Chairperson’s Note
K.J.Somaiya Institute of Management Studies and Research, Mumbai (SIMSR) , is known for its ability to bring about excellent managers and leaders year after year who are not only learning enthusiasts but also have the acumen to think from the global perspective. This all comes about because of the dedicated faculties and world class curriculum specially chosen to raise 21st century leaders. We have seen many passionate students coming to the college with a vision to achieve excellence and make everyone proud. FORSE, the Forum for Operations Research and Supply Chain Team has been constantly trying to bring learning rigour among the Operations enthusiasts and include something new and knowledgeable with every event and activity conducted by them. Their quarterly edition of operations magazine - ‘MOMENTUM’ is another such learning platform which goes from local to global in terms of its theme and content selection. It brings about a comprehensive plethora of knowledge just a click away. Dear Readers , It gives us immense pleasure to present you the 4th Volume of KJ SIMSR’s official Operations magazine. With every edition the team is making our college proud as its viewership is increasing each quarter and reach going global. Dr. J S Lamba Faculty In-charge - FORSE Area Chairperson (Operations) KJ SIMSR, Mumbai
MOMENTUM
March’18
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FORSEian’s Note
Dear Readers, We at FORSE (Forum of Operations Research and Supply Chain Enthusiasts), since our inception we have been devoted to bring out excellence and build the acumen of the students at SIMSR and various other Business Schools by organizing various events , international conference and magazines orbited around supply chain and logistics. MOMENTUM is an attempt to bring enlightening topics and concepts in the field of operations, supply chain and logistics for our readers. It contains the articles based across different themes in each issue. The March 2018 will mark the first anniversary of Momentum and this issue of Momentum will be the 4th edition. Over the last one year, Momentum has covered many topics under many different themes of which some were Future of Logistics and Supply Chain, 3D Printing, Green Logistics and Smart Supply chain. Latest trends and innovations in supply chain with onset of advancement of technology help to streamline processes and define the future of working. Knowing what is going on in the market and which trends may help to make processes more efficient can save cost, optimize capacity allocations and ultimately increase customer satisfaction. In lights of the latest trends and various new research and studies we present our theme for the 4th edition of Momentum as – “Technology Driven Supply Chain.” Technology-enabled processes are providing manufacturers a bird’s eye view of the entire supply line. This comes with its benefits and challenges, and we at FORSE along with our team Momentum would be happy to impart knowledge on the above mentioned topics and subtopics On behalf our team FORSE Momentum team who have worked meticulously to publish this issue, we hope that the magazine gives you great insights and aggrandize your knowledge bank. We look forward to share more knowledge with different themes and topics over the next editions of momentum to come. Happy Learning!! We three along with the entire senior team of FORSE would like to wish team FORSE all the very best for upcoming future editions of Momentum and May Momentum keep imparting knowledge the same way to more and more people. Dheera Varandani Convener
Rohit Soneji Co-convener
Rohit Radhakrishnan Co-convener
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March’18
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Editor’s Note
Dear Readers, “Competition is no longer between companies, but between supply chains” We are glad to present the final edition of Momentum for the academic year 2017 – 18. The topic for this edition is “Technology Driven Supply Chain”. With this edition of Momentum, we wish to show you various aspects of the supply chain and new innovations and techniques that are paving the way ahead in Supply Chain. Our article of the impact of artificial intelligence and big data gives you a glimpse on how seemingly unrelated fields are making big waves in the field of SCM. Other articles on flexible manufacturing, blockchain in supply chain and reinventing the Supply Chain with IoT also give a glimpge into the future of supply chain. We have also included an article on the success stories of famous brands and how innovations in Supply Chain have made these brands worldwide leaders in their own fields. Last but not the least, we would like to thank everyone who has contributed to the magazine and wish for enthusiastic participation in the future as well. We hope we are successful in sharing and wish that Momentum has given you the knowledge that you were hoping for.
Happy Learning, Team Momentum
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TABLE OF CONTENTS Impact of Artificial Intelligence and Big Data on SCM Pg. - 05 Last Mile in Modern Logistics Pg. - 08 Industry 4.0 Pg. - 11 Reinventing Supply Chain with IOT Pg. - 15 Flexible Manufacturing Systems Pg. - 20
Block Chain- Revolution in Supply Chain Pg. - 25 Internet of Everything Pg. - 28 Location Based Services Pg. - 32
Did you know? Pg. - 35 Brand Success Stories in Operations Domain Pg. - 36
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Impact of Artificial Intelligence & Big Data on Supply Chain Management Rohit Khanna IMI DELHI
Supply chain management forms one of the most important branches of operations management. It involves the flow of raw materials, inventory, goods, and information in an efficient manner. There is a lot of hype about Artificial Intelligence (AI) in Supply Chain Management (SCM) these days due to its huge potential. AI is the shrewdness displayed by machines in making decisions. Often people confuse AI with automation. However, both are completely different concepts. Automation may or may not be based on Artificial Intelligence. We are living in a highly connected world where a lot of data is being generated every minute and this big data gives us huge opportunity to optimize and make processes more efficient. This data along with AI helps to understand the purchase patterns and the behaviours to predict the demand for products in future. Retailers can refine product availability and increase the customer satisfaction.
Automation is a hardware or software which is capable of doing repetitive things on its own whereas AI takes decisions on the basis of situations.
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Anticipatory logistics also serves supply chain risk management. AI estimates the maintenance requirements and potential uncertainties, alike transportation and disruption management predictions.
This new disruptive technology of AI and big data is also set to disrupt the logistics industry. It has given rise to the trend of ‘Anticipatory Logistics’ which reduces the delivery time by forecasting the demand before an order is even placed. Manufacturing and transportation businesses use AI to speculate factory and vehicle maintenance. Here predictive maintenance is built on sensor data collected from smart machines and automobiles. Apart from this, there is also a rise in the trend of ‘machine-human interaction’ as the use of Augmented Reality (AR) accessed via ‘smart glasses’ exceeds expectations. The most recent example is of the Changi airport in Singapore where the staff started using smart glasses to scan optical markers on luggage and other consignments. This helped to cut down the loading time by 25 percent. When it comes to Supply-chain, the viable capacity of AI goes beyond production and logistics. In the upcoming days,. There are already supply chain softwares in the market which are proficient enough to analyze different frameworks simultaneously and provide the recommendation for the best course of action. This is where artificial intelligence can make dramatic enhancements and impart superior approaches to conquer this challenge
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. AI systems can be employed to scan trillions of data records, collect appropriate information from the market network, identify trend, seasonality or cyclicity and forecast consumer demand more precisely. This can help to enhance flexibility across smart chains. The time is not far when AI chat-bots will take customer orders, negotiate contracts with vendors or suppliers, and interact with the client. Artificial Intelligence system can automatically identify customer priority established on their purchase trends. The supply chain is the result of many activities in which ‘Forecasting’ is the most important one. It is the activity where businesses spend a good amount of their time using different methods for it. It always requires complex statistical calculations with human intelligence and receiving 100% accuracy is always a difficult task. Apart from relying on existing softwares, these calculations are also dependent on the expert’s inputs to make it more accurate. One cannot deny the chances of occurrence of mistakes in this method as currently market software are able to provide 60 – 70 % accuracy in forecasting. Inaccurate predictions might result in excessive production, inappropriate stock levels, loss of sales etc. Hence forecasting the customer demand has been one of the key challenges for organizations worldwide. There is a lot of unstructured data present around in any supply chain management. This data can be processed through machine learning algorithms to obtain useful insights and information. Predictive supply chain and Big Data will help organizations to move away from ‘guesswork’ in making estimates on the movement of materials. This will lead to more optimized inventory management, better analysis of aggregate distribution cost per unit and more adaptable shipping procurement options.
