supply chain to achieve its goals

of superior customer value at the lowest supply chain and overall cost.

About the Author: Dr. Pranjal Kumar Phukan Over 25 years of experience in Supply Chain & Operations Management across top firms and global brands and has a strong background in network design, distribution, logistics, planning and supply chain transformation activities. Consistently demonstrated leadership abilities in achieving operational improvement by working closely along with the management and plugging the loopholes in the system by setting up systems and processes in place. An effective communicator with excellent problem solving and stakeholder management skills.

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The Corporate Angle Sandeep Chatterjee Associate Director Deloitte Touché Tohmatsu Services, Inc.

New Challenges In Pharmaceutical Industry Introduction The Pharmaceutical industry has seen unprecedented growth over the years. This has resulted in many more players entering this space.

As the world moves to a new normal each day, the industry offers a unique set of challenges.

Pricing Pressures Based on a historical blockbuster drug growth paradigm, the life sciences sector has enjoyed healthy growth rates and achieved one of the highest profit margins across all industries. Its pipeline paradigm, valued on the ability to develop and bring drugs or products to market, has generally led the industry to focus on growth rather than value. But the pressures to increase efficiency and decrease waste have grown dramatically over the past few years. Significant blockbuster drug patent expirations from 2012 through 2015 mean that many companies are now pouring money into R&D to boost their pipelines. Adding to the pressure, the costs of bringing a new medicine to market have never been higher. Deloitte’s analysis of 12 leading biopharmaceutical companies shows that the costs of the traditional, fully integrated pipeline process from idea to R&D to

commercialization have increased from $1.188 billion in 2010 to $1.539 billion in 2016.5 Deloitte’s analysis reveals that annual R&D returns for large biopharmas declined from 10.1 percent in 2010 to 3.7 percent in 2016. This time around it is the biologic drugs, which are more complex and expensive to develop, that are expected to be the growth engine of the pharmaceutical industry, increasing the need for capital.

Health care reform and the shift to value based medicine generally means that buyers of pharmaceutical or life sciences products need to deliver impactful patient care but with fewer resources, and they are not willing to pay blockbuster prices. Moreover, drug pricing is becoming a hot political issue globally, with societies balking at high drug prices. Additional factors exerting pricing pressures on the sector include increased regulatory compliance and globalization of health care, with governments negotiating lower drug prices.

Personalized Medicine Personalized medicine is no longer a thing of the future. The approval by the FDA of tests

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developed by personal-genomics Company, 23andMe, gives patients an opportunity to better understand their health risks for Alzheimer’s or blood disorders. Empowering patients with information about their genetic proclivities means they will likely expect medications to ameliorate the risks presented by their specific genetic profiles. Kite Pharma is developing innovative cancer treatments that involve removing a patient’s immune cells, engineering those cells to identify cancer, then infusing those cells back into the patient to kill cancer cells. Juno Therapeutics, which also develops personalized cancer treatments, stresses “the power of individualized treatment.”

The manufacturing, dosages, and distribution of personalized medication can be exponentially more complex, expensive, and technology- and data-intensive than is true for chemical drugs.

Personalized cancer treatments require blood to be collected, shipped, processed, shipped back, and reinjected. To ensure patient safety, it typically requires a complex supply chain, which needs to be carried through and recorded at every step, something that is next to impossible without a connected, electronic data transfer across the supply chain.

Thanks to technologies such as additive manufacturing (also known as 3D printing), medical devices—dental or knee implants, for example—are also best “made to order” based on specific patient geometry, thus improving outcomes. The potential for medical outcomes from the personalized approach is reflected in the sector’s growth projections. The US global personalized medicine market is forecast to reach $2.4 trillion through 2022 at a compound annual growth rate (CAGR) of 11.8 percent—more than double the projected 5.2 percent annual growth for the overall health care sector.

The life sciences sector does not operate in a vacuum. Blurring of the lines between industries and the idea that there is just one single customer means that life sciences should meet the expectations created by the digital revolution. Just like any other industry—think of the impact of ecommerce on traditional retailers or the shift to self-driving technologies by traditional automakers—the life sciences sector is ripe for change. An increase in online pharmacy operators typically requires manufacturers to change their traditional sales and distribution models and become faster, more transparent, and more efficient. This is not going to happen when it takes inventory four months to move through a traditional supply chain. Almost every executive from every industry cites Amazon when asked about customer experiences. Customers expect the quality, visibility, and speed of fulfilment that today’s technologies enable, which is possible with a digital supply network in place.

