LAKSHYA- A BEACON OF KNOWLEDGE, AUGUST EDITION 2021

Lakshya is an initiative by Club Kaizen which is our monthly supplement designed for people who dare to think above the average and believe in connecting the dots. In an age where technology has taken over every sphere, information is abundant and data is omnipresent, we have conspired to bring to you a collection of thoughtfully created and carefully curated pieces of work by some bright aspiring minds of ICFAI Business School, Hyderabad on the current trends and hot topics in the field of Operations Management and their relevance in different Industries.

Everything is growing at the pace of nanoseconds and hence it is quintessential to know about every minute change in the ecosystem. With Lakshya we aim to present our readers with compact yet explicit articles on vivid topics such as the Internet, Banking, IT, IoT, etc. A fair share of this edition focuses majorly on the banking systems and payment gateways. With the constantly evolving technology, it will be interesting to ponder over changes that could be seen soon.

We look forward to providing the students with some valuable insights and inculcate the passion for reading once again within our readers.

Lakshya is an amazing platform for readers as well as aspiring readers to showcase their talent and pen down their thoughts which in turn will be a gold mine for information for the students of not only IBS but from the outside world too.

1|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

OUR KNOWLEDGE PARTNER

Club Kaizen is privileged to have The International Supply Chain Education Alliance (ISCEA, USA) as the Knowledge Partner from Lakshya’s 24th edition.

To be a single source for Total Supply Chain Knowledge through Education, Certification, and Recognition is the mission of ISCEA. Many workshops/events are conducted by ISCEA to improve the knowledge of manufacturing and service industry professionals.

ISCEA provides a platform to explore leadership potential to the aspiring leaders in the supply chain industry while developing the skill sets and knowledge desired by corporations, through SCNext (ISCEA Young Supply Chain Professional Association).

Some of the internationally recognized certification programs developed by ISCEA include1. Certified Supply Chain Analyst (CSCA).

2. Certified Demand Driven Planner (CDDP).

3. Supply Chain Case Competition.

To know more about ISCEA, visit http://www.iscea.net/india.

We look forward to working with ISCEA in spreading knowledge and reaching greater heights together.

2|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

EDITOR’S LETTER “Today a reader, tomorrow a leader” Colleges are the best part of our life and magazine is its powerful tool and an integral part of the overall infrastructure and the vision of the college. The magazine becomes a platform for all the students and faculty to express their literary and artistic talents. It also ignites young minds.

I feel extremely honoured by my association with the 41st edition of "LAKSHYA" Club Kaizen’s monthly supplement designed for people who dare to think above the average and believe in connecting the dots. As the editor, it has been a combination of fun, work, meeting, discussions, surfing, browsing, typing and so much more!

I congratulate the entire editorial board for their excellent teamwork and unflagging efforts in successfully compiling the magazine. This wonderful edition would not be possible without the support of the team. Hard work and dedication of many people have gone into its making. I was very thrilled to receive informational articles from you all showcasing your writing skills and brilliant creativity.

I hope you enjoy reading as much as we enjoyed framing it and have a delightful experience as you flip through every page of this issue. Please let us know if there are any subjects you'd look forward to being addressed in upcoming editions. Please write to us and become a part of this discussion.

Email ID: kaizenclub.ibs@gmail.com Happy Reading!

GARIMA SONI JOINT SECRETARY INTERNAL AFFAIRS AND ADMIN Club Kaizen – IBS Hyderabad Batch 2020-22

CONTENTS 3|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

S. NO.

TITLE

PAGE NO.

1

From the Mentor’s Desk

5

2

Industry 5.0

7

3

Lean IT in Project Management

11

4

Supply Chain Management In Construction Industry

17

5

Big Data – Holds The Answers Of Supply Chain Analytics

21

6

Starting Your Own Business In Your Early 20’s

26

7

Smart Contracts In Supply Chain

29

8

Sustainability In Operation Management

31

9

HR Operations for Small Businesses

34

10

Using Blockchain to Drive Supply Chain Transparency

37

11

Supply Chain Coordination

40

4|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

From the Mentor’s Desk

In the era of competition, students must be prepared for the ever-changing business environment. Knowledge creation plays an important role to learn to tackle the dynamic nature of business.

I appreciate and congratulate the initiative of club KAIZEN for bridging the gap between the corporate world and academia through LAKSHYA which is an excellent platform where industry practitioners, academicians, and researchers can share their knowledge and experience, acting as a beacon guiding students to reach their goal.

My best wishes to Club KAIZEN in their endeavor of knowledge creation through LAKSHYA.

Dr. Nishit Kumar Srivastava Mentor, Club Kaizen

5|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

FACULTY’S INSIGHTS

6|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

Dr. Nishit Kumar Srivastava Assistant Professor, Department of Operations and IT, IBS, Hyderabad.

INDUSTRY 5.0

Whether you're ready or not, Industry 5.0 has arrived. While many industries are currently working on ways to connect new technologies to improve efficiency and production, the guiding philosophy behind Industry 4.0 – the next era of industrialization is already here.

What is Industry 5.0?

Industry 5.0 is a new manufacturing paradigm that places a premium on human-machine interaction.

With the emergence of automation technologies, IoT, and the smart factory, the preceding layer, Industry 4.0, was born. Industry 5.0 is the next phase, and it entails utilizing the partnership between increasingly powerful and precise machinery and the human being's unique creative potential. The emergence of the digital industry preceded Industry 5.0: innovations such as the Industrial Internet of Things or the merging of Artificial Intelligence and Big Data created a new form of technology that can provide firms with data-based knowledge.

The combination of human and machine labour opens up a world of possibilities in manufacturing.

Manufacturers should be actively thinking methods to merge human and machine labor to optimize the unique benefits that can be realized as the movement continues to expand, especially given the use cases of Industry 5.0 are still in their relative infancy.

Some Facts about Industry 5.0 It is aimed to support: Don't mistake the rise of robotics for an opportunity to reduce headcount and replace humans on manufacturing lines who perform monotonous activities. Manufacturers who recognize the importance of human intuition and problem-solving talents are better positioned to succeed.

7|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

While robots are more reliable than people and are better at precision work, they are rigid and lack the adaptability and critical thinking skills that distinguish humans. Robots can fulfill their assigned mission of offering aid and improving our lives when they collaborate with people. Universal Robots refers to collaborative robots as "cobots" to underline the relevance of people in robotics.