These smart machines are competent in self – diagnostics and can let the user know when maintenance or service is required along with estimated downtime. Artificial Intelligence, Machine Learning, and a Predictive Supply Chain can definitely be a way of the future. However few challenges such as technical and technology-related expertise, integration of diverse data origins and regulatory barriers, need to be conquered for widespread adoption.
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LAST MILE IN MODERN LOGISTICS Dipesh Surana IIM Shillong
Last mile logistics refers to the final step of the delivery process from a distribution center or a facility to the end user. The last mile delivery operations pose challenges from the heavily competing marketplace. Customer demands, adverse economic conditions and driver shortages fuelled by the rising microeconomic conditions and regulations call for an efficient and smarter logistics. Smart logistics implicates to pick-up and delivery (P&D) processes, considering major points of disparity (POD) like customer support and service offerings, vehicle & driver management and route management. SCOPE This article deals with the Last Mile in online purchasing and delivery markets and will give the reader ideas to work upon to suit their last mile delivery technology. With the revolutionization of Industry in the advent of technology, order numbers are rapidly increasing, and so is the use of mobile devices, tablet, and AI-powered gadgets to assist 24 X 7 purchasing habits. Such habits force retailers, putting them under pressure to manage both their stock and provide efficient delivery regarding speed, price, service, and quality. Total number of deliveries (m) generated by online orders by product type
THE MARKET As per Barclays reports, in the span of five years (2013 – 2018), the deliveries generated from the products ordered online will grow by 28.8% to 1.35 billion from 1 billion in 2013. The largest volume orders are in the categories of clothing and footwear, and the percentage increase in the food deliveries looks promising. ALSO during the lunchtime and towards 5PM in the UK, the online purchasing activity spikes, which can be assumed optimistically as a global behaviour trend. Many logistics companies may need to continuously develop their processes to remain competitive with next-day, or even same-day delivery options for time-conscious consumers.
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Percentage of retailers mentioning that certain areas cause them problems. The research shows that for the retailers, one of the major issues is coping up with peak seasonal delivery times due to the challenges in integrating systems across retail platforms and demand forecasting. The figure shows that the demand for the same-day delivery market is growing at a CAGR of 154% which on extrapolating is expected to show attractive results. Thus, there is a need to capture the market with the technological innovation to gain the first mover advantage and market share. Modern Logistics •Artificial Intelligence (AI): Improving the tracking and consumer notifications attract the most interest in terms of future developments. The chatbot assisting the end user from ordering to receiving the package at the doorstep will help increase customer experience and retention. The chatbot also improves real-time messaging services to help consumers manage the deliveries around their daily schedule. •Data Analytics: CRM can be used to improve the data collection process in the ecommerce and online delivery space. The collected data can be analyzed to bring out valuable consumer insights. For a family, where, in the first week of every month, there is a demand of the Washing powder, the bot will auto order the product to ensure it reaches on time and the customer is free from the hassle of the repeated ordering process. •Cloud computing: Geo Mapping the delivery and dispatch data for an optimized solution. Companies such as Salesforce, is providing cloud computing platforms which can be leveraged to quicken the dispatching and tracking process. Fast, agile, reliable, innovative database architecture and design, increases search speed & system performance, minimizes data loss and maximizes uptime. Intelligent locker and the pick-up station: The locker system in common places like the Railway and metro stations, Bus stops, Markets and famous shopping areas, assisted by the code-based verification system sent to the customer for self-picking can act as a miniwarehouse. This system is being used by the famous e-commerce company Amazon in the US market.
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Modern Logistics Telematics & Vehicle Routing Technology: Telematics can be used for route planning, monitoring driver behavior, and real-time tracking. The challenge here is the increasing fuel prices that can be overcome by Electric vehicle, which is going to be the future of Last Mile delivery. Current logistics systems in the urban area are usually unable to deliver products with full delivery efficiency. Setting specific routes for carriers for the delivery process called Vehicle Routing Technology considering traffic condition. Drones & Droids: To increase the reach and avoid the difficulties of the traffic in the urban areas drones can be used as a delivery boy. The parcel on delivery will be clicked and sent an automated notification to the customer. Droids can be used as the self-driving delivery robot, which is currently being trialed in European countries to deliver takeaway meals. Proof Delivery Service: The technology also allows delivery staff to photograph goods left at a safe place and sends a picture of the successful delivery to the recipient to minimize fraud risks within the process. Swift Returns: With the number of people who buy online increasing, a major challenge in the e-commerce industry is to manage the sent-back items. And, the easier brands and retailers can make this for their customers, the happier and more confident customers will be to purchase online in future. Smart mailbox Parcel home provide with an instant postage and packaging solution. Customers can submit a picture of the loose item they would like to send, then select the Pickup Now button through the app to initiate the return process.
Place-Time delivery: A marketplace near the famous areas at a fixed time and place, daily or a couple of days in a week as per the demand, provides a virtual warehouse delivery system where the customer can pick their products and save the logistics cost.
SUMMARY Reinventing the Last-mile delivery in the modern logistics is vital if companies are to keep up with the customer demand. The innovative service has to be driven from the top-to-down of the organization, or companies would be playing against future agility potential. Businesses could look to accelerate this process by considering a partnership model with third parties, service providers that have expertise in the infrastructure and logistics in place. A complete understanding of Supply Chain with the distribution processes, technology, capital, demographics, and expertise required should be done before the implementation. Companies should conduct extensive research, testing and piloting before committing to specific initiatives as each model adopted will be highly dependent on the Geographical and cultural aspects, and getting it wrong could prove to be costly.
