LAKSHYA- A BEACON OF KNOWLEDGE, FEBRUARY EDITION 2022

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 toyouacollectionofthoughtfullycreatedandcarefullycuratedpiecesofworkbysomebrightaspiring 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 minutechangeintheecosystem.WithLakshyaweaimtopresentourreaderswithcompactyetexplicit 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.

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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.

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EDITOR’S LETTER “If you have knowledge, let others light their candles in it."

Welcome to the 46th edition of “LAKSHYA”, our monthly supplement designed for people who take that one extra step to reach perfection. To step above the average, one needs to strive for excellence.

That is exactly what we aim to achieve here. Preaching continuous improvement since its inception, Club Kaizen brought forward this magazine, which enables young writers to garner a platform where they can learn, grow and re-learn new things every day. A magazine is a tool that aids students and professional managers to get deeper insights into the current trends and latest happenings around the world.

Lakshya is an amalgamation of articles from corporate professionals, faculties, and students from reputedorganizationsandinstitutionsallacrosstheworld.ThearticlespublishedthroughLakshyaaims to provide a hands-on experience from great minds and business leaders who wish to inculcate theoretical concepts and strategies with practical implementation. We all collectively wish to bring in the best, organic and fresh ideas from the young pool of budding managers as well.

Also, the most important aspect of a magazine is that it provides a platform for students to enhance and improve their writing skills; it would also create an environment for them to enrich their thought process where they research and write articles.

We hope that you like this issue and please let us know if there are any areas or topics that you'd like us to address in upcoming editions. Please write to us and become a part of this discussion.

Email ID: kaizenclub.ibs@gmail.com

AARATRIKA LAHIRI VICE-PRESIDENT Club Kaizen – IBS Hyderabad Batch 2020-22

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CONTENTS

S. NO.

TITLE

PAGE NO.

1

From the Mentor’s Desk

5

2

Operational Challenges in Steel Manufacturing and Raw Material Handling

7

3

Reducing the Risk of Supply Chain Disruption

12

4

Digital Transformation-An Opportunity to Redesign the Process

16

5

A Better Customer Service With Big Data

20

6

The Role of Customers in Total Quality Management

23

7

The Role of ERP in Supply Chain Management

27

8

Future of AI in Operation Management

30

9

Transforming Global Supply Chains

32

10

Aggregate Planning and Strategies

35

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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

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FACULTY’S INSIGHTS

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Dr. Venkateswara Rao Korasiga Professor, Department of Operations and Supply Chain Management, IBS, Hyderabad Operational Challenges in Steel Manufacturing and Raw Materials Handling With the development of economies driven by industrialization toward the start of the 20th century, nations with sound steel ventures profited from a first-mover advantage. India became autonomous in this century and hoped to become independent under its recently taken on model of a blended economy. To accomplish this objective, the essential (unrefined substances), optional (assembling), and tertiary (administrations) areas must be grown at the same time. As an unrefined substance and transitional item, steel was the normal connection between each of the three areas. Because of its high consumption obstruction, steel observes wide use in numerous intricate enterprises managing different receptive/non-responsive components. Colossal strength, low weight, sturdiness, and malleability for a minimal price make steel the most important unrefined substance of the assembling area.

Let's take a glance at Wootz Steel, one of the most well-known creations, which is made using an ancient Indian technology. The process involved preparation of porous iron, hammering it while hot to release slag, breaking it up and sealing it with wood chips in a clay container, and heating it until the pieces of iron absorbed carbon from the wood and melted. The steel thus produced had a uniform composition of 1–1.6% carbon and could be heated and forged into bars for later use in fashioning articles, such as the famous medieval Damascus swords.

Today, the steel business contributes somewhat over 2% to the GDP of the country. This rate represents a direct commitment. The circuitous commitment of steel is a lot bigger, attributable to the reliance on different areas. The steel business utilizes almost a large portion of 1,000,000 individuals straightforwardly and 2,000,000 individuals by implication.

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Challenges in Raw material consumption: The fundamental units of "natural substances the board" can be supposed to be every one of the exercises getting, buying, refining, creating unrefined components that go into conveying an adequate measure of unrefined components at an OK quality and cost to guarantee that the key and functional goals of the firm are accomplished, while additionally working proactively inside the association to guarantee that accessible natural substances give the most ideal advantages inside the impediments given by the creation cycle. Viable unrefined components the board implies playing out this multitude of exercises better-i.e., quicker, with better caliber, better cost, and with fewer information sources and fewer obstacles than contenders. This should be finished by thinking about both the serious climate of the firm as well as inward qualities and shortcomings of the firm, i.e, the expense of utilizing any natural substance is connected to the cycles utilized inside the organization and can't be perceived except if a wide view is applied.

Converting waste steel (Scrap) into useful products in a coal mining industry: Today, it is assessed that the worldwide steel industry utilized around 2 billion tons of iron mineral, 1 billion tons of metallurgical coal and 575 million tons of steel scrap to create around 1.7 billion tons of unrefined steel. Recycled steel (likewise called piece steel) is one of the business' most significant natural substances. It comes from obliterated designs and end of life vehicles and hardware as well as from the yield misfortunes in the steelmaking process. Every steel plant is likewise a reusing plant, and all steel creation utilizes scrap, up to 100 percent in the electric bend heater (EAF) and up to 30% in the impact heater (BF) route. All scrap that is gathered is reused, and the general reusing rate today is assessed to be around 85%. This significant degree of reusing actually intends that there is a restricted opportunity to get better.

Scrap assumes a key part in diminishing industry discharges and asset utilization. Each huge load of scrap utilized for steel creation evades the emanation of 1.5 huge loads of carbon dioxide, and the utilization of 1.4 huge loads of iron metal, 740 kg of coal and 120 kg of limestone. The future extension of scrap-put together steel creation will depend with respect to the accessibility of highgrade scrap. While iron metal inventory can flex with request, worldwide piece accessibility is an element of steel interest and the emerging of scrap toward the finish of-life of steel-containing products. Global steelmaking limit encountered a period of hazardous development from the mid 2000s generally fuelled by interest in new limit in China. With steel items having a normal life expectancy of 40 years, this steel will start to enter the piece market in the following ten years, empowering a critical decrease of steel industry discharges.

Iron mineral and metallurgical coal is utilized primarily in the impact heater cycle of iron making.

