Chairpersons' Note KJ Somaiya Institute of Management Studies and Research is known for its ability to produce excellent managers and leaders in various fields year after year. This comes not only from a robust academic curriculum and faculty expertise but also from
student driven initiatives. FORSE, the operations committee is spearheading such initiatives in the field of operations to help students develop understanding in this field. Momentum is one such initiative that has been taken by our students to enrich that learning. The magazine is an attempt to engage readers’ on state of the art trends in field of Operations and Supply Chain Management My Heartiest congratulations to the team on bringing out this initiative of momentum. I hope that the readers will enjoy this first issue and supplement their knowledge and learning. Dr. J S Lamba Faculty In-charge - FORSE
Area Chairperson (Operations) KJ SIMSR, Mumbai
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FORSEians’ & Editors’ Note Dear Readers, We at FORSE (The Forum of Operations Research and Supply-chain Enthusiasts) , since our inception have been devoted to bringing out excellence and building the acumen of students in SIMSR by organizing various events, international conference and magazines orbited around supply chain and logistics. MOMENTUM is an attempt to bring forward enlightening topics and concepts in the field of operations, supply chain and logistics to our readers. It contains articles based on different themes in each issue. Over the past year, Momentum has covered many topics under various themes including but not limited to Future of Logistics and Supply Chain, 3D Printing, Green Logistics and Smart Supply chain, Technology Driven Supply Chain. The existence of a strong service sector is one of the pre-conditions of economic progress of any country. The service or tertiary sector covers a wide range of services ranging from the most sophisticated ones to those provided by unskilled workers in the unorganized sector. India has made substantial progress on this front since the attainment of independence and is credited with having the second fastest growing service sector in the world. It constitutes a large part of the Indian economy both in terms of employment potential and its contribution to national income. The Services sector, with a share of 55.2% in India’s Gross Value Added (GVA) in 2017-18, has employed 28.6 per cent of total population. Through the September 2018 Issue of Momentum which revolves around the theme “Rise of Service Operations in India”, we strive to imbibe our readers with knowledge on various trends in Indian service sector, operational challenges and how organizations are making best use of this opportunity by excelling in service operations. Articles span across various industries like hotel and restaurants, health care, tourism, logistics, insurance etc. On behalf of the FORSE Momentum Team, who has worked meticulously to bring this issue to you, we hope that the magazine gives you great insights and aggrandize your knowledge bank. Stay tuned for upcoming issues with more interesting themes. Keep Learning!
Hardik Maniar Convener
Ajay Yadav Co-convener
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Ronak Pandya Co-convener
Table of Contents Challenges for Indian Airlines and Airports Pg 1
Growth of Healthcare Industry and Resulting business Opportunities Pg 7
Trends and Challenges in Indian Food Service Industry Pg 11
Strategic Operation Management in Healthcare Pg 19
Global Supply Chain Management Conference Pg 25
Intern Diaries Pg 28
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Industrial Visits Pg 15
Robotic Process Automation in healthcare sector Pg 22
KPMG-Six Sigma Green Belt Certification Pg 27
Knowledge Sharing (KSS) Pg 29
Challenges for Indian Airlines and Airports By Krunal Sampat & Niyant Thakar MMS Operations (2017-19)
Remember your 1st flight when you were traveling all alone with anxiety, tension, nervousness, excitement and various mixed emotions flowing through your mind, all at the same time. You enter an Airport and there you see a beautiful lady and a smart gentleman greeting you with a smile and eager to help you. Their humble and caring nature must have encouraged you to understand all check-in and boarding procedures quickly. They are Customer Service Officers who work relentlessly to make every flight you take an experience worth remembering. Welcome to the world of Service Operation Management of Airlines. So, before we deep dive into technicalities on how to improve Airline Operations, let’s have a look at major aspects of Airline Operations.
