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Volume 13 | Issue 11 | May 2017 | `150

empowering engineering excellence

Skill &

Knowledge The Engines of


Vijay Kalra

Chief of Manufacturing Operations Auto Sector & CEO - Mahindra Vehicle Manufacturers Ltd


Development for a Strong Economy



Indian Context


Labour Welfare

Innovation: DMG MORI LASERTEC 65

May 2017 1





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Labor Welfare Myth or Reality?

Harping on the labor issues and labor welfare seems to be a been-theredone-that sort of topic. Yet a lot remains unsaid. India has one of the largest percentages of laborers divided in organized and unorganized sectors, public and private sectors or as skilled, unskilled and semi-skilled, categorically. Time and time again, questions have been raised over rights and remedies for Indian laborers; time and time again, rights and remedies have been violated and remote. Does that mean the labor scenario is all too bleak and one directional? Certainly not, our May issue seeks to bring out many such unsaid aspects of labor scenario in India through thought provoking articles and interviews on labour scenario in India. The cover story will give you a view of the labor welfare in the Indian context, role and impact of labor laws and social welfare schemes. Artificial intelligence and machine learning which are making rapid entry into industrial arena is expected to be a major challenge for manual workforce in future. But how and how soon? In his article Rajesh Angadi has focused on these implications of artificial intelligence on the manual workforce at the shop floor. The issue features interview of one of the finest and foremost technocrats from automotive industry, Mr. Vijay Kalra, Chief of Manufacturing Operations - Auto Sector & CEO – Mahindra Vehicle Manufacturers Ltd. It is heartening to know how the company regards its workforce – both white collars and blue collars employees – equally as partners in progress.


The scenario of contract laborers, who are often subjected to inequalities in wages and welfare, finds a different perspective in the article authored by Sanjeev Himachali. Contrary to the assumed notion, he analyses how the number of contract laborer will see upsurge particularly in India given its flurry projects and industrial growth through private and FDI routes; how with due diligence from the employers contract laborer can actually be benefitted in the best sense of the term.

4Rajesh Angadi, IT & IETS

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Indian laborers often come under scanner with their efficiency and output level, and are found lagging behind their global counter parts. For a country, which dreams of becoming the global manufacturing hub, the comparative results do not bore well. Mr. Venkitachalam V has highlighted areas where Indian laborers are actually lagging and how that can optimized and improved to empower Indian economy. Besides, the issue is also covering a special article on Industrial Gears and Motors industry along with other general columns on Learning Curve, Innovations and CSR. This May issue will not just give you a holistic view of the labor welfare scenario but also unleash pertinent labor issues related to changing industrial scenario. Do send your valuable feedbacks and suggestions to 5

CONTENTS #C OVE RSTO RY 08 Labour Welfare in the Indian Context


14 Will Al supersede manual workforce? 18 Contract Labour – Evolution, Benefits, and Risk 22 Workforce Development for a Strong Economy

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Indian Context Labour Welfare in India have primarily been driven more by industrial regulations and labour laws. However, the implementation of of such laws and regulations has not been equally effective across industries and regions. Also, labours in the unorganised sectors constitute a major portion of Indian labour workforce unlike developed economies, who have largely been away from social security and benefits. Reviewing labour welfare policies in the context changing socio-economic background, co-operative Arnab Mondal approach to effect labour welfare by the industries and government is the need of the hour.

Since independence labour welfare in India has primarily been based on labour laws. Under the Constitution of India, labour is a subject of concurrent list where both central and state governments have right to enact legislations and that resultant in to number of labour laws have been enacted catering to different aspects of labour.

such as provident fund, employees state insurance, gratuity, provision for payment of bonus, regulating the working conditions for workers.

Currently, there are over 150 state and central laws in India which govern various aspects of labour welfare ranging from occupational health, safety, employment, training of apprentices, fixation, review and revision of minimum wages, mode of payment of wages, payment of compensation to workmen on injuries or death or disablement, bonded labour, contract labour, women labour & child labour, resolution & adjudication of industrial disputes, provision of social security

Unorganised sectors and its labours, which constitute a major part of the labour force in India, have often been left out of the benefits as the laws were hardly designed to cover these segments.


But labour welfare has never been defined properly in the Indian context, which has rendered the labour welfare lack-luster and ineffective in cases where the legislations are not applicable.

However, India’s labour workforce has substantial value in India’s overall human resource or demographic dividends. And, setting aside the unionism and protests for labour welfare, prevalent in the pre-economic liberalization context,

There are over 150 state and central laws in India which govern various aspects of labour welfare including occupational health, safety, employment, etc.

May 2017

labour welfare measures are more cooperative and prudential initiatives. Let’s take a look at the framework for labour welfare in India and the areas to be improved. Labour & Labour Welfare The planning for labour welfare in India is guided, to major extent, by the labour market and existing labour employment structure. The situation of surplus labour, coupled with the employment of most of the workers in the unorganised segments of the economy, has given rise to unhealthy social practices like bonded labour, child labour and adverse working conditions faced by the migrant labour. One of the major concerns of the Government has been the improvement of labour welfare with increasing productivity and provision of a reasonable level of social security. Programmes towards skill formation and development, exchange of information on job opportunities, monitoring of working conditions, creation of industrial harmony through an infrastructure for healthy industrial relations and insurance against disease and unemployment for the workers and their families have been prioritized by the government as corner-stone for labour welfare. As the social, economic and political conditions keep changing, so does the context for labour welfare. The large share of labours being employed in small establishments and at casual status of employment, the strategy for benefiting the workforce in general has to be based

on an increase in productivity rather than on attempting labour welfare through a frame-work of multiple regulations. In case of public sector, a peculiar case arrives as the government acts both as an employer as well as an arbitrator in disputes. In such cases, a mutually acceptable third party arbitrator, independent of the government can be a welcome move. In a reversal of relative situation, the rate of expansion of employment in the private sector has been higher than in the public sector after the economic liberalization of 1991. The rate of growth in private sector organised employment during the period 1987-88 to 1993-94 was 1.18 per cent as compared to 1.00 per cent rate of growth in the public sector employment. The gains from economic growth accrue to the labour force from the expansion of all-round employment and an increase in the real output per worker. The labour market in India, being for the most part outside the regulatory frame-work, has adjusted itself without much strain to the process of reform of economic policies. In labour disputes, the settlement can be much faster if the rewards are linked with productivity improvement that comes from cost reduction and higher output. Changes in the work culture can sometimes bring in a much larger allround benefit than resistance to such changes. The services segment of the organised sector covering insurance,

finance, trade, communication, transport and a variety of public services concerning health and welfare, is the largest segment of organised workforce. The benefits from the reforms in trade and fiscal policy to the consumer depend very substantially on a more flexible structure of the firms in these industries. As envisaged in the Ninth Fiver-Year Plan, trade unions’ role is important for creating an environment that encourages linking of rewards to labour with productivity improvement in a more flexible structure of the firms that deliver such services. The forum of Indian Labour Conference, where the labour representatives, employers and the governments at states and centre mutually interact, can make useful contributions by guiding research focussed at labour productivity. Labour Laws The labour laws in India cover areas like industrial disputes, wages and minimum wages, security measures like Workmen’s Compensation Act, Equal Remuneration Act, Maternity Benefit Act, Child Labour Act, Factories Act, Mines Act, Contract Labour Act, Welfare Fund related legislation etc. Primarily, all these laws seek to create a safe work environment, provide the mechanism and the procedure to settle industrial disputes and ensure minimum wages, payment of provident fund, gratuity and bonus etc. besides other statutory benefits, to the worker. To make these laws more effective, these are to be reviewed in the context of the changes that occur in the conditions that govern employment and industrial relations. The economic reforms were aimed at correcting certain distortions and imbalances in the economy, to overcome the crises arising out of macro economic imbalances and to lay the foundation of an economic regime characterized by de-licensing, de-regulation and de-control, besides

As the majority of labour workforce is employed with in small establishments and at casual status of employment, the strategy for benefiting this section should focus on increase in productivity rather than on attempting labour welfare through a frame-work of multiple regulations. May 2017 9

removing all irritants and stumbling blocks to the production system in order to make it competitive on the one hand and to integrate the national economy with global economy on the other. Hence, radical changes have been made in the licensing system, in the mechanism governing import and export, in the foreign exchange regulations, and in the procedures for foreign direct investments. Accordingly, it is imperative to bring about changes in the labour laws. Displacement and retrenchment of labour force is a common phenomenon in the face of cost cutting measures. With this in mind, the National Renewal Fund has been created out of which payments are made to the workers who are voluntarily retiring and funds are also provided for retraining and redeployment of the retrenched workers. However, still the number receiving the benefit is high and steps should be taken so that the loss out of reform process is minimum for the labourers. Enforcement machinery in the states for labour laws is burdened with the sheer number of pending cases. Reduction in the number of labour laws from around 150 and devising a single labour code is necessary. During the Ninth Plan period, the Ministry of Labour plans to obviate such laws which are no longer needed, effect changes in the existing laws to remain in force, as required and revise the ones call for so. In India, labours in the unorganized sector particularly urban informal

The attempts at providing social security are targeted at the poor through special employment generation programmes and provision of free or heavily subsidised basic needs. sector, agricultural labour, migrant labour, women and child labour and poor landless workers who are poverty stricken hardly come under the purview of labour laws. One of the laws widely applicable to this vulnerable groups is The Minimum Wages Act, 1948 is primarily applicable to unorganised sector/sweated sector and empowers both central and state governments to fix/revise the minimum rates of wages in respect of scheduled employments under their respective jurisdiction. The minimum wages have been fixed at different levels by the different state governments. The National Commission on Labour (1969) was of the view that such a wage in the sense of uniform minimum

monetary remuneration for the country as a whole is neither feasible nor desirable. The 28th Indian Labour Conference (1985) also discussed the need for national minimum wage. It was felt that till such time the national minimum wage is feasible, it would be desirable to have regional minimum wage for which the central government may lay down the guidelines. In the 33rd session of the Standing Labour Committee, it was suggested that measures should be taken to evolve a uniform floor level minimum wage for all unorganised establishments. The need for so fixing and notifying minimum wages that no wage is fixed below Rs.35 per day was felt. It was also suggested to the state governments that the existing benefits should not be reduced and wherever the current level of minimum wages are more than Rs.35, they should be allowed to continue. The state governments were also requested to take measures to reduce inter-state and intra-state disparity in minimum wages. If properly enforced, rectification in minimum wages can offer greater potential for income transfers then special employment generation schemes. If minimum wages are properly enforced, it will reduce migration of population from rural areas to urban areas. Social Security of Labour Government has framed the current approach to provide social security to labours in the organized as well as unorganized sectors in the context of low recorded unemployment but high incidence poverty. The attempts at providing social security are targeted at the poor through special employment generation programmes on the one hand and provision of free or heavily subsidised basic needs like health, nutrition, housing and education on the other. However, there still exists gap between what is needed and what can be made available. The Employees State Insurance (ESI) scheme, for example, framed under the

Any scheme for extending benefit to the labours in the unorgansied sector should involve employer as identification of actual beneficiary is only possible with active involvement of employer. 10

May 2017

May 2017 11

The existence of child labour in hazardous industries is a grave problem in India. There is need to modify the existing National Child Labour Project. Employees State Insurance Act, 1948, provides for medical care and treatment, cash benefit during sickness, maternity, employment injury and pension for dependents on the death of the insured worker due to employment injury, besides meeting the expenditure on the funeral of an insured person. The scheme is not applicable to non-powerusing factories employing less than 20 persons now but efforts will be made to extend it to all factories employing 5 or more persons. A strong research and development effort is required to facilitate the extension of social protection to all sections of the working population. The existing welfare schemes of the unorganised sector which are widely scattered and fragmented should be integrated properly. Any scheme that has to benefit the working population in the unorganised sector has to be

employer-friendly. Identification of a prospective beneficiary is possible only with the active involvement of the employer. The purpose of the National Scheme of Social Security is to explore the most appropriate institutional mechanism for distributing among the working population, what has been earned by its labour, rather than financing the full cost of social security. A scheme of social security to the working population at a particular location can be effective only if the number of people who are to be reached through the scheme is manageable. The benefits of a uniform country-wide scheme cannot reach effectively all the locations. The requirements of the working population and resources that can be pooled from the workers, the employers and the state or national level institutions differ from place to place. Thus, the design of the efforts for providing social security should be promoted on a locationspecific basis. A few states in India, namely, Karnataka, Kerala and Tamil Nadu demonstrated the viability and potential of old age pension scheme. Some form of social assistance is also given to the workers in the unorganised sector. This could be considered by the other states. An effort at providing social security to the poor was initiated in the Eighth Five-Year Plan in the form of a National Social Assistance Programme (NSAP).

The programme comprises (i) Old Age Pension, (ii) Maternity Benefit and (iii) Family Benefit for the girl child in particular. This has been implemented mainly as a programme for the poor under the broad head ‘Poverty Alleviation in Rural Areas’. The Ninth Five-Year Plan, in addition to it seeks to extend the coverage of NSAP to the casual and the self-employed workers in informal sector both in the rural and the urban areas. The objective will be to cover the economically active population outside the organised sector. Such a scheme will have to have requisite contribution by local authorities and the state governments. Since the objective is to cover economically active population, the role of employers and the local authorities is crucial in identification of beneficiaries. Child Labour Issue The existence of child labour in hazardous industries is a grave problem in India. There is need to modify the existing National Child Labour Project. The Indian Constitution has relevant provisions to secure compulsory universal elementary education as well as labour protection for children. A major activity undertaken under this scheme is the establishment of special schools to provide nonformal education, vocational training, supplementary nutrition, stipend, health care etc. to children withdrawn from employment. Under the existing scheme, there are 76 such projects throughout India to will help the working children and the children who do not have any access to the formal schools because of parental poverty. Parental poverty and higher birth rate in 1970s were and still are responsible for a large number of children joining work force at an early age. This scheme is aimed at taking care, though partially, of the existing child labour problem and will be supplemented by schemes like universal education etc. run by other departments. Parental poverty and high birth rate is one of the major reasons for child labour problem even after so many years of independence.


May 2017

May 2017 13


Will AI

Supersede Manual

Workforce? Rajesh Angadi

Artificial Intelligence and Machine Learning are two key areas which will transform the society and economy in future. Based on the guided training and in supervised contexts by human beings today, Machine Learning and AI may well become challenge for the manual workforce, if not completely replacing the latter. Bracing up for a future work environment driven by these two aspects is the need of the hour.

The discipline of machine learning fell out of favor for decades (much like artificial intelligence) but with data mining taking off just before the end of the last century, there was a need for algorithms to look for patterns in each dataset. Machine learning does this but goes one step further and learns from the process, improving performance as it goes along. Another thing machine learning has been used for is image recognition.

system can then look at the pixels and work out if a picture is that of a dog, a house, flower or a person. Machine learning is also used in recommendation engines. These algorithms help Facebook decide what to show in a newsfeed, or determine what products Amazon advertises. Enterprises are now turning to machine learning to drive predictive analytics, as big data analysis becomes increasingly widespread.