Regulators are also increasingly expecting companies to conduct data-driven investigations, and to demonstrate the ability to trace design of manufacturing modifications, or prove the resolution of the root of a problem with a data trail.

While the intense regulatory environment may be a challenge, it can also become an opportunity by applying digital supply networks.

Another highly regulated industry, financial services, also runs on compliance. Its digital investing is typically geared for compliance at first, but financial executives are beginning to realize that their technology investment will go much further if they use it for other areas, such as becoming more customer-centric, for example.

The life sciences sector has an opportunity to become more digital-driven and data-centric not only in compliance but also in business outcomes.

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About the Author: Sandeep Chatterjee This case has been written by Sandeep Chatterjee, IIM Kozhikode (Batch of 2003) and Associate Director, Deloitte Touché Tohmatsu Services, Inc.

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Corporate Angle

Mr. Samuel Veerasingh MD - Remote Operations

Impacts Of A Crisis Are Never A Gender-Neutral, COVID19 Is No Exception!

The last year and a half has been a nightmare for every human living on this planet. Sad to have lost millions of lives as the Pandemic caught us by sheer surprise. After all the moaning, slowly and steadily we are finding our feet back on ground. I must admit that this global pandemic has been a leveler is some sorts. Like every other set-back, I have been trying to think of a few strong learnings and a few positives if any… Dignity of labor has a new meaning. We are forced to shut down our hyper-hierarchical mindset. While we valued the help from our domestic helpers, we took them for granted. Today, they are on a forced sabbatical enjoying their much-needed break while we are scrubbing our floors and no longer craving for exotic gourmet dishes but cooking our idli-sambar ourselves. Our ego curves have certainly flattened.

The impacts of crises are never gender-neutral, and COVID-19 is no exception.

If I were to be forced to look for the positives of Covid-19 and the thoroughly miserable year we have all just endured, then surely the upside is that many of us have discovered that working flexibly, from home, is not only possible, but can also be successful. And it has been a feature of the

workplace supported by men as well as women.

The pandemic has been a great leveler, and we have been in the same boat, or stuck on the same conference call, and those female employees who had previously had requests to work from home rejected by male bosses have suddenly been able to demonstrate that it could work. Productivity might go up, not down, as we ditch the daily commute.

But there is always a “but” the WFH revolution did not apply to everyone equally. Yes, large numbers of both male and female employees found they could work from home, but many could not. And juggling childcare responsibilities while conducting the endless calls is not always easy; and during the course of the pandemic this burden seem to have fallen predominantly on female shoulders. We may have laughed at the children that appeared in the background of conference calls, or interviews, but there were many times when women looked anxious, genuinely worried that colleagues would judge them for the inability to manage home-working and childcare responsibilities.

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When we went into the pandemic female employment was at a record high. However, my biggest fear is that when we come out we will have slipped back to the 1990s. We know the sectors in which women are most likely to be employed are also the ones staring at a pretty bleak future. A big percentage of retail workers are female, and we have already seen enormous redundancies in that sector across the globe. Throughout the pandemic we know women have done the greatest proportion of caring, whether for the young or the elderly. We know they have been in front-line health worker roles in large numbers. We know they have been

on the supermarket checkout enabling us to get our groceries. We know now there need to be solutions to make sure their employment chances are not disproportionately affected, because many of them are scared that they are.

For everyone who speak highly about woman empowerment, NOW is the time to walk the talk.

Now is the time to make the workplaces twice as friendly as they were for woman colleagues. Having said that, WOMAN truly are a synonym to resilience hence come what may, they will BOUNCE BACK!

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Emerging Managers Mr. Shivanand MBA-22, NITIE, Mumbai

How Covid-19 Amplified The Importance Of Cold Chain Pharmaceutical companies and a host of other parties, including the federal government, nonprofit organizations and pharmaceutical suppliers, are busy readying the supply chain to handle that high number of vaccines. This is taking place while trying to maintain production of other inoculations — including the seasonal flu — and other medical products using some of the same materials and manufacturing capacity.