For this interaction, coking coal is transformed into coke, a practically unadulterated type of carbon, which is utilized as the primary fuel and reluctant in an impact furnace. Typically, it takes 8|KAIZEN’SOPERATIONS&RESEARCHENTITY

1.6 huge loads of iron metal and around 450kg of coke to create a huge load of pig iron, the crude iron that emerges from an impact heater. A portion of the coke can be supplanted by infusing pounded coal into the impact heater. Iron is a typical mineral on the world's surface. Most iron mineral is extricated in opencast mines in Australia and Brazil, conveyed to devoted ports by rail, and afterward delivered to steel plants in Asia and Europe. According to the United Nation's COMTRADE Statistics Database, worldwide products of iron metal in 2017 added up to around 1.5 billion tons, addressing the second-biggest ware exchange volume internationally, behind worldwide unrefined petroleum trades.

Effective utilization of normal assets is basic to maintainability: The steel business utilizes trend setting innovations and procedures to increment creation yield rates, decrease its energy prerequisites, and work with the utilization of co-products. On normal, 20 GJ of energy is consumed per ton of rough steel delivered internationally. The most proficient steel organizations have diminished their energy utilization per ton of steel by around 60% beginning around 1960.

Raw Materials quality control: Exactly taking care of interaction materials is basic to keeping up with item quality in steelmaking yet estimating and guaranteeing steel natural substance quality control can be challenging. To conquer a portion of these difficulties, some innovations assist with observing unrefined substance feed with transport line-scale frameworks and weight belt feeders, online natural analyzers to break down the unrefined substance process stream, and dampness online analyzers to assist with enhancing impact heater execution.

Here is an inside and out take a gander at the advancements utilized for natural substance quality control in steel fabricating

• Belt scale systems: Transport line-scale frameworks screen steel natural substance feed to smashers, factories, screens, planning plants, and coal-terminated power plants to assist with guaranteeing exact taking care of cycle materials and keep up with item quality. These frameworks assist with accomplishing high exactness in gauging applications requiring affirmation by government and administrative organizations. The frameworks normally contained a 4-idler, 4-load cell weighbridge, speed sensor and hardware to give stable high-precision gauging. Accuracy belt scale frameworks let you screen creation results and stock, or control item load out while giving crucial data to the successful administration and effective activity of the business.

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• Weigh Belt Feeders: Exact taking care of cycle materials is frequently basic to keeping up with item quality. A feeder that gauges precisely and dependably can help precisely control process material feed rates, decrease material waste, keep up with mix consistency, increment benefits, and meet client determinations.

• Moisture Online Analyzers: These non-reaching hardened steel analyzers utilized for solid dampness estimation can assist with improving impact heater execution by precisely deciding the dampness content in metallurgical grade coke and additionally iron mineral pellets. Dampness online analyzers can precisely and dependably measure the grouping of hydrogenous material in a cycle vessel.

Upgrading impact heater execution is the way to further develop activities and expand productivity.

Dampness analyzers are designed to assist with preparing factories to successfully deal with the most squeezing process issues, remembering changeability for coke size, contrasting measures of surface dampness, brutal natural circumstances at the mark of estimation, and high coke volume.

About Author: Dr. Venkateswar Rao Korasiga is currently working as Head of the Operations and Supply Chain Management department, and teaches subjects like Operations Management, Supply Chain Management, ERP and responsible for Research, Teaching, Project guidance, conducting workshops, MDPs, etc. He has experience with various teaching pedagogues like case method teaching, Lecture method, etc. at the MBA level at IBS, Hyderabad, and at UPES, Dehradun. He is also expertise in Restructuring Supply Chain, Turn around, Change management, Cost Reduction, Outsourcing, Implementation of 100% EOU projects, R&D (Refractories), and ERP (BaaN IV B, SAP). He has exclusive knowledge of heading Supply Chain Management(ie., R&D and Quality Control, Logistics, Project Management, Materials Management Functions, etc.) at Coal Refractory, Seafood, Chemical, Pesticide Industries for 21 years and 16 years of experience in BSchool Teaching and Research.

His one of the research project is focused on “Exploring the Antecedents of Medical Tourism in Supply Chain Agility and its Impact on Performance”. He is also one of the honorary members of the International Journal of Applied Services Marketing Perspectives, a refereed Quarterly Journals, ISSN (P) 2279-0977, ISSN (O) 2279-0985, Pezzottaite Journals and International Journal of Soft Computing, Mathematical control (IJSCMC).

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CORPORATE ANGLE

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Mr. Rakesh Reddy Supply Chain Analyst, Spinny, Gurgaon Reducing the Risk of Supply Chain Disruptions Most managers realize that they ought to shield their inventory chains from genuine and expensive disruptions - yet nearly barely any make a move. The difficulty: Solutions to diminish risk mean minimal except if they are thought about in contrast to their effect on cost productivity.

For inventory network managers, the early long periods of the 21st century have been prominent for significant store network disruptions that have featured weaknesses for individual organizations and for whole ventures universally. As well as taking many lives, the Japanese wave in 2011 remained the world automobile industry reeling for a considerable length of time. Thailand's 2011 floods impacted the stock chains of PC makers subject to hard plates and of Japanese auto organizations with plants in Thailand. The 2010 ejection of a spring of gushing lava in Iceland upset a large number of air voyagers and impacted time-delicate air shipments.

The present managers realize that they need to safeguard their stockpile chains from genuine and exorbitant disruptions, however, the clearest arrangements - expanding stock, adding limits at various areas, and having different providers - sabotage endeavors to further develop inventory network cost-effectiveness. Studies have shown that while directors like the effect of inventory network disruptions, they have done very little to forestall such episodes or moderate their effects.

This is on the grounds that answers for lessening risks mean minimal except if they are weighed against store network cost productivity. All things considered, monetary execution covers the bills.

Diminish Risk While Limiting the Impact on Cost Efficiency On many occasions, lessening disruption risk implies greater expenses. Truth be told, the explanation leaders are hesitant to manage inventory network risk comes from the insight that risk decrease will diminish cost-effectiveness altogether. In any case, directors can do a lot to guarantee that deficiency of cost-effectiveness is negligible while the risk decrease is significant by keeping away from unreasonable convergence of resources like providers or limits. What's more bumping compromises for fewer fixations by misjudging the likelihood of disruptions can be greatly 12|KAIZEN’SOPERATIONS&RESEARCHENTITY

improved over the long haul contrasted with underrating or disregarding the probability of disruptions.

1. Diminish the concentration of resources: An immediate outcome of making worldwide stock chains more effective and lean has been the increment in delicacy. The billions of dollars of lost deals and costs that Toyota Motor Corp. brought about following its item reviews in 2010 were an immediate outcome of an inventory network that depended on utilizing a solitary part, obtained from one provider, in numerous vehicle models. Despite the fact that utilizing a typical part assisted Toyota with lessening costs, it turned into the store network's Achilles' heel.