Airline Operations
Airport Operations
Customer Service Officers
Airport Operation Control Center
Inflight Operation
Ground Staff
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Aircraft Cleaning Staff
Flight Attendant or Cabin Crew
Pilot
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Let’s have a quick look at each of them in brief: Airport Operation Control Centre: They mainly look into 3 major aspects - weather condition monitoring, air traffic control and scheduling & monitoring. Scheduling is becoming more and more challenging as the number of flights entering the network is rising and that’s how Airline companies expand. Ground Staff: They are the ones who work behind the scene for customer safety. Right from firefighting to flight landing & take-off which includes Tug & Tow Operations-Markings, signs & Lights. They also look after luggage handling, equipment handling and aircraft maintenance. Flight Attendant or Cabin Crew: They look after all inflight preparations like equipment check (for safety purpose); ground preparation which includes getting food, setting newspaper/magazine, keeping food ready to serve, giving flight instructions to passengers, serving them meals, etc. Pilot: They are responsible for giving you a jerk free & smooth flight experience. Also, there exist a few more aspects like airport restaurants, shopping stores on airport, overall services cape of airport and catering service for inflight food. Indian Airlines & Airports “By 2033, airport traffic in India will multiply five times to 1.6 Billion” this was the news rolling a couple of months back on release of CAPA Reports (Centre for Asia Pacific Aviation, a global aviation consultancy firm). Its report on India’s airport Infrastructure also says that “if the airport capacity has to keep up with the demand, then by 2030, India will need 500-600 million capacity. Construction of additional terminals and runways, with current productivity, is expected to increase the country’s airports’ capacity from 309 million to an estimated 463 million. But assuming annual passenger traffic growth of 12.5%, this capacity would be saturated by FY2022. May be even earlier than that if the new projects are delayed. Sweating assets can release muchneeded incremental capacity in a relatively short space of time, especially relative to new construction. Developing a greenfield airport can take at least 7-10 years from inception of the plan. Such projects are incredibly complex and face challenges with respect to availability of sufficiently large land banks, rising cost of land in urban centres and other factors.”
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Looking at the infographics here and the explanation by CAPA Report we can clearly understand that just by increasing capacity won’t help Indian Airports. They need to look forward to achieving operational excellence. Before we talk about how to achieve it, it’s important to understand how airport capacity is measured. Airport capacity is measured by two parameters: passenger handling capacity of its terminal buildings and air traffic handling capacity of its runways. Both can be achieved by increasing throughput for passenger flow as well as aircraft flow. In order to increase throughput, we need to make the process more lean by eliminating Non-Value Adding activity as well as 7 types of operational wastes. Now you may start thinking what the construction of airport has to do with Service Operation management of airline? And the answer is “Everything”. Low capacity of airports is the root cause of most of the flight delays in India today as they don’t get clearance from ATC. These delayed flights has direct impact on customer experience. Also, if by improving throughput of customers and aircraft we can improve speed of airline service then that’s what every regular flight traveller pays for right? Using lean techniques can help all stakeholders like Airline by adding to their bottom line, Employees as they don’t waste their energy on Non-value adding activities and customers who gets quickest service possible. It will help in on-time performance, reduce waiting time for passengers, improve overall productivity for Airport & Airlines. Recent McKinsey article “Does your airline still cross seat belts? A ten-point lean checklist for leaders” talks about 10 points were lean practices can be adopted. Like: Replace “box” to size carry-on bags with Length measuring pole at boarding Eliminating approved tags on carry-ons Eliminating Check-in
Making lean improvements a part of every contract with suppliers and many more. But Indian Airport & Airline can do much better by using Lean Management practice in every aspect. Before that they need to have a data collection plan. They must invest in fully-integrated Software management tool which will help them collect & integrate all landside & airside processes & data which in turn would help them get clear top level view on what’s going wrong. This integrating software tool will help in connecting vital links of data set from various module. Say for example Staff Performance from HR module, Customer satisfaction data from Marketing module and On-time Performance and airport performance data from operation module. Analysing this data on continuous basis and apply kaizen followed by benchmarking among various airports will help ultimately to push the operational excellence frontier of all major Indian airports by adopting best practices among themselves and thus help in improving overall productivity.
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This Integrating Software can work on 4 key areas for service performance (4P) viz. Performance Planning: Develop & define the performance targets. Performance Monitoring: Highlighting deviations when comparing performance in execution phase against set targets Performance Management: Taking corrective action on deviations
Post-performance Analysis: Analyse data collected in the process to apply kaizen, eliminated Muda (Japanese term for waste) and come up with preventive action plans. It should also contain Real-time monitoring system & decision support system.
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Recent trends show that Airlines provide same or worse customer service compared to what they did decades ago. Survival is becoming a parameter to judge their success. So, companies need to make good balance between their profitability and good customer service while transiting itself to a Lean Management practicing organization. While doing so airlines will have to make many trade-offs for their own survival. Also, each airline would be following different strategy so we can’t have one-size fits all solution, looking at complexity in which Airlines operate. Airlines can use Profit-Maximizing Operational Performance Approach of BCG to arrive at trade-off considering all the dimensions mentioned in it. This would help them to take integrated & analytical perspective without neglecting any parameter which may result in poor customer service. In conclusion, we would like to say that improving productivity of Airports & Airlines using Service Operation management concepts has the capability to replace the growing need of capital expenditure for new airports to a certain extent. More over if Lean Management concept coupled with good IT & Data analysis is used to eliminated all Non-Value Adding processes and to automate repetitive processes then it has the potential to generate disruption in Airline Operations and bring about drastic improvement in productivity.
