Manufacturing Today India, September 2018

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MANUFACTURING TODAY AWARDS 2018

JURY MEET

REVOLUTIONARY ROAD THROUGH SHEER BUSINESS ACUMEN AND AN AVANT-GARDE APPROACH, RAJIV BAJAJ, MD, BAJAJ AUTO, HAS CHARTED HIS OWN COURSE TO CONQUER THE GLOBAL MARKETPLACE.

Published by ITP Media (India)

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CONTENTS

18 REVOLUTIONARY ROAD

THROUGH SHEER BUSINESS ACUMEN AND AN AVANT-GARDE APPROACH, RAJIV BAJAJ, MD, BAJAJ AUTO, HAS CHARTED HIS OWN COURSE TO CONQUER THE GLOBAL MARKETPLACE.

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MANUFACTURING TODAY AWARDS - JURY MEET THE GRAND JURY MET TO DECIDE THE FATE OF 300+ NOMINATIONS ACROSS 15 CATEGORIES. THE RESULTS WILL BE ANNOUNCED AT THE AWARDS.

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DIGITAL FACTORIES THE IDEA OF CREATING A DIGITAL TWIN BEFORE MOVING TO ACTUAL PRODUCTION IS BEGINNING TO FIND FAVOUR WITH MANUFACTURING COMPANIES. HELPS THEM SAVE ON PRODUCT DEVELOPMENT.

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PLANT VISIT - TATA MOTORS TATA MOTORS HAS MOVED QUICKLY TO START MANUFACTURING THE TIAGO AND TIGOR AT ITS SANAND PLANT, AFTER REALISING THE PLANT'S POTENTIAL.

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EVENT REPORT - REINVENTING THE FUTURE MANUFACTURING TODAY AND ADITYA BIRLA GROUP JOINED HANDS TO HOST THE REINVENTING THE FUTURE SUMMIT IN CHENNAI AND RUDRAPUR.

SEPTEMBER 2018 | Manufacturing Today

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EDITOR'S NOTE

MADE-TO-FIT TRAINING

Jayashree Kini Mendes

Mitalee Kurdekar

EVERY COUNTRY SETS A GOAL TO POST GROWTH rates higher than the GDP, but few are successful. The government's focus to boost one sector could see a decline in some other one. Markets too are deceptive. So while the government continues to work at the general level, companies must take decisions into their hands if they need to see a leap in profitability. Most Indian companies say that manufacturing is a challenge not in terms of productivity or skills, but in terms of managing variety along with productivity.

I have been thinking for a long time. Why don't Indian manufacturing companies have a kind of liaison amongst themselves? If one company has taken the trouble to train an employee effectively, the same training should hold in good stead across the sector. This reduces time and an employee from one company to another within the same sector can get to work sooner.

We often talk about best practices in the manufacturing sector. Though the large companies are adopting them rampantly, it is the SMEs and MSMEs that need to be given a lending hand. It must become the responsibility of the large firm to handhold smaller firms and bring them up to mark. This way more young entrepreneurs can be convinced to set up manufacturing units, thus increasing its footprint in the country.

India has come a long way in terms of technology, hiring speed, diversifications, among other things. Large companies are on a hiring spree. Recently, most companies announced their decision to hire thousands from technical and engineering colleges so as to have more learned hands on the shop floor. That is because they want to get things done faster and through knowledgeable employees.

No more is the manufacturing sector working on 'gut feel' alone. There's a conscious decision to close information gaps that hinder profitability. Consumers must be catered to effectively and this can only be done if strategies are evolved to customise products for users, instead of launching meaningless new products, when existing ones serve the purpose well.

Meanwhile, companies are looking inward and outward to overhaul their companies and manufacturing strengths.

ManufacturingToday DECISIVE TOOL FOR MANUFACTURING EXCELLENCE

Volume 8 | Issue 09 | September 2018

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ADVISORY BOARD Our distinguished advisory board has been assembled to help guide Manufacturing Today to become even more representative of its community.

Members have been invited from the highest levels of the industry to ensure that the magazine continues on its path of success.

Kishore Jayaraman, President, Rolls-Royce South Asia

Manish Kulkarni, Director – Strategy & Business Development BDB India

N Tarachand Dugar, President, All India Manufacturers’ Organisation (Also chairman, Dugar Group)

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Rajesh Nath, MD & CEO, German Engineering Federation (VDMA), India

Robindranath Som, President, Nickunj Eximp Enterprises

Sandeep Balooja, Managing Partner, S&L Consultants

Satish Jamdar, Chief Mentor and Advisor, American Vision

SM Bhat, Managing Director, Ador Welding

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NEWS KEY HAPPENINGS

BFW INAUGURATES MANUFACTURING FACILITY IN HOSUR, TAMIL NADU

The new BFW facility in Hosur, Tamil Nadu.

Bharat Fritz Werner Ltd (BFW), India’s leading solution provider in the area of machine tools, has inaugurated a smart manufacturing facility in Hosur, Tamil Nadu.

The positive long-term economic indicators and the company’s strategy led them to initiate the creation of this new facility. The first phase is spread across 35,000 sq-ft, which includes a significant number of modern mother machines to enable integration of the existing foundry facility with machining capability. The second phase will expand to 60,000 sq-ft.

Speaking at the inauguration ceremony, Ravi Raghavan, MD & CEO, BFW, said, “This wonderful machine shop will be converted into a smart manufacturing set-up when fully operational in the next few months. This plant will be a true example of what modern manufac-

turing should be.”

Both the facilities will double the machine building capacity of BFW, and will help meet the growing industry demands and remain a strong manufacturing presence for years to come. Its aim is to not only increase profits and remain a global competitor, but also retain and nurture skilled workers. This commitment to employees and community ensures a healthy economy throughout the state line area.

Shailesh Sheth, director, BFW, also expressed his great pleasure on BFW achieving this quantum leap, saying, “As a brand, BFW is now extremely well-established and it has lived up to its brand image and performance.”

This manufacturing facility is built with smart manufacturing technology on the path towards becoming Industry 4.0 compliant.

ELGI EQUIPMENTS ACQUIRES PULFORD AIR AND GAS; MAKES A STRATEGIC ENTRY INTO THE AUSTRALIAN MARKET Elgi Equipments, one of India’s leading aircompressor manufacturers, has announced its 100% acquisition of FR Pulford & Son Pty Ltd, along with its wholly-owned subsidiary Advanced Air Compressors Pty Ltd, doing business as Pulford Air and Gas, based in Sydney, Australia. This acquisition was completed on July 31, 2018.

Elgi Equipments is currently on a business mission of becoming a leading player in the global air-compressor business by 2027.

This strategic acquisition made by ELGi is, in fact, a significant step that the company has made in Australia to expand its footprint

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SEPTEMBER 2018 | Manufacturing Today

in the whole region. Through this acquisition, ELGi gains access to a national pool of customers to grow sales and service in Australia.

Pulford is one of the largest distributors of industrial compressors in Australia and has been in the business for nearly 100 years.

ELGi will gain 100% of the shareholding and control of Pulford.

Dr Jairam Varadaraj, MD, Elgi Equipments, said on the occasion, “Today is a momentous day in ELGi’s and Pulford’s history. It is the integration of two customer-centric organisations with the intent of gaining a leadership position in the Australian compressed air market.”

TATA POWER LAUNCHES ELECTRIC VEHICLE CHARGING STATIONS IN HYDERABAD In line with the Government of India’s vision to achieve 100% emobility by 2030, Tata Power has announced setting-up of three, fast charging Electric Vehicle (EV) stations at the Hyderabad campus of leading IT firm Cognizant.

After recently launching Mumbai’s first EV charging infrastructure, with nine charging stations across significant locations, Tata Power will expand to Hyderabad to encourage people to shift from vehicles run on fossil fuels to eco-friendly electric vehicles.

The two Tata group companies, Tata Power and Tata Motors, will jointly execute the consolidated e-mobility solution as part of Cognizant’s ‘Go Green’ programme for its employees in Hyderabad. While Tata Motors will supply 10 Tigor Electric Vehicles (EVs), Tata Power will provide the necessary electric mobility infrastructure by installing three charging stations at the company’s sprawling campus.

Praveer Sinha, CEO & MD, Tata Power, said, “With the deployment of the fast charging EV stations in Hyderabad, we are happy to make the city more conducive towards a pollution-free environment. This is in line with our endeavour to accelerate the adoption of electric vehicles across the country by providing the much-needed mobility infrastructure to support EV growth.”

Recently, Tata Power partnered with Tata Motors to offer EV solutions and make Maharashtra EV-ready by establishing EV charging stations in the state for public use. Tata Motors Ltd has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to support the Maharashtra Electric Vehicle Policy (2018) in accelerating the adoption of electric vehicles in Maharashtra.

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NEWS KEY HAPPENINGS

GODREJ AEROSPACE PARTNERS WITH GKN AEROSPACE Godrej Aerospace, a business unit of Godrej & Boyce Mfg Co. Ltd, has signed an agreement with UK-based GKN Aerospace, one of the world’s leading multi-technology tier-I aerospace suppliers, for the manufacture of specialised helicopter fuel tanks. Godrej will be setting up a cutting-edge manufacturing facility for the production of these specialised fuel tanks and will be partnering with GKN Aerospace, a world-leader in this technology.

The rubber fuel tanks are an important consideration in the design and safety of helicopters offering crash resistance and puncture tolerance as well as overall weight reduction. The tanks follow stringent product requirements in terms of weight, material used, processes and manufacturing skills.

Emphasising on the collaboration, Surendra Vaidya, executive VP and business head, Godrej Aerospace, said, “It gives us

immense pride to be partnering with GKN Aerospace, the world’s leading multi-technology supplier. We are certain that this partnership will help us establish Godrej Aerospace as one of the key players in the market. At Godrej, we consistently endeavour to serve the best to our clients and winning this contract in a global competition recognises our unwavering beliefs.”

Neel Ghai, group head of supply chain – special products group, GKN Aerospace, said, “Our partnership with Godrej Aerospace will help us to deliver for our customers and keep us at the forefront of this technology. I am confident that this will be a success for us, for Godrej and our customers.”

In the pursuit of exploring niche areas in the aerospace manufacturing sector, Godrej Aerospace has till date invested Rs 200 crore in their facility.

SIEMENS STRENGTHENS ITS DIGITAL ENTERPRISE LEADERSHIP WITH ACQUISITION OF MENDIX the Mendix platform also deployed across other divisions.

As enterprises invest to digitalise their operations, demand for business applications is growing significantly faster than the capacity of IT organisations to deliver them. Low-code Siemens will continue to invest in Mendix’s independent product roadmap. application development platforms provide Siemens has signed an agreement to ac- features for rapid development, deployment quire Mendix, a pioneer and leader in Cloud and execution of applications in the Cloud.

“We acquire Mendix to extend our leadnative low-code application development.

Under the agreement, Siemens will pay ing position in digitalising the industrial in cash €0.6 billion to acquire the com- world, which is a cornerstone of our Vision pany. Mendix will retain its distinct brand 2020+”, said Klaus Helmrich, member of & culture, and continue serving customers the managing board of Siemens AG. Derek Roos, co-founder and CEO of across the full range of industries with its unique platform and broad ecosystem and Mendix, said, “I’m thrilled to accelerate our community. Siemens will continue to invest vision at a much larger scale with the inin Mendix’s independent product roadmap, credible team, assets, industry know-how continuing its legacy as the most-innova- and footprint of Siemens behind us.”