Organizations regularly deal with their everyday repetitive risks by "pooling" stock and limiting by having fewer appropriation places or plants or by having normal parts. More pooling diminishes the production network cost brought about to moderate repetitive (instead of troublesome) risks; the more noteworthy the aggregate sum of pooling of parts and limit, the more prominent the complete advantage. It is essential to understand, in any case, that pooling furnishes reducing peripheral advantages while managing intermittent risk. Simultaneously, expanded pooling can make the general store network more defenseless against disruption risks. As the Toyota case outlines, the utilization of normal parts created by a solitary provider in many models can amplify the effect of a quality-related disruption.

Should administrators look to make their inventory chains more lean and productive by focusing on normal parts and single providers, or would it be advisable for them to try to lessen disruptions and back off from attempting to be more inclined and proficient? To respond to this inquiry, it is essential to perceive those pooling repetitive risks by, say, decreasing the quantity of dispersion focuses, has lessening negligible returns for production network execution while expanding the store network delicacy and consequently the extra risk of disruptions. Whenever an automobile maker has no normal parts at all across various models of vehicles, fabricating some level of shared trait offers critical advantages. Yet, the minimal advantages become more modest as more parts are made normal. Alternately, going from one dissemination community to two can drastically diminish delicacy without fundamentally losing an excessive number of the advantages of pooling repetitive risks; this is particularly valid for enormous organizations. It is thusly conceivable to accomplish an ideal point in pooling resources via parts shared characteristic or fewer plants or dissemination focuses. This keeps intermittent risks low by pooling the resource and furthermore keeps the delicacy of the production network low by not taking pooling to limits.

2. Nudge trade-offs in favor of diminishing risk by misjudging the probability of disruption: In an all-around recorded illustration of store network disruption that occurred in 2000, a fire in a Philips Electronics plant in New Mexico intruded on the stock of basic cell phone chips to two 13|KAIZEN’SOPERATIONS&RESEARCHENTITY

significant clients: Ericsson and Nokia. While Nokia had the option to observe another stock source in three days, Ericsson lost with regards to a month of creation. Because of part deficiencies, its cell phone division experienced a $200 million misfortune during that period.

Nokia's capacity to refocus came at a forthright expense; however, it paid off as far as less disruption.

Everything being equal, it is difficult to gauge the likelihood of a plant fire, the liquidation of a provider, or a broken part. Intensifying the issue is the human propensity to underrate the likelihood of uncommon occasions the further eliminated we are from the time such occasions last occurred. Thus, store network fashioners and managers regularly misjudge troublesome risks while contemplating moderation techniques. Customary risk appraisal includes assessing the probability and the normal effect of an incident with regards to disruptive risks, it is challenging to concoct great or even valid evaluations. For instance, there was no sensible way for an automaker like Toyota to assess the likelihood of a section disappointment or for carriers to guess that European airspace would be shut to air traffic. In such settings, managers have a motivation to underrate the probability of disruptive risks by basically overlooking them - in this way keeping away from the need to de concentrate resources or make any compromises whatsoever. All things considered, planning for a potentially troublesome risk occurrence requires a forthright interest in risk moderation. That makes it appealing for supervisors with fixed spending plans to misjudge or even totally disregard the probability of disruption.

Yet, misjudging disruptive risks, for example, by totally overlooking them, is a perilous wagered.

Our examination utilizing insightful models and reenactment observed that underrating the probability of a disruptive occasion is undeniably more costly over the long haul than misjudging the probability. In case of a disruption, the misfortune caused for the most part overpowers any reserve funds from not putting resources into risk alleviation systems. This was plainly the situation for Ericsson: Any investment funds it could have created from having a solitary provider were overpowered by the misfortunes from the plant closure. Interestingly, systems intended to manage disruption risk, (for example, having various providers) make up for the forthright expense for some degree by giving a few advantages even with regards to intermittent gambling (for instance, supply can be moved to start with one provider then onto the next as provincial interest or trade rates shift). Certainly, interest in extra offices to alleviate the impact of uncommon disruptions is a genuine expense, while the reserve funds from kept away from expenses of disruptions are theoretical until a disruption happens. Regardless, considering that even uncommon occasions will really happen, the normal expenses from disruptions are ordinarily a lot bigger than any reserve funds from staying away from forthright ventures. Overinvesting in security against disruptions might be more financial over the long haul than not doing what's needed.

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Healthcare domain, building innovative technologies around device less vitals monitoring bringing a digital revolution in healthcare and wellness space.

About the Author: Rakesh Reddy has completed MBA from IBS Gurgaon Batch 2021 and currently working in Spinny in supply chain and Operations and has overall one year Experience as supply Chain analyst.

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Mr. Ramakrishnan Kasinathan Mentor Supply Chain Digital Transformation-An Opportunity to Redesign Process The learning is “If we avoid change management and try to tweak the digital to our existing process” then we miss the opportunity to step up our processes.

Similar thing happened with outsourcing. When I joined a company, the factory complained a lot about the decision to outsource toolings recently. They claimed when the toolings were in-house there were no problems but with outsourcing every time the tooling’s had problems and manufacturing lines stopped. When I called the Purchasing guys they confirmed due diligence has been done with each of the tooling suppliers and they are supplying to larger manufacturing companies with good credentials. I called a meeting of the suppliers-all of them confirmed that they were making tooling’s as per drawings but each channel wants some modifications which are not in the drawing.

I then called a senior person who was in the earlier in-house tool room and now moved to manufacturing due to outsourcing. He explained that they knew which manufacturing line had ordered and modified the tool as per that. Even if by mistake some minor errors were there, the manufacturing guys used to run to the tool room and fix the errors. So no one complained but the process itself was subject to errors.

After another round of discussions, it was clear for the past 20 years the drawings were not updated though each manufacturing line has done some customization and improvements in their production process resulting in modifying the tools. And management decided to outsource this department to bring efficiencies as other big companies have done it in the region.

Suppliers became easy targets as they were producing as per drawings whereas in fact production didn’t want it as per the drawings. No one blamed the lack of updated drawings as the in-house tool room was working without that.

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So for 6 weeks we had to work on updating the drawings and then fix the supply issues. Lesson is when we make a change or decide to outsource, do the due diligence. Change is never easy but rushing to change without fixing the current process problems will only aggravate the change outcomes.

Come 20 years later we are hearing a lot about Digital transformations. New technologies for track and trace, visibility, collaboration, ecommerce, Artificial intelligence (for demand planning), Analytics are everyday discussions happening in the Supply chain domain.

I remember when I was sitting on a board of the company; the management presented their Digital roadmap.