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Growth of Healthcare Industry and Resulting Business Opportunities - Shruti Ayush, PGDM-Healthcare Welingkar, Mumbai In the past few decades, Indian healthcare sector has witnessed tremendous growth in business revenue and employment generation across the health care sector. The growth graph shows a drastic boom of 255.55% over the past ten years’ time (from 20082017F). Which is phenomenon for any sector to register. Also, with the advent of new technologies and demand for better health care services because of various factors of which rising health consciousness is one, the concerned market is supposed to register a CAGR of 16.28% growth in the coming few years, which means around Rs.8.6 trillion (US $133.44 billion) revenue share by 2022.
Notes: F - Forecast, CAGR - Compounded Annual Growth Rate Source: Frost and Sullivan, LSI Financial Services, Deloitte, Aranca Research Healthcare forms the most critical part of the overall economic development of a country. As per the present scenario, that the total expenditure on health is below 4% of GDP and the government expenditure is below 1.3% of GDP. However, as per the to new
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National Health Policy(NHP) it has envisaged to increase with economic growth to 2.5% by 2025 according to the government policy (Source: based on an article from The Quint). The pharmaceutical industry being the big players contributes to the Indian economy through manufacturing and exports of pharmaceuticals and Active pharmaceutical ingredients (APIs). The pharma industry of India is expected to become the sixth-largest pharmaceutical market in the world by 2020.
A linear projection based on current trends of health expenditure as a percentage of GDP shows that if the current trend continues, then health expenditure will only go up to 1.7% of GDP by 2025, while the national health policy aims to increase it to 2.5%. Source: Business Standards Budget 2018 The Ministry of health constitutes the policy makers. Indian health care comprises of five different levels starting from the Public Health Sector, which is further divided into primary health care (Village levels, sub-centers and primary health centers), Secondly health care (Community Health centers, Rural and District hospitals) and Tertiary level health care (State level, regional levels, teaching hospitals and All India hospitals institutions).
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Then we have Health Insurance Schemes proving health care. Secondly, there is Private Sector which includes private hospitals, nursing homes, polyclinics and general practitioners. Thirdly, Indigenous system of health care and medicines like Ayurveda, homeopathy, Unani, etc. Next, we have voluntary health agencies. And lastly, National Health Policy- a program where the infrastructure begins from the center levels and reaches various levels, sometimes to the grassroot levels. A series of core activities required to create and deliver a product or service of value to their target or end users customers.it refers to each step of the process adding values to final product or service that serves the end user’s needs. It helps a company to create maximum value at the lowest total cost for its customers along with helping in prioritizing what resources are needed to be utilized. Thus, healthcare’s value chain is no different to other industries; it includes manufacturers, wholesalers, distributors, providers, professionals (like doctors, nurses, etc.), and payers (health consumers or the patients). Generally speaking it covers the key players like the Pharmaceutical companies, medical devices and equipment's, health insurance services and diagnostic centers. The changing pattern of the diseases demands for an innovative approach to deal with it. Every sector associated with health calls upon for a constant research and development in the concerned field. US being the leading contributor in innovation such as the diagnostic scanners, surgical robots and pharmaceutical areas just to name a few. However, India does not play the active part as an innovation centric country to this sector but it very well contributed by involving innovative approach to provide cost effective medical services and devices. One of the frugal example adding value to Indian innovative approach is the prosthetic limb also known as the “Jaipur Foot.” According to the publication Prosthetics in Developing Countries, a prosthetic limb can cost between USD 125–1875 in developing countries, which is just a small portion of what is charged by the States, that is USD 5000–15,000. But the same wooden prosthetics limbs cost around USD 5 and takes few hours to make it. In short it confirms to every frugal requirement of affordability. Another example is Dr. Devi Prasad Shetty’s Brahmanand Hrudyalaya and Aravind eyecare, to name a few which works on economies of scale and works towards delivering low cost high standard medical services. Also, the pharmaceutical industries which were previously the importers of generic medicines have successfully flipped the game and entered the market by not only exporting the generic medicines but also the finished dosage to the global market.