The vaccine supply chain involves not only manufacturing the vaccine contents, but storage and packaging components, cold-chain transit, domestic and global shipping, distribution strategies and storage. COVID-19 vaccines could be ready for some frontline workers and at- risk populations later this year or early 2021. Unlike with traditional development timelines, interested parties are throwing money at this development process to speed up availability.

Vaccines are complicated to manufacture, even compared to other pharmaceutical products.

Producing the antigen, which provokes the body's immune response, uses different techniques depending on the vaccine's design.

The vaccine candidates use different technology types, like protein-based, non-replicating viral vector or DNA vaccines. This means the equipment and processes to produce the vaccine differ.

The filling and packaging materials vary as well, whether in multi-dose vials or single syringes. All of this is done in a highly sterile environment with temperature controls and using skilled personnel.

Equipment and processes must be tested and government-approved, along with testing the finished product.

The logistics of delivering a vaccine to billions of people worldwide will be a crucial step, particularly early on when the supply is limited.

Guaranteeing that vaccines don't lose their potency will be a challenge for all companies developing shots that have to be refrigerated.

The BioNTech/Pfizer experimental vaccine, called BNT162b2, however, must be stored and distributed at -94 degrees and once thawed can be kept in a refrigerator at below 46 degrees for up to seven days. These requirements will make it

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very difficult for community clinics and local pharmacies to store and administer. Meanwhile, vaccines that don't need refrigeration could have an edge in parts of the developing world that don’t have the necessary electrical infrastructure.

Some, like ones that use inactivated viruses to prevent hepatitis A, have been found to be stable after being stored at temperatures of up to 99 degrees for nearly a year.

UPS announced its involvement with pharmaceutical vaccine manufacturers to provide transport of drugs and ingredients for clinical trials and manufacturing. It will also distribute the vaccines, when they're ready, commercially via cold chain.

Reference: https://www.prospectmagazine.co.uk/economics-and-finance/economics-has-a-gender-problemand-it-starts-at-school

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Emerging Managers

Mr. KSV Naresh MBA-22, NITIE, Mumbai

Managing Supplier Risk In The Era Of Corona virus With global supply chains staying global for a foreseeable future, how does one equip their Supply Chain to stay out of trouble?

and reliable way to collect and disseminate information.

Disruptions of COVID 19 scale do not happen often but your supply chain is constantly exposed to threats from seemingly smaller risk events that recur through the year. What they lack in scale, they make up for in frequency. For instance, events like factory fires, strikes, power outages, capacity shutdowns, bankruptcy may be easy to ignore in isolation but add them up and you will know the damage they do to your bottom line.

In the world of ‘just-in-time inventories’, the Ford story is one of the most relevant cases in point.

During the Thailand floods they were forced to shut down the operations of their most profitable line of cars because of their inability to get supplies in time. Later, Ford realized that they had several sub suppliers that were also in Thailand and severely impacted as well. So the damage done was incapacitating at an overall level.

Having the entire network of sub suppliers tracked and mapped is on every sourcing organization’s wish list and rightfully so. Gather data about sub suppliers from your primary suppliers or use third party sources to get the information to the database. For more evolved organizations this can be made a part of a stricter supplier onboarding process.

Here are some ways to keep supply chain out of trouble: Develop a sense, stay informed and know where to look for risk events: Information is power and timely information even more so. Many organizations depend on individual buyers and supply managers to keep a tab on their suppliers. But with thousands of suppliers this isn’t an easy or efficient mechanism. Have a consistent

Map it all:

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Making it mandatory for primary suppliers to disclose their sub suppliers could go a long way in protecting your supply chain in future.

events, while making sourcing decisions builds risk resilience within an organization in the design stage itself.

Plan for alternates:

Once you include these in the supplier ranking mechanism and assign relevant weights to it, you will not fall victim to the domino effect of external supply chain risk.

An easier way out of such risks could be to have a ready- repository of alternative suppliers identified.

These alternates should be identified for every critical function of your supply chain and preferably be geographically diversified to mitigate risks. It is crucial for your primary suppliers to zero down on alternatives since risk becomes exponentially higher as one goes down the value chain.