Starting 2020 to 2023, how they will adopt the best of technologies in each domain and become digitally driven. A lot of justification on how the technology was chosen and how it compares with the best of breed. The IT head was very excited that such roll outs will create an ideal solution for the business and they have lined up consultants to support in the roll out.

At the end of the presentation I asked “What is the business driver and how will the outcomes make our customer experiences better?”

After a minute of silence, the IT head replied “This will make us better than the competition that started the roll out 2 years back?”

“That is what customers say?”

“No, that is what we think based on benchmarking” “Benchmarking of service” “No Benchmarking of systems” “Exactly the wrong starting point…Digital roadmap cannot be made based on Fear Of Missing Out-FOMO…it has to be based on adoption of best in class process to better ourselves in cost, quality, service, innovation etc. Not based on what systems can do..even existing systems are used only to 40% -adding new systems can never be the objective of Digital…bringing best in class processes is” The board after long discussions vetoed the Digital road map and asked to work with business strategy as driver and how digital can help gain competitive advantage.

Change management is a big challenge-doing the change management for the wrong direction of adopting systems just because they are best in class is worse. Customers judge us by our products, service and our ability to keep promises. They appreciate innovation and speed to respond. They will pay a premium if we are better at that. If Digital does not help in building the competitive

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advantage then the investments are not justified. Step back before making the Digital roadmap as it is easy to get sucked into the hurry to join the revolution.

About the Author: Ramakrishnan Kasinathan (Ramki) mentors and invests in start-ups. He is also mentoring supply chain practice at Nexdigm (SKP). He has more than 27 years experience in Supply chain and purchasing domain. He set up supply chain department for Johnson & Johnson Medical India. He also worked in Global supply chain and Purchasing with SKF Group (as Director of Global Automotive and then Global Director of Purchasing). He also headed purchasing and supply chain of Hindustan Zinc.. He has held leadership positions for more than 2 decades. His rich experience in driving technology implementations, diverse global teams and passion for developing next generation leaders makes in a well rounded professional sought for expert advice by different industries.

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EMERGING MANAGERS

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Ms. Chakshu Dwivedi MBA, 2020-2022 Banasthali Vidyapith

A Better Customer Service With Big Data Regardless of the size of your organization, big data can have a critical effect on your customer care. What's better customer service prompts more joyful customers and expanded deals. Indeed, expanding your customer maintenance by 5% can result in a 25% increase in benefits. In any case, the issue is that even a significant number of the biggest organizations around aren't utilizing their data.

On the off chance that you're gathering data just to involve it for an intermittent rebate or coupon, you're discarding open doors to extraordinarily astounding customer encounters. There are various effective ways you can begin utilizing your big data to significantly further develop your customer service.

1. Stop Missing Customer Communications: Reacting rapidly is basic for decreasing negative customer encounters as well as advancing more sure ones. Also, the best way to do this effectively with the volume of associations happening is by saddling big data. With big data, organizations can undoubtedly follow negative comments and react to customer issues. Furthermore, big data from web-based media action can give immense bits of knowledge into customer concerns and empower your organization to distinguish and fix customer service issues rapidly. Investigation can likewise show which channels are habitually utilized by your customers. This data can then be utilized to choose where to best concentrate your promoting and publicizing endeavors.

2. Improve the Personalized Offers: Organizations can encounter development in income basically by working on the arrangement between customer practices and they're showcasing informing. This requires the capacity to give personalization on a stupendous scale, which is just conceivable through outfitting enormous data.

Big data investigation permits you to filter through customers' value-based data and buy history quickly and productively. This data can uncover how much a customer has spent, how regularly, and on which items or administrations. The worth of this is that it permits you to robotize advertising offers and suggestions in light of known customer inclinations.

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3. Enhance the Team Services: More than 90% of worldwide buyers say that customer assistance is essential in their decision of brand. Also frequently the achievement of your customer is not entirely settled by your workers.

They are the cutting edge who connects with your customers.

Therefore it's so critical to have dependable and steady customer care specialists. Luckily, big data can assist you with distinguishing their shortcomings and assist them with arriving at their full You can investigate this big data utilizing significant customer assistance measurements to pinpoint which regions various representatives need to chip away at. Measurements might include: – Average customer response time.

– Hold time – Call or chat abandonment rate.

– Customer feedback scores.

– Number of customer escalations.

Distinguishing shortcomings across your group will likewise permit you to recognize assuming that there is a bigger issue, like inadequate preparation or an absence of assets. It can likewise feature areas of chance for further developed customer service.

4. Create Real-time Customization: The capacity to gather data about customers continuously and react to it progressively is progressive which isolates fruitful brands from the remainder of the pack. Making this progress requires gathering, evaluating, and following up on continuous customer data. It requires coordination across the various capacities and branches of your organization. The genuine worth comes from evaluating constant customer data with regard to other ongoing business data.

5. Identify New Product Opportunities: Statistical surveying can be thought of as "little data." While it gives important experiences into the item plan, it centers basically around subjective data. As such, it represents the feelings and convictions that sway customers' choices.

Big data, then again, centers on quantitative data. Rather than noting why individuals purchase things, it just features purchasing patterns and examples. Because of the volume and openness of this big data, it will in general offer a high probability of precision, which is a goldmine for item designers. You can access past data indexes to examine how individuals will respond to various sticker costs, highlights, and different parts of an item or administration.

You can likewise distinguish their developing necessities. Big data can pinpoint changes in the commercial center quicker than statistical surveying. For instance, it could feature that more coupons are being utilized than at any other time. This, thusly, could flag an increment in customer value awareness or developing interest in markdown items.

By social occasion knowledge from both statistical surveying and big data, item and promoting groups can more readily recognize, comprehend and defeat both normal and enthusiastic destinations.

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6. Offer Omni channel Support: The advanced customer excursion can be predominantly complicated. In the present computerized climate, the way to buy includes more touch points and channels than any other time. Besides, to comprehend the whole excursion, you might have to follow connections back over weeks, months, or even years.

Enormous data can catch the whole excursion, yet it can likewise feature what portions of it most need your consideration. Big data handling and examination can recognize which channels are not coordinated and where customers are most often leaving their excursion. It can likewise pinpoint which channels are the most famous and which regions of your customer service are the most vulnerable. It might actually be utilized to recognize different value assumptions across channels.

These bits of knowledge permit you to create a completely incorporated and very much adjusted Omni channel customer assistance offering.

Driving Customer Service with Big Data: Big data holds an abundance of customer bits of knowledge that your business can use to wow your crowd. Tackling the data you've accumulated and utilizing it shrewdly can drive better customer assistance across the association regardless of the size of your organization.