It is about making an optimal process: The goal of Industry 4.0 is to integrate equipment, processes, and systems to maximize performance. Industry 5.0 goes a step farther in terms of efficiency and productivity. It's all about fine-tuning the human-machine collaborative interactions.

Industry 5.0 acknowledges that man and machine must work together to address the future industrial complexity of increased personalization through an efficient robotized manufacturing process.

Amazing progress capability: There's no use in going back to the old way of doing things if you've employed technology to make a process more efficient. It's why, instead of using typewriters, we use computers with word processing software. Similarly, Industry 5.0 is the next big thing in manufacturing. We're way past the point of going back, given the efficiencies that can be obtained.

To meet these and the many other difficulties and opportunities that Industry 5.0 will inevitably bring, manufacturers will need to plan and prepare by their needs and projected outcomes.

Benefits of Industry 5.0 • Cost Optimization • Better Solutions to the problems • Increased Sustainability • More Customization • Improved Creativity Difference between Industry 4.0 And 5.0 Industry 5.0 takes a more collaborative approach than Industry 4.0, with even greater human-robot engagement. While the subject of Industry 4.0 is connectedness through cyber-physical systems, Industry 5.0 also addresses the relationship between "man and machine," sometimes known as robots or cobots, while also aligning with platforms made possible by Industry 4.0. Human-machine collaboration, as well as machine-to-machine collaboration and connectivity between the plant, logistics, supply chain management, and the end-user, were all made possible by Industry 4.0. Now, digital integration promises to bring all stakeholders together on a single platform.

In addition to these components, Industry 5.0 combines human ingenuity with robotic precision to create a one-of-a-kind solution that will be in high demand in the coming decade. Industry 4.0 and 5.0 have come together to develop a roadmap that industries must adapt to survive.

About Author: Dr. Nishit is currently working as an Assistant Professor in the Department of Operations and IT at ICFAI Business School (IBS) Hyderabad. He is Lean Six Sigma Black Belt certified from IASSC 8|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

certified institute- Xlnc Academy, Mumbai. He is a recipient of the Best Professor in Operations Management Award by the Academy of Management Professionals, in association with IDMBA Hyderabad, India in the year 2020. He has recently coordinated a 3- days MDP program at IBS, Hyderabad jointly in association with the National Institute of Disaster Management (NIDM); the Ministry of Home Affairs; the Government of India; New Delhi. He has completed his Ph.D. from the Indian Institute of Technology (Indian School of Mines), Dhanbad in 2015. His Ph.D. thesis was on "Development of Predictive Maintenance Models- A Study in Indian Manufacturing Sector." He is the recipient of one "best paper award" at the 6th ISDSI Conference. He has an overall 10 years of research and teaching experience. His area of research interest includes Quality Management, Evolutionary Algorithm, ICT adoption studies, Healthcare, Sustainable development, etc. His teaching areas are Operations Management, Operations Research, Quality Management, Six Sigma, Project Management, Productivity Management, Business Statistics, and Disaster Management. He has more than 10 research articles published in Scopus listed, ABDC ranked, and Web of Science indexed journals of Sage, Emerald, Inderscience, etc. He has worked as an organizing member in the International Conference held by the Dept of Operations & IT, in IBS, Hyderabad. He has served as the Chairperson of ‘GATI Centre of Excellence in LSCM’ and ‘Coordination of PGDM-LSCM’ at Asian School of Business Management, Bhubaneswar, from May 3, 2014, to May 2015. He is a lifetime member of ‘IAENG, International Association of Engineers, Hong Kong. He is also GATE qualified. He also serves as a Project reviewer at AIMS International for the annual SIP competition. He has presented papers in several International reputed conferences like ISDSI, AIMS International, Society of Operations Management, etc. He has chaired sessions in conferences as well. He is a guest reviewer for Scopus and ABDC listed journals of international/national repute. He is into continuous research, teaching, mentoring, and guiding students on various fronts.

This article has been co-assisted by Kaizenite Shristi Sharma, Batch: 2020-2022, IBS Hyderabad.

9|K A IZE N ’S OP ERA T ION S & RE SE A RC H EN T ITY

CORPORATE ANGLE

10 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Mr. Abhishek Soni Senior Risk Specialist, Walmart Global Tech, Atlanta, Georgia.

LEAN IT IN PROJECT MANAGEMENT

What is Lean?

Lean manufacturing, a methodology that focuses on minimizing within manufacturing systems while simultaneously maximizing productivity.

Benefits of Lean Lean thinking can provide improved value for the customer by: ▪ ▪ ▪ ▪ ▪ ▪

Improving the quality of work processes Reducing errors and costs in work processes Improving the flow of the method Simplifying complex processes Reducing lead time Improving employee morale

11 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

waste

Five steps to Implementing Lean

Project Management (PM) Project management, the process of leading the work of a team to reach goals and meet success criteria at a specified time. The first challenge of project management is to reach all of the project goals within the given constraints. This information is typically described in project documentation, created at the start of the event process. The first constraints are scope, time, and budget. The secondary challenge is to optimize the allocation of necessary inputs and apply them to satisfy pre-defined objectives.

Lean IT Lean IT, an extension of lean manufacturing and lean services principles to the event and management of information technology (IT) products and services. Its central concern, applied within the context of IT, is that the elimination of waste, where waste is work that adds no value to a product or service.

Lean IT promises to spot and eradicate waste that otherwise contributes to poor customer service, lost business, above necessary business costs, and lost employee productivity. To those ends, Lean IT targets eight elements within IT operations that add no value to the finished product or service or the parent organization.

12 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

How can we implement lean in IT PM to enhance efficiency?

Applying Lean IT creates a significant impact without being capital intensive.

IT has reached an unprecedented level of complexity, and organizations heavily reliant thereon risk greater variability in performance and significantly lower customer satisfaction. The Lean continuous-improvement methodology addresses these challenges.

Lean methodology takes an end-to-end view, starting with the IT customer. This ensures that improvement occurs across all IT processes. Our approach has proven to possess a significant and lasting impact on both providers and insources.

We focus on the four core elements of balanced performance improvement: • Operating practices: We use a proven set of levers to reinforce the way physical assets and resources are configured and optimized to make value and minimize losses.

• Management systems: We optimize the structures, processes, and systems through which performance is managed to deliver business objectives.

