Volume 11 Issue 1 July 2014 Pages 76 `100
g n i r e w o a p i d n Em I n i s E M S Encourage SMEs for a better India R Srikrishnan
Improve Basic Infrastructure in Industrial Areas Maninder Singh
Technical Upgradation: Indispensible Need of the Hour Anil Mankad
Innovate and Embrace technology Dr Mukesh Agarwala
SMEs are now fast adapting to the Lean Manufacturing Model Viren Joshi
SMEs should focus on quality and timely deliveries P Prasanna Kumar Rao
My Journey as an Entrepreneur A S Shetty
A Journey of SME in a life cycle Avinash Chabukswar
SMEs are a Way of New India Sam P Cherian
Anniversary
Cost and Flexibility: Advantages enjoyed by SMEs Nitin Sardesai
“Never Give-up and Be Ready to Change” Surendra Kumar July 2014
SMEs Driving India’s Growth www.martupdate.com 1 C M Nagraj
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Human life is unpredictable. During the childhood, we pine for the unquestioned freedom our elders enjoy and when we reach that point, the stage reaches its climax. Here, we don’t want to take the responsibilities up and instead, we try to become a child once again to enjoy the innocent’s earth to the fullest. Today at MART, we are lucky to be 10! With this July edition, we are publishing the first edition of our eleventh year, and the last ten years was our stepping stone to understand and know more about the Indian
Foreword
Hi Readers,
engineering and manufacturing industry. We are not different from a ten year old child, who is looking up to this wonderful world full of creation and knowledge. His brain grasps whatever surrounding him and always ready to explore new avenues to grow further. With MART, we are enjoying this quest for knowledge with our readers. It’s a great feeling to feel young at heart, because it gives you the humbleness to learn and excel in life. It was after eight years of my work experience I ventured myself as an entrepreneur with publishing “industrial business MART” in July 2004. In 1996, I started my journey as a Sales Asst with Ankay Associates Pvt Ltd, New Delhi dealing with office automation products, enabling me serving Business Press, further opening the doors of Media industry as a sales executive in charge of India’s first ever successful industrial products magazine – IPF. From IPF to Purchase, Lakshmi Precision Screws Ltd and finally at Rashtra Deepika Ltd, I cleared my entrance exam to get an admission as an entrepreneur with MART. Now with one of the longest courses in my life, with hundreds of arrears to be cleared, my dream of graduating as an entrepreneur continues.
industries. We ourselves are a small enterprise and there are hundreds of challenges we go through in our every day work life. Therefore, when finalizing the cover story for the 10th Anniversary edition, we never had a second thought about featuring stories about Empowering SMEs in India. Entrepreneurs face different challenges every day, the problems and solutions almost the same. We, being a publishing house in the
Hari Shanker Managing Editor
Almost 60% of our readers are from the small and medium scale
service industry, have identified a lot of issues our business associates go through. No one will disagree to the fact that SMEs in India have a lot of opportunities, if genuine collective measures are taken from all stake holders. We thank all the industrialists, editorial advisory members, MART Team, Aditi, Hiya, advertisers and a lot others who extend their hands unconditionally to get this issue out in time. Finally it’s you who brought MART to this stage and we owe our growth to you. We wait to hear from you. Till then keep updated with the recent manufacturing happenings reading MART online! Cheers & Signing Off.
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COVER STORY | EMPOWERING SMEs IN INDIA
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SMEs are now fast adapting to the Lean Manufacturing Model Viren Joshi
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SME’s should focus on quality and timely deliveries
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My Journey as an Entrepreneur
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A Journey of SME in a life cycle
P Prasanna Kumar Rao A S Shetty Avinash Chabukswar
SMEs are a Way of New India
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Sam P Cherian
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Nitin Sardesai
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Cost and Flexibility: Advantages enjoyed by SMEs “Never Give-up and Be Ready to Change” Surendra Kumar
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SMEs Driving India’s Growth C M Nagraj
Encourage SMEs for a better India R Srikrishnan
Improve Basic Infrastructure in Industrial Areas Maninder Singh
Technical Upgradation: Indispensible Need of the Hour Anil Mankad
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Innovate and Embrace technology Dr Mukesh Agarwala
SMEs Empowerment through Big Data Analytics Rajesh Angadi
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Managing a SME in India P S Satish
Volume Issue112July June 2014 Volume 10 11 Issue 2014 Annual Annual Subscription Subscription `1200 `1200 Member Member INS INS Editorial Advisory Board
A S Shetty Saravjit Singh Manoj Kabre P S Satish J R Mahajan LD Bhakre
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Sandeep Hingne
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Edited, Printed, Published and Owned by Hari Shanker A G and Printed by him at Lotus Printers Private Limited, No:32/25, 2n Bangalore – 560 043. Industrial Business Mart is a monthly journal published from Bangalore. Views and opinions expressed July 2014 Industrial Business Mart reserves the right to use the information published here in any manner whatsoever. While every eff employees accept any responsibilities for any errors or omissions. © All Rights Reserved
Columns 48
Improving Productivity in R&D: Current State Value Stream Mapping Saravjit Singh
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Leadership Crisis – Are you Talent ready ?
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Corporate Mart
Pavan Sriram
Feature Article 56
New Schmalz Nozzle Technology for Efficient Vacuum Generation Versatile construction kit for robotics
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Managing Editor Hari Shanker hari@martinfotech.in Editorial Team Editorial Assistant Viju Nair editor@martinfotech.in +91 9038 002340 Creative Assistant Sayan Chaudhari martcreative@gmail.com Circulation & Subscription Circulation Manager Benoy Syam Krishna cm@martinfotech.in +91 9947733339
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COVER STORY | EMPOWERING SMEs IN INDIA
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SMEs are now fast adapting to the Lean Manufacturing Model Small and Medium Enterprise have enabled the country to achieve considerable industrial development and growth, accounting for 40% share of the industrial production and over 35% of the manufactured exports. In terms of employment generation, the SME sector is next to agriculture, employing approximately 14 million people. Thus the SMEs play a vital role in structuring growth in the manufacturing sector of our country. Lean Manufacturing: One of the key strength that medium enterprises aspire is to become proefficient in Lean Manufacturing. Lean Manufacturing is inspired by the Toyota Production System and is a set of principles & business processes which improves the “Order – To – Cash”. To me Lean Manufacturing is an organizational system that focuses on continuous flow within supply chain by eliminating wastes and performing continuous improvement towards production perfection. This helps in identifying and eliminating waste in the manufacturing and business processes, creating value for our customers by offering end to end cost effective and innovative solutions with focus on Quality, Cost, Delivery, Safety & Environment. There are seven popular wastes in the manufacturing process, which do not add value, they are WE DO PIT, i.e. waiting, excess motion, defects, over production, (over) processing, inventory & transportation. LM can be applied to all industries and is a very strong tool to help create a cost competitive organization capable of performing well in the demanding local and global environment. LM has been successfully implemented mostly in large organizations. The increasing demand
on quality products, exacting customer standards and highly capable business processes should encourage SME’s to implement LM. This implementation results in reduction of inventories, lead times, improved productivity, knowledge management, speedy product development and development of robust processes besides engineering & design skill sets, global customer relationships, international business practices and compliances, and an excellent highly skilled team. Mechanism of Lean Manufacturing: The systematic implementation of Lean Manufacturing can yield huge benefits such as quality improvements, productivity improvements, improved lead times, reduction in cycle times, set-up time, inventories, good responsiveness and a clean & safe visual work place. There are the three pillars of Lean Manufacturing. I Pillar – Just In Time. We produce what, how much & when the customer wants, while using minimum resources. This is the principle of JIT1. Pace to Takt Time – All our cells work with a Takt time concept. The production is matched with the customers’ demand. Line balancing was introduced in order to make the processes lean and productive. In case of fluctuations in demand, the Cycle times and work force on the cells
Viren Joshi is Chief Executive Officer and President of Sigma Electric. He has over 30 years experience in leading engineering companies in India, Asia, MEA and Europe. He set up Parker Hannifin operations in India and over 15 years, led it to a leadership
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position. He has wide experience in growing new businesses from Start Up and Managing Performance at large engineering MNCs. The Shop floor and office is a reflection of the Management. He is a keen practioner of
Viren Joshi
are planned very efficiently. 2. Concept of flow production (Single / One piece flow) – In order to reduce the lead times we have reduced our batch size of material flow. For e.g. the batch size reduction is achieved from 1000 to 100 pieces, by using lower capacity bins. We recently eliminated excess transportation for material handling by creating an opening in the common wall between our foundry & machining stations. This eliminated the transportation of material and excess motion by 100%. We are now horizontally deploying such actions across all our manufacturing plants. 3. Pull System – We operate with a weekly customer pull model, which is then converted into a daily plan and pull is created. II Pillar – Jidoka– Focus is on immediate response to abnormalities. All our manufacturing cells have in-built mistake proofing (Poka-Yoke) i.e. to produce right at first time ensuring quality and reliability Our manufacturing facilities and offices practice 5S. To support JIT, we have Kan-ban, for internal & external suppliers. We have implemented direct on Line (DOL) where our suppliers after decided frequency, visit us & replenish the boughtouts. III Pillar – Production Smoothing (Leveled Production) is standardization of work, which reduces variation & help us plan our
Lean Enterprise, Policy deployment/ Balance scorecard and talent development. He has received a National Award from The President of India, for an essay on Alternate Sources of Energy. He has attended global
programs on Leadership, Change Management, Balanced Scorecard, TalentDevelopment, and Mergers & Acquisitions. He was Chairman/ Vice Chairman of CII, Fluid Power division. For further details visit www. sigmaelectric.com
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Lean
5S Facilities
operating conditions and requirements. This approach minimizes the financial and employee commitment and will lead to faster & definitive success. The practices that we have implemented and that I would recommend to start with for SME’s include JIT, 5S, Kanban, TQC, Flow Production, multi skilled employees and uniform workload. We would welcome SMEs to visit our facilities in Pune & Jaipur to witness our efforts on lean implementation & also would appreciate suggestions for further improvement.
5S Facilities
Poka-Yoke - Tap Breakage
Challenges: The initial challenges that we faced were availability of resources such as freeing people from their hectic production schedules for training & LM implementation. Proper understanding and utilization of lean tools and horizontal deployment across plants, and allocating funds for improvement were subsequent demanding challenges. Apart from these, the biggest challenge we faced was the introduction of a new culture of change management. Managing Change:
Poka-Yoke - Safety
Lean Cells – Concept of Flow Production
Automation
production effectively to overcome the challenge due to fluctuation in demand. This resulted in achieving our on-time deliveries =>95% Practices in SME’s: I think SMEs do not need to implement all these practices at once but the start must be with 5S.It is advisable to run a few relevant lean practices, to suit the SMEs July 2014
I believe implementing lean manufacturing in any firm is not an easy task and most employees resist changes, and feel comfortable and complacent that the system in its present state is the best. Remove the fears; or make not moving forward the more fearful choice. Many people think lean means cutting staff, whereas in reality, it’s all about working smarter to preserve the work force. This is a cultural problem that needs to be addressed by the company. Change management programs play a vital role in making the transformation successful. Some of the key strategic moves for managing the change are: Discuss the proposed changes with employees/ associates Display status updates in the area of change Walk through a mock round on change
LEADER SPEAK “Small and Medium Enterprises (SMEs) have played a vital role in India’s economic growth; no wonder they lead innovation and entrepreneurship across the world. They are the source of great invention and play a crucial role in any country’s economic prosperity. The scenario in India is quite similar. The burgeoning importance of SMEs in the manufacturing sector is due to their significant contribution to the key factors of the growing Indian economy by contributing 45% of the industrial output, 40% of exports, 42 million in employment, create one million jobs every year and produces more than 8000 quality products for the Indian and international markets. The importance of SMEs in manufacturing sector is mainly due to the quantum of units that fall in this category, forming 90% of the total industrial units in this country. Government is taking several steps to boost manufacturing sector growth as it would lead to job creation and boost the country’s economy. Though it has all potential to expand further but the major hindrance in the expansion of SMEs is the unavailability of sufficient and timely funds to finance their growth plans, archaic labor laws and lack of a system or a body that can combine the potential of these SMEs in real time. Hence with the present Government, it should strive to create a favourable
Explain the new changes and benefits identified with the employees/ associates
environment for SMEs and address each
And then Back off and let them talk, rationalize, try it and again talk about it Soon, people started realizing the essence
Dr T S Shivashankar
one of these issues.”
VP – Operations., INDO-MIM
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Kan-ban, Visual Management
2 S Place for everything, everything in its place
Visual Management of Spares
Visual control of molten metal temperature
JIT – Kan-ban/Supermarket
of lean manufacturing and learnt that Lean was really helping them to get rid of the waste & extra work that they were performing; and it made their work life easy and healthier. Sustaining Improvements: Though improvements can be seen only after managing the change in SME after implementing lean Manufacturing but the improvements has to be sustained. Sustaining improvements & continually improving will evolve from an effective & efficient performance management system. Sigma is a strategically focused organization where resources, systems and employees are aligned to our strategic objectives & priorities. The key strategies & objectives are captured under Balanced Scorecard process. These strategies
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are linked to the budgets, prioritized & converted into targets. Select major breakthrough projects are identified as game changers, where we focus a lot of our attention. Strategies after finalization are cascaded to the teams & every member of the organ ization is aligned with the department & individual goals. These are tracked on an in-house developed e-PMS software platform & performance reviews are conducted regularly at the organization.