Tackle it at design stage:

Have a continuity plan: Having a business continuity plan is considered as a hygiene factor. Ideally, everyone should know where to start and what to do when such events strike. If your organization does not have this figured, then this is the place to start and then move forward.

Sourcing is a supply organization’s drawing board.

Considering the intelligence of past and future

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Emerging Managers Mr. Ajay Narendra MBA-22, NITIE, Mumbai

Blockchain Use Cases In Manufacturing The manufacturing industry, which accounts for 17% of the global GDP, has always been plagued with several problems such as quality control, inefficiency and more. Blockchain has the potential to radically transform it by offering visibility across every aspect of manufacturing.

One of the major causes of financial loss for manufacturers has been inefficient procurement of products. The complex supply chain often exposes organizations to risks and unwanted expenses. With Blockchain solutions, companies can streamline and automate their supply chain and speed up the procurement process- both Here are 7 potential use cases of blockchain ordering of goods and payment involved. technology in manufacturing: Efficient inventory management: Improved Tracking and Traceability: Blockchain enables you to connect with every An IoT-powered system can be used to track the stakeholder in the supply chain- supplies, origin of a manufacturing part from the point of distributors or even retailers, the records can be production till retail destinations, thereby enhancing accessed by everyone in the network. This means, transparency and traceability for everyone in the everyone holds a copy of the information, thereby value chain. The data gathered from IoT sensors can eliminating confusion created in the supply chain be fed into the Blockchain, allowing for a shared processes. This helps to plan and manage view and ensuring that there are no gaps in handling inventory better. goods as they move along the supply chain.

Multiple processes involved such as Better Payment Process: documentation, acquiring certifications, timestamps, quality checks, can all be improved Smart contract functionality of Blockchain significantly with the implementation of automates the payment process and ensures quicker and guaranteed payment to the suppliers.

Blockchain.

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Blockchain databases can be analyzed and used to create forecasts and predictions- not only to resolve the lags in the supply chain but also to elevate customer experience by ensuring transparency of product origin and manufacturing process.

Cost Reduction:

Considering the direct transactions and limited infrastructures in use, the reduction in the cost of manufacturing via a blockchain network becomes another factor that enhances its traceability. In Improved data security: essence, a manufacturer wouldn’t have a need to secure the services of multiple auditors to trace Communicating information such as invoices and and confirm the status of goods; since that can be contract details in any supply chain can be very done cheaper and more effectively on the risky using traditional methods. This is where Blockchain network.

Blockchain helps to keep the information secure with the best cryptography techniques. Since information blocks are nothing but chronologically stored copies of documents that are linked to the previous block, the chances of information getting hacked is eliminated.

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Emerging Managers

Ms. Shushree Shweta Grand Ecola, MiM, 2021 SKEMA, Paris

Prada’s Bold Step Towards Sustainability. First Luxury Brand To Sign Sustainability Deal.

In order to encourage sustainability, Prada has signed a 50 million euro (£43 million) agreement with Crédit Agricole Group, a financial services business this year.

The five-year sustainability loan, the first in the luxury industry, allows the Italian fashion house to change its interest rates on an annual basis if certain goals are attained.

These three target which were chosen by Crédit Agricole, include the use for a certain period of time or training of Prada staff and fashion houses in a number of stores using appropriate quantities of sustainable nylon. Also an emphasis is made to move to nylon substitute and re-nylon.

There is also planning to provide LEED (Leadership in Environmental Design and Energy) certification to involved personnel.

Alessandra Cozzani, Chief Financial Officer at Prada, explained the value of the Sustainability

Loan stating that there is a financial stake in achieving these objectives.

This step shows that sustainability is a prioritised element in the strategy for the development of the Prada Group.

According to data obtained from the news and analysis service Environmental Finance, The Prada loan is a new initiative in the luxury market and it will empower the sustainability-related credit in various industries that has already gained a lot of momentum in recent years.

Demand for sustainable loans rose from $5 billion in 2017 (£3.88 billion) to $40 billion the following year ($31.05 billion). Crédit Agricole’s corporate banker Alberto Bezzi said the uniqueness of the Prada bid was a way to assess the luxury group's attempt to be more successful. Just one of the environmental-friendly projects recently funded by the brand is the ecological loan.