• Mindsets and behaviors: We specialize in a way to change the way people think, feel, and conduct themselves within the workplace.

• Organization and capabilities: Employees make sure that the organization enables and sustains the transformation in which individuals have the talents and knowledge to deliver on their responsibilities.

By applying lean principles to application maintenance and development, companies have helped clients to enhance productivity by 15 to 25%, and time-to-market has fallen by up to 25%.

Companies help clients drive higher quality and productivity by taking IT infrastructure, application development, and maintenance work practices and moving them toward a group of consistent standards that drive higher quality and productivity. Companies cause real change by working closely with the frontline staff and management teams over 16 to 24 weeks to capture and sustain this impact.

13 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Waste element

Examples

Business outcome

●

Unauthorized system and Poor customer service, increased application changes. costs. ● Substandard project execution.

Defects

Overproduction (overprovisioning)

●

Waiting

●

Non-Value Processing

Unnecessary delivery of Business and IT misalignment, low-value applications and Increased costs and overheads: services. energy, data center space, maintenance.

Slow application response Lost revenue, poor customer service, times. and reduced productivity. ● Manual service escalation procedures.

Added ● Reporting metrics managers.

Transportation

●

Inventory (excess)

●

Motion (excess)

●

to

technology Miscommunication. business

On-site visits to resolve Higher capital hardware and software expenses. issues. ● Physical software, security, and compliance audits.

and

operational

Server sprawl, underutilized Increased costs: data center, energy; hardware. lost productivity. ● Multiple repositories to handle risks and control. ● Benched application development teams.

Fire-fighting problems within infrastructure applications.

Employee knowledge ● Failing to (unused) ideas/innovation.

repeat Lost productivity. the IT and capture Talent leakage, low job satisfaction, increased support and maintenance costs.

14 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Examples of companies using Lean IT 1. INTEL Known for their computer processors, Intel adopted lean manufacturing techniques to supply a better quality product to an industry that demands zero bugs. This ideology has helped reduce the time to bring a microchip to the factory from more than three months in the past to less than ten days. With items so precise and technical, Intel quickly realized that producing a better quantity of lower quality wasn’t the way to improve profits and increase customer satisfaction. Instead, by implementing quality control measures and waste reduction techniques, both parties benefit. This is even more so true within the tech industry where products are changing and being upgraded so frequently. Five years ago, it took the company 14 weeks to introduce a new chip to the factory; now it takes 10 days. The company was the first factory to achieve these times using Lean principles.

2. Parker Hannifin One of the most important companies within the world in motion control technologies, Ohio-based Parker Hannifin employs 58,000 people globally. Since 2000, the firm has implemented bestpractice programs in productivity, quality, throughput, and customer service, and price reduction.

Bosses found that E-business strategies dramatically reduced human intervention while speeding up the supply chain process.

3. Kimberley-Clark Corporation The Makers of Kleenex recently outsourced logistics at its Barton Mill UK plant to leading Lean thinkers, Unipart. Before this, staff at the plant resented the long shifts and overtime and absenteeism were at 10 percent. Unipart got Kimberley-Clark to spend on enhanced staff engagement and development, meaning they saved on staff absenteeism and thru an improvement inefficiency caused by better staff morale.

4. NIKE The famous shoe and clothing giant has also adopted lean manufacturing techniques. Nike saw less waste and higher customer value, but also some unforeseen benefits. Lean manufacturing was shown to reduce poor labor practices in their overseas manufacturing plant by up to 15%. This was mainly thanks to lean manufacturing valuing the worker quite previous labor practices. It gave more significant value to an employee and successively higher value to the firm as a whole.

15 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Conclusion Lean manufacturing is a process that more businesses we still adapt well into the future. By reducing waste and maximizing value to the customer, both consumers and firms can handsomely enjoy its implementation. Most companies have seen the genius of the lean manufacturing system, and have attempted to implement the system in their processes with various beneficial effects.

References 1. https://manufacturingglobal.com/top-10/top-10-lean-manufacturing-companies-world 2. https://en.wikipedia.org/wiki/Project_management#:~:text=Project%20management%20is%2 0the%20process,goals%20within%20the%20given%20constraints 3. https://www.google.com/search?q=lean+IT&rlz=1C1SQJL_enIN925IN927&oq=lean+IT&aq s=chrome..69i57j46i395i433j0i20i263i395j0i395i433j0i395j69i60l3.1795j1j7&sourceid=chro me&ie=UTF-8 About Author: Abhishek Soni is a postgraduate alumni of Georgia State University, did his Masters in Information systems with a concentration in Cybersecurity. Currently, he is working as a Senior Risk Specialist at Walmart Global Tech in Atlanta, Georgia. He is a Techno enthusiast, seeking to acquire new skills every day. His area of Interest is third-party risk management web application security testing vulnerability management.

16 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Mr. Nadeem Sayed Marketing and Operation Engineer, Prism Johnson Limited - Rmc India SUPPLY CHAIN MANAGEMENT IN CONSTRUCTION INDUSTRY In a very competitive and complex industry like the construction industry with demands for the delivery of top-quality projects at very competitive prices, a significant need for effective management of the construction supply chain has arisen. Construction Supply Chain Management (CSCM) is a very promising approach to successfully achieve integration between the several disciplines of the chain (i.e. internal and external suppliers, designers, vendors, contractors, subcontractors, and internal and external clients). Big international construction companies have carried out extensive research and developed computer-based platforms to experiment with the recent Supply Chain Management (SCM) concepts.

Even though SCM in the manufacturing industry has been widely researched and developed, the application of the same concepts to the construction industry shows problems in construction supply chains are extensively present and persistent. Analysis of these problems has shown that a major part of them originate at the interfaces between the various disciplines or functions and the complex nature of the construction environment. This research study report aims to provide a set of propositions for improving construction supply chain management such as benchmarking, improvement of suppliers/subcontractor’s performance, elimination of waste, training, and information sharing between parts of the supply chain. The study includes the literature review regarding the trends of the supply chain management in the construction industry, the specific characteristics and problems in coordinating the construction supply chain, and finally, it suggests improvements in supply and demand management based on integration, collaboration, information sharing, and trust.

For analyzing the application of Supply Chain Management in Construction (SCMC) it is necessary to specify a construction “product”, compared to a manufactured one, since SC cannot be applied in the same way to the two domains by presenting the main characteristics of construction in terms of the supply chain. Some critical differences between supply chain in manufacture and supply chain in construction are:

17 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

• The construction product is for a single client most of the time.