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Talking of the medical tourism, India is the key player in this area and offers a wide range of service in terms of not only medical aid but hospitality and empathy with maximum success rates. The health services in India saves around 65% to 90% of the money as compared to availing similar services in the US. Most of the patients who visit India comprises of not only the neighboring countries but also from the wellequipped nations like US for high standard and low-cost healthcare services. Thus, making India one of the most sought of medical tourism destination. The health insurance market is very limited in India covering only 10% of the total population. Talking of growth prospects for the general economy that are far higher than for most developed markets, India has enormous unmet needs for health care and a huge population of uninsured residents. Even among emerging markets, India is one of the least insured countries, with a low health insurance penetration rate. Most part of the population end up paying for their ailments from their pockets because they aren’t insured. But the situation has lately started to change, as the Indian middle class is also growing rapidly and the rising prosperity of many Indian households is prompting demand for high-quality medical care and increasing private sector participation. The international health insurance tie ups also bring about huge foreign investments which not only covers general ailments but also emergency cases along with high premium exchange rates in terms of currency exchange. For instance, Bajaj Allianz, Bharti AXA and MAX Life to list a few such tie up with the international companies. Thus, enormous opportunities exist across India to engage, educate and generate awareness amongst the customers so as to manage their wellness through an increased preventive care to boost the effectiveness and efficiency of the health care system. Therefore, Indian healthcare sector is full of opportunities for medical devices, growing at the fastest pace with huge capital investment for healthcare related infrastructure whether in rural or urban India and in a wide range of service sectors. advanced diagnostic facilities, ultimately catering to the large part of the population. Also, with the rising literacy rate people are becoming more conscious towards the upkeep of their health. The diverse field of health is full of opportunities in every segment which includes providers, payers and advanced technologies in medical. Moreover, businesses now look up to Indian market for deriving competitive advantages and exploring latest dynamics and trends having a positive impact over their business. The competitive advantage for India also implies a success rate of Indian companies in acquiring Abbreviated New Drug Application(ANDA) approvals. Thus, there is a plethora of opportunities for investment in healthcare related infrastructure whether in rural or urban India and in a wide range of service sectors.
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Trends and Challenges in Indian Food Service Industry -Hardik Maniar, KJ SIMSR, MMS Operations (2017-19) The Indian food industry, the sixth largest in the world, has seen unparalleled growth in terms of revenues and size over the past seven years. The size of the Indian Food Services market in India (organized and unorganized) is estimated at INR 3,71,000 crore in 2018 and is projected to grow at a CAGR of 10% over the next 5 years to reach INR 5,52,000 core by 2020 . Food service industry can be classified in two broad categories Organized and Unorganized with the help of 3 key parameters. (i) Incorporation with appropriate Authority or Government (ii) Organized operations with QC and sourcing norms (iii) Penetration. The unorganized sector does not conform to above parameters and it primarily comprises of roadside small eateries, dhabas, street stalls and hawkers. The organized segment conforms to above three parameters and is further classified in Chained and Standalone formats. Chained Formats are domestic and international formats with more than three outlets present across the country. On the basis of Price (avg. price per person), Speed, variety of product offerings, service Quality, Chained format is further classified in six sub segments: Fine Dining, Casual Dining, Pub Bar Club & Lounge (PBCL), Quick Service Restaurants (QSR), Cafes and Frozen Desserts.
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Growth Drivers Demand Factors
a.
Large share of young population: India has largest share i.e 45% of population below the age of 25 years. Psychographic of youth population in India reveals that they have liberal mind set encouraging experimentation in food and greater consumption. In India eating out is often seen as a habit among youngsters rather than it being occasion driven activity.
b.
Increasing disposable income levels: The growing Indian economy has resulted in higher disposable income. Average Indian is not very much cautious for spending money on food. What they look for is taste, quality and service.
c.
Changing consumer lifestyle: A rapidly growing young population, rising income levels, increasing use of technology in consumer space, urbanisation, brand and style awareness, health consciousness, increased social media activity, hectic life routines, etc. has lead Indians to eat out more frequently from Organized sector within food service industry.
d.
Increasing urban women working population: In urban areas working women population is increasing at rate of 5.6% annually. As more women are spending time on working, time left with them for cooking and meal preparation is reduced substantially. This has resulted in both men and women 16 preferring to eat out during lunch and in many cases even during dinner.
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Supply factors a.
Liberal Economic Reforms: India’s economic liberalization in terms of FDI policies and simpler tax structure has opened up gates for global food business operators. This has helped unorganized sector to learn from global practices and convert themselves to organized sector. Also with the entry of global giants confidence of investors and venture capitals in food service industry is increased. This has helped large number of start-ups in acquiring funding which was one of the most difficult barrier.
b.
Rapidly Evolving Technology: Rapidly evolving technology like App based food ordering, online payment gateways, emergence of third party logistics has helped customers have a seamless experience while order the food from their favourite restaurants. At the same restaurants can utilize idle capacity of their kitchen or start the operations without having to invest heavily on land and infrastructure.
Operational Challenges: a.