The key Lean Manufacturing initiatives that we implemented are: • 5 S implementation in manufacturing plants and offices – Achieved 5S Score = 3.5 on 5 point scale Aim to exceed 4 in the next 6 months • Productivity improvement through waste identification & elimination – Improved Productivity by 30% • Set-up reduction in Foundry & Machining
My Advice to all the SMEs is to implement Lean Manufacturing. I do believe that the Indian economy and global markets will continue to face a VUCA environment (Volatile, Uncertain, Complex and Ambiguous) for many years.
stations –
SMEs need to prepare themselves to face this global situation. I strongly recommend lean manufacturing is an excellent management technique to improve performance. Securing the full benefits of lean manufacturing requires the organization to concentrate on their whole value chain by implementing comprehensive lean tools.
achieved 99% in retail sector
Benefits:
Space reduction achieved = 30%
Lean manufacturing produces higher levels of quality and productivity and better customer responsiveness. SM E’s could strengthen the internal capability by appointing a lean management representative/ lean champion, who would oversight, the lean process and training. A smart partnership between supplier and customer in leanmanufacturing could benefit both partners. Message: Lean is a cultural evolution of the company to create continuous improvement. Thus to implement Lean, you need a cultural revolution. Lean is not just Manufacturing or Inventory. Lean Enterprise covers the whole organization. Change will not have occurred until “Lean is the way we do things around here”. Empowerment to all the employees to eliminate process waste (up to 60%-90% waste) through Kaizen participation and visual controls. It is all about empowering people throughout the organization, to execute change in workflow process. The Shop floor and office is a reflection of the Management. Lean Manufacturing starts and ends with each individual’s
Improved set-up time by up to 60% • Inventory reduction in entire value chainReduced Inventory by up to 50% • On Time Delivery Improved from 80% to over 95%; and • Freight out cost optimization by replacing wooden pallets with substitute sheets – Increased container volume by 15% - Go Green Initiative • Yield improvements for dies with yield less than 50% Achieved Yield =>40% for all dies / tools • Space reduction – • Managing Abnormalities – Visual Management, Kanban and Direct On Line (DOL) – Reduced Stock-outs to Zero • Six sigma implementations for critical quality issues – Improved quality for critical products by 15% • Shop Floor Kaizen Breakthrough Methodology - Design for Lean Sigma – Flow Improvements – over 1000 kaizens have been implemented since 2002. • DMI – Daily Management of Improvements implemented • LST – Lean Standard Work Implemented • Poka-Yoke on manufacturing cells • Autonomation in manufacturing cells reducing operator fatigue & improving productivity • Backward integration – In house alloying in two of our manufacturing plants Improved Melting Cost by 20% • Automation / Robots for de-burring – for critical products where visual quality requirements are stringent • Electric furnace for energy cost optimization – Reduced Energy Cost by 15%
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sense of Accountability. It instills a culture of execution through disciplined tracking methods using the Balanced Scorecard. Lean requires accelerating the cultural change on top leadership talent. Lean Enterprise is arguably, one of the best tools available today, to improve financial performance and customer service, leading to unlocking organizational value, considering the uncertain environment today and in the future. I believe Lean Manufacture will prosper only if the leadership retains a sense of Lack Of Satisfaction & hunger for more out of the SME’s. Sigma Overview: One of the many SME of the country is Sigma Electric. It is a medium size enterprise with a workforce in excess of 3,000 employees of whom more than 300 are engineers; we offer customer services in engineering and design, secondary finishing, assembly, packaging, and supply chain management. It is a leading global manufacturer of ferrous and non-ferrous die-cast, sand-cast, and permanent mold
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metal components and sub-assemblies. It is one of the largest foundries in the world in the industrial (non-automotive) market segment.Nine world class manufacturing plants in India with state-of-art tool rooms enable Sigma to provide customers with fast turnkey solutions in a wide array of materials, including zinc, aluminium, steel, iron and copper alloys. Our product range includes intricate, high precision machined castings for varied applications. Since we manufacture all of our tooling in-house, we provide a very secure environment for intellectual property. We have engineering services, experienced sales & marketing team, an excellent warehouse and distribution facility located near Raleigh, NC USA, which allows us to efficiently service our North American customer base. Sigma serves diverse industries such as electrical, power transmission and distribution, appliance, oil and gas, Construction, industrial, telecom and instrumentation sectors. Global customers include Eaton, Hubbell, Siemens, Emerson,
ABB, Whirlpool, Electrolux, Endress +Hauser, Stanley Black Decker, Timken, Lowes, Crompton etc Lean Manufacturing Implementation in Sigma: For successful implementation of LM, Sigma concentrated on all the internal processes and ensured employee involvement & participation through training. Initially, Sigma used Value Stream Mapping (VSM). All processes from order receipt to accounts receivable were mapped and analyzed. This helped us to identify the wastes and potential areas, processes & elements for improvements. We focused on process improvements that had a lower financial investment such as 5S, Kanban, Set-up reductions, preventive maintenance, quality circles and employee involvement. Creativity before capital is the theme for Lean Manufacturing Implementation; we have started our Lean journey 12 years ago with the help from international lean consultants & will continue the journey to be one of the world-class Lean Manufacturing enterprise.
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COVER STORY | EMPOWERING SMEs IN INDIA
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SME’s should focus on quality and timely deliveries There are many areas where larger companies may be uninterested. These are areas with lower quantities and revenues where a large company could find the operations unrewarding. On the other hand an SME may find it rewarding enough to put forward the required efforts. Also in areas where custom built designs/ products are involved, an SME would be more interested than a larger company. Therefore SME’s play a very important role in the Industry.
The main problems in the start-up are obtaining finance and after that establishing a market. Establishing a market requirespersistence and perseverance and we were able to do this in the course of the first two years at Heidelberg Prominent.The day to day challenges are maintaining the desired levels of quantity especially from suppliers and ensuring that the production targets are as per schedule. In a SME a great deal depends on the CEO, compared to a large organisation. He has to be a real all-rounder with expertise in marketing, finance, production, man management and all possible areas. It is a very challenging and demanding job. For retaining talents the administration has to be professional and impartial. Individuals have to be given a congenial atmosphere and freedom to perform. These have to be matched with decent remuneration as per the Industry norms.With these guidelinesit is possible to retain talent in SME’s We have been fortunate that we have been a cash surplus company and have no borrowings. Although payments are delayed, these are followed up closely until the payments are collected. This approach has helped us. Financial institutions approach was very satisfactory during our
initial periods. Regulations regarding imports, taxation etc. have to be further liberalised to make life easier for SME’s. For example collecting the ‘C’ forms itself takes away so much of our productive time every year. If a customer fails to give a ‘C’ form we are unfairly penalised. It is high time the government takes steps to remove such pin pricks from the Industry. Its often said about different schemes Government brings to support the SMEs but we never came through any such benefits as on today. The SME’s should focus on quality and timely deliveries. With these the opportunities can be great. Unhealthy competition , fluctuating markets etc. are the likely threats for SME’s. Training is as important in SME’s as in any other sector. SME’s can focus on specialised markets and devote more time to development focussed on individual requirements compared to larger companies. It is their strength. My suggestion for the young entrepreneurs would be “be quality conscious and proud of what you are doing. Try to be honest and fair to all concerned - suppliers, employees and customers”.
Mr. P. Prasanna Kumar Rao who has been associated with ProMinent in India from the beginning is the Managing Director of Heidelberg ProMinent Fluid Controls India Pvt Ltd. Mr. Rao is one of the pioneers in the field of Dosing Pumps and Controllers in India and is instrumental
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P Prasanna Kumar Rao
LEADER SPEAK “The growth of any large manufacturing companies are partly connected with the growth and existence of small and medium scale vendors. With global procurement opportunities and setting up of new manufacturing facilities in India by the multinational OEM’s there are a huge avenue for small and medium scale manufacturers to start up or enhance their current capabilities, in turn boost the economic growth of our country.” Antony Kurian Managing Director, igus India
in launching international
GmbH, Germany who
quality ProMinent products
are the world leaders
in India. He established the
in the fields of Dosing
market, production facility
pumps, Controllers, Ozone
etc in India for Heidelberg
Generators and Allied
ProMinent.
Equipments.
Heidelberg ProMinent Fluid
ProMinent has been in
controls India Pvt. Ltd., is
India from 1986 in the
a fully owned subsidiary of
form of a Joint Venture
ProMinent Dosiertechnik
Company. In the year 1997
ProMinent started its own subsidiary in an effort to be able to transfer the latest technology to the Indian market and to be able to invest more in the Indian operations. Heidelberg ProMinent is now the leader in its field in India with exports to many countries. For further details visit www.prominentindia.com
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COVER STORY | EMPOWERING SMEs IN INDIA
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My Journey as an Entrepreneur Sedvik Industries was established by me in the year 1986 with one lathe machine and two employees in a rented shed. The purchase of lathe was financed by my banker where I had my personal account. It has now grown into a bigger establishment with a good reputation for the manufacture of Rollforming machineries in India. Before starting the industry, I worked in West Germany for about eight years and thereafter for about twelve years with multinational companies in India. I am a mechanical engineering graduate from IT BHU (now IIT BHU). All along my experience was mainly in the field of Machine design, especially in the area of Rollforming which is fairly a recent developing technology in India. Still, in India we have to do a lot of catching up to reach the level of development in the advanced countries. When I started the industry, Rollforming technology was in the very initial stages of development in India. The concept and awareness of rollforming itself was not so well known. Further, the easy availability of raw material steel i.e. slitted coils in the required widths and thicknesses was very difficult. Many of my well wishers advised me against venturing into this field of rollforming. Added to this, starting a small scale industry itself was difficult in those days. There was license- raj, quota- system for procuring steel and even cement in India those days. Getting telephone
connection used to take at least three years and electrical power sanction/connection used to take about 8 to 10 months. Because rollforming is a material saving, labour-saving and space –saving technology I was confident that if I could survive the initial starting years with hard work and austere way of working, I should be able to make steady progress in the years to come. Because I liked the technology I was fully prepared to devote myself for the development of the technology. Based on our Project report our company was alotted half- acre plot in the Peenya Industrial Area 4th Phase, Bangalore. The undersigned will enumerate the methods he adopted one after another how they went ahead starting and running the industry. Time Management Time management is the very essence of any Project. We had two alternatives i.e. Start building the shed on the allotted land and go ahead or take a rented shed preferably with power connection and go ahead. We advertised for a
Mr. A S Shetty, a mechanical engineering graduate from IIT BHU and a Post Graduate in Welding Technology from Germany is one of the leading expert in Rollforming Technology in India. Apart from steering the growth of Sedvik Industries Pvt Ltd, he is
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private shed in the nearby area and luckily we settled on a shed with electrical power sanction in a private Industrial Estate. Because of this decision we were able to start production within one month time. Once the production stabilized we thought of building our own shed parallely. Trade Mark- Brand building The first thought was how to name the industry so that brand name was built up in the long run. The name SEDVIK was coined from the first alphabets of my immediate family members. Because we were going to manufacture Special purpose Rollforming machines the Trade-mark was a necessity and hence got duly registered. Recruitment & training of personnel Except me, we didn’t have people who had some previous experience in rollforming or related industry. There was practically no other manufacturer in this field at that time in India. Hence the only way for us was to recruit people without any background experience in this field and train them slowly
also helping companies to promote Rollforming technology as a consultant. In 1986 he established Sedvik Industries with twenty years of work experience in different companies in India and West Germany. As a manufacturer of
A S Shetty
to our specific requirement. Hence more preference was given to persons who were staying in nearby areas. We didn’t want people to waste a lot of time commuting to the work- place. To counter the trend of losing experienced employees with educational background we have been constantly on-the-job-training even employees with lesser educational backgrounds. Design Section For the special purpose Rollforming machine and Toolings preparing design drawings is the most important preliminary stage. I myself being a design and development engineer in this area, thought why not prepare design drawings at a place very near where I reside. Those days, designs were prepared manually on drawing boards. My garage was converted into a fully furnished design office. Advertisements were inserted for part-time design persons who were prepared to work during after-office hours. With this measure, we were able to recruit experienced designers who already had a full-time job. Bangalore has got a good reservoir of design personnel
custom rollforming systems, SEDVIK enjoys a reputation of producing high-end quality equipment. SEDVIK Industries is a strong focused company engaged in designing simple to highly sophisticated roll forming machine to meet customer’s specific requirement. Mr.
Vivek Shetty, with Masters in Mechanical Engineering from Drexel University, Philadelphia and more than eight years of work experience in America joins with his father in India at Sedvik Industries to expand what Mr. A S Shetty started 28 years back. July 2014
LEADER SPEAK “It is needless to say that SMEs play an integral part in shaping the Indian economy. They play a vital role in the country’s Industrialisation with their strategic advantages of promoting Core Competency and excelling in their Domain Expertise and Cost Effective mode of operations. When we look at SMEs in manufacturing sector, they are more concentrated into clusters, compared to service sector. Their relevance in manufacturing is mainly due to the quantum of units that falls in this category, contributing to nearly 90% of the total industrial units in this country. The Indian manufacturing clusters have positioned who were mostly employed in public sector undertakings. The advantage of engaging part-time designers is that, having already a full time job in hand they won’t be inclined to seek a change of job after some amount of experience for better emoluments. Outsourcing Once you have the design drawings prepared manufacture of machine parts could be outsourced anywhere. Only the critical parts and finishing of Toolings were done in-house. The advantage of outsourcing is that of less manpower requirement. The organization could be kept lean. July 2014 April
themselves with a strong footprint in the economy. By forming such clusters they have improved their access to business associations and technical service providers and they can leverage from spatial proximity to a great extent. Some of the nation’s manufacturing clusters have become leading producers in their respective industries; many others account for a large share in exports too. Larger Companies have come forward in the growth of SME’s by imparting knowledge of the latest technologies and sharing the Best Practices Lean Tools and providing the necessary financial support for Technology and Quality Up gradation and productivity enhancement initiatives as a way to add great value. These actions will empower the SME’s to meet the standards of operation and quality standards to strive for global excellence operating systems and processes, to serve their customers for total satisfaction.”
B C Rao Managing Director Kennametal India Limited Out of Box thinking Many of our would- be customers used to ask questions to us where we had already supplied similar equipments. They were not so much bothered what background experience they had and what their qualifications were. It was a “catch 22” situation. A newly established factory couldn’t have supplied any machinery. We were worried how to overcome the situation. There was one customer who showed some interest in placing the order on us. But he was hesitant in taking a big risk on us. We thought for
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LEADER SPEAK “SME sector makes significant contribution to India’s GDP and exports but it is unfortunate that its contribution to the Economy is not only undervalued but also understated. SME sector still struggles to get; timely and cheap Finance, technology, skilled manpower, marketing channels and above all faces bureaucratic hurdles at every stage of operations. Inspite of constraints at every stage, entrepreneurship is flourishing in the SME sector. Look at the number of small enterprises flourishing in small towns and some time and told him that we would produce a machine for which he would have to place order only for the critical
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countryside. SME sector even by most conservative estimates provides employment to over 50 Million skilled and unskilled manpower in the country. SME sector is responsible for almost 35% exports from the country. It is here that the true entrepreneurship and innovation is flourishing in India. SME sector is trying to keep pace with technology, lean manufacturing, Good Manufacturing Practices. But still challenges remain. Unfortunately, successive governments have failed to encourage, nurture and support this movement in India. It is high time that the role and importance of SME sector is acknowledged and the sector is nurtured through Government Policy and Actions so that the already flourishing entrepreneurship becomes a big movement. It will not only fuel economic growth but also help country reap rich social dividends by way of even and inclusive growth.”
Shilpi Goel Founder Director & Principal Consultant, People Resources assemblies of the machine costing about 25% of the total value of the full machine. For the balance part of machine
we would supply him the manufacturing drawings and he could procure the boughtout items like motor, gearboxes, couplings, bearings etc. and get the parts made by competitive vendors and thereby saving a substantial cost. We also told him that we would co-ordinate the whole process and won’t charge anything him for that.
well designed, you maintain quality and your prices are competitive there would be steady progress. As rollforming technology was still not widely known, for creating awareness the undersigned had published around fifty articles in the earlier publications of Industrial Business Mart on various aspects of rollforming technology.