Utilizing big data, you can react to customers quicker and offer customized help at scale. You can upgrade your customer care group's capacity to wow and service continuous customization. You can likewise rapidly recognize new and beneficial item contributions. Furthermore, guarantee your business is giving smooth Omni channel service.

Big data might appear to be overwhelming for more modest associations; yet tackling enormous data to drive better customer assistance permits you to further develop customer reliability and maintenance. This brings about more deals and better business.

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Ms. Somi Priyadarsani MBA, 2021-2023 IBS Hyderabad

The Role of Customers in Total Quality Management Complete Quality administration is characterized as a nonstop exertion by the administration as well as representatives of a specific association to guarantee long haul client dependability and consumer loyalty. Keep in mind, one cheerful and fulfilled client carries ten new clients alongside him though one frustrated individual will spread awful informal exchange and ruin a few of your current as well as likely clients.

You want to offer a bonus to your clients to expect reliability as a trade off. Quality can be estimated as far as strength, dependability, utilization, etc. Complete quality administration is an organized exertion by representatives to consistently work on the nature of their items and administrations through legitimate inputs and exploration. Guaranteeing prevalent nature of an item or administration isn't the obligation of a solitary part.

Each person who accepts his/her check from the association needs to contribute similarly to configuration secure cycles and frameworks which would ultimately guarantee prevalent nature of items and administrations. All out Quality administration is without a doubt a cooperative exertion of the board, staff individuals, labor force, and providers to meet and surpass consumer loyalty level. You can't simply fault one individual for not sticking to quality measures. The obligation lies on the shoulder of each and every individual who is in any way whatsoever connected with the association.

W. Edwards Deming, Joseph M. Juran, and Armand V. Feigenbaum mutually fostered the idea of absolute quality administration. Complete Quality administration started in the assembling area, however can be applied to practically all associations. Absolute quality administration guarantees that each and every worker is running after the improvement of work culture, processes, administrations, frameworks, etc to guarantee long haul achievement.

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Absolute Quality administration can be separated into four classifications: ■ Plan ■ Do ■ Check ■ Act Additionally alluded to as PDCA cycle.

Planning Phase: Arranging is the most vital period of all out quality administration. In this stage representatives need to think of their concerns and questions which should be tended to. They need to think of the different difficulties they face in their everyday activities and furthermore examine the issue's underlying driver. Workers are expected to do vital examination and gather applicable information which would assist them with tracking down answers for every one of the issues.

Doing Phase: In the doing stage, representatives foster an answer for the issues characterized in arranging stage.

Methodologies are formulated and executed to defeat the difficulties looked by workers. The viability of arrangements and systems is additionally estimated in this stage.

Checking Phase: Checking stage is the stage where individuals really do a correlation examination of when information to affirm the adequacy of the cycles and measure the outcomes.

Acting Phase: In this stage workers report their outcomes and set themselves up to resolve different issues.

Significance of Quality Management: "Quality administration" guarantees prevalent quality items and administrations. Nature of an item can be estimated as far as execution, dependability and sturdiness. Quality is a critical boundary which separates an association from its rivals. Quality administration apparatuses guarantee changes in the frameworks and cycles which in the end bring about prevalent quality items and administrations. Quality administration strategies, for example, Total Quality administration or Six Sigma have a shared objective - to convey a great item. Quality administration is fundamental to make predominant quality items which meet as well as surpass consumer loyalty. Clients should be happy with your image. Business advertisers are effective just when they accentuate on quality rather than amount. Quality items guarantee that you endure the merciless rivalry cheerfully.

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Quality administration is fundamental for consumer loyalty which in the long run prompts client faithfulness. How would you think organizations run? Do organizations flourish just on new?

Each business actually should have a few steadfast clients. You really want to have a few clients who might return to your association regardless.

Could you purchase a Nokia portable again on the off chance that the past handset was inadequate?

The response is NO. Customers would get back to your association provided that they are happy with your items and administrations. Ensure the end-client is content with your item. Keep in mind, a client would be blissful and fulfilled just when your item measures up to his assumptions and satisfies his requirements. Get what the client anticipates from you? Discover what really his need is? Gather important information which would give you more knowledge into client's necessities and requests. Client inputs should be gathered consistently and painstakingly observed. Quality administration guarantees excellent items and administrations by taking out surrenders and joining persistent changes and enhancements in the framework. Top notch items thusly lead to faithful and fulfilled clients who carry ten new clients alongside them. Remember that you could set aside some cash by disregarding quality administration processes at the end of the day miss out on your significant clients, subsequently bringing about immense misfortunes. Quality administration guarantees that you convey items according to guarantees made to the clients through different methods of advancements. Quality administration instruments assist an association with planning and make an item which the client really needs and wants.

Quality Management guarantees expanded incomes and higher usefulness for the association. Keep in mind, assuming that an association is acquiring, workers are additionally procuring.

Representatives are baffled just when their compensations or different installments are not delivered on schedule. Indeed, cash is a solid spurring factor. Could you want to work on the off chance that your association doesn't give you pay on schedule? Ask yourself. Pay rates are delivered on time just when there is free income. Carrying out Quality administration devices guarantee high client unwaveringness, in this manner better business, expanded income, and fulfilled representatives, sound working environment, etc. Quality administration processes make the association a superior work environment.

Eliminate superfluous cycles which only burn through worker's time and don't contribute a lot to the association's efficiency. Quality administration empowers representatives to convey more work quicker than expected.

Job of Customers in Total Quality Management: All out Quality administration alludes to a nonstop exertion of the board alongside the workers of a specific association to work on the nature of items and administrations. Organizations need to 25|KAIZEN’SOPERATIONS&RESEARCHENTITY

underscore on nature of their items rather than amount to endure the furious contest. Recall in the present situation, there is no deficiency of rivals on the lookout. How could a client get back to your association in the event that you don't convey what you had guaranteed him at first? You can trick somebody once yet not two times. Quality is a significant boundary for each business and ought not to be overlooked at any expense.

Clients assume a significant part in complete quality administration.

Before we continue further, let me pose you an exceptionally straightforward inquiry.

What is the fundamental contrast between a fruitful and an ineffective business?

A business is effective just when its items and administrations have an adequate number of purchasers on the lookout. Indeed there are a few different boundaries additionally yet clients assume a urgent part in choosing the achievement and disappointment of an association. Business advertisers need to zero in on their end-clients and what precisely they anticipate from their association. Client inputs ought to be routinely and painstakingly observed prior to forming any significant business technique. How might you disregard your clients who pay for your items which ultimately carry incomes to your association and return higher benefits?