Manpower requirement and retention: Food industry in India is one which faces highest turnover rate. Except Head chef, majority workers working in Restaurants are unskilled or semi-skilled workers. It is often seen that many of them, when recruited, do not have any idea about the cuisine that they are cooking. Recruiting, training and retaining the semi-skilled blue collar workers and skilled chefs, managers is one of the challenge that even pioneers in the business are struggling to tackle.
b.
Customer retention: Food service industry is one of the most competitive market where large variety of cuisines and services are being provided at competitive prices. Hence, customer retention is very vital for stability in revenue. A survey by Procedia- Social and Behavioural science demonstrates that Quick service is of higher importance to customers than the food itself. Hence for all types of restaurants it is equally important to maintain highest service quality levels in order create customer delight for every transaction. 17
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c.
Irregular demand pattern throughout the day: Breakfast, Lunch and Dinner are the 3 time slots when a restaurant can be at 100% utilization. However, having sufficient manpower for all the three rush hours means either longer working hours or two shifts of 8 hours each. Longer working hours can lead to higher employee turnover and poor efficiency towards end of the shift and having multiple shifts leads to higher overheads expenditure. Resource levelling hence becomes a tactical task rather than operational in Food service industry.
d.
Need for Strategic Sourcing In order to maintain Quality standards, be cost efficient by eliminating Maverick buying, a restaurant need to have sound forecasting, inventory management plans and healthy relationship with suppliers. Due to perishability of raw materials reliability of supplier is of utmost importance.
e.
Legal and Regulatory compliances Though with the help of liberal economic reforms it has become easier to get investment and ensure the profitability, legal and regulatory requirements for starting a food business is stringent. Depending on the type of operations, one has to get 15-20 licenses before starting the business. Also the process to acquiring licenses and the time required for the same is different in different states.
f.
High real estate prices: Real estate prices in metro cities in India are increasing drastically which results in contraction of profits and eventually shut down. This is one of biggest barrier especially for organized standalone players.
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Industrial Visit Sundaram Multi Pap Ltd. FORSE had organized an industrial visit on 25th August 2018 to Sundaram Multi Pap Ltd. which is located in Palghar 112 kms from Mumbai, for our students. Prof. Ravindra Baliga and Prof. Pramod Shetty were the coordinators for this whole industrial visit.
Sundaram brand was established in 1985. It started off as a school and office paper stationery manufacturing company. It is an organized player in the paper industry with a history of 32 years. Sundaram has witnessed year on year growth because it gives priority to reducing costs and improving the quality of its processes and products. The aim of the industrial visit was to gain insights into the various processes in manufacturing department of Sundaram Ltd. It has over 200 types of products under its brand name. The state of the art manufacturing unit in Palghar is spread over 4 acres of land. The major raw material involved in notebook manufacturing process is paper. Students got to learn about the inventory management, issues such as rate of production / receipt of materials, uncertainties in demand and in time, changes in price / cost, depending upon the quantity purchased / produce, number of distribution centers, among other factors were discussed . Afterwards students were made to understand the various manufacturing practices. The plant has fully automatic, semi-automatic and manual systems for producing different kinds of notebooks.
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For the fully automatic notebook production LineOmatic machine is used, it consists of shaft less reel unwinding stand, 2 colour printing tower, cross cutting unit, sheet overlapping unit, sheet counting and collating unit, one inserter for pre-printed index sheets, one inserter for pre-printed title covers, wire stitching unit, folding unit, mechanical square back pressing unit, book front cutting unit, book separating cutting unit, book flipping & title design mixing delivery table, waste removal suction blower, lubrication system and centralized control panel (PLC). A notebook can be made in 20 seconds using the automatic machines. The bottleneck of the process is 200 revolutions per minute printing speed. Apart from automatic production, they also hire manual labour and this is done with a noble cause of giving employment opportunities to the underprivileged people. Soft bound notebook concept was first brought to India by Sundaram only. They outsource their book covers. Spiral, thread and stapled binding types are used. Their single day capacity is of 5 lac books. The packaging involves bundling the notebooks into groups that can be easily handled and transported to the wholesalers. The demand for stationery is very high when school reopens after summer or winter breaks and also when the new school session starts. 250 employees work during off season and this number rises to 400 during peak season. The annual turnover of Sundaram is 100 cr. The major market states are Maharashtra (70%), Gujarat (25%) and other states (5 %). In Maharashtra 60% of the market is in Mumbai. There are 8 distribution centres in Mumbai. Sundaram has a loyal customer base of 8000 and its major competitors in the market are Navneet and ITC’s Classmate. Visiting Sundaram gave students an opportunity to bridge the gap between theoretical training and practical learning, overall the visit was a holistic learning experience.