Bureaucracy Bureaucracy in India is working more like a regulator rather than promoter/ facilitator of Industries. A lot of rules are left at the discretion of bureaucrats. They should be more transparent and simplified. A regular, at least once in a month grievance Standardisation redressal meeting between the stake holders and the bureaucrats of higher ranks Being a special purpose should be organized to sort out machine manufacturer, getting the lingering issues quickly. continuous order for machines Our main aim was to get the first machine made so that we could claim that it was working at such and such a place. It was a win-win situation i.e our first customer saved considerable amount of money and we were able to claim that our machine was working at such and such a place.
was not always guaranteed. Because of the earlier contacts while working for multinational companies I received initially some orders. But maintaining this tempo all the time looked difficult. Hence we thought of developing an economical smaller universal type standard machine the range of which was to cover a maximum number of generally required sizes of metal sections. We developed this first version of machine in the same way as described in the “out of box thinking” para mentioned earlier. With this measure we have been able to keep our factory working all the time whether there was immediate order there or not. Marketing
Enterpreneurship It is nothing but problem solving approach. Convert problems into challenges and challenges into opportunities. Have always a positive approach towards anything one encounter. People come from different backgrounds, experiences, ethos, ambitions, character etc. Everybody can’t achieve great success, growth, fame. It all depends on the right opportunities one gets, luck etc. The main thing is that you are able to contribute to your society, your field of activity, people you deal with, have satisfied customers, and have harmonious working atmosphere, emotional satisfaction to yourself and your family.
It consisted of placing advertisements in the right places like technical periodicals, internet, taking part in Trade exhibitions for Metal forming machines etc. But there is nothing compared to word of mouth indirect publicity by our customers, their associates or even their competitors. Further, if your products are
Mission oriented approach Our mission was to actively encourage growth of Rollforming technology in India. There is a lot to be done in India to catch up with the advanced countries in this field. One has to contribute in such a way that you pave the way for the next generation to flourish.
July 2014
July 2014 June 2014
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
A Journey of SME in a life cycle SME’s Role in Indian Industry, SME’s Contribution to Industrial Growth, SME’s Contribution to GDP, SME’s role in creating employment opportunities, are much talked about subjects ever since I was toying with the idea of setting my own enterprise. No one can deny the importance of SME’s in the economic development of our country, but I have serious reservations about the Government’s role as it doesn’t appear to be doing enough to ensure that SMEs are given due credit and are provided with conducive atmosphere to do better. No doubt there are well designed schemes with good intentions but the benefits seldom percolate to the intended beneficiaries like most of the Government schemes. What I am happy about it is that it is a topic of discussion of all politicians & policy makers as it has inherent strength in it. SMEs may have different criteria’s in different parts of the world, but it continues to play important role in economic development is a well accepted fact. The innumerable challenges one faces in starting a SME can be overcome by strong determination & proper guidance in the initial stages. Green Field Project & Collateral Security are the hurdles which will haunt to any first generation entrepreneur particularly when they approach any financial institution. You can overcome them by lot of persuasions, emphasizing the technical strength of your project & constant follow up with different financial institutions. Always more than 100% collateral is asked because it is a green field project. No doubt with a lot of persuasions one can succeed with 60 % collateral but it is your luck. During implementation of the project and even while the unit is operation, every day there is some or the other challenge you have to face & here it is no doubt very much interesting as well as challenging thing for every entrepreneur. One has to take this with positive spirit, then only journey is comfortable. Getting orders, retaining employees, facing different
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Avinash Chabukswar
“Compared to last twenty years, SME’s could expect a lot of oppotunities in India, as Government & other private players are increasing their investment in infrastructure development. Indian SME’s should gear up & grab these opportunities, rather than worried about the current economic conditions. Always think of better future.” Satish D Mutha
LEADER SPEAK
Director, C-Tech Engineers Pvt Ltd
government agencies, executing on time delivery, recovering payments, managing repayments are few of the major milestones one has to clear without developing any bad feelings about it. Yes, taking risks & continuous R&D has to be a inherent part of any SME as it is basic instinct possessed by every SME without which SME can not survive rather it only survives because of the said ability. I always argue with all financial institutions about this & till today I am unable to take them on bard on this issue. Major R&D work is occurring in SME sector only, but it is not acknowledged. No financial institution has any method of reimbursing /financing for this. These expenses are to the tune of 2% to 4% of one’s turnover & one has to do it with his own contribution only. No financial institutions funds these but only question the spending as it adversely affects profit margin.
I am in business since 1983. In those days we used to experience downward tide once in 10 years. Now the things have become more challenging. Things have become more unpredictable. World has become a global village. Whatever happens in one part of world has effect on one’s business. One needs to constantly evolve strategy to keep afloat. The basic principals if you go anywhere in the world are same, only the style differs based on category. Order book strategy, Production & Quality Management. Manpower management, Finance management, Innovation are the major key factors, one has to decide and formulate strategy keeping type of one’s business in mind & religiously follow it. It is easy if it is proprietary concern. In case of partnership / Private limited, then decision has to be taken by all partners unanimously & followed by all with leadership of one
till 2000. He started C-Tech
Avinash Chabukswar studied
Of India , Done Marine
& running of cold draw
BE Mech from COEP Pune
Engineering. Thereafter
in 1976. After serving for
he worked as a Works
plant. Thereafter he worked Engineers Pvt Ltd with Satish Mutha & Bhaskar Kulkarni as a Director Speedicut
one year at Ex Cello India,
Manager with Balaji Tubes
Small Cutting Tools Pvt
he joined Merchant Navy in
Pvt.Ltd. at Ahmednagar
Ltd & Basic Tools Pvt Ltd
1977 and worked till 1982
and was responsible for
engaged in manufacture of
For further details visit
with Shipping Corporation
errection , commissioning
H S S Special Cutting Tools
www.ctechengg.com
in Pune in 2001 & continues working as a Director.
July 2014
person by keeping aside all their ego. EGO is a such a thing which has ruined many good companies. It is a curse to all technical people in our industry. I have seen in majority of the cases, people could not stay together for more than 10 years especially in good running companies. In family run business, if the inheriting person is inefficient, it can spoil the team as well as spoil atmosphere. No doubt industries are run but the growth in relation to investment & ROI are always at stake. When we discuss about opportunities & threats SMES are facing, they are the highest. Once you have developed a infrastructure in the form of a good team, good quality, good systems, many new customers will come to you & fall in love with you because you are the only type of supplier who can supply quality goods in time at lowest possible cost. However one has to be ready to face many threats. Everybody now wants a fastest delivery with lowest cost & Best Quality which is worldwide requirement & you cannot grow without that. To achieve this & maintain, you need to be on toes and work very closely with limited sources. Your expectations from your team may be high but the team you have put in place during your growth faces limitations. Identifying, retaining talent has bearing on the financial muscle of your company. Again Chicken & egg theory comes in to picture. Nobody could have imagined that there will be shortage of skilled labor resulting in increased wage levels in India. Cheap and highly skilled labour was basic strength for getting orders for Indian Companies from European companies. Today people are having machines but getting operators is also a problem. So machines are idle because of non availability of skilled labors. On the other hand there is a cry that lot of people are unemployed in India. Where all these people have gone suddenly? No doubt there is a tremendous requirement of proper manpower training at every skilled level & Government & Industry should do this jointly by proper co ordination. Every Industry should contribute to this by way of offering free availability of their trained persons to interact with training institutions as ITI & polytechnic as well as Engineering Colleges. Constant interaction of Education institutions & Industry by way of students visits to industry will definitely increase quality of people coming out of these institutions which can take immediate responsibility of work after joining. Many big companies are ready to July 2014
“Growth and Performance of SME sector is vital to the economy of our country. There are many challenges to the SME sector and the major issue in my opinion is that of man power with the right skills. We have to provide the inhouse training to acquire the required skills. It is also necessary to dedicate the resources for continuous R &B D and innovation so as to compete and survive in the market. It will be a good strategy to cooperate with SMEs from abroad on Technology & Marketing. There is huge opportunities for SMEs in India and it is up to us how we tap the same.”
LEADER SPEAK
Mohini Kelkar Managing Director, Grind Master Machines Pvt Ltd
give you orders but they insist on spending lot of money on your infrastructure, systems & Training. So it becomes integral part of your organization. No doubt it is beneficial to you also to train people but threat of turnover of trained people is also another aspect one has to consider. Technological up gradation limitations is also a one of the threat to SME’s but one has to add at least one new machine no matter it is second hand also so that people work with you will know that what is with you is not final, will feel proud to get training on new machines with improved technology. As far as getting finances is concerned, our banking system has typical mentality towards SMEs. When you are in need, the fund flow will shrink. One has to learn not to expect help when it is needed most. This is also another threat to any SME. The only solution appears to be stricter financial discipline which only can help survive from disaster. One thing all new enterpruners should keep in mind while facing all these opportunities & Threats is he should remain cool, because:• You are generating highest employment in India • You are contributing to 22% of GDP • Your are instrumental to close foreign exchange gap • You are most Innovative community in the world as far as production techniques are concerned with limited source • You Are The Best Part Of Society . Be proud of this and remember one thing that you should always try to work without any government incentives. If you get it, it’s a surplus but do plan all things without that. There is a very bright future for this sector in coming years.
These are my thoughts after my journey of 38 years in the Industry. I hope they are useful for new entrants. I will like to conclude with few words of one of the entrepreneur & friend of mine, who is doing a very good work for Social Corporate Responsibility for young & budding entrepreneurs. He always says everybody should remember 5 P’s. • Purpose • Principles • Planning • Practice • Patience As an entrepreneur you need to remember that whatever you earn in your life remains here, you can only benefit till you are in this world. What you are doing is as a custodian of nation’s wealth. There is something beyond this & that is what you do for your society & your nation. Without this PURPOSE your wealth is useless. When you are not making money, you are frustrated But when you get a lot of it, you do not know what to do. This is also frustrating. Earn money with certain PRINCIPLES. PLANNING is required to achieve this goal. Without PRACTICE, planning is of no use. PATIENCE will help you throughout your journey. Manufacturer and Exporter of precision machined components & parts of excavator, C-Tech engineers Pvt Ltd was established in 2001 by technocrats with two customers with 10 lacs turnover for export only, has grown with export to 15 countries with 14 cr turnover. Present turnover comprises of 30 % Domestic & 70 % Export. The company is having good machining expertise with state of the art machinery for turned, milled & ground components. C-Tech Engineers Pvt.Ltd. has got consecutive 7 export awards from Engineering Export Promotion Council As a ‘’ Star Performer in “small scale category”. www.martupdate.com
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
SMEs are a Way of New India The small and medium enterprise sector is regarded as the engine of the Indian economy and they play a vital role in the country’s development. Contrary to common perceptions, SME’s are leading the way in innovation, competition, efficiency, productivity, and operational flexibility. They are clocking astounding growth rates, globalising their operations, establishing their own brands, and have come to be recognised as a formidable force in the Indian growth story. Today 40% of India’s work force is employed by SME’s and they contribute for about 45% of the industrial output. SME’s produce quality products for the Indian and International market and account for about 40% of the total exports.
A recent study suggests that nearly 60% of Indians possess strong entrepreneurial qualities, optimism, business-mindedness and persistence. Yet most young people are hesitant to take the entrepreneurial route. The lack of government support, funding options and bureaucratic potholes that ensure that a good number of early days are spent running from one department to another to get the necessary permissions in place prove to be a hindrance to the entrepreneurial spirit. Poor infrastructure, electricity shortage and corruption also dissuade many people from taking up the entrepreneurial route. I think the education system needs to be reformed which is now held within rigid boundaries, one that prepares students to take up traditional employment rather than instilling the confidence to do something that one likes. Considering the current economic situation and dull global demand, we hope that the new government would provide some kind of incentives to the manufacturing companies to facilitate their growth. The sector has not been performing well for quite some time now and it requires urgent nourishment. At the same time they should also pay attention to the long-term needs of SME’s,
particularly in terms of infrastructure and investment.
and a lot of skilled manpower is readily available.
Below are some suggestions for innovative policies and reforms which can be adopted by the government to give a fillip to the economic performance of the country.
• The state should also look to making itself energy sufficient by planning and providing clear policies to achieve the same. The policy should include the advancement of renewable energy in a sustainable manner. Smart metering and small distribution areas will lead to transparency and improve electrical energy accounting.
• The State government should have a department for innovation that is empowered to recommend policies and reform based on solid research. It should be supported from the highest level of government to ensure adoption. People that implement good policies and reforms should be then rewarded and promoted. Policies that don’t work in experimentation stage should be reworked or scraped to achieve the best possible results. • Infrastructure and power are two major areas of improvement that the state should focus on which would have direct impact on economic performance. • The Government should focus on reviving the manufacturing sector by encouraging investment, increasing investor confidence, Incentives and tax holidays. A special focus for industry involved in technology and IT should be made as these are high growth areas
Mr. Sam P Cherian is the main investor and the Chairman of ElMeasure. Sam, a young and dynamic professional with a keen sense for business and a vision that goes beyond economics and translates into corporate and
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Sam P Cherian
With the Indian economy opening up and with easy access to latest technology SME’s are now tapping into newer markets to market their products. With a strong government in place and with stable polices SME’s are geared for new growth trajectory in the coming years. As part of our growth plan, ElMeasure has now diversified into Building Energy Management and offer wireless solutions for lighting, battery, water, HVAC control etc. We have received many enquiries for BMS, street light controlling and water management and most of them have been successfully executed. A partnership is being forged with another Bangalore based company to provide a wider range of wireless products under the brand name of CLEON (Clean energy
social responsibility. His
society. Elecon under the boasts of 4 manufacturing experience includes heading brand name ‘ElMeasure’ is units and staff strength a USD 5 million company a leader in providing energy of over 300 employees. ElMeasure has made it a in the USA prior to joining management services, point to bring new and ElMeasure. offering a wide range of innovative products into the products to suit diverse Elecon Measurements was market to suit the needs of energy management needs. our diverse global customer founded in 2004 by a small Today ElMeasure is an team of entrepreneurs base. For further details visit international company that www.elmeasure.com with a vision to serve the
July 2014
and beyond).A growth strategy has been plotted for ElMeasure for the next five years. Vertical Integration, acquisitions, product development, and new horizons in product offerings are part of the plan being designed for the future.