Derek Roos will remain CEO of the comtive, open low-code Cloud platform. Mendix will be part of the software business of pany and join the Siemens PLM Software Siemens’ Digital Factory (DF) Division, with senior leadership team.

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SEPTEMBER 2018 | Manufacturing Today

UNDER 60 SECONDS GP Global Energy Private Limited (GPGEPL), part of UAE-based global conglomerate GP Global, has announced that it has entered into an exclusive partnership with Cepsa, an integrated Spanish oil major, to make and market Cepsa’s marine and power generation lubricants in India.

As per the agreement, GP Global will manufacture, blend, package and even import Cepsa-branded lubricant products in India.

This partnership will also strengthen the in-house R&D facilities at GP Global and develop technologically-advanced products in India. The product range includes cylinder oils, system oils, trunk piston engine oils, hydraulic oils, gear oils, greases and other specialty lubricants required by this industry. Cepsa marine range of products include Cepsa Larus, Gavia, Ciconia and Petrel lubricants, among others.

GP Global Energy will be manufacturing the marine lubricants through a contract with its group company GP Petroleums Ltd at their plant in Vasai, Mumbai, which is already engaged in blending automotive and industrial lubricants over the last four decades.

Tata Power, India’s largest integrated power company, announced that its 100% subsidiary Tata Power Renewable Energy Ltd (TPREL) commissioned 100 MW (50 MW x 2) solar capacity in Anthapuramu Solar Park, Andhra Pradesh. With this, the overall operating renewable capacity of TPREL now stands at 2,215 MW in India.

The sale of power from this solar plant has been tied up under a 25year Power Purchase Agreement with the Solar Energy Corporation of India (SECI). This is part of the implementation of the MNRE scheme for developing grid connected solar power capacity of the Jawaharlal Nehru National Solar Mission (JNNSM) Phase-II, Batch-III of the Government of India through Viability Gap Funding (VGF) mode.

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COVER STORY BAJAJ AUTO

REVOLUTIONARY

ROAD

THROUGH SHEER BUSINESS ACUMEN AND AN AVANT-GARDE APPROACH, RAJIV BAJAJ, MD, BAJAJ AUTO, HAS CHARTED HIS OWN COURSE TO CONQUER THE GLOBAL MARKETPLACE.

PHOTOGRAPHS: ASHISH BALLAL

BY MITALEE KURDEKAR & BIBHOR SRIVASTAVA

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SEPTEMBER 2018 | Manufacturing Today

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“STRATEGY IS NOTHING BUT SPECIALISATION, AND THERE CANNOT BE ANY SPECIALISATION WITHOUT SACRIFICE," SAYS BAJAJ.

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Manufacturing Today | SEPTEMBER 2018

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COVER STORY BAJAJ AUTO 1. Since first launching the Pulsar just 17 years ago, Bajaj Auto has become the third largest motorcycle maker in the world.

2. Bajaj believes that specialisation has been the biggest strength of their strategy.

NUMBERS, THEY SAY, SELDOM LIE. AND IF that saying holds true, Bajaj Auto is on a pretty firm footing. The Pune-headquartered business is the world’s largest maker of three-wheelers and has claim to the third spot when it comes to motorcycles.

Industry insiders know this to be no mean feat, given the cut-throat competition that currently marks the automotive space. However, most exemplary is the way is which Bajaj Auto has remodelled itself over the years in order to stay relevant to the customer and, in the process, retain or better its rankings. And a large portion of the credit for that goes to the man many believe – and rightfully so – to be a revolutionist.

Rajiv Bajaj, MD, Bajaj Auto, may have inherited a gem from his father and his grandfather before him, yet what the scion has done with the company is a case study in itself. The starting point – by Bajaj’s own admission – was a conversation between his father – Rahul Bajaj – and him, around 20 years ago.

“A few years after joining the company, I asked him: ‘What is it that you want me to do here?’, and my father narrated what my grandfather had once told him: ‘Do what you do the best and be the best at what you do.’

While that sounded like a reasonable ask, what did it mean to be the best at what you do; what is the measure of that? My father replied: ‘If you are a global company i.e. your product is accepted all over the world and is successful, only then can you be termed worldclass, hence the best or one of the best,” recounts Bajaj as if it were a recent conversation, probably indicating that the words guide him to this day.

In fact, that dialogue perhaps triggered the long and arduous journey for the home-grown automotive maker to become the global giant that it is today. If one were to travel back in time to that period, one would recall that everything that Bajaj Auto made was sold only in India. And this posed a unique conundrum for Bajaj, given that it is a well-known fact that as you expand the number of markets that you seek to address, you can be successful only if you narrow your product portfolio at the same time.

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“It is very difficult to take all products, to all segments, in all markets; nobody can do that. We were clearly a company that was selling in lots of different segments, but attending to one market. However, we were now talking about going to many markets, so it seemed like we would have to drop one or the other.

In other words, it was time to specialise,” says Bajaj.

THE LONE RIDER There were many who told him otherwise. But Bajaj trusted his gut rather than oft-quoted business school teachings to de-risk by having a large product base.

Being the only one in the family that didn’t go to Bschool, Bajaj is rather glad to have skipped the opportunity, stating that such places are often responsible for teaching incorrect concepts like de-risking.

“In the world of business, the notion of specialisation doesn’t seem to fit very well. People think they can do everything. In my view, this is no good, either for the front-end in terms of the brand, because it diffuses the brand; nor for the back-end, because to create a strong back-end in terms of design, development, manufacturing and supply chain, that can cater to such heterogeneous scheduling requirements is in itself a sub-optimal concept to start with,” argues Bajaj.

Within the world of two-wheelers, both by share volume and definitely by value, motorcycles were the most attractive slice of the two-wheeler pie. The company considered this and made a conscious decision to go after that segment. As a result, it was the end of the road for Bajaj scooters. While a majority of people

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COVER STORY BAJAJ AUTO 3

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many countries in Latin America, Africa, the Middle East, South Asia and South East Asia. In essence, in those 17 years, Bajaj Auto has traversed the journey from not being a motorcycle player to becoming the world’s third largest motorcycle player, and that’s nothing short of impressive.

“This outcome is a result of our desire to be global, followed by our strategy to specialise. My marketing guru Jack Trout once said: You can’t sell, you can only supply a reason to buy. And we did that by building our brand. A brand is like a three-legged stool; the first leg is the product, the second is the story, while the third leg of this stool is the experience. They come together to make a brand. Similarly, when you would have perceived losing what the entire nation want to evolve your product, you must think in terms knew to be the face of ‘Hamara Bajaj’ a gamble, Rajiv of price, design and performance. Finally, one must Bajaj vehemently disagreed. understand that the most critical aspect of strategy is “Strategy is nothing but specialisation, and there timing,” Bajaj explains in a nutshell. cannot be any specialisation without sacrifice. While Of course, he knows a thing or two about timing. both motorcycles and scooters were lucrative busiHe has been successful at drawing nesses, one cannot climb two mouna clear, singular connection between tains at the same time. If you want to the opportunity in the marketplace excel at something significant, you put and the brand with which they seek every man, every rupee, every minute of motorcycles produced today to fulfil that opportunity, and striking into that trust, and if you divide that are exported to 72 countries. while the iron is hot. When there is attention, then I don’t think it can be an opportunity for volumes in twocalled de-risking at all. So, we said to wheelers, the company is well positioned to compete ourselves that we will narrow our focus, and specialise using the Pulsar, Avenger, etc. And when it comes in motorcycles to the exclusion of all other products. to tapping an opportunity for premium motorcycles, And that in itself is the biggest learning and it has been that brand will be KTM. In fact, since first acquiring a the biggest strength of our strategy,” declares Bajaj. stake of almost 15% – which has now increased to about 48% – in Austrian brand KTM AG, Bajaj Auto STANDING APART has powered it enough to take it within inches of HarThe strategy, of course, has paid off, and how. Bajaj’s brainchild – the Pulsar – was their first foray into the ley Davidson, which it may soon topple as the largest motorcycle market, almost 17 years ago. That makes premium motorcycle brand. them a novice when compared to their competitors, Not just that, in 2017, the company inked a nonwho happen to be 50 or even 100 years old. Also, equity MoU for a partnership with UK-based Triumph while they did not export anything back then, over Motorcycles to manufacture mid-capacity motor40% of the motorcycles they produce today are excycles in the 250-500cc range. With this, Bajaj Auto would cover a very important, missing piece of the ported to 72 countries, ranging from developed marproduct puzzle. In fact, such a production feat may kets like the USA, Europe, Japan, Australia etc. to

40%

3. All components vendors are located within a radius of 10 kms from each plant.

4. The Chakan plant has the capacity to produce 1.2 million vehicles per annum.

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WPP license no. MR/TECH/WPP-74/North/2017. License to post without prepayment. Postal Registration No. MCN/154/2017-2019.

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TOTAL PAGES 62 VOLUME 7 | ISSUE 11| NOVEMBER 2017 | `50 Registered with Registrar of Newspapers under RNI No. MAHENG/2011/37959.

CUTTING TOOLS THE RIGHT CUT

EVENT REPORT AUTOMATION FAIR 2017, HOUSTON Published by ITP Media (India)

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COVER STORY BAJAJ AUTO

well give them a serious edge over competition.

“Yes, I think that was a very obvious missing part.

Once we put that into place, then between Bajaj, KTM, Husqvarna and Triumph, we would have covered at least 90% of all addressable consumer-run segments. There can always be some niches that you don’t cover, and that’s okay. Therefore, we don’t worry about the remaining 10%. But yes, in terms of substantial presence, I think that is achieved. With these brands, we are able to address all markets in the world,” states Bajaj.

Having said that, he also believes that a two-sided approach is instrumental to such plans. On the frontend, one can seek to be more global by specialising in a product, have a play in various segments, create different brands and cater to different places, but that is just marketing. On the other hand, the back-end reflects what one has achieved in terms of competitive versatility.

“For example, Africa as a continent is a big market

5. The company acquired about 48% stake in Austrian brand KTM AG, and has since powered it to the top of rankings.

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SEPTEMBER 2018 | Manufacturing Today

BETWEEN BAJAJ, KTM, HUSQVARNA AND TRIUMPH, BAJAJ AUTO AIMS TO COVER 90% OF ALL SEGMENTS.

for us, today, with every third motorcycle sold there being a Bajaj motorcycle. Shipping out a motorcycle for as little as $400 to Africa and also shipping out a motorcycle for as much as $4,000 to Europe depends on how we build that modularity into our back-end i.e. into our design, into development, into engineering, into purchasing, into production, etc. As a motorcycle maker, our strategy is to be an inch wide and a mile deep. You don’t want to give up any segment,” Bajaj points out.

Yet, not many other players are able to apply this strategy with much success. “Whether it’s an American, European, Chinese or Indian maker, they are in one market or the other. They are not present across markets. To the best of my knowledge, Bajaj Auto is the only motorcycle company that you will find operating in all types of markets,” he states with pride.