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INDUSTRY 4.0 Vishal Kumar Without data, you’re just another person with opinion. So, let’s begin with some factual figures, or “data”. A research from the Center for Global Enterprise (CGE) predicts that the digitizing of the supply chain can lower the procurement costs by 20 percent. Not only that but it can even reduce the processing cost of supply chain by 50 percent. And to top it all, it can increase the revenue by 10 percent. These factual figures just might be the reason that digital supply chain is in the top priority list of many of the top companies. Now, let’s take pharmaceutical companies as examples. According to McKinsey, pharmaceutical companies could recover $25 billion through inventory reduction alone. One of the driving forces behind this fact being that pharmaceutical companies tend to carry too much stock. And no, stupidity isn’t the reason. It’s just an effort from their side to ensure 100% fulfillment of demand. And why not! We can’t forget the fact that these are the drugs that treat chronic diseases. As if that reason wasn’t enough, there have been cases where a single company is the sole supplier. And hence a must need for fulfillment of any potential demandlest a stock out might happen. The question arises- why not use the advanced technology for analyzing the distribution process, forecasting demand and meeting them head on at time? The reduction of cost will inevitably lead to reduction in the price and god knows how much the price of medicines has sky rocketed today.
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Leave price alone and there is still another issue of drug shortage in the market. Yes! Even after that humungous loss of $25 billion, they still face ‘shortage’. Between 2011 and 2014, according to a report, 456 drugs have been in short supply leading healthcare providers & patients to switch to alternatives and in some cases- less effective alternatives. And these product substitutions came at an additional cost of $230 million for the hospitals and treatment centers. Another recent survey of 50 executives at 10 pharmaceutical companies by the Pew Agency for Charitable Trusts and ISP found weakness in the supply chain as a cause- thus suggesting that there is a need for improved practice and new technology. When the research moved on to senior pharmaceutical executive, the survey found out that most of them believe that better supply chain management & Partner alignment will play a vital role in preventing future drug shortages. Another example I want to put forward is of DHL. For one of their airline customers, they had been using automated analytics so that they can The first example showed track products on the aircraft, with the us how and why ability to work out precise how many miles those products have flown and digitalisation of supply how many of them end up as wastage. chain is so important. On As a result, they managed to reduce the the other hand, the second amount of product on aircrafts by 30%. Another thing they did was coming into example showed us how partnership with Fujitsu. The reason digitalisation of supply behind it were wearable technology chain played an important and IoT based new services DHL role in cutting down the desired. These wearables give them information about how tired their extra expenses- direct and workers are. This information is not only indirect both. important for the drivers’ safety and hence for making their working environment safer and smarter, but also for the safety of everyone on the road The first example showed us how and why digitalisation of supply chain is so important. On the other hand, the second example showed us how digitalisation of supply chain played an important role in cutting down the extra expenses- direct and indirect both. Now, what does digital supply chain offer? What makes it so important? Which attributes have made it so crucial for profits? Well, to sum it up- it provides with technology like predictive analytics, better visibility over the movement of goods and then robotics which can help warehouses and distribution centers keep pace.
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VISIBILITY: Ability to see & understand the activities and events of multiple players i.e. someone can optimize beyond the walls of one company, and instead optimize across the walls of multiple key supply chain partners.
PREDICTIVE ANALYSIS: IoT has been helping with monitoring of trucks and vehicles for some time, thanks to numerous smart sensors on trucks and trailers. Combine it with the smart roads (embedding fiber optic cable & sensors right into roads), and we have a richer data stream to draw on for predictive analysis. CONTINGENCY PLANNING: IoT provides detailed awareness about whereabouts of shipment and in case of a shipment gone astray, planning analytics platform can determine if the shipment will go bad, and scenario-based planning logic can figure out where an alternative shipment can be sent from. It performs in background as per the situation, rather than waiting for human planners to conduct a formal planning process.
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ROBOTICS: Then there comes robotics which lead to reduction in labor requirements and hence lower operating costs over the long term. It’s more beneficial than automation in the context that automation tends to be costly to acquire and involves a long time to install, implement or change. These digital technologies will be disruptive- to say the least- requiring new skills, loss of relatively unskilled jobs in warehouses & need to build a distribution center workforce so as to reap the most productivity from robotics. The change has already begun and one better be involved with it if one wants to sustain or bear both competitive and economic losses.
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REINVENTING SUPPLY CHAIN WITH IOT Pritam Banerjee Utsav Sen IIT Kharagpur
A decade ago the human race was barely familiar with the term “connectivity”. Zooming into 2020, it is predicted that we will be residing in a world where for every person we are likely to have 7 objects connected to the internet. Sensor networks are all set to dominate the world, capturing a high volume of information from physical objects and uploading it over the internet, to be further analysed at the data hubs for enhanced decision making. In this context, technology-driven by sensors and web, collectively termed as the Internet of Things (IoT), has been the front-runner in changing the landscape by achieving economy of scale, innovation and vertical integration, to disrupt the very way of conducting business. We are in the middle of the fourth industrial revolution where digitization is expected to change the way we lead our lives. Technology is believed to be the key driver of this change, and at this crucial juncture of transition, IoT enabled smart supply chain solutions are promising to change the industry dynamics by making supply chain management (SCM) the heart of every primary activity in an organization. Unified development and delivery perspective along with intelligent transportation and storage model is the steering force behind the shift in the supply chain paradigm. [2] Moreover, the role of analytics in formulating demand-driven strategy has enabled the firms to streamline processes while answering the six W’s related to any supply chain element.
Sector wise spending on IoT 12
[1]
16 Manufacturing
2
Logistics
4.8
Utilities B2C
4.8
Health Care 16
4.8
Process Energy Retail
6
Government Insurance 6
Others
16 10
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Enhanced Efficiency Revolutionize revenue model
Omnipresent across chain
Increased Innovation
IoT transforming Supply Chain
Integrates end-to-end process
Boost differentiation
Remodel push to pull strategy
Embedded sensor nodes working in tandem with sophisticated machine learning (ML) algorithm to monitor and evaluate processes, is playing a pivotal role in developing an integrated SCM network capable of delivering an estimated daily enhancement of $60mn in supply chain velocity. Data drawn from every element that builds up the supply chain system, encompassing equipment, warehouses, packages and transportation media, when transmitted to the processing centres equipped with analytical and predictive skills, enables measurement of activities in manufacturing processes, leading to an upscale in productivity and enhanced clarity and traceability along the chain. The cloud-based digital solutions fed by IoT sensors, continuously monitor asset conditions to predict intervention and schedule necessary maintenance in case of weather fluctuations or equipment failures to ensure that a certain machine does not fall flat over the upcoming cycle of work hours. With the blessing of IoT, real-time reporting on process efficiency, exceptions and aberrations have become a cake walk. This is consequently facilitating proactive engagement between supply chain entities and securing a shift towards more responsive and agile SCM with minimised risk and heightened responsiveness, capable of catering to the market dynamics and consumer demand.
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IoT being a cognitive system allows continuous learning and imparting of intelligence into the physical supply chain domain. As a result, not only the reliability of supply chain has improved, it is playing an even more important role in capturing live data aiding instant decision making. Real-time monitoring of inventory levels to ensure optimal level of production output is an example where IoT integration saves considerable human intervention in an effort to minimize revenue loss and curtail congestion. A similar advantage of drawing data in real time can be observed in the way how automobile manufacturers are saving cost by using accident information to make enhancements in car design right at the manufacturing stage, instead of having to do a recall later when some design flaws are noticed. Beyond the enterprise usage, energy-oriented industries encompassing mining, oil, gas and electricity have obtained a high level of real-time visibility by leveraging the potential of IoT. [4] These industries have made use of the sophisticated IoT network to steadily monitor key factory equipment parameters and have even transformed numerous paper-based processes to high fidelity digital models for continuous evaluation and avoidance of critical unplanned system failure issues, which are potential bummers in achieving the production targets. The cloud-based enterprise view of supply chain assists in capacity planning and enables a team to simulate solution scenarios and decide on the most optimal option.
IoT impact on Logistics - % adoption capability [6] 41%
41%
17%
0-3 years
3-7 years
7+ years
IoT solutions are also adding an extra mileage to the modern business models by redefining the way how data about product lifecycle is being collected. Evolution of asset insurance models to focus more on historical data derivation and real-time information fetching, rather than subjective forecasts is becoming increasingly popular under the integrated supply chain system, empowered by sensor networks. Regulation of processes with the help of smart chipenabled devices, without the need to search through complex backend systems, has significantly eased up the labour intensive final delivery of consignments, leveraging consumer delight.
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With debates on climate change gaining momentum, demand for green supply chain is on the rise with more emphasis on environment-friendly product creation. However, the current situation paints a story where the supply chain is believed to be a major contributor to the greenhouse gas emission, with global payload movement volume expected to rise by 400% over the next 2 decades. Given the situation, live monitoring of processes and measuring carbon footprint have become the need of the hour and it is here that IoT solutions emerge as saviours for the businesses. Cargo tracking to identify the time spent on a particular mode of transport and rerouting shipments as and when necessary has become a popular application of IoT enabled green supply chain management today, with the focus on improving utilization.
Influence of IoT on supply chain management [7] High influence - IoT powred ecosystem to redesign supply chain architecture
35%
Moderate influence - competitive advantage through data collection and analysis
No influence - IoT enabled Supply chain is not embraced
58%
7%
0%
10%
20%
30%
40%
50%
60%
70%
There is no denying the fact that the age of intelligent connectivity has arrived and surviving disruption will require creating it. The major challenge in the path of leveraging the potential of data drawn from sensor nodes across the supply chain processes is to strike the right balance between the multidimensional aspect of operations and multilayered implementation of IoT solutions and it demands a holistic assessment to amplify productivity
The future prosperity of companies in the industry is quite heavily reliant on the intelligent, digitised and connected supply chain network, and the ultimate motive of IoT enabled supply chain, should be to realise the dream of a synergistic SCM workflow empowered by omni-channel competency. MOMENTUM
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.
Leadership to manage IoT integration in supply chain
IoT empowered offerings to customers
Redesign SCM ecosystem
Enhancement of current SCM model
IoT across all “Demand Driven Value Network” levels
IoT promoting Supply Chain growth [8]
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FLEXIBLE MANUFACTURING SYSTEM Parvinder Singh K.J.SIMSR
In today’s world ‘automation and technology’ is the difference between leader and loser in the market. Companies are trying hard in reducing labor cost, improve productivity, capture market share, enhance product quality, and reduce cycle time and so many other parameters. Manufacturing is an indispensible part of the world and it is necessary to change our techniques and methods to produce product while utilizing the resources available to us. Here the question arises how any manufacturing companies can achieve low labor cost, high productivity, quality product, etc.? The answer to this challenging question lies in the implementation of Flexible Manufacturing System (FMS). What is Flexible manufacturing system? Consider a Subway outlet. The end product of Subway is a sandwich. There is an option to choose from different breads and fillings. Flexible manufacturing is a process similar to this. It allows changes to be made to the manufacturing operations quickly. It is implemented in situations where wide variety of end products are produced.
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Flexible manufacturing system consists of many programmable machines which are controlled by computers to produce defect free and mass production products e.g. glass windshields, bulbs, cookies, shafts, cars and so on. Once the process is started there is no need to perform inspection on hourly basis as it can be done automatically by machines when they process the product. The idea of FMS was born in England in the 60’s where cost, quality and speed of delivery were key emerging factors. In late 60’s the first FMS machine system was installed at Ingersoll-Rand Company in Virginia. Germany implemented its first flexible manufacturing system in 1969 in cooperation with the University of Stuttgart .Other countries like Russia and Japan implemented flexible manufacturing system in 1972. Why Flexible manufacturing system and not Conventional manufacturing system? As the customer requirements keep on changing it is essential to adapt ourselves to fulfill them in order to survive in the market. With changes in the requirements, we also need to change the product design. In the competitive environment every company wants to produce more in less time while utilizing minimum resources. Hence it is necessary to reduce cycle time and optimize the utilization of resources. To overcome the internal changes like changeover time, machine breakdowns, etc. In order to further clarify FMS concept, let’s consider two scenarios: Scenario 1: Processing of gear 1 by conventional manufacturing system.
Sr No. 1 2 3 4 5 6 7 8 9 10 11
Processing description of Gear OPERATION DESCRIPTION M/C DISCRIPTION OD chamfer, face, OD Turn, Face, Chamfer etc. Turn second side face and chamfer OD Spline Broaching washing Spline deburring Final turning Burr chamfering Hobbing Teeth Chamfering Oil Grooving Shaving Total Time
Mini Chucker Mini Chucker Broaching Washing m/c Manual PTC lathe Manual Hobbing Machine Cham. m/c Hyd. Press Shaving m/c
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CYCLE TIME IN Sec 330 300 250 150 150 300 100 149 100 150 300 2279
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Scenario 2: Processing of gear by Flexible manufacturing system. Sr No. 1 2 3 4 5 6 7 8 9 10 11
Processing description of Gear OPERATION DESCRIPTION M/C DISCRIPTION OD chamfer, face, OD Turn, Face, Chamfer etc. Turn second side face and chamfer OD Spline Broaching washing Spline deburring Final turning Burr chamfering Hobbing Teeth Chamfering Oil Grooving Shaving Total Time
Mini Chucker
CYCLE TIME IN Sec 288
Mini Chucker
240
Broaching Washing m/c Manual PTC lathe Manual Hobbing Machine Cham. m/c Hyd. Press Shaving m/c
250 150 113 250 150 149 155 150 300 2195
Result: The process of gear by FMS saves approximately 100 sec per gear including pre and post processing adjustments. This implies that if number of gears to be produced increases, this will save a lot of time and increase productivity of the manufacturer. This will help in increasing the profit. Hence FMS is beneficial than the conventional manufacturing system. Flexible manufacturing systems can be distinguished based on the number of machines in the system. SINGLE MACHINE CELL: It consists of one CNC machining centre combined with a parts storage system for unattended operations. Completed parts are periodically unloaded from the parts storage unit and raw work parts are loaded into it.
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SINGLE MACHINE CELL:
Flexible Manufacturing cell (FMC): It consists of 2 to 3 processing workstation (typically CNC machining centers) plus a part handling system. The part handling system is connected to a load/unload station.
FLEXIBLE MANUFACTURING SYSTEM: A FMS has four or more processing workstations connected mechanically by a common part handling. It has workstation, automated material handling, storage systems and computer control systems.
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ADVANTAGE OF FMS: DISADVANTAGE OF FMS: A flexible manufacturing system helps in improving efficiency and reduce set up and queue times. It also produces variety of products under one roof as well as reduces time for product completion. Manufacturing companies with flexible manufacturing system no longer need to invest in specialist machine and can reduce inventories as more bespoke parts can be made in –house. All these factors tend to increase revenues and allow a wider catalog of products to be produced.
Upgrading to a flexible manufacturing system incurs significant costs associated with restructuring management, retaining the existing workforce, hiring new skilled employees, upgrading hardware and computer software.
INDUSTRY EXAMPLE: It doesn’t see all industries can implemented FMS, however for example traditional clothes dye forging due to the significant time needed to produce new moulds has capitalized on a flexible manufacturing system is precise tool and dye, no higher precise tool and dye used to make products with the automotive and electrical industries changes in the global market meant they wanted to move towards low volume production with fast turnarounds producing precise components and prototype to achieve. For this they invested in a modular 24 pallet makino machining complex featuring an automated material handling system 15 machining centers for work setting stations and 2 horizontal machining centers, this required a new flexible scheduling management system and the retraining of existing staff these changes led to 40 to 60 percent reduction in cycle times a 25 percent reduction in the use of raw material and faster set up this combined the ability to run the system to run 24 hours a day has increased productivity , ford also took advantage of flexible manufacturing system as they wanted to build multiple models in one plant they had invested five hundred and fifty million US dollars into overhauling the Michigan assembly plant focusing on flexible tooling reprogrammable tooling was introduced to the body shop with 80 percent of robotic welding able to weld different size vehicles however some processes don’t see flexible manufacturing structure CONCLUSION: Flexible manufacturing system is ideal for industries where wide varieties of similar end products are to be produced. It requires significant retraining in the hiring of skilled workers and restructuring of organizations. It is not suitable for all industries and usually a compromise between flexible and traditional methods is often the best solution as implemented by Ford. .
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BLOCKCHAIN: REVOLUTION IN SUPPLY CHAIN Anuraj Gabale Shalini Jha NMIMS
Supply Chain and inherent problems A supply chain links all the entities from the manufacturer to the end customer. There are many in between players who receive and distribute goods and money. The supplier, retailer, wholesaler and manufacturer have their own ERP systems, hence systems in the supply chain are not integrated. The supplier may send 10 units of raw material, while manufacturer may claim he received only 8. This deviation may occur at each node of the supply chain. Also, communicating with external stakeholders like logistics company, banks (each entity in the supply chain will have one) etc. creates latency. Lastly, all the information is on a central database which is owned by someone, making it vulnerable to attack and loss of data of the entire supply chain. Since there are many stakeholders involved in the supply chain, there is a need to centralize all the information into a single database which could be modified by different entities dynamically according to their needs, hence providing the latest report automatically to logistics, ordering, staffing, warehouse Management Systems, Customer Relationship Management Systems and Manufacturing Execution Systems. How can blockchain help? Blockchain has a peer to peer service layer that works without middlemen. It also serves as a decentralized utility network which can store and transfer assets and value in time .
1. CREATE CONTRACT
4. ACCEPT ORDER
5. CREATE INVOICE
8. REGISTER PAYMENTS
9. DELIVERY
CONTRACT
ORDER
INVOICE
PAYMENT
DELIVERY
BLOCKCHAIN (SINGLE SOURCE OF TRUTH FOR BOTH THE COMPANIES)
2. ACCEPT CONTRACT
3. CREATE ORDER
6. ACCEPT INVOICE
7. PAY INVOICE
10. GOODS RECEIVED
Fig 1: Shows how both the companies will share the contracts on a single blockchain backed ERP supply chain architecture.
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It is highly secure and allows only true transactions. Unlike normal databases, it gets more secure as volume of transactions increase since it will be difficult to hack simultaneously all the past and present blocks in all the chains at all the nodes. The data is stored in a layer below the transport layer of the blocks which have the authentication and encryption algorithms. It is deciphered after decrypting the block using the hash key. Connecting each entity with the blockchain will create a unique, global, secure and censorship resistant database which will transfer data in real-time. Fixing only one access point for each entity will ensure only relevant data is accessible to the stakeholders. E.g. only producers will access consumer specifications while logistics team will not be authorized to access it.
.
SOURCE DATA
PRODUCT DATA
PROCESS DATA
TRANSPORT DATA
ASSEMBLY
PROCESSING
LOGISTICS
STORAGE DATA
COMPANY A COMPONENT MANUFACTURE
COMPANY B
STORAGE
COMPANY C
Fig 2: Shows how the same task is completed by different organizations sharing the same distributed blockchain backed supply chain architecture.
1. Integration with the existing ERP: Blockchain backed ERP will be a single database showing publicly verified data across multiple organizations, integrating their relevant functions with time stamped data. Therefore, all the organizations will access the same database. As per the architecture of the blockchain, only the application layer will have to be integrated via existing legacy systems without adding further costs. ❖ Data Layer: It will contain the actual data. This will be encrypted along with the hash so it will be gibberish until it is decrypted. ❖ Security/Blockchain layer: It will have all the encryption algorithms and hashes along with the time stamp. Only this will be visible to the public to verify. ❖ Application layer: This will interact with the applications on the OS and is compatible with the legacy systems.
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ERP (SAP, Oracle)
CRM (Salesforce,com)
WMS, MES
DATA LAYER
HASH
SECURITY LAYER Fig 3: Architecture of blockchain layer integration with ERP
Costs involved: ❖ Having separate ERP solution systems increases costs for all the companies. Ensuring seamless integration is another hurdle. The regulatory and compliance costs to check fraud further adds to the costs. Hence, having a single shared database will result in shared costs for the companies. The companies can pay only for the part of the sequence that they use. This will greatly reduce the operational costs. Integration costs would be negligible as compared to the cost of setting up an ERP package since there will be only one node of access for each company. Usage in real world ❖ In a fish market, just by scanning a barcode label on the fish, one can get the information of where it was fished, how it was transported and stored from a node to another across supply chain. One is then guaranteed about the freshness of the fish. ❖ In case one buys a Brazilian coffee, which is actually sourced somewhere else, blockchain traceability feature helps pick out the fake ones from the authentic. Advantages: ❖ Smart Contracts between companies: Contracts will be common between organizations and verified on a public ledger. Any dispute will be resolved by just looking who ordered wrong or who sent wrong. The contract won’t be contestable. ❖ Efficient tracking of goods: It will increase traceability of product in the supply chain. As each block will be time stamped and the hash of each entity will be used to decrypt and encrypt each block can be accurately tracked. Companies like automobile manufacturers where each part may be manufactured in a different country and assembled in a different country will benefit if all the parts can be tracked not only internally but also with their external suppliers. This will in turn reduce costs. ❖ Reduce Time and help in faster decision making: Since all the stakeholder can see the data simultaneously, immediate action can be initiated to implement any change. ❖ Tackling the Bullwhip effect: This would be solved by real time sharing of data upstream and downstream. ❖ Easier GST implementation: GST has created a single tax for the entire supply chain. Earlier each entity had a different tax added to the product cost. Since blockchain uses a single shared peer to peer database there will be automatic accrual of a single tax component where the Finance department can access the chain. This would be possible since there will be no boundaries for transfer of assets and value.
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INTERNET OF EVERYTHING Raveena Gupta K.J.SIMSR
Today most people are already connected to the Internet of Things (IoT) in their private life — through fitness tracker, or through the mobile phone. If this technology is not also established in business, it is only a matter of time. As predicted by Accenture, that the subset of IoT (also known as the Industrial Internet of Things (IIoT)) will add $14.2 trillion to the global economy by 2030. Like IoT, the term IIoT refers to a constellation of data sources —sensors, mobile devices, cameras, computers, and other systems that capture information — along with the networks and software platforms that assemble the data and put it to use. IIoT includes IoT not just in settings such as manufacturing and freight transportation, but also in areas including healthcare and retail. In the supply chain, the notion of capturing data from "things" is not exactly new. For many years, companies have used capture devices such as barcode scanners, radio frequency identification (RFID) readers, and GPS antennas to take data from products in warehouses, in transit, on retail shelves, and at the point of sale. In the beginning, that data mainly drove processes within a company's own four walls. Today, many of the systems using captured data have moved into the cloud. And vendors have developed internet-based platforms where trading partners share data and use it for new purposes, such as predictive analytics. They've added new data capture technologies to the mix, and they've started conversations between machines.
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How IIot works? IoT connects sensors to analytics and other systems to automatically improve performance, reliability, safety, and energy efficiency by: Collecting data from sensors much more cost-effectively than before because sensors are often battery-powered and wireless. Interpreting this data strategically using big data analytics to turn the data into actionable information. Presenting this actionable information to the authorized person and at the right time. Delivering performance improvements when the personnel takes corrective action. IIot Benefits The IIoT is set to revolutionize the supply chain with operational efficiencies and revenue opportunities made possible with this type of transparency. In the present scenario, SCM is not just a way to keep a track of the products. Rather, it is a way of gaining an edge over the competitors, saving on product costs and even for building a brand. The following are few areas witnessing the major change because of IIoT: Operational Efficiencies: The Industrial IoT offers the following advantages which can help in the operations efficiency: Asset Tracking: At present, the standard method for managing goods throughout the supply chain is by tracking bar-codes. But with the IIoT, it will be no longer the most expedient. New RFID and GPS sensors can track products “from floor to store� and more. Any time, manufacturers can use these sensors to get the nitty-gritty data like how long it spent in cargo, docking time, the temperature at which an item was stored, and even how long it took to fly off the shelf. The type of data gained from the IIoT can help the companies get a tighter grip on quality control, and on-time deliveries.
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Vendor Relations: The information obtained through IIot can be helpful in recognizing various vendors and maintaining records of their history. It may also help in authentication process of new vendor selection and then to maintain vendor relations. Forecasting and Inventory: IIoT sensors can provide more accurate inventory management than humans. For example, Amazon is using WiFi robots to track its orders. This has brought their inventory cost down by more than 40%. The supplies can predict stock requirements for future manufacturing — at the click of a button. And all that data can be used to find the trends to make manufacturing schedules even more efficient. Connected Fleets: In global businesses, it is even more crucial to ensure that all carriers are well connected such as shipping containers, suppliers’ delivery trucks, or van out for delivery. Again, the data is the prize. Just like cities are using route data to get to an emergency quicker or avoid traffic issues, manufacturers are using it to get better products to their customers, and faster. Scheduled Maintenance: IIoT can use smart sensors on manufacturing floors to manage planned maintenance and prevent downtime that can cost much. Trained engineers use sensors to monitor machines as they work, they can determine what constitutes effective operations and then do maintenance only when the machine behaves abnormally. German manufacturer Bosch has tested several IIoT applications as part of a testbed program sponsored by the IIC. Bosch works with Cisco and TechM to test the use of sensors to track and trace power tools used in a Bosch plant. Revenue Opportunities The chance to understand more about customers, their buying habits, their expectations, and the trends associated with them is invaluable. It allows businesses to form tighter connections with customers and market to them in better ways. With IIot, the business can go beyond the use of data for improving the efficiencies. Businesses can get creative with supply chain transparency. They can build a reputation of social responsibility by allowing customers to access and see the product through the use of Augmented Reality where their product came from, how it looks on them, who made it, and the conditions in which those workers lived.
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Iot in Action Example 1 - Siemens Germans have long been at the forefront of innovation in manufacturing and so with IIot. Germans passion for technological innovation is even magnified, not only through what they make but how they make it. The Siemens plant in Germany is developing fully automated, Internet-based “smart” factories. The plant builds automated machines for the likes of BMW, and the process is 75 % automated. This step has increased efficiency and reduced costs. Example 2 - Airbus Airbus, the European aircraft manufacturer, is not only applying IoT technologies to its products, but also to the tools its workers use in the manufacturing process. For Airbus, the factory design envisions a worker on the factory floor who can use a tablet or smart glasses to assess a task and then send that information to a robotic tool that completes it. They aspire to use an IoT platform which can speed up the manufacturing process and can improve reliability. 70% of retail and manufacturing businesses have already begun to transform their supply chain processes as per my secondary research. However, For the IIoT to be truly effective, all the members of one’s global supply chain must be connected. In the age when companies are embracing the concept of mobility, Drones, promoting technologies like Blockchain, Augmented Reality, there is so much further we can go to make our supply chain even more efficient and creative.
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LOCATION BASED SERVICES Tanya Mondal SIBM,PUNE
Priya is a self-proclaimed ‘Selfie-queen’. She hangs out with her friends, goes to movies, tries out every top-rated restaurant in the city. Most importantly, she never forgets to share her photos with her friends and followers in social media and ‘check-in’ the places she goes to. But Priya doesn’t know a shadow follows her to those exact locations every time she checks in. Mr. Pandey is a billionaire, dealing in daily transactions of crores. He saves all his usernames and passwords for his multiple bank accounts in his GPS enabled android. Now he gets an SMS that he won a lottery. He only must confirm his personal details in the attached link and can collect his prize money from the nearby centre just a kilometre away. While he happily clicks the link, the phishing page steals the usernames and passwords of his bank accounts and swipes them clean. A British security firm found that check-ins posted on social media like Facebook or Twitter, are extensively targeted by burglars to rob those empty homes. The average home robbery takes only ten minutes, meaning you can easily be swept out while you're enjoying coffee at your favourite Café Coffee Day. Also, predators target kids as potential victims by inducing them to reveal personal data, or just by using automated geo-location information from their geotagged phone. Beware! If you are dependent on your mobile for directions or nearest coffee shop, better be aware of the issues and risks related to Location-Based services. What is Location-Based Service? Location-based service (LBS) is a software application for an IP-capable mobile device that requires knowledge about the location of the mobile device. LBS has six basic components: the service provider's software application, a mobile network, a content provider to supply the end user with geo-specific information, a positioning component and the mobile device and the user.
www.psfk.com
By law, location-based services ought to be permission-based. The end user must opt-in to enjoy the services. In most cases, this means installing the LBS application and accepting a request to allow the service to know the device's location. After a smartphone user opts-in, the service can identify his or her location without the need for manual data entry.