The growing importance of SMEs, which account for about one-sixth of India’s total GDP, is manifesting itself in various quarters of the economy. Government is trying to push it forward with a number of plans to
At present I feel there are more opportunities than threats for SME’s with the new government voicing support and intent for an efficient and effective implementation of policy initiatives. The positive vibes from the government is a big encouragement for the sector but the forecast of a poor monsoon and the current situation in Iraq with the rising oil prices do pose a new threat. During the recent bad patch of slow economy, ElMeasure has utilised the time to design several products which are the demand of tomorrow. Prepaid meter or ABT (Availability Based Tariff) meter could be the future preferred measurement/ control and hence that have just introduced it in the market. Though Prepaid meter is not common in India, several advanced countries have adopted this technology in order to map
July 2014
foster technology, innovation and quality in SMEs. Banks have joined hands with private players to create a rating agency focused on SMEs in order to improve the credit disbursal to them. Gautam K Ahuja Managing Director
LEADER SPEAK
the energy distribution or find the loss / theft by collecting the data through wireless solutions. Apart from the advantage of collecting the payment in advance, service providers can decide the demand levels based on available energy at grid making the
Dormer Tools India Pvt Ltd
demand level variable depending on the availability of power at the grid. Our prepaid meter is designed for dual source (EB and DG) and can integrate Gas and Water along with electrical energy. ElMeasure’s focus on quality products and innovative solutions has catapulted
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LEADER SPEAK “Retaining talent in SMEs is a challenging task since most youngsters are enamoured with MNC jobs though they do not get enough exposure there. We recruit the best students from the best colleges and then put them through intensive class room and practical training. They are given a road map on what skillsets they have to acquire in a given time frame. They have to undergo several online courses and take quizzes. The top notch training given by us helps us retain talent and young engineers are always challenged on the job in our organization. Periodic appraisals let the youngsters know how they are faring and fast learners are provided rapid career advancement. We invest a lot of effort in building our Learning Management System and that has paid us rich dividends.” A K Menon Director, Strategi Automation Solutions Pvt Ltd
us into the global stage. We now have a strong presence in over 30 countries which includes Japan, USA, Canada, Latin America, Africa, Gulf, and South East Asia etc. As part of our global expansion we have set up a sales office at Sharjah, UAE to drive and expand our sales and dealer network across Asia and the African continent. Our story will inspire many Indians and I am proud to share our success story and our humble beginnings. Few months prior to October 2004, three young engineers from three different religions, sat together and discussed beginning a company and the principles by which it should be run. I
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personally only knew Babu TK, CEO of our company, and he expressed their desire to start such a company and mailed me a business proposal, clearly stating the purpose and a detailed road map of the company with a definite 5 year and 10 year plan.
and actions to become stronger. Our determination and our hard work put out products and features like the intelligent earth leakage relay, power distribution system, analog input/output, digital input/ output and a host of other products and features that were a first in India.
I was managing a company at Chicago, USA and I was thrilled at the commitment displayed and desire shown to serve the nation/society through their professional skill, technical advantage with the primary focus being to develop people. I was amazed at the documents they had prepared and the vision they had spelled out. In spite of them not having a marketing or management background, I readily agreed to back them financially on the business venture. The commitment displayed by them was more than sufficient for me to commit and invest. Mr. Babu TK shared his vision with many of his likeminded friends and well wishers and their unconditional support was always available and greatly appreciable and this gave us a good foundation. Formally, on 14th October 2004, we put into motion a company that would strive to deliver products that would help conserve energy, an already scarce resource.
Every year ElMeasure has made it a point to bring new and innovative products into the market to suit the needs of our diverse global customer base. As a socially responsible company, we put thought into action by actively involving ourselves in the social sector and uplifting the poor and needy. Today, we stand as a leader in the energy management sector, looking to conquer many more milestones in the future. We are proud to be an energy management company that uses its resources and technological knowledge to keep our planet green and conserve our scarce energy resources.
Don’t let your failures stop you but learn from them and use them as stepping stones to success. Be different and think differently and be a visionary leader that can execute well. You need to be focused and resilient to achieve your goals. Work hard and learn from your mistakes as there is nothing called instant success. Set practical targets initially and aim to grow steadily. My company ElMeasure is a company that was built from the scratch and the usual experience of running from pillar to post to get anything done is common. The entire organisation was bootstrapped primarily with internal funds till we grew. The banks always give you money if you have money and India lacks an aggressive financial system that aids new starts ups. I should say that it was the support of friends and likeminded people that fuelled our growth and propelled us to the heights we have achieved. India is ranked at the bottom for the ease of doing business and that needs to change for India to make progress and create an inviting environment for new businesses. During the early days, one of our competitors could not accept our early success and tried to destroy us by every brutal method possible, but through adversity, we focused our thoughts
Elecon Measurements was founded in 2004 by a small team of entrepreneurs with a vision to serve the society. Elecon under the brand name ‘ElMeasure’ is a leader in providing energy management services, offering a wide range of products to suit diverse energy management needs. Today ElMeasure is an international company that boasts of 4 manufacturing units and staff strength of over 300 employees. Our manufacturing units are located in Bangalore, Coimbatore and Dehradun with a total production capacity of 300,000 meters annually. Our 5th manufacturing location will be started in the USA in the coming year to cater to our growing export market. Brand ElMeasure has recently gone through a transformation and today we are proud to say that we are a company that provides our customer with infinite possibilities to manage energy. Our strategy is to promote the concept of Energy Management and explore application areas in a power utility. We utilise our time with the customers in understanding their manufacturing process, the challenges and problems encountered and appropriately leveraging our products and solutions to realise energy savings. Our technology speaks for itself and today we as a company is moving energy management from a wired to wireless solution. Our products and solutions are scalable, user friendly, and cost effective with an average ROI of twelve months. July 2014
July 2014
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Cost and Flexibility: Advantages enjoyed by SMEs The SMEs in India play a key role in the Manufacturing Sector. In fact, the Indian Manufacturing Industry is a globally low cost source mainly due to the cost effective support that it gets from the SME sector. The Indian SME’s spend a lot of time and resource in non-value added activities, most of which can be reduced by the implementation of sound government policies.
Finance & marketing were the main challenges that we had to face when we started up our venture into manufacturing small machine components for the automobile industry. One has to identify a viable project at the very first level and convince the banks that it would be profitable, and for this a CA project report is required. Only once did I have the pleasure of a General Manager of some bank asking me for the project of financial calculations from my perspective. After this one has to arrange for collateral security required by the banks which was never easy to come by. The Indian nationalised banking sector is still unfortunately affected by personal relations and has a long way to go in learning to treat customers respectfully. Unfortunately, the lowest interest rates are also offered by the nationalised banks. But in general, the supportiveness
of the government at large and specifically public sector banks towards the SME sector is definitely improving in a gradual manner. Marketing yourself to a customer in the SME sector involves much more than selling just a product; you need to sell your entire service as a package, and right from the owner to the last helper are as important as a team in this process. The quality systems certifications demanded by all OEMs are a major challenge to the SME sector, though there is some financial aid available in the form of subsidy from the government. Today cash flow management for payments to creditors and various government agencies is a major challenge which all small scale industries have to plan wisely. Profitability monitoring and maintenance is also a major concern, since the SME sector has to operate on very low margins because of the very nature of their
existence. I have made it a point to keep good paymaster customers in order to avoid this problem. The government is also helping out SMEs through the delayed payment act, which can be used against poor paymasters especially from the medium scale sector. People management is a very important skill required by a CEO. The CEO has to manage customers, bankers, government agencies, staff & workers in one juggling act. This does not undermine the need for sound financial and marketing management skills which I have already listed above. Excellent personnel relations and stable payments on time go a long way in retaining talented manpower in the organisation. I believe that good or bad inter-personnel relations start from the CEO, so I try to maintain good relations right down to my helper level. This sends out a positive message to personnel
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down the line, and results in a cordial and conducive work environment. This ensures a minimal attrition rate from the organization. Training is a weak link in the SME sector in general. Informal hands on training is the popular practice, and the SME sector needs to spend more resources on imparting formal training sessions to their personnel. These are also a mandatory element for the various quality certifications the organisation needs to achieve excellence in operations. I believe the government should minimise the tax collection agencies to a maximum of 1 or 2. The government should ensure that corruption at all levels is eliminated, and a fair playing field based on merit and effort is available to industry at large. There is a huge gap between the 2 parallel economies; i.e. the taxpaying population at large and the non-tax paying
Nitin Sardesai, Bachelor in
He is having more than
working towards TS 16949
Production Engineering is
25 years of experience in
shafts, socket plugs, flanges,
the CEO of Nitin Enterprises,
and having an average CAGR
running an SME business
spacers, and housings. Their
a family run organisation
of around 25% for the last 5
successfully.
main Customers are German
years. Their major product
and American MNCs from the
line is a variety of around
automobile & diesel engine
engaged in the manufacture
26
Nitin Sardesai
and supply of small
An ISO 9001-2008 Quality
machined components
certified company, Nitin
300 types of Bar Turned
industry. For further details
required in the automobile
Enterprises has 3 plants in
Parts, including bearing
visit www.indiamart.com/
and diesel engine industry.
and around Pune. They are
cages, threaded adapters,
nitinenterprises
July 2014
the assignment and efforts taken to complete the same. An entrepreneur should be able to convince his vision of business with his employees. Empower your employees to take independent and creative decisions to some extent. Appreciate their performance/ creativeness, etc. Motivate them with challenging & realistic
LEADER SPEAK An entrepreneur should employ right people as per his expectation & need. He should assign roles to his employees considering their strength & weakness. He should convey his expectation to the employees and should assess his employee
assignments. For us during start- up it was difficult to locate right suppliers and talent for employing. During initial period, lot of our raw materials need to be imported. We were lucky to have exposure to internet to find rare raw material suppliers.
not only with just results, but how
Yogesh Patil
the employee has approached
CEO, Innovative Automwtion Products
economy supported by the rampant corruption faced by the country.
becomes a crucial factor in making these investments in growth.
The low cost Chinese SMEs pose a threat to Indian SMEs, and the government should take a cue from China where government support is 100% available for the industry. This will help the SMEs face this threat on a domestic as well as global level. The Indian SME spends a lot of time and resources in nonvalue added activities, most of which can be reduced by the implementation of sound government policies.
Cost and flexibility are the biggest advantages enjoyed by the SMEs over their larger peers. Family run SMEs need to be flexible and willing to bring in professionals from outside at the required stages in their growth at the risk of diluting their family control for the betterment of their organisation.
The dynamic nature of the economy demands that the SMEs need to recognise the available opportunities, take calculated risks and make fast investments in plant and equipment. They need to realise that the demand increases are temporary in nature, and that these need to be evaluated and cashed in on. Here again, quick finance July 2014
The budding entrepreneur usually acquires the core technical skills required for running the business successfully, but neglects the marketing and financial needs for running an organization successfully. These entrepreneurs need to hone their marketing and financial skills, preferably before starting the business. This goes a long way in ensuring the chances of starting a successful business. www.martupdate.com
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Never Give-up and Be Ready to Change We admire many landmark structures like Taj Mahal, Qutub Minar, or the Eiffel Tower for their marvelous creations. Any good structure requires a proper foundation and so it is for the structure of a country’s economy. The manufacturing industry and the Small and Medium Scale enterprises are the backbone of the economy and development anywhere in the world. SMEs plays a big role in the economic development of a nation with vast employment opportunities and also strengthening foreign exchange with their exports.
An entrepreneur should never
important today to use those
in the industry for many years.
‘e-’ has become an evil
give up in any situation and
experienced along with the
So, all our venture capital
exercise; being a trap from
he should be willing to begin
talented younger generation in
came from our own savings.
all directions for the SMEs;
his day with punctuality. He
a balanced way for the growth
We at PI-TECH Services import
leaving no alternative. Every
has to be ready always to
of the organization. Delegation
and provide the best core
other day we have to use
work harder than anyone else
of authority sounds good in
elements in the world, and
the ‘password’ of the bank-
in his organization. When I
management books, but can
also technically guide the
account to pay one tax or the
started, the biggest challenge
be dangerous if not monitored
customers to make the best
other; and that requires the
was to prove to the customer
enough, or continuously. The
use of the same. So, some of
entrepreneur to spend his own
that a well-qualified technical
people you nurtured and
the customers co-operate and
valuable time. Next, they have
entrepreneur was able to
trusted could stab you in the
pay us with only a short delay,
to spend days and months
understand better his needs.
back. So, take care!
though never on time.
every year soliciting C-Forms
Not getting payments in
In my last article which had
time has become a hazard
appeared in the June edition
nowadays and it has been a
of MART, I mentioned that
very bad practice. Most of
today the SME is burdened
the SMEs save nothing, since
with e-filing all the documents
all their profits get deployed
and also supplying hard
in keeping the organization
copies at the same time
It is a fact that several of the
running. Every industry should
whether for excise; sales-tax;
schemes that the government
Retaining talent is one of the
adopt good business practices
or income-tax. The work of
extends to the SME’s do
major challenges that SMEs
to overcome these hurdles.
the government employees
not reach them for lack of
face today. We have to be
Truly speaking, we work with
has been transferred to the
awareness. As a member of
open-minded to the fact that
zero borrowing from any
assessee. The SMEs spend
CII, we are informed about
while those who are older
bank or financial institution,
more time e-filing than
such benefits through their
have the experience, those
and have learnt to live with
attending to their own work.
meetings. For the SMEs a
who are younger have the
our own funds. We came into
They can pay no tax through
membership of an active
latest knowledge. It is very
business after having worked
a cheque any more. Suddenly,
industry association and
Today’s challenges are to reach the genuine customer, out of the plenty who show interest while visiting us in a Trade-Fair but really have no need, and to meet his demands for the highest quality at the lowest price.
forms do not come, it is the SME that pays the balance tax as well as the interest on it. Where is the productive time left?
language course that earned
under the auspices of ITC-
Chairman for North India. In
CEO of Delhi based Precision
him a scholarship to study
UNCTAD/ Gatt.
2007 he was decorated with
International, graduated
Commercial Italian in Italy.
in Mechanical Engineering
In 1983 he was selected from
before he was 21, from course of his professional career, he topped an Italian
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from their customers. If these
Cavalier Surendra Kumar,
Roorkee (now IIT). In the
28
Surendra Kumar
Knighthood by the President He is one of the founder
of Italy for this contribution
Asia to attend a Course in
members of the Indo Italian
in bringing together the
International Marketing
Chamber of Commerce
industries of India and Italy.
held at the Italian Institute
and Industry in India and
For more details do visit
of Foreign Trade, Rome
has been in its alternative
www.precinter.com
July 2014
your market internationally you should find contacts and agents in countries where you are not present. Keep a
ELECTRONIC INSTRUMENTS FOR INDUSTRIAL AUTOMATION
financial-margin for facing the competition; so as not to be driven out of the market by the competitors. SME’s have a noted advantage over large businesses with their flexibility in taking decisions; and to react with greater
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speed to changed situations. As I have always maintained, bigger organizations make bigger mistakes, while smaller
LEADER SPEAK
organizations can make only smaller mistakes, and learn
“Majority entrepreneurs have
faster.
not been benefited from any
Times have changed and the
government schemes. Biggest
market situation, what we had
reason is lack of proper guidance
two decades ago, is completely
from departments. Most of the
different today. Teaching
benefits are enjoyed by companies
younger generation the value
in close proximity to authorities.
of hard work in a Family-run
Another biggest drawback of
enterprise is very important,
government institutions is that they
to carry ahead the tradition in
offer 100% payment by LC to overseas suppliers which they can encash or discount immediately, whereas Indian companies get payment after 30 days to 90 days of supply. This is sheer injustice and should be corrected immediately.” Jayesh Patel Marketing Director A Innovative International Ltd
PRE SET COUNTER
the way you did. Allow them
PRE SET TIMER
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more freedom with their mind, rather than with your money. They must learn to earn the money; rather than to use it. If they have a new project in the mind, ask an expert to assess it; do not reject it just because
COUNT INDICATOR
ANALOG VOLTAGE
POWER SUPPLY RELAY UNIT
it did not make sense to you. An SME organization should be launched always with the owner’s past experience in the same sector. I am amused where the owner knows
participating actively in its
nothing about how the
events can sure help them
product should be produced,
not only to be updated on
or if he cannot distinguish
the schemes, but also to
between good and bad quality.
grow their business through industry networking.