These applications are initially trained by humans to look at images and then describe what they are. After thousands or millions of images are used in training, the machine learning

The association with statistics, data mining and predictive analysis has become dominant enough for some to argue that machine learning is a separate field from AI. The reason for this


is that AI technology such as natural language processing or automated reasoning can be done without having the capability for machine learning. It is not always necessary for machine learning systems to have other features of AI. Machine learning will be (or perhaps already is) such an important part of software engineering that everyone will have to understand where it fits in. But just like, say, database administration or user interface design, that doesn’t mean every engineer will have to be an expert in doing machine learning—it will be acceptable to work with others who are expert. But the more you know about

Enterprises are now turning to machine learning to drive predictive analytics, as big data analysis becomes increasingly widespread.

May 2017

machine learning, the better you will be at architecting a solution. It will be important for machine learning experts and software engineers to come together to develop best practices for software development of machine learning systems. Currently we have a software testing regime where you define unit tests with calls to methods like assertTrue or assertEquals. We will need new testing processes that involve running experiments, analyzing the results, comparing today’s results to past results to look for drift, deciding if the drift is random variation or non-stationarity of the data, etc. This is a great area for software engineers and machine learning people to work together to build something new and better. Artificial Intelligence There are hundreds of use cases for AI, and more are becoming apparent as companies adopt artificial intelligence to tackle business challenges. One of the most popular AI uses today is in voice assistants. Microsoft Cortana, Siri,

Google Assistant and Amazon Alexa are all central to smart home and smartphones, where users can book lunch meetings via chatbots, or control their home lighting by speaking to a voice assistant. But Alexa is now the frontend for another industry chatbot, Davis, which allows IT admins to identify and fix issues with their IT infrastructure. There are other terms associated with the subject. Artificial neural nets are designed to process information in a similar way to the brain. But things get complicated here as artificial neural nets are also quite good at machine learning. Such neural networks form the basis of deep learning, which itself is a form of machine learning. These pool sets of machine learning algorithms, using hundreds or thousands of GPUs to process lots of data at once. Machine learning, which is another term has become one of the most talked about sub-areas of AI in recent times. Coined in 1959 by technology pioneer Arthur Samuel, it denotes computers that have the ability to learn new things without being explicitly programmed by

a developer. This sphere of technology originally evolved from academic areas such as computational learning theory and pattern recognition, although it’s beginning to enter new contexts. The main concept of machine learning is that computer algorithms and programs self-learn and adapt when they identify new data. Such systems are similar in design and ability to the process of data mining. They’re exposed to a batch of data and analyze it for certain patterns. But while data mining applications focus on human comprehension, machine learning is used to find complex patterns within data sets and to self-adjust. A prime example of machine learning is in the context of Facebook. Over the last few years, the social network has adopted machine learning algorithms to tailor the News Feed to the interests of users. It sounds pretty complex, but actually, the system Facebook uses is relatively simple. The Mathematics of Machine Learning Recently, there has been an upsurge in the availability of many easy-to-use machine

and deep learning packages such as scikit-learn, Weka, Tensorflow etc. Machine Learning theory is a field that intersects statistical, probabilistic, computer science and algorithmic aspects arising from learning iteratively from data and finding hidden insights which can be used to build intelligent applications. Despite the immense possibilities of Machine and Deep Learning, a thorough mathematical understanding of many of these techniques is necessary for a good grasp of the inner workings of the algorithms and getting good results. There are many reasons why the mathematics of Machine Learning is important and we will highlight some of them below: 1. Selecting the right algorithm which includes giving considerations to accuracy, training time, model complexity, number of parameters and number of features. 2. Choosing parameter settings and validation strategies. 3. Identifying underfitting and overfitting by understanding the Bias-Variance tradeoff. 4. Estimating the right confidence interval and uncertainty. The main question when trying to understand an interdisciplinary field such as Machine Learning is the amount of mathematics necessary and the level of maths needed to understand these techniques. The answer to this question is multidimensional and

Artificial neural nets are designed to process information in a similar way to the brain. May 2017 15

depends on the level and interest of the individual. Research in mathematical formulations and theoretical advancement of Machine Learning is ongoing and some researchers are working on more advance techniques. There will be the minimum level of mathematics needed to be a Machine Learning Scientist/Engineer and the importance of each mathematical concept. Linear Algebra- In ML, Linear Algebra comes up everywhere. Topics such as Principal Component Analysis (PCA), Singular Value Decomposition (SVD), Eigendecomposition of a matrix, LU Decomposition, QR Decomposition/ Factorization, Symmetric Matrices, Orthogonalization & Orthonormalization, Matrix Operations, Projections, Eigenvalues & Eigenvectors, Vector Spaces and Norms are needed for understanding the optimization methods used for machine learning. The amazing thing about Linear Algebra is that there are so many online resources. Probability Theory and Statistics- Machine Learning and Statistics aren’t very different fields. Actually, someone recently defined

Machine Learning as ‘doing statistics on a Mac’. Some of the fundamental Statistical and Probability Theory needed for ML are Combinatorics, Probability Rules & Axioms, Bayes’ Theorem, Random Variables, Variance and Expectation, Conditional and Joint Distributions, Standard Distributions (Bernoulli, Binomial, Multinomial, Uniform and Gaussian), Moment Generating Functions, Maximum Likelihood Estimation (MLE), Prior and Posterior, Maximum a Posteriori Estimation (MAP) and Sampling Methods. Multivariate Calculus- Some of the necessary topics include Differential and Integral Calculus, Partial Derivatives, Vector-Values Functions, Directional Gradient, Hessian, Jacobian, Laplacian and Lagragian Distribution. Algorithms and Complex Optimizations- This is important for understanding the computational efficiency and scalability of our Machine Learning Algorithm and for exploiting sparsity in datasets. Knowledge of data structures (Binary Trees, Hashing, Heap, Stack etc), Dynamic Programming,

Randomized & Sublinear Algorithm, Graphs, Gradient/ Stochastic Descents and Primal-Dual methods are needed. There are three main categories of machine learning: supervised learning, unsupervised learning, and reinforcement learning. In supervised learning, each data point is labeled or associated with a category or value of interest. The goal of supervised learning is to study many labeled examples like these, and then to be able to make predictions about future data points. All of the algorithms in MicrosoftML are supervised learners except rxOneClassSvm() used for anomaly detection while in unsupervised learning, data points have no labels associated with them. Instead, the goal of an unsupervised learning algorithm is to organize the data in some way or to describe its structure. Only the rxOneClassSvm() algorithm used for anomaly detection is an unsupervised learner. In supervised contexts, machine learning applications can draw on actions made

in past data to make new decisions. Unsupervised machine learning concepts are different in that they’ll identify interferences found in datasheets and make self-learning actions based on them. Reinforcement learning has evolved as another pioneering area in machine learning, which categorizes AI applications based on how they interact in environments where there’s a specific goal. Examples of this include self-driving cars and computer systems that play competitive games against human opponents. These applications usually specialize in problem-solving, and they can improve by being exposed to feedback. That could be anything from rewards to punishments. Artificial intelligence already plays a major role in human economies and societies, and it will play an even bigger role in the coming years. To ponder the future of AI is thus to acknowledge that the future is AI. This will be partly owing to advances in “deep learning,” which uses multi-layer neural networks that were first theorized in the 1980s. With today’s greater computing power and storage, deep learning is now a practical possibility, and a deep-learning application gained worldwide attention in 2016 by beating the world champion in Go. Commercial enterprises and governments alike hope to adapt the technology to find useful patterns in “Big Data” of all kinds. Artificial Intelligence as a Mainstream Threat It seems every day there are dozen articles on the impact of artificial intelligence on our jobs. Why might that be? Robots are coming - run or learn!


May 2017

Because it’s happening now, it’s already begun. This isn’t a story like how one third of all manufacturing jobs were lost in the last few years in the U.S. We already know what robot factories and 3D-printing is going to do to the future of manufacturing and later, retail and commerce. In the short-term we already know the numbers we’re looking at in terms of job losses due to automation. Over 5 million drivers and over 8 million retail associates in the U.S. yet that’s just the first wave. That’s just two sectors, that’s 13 million jobs. There will be creation of new jobs, but not at the rate that meets supply and demand. There will be casualties. •Robots are inManufacturing •Robots are in Healthcare. •Future of work is our opportunity to be human. •The Insurance auto-sector is like to lose $ billions of dollars due to autonomous vehicles. •The smart-home will be the new hospital. The 2nd wave after logistics, retail, finance and customer service, will likely be healthcare and education. Understanding How Humans Work Almost every human job requires us to perform some combination of the following four basic types of tasks: • Manual repetitive (predictable) • Manual nonrepetitive (not predictable) • Cognitive repetitive (predictable) • Cognitive nonrepetitive (not predictable) For example, an assembly line worker performs mostly manual repetitive May 2017

tasks which, depending on complexity and a cost/ benefit analysis, can be automated. A CEO of a major multinational conglomerate performs mostly cognitive nonrepetitive tasks which are much harder to automate. So, the trucking and taxi industries are in for a big shakeup; c-suite corporate management, not so much. At some level, every job can (and will) be done by machine. It is not a question of if; it is just a question of when. We are going to push back now and tell how different humans are from machines and how long it will actually take for all of this to happen. There are some jobs that will be exceptionally difficult for AI to do subjectively better than humans. This is not an arbitrary list. Each of the following jobs requires a unique combination of human intuition, reasoning, empathy and emotion, which is why it will be difficult for an AI system to train for them. If you’re wondering where your job sits on the list of “Run for your life, the robots are coming,” you have a simple, singular mission. Learn how your job is going to be automated. Learn everything you can about what your job will evolve into and become the very best man-machine partner you can. It’s the best way to prepare yourself for the advent of AI. Lastly, don’t wait. Everyone will tell you that none of this is happening anytime soon. They are flat wrong. But even if they are right, there’s no harm in being better prepared for an inevitable future. Rajesh Angadi completed his BE, MBA, PMP and is Hadoop Certified. With 22 years of Information Technology experience he worked on projects for Unisys, Intel, Satyam, Microsoft, Ford, Hartford, Compaq, and Princeton.




Evolution, Benefits and Risk Sanjeev Himachali

Contract labour primarily made its way into India with opening up of Indian economy to the private and foreign companies after economic liberalization. The employment of contract labour increased as it attracted employers for less responsibility, less hassles and more choices, though questions on occupational safety, standard wages and job security have been raised since then. With India becoming a preferred investment and expansion location for private and foreign companies, while employment of contract labour cannot be avoided, their performance, output and benefits can certainly be increased with due deliberation by the employer.

Based on employer-employee relationship, the workforce can be classified as – direct and indirect. The direct workforce includes employees who are listed on the payroll of the organization. In the context of manufacturing industry, they can further be classified into the blue-collar and the white-collar employees. Whereas, indirect workforce usually called as contractual workforce or freelancers or consultants, do not exist on the payroll of the principal employer. They exist on the payroll of a contractor (in the case of manufacturing companies) or a staffing company (in the case of non-manufacturing companies) or they sign independent contracts with the principal employer as an individual (in the case of freelancers and consultants). The key differentiators between direct and indirect workforces are – relationship between principal 18

employer and workforce, duration of relationship and liability of principal employers towards workforce. In this article, we will discuss about Contract Labour as defined in Section 2(b) of the Contract Labour (Regulation and Abolition) Act, 1970. Section 2(b) of the Contract Labour (Regulation and Abolition) Act, 1970 says, “A workman shall be deemed to be employed as “contract labour” in connection with the work of an establishment when he is hired in or in connection with such work by or through a contractor, with or without the knowledge of the principal employer. The expression “employed in or in connection with the work of the establishment” does not mean that the operation assigned to the workman must be a part of, or incidental to, the work performed by the principal employer. Further, workers employed by a licensee for own benefits are not considered as contract labourers. Similarly, a permanent employee of

the contractor who could be placed at different establishments at the choice of the contractor is not called as a contract labourer. Before we proceed further with contractual labour and the need for creating this segment of workforce and surge in contractual labour since 1990 onwards, let me quickly touch upon the industrial revolution in India followed by the emergence of Trade Unions and their political affiliation, which resulted in restricted industrial and economic growth. The setting up of textiles and jute mills and creation of the railway network since 1850 paved the way for that emergence of industrial activity and, in turn, the labour movement in India. The era was dominated by capitalists, who used to get the work done at least possible cost under poor work conditions. The first labour agitation started in Bombay in 1875 to protect May 2017

against the appalling conditions of workers in factories. The first trade union in India, the Bombay Mill Hands Association, was founded in 1890 by Narayan Meghaji Lokhande, who is said to be a pioneer of the labour movement in India. Between 1918 and 1924, the political scenario characterized by the home-rule movement and the martial law in Punjab made the politicians to recognize the workers’ movement as an asset to their cause. At the same time, workers also needed able guidance and leadership from the politicians to settle their grievances with the employers. With increasing hardships of workers, the signs of militant tendencies and revolutionary approach in trade unionism got expression into violent strikes since 1924. Trade Union Act was passed in 1926. The partnership between Trade Unions and the Government resulted in the passage of various Acts for the welfare of employees, such as, Industrial Dispute Act 1947; Factories Act 1948; ESI Act 1948; Minimum Wage Act 1948; Provident Fund and Miscellaneous Provisions Act, 1952; Maternity Benefit Act 1961; Bonus Act 1965; Gratuity Act 1972, just to name a few.