Comprehend the necessities and requests of the clients: Complete quality administration guarantees that workers comprehend their objective clients a long time prior to rolling out any improvements in the cycles and frameworks to convey unrivaled quality items for better consumer loyalty. In fact, associations present all out quality administration or some other quality administration interaction to expand their client base and levels of consumer loyalty. All out Quality administration builds an association's information base of steadfast clients who might not go anyplace, regardless. Seriously, without clients a business couldn't actually exist.

Nature of an item isn't characterized uniquely as far as its sturdiness, bundling, unwavering quality, ideal conveyance, etc yet in addition a client's general involvement in the association. Recall client disappointment prompts loss of business. In assistance industry, workers need to interface with the clients reasonably and with extreme attention to detail and incredible skill to anticipate cheerful and steadfast clients. Plan different input structures for the clients for them to share what they feel about your items and administrations. The inputs might be agreeable to your association, may not be supportive of your business. Negative remarks or inputs of the clients ought not to be disregarded. As a piece of complete quality administration, representatives ought to sit on a typical stage, conceptualize thoughts and come to substantial arrangements which would work on the frameworks and cycles to ultimately conveyance what the client anticipates. No measure of complete quality administration would help assuming you overlook your clients.

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Ms. Rakshna Reddy MBA, 2021-2023 IBS Hyderabad The Role of an ERP System in Supply Chain Management ERP is first an attitude; second, a process, and only third, a set of tools.” - Alexis Leon.

Previously, supply chain management (SCM) was a troublesome process for businesses to deal with. Over the course of time, it turns out to be progressively significant for organizations to adjust their tasks to guarantee agility. This is regularly accomplished with the use of smart software, similar to an Enterprise Resource Planning (ERP) framework.

ERP assists organizations with accomplishing functional productivity via mechanizing the SCM interaction. Rather than depending on independent frameworks to oversee SCM and other key business tasks, an ERP arrangement effectively combines them into a solitary dashboard. From deals to human asset rehearses, ERP smoothes out business executives by coordinating differentiating frameworks, consolidating work processes, and overseeing data to make functional productivity and progress. Things being what they are, how does ERP work in the production?

Also, for what reason are half of the organizations previously utilizing it? How about we investigate how your business benefits from supply chains the executives with ERP. SCM assumes a significant part in different organizations, particularly those in the assembling business. For example, manufacturers depend on a progression of accomplices and providers who furnish them with explicit amounts of materials and assets expected for the creation of their contributions.

As a component of their arrangement, the conveyance of these materials should line up with the manufacturer's creation timetable and cutoff times. SCM assists organizations with decreasing creation costs while further developing usefulness in their offices to improve item quality. As organizations grow their activities, overseeing SCM processes turns out to be progressively troublesome. To this end, a few organizations go to ERP frameworks to oversee SCM. Not exclusively does ERP system gives your group a point-by-point, continuous gander at business processes utilizing concentrated data sets, it likewise smoothes out the whole interaction. This

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implies that your business burns through less time and cash with a more convoluted, decentralized framework and on second thought centers around spryness and process improvement.

ERPs play a multi-layered job in-store network the executives, helping with key capacities including: •

Accommodating demand:

As a component of its many mechanized highlights that smooth out SCM processes, ERP arrangements can provoke interest after getting orders. When the request is gotten, the ERP programming executes work booking. These advantages plant bosses, who get continuous data about the assets being utilized to satisfy the errands. Also, it assists them with precisely arranging dates for item conveyance while guaranteeing that all creation occupations line up with requests.

•

Managing procurement:

SCM-centered ERP frameworks help to oversee acquirement and supplies of assets and unrefined components applicable to the inventory network. With ERP, errands like stockroom asset the board, transportation of materials, and seller correspondence can be smoothed out or robotized to assist processes for further developed effectiveness.

•

Production information:

From fostering a bill of materials (BOM) to providing continuous information for work and mechanical assets, ERP programming can facilitate creation processes across your store network.

The ERP framework can likewise record transporting documentation to decrease mistakes and guarantee convenient item conveyance. On the off chance that somewhat late changes are expected for specific positions or orders, they can undoubtedly be carried out however your ERP arrangement.

•

Shipment processing:

Your ERP framework can make solicitations which are hence shipped off the client when the items have been transported to them. The product likewise keeps a total file of shipment and conveyance information to guarantee all orders are delivered on time. The ERP programming can likewise be designed to choose and perform quality affirmation minds bundling while at the same time settling asset clashes.

Executing Supply Chain Management and ERP Integration ERP in the production network on the board, we should zero in on how your business will approach buying comprehensive programming. ERP and inventory network the board goes inseparably. An appropriately executed ERP framework can unite SCM processes into a solitary dashboard for more straightforward administration. This brings benefits for private companies.

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ERP and inventory network the board goes inseparably. An appropriately executed ERP framework can unite SCM processes into a solitary dashboard for more straightforward administration. This brings benefits for huge and private companies.

These advantages include: •

Production issue reduction

•

Accurate demand forecasting and lean inventory

•

Complete transparency for all business processes

While directing your item research, you should search for an ERP framework that assists you with the accompanying inventory network processes: •

Supply chain planning

•

Inventory management

•

Warehouse management

•

Material management

•

Purchasing and procurement

•

Monitoring and maintenance

•

Measurement

•

Assessment

Conclusion Companies need to make significant enhancements in planned operations execution for by and large authoritative development. The way to boost the functional effectiveness is by limiting space wastage on store racks and lessening costs spent on stockrooms or appropriation focuses.

According to new measurements, organizations spend something like 25% of their financial plan on ERP which has a hearty store network the board highlights. ERP arrangement is an indispensable piece of overseeing production network hazard making the whole chain stronger to oblige changes in market interest. A nimble store network carries efficiency to the assembling system as well as empowers a better following of asset usage. Moreover, collaboration among ERP and inventory networks gives storekeepers better production network the executive’s efficiencies prompting huge ROI. At last, an ERP arrangement offers a comprehensive perspective on the whole business tasks.

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Mr. D John Dowson Denzil MBA, 2021-2023 IBS Hyderabad Future of AI in Operation Management

With the development and progression of information advancement, the competition has become progressively more focused on an overall scale. Numerous associations have measured that the destiny of movement and inventory supply chain management (SCM) may change fundamentally, from organizing, arranging, improvement, to transportation, with the presence of man-made mental ability (AI). People will be progressively quicker on AI, and other insightful headways, to the extent that SCM. Inside this particular situation, this particular assessment concentrates on giving a blueprint of the possibility of AI and SCM. It then fixates on the helpful and fundamental examination of AI-driven creation network investigation and applications. In this exploratory assessment, the emerging AI-based game plans of different case associations are separated. Their appropriate AI courses of action and related characteristics to associations are in like manner evaluated. Therefore, this investigation recognizes a couple of areas of critical worth creation for the usage of AI in the stock organization. It similarly proposes a method for managing arranging game plans for AI creation network applications.