For the young entrepreneurs
SMEs have a bright future
up!” Also, my suggestion is not
DC MOTOR DRIVE
my advice is to “Never give
before them in domestic and
to follow the path of core-
global market. Do participate
competence. If you do, the risk
in fairs in order to make
is that the day your customers
yourself accessible to new
change their needs, the SME
potential customers in the
organization would die if it
domestic market. To expand
cannot adopt to that change.
July 2014
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
SMEs Driving India’s Growth SMEs play major role in Indian manufacturing sector working as key component supplier for big industries in low-cost and competitive pricing and meeting global standards in quality and schedules. SMEs are concentrating more on strengthening the top industries in providing creative and effective solutions to improve their productivity. We, Right Engineers, are one of the key sources for effective solution provider for today’s material handling & production line challenges. Selecting the line of business is the initial challenge and strengthening engineering knowledge about particular product is a tough task. It requires a lot of R&D and patience to reap the results. Nothing is possible overnight. But not to give up hope and perseverance was the only trust I had during starting up my own business. It’s very essential for an entrepreneur to know the advanced techniques, new engineering knowledge to keep ourselves steady in the market. We need to learn from the developing countries about their working methods and quality policies. SMEs go through a lot off difficulties like fluctuation of business scenario day to day, changing of government policies, lack of help to strengthening the SME sector and the Government help is not effectively reaching the sector. Obstacles are frightful things you see, when you take your eyes out of your goal. So never give up your aim, try hard by focusing on the goal. Low overheads, possibility of diversified business line based on potential, develop new markets are some of the key strengths of SMEs. Retaining talents are one of the major issues any manufacturing industry faces today. We need to develop a creative working environment up-to global standard. In Bangalore for instance, everyone equates to software industry
culture and their perks. We should never let ourselves down in meeting the same standards. In the absence of an adequate skill development system in the country, the SME sector invariably recruits untrained workers who are then trained on the job. Quite often once the workers reach a certain level of skill they are absorbed by the corporate sector. Consequently, the SME sector is in a constant process of training raw hands and being unable to retain skilled workers. The efforts that are being made at present to improve the skill development infrastructure in the country need to focus on abilities which are needed by the SME sector. If this can be carried out effectively, we should expect to see a significant improvement in the efficiency of SME production and, thereby, an increase in their value added per unit of capital. Thus, if youth unemployment is a concern for policy, focusing on entrepreneurship is a better strategy than supporting existing corporate enterprises. The other major constraint is finance. Although India has implemented a number of measures to improve the flow of formal finance to the SME sector, especially through directed bank lending to small enterprises though priority sector lending targets, the experience is not entirely positive. The banks offer loans to the
Mr. C M Nagaraj, technically qualified with MBA in Marketing is having 22 years of hand on experience in the Material Handling industry. He is the Managing Director of Right Engineers & Equipments India Pvt Ltd which was established in the year 1996. Right Engineers are the
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designers, manufacturers and suppliers of an array of material handling equipment & storage solutions for industrial and logistics sectors. Their offerings include trolleys, lean manufacturing solutions, storage solutions, tool management, customization, work
C M Nagraj
people who already got enough money. The real eligible poor entrepreneur is hard to get loan from bank. Top of that we are facing less cash flow in the market. We should be selective in reaching the customers based on the reputation and payments. We should be possessive in payment terms and conditions. It is felt that entrepreneurship support cannot be achieved by such policies when banks (and other formal financial sector entities) continue to follow traditional methods of lending. A possible solution would be to change banking rules in a manner that for certain categories of lending, banks shift from a project appraisal approach to an actuarial approach. Industry oriented banking sector is also very important for proper growth of SMEs in India. We are yet to get any benefit from Government schemes for our enterprise. We are completely unaware of any such schemes exist or not. Government should help SMEs to put up their own plant and machineries by providing financial assistance. And to monitor the same reach to eligible SMEs, without any babu-pleasing and red-tapism. Things are looking brighter with the initiative of lot of projects coming-up, mainly government projects like building highways, railways, smart cities etc. It will sure bring more and more business opportunities to the SMEs
stations and hydraulic equipments. Owing to the world class products, fair & ethical business practices and attitude for continuous improvement, Right Engineers have mustered a wide client base spread across the country. Backed
by a team of diligent experts who are competent enough to adapt to the versatile conditions of the domain, Right Engineers are able to meet the dynamic requirements of our customers. For further details visit www.rightengineers.com
July 2014
in India. We at Right Engineers support industries to move their loads with less fatigue to humans in economical and effective way. We are the solution provider for today’s material handling challenges for the industry they are facing. We work on improving working environment and achieve maximum productivity. Our core strength is providing customised solutions. Our team is sound and expert in understanding the customer needs and working on the designs. We provide 3-D modelling as proto-type to the end user to understand more about benefits of solutions. Our products vary from Cranes to simple trolleys. Our vision is one source every solutions. For a budding entrepreneur I would suggest to select the line of business based on trend and potentiality in the market. Have a preliminary survey about opportunities and threats. Once you select your destiny, focusing on that acquires maximum knowledge. If an SMEled growth process is to be considered seriously, then ways will have to be found to integrate them into the larger policy framework.
July 2014
awareness and engage with customers closely and thereafter, garner the relations offline. There are many free social networks like Facebook, Twitter, YouTube, Pinterest and so on which have been optimally leveraged by businesses of varied types and sizes including SMEs. Online is a great space to establish thought leadership and gain credibility as a brand and there are many platforms and tools that provide brands that opportunity, without burning a hole
LEADER SPEAK “SMEs can achieve quite a lot even with modest marketing budgets and thorough understanding of different digital marketing platforms. If utilised judiciously, digital marketing can in fact, prove to be one of the most affordable, sustainable
in their pockets. Expertise and knowledge sharing help in many more ways than turning up in organic searches. Having said so, one can easily get swayed and lost in the multitude of tools and it is best that SMEs gather some understanding of the possibilities and benefits right at the beginning and then distribute their efforts and budgets on channels that most suit their marketing objectives.”
and measurable marketing tool for SME’s.
Namrta Dhar
Social Media can help them build brand
Head-Marketing, Mahindra Reva
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Encourage SMEs for a better India The role of SME in all economy is very crucial for the success of the large enterprises and the standard of living of the people. The globalisation of trade has made products of high quality and lower cost. Mass consumer products are manufactured at few locations across the world. These manufacturing locations need high tech equipment and machines designed to achieve efficiency and low cost of production. The requirements of these high tech equipments are few in numbers. So the companies making these equipments are mostly SMEs. So it is essential all countries promote and nurture SMEs if the nation aspires to be a world leader in manufacturing. India is a massive nation with a huge population. Like in our sports synonymous with cricket, our society, particularly bankers and industrial financial institutions are not exposed to the need of SMEs in the success of large industries. It is easy to get finance for a hotel industry than to get finance for the kitchen equipment for a hotel industry. This challenge is compounded by the fact the data available with our tax authorities and the statistical department is neither clear nor reliable. Besides that, getting the information is also not easy. Simple statements from the tax authorities on the amount of import and likely buyer to evaluate the market potential of a product in a given geographical area or line of activity has to be built up by an extensive survey costing money and time. Similar challenges exist in all aspects
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of the business building. To me electric power is the main challenge on a day to day basis. Absence of workers idling the expensive capital equipment un-announced is also a challenge forcing the company to have standbys. Sudden visit of Government officials of various departments on the pretext of collecting information, inspection eats away the valuable time.
in a place where the talent is available in plenty. Plenty of available talent reduces the cost of talent for hire. Once hired, excellent planning is required to ensure no unnecessary stress is brought on the talent on day to day work. Most employees prefer a tension free job than a job which pays them more but with more stress.
A complete observation of the market, production, design, taxes levied on the product is an important quality every entrepreneur must have. In India the value addition of the product is below 30%, the remaining 70% of the end user product cost is in taxes, finance charges, retailer margins and other unknowns. So, every CEO of a SME should be aware of this fact when running the business.
Cash flow is always an issue when running a business in India. This is compounded by the legal requirement of paying the tax once invoice is made. Not only every business does their own business and also acts as a tax collector for Government. When the end user fails to pay the bill, the SME ends up paying the tax also because of the buyers default in making the payment. This indirect taxation must be removed if Government wants business to run efficiently.
We should place the company
Government should be aware
R Srikrishnan that massive enterprises will need a few hundred SMEs who provide the technological edge and infrastructure for the large enterprise to succeed. This awareness is totally lacking presently. A large enterprise cannot have equipment which do not get attended and serviced immediately, if it has to remain functioning 24/7. So, the government should educate the society and encourage starting of SMEs in a professional way. The potential of a SME in global market is huge. The internet, international courier services, shipping agents, net banking, online payment systems offer a huge potential for any company with a quality product to market internationally. The search engines and emails bring the inquiry to your desktop. To succeed globally all you need is a good product priced competitively and an ethical business culture.
Mr. R Sanjeev Krishnan
the growth of Precibalance
life and higher reliability of
Balancing Machine with
B.Tech Graduate on
Dynamic Machines India
the equipment. They are
a faulty or unserviceable
mechanical engineering
Pvt Ltd based in Chennai.
one of the leaders in this
instrumentation, to a
from NIT Trichy, finished his
Precibalance manufactures
technology with installation modern computerized
MS in Mechatronics from
dynamic balancing machines in more than 75 countries.
Balancing Machine.
University of Washington,
which are used in balancing
For more details visit
Seattle. He joined with his
all rotating components to
entrepreneur father Shri.
reduce the vibration and
Ramadurai to spear head
noise resulting in longer
With Precibalance you can upgrade your old
www.precibalance.com
Balancing Machine or a
July 2014
hold the project as ransom. There is no legal procedure to sue the bureaucrat or the government, which employs these bureaucrats.
LEADER SPEAK “One of the biggest threats to SME’s are non avalability of quality labour.To retain talents is the most difficult task and to survive we are having continuous recruitment of talents which would be a long term solution. SME plays a major role as it provides employment to people and also contributes to growth of country. Government should provide inexpensive infrastructure for growth and expansion. There are a lot of opportunities for SME’s in India who can offer quality and delivery in time.” Manpreet Singh Sachdev CEO, Elite Group
Big companies are built on fool proof systems wherein the decisions are made to last for a reasonable amount of time. SMEs can work freely and change the decision in execution of a project as the situation develops. Since the number of people employed is limited, reorienting the people to new goals is relatively easy. This is the main advantage of SME over large companies. For a family run business, every family member should be made aware the importance of this SME in the society, the status and quality of the product on international benchmarks. Training the family members in the requirements of meeting the challenges in running the business is very much necessary. Training is very important in a SME. Being small in size, the liberty to make mistakes is zero. So, it is essential every employee is trained both physically and mentally to meet the demands of the job. Suitable training should be organised in house or by hiring trainers from outside.
in corruption. These corrupt
When you want to start a business, keep 10 years time frame in mind. You will spend about two years in starting the business, three years in learning to run the business. Next five years will be a fruitful time. In these five years you should plan for the next 10 years. Never forget the Customer who is buying your product or service. The buyers expect that he get a better product or service than the next supplier available to him. Every entrepreneur should ensure customer expectations
bureaucrats, for small gain, can
for a successful business.
From our industrial association, through media, sometimes we are even approached by government departments for benefits and information. But my experience to get financial support from Bank or financial institutions was not very impressive. In a dynamic economy, opportunities do not last for a long time. We need to act fast to pick them. The threats are the bureaucracy steeped
July 2014
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Improve Infrastructure in Industrial Areas Small and Medium Enterprises in developing countries such as India face a number of hurdles when trying to achieve the growth they want to. But Indian SMEs, being a hardy lot, have faced problems such as lack of proper infrastructure and inadequate working capital, lack of marketing facilities, and stiff government policies, only to grow at an unprecedented rate. However, their challenges are tangible, and are not to be brushed aside. Obstacles specific to particular domains are completely different from common problems of SMEs, and the economic meltdown only adds to these setbacks. One reason to rejoice is that global economy is slowly picking up! SMEs are the building blocks of any economy. In India manufacturing sector is still a marginal contributor (less than 17%) to the GDP. Comparing this to China where manufacturing sector contributes 45% to their GDP. The key to China’s success in manufacturing sector has been SMEs. If we want similar success, SMEs have to be strengthened. Last few years Inflation has been very high in India and in order to counter it, RBI has followed the policy of keeping liquidity squeezed in the market, this has hit the market cash-flow severely. We have realized that this is going to be a long term problem so we have formed a new credit policy and enforced it strictly. It has taken time for the market to grab the importance of cash flow discipline. I think market is in a better place now. As importers we were badly hit by Currency fluctuation in 2013 which depreciated over 25%. It has taken a while for the currency market to settle. Government can support small scale industries in a very big way. Firstly capital has to be made available at a nominal rate to
encourage young entrepreneurs. Secondly Tax structure should be simplified; there are a lot of statutory compliances like Income Tax return, Sales Tax Return, Service Tax Return, TDS Return, Excise Return. A simpler GST system will save a lot of time & cost which is critical to SME’s. Last but not the least we need good infrastructure in Industrial Areas. Most of the industrial areas in India are in bad shape. In NCR Delhi there are a lot of industrial areas where roads have not been built for years and water logging during rains is a big problem. SMEs want and need to improve efficiency and productivity, but when business is down, a hurdle that is faced by most SMEs is that of keeping expenditure under control. These businesses also see a challenge in using technology that is obsolete. What is interesting is that about 60 percent of SMEs in India use up-to-date equipment and 50 percent think that IT could solve the problems faced by their businesses. Finding new markets and customers for their products
Maninder Singh
remained as a major concern for SMEs in India, but one of the most critical challenges faced by this sector includes that of efficient planning and execution of projects, which could be solved by the adaptation of technology. SMEs have a lot of flexibility to adapt to the changing Business Environment as compared to bigger companies. You have to turn your companies into professional institutions, you have to empower people. When your company grows, it’s important that the people joining are empowered. It’s important to hire the people who have their own individual thinking. An SME CEO has to have leadership qualities, should be a visionary, and have an analytical mind. The new government is focusing on growth of SME & manufacturing sector. There are new manufacturing corridors planned, new SEZ’s, plan of new cities. Also government is focusing on small scale industries. The current Union Budget is the clear indication of the agenda of the Government to generate employment through our own manufacturing sector. So I see “good times” ahead.