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The period from 1947 to 1990 was also marred by several thousands of strikes across India, which resulted in loss of productivity, loss of lives, violence, limited economic growth of the country, limited inflow of Foreign Direct Investment, chasing away of Indian industrialists to foreign shores, hesitation of foreign industrialists from setting up their plants in India and many such losses. There have also been incidents to members of trade unions abusing, assaulting, and murdering representatives of management and damaging the property of organizations to make their “unauthorized and unfeasible” demands fulfilled. Among few recent cases of violence by Trade Unions, I could recollect the following incidents – 1. Angry workers beat to death a human resources vice president after he laid off 42 employees at autoparts manufacturing company, Pricol, in southern India. Some four to five workers, belonging to a union not recognized by the company, barged into his office and beat him up with iron rods. [2009]

2. A group of workers attacked and killed a 45-year-old HR manager at Allied Nippon, a joint Indo-Japanese venture that manufactures brakes and brake shoes for cars. [2010] 3. A mob tore through the plant in Haryana owned by India’s largest car manufacturer, Maruti Suzuki, smashing property and setting parts of the factory on fire. HR Manager, Awanish Kumar Dev was burned to death. [2012] The period following the Economic liberalization in 1991 was characterized by declining government intervention in the economy, a decline in the creation of public sector employment due to disinvestment and encouragement for the private sector. Efforts for unionization in the private sectors were often met with opposition and the wider general withdrawal of State support for workers further undermined their bargaining power. These policies led to stagnation in the number of unionized formal sector workers. Contract labour is required to let the show go on in an industrial set-up which is terrorized by unionization of the workforce. In the era of globalization, the need 19

for contract labour is much more than ever before in the entire history of industrial evolution. Contract Labour, which is a significant and growing form of employment, has its origin traced back to the emergence of the small scale industries which found it economically unfeasible or unviable to undertake all activities of production process themselves and therefore got some part of work done by workers hired through contractors. The contract labour system is based on the triangular relationship between the user enterprises, the contractors including the subcontractors as a middle man, and the worker. The workers are recruited by an outside agency or person and are supplied to an establishment or engaged on its work. Unlike direct labour, they neither feature on the muster roll of principal employer/ establishment nor are paid directly. The contract workers generally belong to the unorganized sector as they lack bargaining power, have little or no social security and are often engaged in hazardous occupations which could endanger their health and safety. They often have little or no security of employment. However, factors like lack of continuity of work, difficulty in ensuring closer supervision by the employer, higher output or productivity of such workers, cost effectiveness, flexibility in manpower deployment, facilitation for focusing on core competencies, etc., constitute advantages of the system of contract labour. Contract Workers - Risk Factors for Principal Employers 1. Training cost – Contract workers are usually unskilled or semi-skilled. The organization must spend 60-90 minutes every day to give safety and production training. There is no certainty if the worker who is given training on one day will return to work the following day. Assigning work without safety training is a big risk. If anything happens to him at the workplace, the responsibility will be on the principal employer. 2. The risk of the unknown – Usually, contract workers are migrants from other cities and states. Principal employers, as a rule, do not conduct any kind of background verification for contract workers. They rely on the contractor for every such thing. Therefore, the principal employer runs a risk of hiring a criminal, terrorist, thief, etc. 3. Ultimate responsibility – Though 20

principal employer is not hiring contract worker directly, he has ultimate responsibility from the time a contract worker walks-in to the time he leaves the office premises. The principal employer must ensure payment of same wages, holidays, hours of work and conditions of services to contracting workers as are applicable to employees employed by him on the same or similar kind of work. Contract Workers – Benefits to Principal Employers 1. No Work, No Salary – Principal employer need to pay only for the hours of work done by the contract worker. He doesn’t need to pay for the days when contract worker didn’t report for the work or the days when he had no work to be given. 2.Pay for performance – In case the contractor supplies a sub-standard worker, the principal employer can choose to discontinue him or ask for a replacement at no extra cost and with seeking any approval from the Government, which is a case with a full-time unionized worker. There is a saying, “In India, it is easy to terminate an employment of the CEO of an organization but no organization can terminate the employment of a bluecollared unionized worker. 3. Limited Liability – The primary liability of contract workers is on the contractor. In case, the contractor fails to fulfil his responsibility, the principal employer can fill in for a contractor and then deduct from the payments of the contractor. Contract Workers – Risks They Face 1. No job security – It is one of the biggest risks. The principal employer can stop or terminate the employment without giving any notice. This can be a difficult situation for a worker with family obligations. 2. No retirement benefits – They can work only as long as they are fit to work. Once they stop working they will stop getting any kind of income. 3. Getting bullied and abused by full-time unionized workers - A good, regular and performing contract worker often get bullied by a full-time unionized worker and often asked to stop coming to the factory. They get abused and sometimes, assaulted. 4. No forum to address their grievances – Contract workers cannot have grievances, if they have, they must not air it, for there is no forum to listen to them. If they share it with the principal

employer, he can discontinue their services and if they share it with Trade Unions, they can still be terminated from services, as they are not full-time employees of the principal employer. Contract Workers – Benefits They Drive 1. Rewards, Recognition, and Growth – A skilled, high performing contract employee usually get rewarded for his good performance. The principal employer will not only retain him but will also refer him to other employers, in case he doesn’t have enough work. 2. Job Change – A contract worker can change his job, and can change it as many times if he is not happy with the work and workplace environment. The good thing is that he doesn’t need to take permission before leaving the job. 3. Family First – In a unionized environment, if the office bearers decide to go for a strike or start an agitation, as a member of the union, one must support it, even if you don’t agree with the cause and even if your family conditions are such that you need a job at any cost. In case, of contract workers, there is no such obligation. Even if the company shuts down, they can still get a job elsewhere. Many workers have become jobless, and worst they have been labelled as criminals just because they supported the union agitation. Having said this, I understand that though employment of contract labour in India has attracted debates, it has become a significant and growing form of employment, engaged in different occupations including skilled, semiskilled and unskilled jobs across sectors, whether white-collar or blue-collar. Contract labours are engaged to make the processes simpler with the intention to manage the workforce in an easier way. However, lack of due diligence can land companies into troubles. Though engaging contract labours should always be done by way of executing a contract with the contractor, exercising due diligence would be of great significance as contractual safeguards may not offer sufficient protection to principal employers. Sanjeev Himachali is a Talent Management and Development professional with over a decade and a half years of experience in various facets of Human Resource Management across various industries, cultures, and geographies. He helps start-ups, smallsized and mid-sized organisations in identifying and developing potential and competencies of their employees. May 2017











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Pioneer in Material Handling & Automation Products & Innovations CoreProducts Products Core

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Development for a Strong Economy Venkitachalam V

Industrial relations

Majority of labours in the unoraganised sector, outdated machines and technology at the factory and the resultant lack of efficiency and competitiveness, child labour in hazardous industries at the age of schoolgoing, poor health & safety measures, lack of skill traning & skilled labours, unionism with political affiliations sans on focus labour welfare, low wages and lack of living standards – all these are stark realties from India’s labour scenario. Government, industry, third party benefactors, labours all must take corrective measures through concerted effort to build a strong, welleducated and motivated workforce for a globally competitive economy.

For any business, the workforce is a valuable asset, and a sound workermanagement relationship is a key ingredient to the long-term sustainability of the enterprise. Failure to establish and foster a sound worker-management relationship can undermine worker commitment and retention, result in labour strikes, and can jeopardize a client’s/investee’s operations.,

The unorganised sector has low productivity and offers lower wages. Labour policies are devised to maintain economic development, social justice, industrial harmony and welfare of labour in the country. India faces the serious challenge of finding jobs for a growing population. India’s challenge of providing remunerative employment is also more complex because of its large informal sector; this accounts for 84% of current jobs.

Majority of Indian employers are facing challenges in attracting and retaining top performing and high potential employees. Over 94 percent of India’s working population is part of the unorganised sector.

Indian labour is not regarded as very efficient. His productive capacity is low as compared with the European, the American and the Japanese labour. For less efficiency, Indian labourers alone are not to be held


responsible because Indian workers lack education and the climatic conditions in which they normally do work is un-favourable. Child labour and forced labour Education is our greatest opportunity to give an irrevocable gift to the next generation A 2015 report by the International Labour Organization put the number of child workers in India, aged between 5 to 17, at 5.7 million. UNICEF estimates that there are 28 million child labourers in India. More than half of India’s child workers are employed in

Majority of Indian employers are facing challenges in attracting and retaining top performing and high potential employees.

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agriculture and more than a quarter in manufacturing - embroidering clothes, weaving carpets, making matchsticks or fireworks industry. Children also work in restaurants, shops and hotels and as domestic workers. It is the moral duty of every citizen of the country to ensure that the childhood of our children is protected and not marred with instances like that of child labour which arise out of poverty and helplessness. Abolition of child trafficking, elimination of poverty, free and compulsory education, and basic standards of living can reduce the problem to a great extent. Strict implementation of labour laws is also essential in order to prevent exploitation by companies. Workplace Safety – The workplace quality affects attitudes and increases productivity Workplace safety is important. Implementing an effective safety program for the workplace is one of the best decisions a company

can make for its workers. A safe work environment produces happier employees. India has a very poor health and safety record. Many legislations exist to protect workers’ rights and health but they are not implemented properly. It is unlikely that things will improve unless workers participate in the process. Even though the Factories Act specifies worker participation in safety management and safety committee membership, in most cases such committees exist only on paper. Majority of the industries in India are using old and obsolete machines. The effect of which is that inspite of hard work, workers are not in a position to produce what is required. Lack of modern machines and low levels of automation decreases efficiency of workers. A mismatch exists between industry demands for skilled labour and current development programs. India must improve the skills of the existing and future workforce by increasing the capacity of skills

training providers while simultaneously making programs more employeedriven to ensure higher quality, more appropriate training at scale.

create a win-win situation, particularly in trying economic times

Workers’ organizations

Indian workers’ standard of living is very low because they are paid low wages and this often leads to low efficiency. Rising wage inequalities are closely linked to education levels of workers. Appropriate wages may be fixed for them to have better living conditions. In order to improve the efficiency of our labour, it will be better if we impart them general and technical education. Modern and upto-date machinery, tools and proper materials should be provided. Summary

Where permitted by law, employees should be granted the right to associate freely and to bargain collectively, by forming and joining workers’ organizations. A serious defect of the trade union movement in India is that the leadership has been provided by outsiders especially politicians. Leaders being affiliated to one or the other party, the unions are more engrossed in toeing the lines of their political leaders than protecting workers’ interests. Multiplicity of trade unions, political rivalries, lack of resources, disunity in the ranks of workers etc., are some of the major weaknesses of the unions. Workers have to be educated so that their union members and leadership come to the table with reasonable requests and

Wages – Equal work deserves equal pay!!

The workers should be treated as human beings and not as the property or the slaves of the capitalists. If we take corrective measures then the efficiency of Indian labour is bound to go up and the production will increase. By using a collaborative approach NGOs, government, and the private sector can work together to improve India’s future competitiveness. Only through coordinated efforts will the skilled labour supply-demand gap be closed at a systemic level and ultimately improve India’s competitiveness. Workforce development contributes to India’s overall economic growth and global competitiveness of India and will lead to poverty reduction, Finally, the people at the bottom are the ones who get us to the top. Treat them with respect. Employees working on an assembly line of Honda Motorcycle & Scooter India.

May 2017 23


Skill &

Knowledge The Engines

of Growth!

Mahindra & Mahindra – Automotive Division has been time and again rated as one of the best manufacturing companies to work for. According to Mr. Vijay Kalra, this is a result of the engaging ecosystem that the Company creates for its employees. He says that a business cannot grow without the right people, for a manufacturing set up, success lies with a skilled workforce and world class automation. In conversation with MART, Mr. Vijay Kalra elaborately talks about the workforce and policies surrounding them. The zeal in his eyes and the zest in his words reflect his deep dedication for his work, great respect for his people, and the admiration for his company.

Vijay Kalra Chief of Manufacturing Operations Auto Sector & CEO - Mahindra Vehicle Manufacturers Ltd


May 2017

Mahindra & Mahindra – Automotive Division has been featured in many reviews and ratings many times as one of the best manufacturing companies in India to work for. How has the company managed to hold its position as such over the years? There are multiple factors which need to come together to create a company like Mahindra, which we are very proud of. If one must point out most important factor, then I will say, it is our “people”. Take an example, if we get the best facilities, technology, professionals from great institutes, “will the company be Great?”, I feel the answer would be “Not necessarily.” Answer to your question is that it is our ability to get best out of all employees (White & blue collar) by imbibing our core values like Dignity of individual, Professionalism & good corporate citizenship on continuous basis differentiates us from many others. What is the total workforce of Mahindra & Mahindra

May 2017

Automotive Divisions in India as well as globally? What kind of growth can we see in your workforce as manufacturing sector, especially as automotive sector, gears up for ‘Make in India’ program? At Mahindra & Mahindra’s Automotive Division we are a 20,000 blue-collar and a 5,000 white-collar strong workforce. Globally we have over 2 million people working directly with Mahindra & Mahindra. And these numbers will grow, the ‘Make in India’ mission will fuel these numbers not only in our company but in the overall Manufacturing Industry. And we are proud that at Mahindra, we are committed to imparting the required skills and providing the required capability building tools to all our workforce as well as ensuring that at our Vendors / Supplier end to the workforce is at par with best practices, required skill set and overall empowered individuals. Contract labor segment in India is vast, given its cheap availability and hassle-free employment responsibility

If we get the best facilities, technology, professionals from great institutes, “will the company be Great?”, I feel the answer would be “Not Necessarily.” for an employer. However, lack of job security, occupational safety and benefits are sought as persisting issues for this segment. As an industry veteran, how do you the see contract labor scenario in the country? What is the current employment method followed at your division? The outlook towards Contract manpower has been changing across industries for the better. Employers are becoming more responsible and the line between permanent and contract employees is becoming blur. Gap in salaries are being bridged, employee benefits are being extended to all members

and I can only pray that in time we become a progressive society that sees no differences. Ultimately, there is one world, one economy and every member associated with you, is your stakeholder. At Mahindra, we consider contract manpower as flexible manpower and not a substitute for a regular job or as a low cost labour option. As a matter of principle, we do not engage a contract manpower for a core continuous activity. All contract manpower is engaged in allied or support functions that are regulated by business demands. However, when one enters the gates, each one is equipped with proper health and safety training along with Best Practices Training 25

Ultimately, there is one world, one economy and every member associated with you, is your stakeholder.

before they start any job. Our employee welfare and safety measures are beyond the mere requirements of Law. You have over three decades of experience with leading organizations as well i.e. Ashok Leyland, Mls Claas India, DCM Toyota, Toyota Motor Corp., Daewoo motors Ltd. and General Motors. In terms skill set, what kind of gap do you notice in Indian laborers vis-à-vis their global counterparts in the automotive sector? The only gap between us and our global counterparts in general is our outlook. While in India there is a huge gap in compensation and thought between a white-collar and bluecollar, outside there is hardly any difference in social standing. Abroad, a blue-collar employee can earn as much as the highest paid white collar employee, it all depends on his job description, value to the organization. Two industrialized worlds exists, one world values skills and the other one does not, in India many organizations


fall in the latter category. We do not pay for value, we pay for knowledge, we do not pay for delivery, we pay for potential. Delivery does not come from knowledge alone, it comes from knowledge and experience which results in skill. There is no difference in the skills of an Indian employee vis-à-vis our foreign counterparts, but there still exists a difference in the way the skills are respected and valued. Some blue-collar workmen earn and command a lot of respect in their companies and countries, and make a lot of money because their skills are valued, we need to extend a similar kind of respect and value for skilled workforce, if and when we do there will be change in our country. While engineers plan the last point connectivity and tying the knot is done by the associates. Though the dreams are sown by engineers they are turned into reality by the associates. The manufacturing companies prefer engineering diploma holders/engineers instead of skilled laborers as the former can play multiple roles such as designing and planning. How do you see this making impact on regular labor employment? At Mahindra Auto Sector, we don’t engage any Diploma Engineer or Graduate Engineer as Associates. The Diploma holders are not on machines, they have white collar jobs. Most of our shop-floor workforce are ITI certificate holders, most of whom passed out with distinction. They are no less than anyone when it comes to skill. I believe that skills and

knowledge are the engines of economic growth and social development of any country. Countries with higher and better levels of knowledge and skills respond more effectively and promptly to challenges and opportunities of globalization. India is in transition to a knowledge based economy and its competitive edge will be determined by the abilities of its people to create, share and use knowledge more effectively. This transition will require India to develop skilled workers into knowledge workers who will be more agile, flexible, analytical, adaptable and multi-faceted. In the new knowledge economy the skill sets will also include behavioral, inter personal and inter functional skills. To achieve this goals, we at Mahindra have initiated many interventions and learning modules to develop our associates for the ongoing and upcoming challenges and remain competitive and employable. We have joined forces and signed PPP with ITIs to upgrade and curriculum and learning modules and equipment. These ITIs are assigned mentors to help them grow. We also have promotional programs to encourage further education amongst our associates. Machine Learning and Artificial Intelligence are still in initial phase in Indian manufacturing. When do you expect these trends to fully come into play? Also, to what extent our laborers and their interest will be compromised with implementation of Machine Learning and Artificial Intelligence?

an ape like civilization and all we see around probably never existed as far back as 20 years ago. What we have around us today is a product of human intelligence and it will so continue. Automation provides a way to expand intelligence along various dimensions, in the same way that cranes allow us to carry a hundred tons or airplanes transport us at hundreds of miles per hour or telescopes allow us to see things trillions of miles away. Although, advancement of machine learning and artificial intelligence is a big worry for a lay industry man such as me, I am certain that ‘artificial intelligence’ will always need ‘human interface’. For example, in a Body Shop earlier welding was done manually till we got it on the line and automated, but we still need the quality checked something that the roller hemming cannot do on

India is in transition to a knowledge based economy and its competitive edge will be determined by the abilities of its people to create, share and use knowledge more effectively.

