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OCTANE-The Octaphi Newsletter Volume 03, Issue 03, October, 2014
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“Su
Annika Alftan
Open Interview Mr. Lakhbir Singh, Deputy General Manager Danieli Automation
Q1: How would you define Manufacturing Execution System (MES) to a layman? Answer: MES, expanded as manufacturing execution system, is a real time/online shop floor information system that drives effective execution of manufacturing operations by providing links between shop floor instrumentation, planning and control systems, process engineering, production execution and sales force. Q2: Why do you think the role of MES is significant in a steel plant? Answer: In complex process plants like that of steel, no matter how comprehensive the planning could be, execution doesn't always go according to plan due to forecast inaccuracies, capacity bottlenecks, or process interruptions/ inefficiencies. Also, both ERP and Process control systems are working as independent isolated systems with little interaction between the management staff and plant process engineers. As a result, there exists a wide information gap, which is untenable in today’s competitive world when customers expect instant fulfillment of orders at globally competitive prices and the highest quality. Hence there is a clear need for a set of systems that seamlessly bridge this gap. MES is surely one of those systems which can help us overcome this gap. It provides a solution to steel industry that can improve all areas of the manufacturing process including better performance, higher consistencies and quicker response to adapt needs from customers, suppliers and internal processes.
Q3: Could you please elaborate the role and functioning of MES in Integrated Steel Plant? Answer: The system is designed for accounting and management of people. MES tightly integrates plant floor events with business events, empowers plant personnel with real-time/on-line shop floor information. It pulls information from the ERP system and creates a practical manufacturing plan based on prevailing shop floor conditions. Subsequently, it delivers information that enables the optimization of production activities from order launch to finished goods. Using current and accurate data, MES guides, initiates, responds to, and reports on plant activities as they occur. So, it basically gives a global, high-level view of how overall business goals are planned to be met. Q4: Can you give us examples of some big steel plants which are using this MES System? Answer: Steel plants including Tata Steel, JSW, JSPL, and POSCO have already implemented MES in their organization. Q5: In your words, can you tell us how can this system help in accelerating return of investment? Answer: This is an integrated system which will show real returns from the ability to monitor in real time. It provides key performance indicators on productivity, quality, yields, and throughput. It also helps in managing inventory locations and raw materials through remediation processes to isolate and or rework nonconforming products. Hence to sum up, MES functions as the central repository for data distribution and collection for all other enterprise systems.
~ Prashant Dwivedi, 13JGBS
What’s New? FedEx, the logistic giant is ranked no 8 in Fortune’s list of world’s “most admired companies 2104”.
How does a 3PL become a 4PL?
By focusing on leveraging the right technology and taking a collaborative approach to the 3PL and shipper partnership, a logistics provider can utilize their best practices to the fullest extent to become a 4PL. Key responsibilities and associated benefits of the 4PL: Provide specialized IT platform to facilitate analysis and transform data into valuable business information that helps to reveal new opportunities for innovation. Enable the shipper to utilize strong regional providers (carriers and warehouse operators) without the integration and coordination challenges that normally exist across managing multiple partners. Aggregate information originating from multiple 3PL providers and provide a single view for the shipper of their metrics, inventory, order status, shipment status, billing, and EDI across the network. Serve as the liaison with the rest of the partners in the network to help ensure that the challenges are solved consistently and ideas are shared amongst the providers.
~ Vrinda Sharma, 13JGBS LOGISTIC FACTS? The world’s biggest container ships are about 1,300 feet long with a maximum width of 180 feet. Container shipping is estimated to be two and a half times more energy efficient than rail and seven times more so than road.
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OCTANE-The Octaphi Newsletter
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Puzzle Corner CROSSWORD
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In its fundamental form, Six Sigma is a measure of the number of defects in a specific process. Called as defect opportunities it takes into cognizance three important variables: a) all of the different defects that occur on an assembled part; b) the number of places on that part where the defects can occur; and c) every production step could cause one or more of the defects on the part. For example, while manufacturing small metal cubes the two major defects usually are a crack and a dent. Assume that these defects are found only on two of the cube's six faces and that there are three steps in the manufacturing process where defects can get introduced. Thus, there are several opportunities for a defect to occur: 2 x 2 x 3= a total of 12 opportunities. If cracks or dents are in 5 percent of the metal cubes that come off the production line, number of defects per opportunity is .00417 (.05 divided by 12)A and defects per thousand opportunities is 4.17 (.00417 x 1,000). 1
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Submission by :- November, 2014 to octaphi@jgu.edu.in
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To give such numbers meaning, Motorola set up a scale to evaluate the quality of a process based on these defect calculations. At the top of the scale is Six Sigma (3.4 DPMO or 99.9997% defect-free) meaning that if a process is running at Six Sigma, almost all defects are eliminated. Also, as most processes do not run at Six Sigma, they may run either at Five Sigma or Four Sigma or less. To get an appreciation, the scale is as follows: DPMO 3.4 233 6,210 66,807 308,538 691,462
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Accurate determination of quality was possible; for Motorola’s Six Sigma initiative by providing for defects per million opportunities (DPMO). It eliminated errors due to small sample size. So for the metal cubes example, the number of defects per million opportunities is 4,170 DPMO (.00417 x 1,000,000).
Sigma Level 6.0 5.0 4.0 3.0 2.0 1.0
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Answers for Vol 3, Issue 3 crosswords: 1. Tardiness 2.Blackbelt 3. Phase 4. Pokayoke 5. Delphi
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Motorola claims that its invented Six Sigma, but the principle behind the methodology - the bell curve, a shape that represent the variation that occurs in a controlled process - dates back to 1809. Variation is the deviation from expectation. Every process has inherent variation. For example, while making widgets, every widget may vary slightly. Or while signing one’s name; every signature contains subtle differences. Variation though inevitable, too many lead to a kind of defect. The trick is to limit it.
% defect-free or 99.9997% defect-free or 99.98% defect-free or 99.4% defect-free or 93.3% defect-free or 69.1% defect-free or 30.9% defect-free
In modern manufacturing settings, performing these calculations is not counting up the defects. While the mathematics was being developed at Motorola, side-by-side a problem-solving methodology were also getting established. It continues to evolve and change. Some of those changes involved the addition of new tools that were developed and refined in practical, real-world situations. At first, Six Sigma remained an internal initiative at Motorola. But soon other companies adopted the concept. Two early adopters were Allied Signal and GE. Today, most companies use Six Sigma to optimize business processes and increase profitability. Small and Medium companies have access to all of the benefits that come with Six Sigma implementation.
~ Nagraj NB, 14JGBS
Stock of material Goods or material for delivery Outsourced logistics service In movement Verification or checking of goods
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1 Japanese term for continuous improvement 2 Classifying item 3 Movement of people, material and goods 5 Excess stocks to eliminate shortages 6 Schematic representations 7 Suppliers 8 Produce goods or material
By: Saurabh Sao, 14JGBS
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Corporate Feedback Corner “I like the clarity and variety of OCTANE. I read it for the first time in April 2013. I found it so interesting that since then, I have not missed even a single issue.” ~ Sorabh Bajaj, Tech Mahindra
Student Feedback Corner “I am a regular reader of this newsletter. I really like it. It keeps me updated on new literature that is coming up in operations management and I really like crossword puzzle.” ~ Joy Mitra, 13JSIA
The Octaphi Operations Management Club of Jindal Global Business School, for the 3rd consecutive year has received the MOST ACTIVE CLUB award. This award for the year 2013-2014 was presented by Ms Indira Jaising, Senior Advocate, Supreme Court of India, Ms Lise Grande, UN Resident Coordinator & UNDP Resident Representative in India, Mr. Rajan Kumar Gupta, Additional Chief Secretary, Government of Haryana and Professor of Law, Jayanth Krishnan, Indiana University, USA.
Editorial Board: Saurabh Sao; Karishma Wadhwa; Saroj Koul (JGBS) Contact: octaphi@jgu.edu.in
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