MAKING IT COUNT And the way Bajaj Auto is able to do that is through its strong manufacturing base. They run three manufacturing units at Chakan (Pune), Waluj (Aurangabad) and Pantnagar (Uttarakhand). The Chakan plant produces premium motorcycles in the Bajaj portfolio, including the Pulsar, Avenger and KTM series. It has the capacity to produce 1.2 million vehicles per annum. In addition, it doubles as a manufacturing laboratory to develop innovative technologies for production processes and production management techniques.

The factory at Waluj manufactures the entry commuter and deluxe commuter range of motorcycles.

It also houses the facilities that produce the threewheeler range and the quadricycle. Further, the Waluj plant serves as the export hub for Bajaj Auto, with around 60% of the monthly production meant for exports. Finally, Pantnagar is the location for their youngest plant. This unit produces the same range of motorcycles as the Waluj plant, while catering to the demand from the Northern and Eastern parts of India.

Typically, each plant has two manufacturing streams, engine manufacturing and vehicle parts manufacturing, which come together at the vehicle assembly stage. The engine stream comprises of parts production, machining, assembly and testing. The vehicle stream comprises of parts production, painting, vehicle assembly and testing. Overall, 95% of the raw materials and components needed are locally sourced in India. All vendors, who make components to their drawings, are located within a radius of 10 kms from each plant. Other vendors, who produce components to industry standards, such as tyres, batteries, bearings, fasteners, etc., tend to have warehousing facilities within Bajaj Auto’s three supplier clusters – Chakan cluster, Waluj cluster and Pantnagar cluster.

“We are firm believers of the fact that no demand can be accurately forecast in the current VUCA world.

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COVER STORY BAJAJ AUTO 6

Over the last few years, we have been striving to develop a supply chain that is highly flexible and very agile, that can respond very quickly to fluctuating demands and varying model mixes. Therefore, we share only the firm, monthly plan for the next month’s production. Having said that, we review our medium-term growth plans and share them sufficiently in advance with our supply chain for necessary capacity augmentation,” says Pradeep Shrivastava, ED, Bajaj Auto.

In fact, he does not rely too heavily on management principles, believing that there is no science there since results are not repeatable. A proponent of yoga and homeopathy, Bajaj admits to drawing inspiration for his management style from the two ancient gems, stating that there is a definite science involved in their practice. And given Bajaj Auto’s rise to the top, these mantras sure seem to have worked for his company.

IT’S NOT ALL ABOUT THE NUMBERS Despite all the fuss about the numbers game, Rajiv Bajaj doesn’t care about results. “In the words of Rumi: We chose our joys and sorrows much before we experience them. You have to find joy in your technique, which helps make your strategy competitive. To me, success is being at ease. If sales are at a certain level and, at the same time, if my people are at ease – not complacent, but not stressed either – wherein they’re enjoying what they’re doing, then I will say we’re successful,” confesses Bajaj.

That all sounds good, but of course, as the man at the helm, Bajaj would want a larger share of the proverbial pie? To that, he says quite simply, “I wouldn’t say that. Instead, I would say that we always want to build a better motorcycle.”

It’s hard to dispute that claim. The company has stood the test of time by trying to deliver better products through the ages. Speaking of which, it’s now time for the electric vehicle. And Bajaj is ready to join

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the bandwagon, having already announced plans to launch an electric model by 2020. “Shared electric mobility is a very exciting new space that is coming up, not only because it helps us to grow, but because it is very relevant to society. Creating products that are suitable for this space is a very exciting challenge, and a very meaningful process. If we can supply a reason, society will buy such products,” supplies Bajaj, albeit also observing that this is not yet a viable option for OEMs to make any money off. While it remains to be seen how both OEMs and the Government tackle the challenge, Bajaj has a better approach to solution-finding.

“I believe in the power of observation over thinking.

Thinking is a very egoistic process, especially when you feel that you will come up with a solution in that way. I prefer to observe, because there is no need to reinvent the wheel when somebody else has done it.

They probably made a mistake and all you do is learn from other people’s mistakes. The starting point is a weakness that you try to overcome, which is turn makes you a success,” Bajaj says coolly.

As far as lessons go, if there is one take-away from a meeting with Rajiv Bajaj, it is this: Observation and instinct often triumph teachings from the best Bschools. And that is a lesson worth learning!

6. Unlike its competitors, Bajaj Auto appears to be the only motorcycle company successfully operating in all types of markets.

7. Bajaj Auto has announced plans to launch an electric model by 2020.

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GRAND JURY MEET MANUFACTURING TODAY AWARDS 2018 1

GETTING IT RIGHT THE GRAND JURY MET TO DECIDE THE FATE OF 300+ NOMINATIONS ACROSS 15 CATEGORIES. THE RESULTS WILL BE ANNOUNCED AT THE AWARDS.

BY JAYASHREE KINI MENDES

1. The Grand Jury pose for a picture.

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SEVEN YEARS. YOU WOULD THINK THAT some kind of complacency must have sunk in. Far from it. The team at Manufacturing Today continues to drive the 7th Manufacturing Today Conference & Awards with the same vigour it did since it took over.

The annual affair that culminates in September sees its beginning in June when the team starts inviting nominations from manufacturing compa-

SEPTEMBER 2018 | Manufacturing Today

nies. The 15 categories encompass all aspects of manufacturing such as operations, technology, quality, supply chain, training & skill development, engineering design, sustainability and human resources.

The categories mentioned here are for the large and small companies. There are people awards for plant heads, next generation leader and entrepreneurs.

Over the years, we have continued to add new aspects to the nominations. From tweaking the pa-

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GRAND JURY MEET MANUFACTURING TODAY AWARDS 2018

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rameters to including new ones, Manufacturing Today has relied on the wisdom of the Jury members to add weightage to the overall awards. This year too, we incorporated some of the suggestions from the last year and fine-tuned the nomination process further. It has only whetted the flavour of the awards.

Having finished with the nominations, we moved on to the Jury Meet that was held on August 22 in Mumbai. Our esteemed Jury members (see box) gathered to pore over each nomination and had their work cut out for them.

Sanjay Bhan, director, ITP Media Group (India), began the day by welcoming the Grand Jury and offered them an insight into the magazine and Awards.

Addressing the Jury, he said that the the rising popularity of the magazine and its familiarity in the world of manufacturing companies was a stepping stone to the awards.

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The Editors offered a glimpse into the nomination process and the methodology. The Jury was given the parameters for each category and asked to rate the nomination on a scale of 1 to 10, with one being the least. The Jury was divided into five groups and each group was handed a bunch of nominations across categories. Thus began their day.

Speaking on the sidelines of the Jury Meet, Ashok Kumar said, "Some of the nominations are really outstanding. There has been a focussed approach to

2. Sanjay Bhan welcomes the Jury in the morning.

3. The Editors explain the methodology.

4. The Jury at work.

Manufacturing Today | SEPTEMBER 2018

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GRAND JURY MEET MANUFACTURING TODAY AWARDS 2018

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THE GRAND JURY Ashok Kumar, Senior Expert, McKinsey & Company B Anil Baliga, Sr. VP, VECV Bhadresh Dani, VP, Drives & Automation, Bharat Bijlee Fernando Rocha, Head of Industrial Engg CE Plant, Continental Auto GK Pillai, MD & CEO, Walchandnagar Industries Guruprasad Rao, Director & Mentor, Imaginarium India Jitendra Mahajan, Chief Supply Chain Officer, Marico Manish Kulkarni, Director, BDB India Rahul Mishra, Principal, AT Kearney Dr Rajeev Mishra, Chief HR Officer, Hindustan Platinum Rajesh Nath, MD, VDMA Rakesh Tripathi, Global Head, Heating Business, Thermax Robindranath Som, President, Nickunj Eximp Enterprises Shekhar Chaudhari, Principle, Goldratt Consulting SM Vaidya, EVP & Business Head, Godrej Aerospace V Anbu, Director General & CEO, IMTMA

5, 6, 7 & 8. The Jury pores over the nomination forms to arrive at winners and runners-up.

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sending them across."

Most Jury members are well aware that raising efficiency is what every company must indulge in.

Fernando Rocha said that this must be revisited regularly to understand and is an endless job. He was surprised to find several companies implementing strategies that are simple and could be made global.

Considering that Indian companies are going global, there's a dire need to improve expertise in terms of technology impetus. GK Pillai said that this will help

SEPTEMBER 2018 | Manufacturing Today

stress on quality and lead time. Once Indian companies improve the quality of goods and gain lead time, they can meet global standards.

Adding to this, Rahul Mishra said that access to technology and skilled manpower could help buoy SMEs. There are government and institutional agencies that have been trying to bridge the skill gap.

The SME sector is what needs a boost. In this vein, Rajesh Nath said that they plan an important role in the manufacturing sector in India. They need to scale themselves to play in the global sector.

As a global company that offers expertise to manufacturing companies, Shekhar Chaudhari says, "Customers need to see value. One can only look within the company to improve themselves; it must help consumers. The quality of work that companies are doing is remarkable."

As India aspires to become a global super-power, manufacturing is an integral part of it. The Make in India concept will help companies create more jobs, said Rakesh Tripathi.

Overall, the Jury was impressed with the quality of nominations and most of them said that there were plenty of takeaways. It's the small improvements that help companies improve processes and gain an advantage in the market as ultimately seen in the products they push out in the market.

The day ended with the Jury awarding points and choosing the winners in each category, thus bringing an end to a long day. Jury members were felicitated for their enduring work.

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SPECIAL FEATURE DIGITAL FACTORIES 1

THE GEMINI MAKERS DIGITAL FACTORY IS GAINING GROUND. THE IDEA OF CREATING A DIGITAL TWIN BEFORE MOVING TO ACTUAL PRODUCTION IS BEGINNING TO FIND FAVOUR WITH MANUFACTURING COMPANIES. HELPS THEM SAVE ON PRODUCT DEVELOPMENT.

BY JAYASHREE KINI MENDES DESPITE A TIMIDITY ABOUT DIGITISATION, manufacturers are beginning to recognise its strategic potential, which previously tended to be overlooked. Moreover, in a sharp departure from the recent past, the possibility of being able to immediately tailor products to match customer preferences and to offer customers the option to “build” their own products appears to be driving production decisions more strongly than slashing labor costs. Most of these can happen because manufacturers want to get it first time right. More Indian companies are warming up to the thought of manufacturing faster with shorter lead times and improving quality. Only a digital factory can help them with this process.

A digital factory often calls for a whole new set of rules, including increased agility, new technology solu-

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tions, and cross-functional teams. Those differences have often spelled success for companies trying to develop and push out new digital capabilities quickly.

Sunil Mehta, GM, automotive business development department, Factory Automation & Industrial Division, Mitsubishi Electric India, says, "Technological advancements are reducing the gap between automation and IT operations. This helps cross-functional teams across the value chain with respect to real-time visibility, better and faster decision making, which results in increased productivity and quality."

Mitsubishi Electric, in association with alliance partners, provides an extensive solution to utilise full potential of technologies and enables digitisation.

The solution is focussed on a wide range of factory

1. 3D rendering Cyborg control robot assembly line in car factory.