Humans have evolved from

May 2017


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TECHNOLOGY SOLUTIONS Our technology centres – Overall technological and industrial expertise including additive manufacturing.


Capability Building has always been a key focus area for Mahindra & Mahindra

its own. When companies automate manufacturing lines, yes it reduces at least 20% of manpower, but then again, these are companies that are expanding and therefore still need that 20% manpower for their newer operations. Machines cannot replace Man 100%, while we do have Google’s Driverless Car, we also need a man hundred to build, create, and manufacture those cars. Jobs or rather Trades may become irrelevant but man is capable like in the civilization that came before us, to ‘evolve’. Besides, automation comes at a premium, and as a Country we have a lot of time to catch up. When the cost of labor and the cost of machine is balanced the cost of affording the product would be beyond my imagination as of now! Artificial Intelligence will bring down jobs and companies will need to 28

‘Artificial Intelligence’ will always need ‘Human Interface’. adopt advance technology not because of economic need but due to the demand for quality. I believe that automation and machine learning if suitably designed will not only support each other but will accelerate the growth of any organization, any economy and eventually lead growth on a path for actualization of human values. We understand skill development of the laborers is a high priority area for a leading company

like Mahindra & Mahindra. Apart from roping in high skilled engineers as well as shop floor workers, do you run any other orientation or in-house training program? Capability Building has always been a key focus area for us. While we have structured programs like dexterity, functional training programs and workers’ education programs over the last few years we have focused on skill excellence through our Mahindra Skill Excellence (MSE) initiative. The idea is to deliver our promise on Quality Crusade and develop a proficient ‘automotive skilled eco system’ in the organization. MSE includes awards for various skills like Assembly Skills, Engine Diagnostic Skills, Painting Skills, CNC Skills, Welding Skills, etc. We also run number

of behavioral training interventions to create cohesive and inclusive work environment on the shop floor. In the arena of stiff competition, the overall development and skill enhancement shall be incomplete unless a holistic view is taken. Hence, we also focus on developing skills in our ITIs and our vendors. We run host of programs to hone in on the skill sets of our workforce and through the major flagship program, MSE we represented India in international forums. One of our associates, Mr. Sachin Narale won us the ‘Best of Nations Award’ in the prestigious World Skill Competition.Three and a half years back, I remember Dr. Goenka, President of Mahindra & Mahindra telling me “When it comes to world skill competitions, we don’t see a single Indian there, we don’t see the Indian flag!” I was worried then because getting into May 2017

such forums is not easy and a lot is at stake, but we got into it and today associates from Mahindra represent India at international levels. Also, now a personal achievement for me, is ‘females on the shop floor’. There is now a written rule that 33% of college graduates need to be female. Till about five years back, I would have never imagined we would have females on the shop floor, through our various Diversity program and commitments, we are now proud to say that having females on the shop-floor have answered many a skeptics question on developing proper ecosystem, ensuring no harassment, handling tough jobs. We started with around 30-40 females, a year back we had 100 and today we have 317 females working with us on the shop-floor. All our eight plants have female associates on the shop-floor doing exactly same jobs as anybody else, second to none. They are on assembly lines, welding, driving forklifts, and on security jobs. A proud moment was when two of our female forklift drivers, Ms. Sulbha Lad & Ms. Shubhangi Gaikwad were recognized by the President of India, Mr. Parnab Mukherjee. Another inspiring story is that of one of our shop-floor female who comes from Igatpuri and stood first in the Maharashtra State Fire Safety Competition competing with male counterparts. Another shop-floor female stood second at the CII Welding Competition. In time, I see all the numbers grow, there isn’t a single domain where women cannot carve a name for themselves. May 2017

Rise is a way of life for us at Mahindra and it revolves around three pillars Accepting No Limits, Driving Positive Change and Alternative Thinking. We have also instituted the Rise Awards that have become a part of ecosystem. How important is Industrial Relations from an employer’s point of view for the growth of the company? How effectively, do you think, labor welfare schemes have been implemented in the Indian manufacturing sector so far? The paycheck makes a difference the hour you get it, the ecosystem that leads you to it comes much after. We may not offer the highest pay packages in the country in part because of stiff automotive competition but if you look at the overall package, employee benefits and facilities there is a great deal that the Company offers its employees. Most importantly, Mahindra offers an ecosystem which engages with the employee empowering him / her and resulting in ‘a happy employee’. There was a time when we were managing Industrial Relations but now we have transitioned to Employee Relations (ER). The ER function takes care of all our associates just as the HR function does for

officers. Gone are the days of closed door negotiations, we have established a culture of transparency and openness. ER goes beyond the boundaries of the factory to involve the families of our associates in many of our engagement activities, thus establishing a strong family connect. Employee relations are very critical to foster industrial peace, improved productivity. Industrial peace and harmony can be achieved only when the goals of the employee are in tune with the goals of the company. The Government is also focusing on welfare of the workforce in India, striving towards a ‘Better Work Place for All’. The Government has taken several initiatives for promoting conducive industrial and business environment in the country to catalyze creation of employment opportunities while ensuring safety, health and social security of every worker. The recent Government Statutory Amendments not only aid better welfare facilities but also facilitate rapid industrialization. Interestingly, Mahindra sports a mantra ‘Rise’ with its brand name which the company says, it implements in all areas of operations, including human resource. Could you throw some light on how this mantra is applied to its workforce management? How does Mahindra help its workforce to ‘rise’ both professionally and socially? In this regard, please mention the labor welfare schemes supported by the company. Rise is a way of life for us at Mahindra and it revolves around three pillars - Accepting No Limits,

Driving Positive Change and Alternative Thinking. We have also instituted the Rise Awards that have become a part of ecosystem for employees that exhibit the rise values. At Mahindra, we are undertaking various steps to engage our associates, they include the Mahindra Skill Excellence Awards, Jagruti Assessment Awards, Vasundhara Award for Best Practices in Sustainability, Mahindra Safety Awards, EFI Award for Commitment to Employee Relations along with a host of cultural, sports and entertainment functions like the ‘Cultural Nite’ Event, ‘Mahindra’s Got Talent’ show and a number of personalized and team building programs like ‘Winning Spirit’, Engaging Talent to name just a few. In addition to the statutory and hygiene factors like canteen and transport facilities, we also have the Death Benevolent Fund, 24x7 Accident Coverage Insurance, Health and Wellness scheme for employees and their family members, Domestic and International Scholarships for Associate’s children and maybe a few more. We firmly believe in our Rise Pillars and together we strive for upliftment in the lives of all we touch. Even at our Farm Sector, we don’t only believe in selling tractors, rather ‘Farm Tech Prosperity’. We manufacture Tractors and Agriculture Implements, we provide Loans to small farmers, while improving the quality of their seeds and through a host of systematic Package of Best Practices ensure productive and efficient farming. Through our Rise Pillars we are forced to look at the entire Value Chain, positively impact the entire life of our stakeholders. 29



for Labour


India is a global benchmark among emerging market economies, thanks to its pace of growth and rapid economic transformation. The swift growth of recent years has enabled the country to notably improve its infrastructure and fuelled the expansion of Manoj Kabre its industry, trade and exports.

However, the dark side of India’s growth story is that over 13 million children are working as labourers. The rehabilitation and education of children involved in labour in India is without doubt crucial. The demographic statistics reveal that 35.3% of the population is below the age of 15. The future of India is in the hands of these children and hence there is an urgent need to address this challenge through focussing on their education and skill development. Corporates and civil societies are endeavouring to uphold the rights of children and promote education for them. Efforts are on to eliminate child labour in the supply chains or while sourcing through sub-contractors. But child labour is endemic in India and attempts to eradicate it need to be stepped up. Incorporating further affirmative actions through CSR and integrating it within the business strategy would benefit the corporations in the long run. (Courtesy : http://www. The changing profile of corporate ownership, increasing flow of foreign investment, reduction in government protection to corporates and the various international agreements on corporate governance standards has necessitated a new urgency to adopt CSR in India. 30

Practitioners of CSR worldwide stress that it is a cost effective way of gaining competitive advantage in terms of enhanced brand image, increased sales and customer loyalty and also an effective way of retaining employees. But most importantly corporates are securing a conscience, and rightly so. There is an increasing acceptance of the fact that there are several other factors that drive businesses beyond financial performance. Awareness regarding the responsibility of businesses towards social, environmental and governance issues is becoming very wide spread and their integration into business strategies is becoming a common place. CSR as is practised in India, is in an evolutionary stage. In the past, CSR initiatives adopted had a philanthropic approach, but in more recent times a stakeholder oriented model is witnessed. It is being increasingly realised by the people that the government alone cannot address all the issues facing the country; and the corporate sector with vast resources, financial, human, and technological or knowledge, has an important role to play in this regard. Partnerships are being established with an effort that should lead to the formation of an action plan with a well-defined strategy on how to engage with the stakeholders so as to completely eradicate child

labour in production processes, supply chains and also in subcontracting. Focus on skill development and education are becoming popular in this regard and leading to good solutions. A company’s commitment to sound labour practices, environmental stewardship and good community relations plays an influential role in how it is perceived by the public, especially in developed countries. The effect can also be seen, albeit to a lesser degree, in developing countries. Here are a few case studies being presented in this article related to focus on education, skill development in healthcare and other areas : 1. Johnson & Johnson 2. Tata Motors Manoj Kabre, Vice President of IndoMIM Pvt Ltd, has directed and headed the sales & marketing function for Asia and parts of Europe, spoke at various forums across the world for propagating the MIM technology. His laudable work includes, Chairing – CSR Committee of RBWC, Founding of CaN Trust (NGO), working for needy children. He is also on advisory committee of ‘Your Philanthropy Story’ (YPS) which captures stories through interviews of heroes and the cause they are associated with. May 2017

Healthcare & Empowerment Programme for Women by Johnson & Johnson As a leading healthcare company, Johnson & Johnson with its focus on health of women and children, partners with CINIASHA in Kolkata, with an aim to reach out to 93,500 women in the slums of the city, providing special emphasis on early registration of pregnancies, birth preparedness, institutional deliveries and post natal checkups for women for about 3 years for safe motherhood and reducing infant mortality rates. They are also provided knowledge and guidance about reproduction, sexual health right and services and schemes by the government for them.

at St. Joseph’s MPHW Training School, Nellore. The girls are selected for training based on merit and economic background and their course fees, accommodation, food, study materials, uniform and stationery are provided free of cost. On completion of the course, which is approved by the Indian Nursing Council, the girls are placed in village health programmes under the National Rural Health Mission (NRHM).

In another initiative, the company has formed long term partnership with Indian Academy of Pediatrics to train nurses to reduce infant mortality rate and challenges during neonatal period in India through education “Building Healthcare Capacity” is and training healthcare workers, another project which addresses the midwives and infant care providers on issues of women empowerment and prompt and skilled resuscitation. The healthcare in rural villages of India with a single initiative. The programme Neonatal Resuscitation Program (NRP) - First Golden Minute (FGM) Project supports 40 girls each year from rural addresses one such problem which is Maharashtra to study at the School of birth asphyxia. So far, 200,000 Skilled Nursing for Auxiliary Nurse Midwives Birth Attendants (SBAs) in neonatal (ANMs) at the Bel Air College of resuscitation techniques have been Nursing, Panchgani, and another 40 girls from rural Andhra Pradesh to study trained. Company: Johnson & Johnson Private Limited Contact: India Contributions Email:

Indian Academy of Pediatrics to train nurses to reduce infant mortality rate and challenges during neonatal period in India through education and training healthcare workers.

The girls are selected for training based on merit and economic background and are placed in village health programmes under the National Rural Health Mission (NRHM).

‘Vidyadhanam’ and ‘Tata Samarth Scholarship’ for Creating Educational Ecosystem & Empowerment With its educational ecosystem programme “Vidyadhanam” Tata Motors has touched upon the lives of more 5000 students, mentored and supported over 1000 scholars, with its 36 schools ensuring maximum reach of Sarva Sikshsa Aviyan to underprivileged and backward classes. Nikita from Amboli village in Maharashtra is an example who was enrolled in Adarsh Vidyalaya for the community, where currently, 2039 students study. She secured a scholarship from Tata Motors in Class – VIII and with mentorship and supportive materials from Tata Motors Volunteers scored 93% at Class – X Board Exams. For further education, Nikita joined the Cusrow Wadia Institute of Technology, where her education was sponsored by employee volunteers of Tata Motors. Tata Samarth Scholarship Programme is a mentorship based scholarship

programme initiated by Tata Motors and Tata Communications Limited, now joined by Tata Hendrickson. It is designed to support meritorious engineering students from economically weak and socially disadvantaged sections of the society. In addition to monetary support, the scholars also receive mentorship from senior leaders from Tata. Gautam, a meritorious engineering student at the College of Engineering Pune, found it difficult to continue his engineering course because of financial problem. He applied and was selected for the scholarship. He completed internship and today is a proud employee of Tata Motors. True to the tradition of the Tata Group, Tata Motors is committed in letter and spirit to Corporate Social Responsibility. It is a signatory to the United Nations Global Compact, and is engaged in

“To me, this scholarship is a responsibility which has been bestowed from the Tatas and I will do my bit by supporting many like me.” Gautam Waghmare, Tata Samarth Scholar

community and social initiatives on labour and environment standards in compliance with the principles of the Global Compact. In accordance with this, it plays an active role in community development, serving rural communities adjacent to its manufacturing locations.

Company: Tata Motors Contact : Shivram Krishnan, Human Resources Email: May 2017 31



Inventories with Methods of Classification P S Satish

Proper management of Inventory is resultant of Control of Inventory. Based on the unit price, importance, availability etc. there are many classifications for inventory types. Also, based on these types, various methods of analysis are applied to various industries for yielding control over inventories.

