OCTANE-The Octaphi Newsletter Volume 06, Issue 03, July 2017.
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“Be sure you put your feet in the right place then stand firm” – Abraham Lincoln.
Quality: Key to Achieving Operational Excellence Quality is not the new term but it had been chasing since ancient times. In history, we can see there is the mentioning of chasing the perfection all along whether it was the sculpture of statue like Khajuraho or building of palace like Taj Mahal or making of weapons, the sword of Maharana Pratap for example or benchmarking in the way of ruling of state like Ram Rajya. Yet at that time with the lack of modern machinery, infrastructure, and demand there were the lack of efficiency and effectiveness as most of the work used to done manually and there was nothing called standard around which the things could be compared or measured. From the past, few centuries the thing has changed significantly and the term inspection and quality control becomes very familiar with every need and demand along with availability and supply of products and services. After industrialization, especially after World War II, the meaning of quality and its management has changed quiet lot. With the introduction of Information Technology, the quality professional is more concerned with providing relevant information on real time basis to meet the organization’s goal. In quality management, there is almost equal emphasis given on fairness and objectivity for the determination of appropriate quality procedures. Development of various Standard in the segment of products and services make the life easier worldwide from the reliability, availability, and replicability point of view. Generally accepted quality procedure (GAQP) known as ISO 9000 has promoted standard quality reference for products and services which is well
popular and widely acceptable. The application of Quality and related philosophy has great importance form the personal prospects to the organizational and global point of view. Many of the quality gurus, Juran, Iishkawa, Fleming, Gilbirth for example, have contributed significantly towards the evolutions, developments, and implementations of such philosophy towards real life application. Time and again, world has documented the significance of Total Quality Management in sectors including manufacturing, health and safety, and educational institutions. Source: Inbound Logistics, 2017
~ Swatantra Shandilya (15 JGBS)
GST: Boon or Bane for Logistics Companies GST a buzz word these days which is all ready to be implemented from 1st of July, is going to bring a change in the operations of all the companies. As a result, all companies are planning and restructuring their ideas to increase their profitability and as far as ecommerce sector is concerned they are now able to expand their presence across the country. GST implementation will bring in agility as transition time, paper work will reduce, thus benefitting
Industry Facts Lean Inventory Management Attributes: Demand management Costs and waste reduction Process Standardization Industry Standardization Cultural Change.
Cross-enterprise collaboration.
logistics companies, which in turn also benefit the consumers by these cost savings. GST will improve collections by enabling a shared national market and will also eliminate double taxation. Generally, this service providing sectors pay service tax for their various services but with GST, a value addition considered for the cost of these services, and the manufacturer will be tax benefitted for the paid taxes. Currently to avoid interstate taxes, companies are more focused to have different warehouses in different states, but after GST implementation, India is considered as a common market with no difference between intrastate and interstate sales. As a result, the focus will shift from tax saving to increasing overall efficiency. GST will also impact transportation as octroi duty, number of days and carrying cost will change. This will also lead to reducing taxes on manufactured goods as a single rate will now exist for all goods and services and hence the final price of the product is also impacted. Source: India Warehousing Blog, 2017
~S. Kumar Jagannath (16 JGBS)
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How it all Began
In this issue
OCTANE-The Octaphi Newsletter
For previous issues visit: http://issuu.com/octaphi/docs Crossword Puzzle
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Omni Channel Retailing: A New Buzz in Logistics Industry As the E-commerce sector is growing rapidly, and so the way the consumers interact with the retail businesses. Today the customers are well acquainted to a seamless shopping experience whether it may be single channel or omni channel. Also, the industry is focused more on the customer satisfaction and this leads to bring in new and convenient ways of buying and shopping, as online buying or showrooming i.e. in store trying of product and then online ordering and getting delivery at home or order placing through mobile apps and getting assurance for availability and delivery with all relevant details i.e. costs and delivery time. These new ways are forcing retailers to modify and reconsider their methods of transportation. To deal with this the retailers are trying to change their business models to gain better understanding and visibility around their transportation plans, inventory levels and distribution locations. They are focusing on shortening the length of hauls, increasing number of shipping locations and getting visibility for shipments in transit. All these efforts are to improve customer service and it will also reduce shipping costs but increases the risk of inbound costs. Also, proper selection of locations and distribution/fulfillment centres is to be done while considering their modification. Selling in peak season drives volume by 10 times or more than normal workload. With this inconsistency in workloads, the staffing requirements also swings and can impact on cost and savings. Even if we go for temporary labour option, then also it comes at premium price with less efficiency. All these concerns and complex business processes can be addressed through technologies which facilitate better management and increases operational efficiency. With adoption of omni-channel way, the retailers must use tools such as TMS, YMS and WMS for facilitating real time visibility and managing the inbound logistics side. Source: Supply Chain Brain website
~ Pranita Jain (16JGBS)
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Clues: Across: 1. Planning charts used to schedule resources and allocate time. 3. Making most of the resources by maximizing the output from a given level of input. 6. Technique used in manufacturing where product is created stage by stage over a series of workstation. Down: 2. Storage between stages where the output of a stage is placed prior to being used in a downstream stage. 4. A period when machinery is not being used as a result of maintenance. 5. The process whereby teams attack a manufacturing operation to make a series of quick, small steps to improve the process. 7. The maximum possible output that can be produced with the given resources. 8. The art and science of predicting future events.
~ Harsh Jain (13 JGBS)
Student’s Feedback Corner This newsletter is the one stop destination of all the updates in operations and supply chain industry, along with interesting facts and crosswords which certainly attracts me. ~ Amol Gupta (16 MDI) Reading Octane is like reading news in shorts, well it’s as the articles written are informative, short, and lucid. Want to get quick updates then subscribe to this newsletter. ~ Rohit Sharma (15 IIM-L)
Editorial Board: Saroj Koul, S. Kumar Jagannath Jindal Global Business School, Delhi NCR Contact us:
octaphi@jgu.edu.in
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Answers – Vol. 6, Issue 2:
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Across: 1. SCRAP 2. CAPACITY 3. LOGISTICS 4. OVERHEAD 5. SOURCING Down: 6. POOLING 7. BUFFERS 8. UTILIZATION 9. WIP – WORK IN PROGRESS. 8. PROJRCT
How it all Began…………..