OPSESSION | Volume 4 | Issue 1
Cover Story: Cost Saving with Sustainable Supply Chain X-Ops Conducts BURNOUT 17
Opsession
Increasing Operational Efficiency in Manufacturing Industry
June Issue Introducing Volume 4, 1st Issue of Opsession, the X-Ops Monthly Newsletter. This Periodical aims to bring some of the key happenings in focus and spark discussions around them.
Xavier Institute of
OPSESSION | Volume 4 | Issue 1
Around the World with Operations Management UPS Invests in Reverse Logistics Specialist Optoro UPS has formed a strategic alliance with Optoro, providing a one-stop shop solution for retailers and manufacturers to optimize the transportation and disposition of
timeframes, a TMS platform that automates the transportation component can literally be worth its weight in gold once fully optimized. According to recent ARC research, TMS users achieve an average freight savings of 7.5 percent thanks to increased usage of preferred carriers, better
Sanofi redesigned its distribution networks for the complete Brazilian market and the corresponding export processes. The development of the new site means investments of 200 million Euros between 2015 and 2020. Already today, it is one of the largest distribution centres of Sanofi worldwide and the largest operated by DHL in Brazil for the healthcare sector. “The objective of this project was to simplify and enhance Sanofi's storage operations and distribution network in Brazil by consolidating these operations into a single distribution centre.
Fujitsu and DHL use IoT to disrupt the logistics market
returns and excess inventory. The companies’ joint reverse logistics solutions combine UPS’s operational and logistics expertise with Optoro’s software platform that maximizes recovery value and reduces environmental waste.
procurement negotiations, and use of lower-cost mode selections.
DHL establishes Supply Chain Distribution Centre in Brazil
Fujitsu today announced a strategic cocreation partnership with DHL Supply Chain UK to develop new services based on wearable technology and the Internet of Things (IoT).
Building on its successful managed procurement services collaboration with DHL, which provides a new business DHL Supply Chain, the contract logistics specialist within Deutsche Post approach to procurement solutions including uniform and protective Cloud-Based Solutions Are DHL Group, consolidated the equipment, Augmenting TMS logistics Fujitsu will operations of share its Tasked with managing a shipper’s three Sanofi industry and routing, scheduling, carrier selection, divisions in technology load tendering, and shipment Brazil by expertise to consolidation capabilities, establishing a jointly develop transportation management systems new innovative (TMS) are increasingly seen as one of distribution solutions that the most important tools in the evercentre in improve safety changing, omni-channel distribution Guarulhos, for emergency environment. near Sao Paulo. services, whilst The project, initiated delivering operational efficiencies. With carrier capacity, an ongoing issue, by Sanofi in 2014, covers all portfolios Fujitsu and DHL also plan to use the of Sanofi, Sanofi Pasteur and Medley an epic driver shortage looming, and partnership to drive the creation of Brazil. In addition to the Operation of customers expecting their goods to entirely new markets in other sectors, the newly installed logistics centre, arrive within Amazon-esque such as airline logistics.
OPSESSION | Volume 4 | Issue 1
Sustainable Supply Chain Set To Bring In Significant Savings from Spectrum of Transactions which needs space and further resources for management. On the cost pressure in almost all of their operational activities. Cost reduction contrary understocking causes thus often becomes the driving force distressing emergencies, costly expedited shipping and potential in many of their decision making processes. Intense cost cutting has its disaster for unsuspecting patients. These incidents highlight the own sets of pitfalls: reduction in necessity to standardize the order number of experienced employees, placing process and move towards a collective knowledge, disgruntled suppliers are just to name a few. It also just-in-time model of managing makes the organization less attractive inventory. Decentralized purchasing and may trigger the vicious circle of a process, difference in standard supplies, and lack of standardization downward trend. One can take the example of Sears, once the largest retailer of US, to understand the negative connotations labelled with rampant cost cutting.
Today’s Organizations are witnessing
Keeping these considerations in mind, sustainable supply chain management can be critically important for organizations where number of transactions is relatively high. Healthcare providers, specifically the hospitals, can derive substantial benefit by employing sustainable supply chain management practices across their operations and save millions in turn. Ordering regular supplies play a major part in smooth running of a healthcare facility. But the order management process can broadly vary from one place to the other. If the supplies do not get consumed as they arrive, issues relating to overstocking, inventories begin to crop up. Overstocking may lead to expiration and thus tying capital in inventory
give rise to the operational silos in a large organization. Supply chain transformation can begin with centralization of all the purchasing procedures that take advantage of entire spending budget and negotiating power of the organization. Standardization follows once the consolidation is complete. In this step, potential opportunities for renegotiating contracts are analyzed. Negotiating a single standard price for the entire set of products result in significant savings and simplify the
overall process. Supply chain leadership partners handhold their organizational counterparts to bring about improved decision making driven by cost, quality and outcomes. Engaging stakeholders from the ground to top level is critically important in this overall transformation process. Implementation of new Enterprise Resource Planning System can help the organizations to overcome many of the challenges. It can assist in acquisition and delivery of standard supplies to all the facilities. Use of Barcode to manage the product from its entry to usage, predictive future usage and replenishment models can increase the overall utilization of resources while maximizing the efficiency of the procurement process as a whole. It can also plug in most of the leakage points in the acquisition process and aid to get the best deal customized for the organization. Many renowned organizations from across sectors like IKEA, NYC H+H have already incorporated this model of SCM in their very strand of DNA and deriving benefit from all their supplier transactions. Organizations facing headwinds from several directions can consider this model to improve their operational efficiency.