In the last issue, we discussed on the challenges of Inventory Management at SMEs, Root causes for high inventory and role of top management in inventory control. Let us look in this issue, various techniques for the control of Inventory at the desired level. Basic questions before Inventory Control • What is the purpose Inventory? • How much Inventory to be held? • Where Inventory to be held? • Who will hold the Inventory? • How reliable are Suppliers? • What should be service level with Customers? • Where are Suppliers and Customers located? • Types of Inventory to be controlled? • How are Inventories classified? These questions should be reviewed frequently to control Inventory and to 32

make necessary changes. Inventory Control Cycle Having decided on the type of Inventory and the level to be maintained, next step is to monitor actual Inventory with that of the target. The deviation between this is called ‘Error’ and actions to be initiated to reduce this error by following PDCA (Plan-Do-Check-Act) cycle. For good control of the cycle, a person should be made responsible. Depending on the size of Inventory and complexity and type of business, the person can be from function such as production, purchase, planning and sales or there could be an exclusive person for Inventory control typically called as ‘Inventory Controller’. Key point while designating a person is that he or she should be able to influence the level of Inventory. Others should support. Top management must involve in regular reviews to improve the cycle. Various stock levels

Maximum level: The level above which stock should not be permitted to exceed Deficiency level: Indicating actual or potential production stoppage Danger warning level: The level after which ‘stock-out’ likely if delay in procuring happens. A warning for close follow-up Exhaust bin level: Stocks are fully exhausted. Stock-out situation Buffer or minimum stock level: Stock carried to meet exceptional conditions of demand Re-order level: Point when order has to be placed for replenishment. To be decided based on the lead time and demand. Methods to control Inventory Various methods are evolved based on consumption, value, unit price and May 2017

May 2017

importance. Here emphasis is on proper Data of inventory for better control. A. ABC Analysis This is typically followed in manufacturing industries. Here the total inventory is split based on the annual monetary value of consumption. The inventories that covers 80% of total value when arranged in descending order are called A-Inventory. Similarly, those covering balance of 15% value is called B-Inventory and remaining covering 5% is called C-Inventory. Following treatments are given for various classification: A-Inventory: Tight control on the level of Inventory; JITmanufacturing; less number of stock holding points; more than one source; centralized procurement; close supervision and management. B-Inventory: Moderate control & supervision; Judgement is used to decide whether few to be classified as ‘A’ or ‘B’ category C-Inventory: Loose control and supervision ABC control is based on principle – vital few and trivial many. Sometimes, it is also defined as Always Better Control. B.XYZ Analysis This classification is based on the stock value of the items. Here instead of annual consumption value as in ABC classification, current stock value is

taken. Items having very high stock value are classified as ‘X’ where as items with least stock value are classified as ‘Z’ and ‘Y’ in between. C. PQR classification Here items are classified based on their shelf life. Items with low shelf life needing high attention is classified as ‘P’ and the items with longest shelf life is classified as ‘R’ & ‘Q’ in between. This type of classification is more relevant in industries producing perishable goods. D. VED Analysis Certain items, if not available, can cause holdup or slowdown the production resulting in high costs. The items by itself may or may not be priced high but their stock out costs are high. Based on criticality to production, items are classified as V(Vital), E(Essential) and D(Desirable). Few industries also classify these as critical, medium and noncritical items. Such type of classifications is relevant in refineries or process industries to keep spare parts stocks. E. FSN Analysis Items can be classified as fast moving(F), slow moving(S) and non-moving(N) based on their pattern of issue from stores. This monitoring helps in monitoring obsolescence and to take a decision to dispose of. These terms are relative and company need to decide a criterion for fixing inventory as F, S or N. Very useful in consumer product industries and retail shops.

F. SDE Classification This classification is based on the ease of obtaining an item. S stands for scarce – such items are not easily available in the market or difficult to manufacture. Special efforts are needed to get it. Inventory may need to be kept at higher level. ‘D’ stands for difficult to obtain and ‘E’ stands for easy to obtain. An item falling under ‘S’ and as ‘A’ in ABC classification needs special efforts to control inventory. G. HML Classification This classification is based on the unit price of the material in store. ‘H’ stands for high, ‘M’ stands for medium and ‘L’ stands for low price per unit of the item. This classification helps to look at while ordering H. GOLF classification This classification is based on the nature of source of an item. ‘G’ stands for Government, ‘O’ stands for open market, ‘L’ for local and ‘F’ stands for foreign. The amount of efforts required for each here is different and so also the treatment for the Inventory. G & O can be from L or F. I. SOS classification This is based on the nature of the time of availability of the item. ‘S’ stands for seasonal and ‘OS’ stands for off seasonal. This is more relevant in case of items derived from nature such as jute, pulp,cotton,soft woods etc. Strategy required here is based on the availability in a period of the year, price, shelf life, capability for storage etc. Though there are different methods of classification for control of inventory, the type to be selected is based on the industry type. All methods are not applicable for all types of industries. It can be used as combination of classifications. The author, P S Satish heads Saraswati Industrial Service. He has acquired B.E, M.Tech (IIT) and with 30 years of Industrial experience is serving engineering Industries in the area of capability development (purchase, quality & soft skills), consulting and mentoring. Focus is on overall improvement of company for 3C Competitiveness, Core-competency and Customer satisfaction. Why VED Classifications? - Certain items, if not available, can cause holdup or slowdown the production resulting in high costs.


May 2017


30 25


An ISO 9001:2008 Company






—Multifunction Power Transducer —AC Voltage Transducer (Avg. & TRMS) —AC Current Transducer (Avg. & TRMS) —Watt or VAR Transducer (TRMS) —Watt / VAR Transducer (TRMS) —Watthour or Varhour Transducer (TRMS) —Watt/Watthour or Var/Varhour (TRMS) —Power Factor Transducer —Power Frequency Transducer —Single, Dual output

to UL subject 94 Class. ® An ISO 9001:2008 Company

˜ QUALITY May 2017



—DIN Rail Mounting —ABS plastic, Self-Extinguishing








G-17, Bharat Industrial Estate, T. J. Road, Sewree (W), Mumbai - 400 015. INDIA. Sales Direct : 022 - 24156638 Tel.: 022-24124540, 24181649 Fax : 022-24149659 Email : Website :







Benefits to the Bottom Line

Joseph A Hopper

Low margin products tend to arouse interest among manufacturers and sales persons. These products offer substantial benefits in the form of increased throughput and absolute profit for a company. However, selection of the right products and analysis of associated costs, benefits and risk factors can help manufacturers in production of low margin products and earning profits successfully.

Many large, profitable industries are built entirely around the concept of wafer-thin margins (discount retailers, PC manufacturers, white label goods, etc.). The need for low-margin products arises for a variety of reasons, such as: • Production/delivery managers seeking to “utilize excess capacity” • Quota-driven sales people pushing hard to “meet their targets” • Business unit heads pushing to “achieve annual volume goals” • Large / important customers demanding a “total solutions” to their problem Such situations tend to create a sense of urgency to take quick decisions such as the common refrain “should we accept this order or reject it?”Low-margin products can be extremely tempting yet particularly dangerous, especially


when managers fail to look at the entire picture. Does selling low-margin products make sense and is it a sound business practice? The answer lies not in a traditional Cost-Benefit analysis, but rather the reverse…! First, Check the Benefits … Any increase in Throughput (contribution margin) from these products, however small, falls straight to the bottom line and can in turn drive a surprisingly large increase in absolute profits.

Whenever faced with a tradeoff between two products, consider which yields higher Throughput/effort or Throughput/ unit of production capacity.

How can one work out the incremental benefit generated by low-margin products in an existing setup? The secret is to focus on the Throughput (contribution) - Sales less Totally Variable Costs (TVC). That is, identify the May 2017

MARGINAL revenue produced and the MARGINAL costs incurred by selling each additional item. Examples of TVC include raw materials, outsourced job work, consumables, packing, piece rate labor, sales commission, shippingcosts, etc. For example, consider a Rs. 1,000 crore company with 50 crore profits. Selling an additional 100 crore low margin products with raw material costs of 90 crore increases overall profitability by 20%! Screening Criteria • Look for products with potential to increase overall profits SIGNIFICANTLY (otherwise it is probably not worth the effort) • Whenever faced with a trade-off between two products (for example, increasing sales of the existing products vs. adding a low-margin product), consider which yields higher Throughput/effort or Throughput/unit of production capacity • Avoid cannibalizing sales of more profitable lines Check the Costs after Ensuring that Sufficient Benefits Exist A common pitfall is to consider existing fixed costs such as permanent labor, rent etc. Traditional cost accounting seeks to “load” these costs onto products for various accounting purposes. But unless you intend to add people, hire new facilities, etc. this practice distorts the picture and can cause profitable

products to appear artificially unviable. Consider certain costs like Energy (electricity, gas, etc.) and causal labor on a case-to-case basis. Unless you feel that the new product will incur significant fresh spending you can just ignore them. For instance, if your manufacturing machines are always running whether loaded or not, there is no additional electricity being consumed by the new product until you start adding additional machines. Once you estimate the Throughput of the low-margin product, consider any other incremental Operating Expenses (OE) including the interest (if inventory or other working capital is required) and depreciation (if capital investment is involved). Safeguard Against Risks When margins are narrow, the room for error shrinks. Common risks include: • Unexpected scrap/rejections – causing losses which may go unseen • Quality returns by customer - leading to warranty claims & adjustments • Non-moving or obsolete stock, especially Made to Order items where the customer may cancel or change the order unexpectedly • Bills receivable collection risks or delays • Fluctuating underlying commodity prices which add business risk & variability • Risk of undermining the premium market positioning of your brand • Inventory – interest, shrinkage and

obsolescence costs • Reduced time & attention given y sales people to promote existing products • Customer service headaches • Delivery delays for other more profitable products • Reduced ability to charge premium prices in the future Guard against such pitfalls; when the margins are tight it takes just one small risk to transform a “great opportunity” into net destroyer of business value… Low Margin Products as Strategic Decisions Sometimes managers may choose to offer low-margin products IRRESPECTIVE of the costs or risks for example: • New technologies which are likely to pay off handsomely in the future but are not viable in the short term (e.g. Tesla Roadster) • Attempting to harm competitors (e.g. Apple iWork) • Loss leader products designed to acquire customers to enable up-selling other products later on (e.g. Google search engine) Such decisions can pay off handsomely, if plans work out. Even when management is willing to undertake such kind of risks, it is wise to check the full implications... Benefits vs Costs. In summary, first make sure that the benefits are substantial, then only work out the costs! Mr. Joseph A Hopper is the Director – India, TOC Institute and Program Manager for Goldratt Schools India. He is also an educator, business coach and an expert on Theory of Constraints (TOC). Earlier, he worked as the Director, Indian School of Business (ISB) in Hyderabad, managed the Wharton Global Consulting Practicum, and headed Corporate Development at NIIT Ltd. He holds an MBA from the Indian School of Business and a BA in International Business from King College (USA). He began his career as an Equity Research Analyst at the United Management Company in Virginia, USA. Low Margin does not necessarily have to be Less benificial.

May 2017 37



You Lose

Yourself In the rat race of this faster world, success means nothing but hefty pay cheque, climb up the corporate hierarchy, luxurious sojourn etc. for most of the people. It takes determination in some to be detached from this defined success, to not be part of this rat race, to carve out one’s own path and to live life less ordinary... Anthony Aravind

“The reward of labour is life. Is that not enough?” – William Morris

Bajaj, an Indian motorcycle major is evidently reaping one of their greatest successes yet with the launch of their new facelift Avenger, a mid-range cruiser bike. I’m sure you must have noticed the rapid increase in the number of Avengers on road in the past year; a special credit to the marketing team for a truly philosophical advertisement. Let’s spare the moral debate about the organizational relevance of the advertisement. Relevant or not to the product, the advertisement is very much relevant to the current lifestyle of humanity. How many of you are aware that majority of the world population are participating in the world’s largest rat race? Race to clinching an indiscriminate title, Race to meeting impractical targets, Race to decorating your living room with futile certificates and corporate coffee mugs, and the Race to earning more money than your colleagues. What an


individual doesn’t realize is that in the course of running this great rat race people are losing themselves, starting with their relationships, their family, their friends, their passion, their talents and ultimately losing their very identity. What worth is money, if it’s butchering the most valuable things you have nurtured all your life? What good is fame, if your children lack the love of their parent? How valuable is your title, if you are missing from the lives of your loved ones? If you thought it was alright to trade love, family, relationships, values and personal ethics for money, fame, title, position and etcetera, you have failed the basics of human life. In 2007, my best of friends was offered an expedient job at Google with an effusive pay cheque. Life couldn’t be more established and secure for him with that irrefutable offer from Google, but he simply turned down the offer.

He said:‘Google offered to pay not for what was needed from me but for what I was capable of, and I know what I am capable of and that’s why I turned down the offer’, ‘I’m not a product for sale.

May 2017

Every single person whom he knew was upset, frustrated, and disappointed; for many months he was at the receiving end. I was equally upset and frustrated at his foolish decision and asked him for one good reason as to why he turned down such an offer and when I heard him out I was stumped. He said:‘Google offered to pay not for what was needed from me but for what I was capable of, and I know what I am capable of and that’s why I turned down the offer’, ‘I’m not a product for sale. If Google (a bunch of geeks who don’t know me, but have understood the potential of my gifts and skillset) is willing to invest in me, then how much more can I the beholder of these gifts, talents and skillset utilize them?’ He chose the path less travelled when he began to pursue his dreams and his passion. What he began was absolutely too small making entirely too little difference in the society. Did he have a title? No. Did he feel insignificant? Absolutely. His beginning was infinitesimal and people rebuked him for his decision and his idealistic approach, but he never despised it. Now15 underprivileged children are receiving free education, the kids in his community are learning music, children from around the neighbouring villages are receiving free computer coaching and soft skills training. His organization has begun to influence one community at time. Not just that, he is living a life which is a mere fantasy for most corporate-heads, want to know how?

What worth is money, if it’s butchering the most valuable things you have nurtured all your life? Firstly, he is doing what he enjoys, not the hierarchal needs, he has built his office right beneath his duplex house, he spends enough and more time with his wife and two lovely daughters, as a family he is going on frequent vacations without even having to worry about deadlines and targets, and as for his wife and daughters, they couldn’t ask for a better husband and a father. It might seem far too perfect to be real, but trust me it is very much possible. Reading between the lines? Let me make myself clear, I’m not endorsing or campaigning ‘quit your job’ movement. Here’s what I’m asking you to do: Identify your Dreams and Passion The world wouldn’t have celebrated the likes of Martin Luther King Jr., Mozart, Pele, Michael Jackson, Anthony Hopkins, Mother Teresa, Meryl Streep, Steve Jobs,

and many more if not for their dreams and passion. It can’t get any simpler than this. You may have well established yourself in a firm but if you haven’t identified your dreams and passion you are just one among the living-dead. Explore the Conducive Environment Dreams and passion are like finger prints, no two peoples are the same, and so is the environment that is needed to nurture and grow those dreams and passions. If your environment isn’t conducive enough, you may be close enough, but not the person you were meant to be. Be very particular about your environment. Labour in Patience You may be hard working, you may be committed, you may be loyal to your company and the management, but if you aren’t patient with yourself, your growth will be limited. Unfortunately, we live in a speed sensitive generation whose motto is ‘the faster, the better’, faster isn’t always better. Find ways to apply those brakes and if your environment doesn’t allow you to do so, then change your environment. What is the reward you want out of your labour? If your answer was anything but LIFE, you simply haven’t gotten your basics right. I’d like to quote two people to help you rethink, re-evaluate, reconsider and rework, lest you lose yourself. “Without commitment, you cannot start anything and without consistency, you cannot complete anything” – Denzel Washington The author Anthony Aravind A is a Counselling Psychologist and a Content Writer based in Bangalore, and specialized in Organizational Behaviour, Marriage and Family Therapy. He is passionate about people, their thought process and their behaviour. He collaborates and brings in his creativity as a professional Musician, knowledge and discernment as a Counselling Psychologist, and radical world view as a Photographer in all his articles. “If it doesn’t challenge you, it doesn’t change you” - Fred DeVito

May 2017


Clean Earth Green Earth On 22nd of April the world celebrated international Earth Day, to acknowledge andeducate people about the growing concernsregarding the depleting conditions of our environment and the need to take firm steps to protect it. The day marks the anniversary of the modern environment movement that began in the year 1970.