• The product changes for each project.

• The place, equipment and methods of production change for each project.

• Construction personnel have a high rotation index during the construction time and between projects.

• Not all the parts and materials can be stored at the site.

Problems of the Construction Supply Chains Most of the problems are not generated in the conversion process but in the different interfaces of different parties or functions, that exist within the supply chain. Some of the general problems are as follows: •

•

• • •

• •

• • •

•

Client / Feed, Design Interface: difficulties in finding out client’s wishes, changes of client’s wishes, long procedures to discuss changes, interfaces with other relevant parties throughout feed and design period.

Feed Design / Engineering Interface: incorrect documents, design changes, extended time for design changes and approval, wrong calculations, designs not by the well-known construction methods, no constructability.

Engineering / Procurement, Vendors Interface: inaccurate data, engineering drawings not fit for use.

Engineering / Site Interface: engineering team is not present on-site for the field engineering.

Engineering / Commissioning, Procurement / Commissioning, Main Contractor / Commissioning, Subcontractors, Suppliers / Commissioning Interfaces: difficult interfaces between various disciplines, problematic completion due to quality problems.

Project Completion / Commissioning Interface: problematic completion due to quality or safety problems, problems with local communities.

Procurement, Vendors / Suppliers Interface and Procurement, Vendors / Subcontractors: inaccurate data, technical specifications not met, other changes, lack of coordination, collaboration and commitment between suppliers, poor quality of materials and components.

Procurement / Logistics Interface: not proper logistic studies, not effective logistics routes, not obtained permits & licenses needed customs clearance delays.

Logistics / Site Interface: large shipments, not proper packing, bad weather or political conditions, long storage period.

Main Contractor / Subcontractors Interface: deliveries not according to planning late deliveries of permanent materials, wrong and defective deliveries, large shipments, long storage period, interfaces with several subcontractors and suppliers, poor training of contractor’s suppliers, subcontractors and workers, inadequate management within the supply chain, mainly poor.

Suppliers and Subcontractors / Site Interface: deliveries not in conformance with planning, wrong and defective deliveries, long storage period, and subcontracted work not delivered according to the

18 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

• •

main design, contract, and planning, low productivity of several subcontractors, poor training of workers, deficient communication and information transfer.

Site / Completion of Project and Project Completion / Commissioning Interfaces: problematic completion due to quality or safety problems, problems with local communities.

Commissioning / Operation Interface: unresolved quality and technical problems, delayed operational time due to late completion.

The current practice of supply chain management suggests controlling the supply chain as an integrated value-generating flow, rather than only as a series of individual activities. For this generic model of the problems in the construction process, the term "supply chain" refers to the stages through which construction materials factually proceed before having become a permanent part of the project. The term covers thus both permanent supply chains, that exist independent of any particular project, and temporary supply chains, configured for a particular project.

Area of Focus The characteristics discussed above have an impact on the management of supply chains. Four major roles of SCM in construction can be recognized, dependent on whether the focus is on the supply chain, the construction site, or both. They are:

19 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

•

• •

•

The focus may be on the impacts of the supply chain on-site activities. The goal is to reduce costs and the duration of site activities. In this case, the primary consideration is to ensure dependable material and labour flows to the site to avoid disruption to the workflow. This may be achieved by simply focusing on the relationship between the site and direct suppliers. The contractor, whose main interest is in site activities, is in the best position to adopt this focus.

The focus may be on the supply chain itself, to reduce costs, especially those relating to logistics, lead-time, and inventory. Material and component suppliers may also adopt this focus.

The focus may be on transferring activities from the site to earlier stages of the supply chain. This rationale may simply be to avoid the inferior conditions on-site or to achieve wider concurrency between activities, which is not possible with site construction with its many technical dependencies. The goal is again to reduce the total costs and duration. Suppliers or contractors may initiate this focus.

The focus may be on the integrated management and improvement of the supply chain and the site production. Thus, site production is subsumed into SCM. Clients, suppliers, or contractors may initiate this focus.

About Author: Nadeem Sayed is currently working with prism Johnson limited - Rmc India Division as a marketing and Operation engineer, Mr. Nadeem Sayed has experience of 3 years in marketing & sales, product management, procurement along site operations. Along with this, Nadeem Sayed holds the position of chair member at American concrete institute and is also a Harvard business reviewer. He belongs from the batch of 2017 - 19 from IBS Hyderabad.

20 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Mr. Subhodip Pal Business Intelligence Analyst, Micron Technology, Inc. BIG DATA – HOLDS THE ANSWERS OF SUPPLY CHAIN ANALYTICS

“Advanced analytics is likely to become a decisive competitive asset in many industries and a core element in companies’ efforts to improve performance. It’s a mistake to assume that acquiring the right kind of big data is all that matters. Also essential is developing analytics tools that focus on business outcomes ….” (2012; Barton and Court) The buzzword of the day is "Big Data." With the introduction of Web 2.0, Industry 4.0, the Internet of Things (IoT), and other digital technologies, big data, and its analysis have received a lot of attention.

The phrase "big data" is used to describe data sets that are so large and complicated that traditional data management technologies can't gather, store, manage, or analyze them efficiently - the bigger the data, the more challenging it becomes to manage and analyze and to deliver useful business insights. Big Data has a positive impact across a wide range of industries; it aids in the redesign of supply chains, increasing sales and managing customer loyalty in marketing, optimizing real-time routes and lowering costs in transportation, reducing risks in finance, and even improving the efficacy of some medical treatments. Big Data covers 5 dimensions: Volume, Velocity, Variety, Veracity, and Value. That is the 5 V’s of Big Data.

21 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Big data, however, brings the potential to transform business model design and day-to-day decision making that comes with new data analysis, rather than just the usual faddish fluff. The logistics industry is wellpositioned to profit from Big Data's technological and methodological improvements. Radio-frequency identification (RFID), sensory information, tracking devices, and other technologies are used in the supply chain sector to collect massive volumes of data. Big Data provides a new source of competitive advantages for logistics companies seeking to improve supply chain visibility, the ability to adjust to demand and capacity fluctuations in real-time, enhance current supply chain processes, lower costs, and improve inventory management and insights into customer behaviors and patterns to achieve smarter pricing and better products, resulting in increased profits in the supply chain sector.