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Raymond FORSE, the Operations committee of SIMSR had organized an Industrial Visit to Raymond Worsted Fabric Manufacturing at Vapi (Gujarat) on 25th August, 2018. Prof. Ravindra Baliga and Prof. Pramod Shetty were the coordinators for the 182 km long journey and for the 1st and 2nd year Operations Students. Our journey started at 6.30 am in a bus packed with operations students along with our coordinators. We had a visit to another plant and reached Raymond by 2:00 pm. We were greeted by the HR herself and we felt delighted to see that she, along with her office mates were waiting to greet us.
About Raymond Worsted Fabric Manufacturing Plant Spread over an Area of 112 acres with Plant area being 94.43 acres. Vapi plant is a state-ofthe-art manufacturing facility that produces some of the finest fabric in the world. It was commissioned in 2006 and since then, it has been the main and the most advanced plant of Raymond. It’s a fully integrated plant which process wool from a Sheep’s back onto a Man’s back. The Product development to dispatch time is less than 75 Days. It has advanced Waste Management certifications. It even has a Fully Integrated Design Studio where designs can be made and directly be sent to the Plant.
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Industrial Insights – How Things Work Gaining Industrial Insights was our main motto, and we were lucky to get these. Spread over 112 acres, it has the most advanced machinery from Belgium, Switzerland and Italy. These machines are capable enough to craft the world’s finest suiting fabric - the super 250s wool with 11.4-micron Merino wool which is approximately a fifth of the diameter of the Human Hair. Merino wool is bought at auction in Australia which occurs every year and is brought to India via Steamer. Merino Wool is famous for it’s heat trapping capacity w.r.t. to its weight. The wool is brought into the capacity and stored at its warehouse where it is tagged
Processes The wool is then sent for the Scouring hese untangled fibres are then sent through a Gilling Process, which further straightens the fibre. TheseProcess where the Wool is washed and cleaned in warm water along with detergents. The Raw wool has Grease which is known as Lanolin. This Grease are extracted and sold to the Cosmetic Industry. Grease melts at 45C and water temperature is maintained at 65C.The wool is then blow dried and undergoes a process called Carding which opens up the tangled fibres into a continuous length. T straightened fibres then undergo a process called Combing where the Sliver i.e. the fibre is pulled through a fine-tooth comb leaving contaminations and short fibres behind. The resultant wool is drawn into a rope called as Worsted Roving. The Worsted and wool rovings are spun by a plying twist which binds the fibres together to form a continuous and strong Yarn. Worsted yarn is fine and smooth whereas woollen yarns have more texture and bulk. Wool can be died at almost any stage of the process. Dyeing is done by heating the wool in boiling water and dye. Post forming the yarn, Closed Knitting is done where the fibres are interlocked and thus forming a fabric. In the Finishing stage, the fabric is dipped and treated with a solution to create Wool’s characteristic softness and texture. It is washed, steamed and then process and finally the fabric is ready for delivery which is the Finishing Process.
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Strategic Operation Management in Healthcare -Poornima A S, IIM Raipur Healthcare system today has to deal with lots of change, for becoming more consumer centric, which is trade-off between quality and cost. The promise of healthcare operation is to Pareto dominate by fighting the evil effects of inefficiency - waste, variability and inflexibility. Waste is the consumption of resources and services that doesn’t help patient. Variability is the change in an operational variable overtime – by patient or provider and Inflexibility is the ability of the operation to adjust supply in response to variability in demand.
Health systems are under pressure to do more with less – Reduce wait time of patients with labor costs increasing faster than revenues. For this purpose the need for strategic operation evolves as it is the business strategy which is designed to maximize the effectiveness of production while minimizing costs.
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Conventional Approaches: Increase the effective capacity of the health system by expanding facilities extending hours, new building etc. This would meet the growing demand for healthcare services thereby placing the capital and human resources in place to increase capacity and prevent wait times of patients from getting worse. But this puts additional pressure on capital and operating expense budgets and takes longer period.
Rely on Electronic health record (HER) to provide analytic insights into improving operational performance by establishing a robust database that can serve as the single source of truth. It would help to track access , wait time, utilization and other key metrics. Deploy a comprehensive lean/six sigma/ Process improvement effort across the organization by engaging the entire workforce in process improvement. This establishes the discipline of making metrics visible, standardizing and simplifying workflows but its difficult to capture the operational complexity of healthcare.