Ramya Ramakrishnan

With the dawn of 20th century the world has witnessed a splurge in the use of non-degradable and non- renewable resources to accelerate the wheels of development, mindlessly utilising resources that have taken millions of years for formation. The practises had their consequences on the living and

non-living elements that built our earth. A potential threat known as global warming or human induced greenhouse gases in the environment is leading to a rise in temperatures. The catastrophic effects of this phenomena include extreme climate change, increase in

the water levels of ocean bodies and unbearable heat waves which is being experienced all over the world today. The cutting edge of this edition will bring to you few of these steps taken by researchers which can be effectively integrated in our technologies to achieve sustainable development.

Definate use of hydrogen to generate green energy

Hydrogen can be considered an green alternative and can reduce our indulgence on carbon based fuels, however its flammable and reactive nature makes it hard to handle. Researches have now discovered a way to now produce hydrogen which using organosilanes which is air-stable, cheap and non-toxic.


The team that is led by by Kiyotomi Kaneda and Takato Mitsudome at Osaka University have developed an environment friendly hydrogen using organosilanes which is exposed to a catalyst that is composed of gold nano-particles and synthesized from chloroauric acid, using glutathione as a capping agent to prevent nanoparticle aggregation which is 2nm diameter supported on hydroxyapatite. The Glutathione-capped gold nanoparticles were then adsorbed on hydroxyapatite and glutathione was removed by subsequent calcination. To test the efficiency of the catalyst it was added to different organosilanes to measure its involvement in production

of hydrogen out of the element. The catalyst displayed highest efficiency and turnover in frequency of producing hydrogen from organosilanes. The activity was increased as the size of the nanoparticles decreased. A prototype of a portable hydrogen fuel cell was developed, which contained nanoparticle catalyst and an organosilane. The cell generated energy at normal room temperature, images of the catalyst after it had been used showed its resistance against aggression. The production of hydrogen using cheap organosilane opens the door towards use of hydrogen as a source of green energy. May 2017

An Impetus in production of Bio-degradable fuels. The team has revealed about a mechanism behind oil synthesis that can be carried out by microalgae cells. The biomass on the surface of earth including the growth of biomass on aquatic bodies like ocean- beds, is more than 10% the energy we consume. These biomasses that thrive on and below water surfaces have the capacity to produce oil without consuming arable land and drinking water. Multiple species of these algae’s produce lipids or oils, which for the very first time are being studied by the researchers on a molecular level on the basis of metabolic changes that occur in these biomasses during production of lipids. Harvesting these microalgae’s is much easier as compared to any other technologies, needing light, water , carbon-di-oxide and minimal nutrients.

They can grow at a faster pace than the land based biomasses and can be potentially harvested throughout the year offering a more stable energy supply. The team has developed a method known as “Dynamic metabolic profiling” which is a method to find out the process of production of oil in specific specie of green alga known as Chlamydomonas sp. JSC4. Using the method the researchers found the element that triggers the metabolism i.e addition of sea water which helps in switching the production of starch with oil with the help of an enzyme that breaks down the starch into oil. This is a major breakthrough that will help increase the utilisation of biofuels and increase sustainable oil production and cultivation methods.

In a research carried out by a group led by Professor HASUNUMA Tomohisa and Academic Researcher KATO Yuichi, both from the Kobe University Graduate School of Science, Technology and Innovation, a discovery was made which could contribute to the world of biofuels and its application that would help the world to made a radical shift from non- renewable to renewable source of energy.

New ways to boost solar conversion efficiency. The research was carried out by a team led by Professor KITA Takashi and Project Assistant Professor ASAHI Shigeo at the Kobe University Graduate School of Engineering.

Finding alternatives to beat the traditional system of converting solar energy into electricity research team from Kobe University have designed a new solar cell that can raise the efficiency of energy conversion to 50% by simply retaining the spectral components of longer wavelengths that are usually lost during transmission of cell. May 2017

In order to find a way to producing electricity at a cost efficient price with minimal loss of energy and loss of energy, the research team utilised two small photons from the energy transmitted through a single-junction solar cell containing a hetero-interface formed from semiconductors with different bandgaps. They were able to develop a new solar cell structure for generating photocurrents using the photons which demonstrated 63% conversion efficiency. The experiment with these solar cells has been conducted over a 100 times, which has proved a concrete point of this method being more efficient that

the previous systems that were utilised. Traditionally most of the solar energy that strikes the cells pass through without being absorbed and is exhibited as heat energy instead, making 30% energy conversion efficiency as the upper limit for the single junction solar cells. To overcome this limitation a research has been carried out throughout the world where scientists emphasised in designing a new solar cell that could reduce the loss of energy and inversely increase the efficiency of the conversion. The world record of this conversion is held by a 4 junction solar cell displain 46% efficiency in conversion of electricity. If the efficiency level surpasses 50% it would bring out a way in producing electricity at a cost efficient cost. 41


Gear Up

for Growth Industrial gears and motors which are integral to all the industrial processes may see renewed growth worldwide. Expanding manufacturing activities in the Asian economies, high demand for energy efficiency and use of alternative energy sources, adoption of automation across Arnab Mondal industrial processes etc. can be the factors for growth.

Overview Industrial gears and motors which are essential components of industrial processes are characterized by heavy duty performance and load capacity. Industrial gears are manufactured as per the set industrial norms and standards using the optimum quality materials. Standards for industrial gears include ISO 9001:2008, DIN Standards and American Gear Manufacturers Association (AGMA) standards. Industrial gears find their application mainly in steel manufacturing, steel processing, material handling, machine tools industry, engineering industry and in paper, plastic, rubber and sugar industries. Indurial gears are primarliy classified as bevel, helical, worm gears, spur,


herringbone, spline, sprocket, double helical, internal, and rack. The size of the gear sets vary mainly between pitch diameters of 80-2000 mm. Industrial gear boxes, conveyor drives, pulverisers, marine drives, transportation systems are some of the applications that represent the industrial gear sector. Motors are electrical machines which convert electrical energy into mechanical energy by the interaction between the magnetic fields set up in stator and rotor windings. The industrial motors market is segmented broadly on the basis of voltage, product type, voltage range, electric source and end-users. The market is categorized into high-voltage motors, medium-voltage motors, and low-voltage motors in terms of voltage. Further, it is segmented on the basis of product type such as standard efficiency,

Vast population and their rising lifestyle in the emerging economies such as China, India, and Brazil have opened doors for several industries to extend their facilities to meet the demand of the consumers. May 2017

premium efficiency, high efficiency, super premium efficiency and others. Region-wise Outlook The global market for industrial gear can be segmented into North America, Europe, Asia Pacific, and rest of the world. Currently, Europe and North America contribute to the most of demand for industrial gear, courtesy technological advancements and increased competition among the players. However, Asia Pacific is expected to expand the demand at the most prominent rate due to the presence of Vast population. Vast population and their rising lifestyle in the emerging economies such as China, India, and Brazil have opened doors for several industries to extend their facilities to meet the demand of the consumers. These industries include textile, oil and gas, pulp and paper, and food and beverage. The growth of these industries in turn has resulted in the robust growth rate of the market

for industrial gear. However, the market for industrial gear is cost sensitive, and hence the increasing prices of raw materials such as stainless steels, hardened steel, aluminum, cast iron, bronze, and brass is challenging factor for the growth rate during the forecast period. For Motors, the Asia Pacific region holds the largest share of the market due to the large growth in the industrial production mostly in China and other South-east Asian countries. Experts estimate industrial motors market to have a highest CAGR growth during the forecast period 2016-2021 in this region. Besides, factors such as increasing electricity price, advancement in energy efficient industrial motors, improved efficiency and others will boost the global industrial motors market growth. Trends & Opportunity With changing market dynamics and evolution of new trends, opportunties abound for gears and motors

manufacturers. The global industrial gears and motors market will grow at a CAGR between 5 to 6 per cent till 2020. Primarliy three factors will drive growth in industrial gear market worldwide. Industrial gears find wide application in the infrastructure and manufacturing sector. Emerging economies, particularly China and India, are witnessing a surge in the rate of infrastructure development. Such infrastructure development leads to an increase in manufacturing activities, oil and gas sector along with the manufacture of the necessary metals. To meet this demand, the manufacturing sector will need to provide consumer goods at a faster rate, which is possible only with energy efficient and value products from the gear industry. With crude oil deposits exhausting, it is imperative for governments worldwide to come up with alternative sources of energy. To this end, European countries are rapidly increasing their use of



Pre-set torque wrenches for light applications in electronic, electromechanical and fine mechanical industries. The break at an angle of 20° prevents the overloading of the bolts, also for not skilled operator. • Range from 0,5 to 14 Nm. • Pre-set, the desired torque must be set using a torque analyzer. • 20°single direction release. • Ergonomic handle. • Handy and light. • Guaranteed accuracy ± 4% in accordance with EN ISO 6789:2003. • Traceable calibration certificate through accredited laboratories.

Reliable Trade Links

No. 65, Balaji Nagar, Padi, Chennai - 600 050 Ph: 93810 45752 Email:

May 2017 43

renewable energy sources, especially wind energy. Planetary gearboxes are a major component in wind turbines as they provide high torque value to wind turbines and account for almost 40 per cent of the industrial gearbox market in EMEA. In wind turbines, the compact and lightweight character of planetary gearboxes is ideal for smaller installation space in wind turbines. The gears in planetary gearboxes ensures up to 98 per cent efficiency. With wind energy emerging as a major alternative energy to fossil fuels, the demand for planetary gearboxes is expected to soar during the forecast period. Globally, artificial intelligence is becoming integral to every industrial and technical process which is expected to bring forth a large scale industrial revolution. Industries aim for the conversion of their facilities into ‘smart factories’ where processes will be automated and the system will be in continuous sync with people, sensors, and devices via the internet of things. These factors are expected to boost the adoption of automated processes and hence, the use of automated equipment. Also, the adoption of automated processes will enable the industry to work on better-developed gears and equipment. The demand for energy efficient industrial motors is rising globally due to the introduction of stringent energy standards and rising electricity prices.

Indurial gears are primarliy classified as bevel, helical, worm gears, spur, herringbone, spline, sprocket, double helical, internal, and rack. Rising standards in the improvement of efficiency and design are forcing manufacturers to design and develop energy efficient motors. So, the global industrial motors market is quickly shifting towards highly efficienct electric motor systems. The market has been witnessing tremendous technological advancements in the last few years due to which, the current electric motor market is gaining traction. Increase in revenues is motivating market participants to invest in the electric motors market. Countries across the world are realizing the electricity saving opportunities offered by energy efficient electric motors, prompting them to

implement stringent regulations and policies to deploy energy efficient electric motors. Thus, the demand for electric motors is rapidly shifting from standard efficiency electric motors to high and premium efficiency motors. This shift in trend is directly contributing to revenue growth of electric motors manufacturers. The electric motors find wide adoption in industrial fans, compressors, pumps, lathe machines, machine tools, domestic appliances, heating ventilating and air conditioning applications, disk drives, power tools, electric cars and automated robots. Other applications include industrial, residential, transportation, and agriculture. Electric motors are used in industrial applications, such as mining & metals, oil & gas, chemicals & petrochemicals, cement & manufacturing, and utilities. In transportation applications, it is used in railways, electric vehicles, and aerospace. Highly efficient motors, which are also called as premium efficiency motors, are gaining importance over standard motors due to varied benefits such as longer operating life, low energy consumption, low maintenance, and high tolerance for fluctuating voltages among others. Lower energy consumption by energy efficient motors is an ace advantage of these motors over standard motors. Although expensive as compared to conventional motors, the long-term environmental benefits offered by the premium motors tend to outweigh the initial premium cost of these motors. The widespread awareness of the green vehicles amongst customers and increasing number of government incentives to promote green vehicles in order to safeguard the environment from carbon emissions is ultimately contributing to the growth of the electric motors market. Therefore, the electric cars are in great demand amongst customers and ceasing this opportunity, the market players are launching different electric cars to meet the customer demands. Advanced electric motors will contribute majorly to high energy efficiency need across indusrial processes.


May 2017

May 2017


Bridging the Gap in US Business with Indian Excellence! US is spearheading the change in global business and economy, championing the trend in industrial automation. But the gap between OEMs and TIER supplier exists here as well, as it is in India. PATSOL is a trusted name in providing services and solutions which bridges this gap between OEMs and TIER suppliers. Now the company is all set to replicate its success model in the US territory catering to a wide range of customer in a user-friendly way. In an interview with MART, Mr. Sumeet Dheer, Director, PAT Productivity Solutions Corp. USA, shares strategy behind PATSOL’s expansion in the US and their future.

Sumeet Dheer Director, PAT Productivity Solutions Corp. USA

A BE in Mechanical Engineering with 21 years of experience in automotive sector and with proven track record providing visionary leadership, driving significant cost savings through procurement, Innovative vendor development, Contract Management, Inventory Management, Business Planning and continuous improvement through productivity initiatives. A Customer centric and result oriented professional to deliver optimum solutions which exceed customer expectations.

Cost Reduction to improve profitability. 46

May 2017

Many congratulations to PATSOL for establishing your operations in US. What strategic role will the new location play in PATSOL’s overall growth plan? Thank you. PATSOL plans to make its presence felt globally by using the best global practices and achieve sustainable and high performance objectives wherein the gap between OEM and TIER supplier capabilities is bridged. It aims to provide key customized and continuous support to the US industry. We understand that in US expectations from PATSOL would be much higher but if you see, the industry here also is experiencing similar problems which we have been dealing so far back home. Only thing is we must offer them the right kind of recipe for their problem. This decision of ours was a very calculated step taken by the management and we see lot of opportunities coming up. Success in this location will certainly be a momentous step in the expansion plan. What was the factors that led PATSOL to select US as its preferred location for expansion? What kind of market

potential do you expect for your solutions and services there? Our business in India can be duplicated here with success because we have already proved ourselves with the US, German & Japanese MNCs so why can’t we offer same services here in US which has a potential market. Our vision and mission will help to generate and sustain the traffic of potential customers. We look upon US as an appropriate growth alternative also in terms of improved & growing INDO-US economic relations. We expect a very good response from the customer base here as we provide a direct interface to them, unlike others who are in the same line of business as ours. Our USP is that we do not charge any upfront fees but our fees are based on profit sharing. To make it simpler, we charge a percentage of the value we add or cost savings we bring about over a period of one year. So, you are not shelling out money unless we have saved it for you.

same as we have in India, that offers integrated turn key solutions in the field of Engineering, Information Technology & People Management. Driven by our motto “Different Manufacturing to Differently Manufactured “One can call upon us for issues related to PQCDSME i.e. (Productivity, Quality, Cost, Delivery, Safety, Morale & Environment) faced by their organization. We also undertake development of complex Tooling’s, Jigs, Fixtures, SPM’s & special cutting tools required for production. We understand the Business and we will be able to work out the best solutions. What kind of customer base will this new office cater to in the US?

Please throw some light on areas of PATSOL’s expertise.