22 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

A large physical flow connects supply chain participants, including raw materials, work-in-process inventories, finished goods, and returned items, information flows, and financial flows.

Big data analytics in SCM is referred to as doing sophisticated quantitative and qualitative analysis on a large amount of structured and unstructured data. Predictive analytics, business analytics, big data analytics, and supply chain analytics are examples of such analyses. Big data analytics may be utilized to boost market competitiveness while also improving data quality management and user experience.

Simulation combined with statistics and visualization techniques enables for real-time analysis of markets, manufacturing, and sales data, as well as computing key performance metrics related to supply chain development for strategic, tactical, and operational decision making.

Aspects Volume Velocity

Variety

Supply Chain management With the usage of sensors, bar codes, ERP, and database technology, vast amounts of data are created every second.

The velocity is primarily determined by the speed with which data is collected, the reliability with which data is sent, the efficiency with which data is stored, the speed with which relevant information is discovered, and the speed with which decision-making models and algorithms are developed.

Due to the different sources, heterogeneous formats, and varied sensors utilized at industrial sites, roads, retailer stores, and

23 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Veracity

Value

facilitated households, the huge data from SCM is generally changeable.

This method for verifying quality and compliance concerns may take into account a variety of scenarios, some of which may be difficult to handle.

Examining the implications on insights, benefits, and business processes within both industries, as well as the value of reports, data, and choices, is difficult.

Companies are figuring out how to leverage massive amounts of data into a competitive edge. Their accurate market demand forecasts, radical service customization, and new business models illustrate their use of hitherto untapped data. Valuable information may be collected and utilized from large data using analytics to improve decision-making and support informed judgments. To thrive in Big Data, organizations must view data as a strategic asset rather than an information asset. By doing so in the business, supply chain management may understand the economic worth of data and the ability to exploit it through revenue-generating activities when paired with Big Data Analytics.

Demand Management The Internet of Things: Automation using radiofrequency identification

Impact of

Vendor Rating: Qualitative and quantitative analysis of vendors

Big data on Supply Chain Total Quality Management and Logistics

Management Data science, Big Data Analytics, Predictive Analytics and Forecasting

Vendormanaged inventory and centralised planning and forecasting, Tracking of goods

24 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Maintaining the quality of big data and company perceptions of big data analytics via internal or external data sources have also been found to have a beneficial link. Despite the numerous advantages of using big data in supply chains, there are several obstacles to overcome, including a scarcity of experienced experts, a lack of awareness, and a lack of tools for training the next generation of data scientists in the supply chain sector.

The impact of big data on the supply chain industry in terms of its potential to create new value by improving operational excellence, enabling cost-cutting measures, increasing customer satisfaction, and real-time visibility, and narrowing the gap between supply and demand chain management, thereby influencing big data adoption. These new tools and technology will change how supply chains are planned and managed, posing a new and major challenge to supply chain management. Big data technology, in combination with demand management, vendor rating, analytics, cloud computing, IoT, and data science, is a significant element in improving operational efficiency, cost savings, customer happiness, real-time visibility, and bridging the demand-supply gap.

References: 1. Schoenherr, T., & Speier‐Pero, C. (2015). “Data science, predictive analytics, and big data in supply chain management: Current state and future potential.” Journal of Business Logistics.

2. Kannan Govindan, T.C.E. Cheng, Nishikant Mishra, Nagesh Shukla. "Big data analytics and application for logistics and supply chain management.”

3. Matthew A. Waller and Stanley E. Fawcett. "Data Science, Predictive Analytics, and Big Data: A Revolution That Will Transform Supply Chain Design and Management.”

4. Kuldeep Lamba & Surya Prakash Singh. "Big data in operations and supply chain management: current trends and future perspectives.”

About Author: Subhodip Pal is an MBA graduate from IBS Hyderabad (Batch of 2021). He has completed his graduation as B.Tech Mechanical Engineer from SRM University, Chennai. He has worked as a Market Research intern with Kantar IMRB. He is very much enthusiastic about Business Data and Analytics. He is currently working as a 'Business Intelligence Analyst' at Micron Technology, Inc.

25 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Ms. Jahnavi Jindal Founder, VAD

STARTING YOUR OWN BUSINESS IN YOUR EARLY 20’s Starting my own business was always a plan on the “List of things to achieve in my twenties”, I just never thought it would be so early. Covid has taken so much from us and is still a threat but constantly cribbing about the situation we’re in, is never a solution and for me, the way out became starting my business. I had always wanted to own a business but it felt like a far-off idea since I was completing my graduation and had other things as a student and an individual who wanted to make a career. But during Covid, things slowed down a lot and productivity came down to a level we never thought it would and so I took the first step of finally putting a brick into a business that one day may become a big brand of my own.

Coming from a business family, I have observed the functioning of a business enterprise very closely.

The risks associated with it, the effort that went into operating it, the amount of time invested, etc. I knew it would take time, and a considerable amount of it, to set off in the market. There were so many decisions to be taken care of and as things started getting real, I started to get more skeptical of my decision to get into a business.

Decisions involving funding-as to what extent of monetary investment would be made, decisions regarding the brand name, brand logo, packaging, labeling, the delivery and marketing process, and so on. The biggest decision was whether I was going to be a sole proprietor or start as a partnership.

Many of my friends were interested in doing it with me and maybe I would have had a lot on my shoulders if I had someone to fall back onto but sooner rather than later I realized every individual had very different work ethics and I would not gamble my business’s success on someone else’s motivation to do something or not. If I wanted to achieve my vision I had to start solo and maybe have a team once I established what I aimed for.

Starting a business straight out of college, with no experience and just an in-born sense of business, was a damn right wild idea and it was going to be executed on a free wild spirit and thus came the

26 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

name of my brand – VAD. The name is a direct adjective for wild and free-spirited, which will be the flow of this brand.

It’s been on the market for 4 months now, and as Covid gave me the time to start it, it has also been the reason to hinder the growth of it as an enterprise.

My number one goal is to make this a feasible fit-for-all clothing brand and take things as they come.

It’s not easy every day to get up and work for something that may or may not work out but I guess we just need to remind ourselves at that moment that there are dreams to be achieved and goals to be met, and all of that will only happen when we thrive harder towards them each day. One day at a time.

