In this issue Book Review Industrial Review Student Articles Puzzles & Events
Volume 02, Issue 02, July, 2013
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“In the end, all business operations can be reduced to three words: people, product and profits” - Lee Iacocca
“THE ECONOMIST GUIDE TO SUPPLY CHAIN MANAGEMENT” by David Jacoby [ISBN: 978-1-84668-174-5] Supply Chain Management (SCM) is one of those topic that is difficult to define precisely, though all agree It has the potential to deliver impressive results for those organizations that can implement it effectively. The meaning is an individual perception and emphasis. Even David Jacoby, the author admits to difficulty, and supplies the following quote from Simchi-Levi of MIT ‘SCM is a very broad area and it would be impossible for a single book to cover all relevant areas in depth. Indeed, there is considerable disagreement in academia and in industry about what those relevant areas are”. However a sound working definition from Wikipedia as “the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers (Harland, 1996). SCM spans all movement and storage of materials, work-in-process inventory, and finished goods from point of origin to point of consumption.” Jacoby has overcome the difficulties of definition and provides a sound and comprehensive introduction to the subject, outlining its importance to the achievement of corporate objectives and its contribution to organizational competitiveness. SCM looks at the entire sequence of activities from initial supplier to final customer and aims to provide an integrated approach that delivers the quality and service that customers demand while providing adequate returns for shareholders within the constraints of a competitive environment. Globalization, technology and a more competitive business environment have encouraged huge changes in what is known as SCM, the art of sourcing all the
Components and delivering finished goods to the customer as cost effectively and efficiently as possible. Dell transformed the way people bought and were able to customize computers. WalMart and Tesco have used their huge buying power and logistical skills to ensure the supply and stock management of their stores is finely honed. Manufacturers now make sure that components are where they are needed on the production line just in time for when they are needed and no longer. This guide explores all the different aspects of SCM and gives hundreds of real life examples. If you are a novice to supply chain and often confused by conflicting definitions on what SCM is - and is not read this book. If you are a supply chain practitioner and want some clear markers on designing a comprehensive supply chain strategy, read this book. David Jacoby's experience of over 20 years of strategic consulting on supply chain initiatives clearly comes through in this well-researched piece. All four key supply chain strategies cost rationalization, demand-supply synchronization, customization and innovation that organizations can pursue are clarified. For instance, we often lump DC-Network design and an initiative such as cross-docking under the warehousing function. But how many of us look at the former activity through the lens of cost rationalization, and the latter as an enabler of synchronization. The book also details - organization structure, information systems framework and KPIs that must supplement each of these strategies. And that is when we truly comprehend the completeness of SCM. I would rate the book overall - 4/5. - Book Review by Siddharth Bhatnagar, 12 JGBS
VALUE STREAM MAPPING Value Stream Mapping (VSM) is a Graphical representation of the trial-of-activities that occur from the moment a request is made until the moment that the request is satisfied. Here request means placement of order. VSM allows better understanding & evaluation of the processes of daily work. At Toyota, where the technique originated, it is known as "material and information flow mapping". It can be applied to nearly any value chain. As you eliminate wastes, you create capacity, decrease worker frustration, and most importantly, develop a means for quicker, safer delivery of the care a patient request. Improvement events create localized improvements, value stream mapping & analysis strengthens the gains by providing vision and plans that connect all improvement activities. For any industry, the improvements should come without any investment which is the real meaning of VSM. Anyone can make an improvement with investing a huge monetary resource in big warehouse, a new ERP, increasing the head count etc. To eliminate waste one has to work on the ground level, he/she has to understand the critical situations of the demand of their product in which they are dealing. For Zimmer Ltd., the critical situation is the “lost in sale” and at the same time the competitors having the “same product” available. First we understand the current situation, next implement a plan, and finally sustain it by regular check and follow-ups. To provide optimum value to the customer through a complete value creation process with minimum waste we: Design (concept to customer) Build (order to delivery) Sustain (in-use through life cycle service) - Industrial Review by Nitin Sharma, 12 JGBS I liked the quarterly newsletter and blogs of Octaphi. It has very good articles and concepts. This is good for those who want to take up production management as their career path. - S Sneha, BIBS - Kolkata
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OCTANE-The Octaphi Newsletter
Indian Railways is a vital agent in both upstream and downstream side of the Steel Industry supply chain. From transporting in raw materials and taking out finished product, it has always been a symbol of effective and efficient logistic system. But due to the development of Indian road network, Railways is losing its transport. Let us look into few statistics and the various measures that Railway Board is taking to revamp its market share. The freight traffic for India Railways for Iron and Steel increased from 31479 Net Tonne Km in 2009-10 to 32234 in 2010-11. (Source: Indian Railway Annual Report and Accounts 2010-11). To promote Steel industry to set up their own Railway Siding, the application process has been simplified with a ‘single window concept’ set up in each zone to deals matters relating to Railway Siding. Several other schemes like: Wagon Investment Scheme, Liberalized Wagon Investment Scheme; Wagon Leasing Scheme and Terminal Deposit Scheme, enable private players to set up their own private siding on the rules and norms as stated in the schemes. Due to the need to increase in wagon turn around and higher demand rate, Indian Railways has planned to increase its axle load to CC+2, CC+4. This will help the Railways and the Iron and steel industry to achieve a larger material transportation in an efficient manner and also reducing. Apart from the above factors the Indian Railway in collaboration with Ministry of Steel in setting up plant like ‘Axle Plant’ at Uttarbanga in West Bengal (Source: Ministry of Steel, Annual Report 2010-11). This was just a light touch given to forecast the need of greater relationship between Ministry of Railways and Ministry of Steel for efficient material handling. But the greater need of the hour is to have all the plans implemented on the ground at the target time frame to fulfil the common motive of having an Efficient and Green Logistic network for Indian Industry in general and Iron and Steel Sector in particular. - Tanmoy Chakraborty, 12 JGBS
Five core SCM attributes of successful industry:-
CROSSWORD PUZZLE J S D F E K S A U V
A T W I M R P N N S
B K T L I S L D I M
H I E A R P V E L K
R T R D U N N A G E
C T U I C O N D D S
F I O N D L Y H C X
G N I G R C J E K B
H G F N A D M A S A
I B A C K O R D E R
Answers for Vol .2, Issue 2 crossword: 1. Kitting, 2.Lading, 3. Deadhead, 4. Dunnage, 5. Backorder
INDIAN RAILWAYS AND THE INDIAN STEEL INDUSTRY – A GLIMPSE
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Submission by August 01, 2013 to octaphi@jgu.edu.in Clues:
(R2): Light assembly of components or parts into defined units (R4): The cargo carried in a transportation vehicle (R8): The return of an empty transport container to its point of origin (C5): Packing material to protect a product from damage during transport (C10): Product ordered but out of stock and promised to ship when product becomes available CLUB ACTIVITIES
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