Manufacturing Today | SEPTEMBER 2018

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SPECIAL FEATURE DIGITAL FACTORIES

automation products from Field Layer to Control Layer & IT Layer, including faster networking solutions.

Together this comprehensive solution is termed as ‘e-F@ctory’. This is possible through diverse experience, knowledge and technologies unique to Mitsubishi Electric and its alliance partner companies.

In recent times, digitisation has changed the face of the manufacturing sector. Some have started using digital factories as incubators of more agile ways of working. Thiru Vengadam, regional VP for Epicor Software in India, says, "A digital factory uses a combination of various technologies to operate and communicate more effectively. It is a realisation of the potential of modern technology such as the Internet of Things (IoT) combined with artificial intelligence,

“Technological advancements are helping cross-functional teams with real-time visibility, better and faster decision making, which results in increased productivity and quality.”

– Sunil Mehta 2. Man using tablet PC against industrial equipments in factory.

SOME HAVE STARTED USING DIGITAL FACTORIES AS INCUBATORS OF MORE AGILE WAYS OF WORKING.

and data science. Implemented right, it can enable manufacturers to improve efficiencies whilst reducing costs. It challenges the way that manufacturing—at its very core a risk averse sector—functions by centralizing and integrating systems from shop floor to top floor."

THE BEST OF AUTOMATION One company that has acted on its words is Siemens. Last year, Siemens opened its first digital factory in India, also the third globally after one each in Germany and China, as the industrial conglomerate pitches smart facilities to small and medium scale enterprises in the country. The German company hopes to use Mumbai's digital factory as a showcase to sell a range of plant automation equipment and software to Indian manufacturing units. It wants to reduce cycle time and time-to-market, which is becoming more and more critical. This kind of data flow is possible because digitisation is speeding up the whole process and improving overall value chain.

Agreeing with this, Kiran Divekar, director, DELMIA, Dassault Systèmes India, says, "Digital factory calls for transformation. In fact what we have to offer is what we call the 3D experience twin. I don’t want to call it an additional factory because in 3D experience twin, the technologies we provide marries with what we called as a virtual model. It is what you want to create out of the factory with real time data.

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SEPTEMBER 2018 | Manufacturing Today

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SPECIAL FEATURE DIGITAL FACTORIES 3

It is marrying virtual with the real."

Few businesses have not already tried something in terms of a digital transformation. The ones who are doing it are launching pilots and trying experiments.

It takes a leap of faith to pivot from what they’ve been doing to moving toward more of a digital-factory model. It is possible for companies to start the factory as a virtual factory, if you will, in that you tie together a few of the different initiatives that are already going on under the same set of rules and culture and operating model. In a banking context, one could say the digital factory is there to support the migration of customers in terms of digital sales, service, and engagement and building the capabilities to support our customers.

In an energy company, one might say want to dramatically increase the level of automation and monitoring that happens in the mines. But all these activities need talent to deliver on those things, a number of people, manage the culture shift to help create and what that means for the setup, etc.

It takes decades for companies to upscale factories and retrofit existing equipment to take full and proper advantage of the capabilities of IoT and the unprecedented volume of information it can generates. One needs to make sure that the manufacturer gets the quality and efficiency of performance that

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IT TAKES DECADES FOR COMPANIES TO RETROFIT EQUIPMENT TO TAKE FULL ADVANTAGE OF THE CAPABILITIES OF IOT. they get from other areas of their lives. One of the most important things is not only getting the data off the machines but having the analytics to self-correct.

And that’s a journey.

Vengadam says, "Epicor offers powerful software solutions with the necessary industry-specific functionality to manage complexity, optimise processes, and support business growth. The global ERP solution, Epicor ERP, helps businesses get fit for Industry 4.0 by supporting real-time reporting, analytics, automation, and IoT—modern technology that can power innovation and business growth. Our prod-

“I don’t want to call it an additional factory because in 3D experience twin, the technologies we provide marries with what we called as a virtual model.”

– Kiran Divekar

3. Engineer using tablet, heavy automation robot arm machine in smart factory industrial with tablet real time monitoring system application.

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SPECIAL FEATURE DIGITAL FACTORIES 4

THROUGH DIGITALISATION, INDIAN SMES CAN BUILD A COMPETITIVE EDGE, ENTER A HIGHER VALUE CHAIN. uct strategy embraces the unique strengths of the Epicor industry-specific platforms, underpinned by a modern platform and enhanced with applications that enable digital transformation and raise the bar for automation, analytics, and an improved customer experience."

“Implemented right, it can enable manufacturers to improve efficiencies whilst reducing costs.”

– Thiru Vengadam 4. Industry 4.0 concept, smart factory with icon flow automation and data exchange in manufacturing technologies.

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REACH FOR THE STARS Manufacturing workers can adjust to the capabilities of IoT, but CEOs must “help employees embrace this world”. Factory-floor labour especially may be greatly disrupted in areas such as miniaturisation where human senses and appendages simply aren’t capable of working at the small scale that sensors can. One needs to look for ways to combine the advantages of humans with the capabilities of IoT. That may mean hiring or training more controls engineers who do more with data. Or having collaborative robots that don’t do everything themselves but are humans and automation working together.

Divekar says, "Some of the sectors in India that

SEPTEMBER 2018 | Manufacturing Today

are developing building digital factories is the automotive sector. Of course, it's the most competitive now. Perhaps that is the only industry that is seeing much innovations and has a market that sees high demand. Demanding customers implies that OEMs must take the next step of 3D experience twin or a digital factory because they need to be agile in their manufacturing."

Most small & medium manufacturers are clear that digitisation is the future of their business. They may not be knowing how the future would be or how to get there but they can sense the benefits it could bring.

The challenge these businesses see today, is how to move ahead with the implementation of digitisation.

According to Mehta, the key enablers of digital factories are: Data Collection Technologies, Data Communication Technologies, and Data Analysis Technologies. Data collection and transportation is the core of smart factories. he adds that the intelligent analysis of this data will provide performance indicators of the manufacturing process. This data can be used to provide the analytical procedures such as * Descriptive: Used to capture products condition and operation * Diagnostics: Explains the cause of failure or performance reduction * Predictive: Senses the patterns that signal obstructing events * Perspective: Identify measures to improve outcomes or correct problems The common misunderstanding about digitisation is that an organisation needs to change their current operations and invest heavily into new advanced technologies.

Through digitalisation, Indian SMEs can build a competitive edge, enter a higher value chain, and compete with foreign counterparts. This would further broaden the potential of growth for medium and small enterprises. "Epicor ERP is a global ERP solution that provides flexibility and agility to drive growth and opportunity while easing complexity. A single, end-to-end business application, Epicor ERP is available on Cloud or premises. It offers a modular approach with robust capabilities focused on reducing costs, streamlining processes, and improving customer responsiveness across the enterprise for continued growth and profitability," says Vengadam.

For the MSMEs, what is prohibitive is the cost.

Creating a digital factory is quite expensive from an infrastructure point of view besides the cost of the software. A solution is when OEMs work with their supply network, says Divekar.

There's no way out. Indian companies will be required to adopt digitalisation in factories and the government would do well to help the SMEs and MSMEs to make technology more affordable.

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RAJKUMAR MUNOT, GM, R&D - FAID, MITSUBISHI ELECTRIC INDIA, ON WHY INNOVATION IS IMPORTANT. In the last year or so, what are some of the advancements in factory automation systems?

Industry 4.0 is commonly referred to as the fourth industrial revolution. It is the current trend in automation and data exchange in manufacturing technologies.

It includes cyber-physical systems, the Internet of Things, Cloud computing and cognitive computing.

Industry 4.0 fosters what has been called a "smart factory". Within modular structured smart factories, cyber-physical systems monitor physical processes, create a virtual copy of the physical world and make decentralised decisions. Over IoT, cyber-physical systems communicate and cooperate with each other and with humans in real-time, both internally and across organisational services offered and used by participants of the value chain. The six design principles of Industry 4.0 are Interoperability, Virtualisation, Decentralisation, Real-Time Capability, Service Orientation and Modularity.

Mitsubishi Electric has identified this market need in advance and developed e-F@ctory platform.

In process manufacturing, considering that multiple devices speak to each other, how do you help customers connect legacy equipment to modern control systems?

It is very important to provide legacy equipment connectivity to end-users or customers.

Mitsubishi Electric PLCs offer multiple options for FIELDBUS network connectivity as well as Cloud connectivity. It is possible to connect other legacy equipment to Mitsubishi Electric PLCs over a variety of FIELDBUS network options for horizontal integration of control systems and at the same time PLCs can play the role of IoT gateway for vertical integration with Enterprise Resource Planning [ERP] or Manufacturing Execution Systems [MES]. In such configuration, PLCs can play the role of smart gateways which can process the data acquired from different equipment before sending it to other controllers or to cloud storage for more advanced data analysis by higher systems.

Could you give a glimpse into how you look at R&D for the manufacturing sector?

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Manufacturers with constant R&D investments have a higher chance of succeeding in the global market.

To attain the best professional advantage, investment in R&D comes hand-in-hand with processes such as market development and new business processes.

The most successful businesses are always innovative in developing and adapting new technologies and trends. They are always finding new ways to build up their competitive advantages.

There is a strong relationship between the amount of effort put into research and development and the way a company performs. Companies that use R&D investment as the main driver for progress are inclined to achieve better outcomes and overall be more innovative than their competitors

INTERVIEW MITSUBISHI ELECTRIC INDIA

"CLOUD IS A GREAT FACILITATOR"

Cloud is a great facilitator. How does automation systems help in terms of forecasting, quality and asset analytics applications?

Yes, cloud is great facilitator. Forecasting, quality & asset analytics applications requires data collection from production site and data modelling, analysis and sharing to ERP system or cloud 1. Automations systems helps to collect data using various FIELDBUS Network such as CC-Link IE, Ethernet /IP etc.

2. Automation system can do data modelling and Data Analysis by edge computing.

3. Automation System can communicate with ERP (IT) System including cloud How do you incorporate transparency that will allow different divisions to adapt production plans to demand variations and also juggle supply chain performance?

Under the e-F@ctory platform we provide FA-IT Open platform which incorporates four major functions a. Data Collection at Production site b. Data Model Management of site c. Various Applications of Productions site d. Collaboration with IT System, including cloud This will help to realise optimisation of procurement, manufacturing and logistics by connecting the production site and supply chain.

Manufacturing Today | SEPTEMBER 2018

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BCIN is one of the few compressor manufacturers in the world with a complete range of reciprocating compressors.

WORLDWIDE PRESENCE BCIN specializes in refineries, petrochemicals, gas bottling plants, air separation plants, gas transport and storage, CNG/NGV refueling stations as well as public utilities. Distribution also includes compressors for various refineries and petrochemical plants, including in Taiwan, Thailand, China, Japan, Surinam, Saudi Arabia, Jordan, Russia, the Netherlands, Malaysia, Nigeria, Bolivia, USA, Serbia, Oman and other countries.

SWISS QUALITY ENGINEERING BCIN incorporates an advanced manufacturing facility, spread over 6,000 square meters in Kondhapuri, Pune, India. The company is approved across critical standards, including ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007. Its local design and sizing teams carry out pulsation and vibration studies, and thermal analysis for creating premium compressor products. Its inhouse plant engineering and project management play a vital role in offering solutions that carry the famous Swiss quality benchmarks.