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Earlier this year the luxury label launched a nylon bag range made of recycled plastics.

The six bags in the collection are made of recycled artificial fabric from the recycling of marine plastic, fishing nets and textile waste.

Prada announced its plan to remove fur from its female collections in February 2020. Focusing on advanced materials will allow the Group to test new creative design frontiers and meet the demand for ethical goods.

Prada will hold a third conference on 'Shaping a Future' in New York to discuss ethical issues in the workplace. It’s a series of conferences that Prada has been organising since 2017 to with the aim of stimulating a debate on the most significant changes taking place in contemporary society.

Sustainability is an Operating Principle This year, Prada has stepped up its sustainability game, like most of the big fashion brands. In June 2019, along with a pledge to use only recycled nylon by the end of 2021, the Italian fashion house announced the launch of its Re-Nylon line. Then at the G7 summit in August, the Fashion Pact was signed by one of 32 companies, pledging to achieve three main sustainability objectives: •

Eliminating greenhouse gas emissions by 2050

•

Reducing single-use plastics by 2030 fostering creativity for elimination of microfiber waste.

The brand became the first luxury company to sign a sustainability-linked loan at the beginning of November, which means it will lose out financially if it fails to meet its green goals. Prada continue to look at moving to sustainable energy and saving raw materials. These are the kinds of initiatives that they started a couple of years ago. Prada has also invested in an energy efficiency and

sustainability project in recent years. These project unveil three new gardening plants designed by Guido Canali in Italy. It focuses on the importance of nature.

Then what's the drive behind renewed focus on sustainability and products?

this green

Today, we need to help improve the market, the culture and give an option to our consumers to ingrain the green initiative in their lifestyle. The majority of the younger generation understand the importance of sustainability and are in its favor.

Very soon, all the populace will share this importance. In words of Prada’s chairman Carlo Mazzi in an interview with vogue: “If we want to continue to be a creative and innovative luxury brand company, we need to understand our customers and what could happen next, what they consider to be important in their lives."

In particular, he emphasized on the need for a wider cultural shift in order to resolve the issues of sustainability and climate change entirely. The government, for example, is planning to end its participation in the Paris programme in the US. This is because most Americans do not agree with the need to address the climate crisis. Any lawmaker will change his position as soon as the majority share these views.

Mazzi points out that when it comes to the role of fashion in promoting sustainability, it cannot be simply a sales tool, recognising the extent of the challenge. While the use of regenerated nylon from old fishing nets is one of Prada's big goals, it is also looking for alternative sources of other raw materials. "The problem is very difficult," he said, referring to and dealers. the supply chain's difficulties.

It is easy to reduce company’s direct carbon footprint, but it is very difficult to reduce effects by involved suppliers

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Prada's pioneering decision to sign a $43 million green loan with Crédit Agricole was another industry-wide shake-up that paved the way for other brands. The organisation has to achieve its targets which are based on •

the number of shops assigned to LEED Gold or Platinum Certification

•

showing environmental efficiency

•

the number of employee training hours which will help them bring up green initiatives and boost creativity

•

the use of Prada Re-Nylon

If Prada is successful in achieving the above targets the interest rate on the loan will be reduced. This is an interesting opportunity for Prada because they are really confident that they will be able to improve sustainability

and they have accepted the risk of paying more if they can't. As part of the Luxury Agreement referred to above the corporation has committed to reach net zero emissions by 2050.

Is Prada able to keep up with this without having a significant strain on it?

We need to understand that each company is as important as the other, arguing that the implementation of a structure whereby businesses are rated within the framework of their sustainability programs is not the solution. Each brand should be responsible for bringing about effective change in its own right. These small and viable changes made towards sustainability by each and every company will cause a huge impact and this can drastically change way things work moving to a greener future.

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Emerging Managers

Mr. Kushal Saraogi MBA, Batch 2020-2022, IBS Hyderabad, India.

On-Demand Manufacturing The Millennial generation runs completely on the term ON-DEMAND. From buying food to ordering cabs and even taking up exams, everything has become on-demand! It is just a matter of time that even the manufacturing industries will follow the same principle of ondemand. When it comes to the small-scale industries this concept is a very important and indeed beneficial one to them. However, when it comes to the big companies, they are better off with the current system in place.