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LBS makes life simpler with this life-altering services: Need Groceries? LBS can find the nearest store location instantly with store locators. Best discounts? Local companies can push ads only to targeted individuals within the same geographic location by Proximity-based marketing. Already running late? An LBS can deliver real-time information, such as traffic updates to avoid rush hour traffic. Suspicious transaction? LBS creates another level of security by matching a customer’s location through the smartphone to a credit card transaction and flag them if necessary. But at the same time, manipulation of location-based spatial information, interoperability and privacy protection are some dire issues that stare at the face of millions of customers using LBS www.orangewebsite.com
Location Based Services: Issues and Challenges In this era of mobility, one attribute gains critical importance: location. The ability to pinpoint a mobile user’s location creates a new class of services. LBS covers a variety of applications, but all have at least the underlying element in common: they all rely on location knowledge of a user’s But the implications of LBS towards society or consumers are unavoidable. As stated by B.E. Mennecke: “This technological revolution will directly or indirectly affect in a significant way practically every person in the industrialized world”. On the brink of a future where LBS are universal, one needs to critically speculate on both the issues and challenges. Privacy Tracking location and putting a pin on it, are prerequisites of modern life. But when the privacy of the user is violated, and data is mined to gather intrinsic details about the demographic and personal preferences without user’s knowledge, it becomes uncomfortable. It is well known that the ensuing mass dissemination of location data generates significant privacy concerns because location data reveals information about users that is potentially sensitive.
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Technological Software revolutionary Richard Stallman was sceptical about the intent of cell phones altogether. According to him, “Cell phones are tools of Big Brother. I’m not going to carry a tracking device that records where I go all the time, and I’m not going to carry a surveillance device that can be turned onto eavesdrop”. This situation is not so far from the reality. Law enforcement agencies can monitor and access location data without the knowledge of the user and those data can be used against the user as evidence. You could be tracked by law enforcement for just being in the vicinity of a crime or disturbance. Identity Theft Location data combined with personal information is a deadly combination for criminals. By illicitly gaining access to these profiles, criminals acquire information such as a consumer’s name, address, interests, and co-workers’ names and lifestyle patterns which help them to assume identity of an individual. This is an ideal situation for identity theft. In 2017, Javelin Strategy & Research published an Identity Fraud Study, which reveals that in the past 6 years identity thieves have stolen over $107 billion from internet users. $16 billion worth of property was stolen from 15.4 million U.S. consumers in 2016. Social Factors LBS applications have an overreaching element of control whether through pragmatism or necessity. LBS has a grip on every single consumer and controls their lifestyle, personal choices and decision making directly. Businesses use LBS data extensively to decide tailor-made services or personalised advertisements which control the purchasing pattern of the customer on a daily basis. Carnegie Mellon University has identified more than 80 location-sharing services that either lack privacy policies or collect and save user data for an indefinite time. This leads to trust issue in consumers. They grow reluctance to use the location-based service. Fighting the issues From targeting terrorist activity to targeted advertisements, the potential use of location data spans worldwide. To fight the challenges, a clear line needs to be drawn. From the service provider’s perspective: Anonymity and Un-linkability need to be well-adjusted even if that compromises the level of app-functionality and customization. Customers can turn off the location services when not in use. They should be conscious about what images and information are being shared on social networks and when.
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Arushi Joshi K.J.SIMSR
❖ Digital supply chains can reduce supply chain process costs by 50%, reduce procurement costs by 20%, and increase revenue by 10%. ❖ Companies with 50% or more of their revenues from digital ecosystems achieve 32% higher revenue growth and 27% higher profit margins. ❖ By 2027, blockchains could store as much as 10% of global GDP. ❖ 53% of supply chain practitioners surveyed across industry think of cloud computing as “interesting, but unclear usefulness. ❖ Global companies are changing the way companies view and use their supply chains to compete and gain market share. Research indicates that global market values of logistics have surpassed $4 trillion, which equals to 10% of global GDP. ❖ Transportation sector is fastest growing sector, 7% increase each year since 2011. The world largest container ship in the world can carry the Eiffel Tower and an Airbus comfortably. ❖ Emerging markets such as China and India are expected to have increasing influence in global logistics in coming years. If Southeast Asia were one country, it would be the world’s ninth-largest economy. It would also be the most trade-dependent, with a tradeto-GDP ratio in excess of 150 percent. ❖ The Council of Supply Chain Management states that in the United States every year more than $1,5 trillion dollars are spent in transportation logistics. This makes this industry one of the most appealing for other companies to invest in. Among this money, $70 billion are calculated to be spent on air freight. ❖ Logistics costs in terms of transportation are not only related to transportation in itself, but they also have many things to do with the products and supplies they carry. It is estimated that in the United States goods meant to be sold in the retail industry are worth almost $700 billion dollars. ❖ The supply chain in the US is one of the most dynamic in the world since it integrates multiple means of transportations, such as boats, airplanes, trucks, cars, trains, among others. This means that every year in the US 8% of its gross domestic product or GDP is spent on transportation and related logistics. ❖ In the United States, the most common goods moved along retail supply chains are food, electronics, furniture, and clothing. Most expenses associated with logistics are related to these types of goods.
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BRAND SUCCESS STORIES 1:ZARA Kaustubh Ashturkar Ronak Pandya K.J.SIMSR
Introduction: Fashion is a very volatile industry where the market demand for new trends changes very quickly. Hence a great design alone is not sufficient it is very important that the product reached the right place at right time in the right quantity. In order to meet this changing demand it is necessary to have a supply chain network that changes according to the changes in demand. This article discusses the case of Zara that has revolutionised the way supply chain in fashion Industry.
About Zara: Zara was founded in 1963 by Amancio Ortega. The first store of Zara was set up in1975 selling low price imitations of famous market fashion houses. Zara is a part of the â‚Ź 4 billion Inditex group and 100% owned company, based in Barcelona. Zara has over 724 stores in 54 Countries.