The company is therefore constantly engaged in improving its processes, expanding geographi-

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NEW GOALS FOR PRODUCTION In 2011, BCIN embarked on new initiatives to address a host of issues such as new product development, communication and re-use, production efficiency and regulatory compliance. Internally, it wished to reduce lead time for project execution, achieve first-time-right for new products, reduce time and cost spent in design verifications and validation, and employ flow analysis for casting processes. It also sought to reduce manufacturing defects and bring its global centers on the same computer-aided design (CAD) platform.

Earlier, the company faced several restrictions that came with 2D design platforms. The design process was time-consuming, with limitations on re-using existing project data and drawings. It thus depended on external sources for analysis and design. It could also not meet customer demands for 3D data.

BCIN thus formulated some concrete goals to bring its production and processes up to speed.

These were: reduce lead time, create high quality products through advanced design and development solutions, reduce design verification and validation times and costs, and implement a global CAD platform to connect all global organizational peers.

EXCELLENCE IN THREE DIMENSIONS To upgrade its design and collaboration platform, BCIN needed to address several issues. These included the financials of PLM implementation, the switch-over time, creation of databases and stan-

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dards, a standard parts library and training and rollout of the new system. There were also challenges of integration with internal systems like the SAP® solution, and company-specific customizations for the drawing database.

BCIN adopted NX™ software and Teamcenter® software from product lifecycle management (PLM) specialist Siemens PLM Software to meet the above objectives. The core solution was implemented in 2011, followed by integration of a similar CAD platform for the headquarters database and internal standardization.

Calling attention to the advantages of using NX, Atul Prabhune, senior manager, Design and Development, BCIN, notes, “NX is an excellent platform for product development enabling a safe landing for innovation, order execution with speed and accuracy, the best runway for analysis of components and advanced manufacturing techniques.”

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The combination of NX and Teamcenter is formidable in realizing productivity gains, but offers so much more. “By using Teamcenter and NX, you can not only increase your company’s p r o d u c t i v i t y, but also enhance your gravitas in the market,” says Tanmay Vaidya, coordinator, Global Engineering Systems, BCIN. “These Siemens PLM Software solutions represent the best PLM platform available.”

POWERFUL, MEASURABLE RESULTS BCIN has seen project execution time drop by 20 percent. It can execute a maximum number of projects with smaller teams, and rejection rates during assembly and manufacturing have dropped with the help of 3D models. It has also gained in productivity with easy access, standardization and re-use of data, better revision controls, systemic approval processes, Teamcenter interface with the SAP system and use of standard part libraries.

With NX and Teamcenter, BCIN can now deliver more accurate components and reduce development time through collaboration between design and analysis. Representation of assembly components is now easier for actual compressor assembly and assembly at the client end. The goal of first-time-right is now achievable, with improved quality and minimum potential for errors. On a global scale, the company can now exchange data and communicate with suppliers and customers through Siemens PLM Software solutions.

“Teamcenter and NX are the fastest tools that we use to develop new products,” says Kiran Pandit, a key user of the technology at BCIN. “They are easy to work with and allow the efficient re-use of data across global teams.”

“By implementing Teamcenter and NX, we have achieved globally benchmarked design processes, apart from being able to optimize resources and achieve collaboration across teams and locations of our global subsidiaries,” notes Vaidya.

R. S. Gunaji, General Manager, Design and Manufacturing, Burckhardt Compression (India) Pvt. Ltd., concludes, “Teamcenter ensures data security and NX provides a very good platform to serve as input for various additional analysis software. Our next mission is to use these tools for CAE in our manufacturing.”

Manufacturing Today | SEPTEMBER 2018

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SPECIAL FEATURE ERP

BEING RESOURCEFUL ERP SOFTWARE TODAY TRANSCENDS A BUSINESS ORGANISATION’S BOUNDARIES WITH DIGITAL INNOVATIONS LIKE CLOUD COMPUTING ASSISTING IN DATA MANAGEMENT.

BY MITALEE KURDEKAR

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SPECIAL FEATURE ERP

ON AN ORGANISED SCALE, ENTERPRISE Resource Planning (ERP) systems were first introduced to businesses with core modules in manufacturing and supply chain, later extending to sales, marketing, human resources and general accounting functions. Over the past two decades of ERP evolution, organisations have gathered a host of data points that, if analysed and utilised in a meaningful manner, have the potential of being turned from a data mine into a wealth of information and intelligence.

Explaining this scenario in the context of modern business enterprises, Neeraj Athalye, VP, innovation & digital strategy group, SAP Indian Subcontinent, says, “Today, every CEO wants to leverage Data & AI (Artificial Intelligence), ML (Machine Learning) and IoT (Internet of Things) to enable an intelligent enterprise, which can drive business outcomes such as total customer experience, step change in productivity and transform the way the workforce is engaged.”

The opportunities are immense. IoT would enable the capture and analysis of data in a real-time. On the other hand, Data Analytics and solutions arising therefrom would help enterprises manage both structured as well as unstructured data. In addition, AI applications would support capturing, reading and predicting based on past data, responding and executing transactions in a seamless manner.

Appreciating this positive change, Pradeep Aggarwal, senior director, Cloud, Oracle India, suggests, “Manufacturers must view themselves not just as product companies, but also as service companies. This combination will enable businesses to offer more compelling value propositions to their customers and open up new revenue streams. This approach can be powered by new technology, such as IoT.” Speaking about Industry 4.0 implementation, Aggarwal adds, “Growth in an Industry 4.0 environment will be closely linked to the ERP system. If businesses intend to leverage the growth opportunities being presented in the age of intelligent manufacturing, the production and management functions will have to work in a collaborative environment as an integrated unit.”

DIGITAL TRANSFORMATION Talking about the modern digital era, new technologies that are now emerging will have a much more profound impact on the ways in which organisations will work in the coming years. The CXOs helming these companies will have to re-invent themselves and change the organisational structure to adapt to this digital transformation. If they don’t, they are most likely to get left behind as others will move ahead of them in the ensuing race. While the pieces of software and hardware are easier to adopt, the most difficult part would indeed be to alter the organisational structure and culture.

“We see organisations extending the core ERP to adopt cloudbased applications to add value to distinctive business processes.”

– Pradeep Aggarwal

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SPECIAL FEATURE ERP 1

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“Today, every CEO wants to leverage Data & AI, ML and IoT to enable an intelligent enterprise.”

– Neeraj Athalye

1. Cloud computing has had a significant impact on ERP. 2. ERP in its traditional form has gradually given way to an intelligent form of ERP – i-ERP.

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Cloud computing is one such component of the new digital landscape. Its impact on ERP is significant, wherein the computing platform is available to users as a common processing platform. Thiru Vengadam, regional VP, Epicor Software in India, explains, “Worldwide, more Epicor customers are choosing to deploy ERP in the Cloud to benefit from the compelling economics of Cloud, while enabling a growth strategy fit for future growth. The Epicor ERP solution, unlike competing products, comes with a single line of code that is the same in the Cloud as it is on-premises. This means customers do not have to go through a cumbersome time-consuming migration process if they decide to move from onpremises to the Cloud, or vice versa.”

“With cloud computing, implementation has be-

SEPTEMBER 2018 | Manufacturing Today

WITH PLATFORMS LIKE THE CLOUD AND MOBILE COMPUTING, INTEGRATION AND INTERACTION HAPPENS IN REAL-TIME. come much faster and the time to benefit can be in a matter of weeks, as against the average time of six to nine months that it takes to get an on-premise system implemented,” confesses Vengadam.

Athalye of SAP elaborates, “Demand collaboration with suppliers, inventory collaboration, subcontracted capacity and many such scenarios have been there for a long time and supported by SAP. However, in the digital world, business models are completely transforming business processes, where we see examples of products as service, additive manufacturing, and asset as a service, which require a completely different level of collaboration and business network solutions.”

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SPECIAL FEATURE ERP 3

Farrokh Cooper, chairman & MD, Cooper Corporation, recounts his experience, indicating that customers are seeing value in this. He states, “We are in the process of interfacing our set-up with those of our customers and suppliers to improve seamless flow of information and continuously changing requirements. We have achieved significant benefits in managing supplier orders and accounts payables.”

VALUE CREATION Data turning into information and thereafter paving the way for drawing intelligence by itself means that the whole process will result in value creation, provided it is handled effectively. The tools provided by the latest digital technologies essentially make that happen. Tools like ML and robotic process automation help gather data as the processes operate and integrate with each other. Often, with platforms like the Cloud and mobile computing, this integration and interaction happens in real-time. In essence, the entire exercise of gathering data mines results in processing information with data analytics software support. The information so created is then turned into intelligence to draw inferences and support for future decision-making processes.

Moreover, the ERP system implemented by an organisation can go beyond its premises and result in value enhancement. As Oracle’s Aggarwal points out, “Today, when we look at the full spectrum of ERP, we see organisations extending the core ERP to adopt cloud-based applications to add value to distinctive business processes such as production monitoring, vehicle scheduling, maintenance management, and above all, valuable real-time insight into business that can be used for decision support.”

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In this context, Athalye proudly elaborates on the SAP ERP software’s added capabilities. “Some of the scenarios where SAP solutions are extending the ERP beyond the enterprise are SAP Connected Products, SAP Asset Intelligence Network, SAP Ariba Business Network for Procurement and Sourcing Collaboration, SAP Fieldglass for Contingent Workforce Collaboration and SAP Logistics Business Network,” he says.

He further adds on the Connected Products front, “We see examples in auto OEM companies where they want to provide specialised services collecting telematics data and using the same to collaborate with fleet owners to keep commercial vehicles in high utilisation, best efficiency and low breakdown.”

Similarly, in heavy industries, there is significant opportunity to reduce the cost of running these heavy assets (power plants, refineries, cement plants, etc.) when the OEM of the equipment and the operator of the equipment come on a common network to share information on operating the asset for the best performance through the Asset Intel-

“The Epicor ERP solution, unlike competing products, comes with a single line of code that is the same in the Cloud as it is on-premises.”

– Thiru Vengadam

3. The tools provided by the latest digital technologies generate information, which can be converted to business intelligence.

4. The ERP system implemented by an organisation can go beyond its premises and result in value enhancement.

Manufacturing Today | SEPTEMBER 2018

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SPECIAL FEATURE ERP

5

A MOVE TO THE CLOUD IS INEVITABLE, AND NO BUSINESS ENTERPRISE CAN AVOID IT. ligence Network, he says.

On the other hand, the Ariba commerce network provides a seamless collaboration between suppliers and buyers. Collaboration between shippers, carriers, logistics service providers, ocean liners and many more stakeholders in the logistics space is enabled via the logistics business network.

“We are in the process of interfacing our set-up with those of our customers and suppliers to improve seamless flow of information and continuously changing requirements.”

– Farrokh Cooper 5. By using ERP solutions, Cooper has achieved significant benefits in managing supplier orders and accounts payables.

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GOING BEYOND BOUNDARIES Today, with Cloud and mobile computing, ERP and its applications are overcoming boundaries and going that much farther. The size or the location of the user entity does not matter at all when one looks for Cloud computing platform and software solutions.