The possibility of a store network recently existed a surprisingly long time before and is just similarly old as the real things have been. The stock organization is a stunning and integrative thought that covers the entire show and movement channels from suppliers, makers, dealers, and the end client. Ordinarily, the goals for the creation network are to fulfill client interest, further foster responsiveness, and make an association among different accomplices. Nowadays, the stock organization is ending up being progressively scattered, different, and direct to the extent that its business structure, business endeavors, and accomplices. The difficult issue for certain, affiliations are that the penetrability of the entire stock organization and the degree of information available inside the association are not great. Thusly, the mark of Supply Chain Management (SCM) is to digitalize the business cycle, to consolidate different accomplices and assets to ensure that the things are in congeniality with the client's necessities and to achieve goals associated with complete structure advantage.

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Various customary IT structures are given to supporting different business processes in composing factors and stock organization, as ERP (Enterprise Resource Planning), MES (Manufacturing Execution System), PPC (Production Planning and Control), SCADA (Supervisory Control and Data Acquisition), etc Cutting edge developments have digitalized essentially every useful collaboration to control delivering across entire stock chains. Nevertheless, these separated courses of action are not 'keen' enough and not genuinely sensible for the current SCM, on account of the influential thought of the creation organization, rapidly changing client premium, unstructured decision issues, and the persistently changing status of business processes. To lay outmaneuver, speedy, and convincing business response systems, it is crucial to work with the most important capability in each critical development and business stream in the store organization. As needs are, further created IT systems are relied upon to oversee staggered, outstandingly factor issues of current assignments in digitalization.

Lately, the possible results of applying Artificial Intelligence (AI) advancement hang out in various organizations. Computerized reasoning insinuates the limit of machines to acquire in actuality and make decisions on a progression of execution as a human with information. Computerized reasoning is an emerging field in computer programming due to the latest enhancements in significant neural associations, convolution neural associations, mathematical smoothing out strategies used in assignments research, constraint programming, and different numerical procedures. These advances have made it attainable for PCs to coordinate tasks that have as of late been serviceable for individuals so to speak.

The importance of AI by AAAI (Association for the Advancement of Artificial Intelligence) is 'impelling the sensible appreciation of the parts essential thought and vigilant direct and their representation in machines'. These definition shows that AI is extremely indulgent toward different advances and it very well may be said even realist. An extensively used course perusing by Russell and Norvig states that AI is the information on machines and programming, a piece of programming planned to make this understanding. The inspiration driving AI is to endeavor to fathom clever substances. The AI research neighborhood has been related to DSS and various procedures in the space of movement the leaders, for instance, orchestrating and booking since the 1960s. At this point, AI extensively influences SCM. The specific reasons are that the progression of AI and most keen developments start in SCM. The business legitimization for completing AI in SCM is that the gathering of AI can grow penetrability and straightforwardness in the store organization, and can similarly additionally foster customer things/organizations and buyer dedication.

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Mr. Naman Sharma MBA, 2021-2023 IBS Hyderabad Transforming Global Supply Chains Overview: A plethora of factors including US-China trade wars and the demand-supply deficit due to the Covid-19 crisis are forcing manufacturers across the globe to reassess and re-design their supply chain. There is a constant pressure to generate employment, increase production, reduce riskdependent resources, and re-think lean inventories and just-in-time replenishment, which can be impeding in a global economy with the raw material shortage.

There is a need to build a resilient supply chain without sacrificing competitiveness by determining potential disruption, assessing potential alternatives, and addressing vulnerabilities by diversifying your raw material procurement. Exploring technologies – automation, AI, 3-D printing, ERPs which can streamline the process – decreasing cost and increasing flexibility.

Changing Global Landscape: The supply shortage that started in China due to Covid-19 and the global economic shut-down that followed exposed the vulnerabilities and shortcomings of supply chains across the globe as trade restrictions were imposed. This coupled with the US-China trade war lead companies across the globe to implement lean strategies to minimize inventory containing global supply and implement just-in-time principles. The challenge remains to continuously re-evolve the supply chain and maintain competitive customer-oriented pricing.

Strategies to a Robust Supply Chain: To adapt to the ever-changing global landscape the firms should undertake the following suggestions to make their supply chain more robust meanwhile mitigating risk: Assemble-to-Order (ATO) in case of specialized products Product manufacturing with emerging technologies often requires specialized technical skills and expertise; a single supply chain can't have the breadth of capabilities to produce everything itself.

Hence, manufacturers turn to suppliers/subcontractors who are specialized in such products or 32|KAIZEN’SOPERATIONS&RESEARCHENTITY

components, providing flexibility according to customer needs and the ability to incorporate the latest technology. However, dependency on a single supplier may leave you vulnerable.

Accessing risk and vulnerabilities The process involves mapping suppliers as a low, medium, and high risk going to the grass root levels – analyzing how quickly can you recover with an alternative in case of a supply shock, days of sustenance in case of raw material deficit. Overall it’s an assessment of flexibility and dependence of your firm’s supply side. It can be addressed by diversifying your sources or reengineering your inventory management.

Diversification of supply base The well-known risk-hedging technique is to add more sources in locations not vulnerable to the same risk i.e. diversifying supply base across the globe not just a single one. The US-China trade war has inspired firms to implement the “China plus one” strategy. The firms across the globe are looking for alternatives for production just in china; however, this will require considerable time and investment.

In general, firms should have a diverse portfolio of suppliers so that they can be averse to the risk of a supply crunch.

Enhanced inventory management Firms across the globe should implement a lean inventory management technique implementing just-in-time, EOQ principles to avoid opportunity cost loss and obsolescence risk. However, firms should maintain an intermediate inventory or safety stock to avoid the risk of shutting down in case of a severe supply shock, like in the recent pandemic. Thus firms should weigh between costs of storage, risk of obsolescence with the advantages of maintaining a safety stock.

Incorporating technology Companies with a global footprint have the advantage to implement the state-of-the-art production process and manufacturing units whenever they decide to expand. These technologies help lower cost, increase the flexibility of production and provide economy of scale. The major technologies that help transform the supply chain are: •

Automation: As automation comes into acceptance along with its decreasing costs, increasing amounts of processes in the supply chain are being automated. It ensures precision, reduces labor requirements, and ensures quality control. The pandemic has enhanced prospects of automation as social distancing is not just a need but a necessity.

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•

New processing technologies: Cutting-edge techniques and equipment require fewer raw materials, produce less waste, are less capital-intensive, and are less expensive to operate. They will require smaller batch sizes economically cutting costs and increasing output.