LEADER SPEAK “An entrepreneur’s personnel & business goals with time frame should be well defined. In todays competitive work environment, accepting challenges & doing the businesses innovatively are integral requirements to be successful. Dedication in the work along with awareness of surroundings with strict financial discipline is must. At last every activity of ours should be for a Nobel cause.” Harsha Ajay Lokhande Director, Aim Plast
A Management Graduate,
range to include many
provide complete solution
Maninder Singh joined
Industrial Automation
(Actuators) with stepped
Mr. Amarjit Singh, who has an experience of 30 years in bearing industry. PBH offers Solutions. family business Precision products as components Bearing House, which was Precision Bearing House, or assembled complete mainly into bearings. He was one of the leading importers solutions for example Linear the third generation into & trusted solution providers Motion Guide, Ball Screw, the business. for industrial automation Coupling, Cable Drag Chain products, was founded by He expanded the product can be bought from or can
34
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motor. Similarly Aluminium Profiles can be purchased from PBH or they can provide Workstations, Conveyors or Assemblies as per your drawing. For further details visit www.pbh.in July 2014
July 2014
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Technical Upgradation: Indispensible Need of the Hour A Small and medium manufacturing enterprise has a role of providing the basic raw materials as well as instruments & devices required in the manufacturing processes of larger companies. Indian manufacturing sector comprises of various SMEs that contributes even directly to Indian economy through exports and also serves for developing various products in India which are required in foreign countries. An entrepreneur of an SME has a challenge to continue technical development parallel with the market, along with it a main concern is to reinvest the profits earned for the development of the company, using the resources as well as hiring and training of suitable manpower in timely manner. An SME owner should have the quality of doing effective marketing strategies along with the ability to run the organization through dynamic approach and a thorough technical background is always a good assistance. Kind & contingent approach to the employees offers a space for development for them and ultimately for the company. Our day to day challenges are: - Continuous upliftment of the products for satisfying clients, increased competition leading towards reduced margins, improvement in the abilities of manpower at the timely levels by offering incentives inspite of economical crunches in the market. To retain its talents an SME
has to focus on the continual technical upliftment of its employees:a. Thorough trainings by experts from the respective fields. b. To promote education among the employees along with the job. c. To provide the emphasis on rule of science rather than rule of thumb. d. Appreciating employees about their technical abilities. e. Promoting them to explore the markets. f. Allowing them to take the calculative decisions. g. To go for an order of import substitute. h. To put the team for its development and increase the business/production. Training forms the basic requirement in an SME as the training is done for the improvement of every process in the company. With the emerging new generations, the new talents are to be generated in the specific process directions. Managing cash flow is a major
Mr. Anil Mankad, the Director of Joyam Engineers & Consultants Pvt Ltd has worked in the field of vacuum technology for more than 25 years, and also has a solid technical background from one of the pioneers in India in vacuum products manufacturing
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issue today to any enterprise. Timely payment as well as adhering to the payment policies is a prime importance. While negotiation of the payment terms are generally fixed and it is to be monitored & followed up once time limit ends, generally the payment period is a fixed time of 30 days but the receipt of payment is achieved in a 45 days cycle normally. In bad time of business one has to take care or lose the order by not accepting it. For financial support banking policies are not at all friendly for an SME. Initially four to five months are considered as a gestation period from the application to the first credit. The process is lengthy and demands a large amount of paperwork for the same. Our experience for the same was average because of large number of proof demands from the bank for their financial credits. But once it is through then is easy to get the finance on proof of growth in business.
Anil Mankad We are updated about the government schemes through industrial consultants or getting to know the experience of other enterprises. There are no systems in place where SMEs are informed about the different schemes government design to support the manufacturing industry. The major key support that government can offer to an SME is the benefit in the land owning costs while in the estates along with the Special Economic Zones. A special tax benefit on manufacturing costs can prove to be a relief in the economy of an SME and to allow the import & technical knowhow. The National Manufacturing Policy has to improve the overall GDP by 25% through the integral effort in various sectors. The National Manufacturing Competitiveness Programme, being implemented by Ministry of MSME will be strengthened, and the recommendations of Task Force on MSME for creation of a separate fund with SIDBI, strengthening
company SLM Manekial
the imported pumps of
System, combination of
(Sulzer Brothers) for more
companies like SIHI, NASH
Roots Blower, Water Ring
than 15 years.
& SIEMENS. Joyam started developing the Single Stage Liquid Ring Vacuum Pump both Mono – Block & Coupled, and later ventured into Two Stage Liquid Ring Vacuum Pump, Mechanical Vacuum Booster
Vacuum Pump or Oil-seal
Joyam started on one table in 1989 withits operation by manufacturing the spares for the SLM Maneklal make Vacuum Pumps and also repairing and maintaining
Vacuum Pump as per the requirement. Today Joyam is the only company in India manufacturing entire range of Vacuum Products. For further details visit www.joyamvactech.com July 2014
threat for the existence in this competitive environment. b. The rising debts for the organisation of the cash credits from the banks. A balanced economy is always required. c. The varying government policies and the economical growth bubble and slowdown, consistency is a requirement On the same time the SMEs have the following Opportunities:
LEADER SPEAK “In today’s challenging world, SMEs play a significant role in any Nations Economic Development. The growth of many such SME where women are the main beneficiary, produces creative and innovative jobs that fuels the economic progress. Though various trainings and support service particularly among the first generation women entrepreneurs is given, more awareness programs have to be conducted to encourage and inspire the younger generation mainly in the rural areas to take up the initiative further and expand the business. In my opinion, though the SME Sector is growing, it requires a lot of support from the government to reinvent itself to realize its potential and also inspire the upcoming generation. It should appoint mentors to work on this sector.” Reena Jabran Chief Resource Person, Jayakartha of NSIC, modification of lending norms and inclusion of lending to MSMEs under “priority sector” lending will be given due regard in taking appropriate measures. With dynamic economy fluctuations SMEs are under following threats: a. A threat for an SME is the prime requirement of technical upgradation, this being a challenge is a continuous July 2014
a. Leaving time consuming conventional methods, importing substitute products to compete with the other world products and design as per ambient condition. b. Timely Payment possible through ease of net services of banks. c. Quality of products can be improved by a considerable R&D possible through cash credits. d. Government policies offer development through providing land & tax benefits to an emerging SME The big advantage is that an SME has the advantage of successfully becoming the import substitute and get better value of production. A family run SME should develop the talents of their members to have more trusted hands, in various departments. They should be given a brief introduction and to be updated regarding the position of their business. The family children should be taught in such a way that they can be responsible towards the enterprise and trust the need of family. Sharing of markets as well as the support for each other is a prime requirement for the budding entrepreneurs. In the next five years it can be seen that SME’s would cover the larger portion of market and exports as they have the indigenous products, also supply of entire plants for the process industries is through an SME and their expertise is needed in importing substitutes and to move for larger unit. www.martupdate.com
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COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Innovate and Embrace technology SMEs employ close to 40% of India’s workforce. They generate millions of jobs and share 40% of India’s total exports. India has the second largest SME base, second to China. Finding employable engineering/ manufacturing graduates, training once selected on the related field and further retaining them has become one of the major challenges faced by the SMEs in India. SMEs are the backbone of any manufacturing driven economy. Same is true in the Indian Manufacturing Sector. Although, SMEs depend on large manufacturing companies, directly or indirectly. But, without a healthy SME sector, the large manufacturers will also be affected. An industrial area such as Bhosari, near Pune, is a good example of how SMEs and Large manufacturers co-exist and depend on each other. This is not a recent phenomenon. This relationship goes back decades. The biggest challenge we faced was trying to secure a position for a nascent technology and its applicability in the way New Product Development (NPD) happens. I returned from US in the year 2000 to start the Company to offer Rapid Prototyping services in India. At that time awareness of RP Technology was very poor. Having a prototype for Design Validation, testing etc was not well understood by a lot of companies engaged in NPD. If prototypes were required, most of the companies relied on traditional means for producing prototypes.
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Moreover, Rapid Prototyping could only be applicable where the company had already implemented 3D CAD. During that period, it was amazing to visit some big companies to find that they were still using conventional design methods such as drafting. So, educating and propagating the knowledge, utility and benefits of Rapid Prototyping to people in various companies was the biggest challenge we faced. We overcame this challenge by holding Seminars, Workshops, in various cities, participating in many Product Development forums as speaker and/or exhibitor. I personally visited hundreds of companies giving lectures and seminars about Rapid Prototyping. We face day-to-day challenges in the HR department. Finding employable engineering/ manufacturing graduates has become more of a challenge in the last 10 years. Once you find good talent and provide them specific training related to the technology, retention is again a challenge. As we are engaged in a technology driven segment, we hire and train the best people. After doing that, retaining the workforce
for a prolonged period is our main challenge. As leaders in this industry, our employees are most sought after by our competitors. To retain talent, in addition to having compensation structure at par with the industry standards, we also provide many other benefits to employees such as liberal leave policy, performance based incentives, etc. Training is very important for SMEs. Training is a way of staying competitive in an ever changing environment. It also helps foster a culture of innovation and change within the company. It also helps employee engagement, motivation, and hence retention that results in improved productivity and quality. As an entrepreneur you should do your homework and be prepared for unanticipated obstacles and scenarios. SME cannot afford to have an army of consultants and advisors, so the CEO/ Owner must also acquaint himself/ herself with statutory and regulatory matters. Unfortunately, ignorance of these matters
Dr Mukesh Agarwala can prove to be very troubling and costly. Patience is another virtue a SME Owner/ CEO must have. Hire the right people and make sure good systems and processes are in place to prevent the Owner/ CEO becoming overwhelmed with daily routine work. The Owner/CEO must look ahead to changes in customer needs and technology. Our business involves very high value imported raw material. As a result, maintaining healthy cash flow is vital for us. Timely payment collection is important. I believe in what was said by Mr. Godrej, “Sales is Vanity, Profit is Sanity and Cash is Reality”. So, we are rather firm on payment collection in a timely manner. Getting financial support from PSBs in form of debt funding is not much of a problem, especially if you have healthy financials. In our case, we have always maintained sound financials and hence leveraging debt funding from PSBs has not been much of a challenge. Funding from Government linked non-banking FI has been more challenging. Reasons for that are quite apparent.
Dr. Mukesh Agarwala,
is the Managing Director of
worked as a Scientist in US
to Indian Manufacturing
graduated from IIT
3D Product Development
working on Advanced RP/
companies. With this
Madras with a B.Tech in
based at Bangalore.
AM technologies in Metals,
goal, started 3D Product
1988 and subsequently
He was engaged with
Ceramics, and Composites.
Development Pvt Ltd, which
obtained Doctorate from
Rapid Prototyping /
US (University of Texas at
Additive Manufacturing
Austin), specializing in Rapid
technologies for almost 25
Prototyping Technologies
years. Subsequently, he
He returned to India in 2000
has been the leader in the
with specific goal of starting RP/AM services for last 10+ years. For further details visit a Company that provides Rapid Prototyping services
www.3dpd.net
July 2014
by SMEs who provide vital goods and services to the larger neighbour. These SMEs employ more people and probably pay more taxes (direct and indirect) per employee or per square foot land basis, yet they are not provided with even basic amenities and infrastructure.
LEADER SPEAK “Continuous Marketing Communication with appropriate focus on your strong business expertise is very much important in any SME’s Marketing Strategy. Communication is a crux of whole matter; maybe it is by any means - email, website, most importantly a word of mouth by the existing customers to the industry because of your giving prompt service. Social networking is catching up as a strong tool for mass communication. Yet, continuous follow up & personal visits increases the possibilities of getting business from customers.” Anuya Chabukswar Director, C-Tech Engineers Pvt Ltd
Bijli, sadak, paani. Most owners/ CEO of SME will ask for Tax breaks and subsidies. I believe, the government should provide at least the basic amenities in industrial areas which are dominated by SMEs. It is a common sight to see world-class, well lit roads leading to the gates of a large manufacturing company. Just walk ½ KM away from the gates of the large company and you will find amenities and infrastructure in deplorable conditions. These areas are dominated July 2014
There is not much on offer from Government for SME, to the best of our knowledge. Certain subsidies on capital equipment loans may be on offer. Other than that, we are not aware of any specific benefits extended by the state or central governments to the SMEs. Our Company, 3D Product Development Pvt Ltd., is Technology driven company specializing in providing Rapid Prototyping / Additive Manufacturing Services to all Major Automotive, Consumer Goods, Electronics, Medical Devices, and other engineering / manufacturing companies in India. As mentioned earlier, when we started this company, the awareness about these Technologies and their benefits in Product Development was very poor in India. Today, of course, the Technology has caught the attention of almost all large Corporates and some of them are even developing their strategies to enter this space. We operate from two facilities – Bangalore and Pune. Our services include supply of Plastic and Metal Prototypes and low-volume components. We employ close to 100 people. Including myself, we have 3 IITians and over 40 Graduate and Post-Graduates. Being a Tech driven company, we engage the best people in Industry. Enterprises should innovate and embrace technology, bring in professionals for smooth running of the organization and implement modern practises, systems and processes. www.martupdate.com
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
SMEs Empowerment through Big Data Analytics Big Data comes with big challenges. Today, as data transcends into the ever-expanding realm of Big Data, a growing community of expertsis beginning to agree. They see in Big Data the same transformative, wealth-creating power. The problem today is that the ever-increasingdeluge of information—terabytes to petabytes to Exabytes—threatens to swamp us in a gusher of unfiltered, unstructured, unprocessed, and seemingly unmanageable information. As things stand now, the data ecosystem is highly fragmented. Between those who create data and those who could potentially extract value from it sits a labyrinth fraught withcomplexity, disparity, and miscommunication.If analytics are to be the new “refinery,” some of that fragmentation will need to be addressed with greater connectivity, trust, and efficiency. True Nature of Big Data, in seeking better-informed decision making, many organizations are running data warehouses and employing traditional data analytics— to reduce churn, bolster campaigneffectiveness, and counter fraud, to name a few applications. Big Data represents arevolutionary step forward from traditional data analysis, characterized by its three mainelements: variety, volume, and velocity. 1) The variety of data comes in two flavors: structured and unstructured. Structured dataenters a data warehouse already tagged and is easily sorted. The vast majority of today’s data, however, is unstructured, and fed by sources such as Facebook, Twitter,and video content. It’s random, difficult to analyze, and enormous.
Predictive Analytics
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Customer Segmentation
Product Performance
Sentiment Analytics
Campaign Analysis
Social Media Analytics
Big Data
Fraud Detection
2) The sheer volume of Big Data overwhelms the normal data warehouse. For example,Facebook reports that its users register 2.7 billion likes and comments per day. For many, this magnitude of data is intimidating: they can’t keep up with it, much less sort it,analyze it, and extract value from it.