A move to the Cloud is inevitable, and no business enterprise can avoid it, knowing the value and convenience of such applications.

Given this, the next question is regarding data security. This is an important consideration for all the stakeholders to address. Traditionally, ERP software was confined to and within the control of individual businesses, hence, there were no concerns on data security and integrity. For the sake of business data sensitivity and its importance for business continuity, these ERP systems were far more secure. Things are rapidly changing.

ERP systems using IaaS (Infrastructure as a Ser-

SEPTEMBER 2018 | Manufacturing Today

vice) offered by private service providers can be used by small and medium enterprises who seek privacy and data security, but which do not offer a lot of analytical capability. However, ERP offered on the Cloud with SaaS (Software as a Service) is more cost-effective, but comes with low security on data.

Aggarwal states, “Modern-day ERP has comprehensively supported the disparate needs of small, medium and large enterprises in the Cloud with scalability, flexibility and agility in the face of constant economic, political and regulatory uncertainty.”

Yet, he agrees that, “Organisations struggle with the trade-off between perceptions of data security and adoption of modern technology that is mostly available in the Cloud deployment model. Very few organisations understand that professional levels of security provided by Cloud service providers, along with rapid advancement in business IT capabilities, can enable more data security, with greater business benefits than they could implement otherwise. The most significant challenge of all, however, is managing change and disruption.”

SUMMING UP ERP as a colossal software running inside any business organisation in its traditional form has gradually given way to an intelligent form of ERP, which we can call i-ERP. From the days of recording and accounting; and managing and integrating organisational resources in a closed environment; we have now moved to a new architecture where intelligence and responsible actions are more important. That architecture of i-ERP is now feasible with a judicious mix of ML, Cloud and mobile computing, Data Analytics, AI, robotics and IoT. Migration to Industry 4.0 and increasing dependency on the Industrial Internet of Things (IIoT) supporting superior Data Analytics will help integration on both the vertical and the horizontal scale of industrial operations. This will truly and significantly impact the manufacturing environment today and in the future.

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SPECIAL FEATURE MATERIAL HANDLING

MATERIALLY SPEAKING

WITH MULTIPLE DEMAND DRIVERS, THE INDIAN MARKET FOR MATERIAL HANDLING EQUIPMENT (MHE) HAS WITNESSED SIGNIFICANT GROWTH IN RECENT TIMES. 1

BY BINDU GOPAL RAO

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Manufacturing Today | SEPTEMBER 2018

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SPECIAL FEATURE MATERIAL HANDLING

1. Material handling equipment offers great load control and smooth operation in large warehouses.

2. Godrej's 2 tonne neo electric truck stacking goods onto a container.

3. Godrej's trucks help with multiple applications.

INCREASED INFRASTRUCTURE INVESTMENT, emphasis on the manufacturing sector’s growth, introduction of automation in Material Handling Equipment (MHE) and adherence to safe practices in the country are fueling the MHE industry’s growth. The performance of corporates following successful stabilisation post GST implementation, coupled with the development of logistics’ organisations in the country, is all set to hasten the growth of the MHE industry further changing the dynamics of the business sooner rather than later.

DEMAND DRIVERS In fact, material handling equipment forms one of the most important aspects of the manufacturing sector in India. Growing manufacturing industries such as chemicals, automotive, pharmaceuticals and food & beverages are spurring the demand for warehouses to store and manage their products.

This increasing demand for automated storage, retrieval systems, along with industrial trucks in

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the manufacturing sector, shall be a key driver for this industry’s growth in the near future, due to the rising investments in installing the equipment at distribution centres as well as warehouses. Some of the factors which are responsible for this growth are the increasing investments in infrastructure development, growing penetration of advanced technologies, rising demand for increased automation, and safe working practices in the manufacturing space.

“The current market of powered equipment is approximately 12,000 units and it is expected to grow at a CAGR of 15-18% for the next 2-3 years. Government initiatives such as Make in India are supporting the growth of the manufacturing sector in India. As MHE is primarily used for the movement and storage of goods within a facility or at a site, the need for such equipment is directly related to freight traffic volume. Considering that the Government is focusing on incentivising the manufacturing sector, the logistics market will reap the benefits of this in the coming years,” says Cavas Dumasia, VP, marketing & sales, Godrej Material Handling.

Ravindra Palande, VP, Procurements, Grauer & Weil (India), adds, “The material handling system plays a vital role in managing internal and external manufacturing operations. The material handling products aid air transportation and storage of material in a highly systematic manner, which reduces the risk of handling and transporting raw material as well as lowers the costs involved. This augments the operational efficacy, streamlines the supply chain and helps handle warehouse operations through optimum utilisation. It lowers the handling cost, reduces inventory and shortens delivery time. So, there are very bright prospects for the MHE industry within the manufacturing sector in India.”

TECH TALK The major trend these days is to make machines more environment-friendly. There is also a trend towards the usage of more electric-driven/batteryoperated technology for various equipment that are more environment-friendly. In India, the industry has increasingly started focusing on automation, cost reduction, real-time tracking of shipments, reducing environmental impact and collection and utilisation of data to improve efficiencies.

“We are procuring over 2,000 numbers of raw materials to deliver at five locations. We have developed various reports on inventory, pricing and order status through the ERP system to get realtime alerts. This helps us to have better control on pricing, inventory and effect timely deliveries to our customers,” says Palande.

Trends are focused on operator comfort through

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tion and history of their Godrej machines while on the move.

TAXING TIMES Prior to the launch of GST, the location of customer sites and storage of goods were dependent on states, tax sops and a supplier base. “With GST unifying the market, we anticipate a rise in logistics and warehousing activities as companies would like to consolidate warehouses, which are larger/higher and automated,” says Manojit Acharya, MD, Jungheinrich Lift Truck India.

“GST was something that we had been looking

INCREASING DEMAND FOR AUTOMATED STORAGE, RETRIEVAL SYSTEMS, ETC., SHALL BE A KEY DRIVER FOR GROWTH.

“With GST unifying the market, we anticipate a rise in logistics and warehousing activities as companies would like to consolidate warehouses, which are larger/higher and automated.”

– Manojit Acharya

SPECIAL FEATURE MATERIAL HANDLING

ergonomics, ease of operations and low-cost of maintenance. Users are outsourcing equipment, operations and the trend seen moving ahead is that of hiring & rental services so that they can focus on their core business.

“Another trend that we find among users is that they are revisiting their supply chain and exploring newer ways to store and handle material more efficiently. Nowadays a lot of emphasis is being given to the material movement and handling space, and hence designing of warehouses and factories is being done accordingly. People are no longer just looking at the price of the equipment, but the overall productivity of their people using the equipment, space and material movement. It is also seen that more mechanisation and automation in terms of warehouse management is taking place for handling in the warehouses as well as entire logistics chain. Lack of availability of labour for menial jobs, and rising cost of labour and space, are also driving the automation process,” opines Dumasia.

Godrej is investing in digitisation to enhance customer experience by providing smart services in order to remain connected with the customers. This shall enable real-time experience in fleet management for customers, especially multi-location ones.

It shall empower customers with the data, informa-

4. Jungheinrich has introduced various products over the past few years customised for the Indian MHE market.

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Manufacturing Today | SEPTEMBER 2018

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SPECIAL FEATURE MATERIAL HANDLING

R Shankar, CEO, TVS Logistics Services, India, speaks about the journey ahead.

What kind of forecasted growth is your organisation pursuing over the next 3-5 years, given the emphasis on the manufacturing sector and growing dependence on specialised logistics services?

TVS Logistics has been on high-teen growth and will continue that journey on similar or higher numbers. We have set up an enviable footprint in India through 300plus facilities spread across 29 states.

The company is a leader in automotive supply chain in India, and one of the top service providers for the consumer durables and engineering segments. We are also entering new industries and verticals, and our asset-light operations are enabling us to scale up quickly and add quality infrastructure as needed. Thrust on manufacturing and on logistics outsourcing to organised 3PLs like TVS Logistics has certainly opened up more avenues for us. Our global acquisitions are also giving us access to international best practices and technical know-how, and we are continuously applying these to the Indian market to create a differentiation.

What are the latest technological advances witnessed in India in terms of logistics and how are these shaping the future?

India is a cost-sensitive market, and decisions on automation and technology need to be driven by fundamental parameters of process maturity, volume to be handled, tenure of deployment and ROI desired.

Having said that, the constant desire for higher productivity and appropriate return on investment is encouraging companies to adopt fit-for-purpose automation. Large 3PLs and developers of logistics parks are increasingly adopting automation like ASRS and robotics to offset the higher operating costs, and to also enable improvements in productivity, order accuracy, reduced space requirements, more volume capacity, control of inventory and better customer service. This apart, supply chain visibility is being enhanced with use of track and trace technology, mobility solutions, warehouse management systems, transport management systems, use of RFID and barcoding. Companies like TVS Logistics are using business analytics to make swifter, informed decisions and setting up control tower operations to ensure tighter control on inventory and order management.

What have been the recent changes in manufacturers’ approach to supply chain management, and how has this impacted your business?

GST implementation is nudging companies to prioritise optimisation of warehousing space, network capabilities, and fleet choices, for enhancing speed to market, efficiencies and reducing logistics costs. The contractual value of the agreements is also increasing. In addition to transportation and warehousing services, customers are demanding value-added solutions including demand planning, application of technology, integrated solutions, scalability, better space utilisation, optimum load planning, scheduling and visibility. Large organised 3PL providers like TVS Logistics who have invested in technology and operate with a focus on quality and compliance are benefiting from this shift in mind-set.

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forward to for the past few years. GST has aided easy movement of goods and removed a lot of bottlenecks, leading to a growth in the number of material handling equipment required, which will improve the prospects of the material handling equipment industry as well. Therefore, we expect a faster change in terms of technology upgradation and automation leading to increase in operational efficiency. Further to this, the development of industry status to logistics and the Government focusing on creating cold storage infrastructure has also helped. We expect better infrastructure outside the metro cities, easy and cheaper access to funding, availability of skilled and trained manpower from the government to further fuel this growth,� adds Acharya.

STAYING SAFE Other drivers which are leading to growth in MHE product revenues in India are automation, shortage of skilled labour and enhanced focus on safety. Adherence to safety requirements helps in less breakdown time that ensures consistent supplies, which leads to business growth.

As a matter of fact, adherence to safety requirements and telematics is one of the key drivers for new MHE solutions. Safety is of paramount importance in material handling because this is moving equipment in a plant or a warehouse. One of the biggest benefits of telematics is increased safety, which leads to the biggest cost saving as it prevents accidents, injuries and damages. The other benefits of telematics are gauging maintenance, eliminating idling, keeping track of vehicles and improve routing.

GOING GREEN Growing automation capabilities in the manufacturing space will provide an impetus to the material handling equipment requirements. Automation supports in reducing costs and delivering high-quality products. It eliminates the need for manpower to check-in, sort goods, or to move bins and pallets.

These automated systems scale up the operational needs and drive the business results by reducing errors, increasing pick rates, surging throughput and decreasing labour costs. For instance, Automated Guided Vehicles (AGVs) are an automation solution for moving parts to and from manufacturing facilities.

Machines are designed considering ergonomics and anthropology requirements, while features like adjustable seats, adjustable steering, more leg space and more visibility, all enhance the ease of operation.