•

Additive Manufacturing: This process incorporates 3-D printing dramatically reducing steps required to produce complex metal shapes and blueprint models. Rapid advancement in this tech helps produce an array of items in much higher quantities.

•

Artificial Intelligence: I is used across the globe to forecast demand for inventory management, increase efficiency, discover better- cost-effective ways of transportation, and in risk mitigation.

•

Enterprise Resource Planning: ERP provides a centralized platform for all operations of a supply chain. ERPs have now transformed to meet needs at global levels- SAP provides a platform for businesses across the globe to interact on its B2B integration further through ARIBA; it has streamlined the vendor system through e-procurement.

Conclusion: The global landscape is ever-changing, managers across the globe should introspect their respective supply chains to make them more resilient and flexible, building a trusted base of suppliers and vendors that help mitigate supply disruption and support business continuity.

Firms should incorporate emerging technology to make the entire supply chain more streamlined and resilient meanwhile gaining a competitive edge. There is an expected increment in investment towards digitization to enhance critical supply chain planning capabilities using AI-driven predictive analytics. Managers should leverage the existing capabilities across the globe while building a robust and risk-evasive supply chain that tackles future disruptions bound to occur.

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Ms. Nisha Mehta MBA, 2021-2023 IBS Hyderabad Aggregate Planning and Strategies

The process of establishing, assessing, and maintaining a preliminary, estimated timetable of an organization's total operations is known as Aggregate Planning. The overall plan includes targeted sales estimates, levels of production, inventory levels, and customer backlogs. Such a schedule is designed to meet the predicted demand minimal cost.

Production planning encompasses not just goods but also services. Aggregate planning identifies the production inputs required for a good or service (such as facilities, labor, raw materials, and inventory levels) in order to maintain consistent delivery dates while keeping costs low. So, it is an attempt to balance capacity and demand in a way that minimizes costs.

Aggregate planning is classified as intermediate-term (rather than long- or short-term). As a result, most aggregate plans are for three to 18 months. Future short-term planning, such as production scheduling, sequencing, and loading, is built on the foundation of aggregate plans. To construct an aggregate plan, one must first calculate the capacity (the number of units produced over a certain time period) and the client demand (the number of units required).

Some important factors to be considered for creating consistency in the process are: •

Pricing Strategies: Reduce the price to match capacity when demand is low. You can also do the opposite and raise the price when demand is high.

•

Marketing/Promotion: The demand for your product or service can be influenced by marketing and promotional activities.

•

Backordering: entails delaying delivery until demand exceeds capacity.

•

New Demand Creation: Create a new demand to augment one that already exists.

•

Workforce: To fulfill demand or respond to a lack of it, you can lay off or hire personnel.

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Aggregate Planning Strategies: The following inputs are required for success: an aggregate demand prediction for the planning period, capacity management (including the use of subcontractors, outsourcing, and other methods), and the current operating status of your workforce. All of this will lead to increased precision and, as a result, a higher chance of success.

This can be accomplished through the use of a variety of aggregate planning methodologies.

The aggregate planner has two pure planning strategies to choose from: Level approach, Chase strategy.

Firms can choose to use one of the pure tactics or a strategy that blends the two.

Level Strategy A level strategy aims to create an overall plan that maintains a constant pace of output and/or employment. In order to meet changing client demand, the company must increase or decrease inventory levels in anticipation of higher or lower predicted demand. When demand is low, the company maintains a consistent staff and output rate. This permits the company to stockpile more goods than is currently required. As demand rises, the company is able to maintain a constant production rate/level of employment while allowing the inventory excess to absorb the additional demand.

An aggregate planning strategy's purpose is to keep the production rate and manpower at the same level. This necessitates accurate demand forecasting in order to determine if production levels should be increased or decreased as consumer needs rise and fall. This overall production planning method will maintain your personnel while potentially increasing inventory and backlog.

Chase Strategy In a chase approach, demand and capacity are matched period by period, which results in a large number of people being hired, fired, or laid off; insecure and disgruntled personnel; increased inventory carrying costs; labor union issues; and unpredictable plant and equipment utilization.

This also reflects the company's willingness. The main benefit of a chase strategy is that it allows inventory to be retained at the lowest level feasible, which can save a lot of money for some businesses. In the case of aggregation planning, chase strategy is used by companies that embrace the just-in-time production idea.

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You're chasing market demand, as the term implies. Excess inventory isn't stored over because output matches demand. This is part of a bigger lean manufacturing approach that saves money by deferring production until an order is received. However, productivity and quality may suffer as a result, and employee morale may suffer as a result.

Most businesses find it beneficial to combine the level and chase strategies. A combination strategy (also known as a hybrid or mixed strategy) can be utilized to better accomplish company goals and policies while also lowering expenses as compared to either of the pure techniques employed separately.

Hybrid Strategy: There is a third option, which is a combination of the first two. This maintains a balance between production pace, labor, and inventory levels while yet responding to fluctuating demand. This option provides some flexibility in order to meet demand while keeping production costs low.

Why Aggregate Planning?

Aggregate Planning's purpose is to determine the quantity of production, inventory, and labor required to respond to variable demand in the medium term. With this data, a company can predict when demand will increase or decrease, and ensure that it has enough products on hand to match the need.

Resource Management In other words, you're working on resource allocation for the short term. This lowers the risk of overproduction, which wastes resources, lowers costs, and can lead to oversaturation of the market for your goods. You save money on labor and materials by limiting production during periods of low demand.

Cost-cutting Aggregate planning assists businesses in achieving their financial objectives and improving their bottom line. It allows for the most efficient use of existing production resources while fulfilling customer demand and reducing customer wait times, as well as lowering the cost of stocking extra inventory.

Requirement of good data However, aggregate planning forecasting isn't a panacea. The data you collect (and the people you use) to forecast are only as good as the data you collect (and the people you utilize). People are biased, and they can misread economic data or utilize erroneous forecast models as a result of their prejudices.

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There are also always unknowns, such as material price increases, new policy implementation, and shifting interest rates. Not to mention labor; changes in labor circumstances might increase employee dissatisfaction.

Conclusion: Making projections allows the company to avoid making last-minute changes to its manufacturing schedule, which is not only costly but also insecure and uncertain. Therefore, a fairly accurate medium-term projection of demand and capacity using aggregate planning can be constructed.

Manufacturers can also use aggregate production planning to figure out how much employees, materials, output rates, timeline estimations, and budget prices will be required in the process.

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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 “ConstantChange 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.

SHRISTI SHARMA JOINT SECRETARY - KORE Club Kaizen – IBS Hyderabad Batch 2020-22

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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.

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