Keys to accelerating operational excelence : Providing excellent service processes which have short life cycles increases the velocity. This depends on the availability of staffs and equipment , pre-work accuracy, incomplete order. Shaping demand profiles is done by Sophisticated analytics. This involves forecasting the daily demand volume, mix and timing based on historical data; Generate the geometric models and optimize the workloads and then flattening the demand profile using the concept of Heijunka. Begin with individual departments – Optimizing networks(hubs) requires each nodes(departments) to be performing well before working on interconnections.
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Process mapping : Process mapping flow is from customers view point. This is done by mapping the current state, followed by mapping the future state and finally map the ideal state. This is very helpful for identifying all nonvalue added steps and improve values. This consumes less time and is more granular compared to value stream mapping. Also, it makes wasteful steps obvious.
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Robotic Process Automation in healthcare sector -Saurabh Mathur, PGDBM (Second year), XLRI Jamshedpur Robotic Process Automation (RPA) is one of the fastest emerging technologies revolutionizing the concept of operations in the business. RPA refers to use of software with artificial intelligence (AI) and machine learning capabilities which can be used to handle repeatable tasks which used to be performed by humans. These tasks can range from query handling, performing calculations to extraction and maintenance of records and transactions. RPA technology consists of a software robot (simply called bot) which mimics a human worker in terms of repetitive tasks such as logging in the system, entering data, performing calculations and performing other tasks and finally logging out. The importance of RPA is compounded by the fact that the present business process employs a large number of disconnected IT system to effectively run their operations. With the business processes evolving at a very fast past pace, IT systems couldn’t keep up with these changes. The resulting gap between the process and system is usually filled with hiring more workers or training the existing workers to manually perform the task. This is both a time and money consuming process. RPA provides a very simplistic approach to the problem by deploying these virtual workers who can easily perform the repetitive tasks and comes with the flexibility of easy modification whenever required. The biggest differentiating factor for RPA from traditional automation is its ability to change and adapt to the changing circumstances. RPA has allowed for various benefits ranging from decreased operational costs to lesser errors in the process. As the bots are programmed to perform the task in a specific manner, there is higher accuracy. Through repetitive tasks, the productivity of the system also increases. Bots provide us a mechanism to record data which helps in better documentation as well as better regulatory compliance. Another aspect in which bots increase the operational efficiency is lack of any fatigue which allows them to work continuously.
One of the sectors which has benefited immensely from this technology is healthcare sector. Healthcare sector is continuously looking for improving efficiency while reducing costs. Automation of manual tasks therefore becomes an important practice in overall strategy for them. Some of the areas in which RPA has altered the traditional operations practices in the healthcare sector are –
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1. Care management – One of the most important aspects in healthcare sector is providing proper care to the patients. It involves managing care, coordination of that care, case and utilization management, remote monitoring and promoting wellness. Through RPA, these processes can be easily centralized and streamlined to provide higher efficiency. 2. Higher throughput – Automation helps the hospital management to handle larger volumes of patients which will be difficult to deal when entirely managed by humans. This flexibility also allows the management to transfer some of the personnel to look after other aspects of the business.
3. Improved quality and consistency. With RPA, there are no human errors. The bots perform their tasks regularly with almost no errors. Reduced number pf errors not only improves the image of the hospital, but also helps in reduction of costs as the number of grievances and subsequently their handling costs decreases. 4. Claims administration – Claims settlement proves to be a bottleneck in many cases. It requires a lot of tasks such as inputting data and then processing it, making adjustments to the bills and attending the appeals of the patients. This not only takes a lot of time but is also a cost intensive process due to the amount of work personnel involved in this. All this can be easily replaced by the bots which can easily perform the above tasks with higher accuracy. 5. Manpower savings – With the implementation of RPA, hospitals can reduce the existing manpower in repetitive jobs such as billing, queries and account management. This will realize into huge cost savings for the hospital management. 6. Elimination of waste – RPA allows for lesser physical data to be preserved. All the patient’s history can be easily stored in a digital format and retrieved through these bots. This helps in easier management of data and also reduces the wastage that happens in form of paper. 7. Membership management – Hospitals performs a large number of tasks while maintaining the data for their members. This includes setting up of accounts, checking eligibility, processing enrollments, managing billing and providing benefits to the customers. All of these tasks can also result into a number of errors which increases the importance of RPA due to its higher accuracy.
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Apart from the above benefits, RPA also provides a great amount of insight in the operations happening in the hospitals. They are used to monitor data continuously and provides a feedback loop for analyzing the performance and hence shortcomings in the system. These data driven insights can be then used to modify the operations which will result in higher operational efficiency for the system which can be increased tremendously through these continuous evaluation and improvement cycles in the process. It can be clearly seen that one of the reasons healthcare sector adopted the RPA technology successfully is the increased focus on customer satisfaction. With the traditional operational practices, customers used to spend a lot of time waiting in the queues and faced frequent errors in information processing. RPA has not only reduced the workload but also allowed for higher efficiency. This has brought down the waiting time for the customers which has ultimately translated into higher customer satisfaction. Another important aspect is the ability to scale up as more work personnel are allocated to productive business tasks in place of mundane, boring jobs such as filling forms and processing them. This allows the hospital to handle higher number of patients. With the new technologies coming up such IOT which will further strengthen the RPA system, it can be said with confidence that RPA will have a tremendous effect on the operations in the healthcare sector.
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Global Supply Chain Management Conference It is a flagship event of K.J. SIMSR conducted by FORSE which will be held on 14th December 2018.It is an International Conference for Supply Chain Management enthusiasts to discuss about the growth of supply industry and its importance in future.The key note speaker of this event is Dr.Mai Cao director, School of Business and Economics and also a senior executive from L&T on Logistics is invited to address the event.
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Glimpses of GSCM 2017
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KPMG-Six Sigma Green Belt Certification
FORSE has been organising the Six Sigma Green Belt Certification Course in collaboration with KPMG since the past four years. It is a four day, 32 hours classroom program which aims at enabling individuals to participate and drive improvement projects across domains and industries. The training was delivered by a senior KPMG professional who shared his industry experience and used adaptive learning methodologies. This year, we had two batches in which hundred plus learners successfully completed the certification course. The training aims at helping individuals learn how to improve business productivity by eliminating waste and reducing process variations using the DMAIC- Define, Measure, Analyse, Improve and Control approach. The program is very well structured and covers all the phases of six sigma with the help of current industry examples. In-class assignments on mini tab and real-life based examples shared by the trainer made the sessions more interactive. We truly believe that the learnings from this program are going to be a great value addition to one’s profile.
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Intern Diaries FORSE, the Operations committee of SIMSR had organized INTERN DIARIES where seniors shared their internship experiences and gave the freshman a fair idea of what's all in the pipeline and also how to maximize their chances of getting into their dream company. Seniors from companies like RBI, Arcesium, HDFC, Convonix, JPMC, Ogilvy & Mather shared their experiences. FORSE expressed sincere gratitude to all the freshman for being a part of event “Intern Diaries�, and making it successful.
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Knowledge Sharing Social Media.. Awareness... Knowledge Sharing... YEs all of these are very much interconnected in today's Internet Age. Social Media is proving to be the best platform to share knowledge about any topic and also create awareness about it. Mr. Elon Musk is a brilliant example to exhibit the power of social media. In our goal of spreading knowledge about the Operations and Supply Chain field, we have started a campaign using benefits of Social Media. Aligned with Somaiya’s Motto of "KNOWLEDGE ALONE LIBERATES", we students at K J Somaiya Institute of Management Studies and Research have come up with an interesting and easy to follow content which helps to share knowledge in more creative manner. First is the #Opstionary campaign, which is a series where we share meaning of a terme.g. Kaizen Blitz, and our second initiative is the #OPisodes in which we will share a small video tutorial about the processes or terminologies related to the field of Operations and Supply Chain. The #Opstionary series is continued from the last year, and #OPisodes is a new initiative by hungry minds to be constantly learning new things. Also our quest for knowledge and sharing the same with world in 21st century which as many thinkers’ call “Knowledge Economy” will keep us motivated enough to come up with more such initiative in future.
Ultimately this all shall lead to the mega event of the year that is the "SIMSR GLOBAL SUPPLY CHAIN MANAGEMENT CONFERENCE"to be held on 14th December, 2018.
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To stay connected to our enthusiast followers, we are following a simple mantra of social media activities i.e. posting the content on a regular basis. #Opstionary will be continued twice a week and #OPisodes once in a week. As it is said that 'little drops of water create a mighty ocean', similarly these small knowledge bytes have a potential to form a large database of knowledge.
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Team Momentum
Faculty In-Charge
Dr. J S Lamba Area Chairperson Operations
Designer
Editor
Kaustubh Karanje Piyush Jaju
Debangana Biswas Ganesh Pillai
Contributors Ramprasad Giri | Saumya Joshi | Ankit Budhwani Aditya Abhash | Mallika Bansal Aparna Kulkarni | Arpit Dedhia | Ashley Verghese
Senior Team Deyasini Sanyal | Promit Ghosh Ronak Pandya | Hardik Maniar | Ajay Yadav
Promotions Team FORSE
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Know us more Website www.forsesimsr.com
Facebook Page www.fb.com/simsr.forse
LinkedIn www.linkdin.com/in/forsesimsr
Keep writing to us Send in your subject related entries to forse.simsr@somaiya.edu
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