Jungheinrich has introduced various products over the past few years customised for the Indian MHE market. In 2017, they launched a range of AMEISE products, which are specifically designed for India and offer warehousing equipment like pallet

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SPECIAL FEATURE MATERIAL HANDLING 5

OTHER DRIVERS TO GROWTH ARE SHORTAGE OF SKILLED LABOUR AND FOCUS ON SAFETY. truck, stacker and forklift. These are used in low-duty applications and provide cost-effective solutions.

Acharya says, “For high-end applications, in 2018, we have launched equipment fitted with lithium-ion batteries. These batteries are extremely compact, 20% more efficient, provide fast charging, provide 4-6 times more cycles, have 100% discharge, and are environment-friendly as compared to the leadacid battery. In future, the lithium-ion battery will be a standard feature for our trucks. Currently, the lithium-ion battery is expensive compared to leadacid variants. However, when we consider the total

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cost of ownership, the lithium-ion battery is more cost-efficient than lead-acid batteries. It is going to be the product of the future. Our lithium-ion batteryfitted MHE are Jungheinrich’s biggest contribution to cleaner and greener technology.”

GOVERNMENT IMPETUS The implementation of GST in terms of unified tax has assisted in the smoother flow of goods within the country. There is more transparency and differential tax structures are eliminated. This has helped the manufacturing and logistics sector, which in turn has increased the demand of material handling equipment.

“All major global players are present in India and utilising their China factories to supply machines in India. We expect the Indian Government to support local manufacturers by providing incentives such as putting anti-dumping duty on finished material handling equipment to support the Make in India initiative,” avers Dumasia.

Given the recent progress witnessed by the MHE industry and the demand drivers in play, positive intent and better policies will only lead to more growth in the near future.

“The material handling products aid air transportation and storage of material in a highly systematic manner, which reduces the risk of handling and transporting raw material as well as lowers the costs involved.”

– Ravindra Palande 5. Growing automation capabilities in the manufacturing space will provide an impetus to the material handling equipment requirements.

Manufacturing Today | SEPTEMBER 2018

47

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Ajay Sardana Chief Sustainability Officer & Jt President Grasim Industry Limited

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PLANT VISIT TATA MOTORS-SANAND 1

A NEW AUTOPIA

TATA MOTORS HAS MOVED QUICKLY TO START MANUFACTURING THE TIAGO AND TIGOR AT ITS SANAND PLANT, AFTER REALISING THE PLANT'S POTENTIAL. 1. Each car is test driven after being rolled out of the assembly line.

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BY JAYASHREE KINI MENDES

SEPTEMBER 2018 | Manufacturing Today

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PLANT VISIT TATA MOTORS-SANAND

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SOMETIMES IT PAYS TO CHANGE HORSES midstream. Provided you have an alternative or backup plan. That's what Tata Motors did at the Sanand plant in Gujarat. The facility, which was set up to produce the Nano, is now being utilised to manufacture the Tiago and Tigor. The smaller numbers of Nano is compelling the company to manufacture other models based on orders received.

What the company did not foresee and expect was that the Sanand plant would soon go on to achieve 100% capacity utilisation. Since the last few quarters,

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Tata Motors has been seeing a robust demand for Tiago and Tigor, and accordingly announced production ramp-up at its plant. The Sanand plant has a production capacity of 1,54,000 units and so far the plant has manufactured 4,60,000 units since its inception in June 2010. The 5,00,000 unit production mark will be celebrated in October 2018.

Speaking about strategy, Mayank Pareek, president, passenger vehicle business, Tata Motors, said, "We have worked a strategy of 'Turnaround 2.0' and that stands on three pillars—sales enhancement, cost reduction, and improving efficiencies. This is where Sanand plays an important role. The whole idea is to win Sustainability in PVs. A lean manufacturing process plays a key role in our growth strategy, enabling the Sanand plant to contribute around 60% of the overall PV production. The plant has already achieved WCQ 3 level in quality standards and we are proud of this achievement.”

The new obsession on cost control is powered by the company’s ‘GEAR’ (Generate idea, evaluate, action and realise the idea) programme. Implemented for the PV business at the start of the ongoing financial year, it's part of a second phase of a turnaround strategy scripted by Guenter Butschek, the managing director. The firm’s ability to pass on costs and command a pricing power will be a key driver of profitability.

“Lean manufacturing plays a key role in our growth strategy, enabling the Sanand plant to contribute around 60% of the overall PV production.”

– Mayank Pareek

“We can add two new robots and produce one car in 75 seconds instead of 128 seconds taken now.”

– Rajesh Khatri

2 & 3. Tata Motors employs both women and men to assemble engines and cars.

Manufacturing Today | SEPTEMBER 2018

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PLANT VISIT TATA MOTORS-SANAND 4

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4. With 190 robots, automation takes a front seat at Sanand.

5 & 6. Workers kit and assemble parts and the car.

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Presently, Tata Motors makes PVs at four locations — Sanand (Ahmedabad), Pimpri and Ranjangaon (Pune), and Pantnagar (Haridwar).

Rajesh Khatri, head of manufacturing operations, Tata Motors, said, "From 150,000 units (a year) we can hike it to 160,000-165,000 units without making any significant investment. We can add two new robots and produce one car in 75 seconds instead of 128 seconds taken now." Tata Motors has so far invested about Rs 4,500 crore at the Sanand plant.

The unit's capacity is expected to rise up to 30% without additional investment as it focuses on getting more out of the plant's assets. "The team here has ramped up capacity very well. From around 7,000 per month around two years ago, we are now manufacturing 11,500 units without putting any additional investment. The buzzword is how to improve efficiency and how to get more out of the same which we have been able to do successfully. We see this unit getting 20-30% more capacity without any additional investment," Pareek pointed out.

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Spread across 1,100 acres, the Sanand plant has helped develop the automotive industry in Gujarat. From a single-model (Nano) plant in 2010, it has emerged as a multi-model facility and one of the most technologically advanced plants in the country today.

With a flexible assembly line, the plant currently manufactures the Nano, Tiago hatchback and Tigor sedan in 21 variants with 150 vehicle combinations. It also produces engines like the Revotron 1.2-litre petrol (manual and automatic transmission), the Revotorq 1.05-litre diesel, the 624cc MPFI petrol (manual and AT) and the 1.2-litre NGTC petrol (manual and AT).

The Tiago now makes up more than 45% of Tata Motors’ domestic PV volumes clocking between 8,000 and 10,000 units a month; the Tigor sells around 2,000-2,500 units. In January 2018, the Sanand plant also produced the first electric passenger vehicle for commercial use in the form of the Tigor EV and continues to support deliveries of the EESL order.

Pareek is also keen that the company makes cars that are distinct and different. "This philosophy we

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PLANT VISIT TATA MOTORS-SANAND

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called as impact design. Our three design studios (London, Italy, and Pune) work concurrently to bring out impactful designs. Considering that it takes four years to come up with a new design, we are now looking at designing cars for 2022," he added.

Tata Motors is currently mapping out its modular architecture plans and will distribute passenger-vehicle manufacturing responsibilities between its Pune and Sanand facilities to meet its product expansion plans. It plans to bring around 10-12 new products in passenger vehicles segment in the next five years.

The new products, to be developed on two new platforms—Alpha and Omega—will help the company to have presence in over 90% of the Indian passenger vehicles market. The first vehicle from this architecture will be the SUV Harrier (which will be made at the Pune plant) and launched in Q4 2018.

According to Pareek, Tata Motors which currently has a 6.8% PV market share, has been “outgrowing the PV market for 30 months consecutively. Our product portfolio covers 70% of the PV market now; the target is to cover 90% by 2020”.

The plant also produces three different variants of petrol engines and aims to increase the production in the near future. Khatri says, “We are at present producing about 500 engines per day and we will increase it to 600 units a day in coming days.”

In terms of manufacturing, the Sanand plant has 155 types of dyes for 42 parts with an auto dye changing facility that takes only one minute. The manufacturer makes the outer panels in-house and sources steel from Posco, Tata Steel and JFE, Japan. The flexible manufacturing system allows the company to produce all the variants on a single line.

The plant houses press line, weld shop, paint shop, assembly line and powertrain shop. Testing and development facilities include coordinate measuring machine for body-in-white dimensional management, paint and lubes testing lab, wheel alignment, roll and

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SETTING BENCHMARKS u

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Sanand plant reaches 100% capacity utilisation; rolled out over 450,000 units since inception Produces 21 variants of cars with 150 vehicle combinations Utilises 190 robots and uses 30-35% renewable energy Launches Turnaround 2.0 aiming to 'Win sustainably in PVs' First electric PV rolls out of the plant in January Produces 500 engines per day Achieved WCQ Level 3 in Quality Standards Contributes to 60% of the overall PV production

brake, shower testing facilities as well as metallurgy and metrology (NABL accredited labs).

SAVING THE ENVIRONMENT The Sanand plant is Tata Motors’ youngest facility and leverages technology–over 190 robots and high levels of automation–to increase productivity across processes. In the past two years, the number of staffers has increased by 80%, to around 4,500. At present, the plant employs nearly 100% white collar staff from Gujarat against the mandated requirement of 85%.

The manufacturing unit is a zero-discharge plant and has a systematic hazardous waste disposal process, which led to it being awarded CII’s GreenCo Platinum Certification. The plant uses renewable energy to the scale of 30% of its total power consumption. It has commissioned 2MW of rooftop solar panels and off-site wind power mills with a 9MW capacity.

The plant has a 180-acre green belt along with several other initiatives aimed at reducing the carbon footprint.

With a focus on climate change, the Sanand plant has achieved a 1,300-tCO2e (tonnes of carbon dioxide equivalent) carbon-emission reduction at a monthly average in FY2018.

7. Critical fittings are done using a robot.

8. The plant makes 500 engines per day across its variants.

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EVENT REPORT REINVENTING THE FUTURE - CHENNAI & RUDRAPUR

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GROWING TOGETHER

MANUFACTURING TODAY AND ADITYA BIRLA GROUP JOINED HANDS TO HOST THE REINVENTING THE FUTURE SUMMIT IN CHENNAI AND RUDRAPUR.

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EVENT Chennai: July 27 Rudrapur: August 10

FOR THE FIFTH YEAR IN A ROW, THE ADITYA Birla Group (ABG) has partnered with Manufacturing Today magazine to present the annual Reinventing the Future summit. After Vadodara in the West and Indore in Central India, this year’s summit covered Chennai in the South and also went to the remote Northern industrial belt of Rudrapur.

Having witnessed a steady growth over the years, both in terms of the quality of case study presentations and turnout, these two events were each attended by over 150 manufacturing professionals of leading manufacturing organisations from across the country, who presented some noteworthy case studies on the theme: ‘Great Teams at Work’. More noteworthy was the fact that both cities saw increased participation from women, reflecting the positive change that is taking place at the shop floor level.

The platform served as a means for professionals of varied backgrounds including production, quality, engineering and human resources to come together under one roof. Teams from the attending companies competed via case study presentations across six categories: Cost Optimisation, Quality, Technology, Safety, Sustainability and People Initiatives.