While we don’t get to hear much about this term in the media, let us understand what it means.

possible to manufacture even small quantities at a much cheaper rate. The era of huge minimum order quantities and lead times seems to have gone by. On-demand manufacturing works when the systems of the vendor and the buyer are vicinal. The system works only if orders can be rapidly placed.

Hence, the need for economies of scale as well as standardization has been nullified. It is to be believed that huge factories and warehouses will soon be a thing of the past since on-demand manufacturing has so many advantages. Some of these advantages have been listed below

What is On-Demand Manufacturing?

Advantages of On-Demand Manufacturing 1. No need for markdowns – The modern apparel industry has a common and most practised way which is markdowns and end of season sales. This happens because large number of mass-produced goods lie unsold till the end of the season. As on-demand manufacturing will replace mass production, there will be no situation of markdown. These markdowns hamper the goodwill of the company. As on-

The earlier method of manufacturing relied on products with standard specifications and were mass produced and stored. Since both mass production and storage is expensive, bigger companies have had an upper hand in manufacturing.

However, things are about to change with the advent of On-Demand Manufacturing. With technologies like 3D printing, it has become

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demand manufacturing becomes more prevalent, the era of the end of season sales might be about to disappear.

2. Level playing field - The on-demand manufacturing system provides a level playing field to small companies as well as the bigger ones. This is because there is no need to mass produce products as the per unit prices do not go down pronouncedly. This allows more competition in the market and no few companies can dominate throughout. Increase in innovation and price feasibility will help customers enjoy a better offer.

3. Market testing – The taste and preferences of customers are shifting at a fast pace. What one likes today may not be his priority the next moment. This is a main headache in the fashion and apparel industry. Where they need to keep the stocks ready on the basis of an ongoing trend and the assumption with which the manufactured

goods would be sold by the end of the season, failing which will lie unsold in the godowns.

With on-demand manufacturing the lead time for manufacturing will reduce leading to companies deciding whether they want to produce more and if so in how much quantity. Since mass manufacturing is not necessary, products can be repeatedly produced as and when required to meet the needs of the consumers.

4. Environment friendly - Mass producing goods is also damaging to the environment. This is because mass production of goods leads to more and more consumption of resources.

Sometimes these goods are not even consumed, leading to a mere waste of the resources. Ondemand manufacturing ensures that natural resources are utilized only when there is a genuine demand from the customers. Hence, on-demand manufacturing is way more environment-friendly than other modes of production.

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5. No Credit risk - Lastly, there is also a huge financial benefit for not having to mass produce goods. Mass production generates a situation wherein the sales have to be pushed. Since sales are being pushed on to subsequent levels of the supply chain, credit sales must be made. As a result, many companies find that their money is locked away in accounts receivables. More accounts receivables means a higher chance of bad debts. On-demand manufacturing changes all this. There is no need for credit sales. Instead, in most cases customers pay upfront. Therefore, the

need for working eliminated.

capital

is

completely

The bottom line is that on-demand manufacturing is better from a financial, environmental and also from an operational point of view. It is only a matter of time before it becomes the most prevalent way of manufacturing all across the world.

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Emerging Managers

Ms. Awari Renuka Sambhaji MBA, Batch 2020-2022, IBS Hyderabad, India.

Aeroplane Manufacturers An aviation maker is an organization or individual associated with the different parts of planning, building, testing, selling, and looking after aeroplane, aeroplane parts, rockets, rockets, or shuttle. Aviation is a high innovation industry.

The aeroplane business is the business supporting flying by building an aeroplane and assembling aeroplane parts for their upkeep. This incorporates aeroplane and parts utilized for common flight and military aeronautics. Most creation is done compliant with type authentications and Defense Standards gave by an administrative body. This term has been to a great extent subsumed by the seriously including term: "aeroplane industry".

The biggest aviation providers are United Technologies with $28.2 Billion of income, trailed

by GE Aviation with $24.7 Billion, Safran with $22.5 Billion, Rolls-Royce Holdings with $16.9 Billion, Honeywell Aerospace with $15.2 Billion and Rockwell Collins including B/E Aerospace with $8.1 Billion. Electric aeroplane advancement could create huge changes for aviation providers.

Before the 1980s/1990s, aeroplane and aeroengine producers were vertically coordinated. At that point, Douglas aeroplane rethought enormous aero structures and the Bombardier Global Express spearheaded the "Level 1" inventory network model motivated via car industry, with 10-12 danger sharing restricted accomplices financing around half of the improvement costs.

The Embraer E-Jet continued in the last part of the 1990s with less than 40 essential providers. Level 1 providers were driven by Honeywell, Safran, Goodrich Corporation and Hamilton Sundstrand.

During the 2000s Rolls-Royce decreased its provider include after getting car inventory network chiefs. On the Airbus A380, under 100 significant providers reevaluate 60% of its worth, even 80% on the A350XWB. Boeing accepted a forceful Tier 1 model for the B787 yet with its troubles started to address why it was acquiring lower edges than its providers while it appeared to face all the challenge, following its 2011 Partnering for Success activity, as Airbus started its Scope+ activity for the A320. Level 1

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combination additionally influences motor makers: GE Aviation obtained Avio in 2013 and Rolls-Royce plc is assuming responsibility for Industria de Turbo Propulsores.

India offers crude materials, yet in addition innovative abilities to make planes and all the more significantly, a developing business sector locally just as the more extensive Asian area, which is relied upon to see a tremendous blast in aeronautics, which could help pull in assembling of key parts.

India must have manufacturing here. Not that everything from A to Z will happen in India, it is part of the value chain, the supply chain that India can manufacture critical components, the assembly should also happen in India.

Indeed, even today, parts for jets made by Boeing and Airbus are fabricated in a wide range of nations and afterwards sent to the last get together spot. India might want to be a basic piece of this inventory network.

Indian industry today is on the limit of going into another period where it will accept more noteworthy accountability in making the country independent in Defense Production. The resurgence of India's assembling area has been momentous. Not exclusively are the benefits taking off, the area is additionally making its essence felt abroad as numerous Indian firms are turning out to be transnational organizations.

The Indian assembling area is universally serious with global quality norms, proficiency and assembling offices. India is quick forming into an assembling centre for world enterprises needing to use the area's demonstrated abilities in item plan, reconfiguration and customization with imagination, guaranteed quality and worth expansion. India, likewise quick to fortify its own aeroplane business and has asked significant

weapon trading nations to move innovation to India.

The Indian Aerospace Industry is seeing an uncommon development. Hindustan Aeronautics Limited (HAL), which is completely possessed by the Government of India, is the head aviation organization in the country. HAL has assumed a significant part in the Defense flight of India through a plan, production and upgrade of warriors, coaches, helicopters, transport aeroplanes, motors, flying and framework gear.

HAL is currently positioned 34th in the rundown of the world's best 100 protection organizations.

HAL is a significant accomplice for the Space projects of the Indian Space Research Organization (ISRO) and makes constructions and congregations for the dispatch vehicles and satellites at its committed Aerospace Division in Bangalore.

The common avionics area in India is developing quickly. It has recorded yearly development of more than 41% in traveller traffic during over the most recent two years. Truth be told, it has contributed fundamentally to the development of a worldwide common avionics area. The fast development of common aeronautics has squeezed the current common flying foundation.

Thus, the push is currently on the modernization of air terminals, correspondences, route and observation frameworks for air traffic the executives, radars and offices for Maintenance Repair and Overhaul of aeroplane and sub frameworks.

There is subsequently tremendous potential and colossal freedoms for cooperation and making of joint endeavours in the aviation area in India for setting up Maintenance Repair Overhaul (MRO) offices for common and military aeroplane, update and support of air motors and creation of aeronautics, parts and frill both in the common and military avionics areas. Major worldwide

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aeronautics industry is as of now looking at the nearby market in India and exploring for rethinking aviation and protection items as India

is quick arising as a middle for designing and configuration administrations.

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ABOUT US The word “Kaizen”, where “Kai” = change, “Zen” = good, which signifies change for better. In its birth place 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 is applicable 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 the student community for the betterment of the future.

KORE – Kaizen’s Operations and Research Entity, one of our primary wings provides the students 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 Workshop. LAKSHYA, an initiative of KORE focuses on improving the readers 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.

K PAVAN KUMAR REDDY EDITOR IN CHIEF - KORE 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.

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