16-08-2015

LECTURE 2

INDIA AND MANUFACTURING EXCELLENCE

Monday 27, 2015

MANUFACTURING POWER
USA , UK , France and Germany the original
manufacturing powerhouses
( Inspiration )
Japan: 1980s through 2000
( Respect )
China : Now the factory of the world.
(Surprise )
> Huge literature available on Japanese Manufacturing
Systems (JMS)
>There are also a number of interesting studies on
how China became the factory of the world

FOR EXCELLENCE IN MANUFACTURING

Who is responsible ?
a) The Organizations ?
Internal and external perspectives ?
b) The Government ?
c) The Society ?
d) Educators ?

16-08-2015

SOME EXAMPLES
INITIATIVES OF ORGANISATIONS
Toyota, Toshiba, Sony, Motorola, TVS ,
Maruti Suzuki , M & M , Rane group
INITIATIVES OF SOCIETY
Japan, Germany, USA ( GM)
Government
Japan , China, Germany and others
Educators
MIT(USA), Warwick (UK)
How about INDIA ? ( NMCC)
Visionary Leaders For Manufacturing ( VLFM)
Societal Manufacturing Programs ( SMP)

ARE YOU AWARE OF ?

National Manufacturing Competitiveness Council (NMCC)
Make in India campaign ( PM Mr Modi)
Make for India ( RBI Governor Dr. Raghuram Rajan)
Manufacture in India ( Swaminathan A Iyer , Editor Economic Times)

MANAGEMENT OF INTENT
Vs
MANAGEMENT OF RESULTS ?

National Manufacturing Competitiveness Council (NMCC)

National Manufacturing Competitiveness Programme (NMCP)
In the 2005-06 Budget, the Government announced formulation of a National
Manufacturing Competitiveness Programme, particularly to support the Small and
Medium Enterprises (SMEs) in their endeavour to become competitive.

The National Manufacturing Competitiveness Council, along with the Ministry for
Industries, formulated a the scheme in consultation with stakeholders.
This Scheme, once put in operation, could help in improving the competitiveness of
Indian firms.

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DESIRABLE INITIATIVES FOR INDIAN

COMPANIES

THE TWO MAJOR MISSIONS ARE

BY 2025
TO ACHIEVE GDP GROWTH OF 25 %

TO CREATE 100 MILLION JOBS

Sales, revenue, cost, profit etc.,

High Capacity Utilization
High Productivity & High Flexibility
Short Throughput Time
High Inventory Turn Over Ratio
Competitive Quality
Attractive & Reliable Delivery
Reduced inventory & Reducing Current Assets
Collaboration & Reducing Fixed Assets

Usually related to :
CUSTOMER RESPONSIVENESS & BUSINESS RESULTS

SOME FACTORS AFFECTING

MANUFACTURING MANAGEMENT DECISIONS
Global Competition
Availability of Resources
Quality, Customer Service and Cost Challenges
Advanced Production Technology
Growth of Service Sector
Government Policies
Economic Environment
Issues of Social Responsibility
TO ACHIEVE EXCELLENCE, INITITIVES WITH COMMITMENT
ARE NEEDED TO HAVE DESIRABLE RESULTS ?

IN SEARCH OF EXCELLENCE
E
m
C

=
=
=

E= mc2
Excellence
motivation
commitment

Example :
c
= 0.5 (Half hearted ) E=

m
c
=2 (Doubly enthused) E
=
4m
Corrollary :
Excellence and Indifference cannot co-exist
Dr Prem Vrat

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IN SEARCH OF EXCELLENCE, WE NEED TO TAKE

INITIATIVES AND HAVE COMMITMENTS
Productivity Management
Quality Management
Lean Manufacturing
Supply Chain Management
Assets , Processes, Resources and Technology
Management
People and Knowledge Management
Financial Management
Project Management
Environment management

VISION

MOTIVATION

SKILL

RESOURCE

ACTION
PLAN

ABSENT

OUTCOME

INDIFFERENCE ?

Vision ?
Motivation ?
Skill ?
Resources ?
Action Plan ?

VISION

MOTIVATION

SKILL

RESOURCE

ACTION
PLAN

ABSENT

ABSENT

CONFUSION

ABSENT

ABSENT

SLOW START

ABSENT

ABSENT

ANXIETY

ABSENT

ABSENT

OUTCOME

FRUSTRATION

ABSENT

NO
PROGRESS

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SHIFTS IN MARKET PLACE

From price to quality
From quality to variety
From variety to individuality
From wait to instant fulfillment

It means a lot to have proper

Manufacturing capability ?

SOME OF THE EXAMPLES

NOKIA Vs SAMSUNG Vs MICROMAX
MARUTI Vs GENERAL MOTORS, TATA MOTORS
AND FORD INDIA
HP Vs DELL ?
HINDUSTAN UNILEVER
ITC
GODREJ COSUMER PRODUCTS
L& T
EMERSON NETWORK POWER
ALL CARGO ( LOGISTICS)

FOR EXAMPLE NOKIA

CHENNAI PLANT :
There were 20 lines
Each line producing 1 handset in < 10 Sec.
There were only a few models ( models
were localized- India, China, Brazil)
They were focusing more on large scale
production because the labor is cheap
BUT ?