1. The winning companies at Chennai pose for a group picture.

The winning teams will compete against winners from other cities in a national competition to be held on September 21, 2018, in Mumbai, as part of the Manufacturing Today Conference & Awards 2018.

CHENNAI The keynote address was delivered by ER Rajnarayan, SBU head – chemicals business,

PRESENTS

GREAT TEAMS AT WORK

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2. ER Rajnarayan, SBU head – chemicals business, Aditya Birla Group, delivered the keynote.

3. The jury members at Chennai.

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AN EVENT BY

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EVENT REPORT REINVENTING THE FUTURE - CHENNAI & RUDRAPUR

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WINNERS AT CHENNAI Cost Optimisation: Bajaj Auto Technology: Hyundai Motors India Limited Quality: Ashok Leyland Sustainability: Schneider Electric India Sustainability: Hindustan Coca Cola Beverages Safety: Suzlon Energy Limited People Initiatives: GE (Coimbatore) Technology & Chennai Regional Winner: Bharat Electronics Limited

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4. Ashok Leyland were winners in the Quality category.

INSTITUTE FELICITATION: Indian Institute of Information Technology Design & Manufacturing, Kancheepuram Kumaraguru College of Technology, Coimbatore

5. With a focus on ‘Women in Manufacturing’, the Chennai event saw women from various companies speak on gender diversity initiatives on the shop floor.

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INSTITUTE WINNER: Indian Institute of Information Technology Design & Manufacturing, Kancheepuram

6. BEL were declared winners in Technology and were also the regional winners.

WINNERS AT RUDRAPUR Cost Optimisation: Ashok Leyland Cost Optimisation: Bajaj Auto People Initiatives: V-Guard Industries Sustainability: India Glycols Limited Quality: Hindustan Coca Cola Beverages Quality: Emami Limited Technology & Rudrapur Regional Winner: Mahindra & Mahindra Ltd - Automotive & Farm Equipment Sector

INSTITUTE FELICITATION: Indian Institute of Technology, Roorkee

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7. Suzlon Energy were winners in the Safety category.

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Aditya Birla Group. During his speech, he said, “If you look at the manufacturing sector today, we are at an inflection point, where tremendous growth opportunities exist. The global consumption will be close to $62 trillion by 2025, which is almost 80% more than what it is today. Therefore, you will have a substantial jump from where we are today

8. There was a felicitation for KCT, Coimbatore.

9. Hyundai won for its presentation on Technology.

10. IIITDM was also felicitated.

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11. Women from different organisations spoke on gender diversity at the shop floor level at the Rudrapur event.

12. Schneider Electric was a joint winner in the Sustainability category.

13. HCCB was the other winner for Sustainability.

14. Bajaj Auto emerged victorious in Cost Optimisation.

15. IIITDM was adjudged institute winner.

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to 2025. It is important that manufacturing activities also keep pace with this requirement from the consumption side. Most importantly, most consumption would be happening in emerging markets, especially in countries like India. If you really translate that into manufacturing activities, there are huge possibilities and huge challenges ahead.”

Participating companies included Bajaj Auto, Hyundai Motors India Limited, Ashok Leyland, Schneider Electric, Hindustan Coca Cola Beverages, Suzlon Energy Limited, GE (Coimbatore), and Bharat Electronics Limited.

The jury for the competition comprised of ER Rajnarayan; Kaushik Vakil, VP – operations, metals, Aditya Birla Group; Kishore Shouche, AVP – pulp & fibre , Aditya Birla Group; Abdul Samad, consultant, Aditya Birla Group; and Manish Kulkarni, director, BDB India.

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Ashok Leyland won in Chennai for their presentation on Quality. They spoke about the establishment of Process Reliability Rank Up (PRRU) towards improving the process reliability at the Ennore plant.

They explained how this helped identify the drawbacks of processes (with low-assurance rank) to prevent the transfer of such defects to the subsequent processes, including customers.

Similarly, Bajaj Auto were adjudged winners for Cost Optimisation. They explained how they developed a highly flexible welding line for motorcycle frames (jigless welding), while realising a 22% potential saving in investment cost for the fabrication line due to the flexible welding line, as well as a 34% reduction in sunk cost elimination of modelspecific fixtures.

For the People Initiatives category, GE (Coimbatore) were declared winners for their presentation

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on professional development & work life balance initiatives such as safety & health drive, career growth, reward & recognition, fun at work, and cross-functional engagements. This organisational infrastructure worked as an enabler to develop highly motivated & productive professionals, cohesive teams, and better cross-functional engagement.

Schneider Electric India were joint winners in the Sustainability category for their presentation on sustainable development programmes initiated for creating & maintaining an environment where business, environmental and societal parameters all converge. They highlighted how the project assisted in achieving a strong business risk mitigation plan, better stakeholder management, reduction in carbon emission, water conservation, waste management, improvement in safety management, and efficient energy management.

RUDRAPUR Ashish Dwivedi, president – speciality chemicals, Aditya Birla Group, gave the keynote. He stated,

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“The world produces anything between $12-$16 trillion worth of goods in a year, which is the size of the manufacturing sector that all of us are a part of. Today, there is something that I call hyper-personalised manufacturing. For instance, so far, one cricket bat could be used by anybody who could play cricket, but nobody thought that each player had a different grip. However, manufacturers today have to cater to that, making bats for various grips. There are many such examples where hyper-personalised manufacturing is taking over.”

Participating companies included Ashok Leyland, Bajaj Auto, V-Guard Industries, India Glycols Limited, Hindustan Coca Cola Beverages, Emami Limited, and Mahindra & Mahindra Limited - Automotive & Farm Equipment Sector.

The jury was made up of Surya Valluri, joint president & technical cell, UltraTech Cement; Ashish Garg, president – pulp & fibre, UH – Vilayat, Aditya Birla Group; Ashish Dwivedi, president – speciality chemicals, Aditya Birla Group; and Manish Kulkarni, director, BDB India.

The event saw Hindustan Coca Cola Beverages take the joint winner title in the Quality category for their presentation on preform yield improvement using lean six sigma methodology. The team went on to explain how they were able to improve plant preform yield from 99.03% to 99.47% (YTD July 2018) at the company’s largest bottling plant in India.

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16. The winners at Rudrapur pose for a group picture.

17. Bajaj Auto was a joint winner in the Cost Optimisation category.

18. HCCB were joint winners in Quality.

19. GE (Coimbatore) won for People Initiatives.

20. The keynote was delivered by Ashish Dwivedi, president – speciality chemicals, Aditya Birla Group.

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21. The jury members oversee proceedings at Rudrapur.

22. Ashok Leyland were the other winners for Cost Optimisation.

23. There was a felicitation for IIT Roorkee.

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24. V-Guard won in People Initiatives.

25. Emami Limited was the other winner for Quality.

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26. M&M took home the plaque for their Technology presentation.

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27. India Glycols was the winner for Sustainability.

India Glycols Limited presented a case study on the Sustainability topic. They spoke of taking a sustainable approach by procuring Bio-Mono Ethylene

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Glycol (MEG) from a renewable source. The company is promoting ethylene glycols as bio/green MEG to potential customers interested in meeting their objective of using environment-friendly chemicals.

Mahindra & Mahindra Ltd - Automotive & Farm Equipment Sector were winners in the Technology category as well as overall winners from Rudrapur.

Their presentation highlighted the innovative projects that helped increase plant turnover by Rs 300 crore, resulted in a direct cost saving of Rs 6.1 crore by eliminating the third shift manpower & Akraman savings, and caused an indirect cost saving of approximately Rs 4 crore by eliminating the capex. In addition, this caused an annual capacity increase from 68,000 to 76,000 with the achievement of a production capacity of 180tr/day using a minimum investment.

V-Guard Industries won in the People Initiatives category. Their presentation emphasised how they went about aligning, involving, influencing and empowering employees towards enhancing quality, cost effectiveness, competitiveness, a safe productive work culture with a conscience towards the environment, and achieving the aspirations of their growing organisation.

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CASE STUDY

CONNECTED DATA HELPS THE MILK FLOW THREE DAIRY MANUFACTURERS HAVE SUCCESSFULLY UNLOCKED THEIR POSSIBILITIES TO ONGOING OPTIMISATION AND IMPROVEMENT IN THE DAIRY INDUSTRY, THE PRODUCTION IS dynamic and commodity-driven. To help meet high demand, companies require a shift in thinking about what processes and technologies are used, as well as what new skills are needed. The challenges and opportunities are as varied as the companies themselves. The possibilities are endless, but they all need to begin with the basic step – get connected.

Advanced solutions and smart machines enabled

by The Connected Enterprise empower makers to gain connectivity in equipment and insights into operations, resulting in automation with real-time controls.

OPERATIONAL IMPROVEMENTS Milk Specialties Global needed help to keep up with high demand, therefore they invested in manufacturing intelligence to achieve real-time analytics and insights into its operations.

The company rolled out the FactoryTalk® VantagePoint® enterprise manufacturing intelligence (EMI) software from Rockwell Automation across its three primary raw milk facilities in the US. The EMI software collects, correlates and displays real-time process, business and laboratory data. It has established a “system of record” that produces a set of facts upon which decisions can be made. This has helped justify operational changes and investments that are crucial to helping the company keep up with demands. Following the changes, the system showed improvements – a 7% increase in throughput.

Besides, the new analytics from the manufacturing intelligence system helped the facilities manage their water usage. Workers were able to monitor drain flows and water spikes, keep tabs on water usage and address issues such as leaks.

CONTINUOUS IMPROVEMENTS When Agropur Cooperative discovered that its Don Mills facility in Canada could no longer produce seamless data necessary to improve operations, they implemented an advanced solution from Rockwell Automation to modernise the facility. The solution included a set of Allen-Bradley® ControlLogix® controls, PowerFlex® drives and PanelView™ human machine interface (HMI) hardware. Each HMI ran FactoryTalk® View Site Edition software on a virtualised server. They could then convert reams of data into action.

The company also installed FactoryTalk AssetCentre software to manage automation assets and ver-

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sions control, and keep documentation. The FactoryTalk VantagePoint EMI then provided a new level of access to all data from disparate systems as the software exposed what occurred on the plant floor to the workers in charge of making improvements.

The integrated control and information solution provide the facility operators with the data they needed to make informed decisions about their operations. With a modern system, the facility can now get rid of the 2,500 hours of manual data collection each year.

PROCESS IMPROVEMENT When Miraka decided to embark on process optimisation, they teamed up with Rockwell Automation to deploy a system to optimise their plant in New Zealand. The company had adopted the Pavilion8® model predictive control (MPC) software platform, which includes modules to control, analyse, monitor, visualise and integrate information and processes, to identify process improvements and maximise production.

The innovative solution increased more than 4% in capacity during the peak season, raised moisture targets by 0.04% and improved protein and fat control to reduce fat plus protein giveaway by more than 100 tons per year. In addition, optimisation of the machines resulted in energy savings of greater than 1% per ton of milk powder during peak production.

By equipping machinery to collect more data at the edge, businesses can gain insights into how to get the most out of their smart machines and predict failures before they happen. The optimised and connected processes in smart factories will deliver high-quality products, improve agility and increase revenue, giving smart manufacturers a competitive edge.

1. Advanced software can help a dairy manufacturer to optimise his operational efficiencies.

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