Rajesh Angadi completed his BE, MBA, PMP and is Hadoop Certified. With 22 years of Information Technology experience he worked on projects for Unisys, Intel, Satyam, Microsoft, Ford, Hartford, Compaq, and Princeton. He is always fascinated by the
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Financial Risk Analysis
Rajesh Angadi
3) All of that data can be challenging to manage when flooding in at a velocity that, formany players, far outpaces their processing ability. In order for Big Data to be a game changer, it needs to be analyzed at a rate that matches the blistering speed at whichinformation enters data warehouses. In microseconds, decisions
latest technology coming up in the IT sector and striving to keep pace with it. Interests in Information Technologiesresearch areas like Hadoop Ecosystem, Predictive Analysis, Telematics, Clinical research with Analysis.
Customer Relationship Managment
must be made as towhether a particular bit of data deserves to be captured, and whether it has relevancewhen combined with other data. For example, the face of a known criminal amongthousands of images might trigger a “stop”; a pattern of credit fraud might set offwarnings; and indications of growing customer churn might inspire a coupon offer.Anytime there is an important anomaly in the data, it needs to be pointed out beforethe data is stored so that real-time action can be taken. By its very nature, network traffic is Big Data. In just one slice of the network— the mobilenetwork—there are 6 billion mobile subscriptions in the world, and every day, 10 billion textmessages are sent. Making Big Data BusinessJuly 2014
Friendly Big Data can also change how we interact with businesses. Moment to moment, consumers’interactions with the world around them create an often-ignored by-product: massiveamounts of personal data. These include searches on weather, price comparisons, purchases, and thousands of other daily choices and actions. By analyzing the datagenerated by all of this activity, Big Data offers an opportunity to revolutionize the wayconsumers and sellers interact. Some businesses are already moving to take action. Here are a few examples: 1) Wal-Mart’s inventory management implemented radio frequency identification (RFID)technology to connect real-time information between suppliers and its Retail Link datawarehouse. In the process, it reduced out-of-stocks by an estimated 16 percent. 2) FedEx achieved real-time visibility with shipping and consumer data across more than46,000 distribution and supply chain locations. Integration of its clinical and cost data led to the discovery of Vioxx’s adverse effectsand subsequent withdrawal of the drug from the market. Consequently, Big Data has already become top of mind among CIOs. 1. Revenue Assurance. Integrating intra-company data could hone identification andprevent fraud before it occurs. Fraud-intensive industries such as healthcare would particularly benefit. 2. Risk Mitigation. Every day, networks carry petabytes of critical information for enterprises, governments, and consumers, opening an everJuly 2014
increasing risk ofintrusions and security attacks. Data federation across wider geographic and networkfootprints would enable identification of suspicious patterns while signaling the needfor immediate action. 3. Customer Lifecycle. Businesses can zero in on instances of customer frustrationand offer an immediate response, thereby improving the consumer experience and lessening churn. Any service-based industry that values its customer relationshipswould benefit. 4. Market Execution. Big Data enables better market services through analytics, creating improved opportunities for cross-selling and up-selling. Banking and Internet commerce stand out as potential beneficiaries. 5. Product Innovation. Consumer input is critical in product development, and today many companies are already clamoring to know more about the likes and dislikes oftheir customers. Integrating noncompany sources of data such as socialnetworkfeeds would provide a more holistic view of how consumers feel about a product, potentially revealing the need for a new product before it is imagined or on thedrawing board. SMEs are beginning to see big data as something more than just an enterprise trend. Some are starting to realize that they can identify trends, patterns and gain competitive advantage by harnessing the power of growing data volumes. But he cautions that before rushing to implement a big data solution, small businesses need to take a step back and remember that bigger is not necessarily better. SMEs need to keep a sharp eye on cost and execution and take stock of their needs before www.martupdate.com
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LEADER SPEAK “In General, the trend for Small & Medium Enterprise is very encouraging in India, but being competitive in the changing scenario is the prime factor to get to the top. They should always try to reduce manufacturing costs along with quality systems, which can help them in terms of efficient pricing & quality product. Also, proper marketing planning will give an edge to the small & medium enterprises since they got limited marketing budget, wants maximum returns out of it and also they may not have marketing expertise. Marketing Plan should always be linked with business goals & objectives. Expertise, Innovation & Networking will fix the success of the SME in this competitive market.” Jyoti MIshra Executive, Nord India
establishing a data strategy. Smaller data sets from CRM platforms, social media or email marketing programmes can still provide much-needed insight to help businesses understand customer behavior patterns and showcase trends. The key is to find the appropriate vehicle to visualize and present this data in a way that reveals overlooked opportunities and actionable insights. This is what could make big data, assuming you
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can still call it big data, viable to deploy for SME businesses. Instead of a bank-breaking big data solution, small businesses should focus their efforts and dive deep into a few businesscritical sets of data – such as sales in a specific sector, or performance metrics during peak versus low seasons. This strategy will provide quicker and better results than companies that try to take on too much. Little data can yield big results for many departments of small businesses, for everyone from the sales department to the executive director. SMEs should be looking at big data. Interest in big data has reached new heights for many SMEs as they attempt to capture information and glean insights from ongoing conversations on social channels and the ‘digital dust’ consumers leave when browsing the web, shopping online, listening to music in the cloud and using smartphone applications. Like many other businesses, SMEs need to glean a better understanding of often volatile consumer behavior to know what they want before consumers do themselves.
nettle. We generally don’t need mountains of data to gain insight from it: we simply need to be asking the right questions, and smaller companies are just as capable of asking intelligent questions as bigger companies. Whether it be for big data or little data. Many SMEs are already running big data technology within their enterprise without even thinking about it as such, with MongoDB or another NoSQL database. MongoDB is already running in many businesses because of its ease of use and dynamic schema, so SMEs that want to get started with a big data project need not invest heavily in learning new technologies. Even Hadoop, which is complex, is likely to have its complexity hidden in the near future with applications that SMEs will use, pointing to companies such as Datameer, MetaMarkets and Infochimps. Big data advisors
Channel partners can play a significant role in the promotion and implementation of big data technologies.By integrating a vendor’s solution with other The problem is that many SMEs sector-specific tools, the channel lack big data expertise, are the can cater to the individual technologies to achieve these needs of an SME customer goals are available and more and eliminate the need for affordable than most small multiple expensive solutions. businesses expect, especially The channel plays an important when factoring in the losses role in being able to aggregate from a lack of investment in a and manage data from many world where competitors are. different sources, coming from What’s required are the smarts a combination of cloud and – knowing which questions to on-premise applications. Their ask of the data and how the knowledge of a vertical or market segment will provide a organization can best use what huge value-add for customers. it finds. SMEs can make great use of SMEs that have decided against big data if it includes drilling big data projects or are still down to the machine data layer: hesitant imagine the major Monitoring and understanding inhibitors to be not enough machine data can enable staff with expertise and the companies to identify and expected cost of big data resolve IT and security issues initiatives.Nevertheless, business with an accuracy and immediacy managers need to grasp the not previously possible.There’s
a really key role that the channel can play in helping companies of all sizes, SMEs included, to understand that using big data – particularly at the machine data level – can have a profound effect on operational intelligence.Massively improved IT systems management, rapid response to security threats and streamlined compliance processes that channel partners can leverage with SMEs as easyto- understand, quick-win scenarios.Channel partners can play a huge role in delivering big data to the SME market, as they can offer bespoke vertical solutions – such as retail, Telco or utilities-specific knowhow or applications.Further, channel partners interact with customers on a daily basis and understand their requirements better than vendors. They can also add training and services to differentiate their offering. Most partners are missing a trick with the SME market at the moment. For now, most channel partners seem more tuned to enterprise needs, which can assume more control of big data technologies such as Hadoop because of their inherently larger staff. But this overlooks a huge opportunity in the SME market, where the bulk of the world’s companies are, and where most of the world’s data is too. The channel partners which can tap this market will win big in big data. By giving SMEs access to financing that brings these technologies within their reach in an affordable way, big data/ analytics capability is making its way to smaller companies quickly. It’s a trend that’s only going to grow for small businesses. If those SMEs collaborate with a channel partner, they can take advantage of some of the most effective methods to gain necessary data insight, while gaining a deep level of industry expertise. July 2014
July 2014
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1
COVER STORY | EMPOWERING SMEs IN INDIA
Anniversary
Managing a SME in India Journey Towards Excellence - Part 19 As a continuation of last article, we will discuss on few more points to manage SME’s better in India
31. Challenges to spur Manufacturing win India In my series of articles on managing MSMEs in India, high focus was on what companies can do internally for their development. In this article, I will focus on Government, as one of an external agency which has a great influence on the growth of manufacturing sector including MSMEs. Let us dwell upon on role of the Government in empowering manufacturing sector including MSMEs to bring them into growth trajectory. Let us take a quick look at manufacturing sector in India. Compared to comparable economies in Asia like china, share of manufacturing in GDP of India is around 15-16% since 1980s where as it is around 30% in China. It is lower than that of Germany (21%) and Japan (20%), the countries with much higher wages and strong currencies. Realizing importance of manufacture in India to create job opportunities, to alleviate property, to increase standard of living, Government of India came out with a National
manufacturing policy in 2011 with the objective of increasing GDP share from manufacture to 25% and creation of 100 million jobs in ten years. The growth of manufacture in the country also supports software industries as it creates them new opportunities. According to one survey, in the world, India is in 134th position as far as conducive atmosphere is concerned to establish a company here. By addressing many points referred in this article, India can be a better destination for Industries. Key points identified as hurdles for the growth of manufacturing industries are inadequate physical infrastructure, complex regulatory environment and inadequate availability of skilled manpower. MSMEs are considered all over the world as engines of growth of economy of the Country. According to one of statistics, MSMEs in India for 45% of total industrial production, generating about 80% employment and about 40% country’s export. They contribute around 8% towards GDP of the country,
employing about 59 Million people with approximately 26 million units. They contribute in solving employment problem, earning more foreign exchange, utilizing natural and human resources optimally and eradicating regional imbalances. By sector wise, in numbers, manufacturing units have 30% share and rest are service industries. The challenges of MSMEs faced in manufacturing sector is bigger proportion compared to that of MSMEs in IT, pharmaceutical, agro-processing etc. To meet the ambition laid in National manufacturing policy especially potential employment generation at relatively less investment in rural and semi urban area, emphasis of Government should be high on MSMEs empowerment and development. The bigger brothers take care of themselves. To address above- mentioned hurdles posing as challenges, Government and Industry need to focus on the following areas, which are applicable for manufacturing industries including MSMEs. a. Land acquisition – To avoid
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buying fertile lands for the purpose of industry and later used as a means of real-estate investment, the land can be leased for the industry by the Government without giving the ownership. This way, only serious players will come into manufacturing. Industry set up to be encouraged only in nonfertile lands. b. Project clearance and Implementation – In view of bureaucracy, red-tapism, corruption at each level and multiple clearances, project time is getting prolonged. Though, single window system is being done in many states, still project clearance or opening an industry takes substantial time. See the case of Steel mill project set by Arcellor Mittal in Orissa with an investment plan of 12 billion USD and later called off after years as the company could not see light at the end of tunnel. Government is busy in making MOUs for new projects and showing number of MOU’s as their achievements. If we see conversion rate of MOUs it is pathetic. Focus should be on clear feasibility study, clearance and faster implementation
A Rank holder in BE (Mech),
Design & Development,
International Purchasing
Mysore University & MTech
Testing, Sales co-ordination,
Office (IPO) in India for
(Mech) from IIT, Chennai Mr.
Purchase, Logistics, Global
close to 10 years taking
P S Satish is the Director of
sourcing and Project
export purchase volume
Saraswati Industrial Services
management. He was
from USD 8 Mio to 80. He
based in Bangalore.
working with Robert Bosch
developed 30+ suppliers in India for global needs by focusing on improvements in organisation,
Group India for more than
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P S Satish
He is having more than
23 years including 3 years
28 years of experience in
in Germany. He headed
communication, strategy and waste elimination. He contributes through lectures and articles in supply chain management and supplier quality in forums like ACMA, CII, IIMM, ALUCAST,IIM. For more details visit www.satishps.com
July 2014
and not just on number game of MOUs. Projects can be split into three phases : • Pre-project approval- Here Government role would be to assure on land (could be on sale or lease), water electricity and any other legal support needed. • Post-Project approval – Here support is required in coordinating with various departments for master plan approval, environment clearance, clearance from panchayats and local bodies. • Project implementation period – Government should facilitate for providing water, power, support on effluent treatments and sector specific infrastructure. Then comes registration of sales tax, central excise, labour licenses, environmental clearances etc. • Operation period – Support on renewal of licenses and any other policy support to enhance business by the Government would be a boon. c. Power availability – With the increase of manufacture, requirement of power goes up. Focus is required on quantity as well as quality of power. By quality of power, I mean, power without any fluctuations and continuous availability in a stretch without disruptions. There is already a power shortage. Thermal power contributes about 57% and has challenges to get coals. There is not much scope further in Hydro projects. Nuclear power policy is not clear. The only hope to meet demand in years to come is renewable energies like solar and wind power. These two promising sectors have to pushed more aggressively. The power generation using diesel would become expensive with escalating crude oil prices. 80% of crude oil is imported today. So focus should be on manufacture of bio-diesel to supply to industry and also for July 2014
automobiles. d. Infrastructure – This plays a major role in the growth and sustenance of manufacturing sector. Significant developments and investments are required in construction sector, highways, ports, communication, water, sanitation, tourism, urban development, access to rural area. Considering huge investments in these areas, public private participation (PPP) and foreign direct investments FDI need to be encouraged. Suitable framework of policies for faster implementation encouraging investments has to be laid. e. Skill – Biggest challenge is going to be the availability of skills for manufacture. NSDC (National skill development council) is making lot of good efforts. But this is not enough unless Industries and manufacturing associations join hand for the skill development. Tax incentive for the industries focusing on skill development is a good idea. Today there is a lack of people to teach and they should be attracted towards manufacture by good incentives. The engineering syllabus in Institutes has to be updated regularly in line with the development in the industry. To attract skills, there is a need to make manufacture attractive and glamorous. The myth that manufacture is a dirty job has to be erased. Industries must see employees as assets allowing them to learn and contribute. Germany and Japan, in spite of increase of wages have sustained competitiveness in manufacturing by continuous improvements with new skills.
Applications Riveting Punching
Marking Staking
Embossing Assembly Riveting etc
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f. Availability of credit – It is an important factor not only for investments and also for working capital needs. This is critical issue today for SMEs. Suitable policies to address this are required.
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will support the industry in having only one or two slabs of taxes in the whole supply chain. In today’s regime of tax on tax, structure is complicated and transparency is limited. With cascading effect of tax structure, red-tape, tariff hurdles competitiveness will come down. GST will also broaden tax base, paperwork and will bring an end to dozens of taxes.