OPSESSION | Volume 4 | Issue 1
Increasing Operational Efficiency in Manufacturing Industry using Internet of Things (IoT) Consistently developing new technology systems and gadgets with IP address that seamlessly connect with each other are causing a revolution in the traditional manufacturing industry. Internet of Things (IoT) is not a mere buzzword anymore; rather IoT is the trend which is being widely embraced in the industry as an enabler to cut down on waste, improve productivity as well efficiency. American Society for Quality (ASQ) reviewed the results of manufacturing organizations that have digitized their procedures and it observed there has been tremendous improvement across the set of performance indicators. The overall improvement leads to far less anomalies in production and much higher customer satisfaction. IoT also helps to optimize the manufacturing process by enhanced inventory control, better supply chain and energy management processes.
IoT has the capability to generate enough number of data points from which can be utilized for better decision making purposes. By exploiting the interconnectivity amongst the devices, manufacturers would be able to identify energy usage pattern at the most comprehensive manner. It helps to determine possible points of failure, causes of waste and also aids in taking required corrective measures. Real time profiling allows effective scheduling to optimize device utilization and creates opportunities to save resources whenever possible. IoT also makes the case of benchmarking relatively easy by unearthing defects beforehand. Manufacturing Industry is asset heavy which requires intensive preventive maintenance in a timely manner. It incurs significant additional expenses for the firms which can virtually be eliminated by using IoT. IoT can enable the firms to intensively monitor and gather data about the
complex machines and installations. This data can be used to generate alerts well before an actual maintenance might be necessary. Predictive maintenance backed by IoT can effectively replace resource intensive preventive measures, thereby save cost and eliminate any downtime altogether. IoT can also bring in an additional wave of behavioral change in the workforce. Diminished wastefulness, accurate measures of critical indicators, increased efficiency and productivity can usher in a new generation of leaner management practice and associated corporate culture. Automated data gathering, regular benchmarking, detailed process insights enable the decision maker to arrive at profit focused decisions faster and with superior accuracy. IoT has the promise to cut cost in places which were not possible earlier and thus it can make the firms compete better. Like assembly line penetrated the whole manufacturing industry heavily since industrial revolution and provided the competitive edge required for the sector, IoT has the similar capacity to become the next must have in the manufacturing environment of today. Firms are accepting this new reality and bringing in IoT to leverage its capability in uplifting production performance and secure their share of incremental profits and cost savings. As an example, General Electric expects to generate around $19 trillion of profits and cost saving over the next ten years due to its pioneering IoT initiatives.
OPSESSION | Volume 4 | Issue 1
X-Ops Conducts BURNOUT’17 X-Ops, the operations committee of Xavier Institute of Management has always assayed for better learning opportunities for students and encouraging them to tax their brains. For the Holistic development of a budding Operations Manager, the Operations Society of XIMB, X-Ops recently organized an Automobile Quiz Burn-Out’17 to challenge the budding quizzing minds of the students in the University. The dynamic nature of the competition required the contestants to not only be abreast with the basic knowhow of the Automobile world, but also be aware of changes happening in the automobile industry. Burn-Out was organized to give the students a fresh start to the new academic year and force the contestants to grind their brains to win the event. The event was conducted in two phases and focused to test the
knowledge of participants across various sectors of the auto world ranging from history to modern concepts of operations management and robotics. The first round of the event was conducted on 16th July, 2017. It was an offline prelims round which saw a huge number of participation from both the first year and second year. It was conducted as a basic elimination round for the final round of the Quiz. The quiz comprised of 20 questions without any time constraint with the objective of selecting the most capable candidates. The questions ranged from a plethora of topics, starting from history of automobiles, specific designers, and calendars to popular cars and sports. These topics tested not only the knowledge on trending topics but also about its history. The prelims received a good feedback from the participants.
After the quiz a total of 7 teams were selected for the final round. The second or the finale round was held on the same day with the 7 finalists battling it out to get the coveted prize money. It was a very close fight amongst the finalists with fierce battle between the teams Alpha of XIMB 2nd year and Triple Star from XIMB. In the end, Alpha comprising of Amit Mohanty edged out Triple Star led by Raunaq Sahu by a clear margin and were declared the winners.Triple Star finished runners-up followed by Master Blasters from 1st year. The sincere efforts put in by the organizing team made Burn-Out’17 a success and was a good learning experience for the participants.
OPSESSION | Volume 4 | Issue 1
EDITORIAL TEAM EDITOR:
Anindya Basu
CONTENT:
Samar Nanda Anindya Basu
COORDINATOR:
Opsession Monthly XIM, Bhubaneswar
Praveen Dash