We will be approaching Automobile, Engineering, Wind Energy to start with and at a later stage add Oil & Gas as well. In the 1st Phase we plan to offer our services for the following. • Cost Reduction to improve profitability • Capacity Enhancement with minimal investments • Cost effective supply of quality Tools, Jigs, fixtures, cutting tools & other production aides.

Our Business model remains the

What geographic locations will the new

Pastol expanding globally by offering “Different Manufacturing To Differently Manufactured. ” May 2017 47

site cover for offering solutions and services? Based at Indianapolis - Indiana which lies in north central part of United States, we would be currently operating & serving customers within the radius of 500 miles (800 Km) which will cover the states of Michigan to the north & north east, Illinois to the west, Kentucky to the south & Ohio to the East. Apart from your presence in US, what are the new territories you are looking at? Our move from here is to work out business opportunities in the Middle East i.e. UAE and we are already on the lookout for a resident representative & collaboration. Automation is playing a major role in manufacturing, and US is championing the same. How will this development change the future of Manufacturing especially in markets like India, where labor generation will be drastically reduced? That’s true the world is heading for automation & in a report submitted in

2013 by economist Carl Frey & machine learning expert Michael Osborne engineers will find ways to automate nearly 47% of jobs in United States. Unlike other technological revolutions it says this will impact workers across the spectrum, from low-skilled to whitecollar jobs. So, whom to believe the pessimists (many of them techie types), who say this time is different and machines really will take all the jobs, or the optimists (mostly economists and historians), who insist that in the end technology always creates more jobs than it destroys? The answer to this probably lies somewhere in between. It will not cause mass unemployment, but it will speed up the existing trend of computer-related automation, disrupting labor markets just as technological change has done before, and requiring workers to learn new skills more quickly than in the past. Companies and governments will need to make it easier for workers to acquire new skills and switch jobs as needed.

As the Director & President for PAT Productivity Solutions Corp, USA what are your growth plan? US is a large economy. Let’s say it’s the engine of growth for the whole global economy. Our vision is to offer “Different Manufacturing To Differently Manufactured ”. What we see now is that we’ve got the opportunity to develop and offer sustainable manufacturing strategies, streamline operations for lean manufacturing, reduce inventory, optimize profits for the industry here. Our challenge now is getting the brand out there and build the relationships with many OEMs at the right level as we possibly can. While in India we’ve gone from a relatively small presence within these companies to working at scale, which is in many respect, remarkable. Typically, you start with a small project, then take on a bigger work package and slowly but surely you build up the trust. We would like to be the most preferred service provider & would like to grow exponentially over a period of 5 years.

Optimising balance between customer and seller - done best by Pastol. 48

May 2017



Ministries of Commerce & Industry; Coal, Mines Skill Development & Entrepreneurship New and Renewable Energy Defence Production, DRDO, Steel Micro, Small & Medium Enterprises GOVERNMENT OF INDIA


It’s time for ‘Make in India’

(Concurrent with 3 days Conference)

30 October - 1 November, 2017

BIEC, Bengaluru, India

Indian Space Research Organisation







Expected Participation









Industry Partners

All India Association of Industries

BRICS Chamber of Commerce & Industry

Bangalore Chamber of Industry and Commerce

Federation of Karnataka Chambers of Commerce and Industry

India China Economic and Cultural Council

Official Media Partner


Indian Foundry Organisation

India China Chamber of Commerce & Industry

Federation of Indian Micro and Small & Medium Enterprises

Solar Energy Society of India

Society of Indian Aerospace Technologies and Industries

SME Chamber of India

Media Partners


CONTACT For Conference: IMS FOUNDATION Telefax: +91-80-2665 1234 / 4171 6085 Email:

For Exhibition: TAFCON PROJECTS (INDIA) PVT. LTD. Tel: +91-11-4985 7777 (50 Lines) Email: May 2017 49


New Intelligent Process Control Software for Renishaw’s

Equator™ Gauging System Samina Khalid

The new Intelligent Process Control (IPC) software that comes with the Renishaw Equator flexible gauge offers improved automated control and corrections in CNC manufacturing processes. The new functionality offered by the software is widely used achieving excellent results for industries across applications and various CNC machine types.

The Renishaw Equator™ flexible gauge is now offered with IPC (intelligent process control) software, providing the functionality to fully automate tool offset updates in CNC manufacturing processes. Improved capability in precision part machining, reduced setting and process adjustment time, and integration with automation systems are some of the benefits that users can now expect. IPC is used with the existing software running on the Equator controller, using recent historical gauging data to determine process corrections. Connection to a compatible machine tool can be as simple as connecting an Ethernet cable from the Equator to a CNC machine. This capability has already been used by Renishaw customers worldwide to achieve considerable performance gains across a wide 50

variety of industries, applications and CNC machine types, including lathes, machining centres and highly automated machining cells. Controlling Processes With Frequent Gauging The new IPC software allows constant monitoring and adjustment of a machining operation, keeping part dimensions close to nominal and well within process control limits. This means that any process drift is quickly corrected, improving part quality and manufacturing capability, along with reducing scrap. The proximity of the Equator gauge to the CNC process allows rapid measurement and process adjustment at the point of manufacture, avoiding time delays or relying on finished part (tailgate) inspection.

The Renishaw Equator™ flexible gauge is now offered with IPC (intelligent process control) software, providing the functionality to fully automate tool offset updates in CNC manufacturing processes. May 2017

The IPC software can average results across several parts to determine the true process mean for adjustment of each cutting tool. For process control purposes, it is usual that only one machined feature per tool offset will require gauging, as compared to many features for typical Quality Assurance (QA) applications. The frequency and control of offset updates can be configured on a feature by feature basis depending on design tolerances, process variation and tool wear rates. Reduce Dependence on Skilled Operators The ability to correct a process automatically with IPC software eliminates the potential for manual data entry errors and removes the requirement for an expert to decipher traditional measurement reports into a process correction value at the CNC machine. One-to-one or One-to-many – Update Multiple Machines from One Equator Gauge An Equator gauging system can be connected to one or multiple CNC machine tools, so that parts from different machines can be gauged on one Equator, with the offset updates being sent to the corresponding machine (part / machine identification is required). Connection to multiple machines requires an Ethernet hub or is

changing. Where IPC Software Is Of Benefit

An Equator gauging system can be connected to one or multiple CNC machine tools, so that parts from different machines can be gauged on one Equator.

via an existing factory network. Closed loop unmanned process control of a cell of machines is possible and a key requirement when used in conjunction with factory automation systems. Intelligent Process Control Of Cutting Tools Options within the IPC software can constantly monitor the process and detect excessive tool offset update values, indicating tool failure or high rates of wear, and automatically signal to the machine that the tool needs

IPC software is particularly useful for conventional CNC lathes or Swiss-style sliding head machines where integration of a conventional machine tool probing system may be difficult due to machine configuration or tool station availability. Using the Equator gauging system is also beneficial where measurement due to feature access or size would be difficult to undertake on the machine tool. Also, the use of off-machine gauging and IPC as a parallel activity is the preferred solution where minimum machining cycle time is a critical requirement. IPC Compatibility The first release of the new IPC software allows connection to one or multiple machine tools, with direct Ethernet links from the Equator Controller to Fanuc, Mazak and Okuma CNC controls. Fanuc controls that have been tested and proven include the 0i, 30i, 31i and 32i, with the Focas2 option installed. Mazak controls currently supported are the Smooth X, Smooth G, Matrix2 and Matrix controls with the Mazak API installed. The Okuma OSP300L and OSP300M controls are supported, on machines with the Thinc API installed. Future software releases will further increase CNC control compatibility. The Versatile Gauge The Equator gauging system has design and method of operation, and has already changed the thinking of thousands of production engineers, making it their gauge of choice. The versatility and repeatability that Equator offers is re-defining the world of gauging and, now available with IPC software, it offers an even wider range of capabilities to manufacturers globally. For further information

Equator gauge sending offset updates to a Mazak HQR turning centre fitted with a Smooth G control, with the Mazak API enabled.

May 2017 51


An Energy Chain

Dynamics with very low noise

New sizes of the E6.1 series from igus are now available For applications where an extremely low-noise running of the energy chain, very high dynamics or very low abrasion is required, the motion plastics specialist igus has developed the E6.1 series of energy chains. These chains are now available in new sizes with larger inner heights of up to 62 millimetres.

The company igus has developed the E6.1 series of e-chains for applications where very low-abrasion energy chains are required, for example in the clean room in semiconductor manufacture. As with the predecessor series E6, instead of a pin/bore connection, elastic polymer spring elements in the side elements serve as connectors for a dampened and very smooth running of the chain. The very small pitch and contour of the chain links ensure that the polygonal effect is reduced to a minimum and the chain rolls very smoothly. Thanks to the narrower design compared to the E6, roughly 30 percent can be saved with the same inner dimensions. “Further advantages of this design principle are a very quiet and extremely low-vibration operation with only 32 dB(A),” explains

Harald Nehring, authorised officer for e-chainsystems at igus. “This makes E6.1 series energy chains very suitable for use in stage technology or in TV studios, in addition to applications in the clean room.” The e-chains of the E6.1 series can also be used for applications with speeds of up to 20 m/s. From now on, chains in four different dimensions are available from 29 millimetres up to 62 millimetres in height. An even larger version of the E6.1 with an inner height of 80 millimetres will follow in spring 2017.

the chain is already installed in the machine, additional cables or hoses can easily be drawn in. Almost all of the crossbars are also equipped with a grid marking, which enables the exact positioning of separators. In the size with inner height 29 millimetres, users also have the option to order the chain with swivel-open crossbars. This means easier handling and therefore shorter installation times are possible. The very smooth and interference-free interior ensures a very long service life for the guided cables and hoses.

Easy access for quick assembly

For more details write to Harish Booshan, Product Manager E-ChainSystems® & ReadyChains®, igus (India) Private Limited, Cell:+91-8049127809 Email: Web:

For all installation sizes of the E6.1, the crossbars can be removed along the inner and outer radii, so that quick filling is possible. The means that when

The series E6.1 e-chains are very abrasionresistant and are characterised by their unique connector system for maximum dynamics. 52

May 2017

May 2017


Magnetic Clamping

Technology The SCHUNK MAGNOS force-measuring system captures the po-sition and individual clamping force of the workpiece located on the magnetic chuck. The technology study shows what the intel-ligent magnetic clamping solutions can do in future for industry 4.0. With a technology study of the SCHUNK MAGNOS force-measuring system, SCHUNK, the competence leader for clamping technology and gripping systems presents for the first time an intelligent magnetic clamping solution. It captures the individual position and size of the workpiece, which is located on the magnetic chuck, and precisely determines the indi-vidual clamping force. The system sets the condition for a continuous process control and an automatic adjustment of the processing parameters on the size and nature of the indi-vidual workpieces. For example, in the case that a large number of poles are covered by a workpiece, the feed rate or cutting speed (due to the high clamping force) can be individually increased; therefore or in the case of a low pole coverage or weak ferromagnetic workpieces, it can be reduced and a process-stable machining is ensured. Potential fields of application of the system are machining of medium to small batch sizes with fully automated parts handing, as well as machining, where a comprehensive process monitoring is re-quired.

networked, highly transparent and flexible processes for industry 4.0. “All our products are synonymous with good quality and speak for its performance. Fit and forget is the mantra behind any SCHUNK products,” shared Satish Sadasivan - Managing Director of SCHUNK Intec India. More than 2,700 employees in 8 plants and 30 directly owned subsidiaries ensure an intensive market presence.

With more than 11,000 standard components SCHUNK offers the world’s largest assortment of gripping systems and clamping technology from one source. Whether pneumatic, hydraulic, manual or magnetic, SCHUNK is well-equipped to provide tailored fitting solutions to customers from wide-ranging industry sectors. For more details write to Satish Sadasivan, Managing Director, SCHUNK Intec India Pvt Ltd , Tel: 080-40538999 Email: Web: Magnetic chucks with intelligent force-measuring system allows flexible process management in industry 4.0.

The system paves the way to first-class 54

May 2017

May 2017


Additive Manufacturing Expanding Future Technologies

With a majority shareholding of 50.1% in REALIZER GmbH from Borchen, DMG MORI has now strengthened its position in the field of additive manufacturing, selectively expanding its future technologies. The group already has extensive expertise in the field of laser deposition welding with powder nozzles (laser metal deposition) through SAUER GmbH. The range of machines here comprises the LASERTEC 65 3D and the LASERTEC 4300 3D. The company REALIZER in turn has over 20 years of experience in “Selective Laser Melting” (SLM). With the integration of REALIZER in the product range from SAUER, DMG MORI now offers the key generative manufacturing processes for metallic materials from a single source. The first result of this cooperation is the LASERTEC 30 SLM.

With the new LASERTEC 30 SLM as addition to the already successful LASERTEC 65 3D and LASERTEC 4300 3D, SAUER GmbH and DMG MORI are consolidating their position as the world’s first full-liner in additive manufacturing with both hybrid and selective laser melting machines. “Selective laser melting in a powder bed opens up completely new areas of application for our customers. That is why this is the perfect complement to our LASERTEC 3D machines in the field of advanced technologies”, says Christian Thönes, Chairman of the Executive Board of DMG MORI Aktiengesellschaft.

The combination of laser deposition welding with machining on one machine opens up completely new application and geometry possibilities. 56

May 2017

LASERTEC 30 SLM: Sophisticated components in top quality The LASERTEC 30 SLM is equipped with a powder bed that has a volume of 300 × 300 × 300 mm. With this method, powder is applied in layers onto the work platform and melted by means of selective exposure. When the melting procedure is finished, the platform is lowered to the amount of the respective layer thickness and the procedure is then repeated with a new layer of powder. The process enables the production of high-precision 3D components with layer thicknesses of 20 to 100 µm depending on the surface quality and build-up rate - and it does so with no great impact on the production costs. Even complex grid and honeycomb structures, which cannot be realised with other methods, can be produced in high quality in this way. As SLM technology allows the use of different materials, its fields of application range from the automotive

and aerospace to the dental and medical industries and on to include tool and mould making. Thanks to a low porosity (0.1 to 0.5 percent), the components made of aluminium, stainless steel alloys, titanium and Inconel excel through extremely good properties similar to those of the basic material. DMG MORI also offers applicationspecific fibre laser sources of 400 Watt to 1 Kilowatt.

In order to round off the SLM manufacturing process ideally, DMG MORI also enables subsequent machining on its highly dynamic machining centres from the group portfolio. This way, highest component accuracies and best surface finishes can be achieved on the powerful HSC machines or, in case of advanced materials like Iconel, also on ULTRASONIC models.

The LASERTEC 30 SLM guarantees efficient and cost-effective production thanks to its low argon consumption of only 70 l/h and integrated powder conditioning that ensures optimum powder handling and reduces the particulate matter formation to a minimum. Moreover, the exchangeable powder module means it takes less than two hours to change the powder. An end-to-end software solution with a uniform user interface from CADFile (RDesigner) to process control (ROperator) simplifies operation of the LASERTEC 30 SLM.

LASERTEC 65 3D and LASERTEC 4300 3D: Additive manufacturing in finished part quality

End 2 End solution provider for diversified industrial needs

With the LASERTEC 65 3D, DMG MORI has integrated the generative laser deposition process in a fully-fledged 5-axis milling machine. The LASERTEC 4300 3D combines the procedure with the turn-mill equipment in a large work area of ø 660 x 1,500 mm. These intelligent hybrid solutions combine the flexibility of additive manufacturing with the precision of machining, thus enabling the manufacture of complete components in finished part quality.























Surya Manufacturing Company is a manufacturer and supplier of wide variety of electrical equipment including Machine Lamps, Relay Modules, Tower Lamps, LED Hand Lamps, Digital counters etc.



19, Golden Court, 50 Aundh Road, Above Union Bank Of India, Pune - 411020, India Phone: +91-20-25694455 / 25694488 / 25694499 Fax : 91-20-25694466 Email: Website:,

With the LASERTEC 65 3D, DMG MORI has integrated the generative laser deposition process in a fully-fledged 5-axis milling machine.

This laser deposition process uses a deposition process by means of a metal powder nozzle, which enables complete machining without the need of a process chamber and is up to 1 times faster than generation in a powder bed. This is beneficial, as the trend is often towards increasingly individual manufacturing. Adding to this, components are getting more and more complex. With the LASERTEC 65 3D and the LASERTEC 4300 3D, the production of overhanging contours without a supporting geometry is entirely possible. The latter as turn-mill machine even enables 6-sided complete machining of 3D components. The combination of laser deposition welding with machining on one machine opens up completely new application and geometry possibilities. Large components in particular can be produced cost effectively with these hybrid solutions. Flexible switching between laser machining and milling also enables component segments which are no longer accessible on the finished part to be machined directly. With the LASERTEC 65 3D, DMG MORI has already gone one step further and offers ULTRASONIC grinding as an option. This way, Inconel components – for example, the blades of a drill bit – can also be built up generatively here and then finished in the required quality. For this purpose, only the ULTRASONIC grinding tool is inserted into the

standard spindle via an automatic tool changer. With the combination of technologies, DMG MORI can virtually double productivity. After all, there is no longer any need for eroding on the one hand while on the other the service life of tools is noticeably increased due to the reduced process forces. Highlights LASERTEC 30 SLM • Generative manufacturing in the powder bed with volumes of 300 × 300 × 300 mm • Application-specific fibre laser sources of 400 Watt to 1 Kilowatt • High-precision build-up of 3D components with layer thicknesses of 20 to 100 μm • Integral powder conditioning

system for even more efficiency and material utilisation and minimisation of particulate matter formation • Optimum process chain for subsequent machining on DMG MORI machines – for highest component accuracy and best surface finishes Highlights of the LASERTEC 65 3D • Best surface finishes as well as component precision • Laser deposition welding with powder nozzle: 10 times faster compared to powder bed processes • 3D components with diameters up to ø 500 mm without any supporting geometry, even with overhanging contours • Process-independent software module • Defined laser deposition even on milled surfaces Highlights of the LASERTEC 4300 3D • Unique: Laser deposition welding and 6-sided Turn & Mill complete machining • Generation and machining of workpieces up to 660 × 1,500 mm / 1,500 kg • Precise NC-controlled deposition welding also of different material combinations, e.g. copper on Inconel for the aerospace industry •10 x faster material deposition compared to powder bed processes or galvanising. The exchangeable powder module means it takes less than two hours to change the powder.


May 2017

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Sigma Electric wins 5S Excellence Award 2016-17 Niteen Inamdar, Executive Vice President and Chief Operating Officer, Sigma Electric said “I am proud to say that we have stood second in 5S Excellence Award conducted by CII for western region for 2016-17. This award establishes us as a world-class facility that provides quality and performance at par with global standards. I congratulate the entire workforce and management for their support and commitment towards 5S practice.”

Sigma Electric Manufacturing Corporation Pvt Ltd added another feather to its cap by winning second place in the coveted 5S Excellence Award for 2016-17, conducted by Confederation of Indian Industry (CII) for Western Region. The award was given away at a one-day seminar on the Best 5S Practices conducted on April 18, 2017.

This year over 50 manufacturing companies from diversified sectors and cities participated. Organizations that conform to 5S standards are put through stringent tests and audits to assess overall compliance with 5S standards and norms. 5S certification is widely accepted as definitive proof of an organization’s efficiency, the quality of workplace and good performance in their field.

5S awards are given based on an organization’s level of compliance with all the guidelines laid out in the 5S system. Initially developed in Japan and adopted by manufacturing industries worldwide, the 5S system was later widely adopted by other industries including the service industry. The 5S system is a method of workplace organization built around five Japanese words ‘seiri, seiton, seiso, seiketsu and shitsuke’. In English, these words translate into ‘sort out, set in order, shine, standardize and sustain,’ - hence the term 5S.

Daifuku India wins Global Logistic Excellence Award Daifuku India has been recognized as the Warehouse Automation Achiever of the Year for Automated Storage and Retrieval Systems at the inaugural Global Logistics Excellence Awards, organized by Tata Strategic Management Group in association with India’s CNBC TV18 network. The awards ceremony is part of The Economic Times Global Logistics Show which was held from April 17-19, 2017 in Mumbai. The Global Logistics Excellence Awards recognizes the achievements of enterprises in the logistic sector. Daifuku, has presence in India for more than 11 years and offers complete solutions, manufacturing, installation and support to the logistics industry. 60

Daifuku’s AS/Rs provides versatile material handling solutions for factory automation as well as warehouse and

distribution centers. The company has achieved highest number of AS/RS installation in short span of time. May 2017

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Easy Tool-ID from Balluff for Tool Management data are written via RFID technology from the presetter to the tool and then passed on through the Easy Tool-ID system to the machine tool. Manual entry is eliminated. Setup times and the risk of incorrect entries are significantly reduced. The system consists of a tool stand with integrated read/write head, a processor unit, a microcontroller and the power supply.

Balluff offers Easy Tool-ID for economical entry level solution for tool management which prevents wrong tool allocation or tools from missing therby increasing production efficiency. Using Balluff’s industrial RFID technology, Easy Tool-ID Easy helps in optimizing the service time utilization of

the tools. In addition, scrap and rework due to excessive use of tools are virtually eliminated. The product is simple to retrofit and stands out with easy installation and configuration. A USB port (keyboard expander) on the machine tool and a presetter are all that is required. The

Balluff has made the solution’s handling and functioning easy. At the tool presetter, each tool is measured and its data, such as diameter and radius, are written on the data carrier on the tool shank. The user simply brings the tool to the machine, places it in the tool holder and presses a key. The system then emulates the key input and automatically reads the data with the Balluff Tool-ID through the keyboard interface to the machine controller. The cost effective solution has enabled modernising and upgrading of even existng machines.

Cloud Solution for Remote Drive Monitoring by NORD SYSTEMS Illustration: NORD has developed a cloud solution for remote drive monitoring and analysis (pictured: application test center in Bargteheide, Germany) NORD SYSTEMS offers solutions for making drive data available in rela time in a cloud environemnt. The solution is especially aimed at IoT driven machine plant engineering. With this solution all drive axes can be monitored from anywhere in the world via an Internet connection. The concept was first deployed in the application test center at the German NORD headquarters, where it has been thoroughly tested and has proven its reliability in a drive network utilizing standard interfaces and components. AC vector drives and motor starters controlled via Profinet 62

simultaneously transmit live status data in UDP packets, on the same bus line, without affecting regular control communication. The cloud-enabled drives send data about their power consumption, speed, and voltage, as well as the status word. Tunneled through a Siemens PLC, all of this information is transmitted to an IoT gateway and on into the cloud. Status data can then be analyzed for energy profiling, asset management, and remote maintenance purposes. Of course, any overload and error states can be visualized. The drives can also transmit additional application data into the cloud at any time - for instance, data of connected sensors and actuators. Moreover, other parameters

can be derived from available status data, notably current oil temperatures. NORD has successfully validated this in initial tests. Such data allows for conclusions about lubricant aging that can be used for predictive maintenance. NORD continues to work on and further refine IoT-related and Smart Factory concepts.

Novel NORD drive solutions that have already been available for some time include economic condition monitoring implementations based on virtual sensors. NORD presents these applications as well as product innovations at Hannover Messe 2017 in Hall 15, at Stand H31. May 2017

Supreme successfully installs ERS system at Ghaziabad

Supreme, a leading Indian manufacturer and solutions provider in the electrical transmission and distribution, successfully completed installation/ erection of 3nos. Emergency Restoration System (ERS) towers to bypass an existing 132kV S/C line at Vaishali, Ghaziabad. ERS structures are designed to rapidly bypass permanent transmission towers at any voltage in any terrain. This is an indigenous development by an Indian Company. In Ghaziabad, an existing 132kV Single Circuit Transmission Line (Vaishali to

Sahibabad, Triangular Configuration, ACSR Panther) was scheduled for an up-gradation with Multi-circuit TL using ACCC Conductor. In the whole stretch, a line length of 1800 circuit metres, which passes through a residential and heavily crowded commercial area in Sector 2 of Vaishali, was at standstill and lying abandoned after completion of foundation works since January 2017. The stretch needed a shutdown for a minimum of 10 days for completion of installation/erection of 2 Nos. Multicircuit Towers and stringing to follow. Supreme conducted a 2 stage survey (initial and detailed) before and after the contract was awarded. The technical team analysed to install 3 ERS, of 30M height in view of the multi-storeyed mansions and residential apartments. The Bypass Arrangement line was installed on 3 ERS Towers with vertical configuration, ACSR Panther, E/w (7/3.15 GI Shield Wire) and associated accessories. The operational works were completed within 3⅟2 hours without using any heavy earth movers, followed

by stringing which required a shutdown of Distribution Lines 33/11kv passing by for a period of 2⅟2 hours. The bypass line is in charged state since then serving utility customers without suspension of service. This new experiment will play significant role in promotion of line up rating by re-conductoring of old lines without necessitating the need for new ROW. Supreme made two live demos with Installation of 45 Metre ERS at their factory in presence of experts from different utilities and EPC contractors. Different suggestions received from the experts during live demo have been incorporated in the final product. The company with its dedicated team is now ready to provide the services required for erection of ERS Tower on rental and service basis. The modular and reusable Supreme ERS structures consume significantly less time for installation is suitable for hand installation method. The structures do not require any special foundation and are also suitable for any soil, and capable for use at any voltage.

Modular Industrial Gear units in additional sizes The new industrial gear units greatly increase the possibilities for configuring application-specific drives in the load range up to 20,000 Nm, for example with a dual gear setup and swing base With these latest additions to the line-up, the series now comprises 11 gearbox sizes that deliver output torques up to 250 kNm. The NORD industrial gear series offers a particularly great variety of configuration options for applicationspecific drive solutions. The modular NORD product range includes dual-gear setups, auxiliary drives, brakes, torque arms, backstops, swing bases, and – as the latest special feature – extruder flanges. In addition, there are a variety of sealing options and solutions for monitoring and temperature management. The gear units can be mounted on all six sides. Gear ratios can be configured in fine increments from 5.54 : 1 to over 30,000 : 1 – with two, three, or four gear stages, and with an auxiliary primary May 2017

gear stage if so required. All NORD industrial gear units feature a singlepiece UNICASE housing. This ensures excellent longevity, a very high power density, compact dimensions, and high overload capacities. Combining industrial gear units with motors and drive electronics, NORD configures complete drive

systems for heavy-duty operation in conveying systems, pumps, and agitators. Designated major application fields for these units include bulk handling, the cement industry, steel industry, process engineering, woodworking, sugar processing, and wastewater management. For more details:

At the 2017 Hannover Messe exhibition, NORD DRIVESYSTEMS will present two new gearboxes for nominal torques of 15 and 20 kNm. 63

Germany’s Chancellor visits SCHUNK, the Winner of the Hermes Award 2017 SCHUNK, the competence leader for gripping systems and clamping technology of Lauffen, Germany started off the Hannover Messe with a brilliant success: At the opening of the world’s leading trade show by Germany’s Chancellor Dr. Angela Merkel, Prof. Dr. Johanna Wanka presented the innovative family-owned company with the Hermes Award 2017, one of the world’s most prestigious technology prizes. On her tour of the exhibition on Monday, Chancellor Merkel visited the SCHUNK booth, and looked on while the Managing Part-ner/CEO of the familyowned company, Henrik A. Schunk, presented smart gripping mod-ules that enable direct human/robot collaboration (HRC). With its HRC grippers of the SCHUNK Co-act series the Swabian technology forge has made an important contribution to production systems of the future. The company received the Hermes Award for the SCHUNK JL1 Co-act Gripper, the world’s first intelligent gripping module for human/robot collaboration that directly interacts and communicates with humans. Henrik A. Schunk sees the award as a milestone in the history of the group of companies: “My team and I are proud of the success of the SCHUNK JL1 Co-act Gripper, which is a decisive step on the way to highly flexible handling scenarios for In-dustry 4.0 and therefore for smart production.”

For the first time in the history of the Her-mes Award, the prestigious trophy was awarded for a gripping module. The award was given at the recommendation of an independent jury headed by Prof. Dr. Dr. h. c. mult. Wolfgang Wahlster, Chairman of the Management Board of the German Research Center for Artificial Intelligence (DFKI). In 2015, SCHUNK had made it among the top five for the Hermes Award, and therefore was at the leading edge of technological innovation, back then with SCHUNK eGRIP, a web-based 3D design tool for additively manufactured gripper fingers. Intelligent robot gripper In recent years, the leading supplier of technology for robots and production machines has been driving the digitalization of industrial production with its smart components. Within the world’s most comprehensive spectrum of gripping systems and clamping technology with more than 11,000 standard components, the SCHUNK JL1 Co-act Gripper defines the peak of what is technologically possible. The HRC gripper, developed with the guiding principle of Industry 4.0 in mind, features a decentralized control architecture, which was de-signed according to the RAMI 4.0 guidelines. Like no other gripping module it uses its ex-posed position “closest to the part” and “closest to the human” to achieve maximum effi-

ciency and functionality in human/robot collaboration. Complex sensor systems and artifi-cial decentralized intelligence, which are fully integrated in the gripper, allow it to constant-ly gather information about the component being gripped and about the environment, to process this information and to execute appropriate responses based on the specific situation. For this purpose, the gripper is equipped with innovative kinematics, which enable both parallel and angular gripping. This allows maximum flexibility in the handling of alter-nating component variants. Tactile sensors in the fingers monitor the gripping process to ensure reliability and adapt the gripping parameters independently to prevent damage to sensitive components. Specially developed gripping strategies allow the sensitive gripper to adapt its behavior in real time, depending on whether a workpiece or possibly a human hand is gripped. Safety aura for collaboration with humans The intelligent gripping module paves the way for highly flexible HRC scenarios in modern production processes. Compared to existing solutions the SCHUNK Co-act Gripper is de-signed for much higher diversity and flexibility. The integrated safety aura allows unlimited use and handling capabilities of the robot in the direct vicinity of humans. Separating safety devices are unnecessary. All situational, environmental and operating conditions are moni-tored by means of several “senses”. An integrated miniature PC immediately analyzes pro-cess data in order to respond virtually in real time and also as a basis for self-learning. The gripper enables automation of tasks that previously were performed manually, therefore boosting efficiency. At the same time, the inline data acquired from the production cycle and derived information can be sent continuously to higher level systems for constant improvement or control of the processes.

Angela Merkel visited the SCHUNK pavilion at Hannover Messe and learned about the future of smart production


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May 2017

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