About Author: Ms. Jahnavi Jindal is a young entrepreneur who solely began her business startup. Completing her under graduation from Delhi University in the year 2020, she is set on starting her master's as well as fully dedicating herself to the settling and growth of her business. She has a great sense of business operations and motivation to keep going until the receiving of her goals. She is keen to learn and believes in the power of hard work eventually showing results

27 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

EMERGING MANAGERS

28 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Ms. Shrutika Joshi MBA, 2020-2022 IIM Jammu SMART CONTRACTS IN SUPPLY CHAIN

“It’s no longer the big beating the small, but the fast beating the slow.”

Eric Pearson, CIO – International Hotel Group (IHG) In today’s world, where cities, phones, devices everything is getting smart, why not contracts as well! For ages, we have been dependent on paperwork for confidential information in various industries. Owing to blockchain we now have Smart Contracts as a more secure way to handle important data with more authenticity and transparency. The concept is still in its early stages though the term was first coined by Nick Szabo in 1997. But since the file system is deeply rooted in a lot of industries, it takes for a new disruption to come and alter the whole process.

The buzzword So, Smart Contract is nothing, but a computer code written to execute some processes based upon the completion of certain predefined goals. The code of the Smart Contract will be stored in a blockchain so that all the stakeholders have access to it. Omitting the work of middlemen in complicated systems.

To understand the concept with an example, let us say that there is a task to be completed by Party A which will be funded by another Party B. So instead of trusting each other or a third party of the ownership of the money involved, they can make use of Smart Contracts. Party B can transfer the 29 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

money to Smart Contract, in digital mode, till Party A executes the task. On the completion of the task, the money will be transferred to party A. If the task fails, the money would be transferred back to Part B. In this type of digital log of data, both parties can participate in the contract with the security of their data or money.

The Smart Contract is distributed over the network. That means everyone in the block chain has access to it in real-time. And even though it is available to the entire network, it cannot be tampered with by anyone. This is the uniqueness of a Smart Contract that, once created it cannot be changed.

It can only be completed based upon the success and failure of some goals. With all the automation in various industries, automating the payments is a breakthrough that can be used by any industry irrespective of the domain they are operating in. Several vendors in the market let their clients develop their smart contracts based upon individual needs. To name a few of them, there is Slock.

It, Fizzy, Etherparty, Propy, etc. The concept has relevance in the banking sector, insurance, airlines, and many more.

Supply chain use case Over the past two decades, the supply chain has evolved manifold. The products or services are created at a certain place and then delivered anywhere across the globe. The last-mile delivery is no longer a domestic concept. In this type of system, there are numerous companies with a global network of customers, involving a two-way transfer system. The exchange of goods and services and in return the transfer of payments. While the transfer of finished products needs human intervention to some extent, the payment could be easily automated with Smart Contracts. This saves time and money for both parties. With a lot of companies entering the logistics industry and catering to consumers around the world, the security and integrity of the network are essential. In this type of system, the Smart Contracts provide a transparent network for all the stakeholders, which is not only efficient but also cost-effective.

Currently, a lot of firms have adopted technology in their business processes. DHL is considered a giant in the logistics industry, has moved to a blockchain-based supply chain. Block Array is using the concept in their shipment network to monitor their processes end-to-end with the least middlemen involved. Maersk, another giant in the shipment industry is working on the technology with IBM to automate their supply chain network overseas. The ship chain is making use of the Smart Contracts in their entire supply chain and to completely transform it to a digital one in the coming times.

30 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Mr. Vasu Jain MBA, 2021-2023 IMT Ghaziabad

SUSTAINABILITY IN OPERATION MANAGEMENT

The unexpectedly clean air that resulted in some places from steep COVID-19–induced drops in industrial activity appears unlikely to change a larger truth: the world is not yet on track to meet the greenhouse gas (GHG) emissions-reduction targets required by the 2015 Paris Climate Agreement.

And it isn’t only the atmosphere that human activity is harming. At current growth rates, global annual waste generation would increase by 70 percent by 2050, while critical resources from minerals to clean water are being depleted at unsustainable rates.

Industrial activities are responsible for the lion’s share of global carbon emissions. Roughly 28 percent of global GHG emissions came from industry in 2014, so unless the industry can lower its emissions, the world will continue to struggle to reach its GHG-reduction goals. Companies generate greenhouse gasses directly in their factories, and indirectly through the consumption of electricity and the fossil fuels required to transport products and materials.

Most organizations recognize the imperative to reduce the negative impact of their activities on the environment. There is also increased pressure from employees, investors, communities, and customers to improve environmental sustainability efforts.

The operations advantage For business leaders already facing a difficult journey into the post-COVID next normal, sustainability and profitability can look like conflicting goals. Large-scale investments in renewable energy, advanced manufacturing technologies, or alternative materials may appear harder to justify 31 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

in an environment when many organizations are reexamining their costs, product portfolios, and capital plans.

Sustainability doesn’t have to come with a hefty price tag. When companies optimize their operations—whether to increase productivity, improve quality, or reduce cost—better environmental performance can be a byproduct. Efficient manufacturing processes and supply chains don’t just cost less to run: they also consume less energy, use fewer resources, and produce less waste.

Today, many of the world’s largest businesses are learning how to maximize these synergies between operational excellence and environmental benefit, designing and executing improvement initiatives to address both cost and sustainability goals—simultaneously.

Manufacturing: Optimizing process control and product formulation The production of basic materials, such as steel and cement, is a major contributor to global greenhouse-gas emissions. Although full decarbonization is likely to require investments in new production technologies, companies in these industries are pursuing a range of strategies to reduce the climate impact of their production processes.

Some players have found that they can make significant improvements to the environmental profile of their products with only modest capital investments. In primary steel production, for example, optimizing the control of blast furnaces with better sensors and improved analytics can reduce coal consumption by 10 to 15 percent.

Consumer goods: Optimizing packaging through the supply chain Public awareness of packaging-waste leakage, especially from plastic waste, into the environment has increased significantly over the past 12 to 24 months. Yet recycling rates for plastic packaging are relatively low. In the United States, for example, recovery rates for packaging and food-service plastics account for only about 28 percent of the total waste.

At one major quick-service food player, the manufacture, distribution, and retail sale of sandwiches alone created more than 900 metric tons of non-food waste every year. While some of that waste was generated at the point of consumption, much of it was produced upstream, as sandwiches were placed in multiple types of packaging as they traveled through the supply chain.

To address this issue, the company redesigned its packaging, developing a single, sustainable solution that could protect the product through the end-to-end supply chain. The change cut overall packaging costs significantly and eliminated 160 tons of waste every year.

Logistics: Reducing shipping costs and greenhouse gas emissions 32 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

The transportation sector is the world’s largest single source of greenhouse gas emissions. In the US, it accounts for around 30 percent of total carbon emissions, with freight transport making up more than 40 percent of that total. Optimizing logistics helps companies reduce costs and emissions in tandem. That means using fewer trucks, ships, and aircraft to move their products—and planning supply chains so those transport assets cover fewer miles.

One company used telematics technology to monitor the movement of its large road-vehicle fleet, then applied advanced analytics to that data to optimize routes and vehicle utilization. The project led to an annual reduction in road miles of around 20 percent, cutting carbon emissions by 1,300 metric tons. Secondary benefits included a meaningful reduction in road accidents and lower insurance premiums.

Procurement: Buying into a smaller carbon footprint Sophisticated purchasing practices can help companies control their external costs and minimize their impact on the environment. In road building, for example, asphalt prices can vary significantly according to local market dynamics. One road builder had traditionally purchased asphalt based on price per ton alone, which often meant the product was transported long distances from the producer to the point of use. When the company adopted a total cost-of-ownership approach to sourcing, including logistics costs in its calculations, it found that local producers were usually a better value.

The change cut shipping and associated carbon emissions by 40 percent.

High-performing operations can deliver much more than just financial impact. Maximizing the output a business achieves for every unit of input is better for the environment as well as the income statement. While reductions in resource consumption and waste were once just a useful side effect of operational improvement programs, many organizations are incorporating sustainability targets into their plans from the outset. In challenging times, that approach offers a rapid route to the next normal that can be sustainable both financially and environmentally.

33 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Ms. Muskan Grover MBA, 2020-2022 IBS Hyderabad HR OPERATIONS FOR SMALL BUSINESSES I have heard a lot about what HR people do except for hiring and firing people and to this, my answer is that they have to deal with people and processes. Some days are having a conversation with the employees and listening to their issues with their performance and the other day hiring an individual and running back-end work.

What does an HR operations manager do?

The HR Operations manager looks after all the functions of the human resource department and all the employees. ● The main responsibilities of a Human Resource Operations manager are: ● Setting objectives for the team and tracking their progress ● Reviewing and approving the budget ● Monitoring internal HR systems ● Recommending new software’s ● Designing and implementing company policies HR operations are incorporated in all the departments like sales, marketing, and service departments.

Main Goals of HR Operations 1.

Identifying Issues HR Operations manager deals with day-to-day processes of the Human Resource Department, this helps in identifying issues and improving them before it becomes a serious issue for the organization.

As HR Operations Manager monitors all the functions of the Human Resource Department, it is easy for them to get an insight into where the issues are arising.

34 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

For example- it may happen that some employees are not on the right track in meeting their goals and they might need training or motivation. With the HR operations manager being there, this issue can be resolved.

2. Improved Employee Relations As the HR operations manager is involved with all the functions of the human resource department and all the other departments, it becomes easy for them to be more involved with the employees and interacting with them which creates a positive working environment.

3. Establishing HR practices Working on a day-to-day basis with all the functions of HR helps in developing what all practices lead to success and what all towards failure. In this way, one can optimize their human resource processes to boost their company performance.

This way it helps in developing practices that are achievable with our resources and what works well for our particular business.

Small Business Small businesses are wholly owned organizations with investments being not more than Rs. 2 Crore in the equipment’s in the service sector and Rs. 5 crores in the manufacturing sector.

The HR department works with one single priority in their mind that is the well-being of their employees. Approaches may vary according to the size of the organization but the priority remains the same.

It’s important to learn a few differences of HR roles in small and large business organizations.

Different Role of HR in small and Large Business Organizations 1.

Availability of resources The basic difference is the availability of resources in the organizations as small businesses have small HR teams and restrictive budgets according to their earnings. This results in HR teams not having enough money to give the best training, long-term policy development, and team building.

But this con also gives an edge to small business HR managers by being creative and fulfilling their responsibilities.

This not only helps HR managers to be creative but also finds affordable alternate options, which is not there in large business organizations as they have an internal HR at disposal.

2.

Recruitment and Retaining of employees

Recruitment and retention are the most important aspects of an HR team but the process differs in different business organizations.

35 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Small and medium businesses are tuned towards affordable AI-based platforms which help them design and conduct pre-employment assessment programs. This helps in assessing employees on different grounds and making HR teams work easily.

On the other hand, large organizations follow their multiple round procedures which are tried and tested by them. They can also afford to outsource the whole procedure if it is needed.

3.

Responsibility In small businesses, the HR manager has to do a lot of tasks than required as the team is small in size.

They might have to work on payroll, employee relations, policy-making, and many more.

But in large organizations, roles and responsibilities are clearly defined and it never overlaps with any sort of work.

4.

Organizations Structure Large organizations are more structured and established and this goes for their HR department as well. HR’s are benefited as they don’t have to multitask and it reduces their workload.

Whereas small business organizations are not so structured and lack a well-established process. They are required to handle each case by case and work on it. This may be challenging to some but a learning procedure for others.

Conclusion From small to large enterprises, the most crucial parts of HR fluctuate dramatically. Small enterprises offer more freedom and a diverse work environment, despite having fewer resources, more responsibilities, and unsophisticated recruiting methods. Large firms, on the other hand, tend to have more organized work environments, targeted workloads, and less freedom for innovation.

The Human Resource Department in any size of the industry is an important part as it not only helps in improving the performance of the company but also impacts employees’ well-being.

In my opinion, the HR Department is required in small businesses for smooth working with creative and affordable alternatives taken by the organizations as a rule.

36 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Mr. Sai Kiran Boyina MBA, 2020-2022 IBS Hyderabad USING BLOCKCHAIN TO DRIVE SUPPLY CHAIN TRANSPARENCY

Managing today’s supply chain is extremely complex. According to supply chain giant Maersk, one shipment from an African country to a European country involves almost 30 people and organizations with more than 200 transactions. This illustrates that the supply chain transparency which was virtually unknown 15 years ago has become the need of the hour. Companies are under immense pressure from customers, governments, producers, manufacturers, vendors, and other stakeholders to disclose information about their supply chains. This has become a growing business imperative to develop transparent supply chains by using blockchain technology.

Blockchain technology: A blockchain is a decentralized distributed digital ledger, it records transactions as a series of blocks that are linked together sequentially in a chain. Hence the term blockchain.

37 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Some of the notable pilot projects of blockchain implementation in supply chain management: ● Walmart tested an application that traces the source location of pork i.e china which is sold in the US. ● Maersk and IBM are working on a cross-border, cross transaction to improve process efficiency by using blockchain technology. ● Merck and Walmart, along with IBM and KPMG, are testing blockchain as part of a program to improve drug safety and security. ● Brilliant Earth has integrated Everledger's blockchain technology into its supply chain to more securely track the origins of its diamonds.

The way that blockchain works mean that the data within the block cannot be altered and tampering is all but impossible. This means companies can employ this technology to check the correctness of the transactions, even in cases where there is little trust among the parties involved.

Features of Blockchain in the supply chain: ● Consensus: For a transaction to be valid all parties have to agree, no news blocks are created or change made without consensus. This means supply chain transactions such as payment, warehouse management, inventory, transportation, and delivery can use blockchain to bring consensus. ● Provenance: Every physical product comes with a digital passport that proves authenticity (Is this the product what it claims to be). Blockchain technology allows you to see from where the product originated and who owned the asset at what time. Provenance can be attached to any asset such as iron ore, food grains, machines, and even intellectual properties. ● Immutability: Each transaction that is verified by the blockchain network is timestamped and embedded into a “block” of information, cryptographically secured by a hashing process that links to and incorporates the hash of the previous block, and joins the chain as the next chronological update. In other words, if data is tampered with, blockchain will break.

Cryptography + Blockchain Hashing Process = Immutability

38 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Key benefits of Blockchain in the supply chain: ● Replacing slow and manual processes: Many supply chain activities especially those in the lower supply tiers are slow and entirely rely on paper. Blockchain technology in the supply chain can replace these manual processes with an end-to-end digital process that delivers new levels of visibility and transparency. ● Strengthening traceability: Let us illustrate this with the help of a diagram, from the below diagram we can see the supply chain network of pork meat, in 2016 Walmart in collaboration with IBM deployed a pilot project to generate transparency and efficiency in supply chain record-keeping.

Information such as farm origination details, batch numbers, factory and processing data, expiration details, and shipping details are linked to the physical product as it moves from source to destination.

Information captured during each transaction is validated by businesses within the network (farms, processing facilities, shipping companies, and retailers). Each pork item received at the store is verified as authentic, and its digital record could potentially reveal food safety issues picked up between farm and store. ● Moving forward As blockchain gains momentum, companies should keep observing the players in their industry who have begun experimenting with blockchain. Companies could pay attention to other stakeholders in their supply chain and competitors for indication of timing to develop a blockchain prototype.

39 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Ms. Shristi Sharma MBA, 2020-2022 IBS Hyderabad SUPPLY CHAIN COORDINATION

The supply chain is a system of organizations, people, activities, information, and resources that are used while transferring products/services from manufacturer to customer. Supply chain coordination (SCC) is a proven method for boosting supply chain performance. Interdependent organizations can create coordination by merging resources and information to achieve common objectives aligned to maximize consumer value for the entire supply chain. SSC usually focuses on inventory management and decisions regarding orders to improve the performance of the organization.

Importance of SCC The supply chain's ever-changing dynamic structure presents numerous fascinating problems for successful system coordination. Members of the supply chain cannot compete on their own. Before the end-user consumes a product, it passes through several entities that contributed to the product's value addition. Furthermore, policies such as globalization, outsourcing, and a reduction in supply base have increased uncertainty and risk exposure, as well as made supply chains more vulnerable to disruption.

To increase overall supply chain performance, supply chain participants may act as if they are part of a cohesive system and coordinate with one another. As a result, the term "coordination" becomes more prominent. Inter-firm coordination processes characterized by effective communication, information sharing, partnering, and performance monitoring were explored inter-firm coordination processes characterized by effective communication, information exchange, partnering, and performance monitoring.

Obstacles in SCC Any factor that causes local optimization by separate phases of the supply chain or an increase in information latency, distortion, and variability within the supply chain is a coordination barrier.

40 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

Managers in a supply chain can take appropriate activities to help achieve coordination if they can identify the major roadblocks. The biggest roadblocks are divided into five categories: • • • • •

Obstacles to incentives Obstacles to data processing Obstacles in the Operation Obstacles to pricing Obstacles to behaviour

Coordination through Managerial Levers • • • • •

Goals and rewards must be in sync.

Increasing the visibility and accuracy of data Increasing operational efficiency Creating pricing techniques to keep orders stable Developing strategic alliances and trust

Managers can aid supply chain coordination by aligning goals and incentives across various supply chain activities and stages. Managers can also take other steps to achieve coordination, such as sharing sales data and collaborative forecasting and planning, implementing a single point of control for replenishment, and enhancing operations to minimum lot sizes and lead times.

41 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

ABOUT US The word “Kaizen”, where “Kai” = change, “Zen” = good, signifies change for the better. In its birthplace Japan, the word Kaizen is imbibed as a process that many small continuous changes in systems and policies bring effective results than few major changes. This methodology applies to every department across different sectors.

Kaizen – The Official Operations Club of IBS Hyderabad has always been aspiring “Constant Change ad Evolvement”. We, as an organization work to inspire and aspire to the student community for the betterment of the future.

KORE – Kaizen’s Operations and Research Entity, one of our primary wings provide the students with a platform to improve and hone their technical competencies to meet the changing demands of the organizations. KORE’s sphere of influence includes Case-Based Research, Consultancy, Live Projects, and Workshops. LAKSHYA, an initiative of KORE focuses on improving the reader's knowledge about Operations Management by providing insights in the form of articles on various operation techniques followed by different companies and also updating the emerging trends in the communities.

K PAVAN KUMAR REDDY EDITOR IN CHIEF - KORE Club Kaizen – IBS Hyderabad Batch 2020-22

42 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y

LAKSHYA is an academic print and is not for any commercial sale. Reliability and Responsibility, for sources of data for the article vests with the respective authors.

Please feel free to drop in your suggestions at kaizenclub.ibs@gmail.com KORE: Kaizen’s Operations & Research Entity.

Kaizen – The Official Operations Club of IBS Hyderabad All Rights Reserved

Designed by

43 | K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y