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General Supply chain of Apparel Industry: Consider the diagram below it explains General supply chain of Apparel Industry. Globally in apparel industry the channel masters could be retailers or branded manufacturers or trading industries. Zara’s Business System: The main mantra that Zara followed was learning by doing for achieving favourable outcomes. Zara produces and presents limited volumes of new items in its key stores. These designs are produces on a large scale only if consumer reactions are positive. Zara’s design team tracks customer preferences on a daily basis and uses this information about sales potential based on a consumption information system to transmit repeat orders and new designs to internal and external suppliers. The design teams are bridged merchandising and the back end of the production process.
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Design: Zara employees a great team of designers, sourcing specialists & product development personnel for its product lines that include product lines for men, women & children. This highly competent staff designs its products based on information gathered from industry publications, TV, Internet, and film content; trend spotters who focused on venues such as university campuses and discotheques; and even Zara’s young, fashion conscious staff.
Zara’s Supply Chain Management System: As seen from the figure above Zara’s SCM system is designed for short production cycles, quick response (QR) to demand, and reduced number of markdowns. Unlike its competitors Zara prefers keeping almost half of its manufacturing in-house. Rather than following chase economies of scale Zara manufactures & distributes its products in small batches. It wouldn’t be wrong to say that Zara follows Vertical Integration as it manages Design, Warehousing, Distribution & Logistics itself.
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Manufacturing: Zara owns 20 factories near its headquarters. Zara’s factories are heavily automated and focus on the capital intensive parts of production process that includes pattern design, cutting, finishing and inspection. The processed garments are send to 450 workshops that specialise in small scale operations. Zara provides them with necessary training and technology, logistics & financial support so that they produce finest quality of product as per Zara’s standards. The products produced by vendors undergo inspection in various stages. These sewn garments are then ironed, folded, bagged & ticketed at Zara’s manufacturing complex before sending them to Distribution Centre Store Operations: Zara has its store located in highly visible locations, mostly in prime shopping streets in a local market and upscale shopping centres. These stores function as both company’s face to the world as well as information sources .Zara is able to actively managed its portfolio of stores and relocates in response to the evolution of shopping districts and traffic patterns. Older stores are relocated as well as updated in new, more suitable sites. Zara holds its stores to a very rigid timetable for placing orders and receiving stock. It puts price tags on its products before they are shipped rather than at each store. Zara sends half-empty truck across Europe, pays for airfreight twice a week to ship coats on hangers to Japan, and runs factories for only one shift. Summary: For its success Zara sticks to three principles of Supply chain Use of Data: Transfer of both hard data as well as anecdotal information from shoppers to designers and production staff quickly. This data helps in tracking of materials and products in real time across the Supply Chain right from warehouse to the stores Same rhythm across the supply chain Leverage the assets. Zara believes in vertical integration as it produces almost half of its products in its own factories thereby having total control over the quality of its products. MOMENTUM March ‘18 39
BRAND SUCCESS STORIES 2: COCA-COLA Introduction: Coca-Cola is another beverage which has become household name since its inception in 1886 in United States. The only countries in which Coca-Cola has no operations are North Korea and Cuba. It is hard to find a supermarket, grocer or retail outlet without a Coca-Cola product. About the supply chain: The strategic advantage that Coca-Cola has is it’s visibility across the globe luring widespread customers. To achieve that the supply chain of Coca-Cola has played the vital role. The Coca-Cola company produces a concentrate which is a secret chemical the recipe of which is not made public. This concentrate is sold to licensed bottlers all around the world who then add sweeteners and filtered water to produce cans and bottles. Then these bottles are distributed to wholesalers, retailers and vending machines. So how the complex and vast operation is handled worldwide? 95% of the drinks are made in the country in which it is sold reducing distribution time. Coca-Cola also keeps most its source ingredients local, for keeping up with the demand. In the production plant, perfectly clean containers are filled, sealed, labelled, coded and tested with modern automatic technology. It has therefore one of the fastest production lines in the world. The communication of information among the supply chain members is such that CocaCola production plants know when to scale up or scale down production beforehand.
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Why do the products are available everywhere every time? All bottling partners work in tandem with suppliers- grocery stores, restaurants, convenience stores to plan and execute localised strategies for distribution. Therefore, Coca-Cola is known as global business operating on local scale. The company has intensive distribution strategy which is accomplished as a result of excellent relationship with retailers to help ensure products are available and visible to customers.
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GLIMPSES OF FORSE 2017-18 After getting through all the informative articles regarding Operations, its time for the mandatory article for last edition of Forse momentum i.e. Glimpses of Forse InternDiaries: Confusion ends here: It gives a platform for the juniors to listen, ask and understand different job opportunities at SIMSR and take informed decisions for their Career. Basically, it describes about experiences of seniors in their summer internships. KPMG-Six Sigma Green Belt Certification: A collaboration of FORSE with KPMG helps students to get Six Sigma Certificates at a very low rate through a 4-day workshop. Momentum-The Official Operations Magazine: One of the most memorable day was the release day of maiden issue of our magazine – MOMENTUM. A must read for every Business Excellence Enthusiast. Global Supply Chain Management Conference: It is the Flagship event of Forse where dignitaries come from various places. This year, Prof. Dirk Hartel came with 15 students from Stuttgart, Germany. Keynote speaker for this year was Mr.Santanu Guha, Dy. General Manager,Builiding and Factory Division (IC), L&T Constructions and Mr. Ragunath Medge, President, Dabbawala group, Mumbai. XQuizIt: A national level Quiz competition held at SIMSR during GSCM week Stands as major attraction for students across the nation. OpsKeyKhoj: An intra-college Treasure Hunt that took SIMSRites through a roller-coaster ride to find the places hidden behind the clues in our own SIMSR campus.
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GLIMPSES OF FORSE 2017-18 Sanrachna: A Case Study competition conceptualized with a vision of providing budding managers a platform to showcase their business ideas. Industrial Visit ISCKON Kitchen: IV during GSCM week to gain knowledge of supply chain network and detailed structure of working of Isckon kitchen distribution network. JNPT Port: IV during GSCM week to gain knowledge of working of CFS(Container Freight System) and how containers are transferred across countries. Times of India Office: IV during GSCM week to gain knowledge of working of Times of India newspaper that includes their operations, printing, distribution etc. National Level Beer Simulation game: Everyone is fond of this Beer Simulation game. It provokes you to think, analyse and enhances your decision-making process while working in team to reduce the cost in Supply Chain Process. Research Paper presentation: Research paper presentation was organised where presenters come from various colleges to present their paper.
Book Donation Drive: A drive was conducted to donate books for ANKUR ELI kids as a part of literacy promotion program. Knowledge Sharing Session(KSS): A new initiative by 2017-19 batch to increase knowledge of students in various fields of operations like logistics, supply chain, blockchain (supply chain) etc.
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GLIMPSES OF FORSE 2017-18
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Faculty In-Charge
Team Momentum
Dr. J S Lamba Area Chairperson Operations
Designer
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Amman Kr Sharma
Hiral Shah
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