LEADER SPEAK “I’d like to quote a famous adage‘A journey of 1000 miles, starts with a single step.” When we talk about SME, they are the first steps an entrepreneur has taken to build a million dollar empire. SME’s in India is a very promising segment for us as many are growing at a CAGR of 15% and above; and as they are growing they are embracing new technologies and automation. In their own right they are aiming to be world class and this is where Daifuku is helping such companies grow to their full potential. Such SME’s are the future of India and this is also what our new Prime Minister is betting on. He wants to further improve Manufacturing in India, as this is what will create avenues for employment and betterment for the masses. I am looking forward to him implementing favourable policies to further kick start SME’s in manufacturing.” Asim Behera General Manager, Daifuku India
The process of approval has to be simplified for faster disbursements by financial institutions. g. Introduction of GST – This
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h. Labour laws – Our political system is scared to touch this. Need to think on flexible and friendly laws suited to industry. Without this, inefficiency will creep in and talented people may not stay in manufacturing sector in view of difficulty to manage labour. Like minimum wages, minimum work also has to be laid down. A balance has to be arrived between ‘flexibility’ as demanded by Employers and ‘Fairness’ as demanded by unions. i. Technology – Manufacturing Industries should be encouraged to invest in R&D, improvement of processes, material etc. High tax benefits for investment towards this have to be given. There is a need to bridge industry and research institutes so that industry can make use of theoretical knowledge available on technology in the institutes. In many areas of manufacture, there is a gap between current technology and the way the global companies are moving. The Government can take the role of facilitator to bridge this gap. A cell within the Government has to be formed to take inputs from manufacturing companies and related associations on the technology gap, then scout around the world to look for technology partners. There are options of technology tie up, joint venture, technical assistance etc. There is a good lesson from JETRO (Japanese external trade organization). It is a government body of
Japan with offices in many countries and aim is to promote Japanese companies in those countries. They motivate local companies of Japan to establish companies outside Japan and support fully in the process at all steps. They make use of industry experts as advisors in this effort. Overall, there is a need to increase value addition and technological depth in India’s manufacturing.
on local infrastructure. Industries to be spread also in backward districts for all round development of the country.
n. Special focus for MSMEs – To strengthen MSMEs, Government has to take a special care.This could be on share of business in bigger corporates, ease of opening a company or service for self-employment, technical assistance, quality up-gradation support, managerial development, j. Green manufacture – It metrology services, opening is a challenge to manage development as well as protect mini tool room, support on increasing competitiveness, the environment. Balance creating awareness on approach between these Intellectual property rights, two is required. Impact from Incubators support for budding manufacture to environment Entrepreneurs, marketing to be minimized. Emphasis to support, Design expertise to be on compulsory measures manufacturing, availability like rain water harvesting, waste water treatment, usage of critical raw materials at competitive price etc. Just of renewable energy, LED funding on few schemes are lightings etc. not enough. Close monitoring k. Sector specific parks – for effective implementation Depending on availability of is required to make them material, skill and market, independent. sector specific manufacturing o. Integrated approach parks textile, auto– In the Indian political components,machine tools, granite etc. to be encouraged. system, each ministry works independently for various This also helps to develop reforms and many times does expertise faster by cross not synchronize with others. learning. To take manufacturing to l. Break cartels – I am here heights, there is a need to specific about cartels of steel have integrated approach manufacturers, whose price so all ministries work for decisions have predominant common goal. How to do is effect on manufacturing a big challenge before the Industries. They work as cartels Government. to increase prices unanimously p. Simplification – It is high without clear logic. Manufacturers especially SMEs time that the Government focuses on simplification of suffer as they may be able to processes on dealing with the recover fully the increased Government. It could be for cost from their Customers. Government has to make clear new approval or renewal of licenses etc. It should start guidelines for fixing prices of steel. Similar logic is applicable with making forms simple and for commodity like cement etc. user friendly. Same documents are repeatedly asked by many In case of iron ores, it is a vice move to stop exports to cater agencies in multiple copies without any logical reason. to domestic needs. Because of complexity of m. Spread in the country – processes, there is undue delay The major manufacturing and Industries are harassed. industries are focusing in Situation many times is urban places putting pressure exploited to collect bribes in all July 2014
departments. Bribe is involved to open a shop, to get electricity connection, renewal of factory license, environment clearance, fire safety certificate, applying for central excise code etc. If any one running the Industry on their experience in dealing with Government departments is asked, answer will be known. Government has to increase vigilance to remove corruption from the system. Strict enforcement of Governance is also required to avoid corporate frauds. Corruption is a curse for the economy and the growth. It is easy to cover all aspects in policies or guidelines. Many points said above are covered in National manufacturing policy. Focus on meticulous implementation with a time line is required by the Government. Industries also need to support the Government in the formation and
realization of policies. Expertise available from industries to be taken to guide Government and to lead. Support of NGOs to be taken right at the beginning as they have become bottleneck in many project implementations. The journey to bring manufacture on fast track is tough and the Government needs to take tough but right measures. Only Will, focus and commitment is the way. India has tremendous opportunity in the manufacturing sector and hope we all exploit it. I will continue the series of article in the next issue. Please send your inputs, remarks,s uggestions to P S Satish, Mentor and Capability Developer, M/s Saraswati Industrial Services, Q 103, MantriParadise Apartments,Bannerghatta Road, Bangalore-560076. Have a good day.
arena than the supposedly allpowerful, “jump in feet first” corporate counterparts. Social media plays an important role in online marketing and is an ideal medium through which the Small to Medium Enterprise can acquire, nurture and increase leads. It also allows engaging with the customer base, while expanding it through referrals and recommendations.
LEADER SPEAK “SMEs have always played an important role in the economic growth of the country. One need not have to be a huge brand with a six figure budget to make social media work. There have been lots of surveys
Social Media helps in building customer relationships, adapting the feedback as an important tool for improvement, increasing the web traffic and at the same time with effective communication, the platform would help in winning new customers.”
done which in fact reveal that
Meenakshi Pradhan
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Group Leader- Corporate
succeed within the social media
Communications, INDO MIM
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1
QUALITY
Anniversary
Improving Productivity in R&D:
Saravjit Singh saravjit.singh@gmail.com
Current State Value Stream Mapping
The objective of Value Stream Mapping (VSM) in Development, i.e. R&D, is to record the current as-is processes being followed in R&D. This helps to identify and reduce all waste in the activities being performed.
PT = IPW = LT = %Act = C&A =
Compile Benchmark Data
}
Step
40 h 4 d 9 d 55.6 100%
PT = 4 h IPW = 0 d 1 : VSM LT Figure= 1 Phases d and Timing %Act = 50 C&A = 90%
Business & Marketing Plan
•
PT = IPW = LT = %Act = C&A =
Capture Voice of Customer
Cross Functional Team doing Project
•
Mapping
Product Manager, and Business Planner
VSM enables the mapping team to look at the actual work being done and identify value
Define strategic direction (“what”) Heavy frontline Involvment Value Stream Mapping
Cross Functional Team doing Following Project
Product Manager and MR Team
4 h 0 d 1 d 50 90%
“The objective of lean thinking is to continually reduce all forms of waste in work processes and activities therein.This enables us to keep improving quality and give zero defect products. Lean practitioners believe that processes, and not people, are at fault when errors occur.” Eight types of wastes in R&D were mentioned in this article.
•
Product Manager, and Business PerPlanner Process = 5 Days
Per Team = 10 Hrs
24 h 2.5 d 5.5 d Please see our May, 2014, issue 54.5 article, “Automobile Industry 80% R&D: Quality and Productivity Improvement Using VSM”. In this articleI wrote:
Macro Perspective
40 h 4 d 9 d 55.6 100%
PT = IPW = LT = %Act = C&A =
PT = IPW = LT = %Act = C&A =
to Mapping
Value Stream Process
Process
Process
Customer Delivery
Customer Request
Figure 2 : A Simple Value Stream
In this article we will show, step by step, the methodology to do Current State VSM.
adding and non-value adding activities. This current state is then analyzed and Future State VSM is designed.Total VSM project is done according to plan as shown in Figure 1.
When we do VSM, our objective is to remove waste from processes and ensure:
Value Stream
Process
Step
Process
Step
Process
}
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1. Defect-free delivery: Meeting target customer needs. Target customers are end customers for whom the product is being designed and developed. 2. Eliminate waste in the R&D: This improves R&D productivity. Let us start with two fundamentals. What is a value stream and what is VSM?
MIcro Perspective • • •
Identify the tactical “how” Heavy frontline Involvment Metrics-Based Process Maping
Figure 3: VSM – Different Components
48
24 h 2.5 d 5.5 d 54.5 80%
Product Manager and MR Team 4 Weeks Prior
Marketing Plan
T = PW = T = Act = &A =
Prepare
Capture Voice of Customer
Execute Transformation Compile Plan Benchmark Data
Develop Transformation Plan
Understand Design Business & Current State Future State
Value Stream: A value stream is all the activities required to transform a customer request into a product/service. This is shown in Figure 2. As seen in Figure 3, all processes collectively make up the value stream. Each process July 2014
has one or many steps (for example, first process shown has three steps). The VSM project team should consist of senior managers who have decision making authority for designing and implementing the Future State VSM. Value Stream Mapping for R&D uses special pictorial icons. Some of these mapping icons are shown in Figure 4.
Define Programme.There are
Basic Mapping Icons
six activities in this process
Business & Externel Marketing Plan organization
Capture Voice
(your of company may do this Customer
process differently – there is development):
Material recipts PT PT = 40 h =4h Work-In-Process & shipments IPW = 4 d IPW = 0 d Scheduling Process Block LT =9d LT Go See =1 d %Act = 55.6 %Act = 50 PT = 25m Manual Information C&A = 100% C&A = 90% Flow C/O=40m 2 Shifts Takt=60m
Benchmark Data 4. Prepare Product/Process
A typical current VSM of a Product Development Process is shown in Figure 6.
done and not how it should be
When doing a full VSM project, we do VSM for all activities in each of the five processes shown in Figure 6.
VSM, it helps to follow the
As an example of what activities may exist, let us look at Process 1 – Plan and
as the interviewer and the
Lead Time Process Time
Requirements.
In- Box
Data Block
5. Do Product Reliability Studies. 6. Finalize Engineering
Cross Functional Operator/Employee Team doing Project
I
1. Capture the Voice of the PT = 24 h Customer IPW = 2.5 d 2. Prepare LT Business = 5.5and d Marketing Plan %Act = 54.5 C&AProduct/Process = 80% 3. Compile
Assumptions.
Push Arrow
Product Manager, and Business Planner
Product Manager
no rigid universal format for and MR Team
R&D end customer requirements are recorded as shown in Figure 5. These requirements should include performance parameters of products being developed. Target customer requirements for a new product are studied from various points of view. Then the product and its manufacturing process are designed to ensure that the company delivers best value to the identified target customer.
Compile Benchmark Data
Electronic Information Flow Hours
Hours Minutes
Minutes
Movement by Truck Hours Minutes
Minutes
Timeline
Let us take an example to
Figure 4 : Mapping Icons for Development & Services VSM
illustrate VSM preparation. An engineering company develops
Outside resource icon
and produces air compressors. The Current State VSM for
Customers
the R&D of air compressors is recorded. Current State VSM records actual work being done.
26 projects per year Lead Time = 90 days Warranty : 6% of Sales
Again note: Current State VSM records how work is actually being
Data box with demand, lead time and quality measures Figure 5 : R&D Customer Requirements
done.
2. First set up formal meeting mapped. with the person whose activities b. Learn what is the objective of are to be recorded. Ask him to set aside two hours for this job. this process.
When recording Current State following six guidelines: 1. A team of two should record
3. Before meeting the person to c. Identify all the steps inthis be interviewed, do three things: process.
each process. One person acts
a. Go through the outline of the 4. Decide which team member process for which VSM is to be will be the interviewer and who
other as the recorder of all the observations.
Customers IT2
IT1
IT3
Process 5 Feedback, Assessment and Corrective Action
Process 1 Plan and Define Programme
Process 2 Product Design and Development
Process 3 Process Design and Development
Process 4 Product and Process Validation
PT,h
PT,h
PT,h
PT,h
PT,h
LT,d
LT,d
LT,d
LT,d
LT,d
Figure 6 : New Product Development Process VSM July 2014
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49
will be the observer-cum-
Special needs, such as
recorder.
training, limitations, licenses,
5. At the start, explaining to the interviewee what VSM is, and what is the objective of recording R&D processes. Example: “Our objective is to record what practically happens
1. Process name :
for the step. Could include
3. Step No : Step Name :
considerations of Cost, Value
4. Step description :
certifications, etc., required
2. Show step location within process
Analysis, DFMA, Safety, and regulatory requirements
5. Special considerations :
Box 6. Number of People:
6. Number of People: (Show breakup below, total in next column) Total No.
Show the number of people
to know what difficulties (in
needed to do this step at the
any) you face when performing
same time on the same piece
a process step.”
of work.Example: If two people
8. In-Process Waiting (IPW) :
Time
together perform the work,
9. Process Time (PT) :
Time
6. Give one blank copy of the Current State VSM: Data
then this is filled in as 2.
Recording Sheet to the person
Box 7. Amount of Work
being interviewed. Interviewer
Waiting for this Step: Waiting
and the recorder also start
Time (WT):
interview with similar blank data recording sheet.The Current State VSM Data Recording Sheet is shown in Figure 7.
In this space describe: 1. What is the unit of work? 2. What will be tracked? 3. What is the volume for a day,
How the information is collected in Data Recording Sheet is transferred onto VSM is shown in example as given in Figure 8.
a week, etc? 4. The number of people,
7. Amount of Work Waiting for this Step: Waiting Time (WT) :
records in some of the boxes in Figure 7 is as follows:
10. Lead Time (LT)(Record estimated, then tally with LT=WT+IPW+PT) Time 11. Activity Ratio(Activity %) :
%
12. %Complete and Accurate (%C&A) :
%
13. Notes :
Signature
Signature
Date: ........................ Interviewer Name: ............................. Recorder Name: ..................................................................
forms, files, cases or items waiting for this step.
Figure 7 : Current State VSM: Data Recording Sheet
(IPW)
This includes task-specific
this work step. Later on we
doing, talking, and thinking.
separately add WT+IPW+PT
This includes any of the eight
and tally with his estimate.
wastes that delay the process
We do not include time
after the work has been taken
spent waiting if performing
into the step. This also includes
other work is likely. Example:
Description could include
time taken during iterations,
Employee faxes a report to 20
important points about:
rework, and interruptions.
individuals. It takes 15 minutes
Describe each identified waste in step and time taken.
to program/feed the fax and 45 11. Activity Ratio (Activity %): minutes for the fax machine to finish. Here, in form we record %Act = (∑PT ