In this issue Guest Article Student Articles Crossword Puzzle Do You Know
Volume 04, Issue 03, July, 2015
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"To improve is to change; to be perfect is to change often" ̶ Winston Churchill
Manufacturing Revisited - Big Data and Analytics Globally businesses are keen to mark an extra edge over there competitors using big data and sophisticated analytics to reveal better insights and ultimately high performance. In the race of competitive advantage, manufacturing industry are way behind others, predominantly - fast-moving consumer goods (FMCG), mining, automotive and life sciences; but now its turnaround time to achieve high level of operational efficiency and proper utilization of present resources and supply chains. Ingenious thinkers in manufacturing industry are using highly advanced analytics tools to: Determine optimal target run for a specific process related to its current loss profile and strategic demand; Analyse machine failures profiles and to scrutinize planned and unplanned losses; and to Classify opportunities for operation optimization and profit maximization by statistical quantification of impact of improvements. The primary source of enterprise data comes from production line. The technology of collecting this data is known as Manufacturing Analytics and enterprises are not taking full advantage of this data to acquire potential insights. However leading companies have already started to make it useful for their improvement and future growth. Major global FMCG companies invest in
production data analytics system to improve productivity and to be competent enough in the industry. From continuous chemical processing system to high-speed packaging systems they are developing new tools to improve manufacturing process. To achieve quantifiable results and substantial growth they have collaborative functions with world’s best R&D firms to use advanced computational data technologies. The data analytics tools use production run data to understand and control the improbability of manufacturing process. They help manufacturers to get better insights to analyse and minimize the rate of defects in production line. Ultimately, this is likely to improve performance so as to provide better quality and quantity in production with substantial savings. To reshape the industry market leaders in manufacturing are equipping there production facilities with advanced tools and adequate skills. To emerge as a more flexible and market oriented manufacturing company with every front of supply chains existing data can reshape the business strategy and decision making. Thus investing resources and leveraging the tools will be a crucial factor for competitive advantage. ~ Engineer C. Sahu, Projects/Design Department. SIEMENS, PPML, DURG.
Four Pillars of Supply Chain Risk Management Supply chain risk management (SCRM) is the implementation of strategies to manage both every day and exceptional risks along the supply chain on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity. Supply—take account of supplier continuity, strategic sourcing, supplier financial viability and capability, material pricing, assessments, fraud, corruption and counterfeiting. Inherent risks are disruptions caused by poor delivery, quality issues, financial failure, noncompliance and communication failure. Demand—covers new customers, market trends, sentiment analysis, demand management, distribution, product integrity, service and scenario planning. Inherent risks are disruptions caused by distribution issues, competitor actions, product reputation, brand management, social media and outbound logistics. Process—includes IT systems, mergers, marketing strategy, firm’s structure, governance frameworks and metrics, supply chain strategy and execution, manufacturing and quality, risk assessments, heat maps and risk war rooms. Inherent risks are disruptions caused by quality issues, inventory shortages, late deliveries, capacity issues, equipment breakdowns, IT outages and misaligned strategies.
“HAZ.MAT” An industry abbreviation for "Hazardous Material" and is the materials that the Department of Transportation has determined to be a risk to health, safety, and property when stored or transported in commerce. It includes items such as explosives, flammable liquids, poisons, corrosive liquids, and radioactive material.
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OCTANE-The Octaphi Newsletter
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. Environmental Landscape—covers government regulations, taxes, economic volatility, currency exchange, natural disasters and compliance. Inherent risks are geopolitical and energy risks, port security, logistics, war, pandemics and civil disobedience.
Crossword Puzzle 1
Reverse logistics (RL) or a return procedures are complex in nature and unpredicted that ultimately leads to service hindrance. Customers prefer not to rebuy products from a supplier with a complex return policy. While a convenient procedure may increase the amount of returned products it will also support a business to attain a better relationship between their Customer Expectation and Cost Effectiveness. Experts consider RL as a core competency and a prime integral factor of business brand marketing. Some of the key factors to build returns as a competitive advantage are: Yes or No to outsource returns – reduces internal burden Evaluate worth of return – helps to balance the economics Management metrics – establish management and control for returns as for all other inventory Contemplate return policies – encourage customers Mitigates the need of return – provide detailed information and review for improved customer decision. Few companies unfortunately consider returns as a necessary evil which gets attention only when it starts hampering the business. Returns link the warehouse accounting and customer service to costly resources in which evaluating and repacking are highly labour-intensive functions. Thus, any sort of lag in this discipline of business will definitely increase cost of RL. Some companies critically emphasize on return policies for building better brand promise. ~ Saurabh Sao, 14JGBS
Editorial Board: Contact us:
Saurabh Sao, Saroj Koul. Jindal Global Business School octaphi@jgu.edu.in
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Across: 1. 2. 3.
Clues:
Answers – Vol. 4, Issue 2:
Balancing Customer Effectiveness and Cost Orientation
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Across: 1. SCHEDULES 2. KANBAN 3. FREIGHT Down: 4. INCOTERMS 5. CAPACITY 6. BACKLOG
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As per ongoing research at Lehigh University about 10 percent of companies are exercising good SCRM practices, 20 percent are talking about and developing good SCRM practices while the rest of the company population are reacting to supply chain risks as an adhoc, event-driven approach. ~ Prashant Dwivedi, 13JGBS
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The time for which machinery or equipment is available. The fee charged by freight terminal on passage of cargo or merchandise through it. A simple yet powerful operational tool used to educate operators to improve product and service quality
Down: 1. 4.
5.
Loss of liquid due to seepage from container in Warehousing and logistics A code similar to Bar code, instead of bars it has Hexagonal dots. The quantity of product that should be ordered so as to minimize ordering, inventory and holding cost. ~ Saurabh Sao, 14JGBS
What’s New? Staples Company found smart-size packaging, a technology that created the right size box for every item shipped from its e-commerce centres. This technology integrates data from the production system using the factory ticket barcode or other inputs so that the most current box style and size is made according to the bill of material.
Do You Know? Q: In $billions, what was the level of US imports of goods from China in 2000 and then in 2014? A: 2000: roughly $100 billion; 2014: $466.7 billion. US exports to China have grown from $16 billion to $123.6 billion over the same period a faster growth rate, actually, but still far short in terms of value.
Corporate Feedback Corner I have been reading the OCTANE on FB since past few quarters. I am impressed by the objectivity of the content. I eagerly wait for the quarterly bulletin. I recommend OCTANE. ~ Krishnan, AIMA
Student Feedback Corner OCTANE is a magazine which keeps us informed about the recent trends in Operations & Supply Chain. The special columns like ‘Do you know’ and ‘What’s New’ are my key points of interest. ~ Ashwathej, 13 JGBS
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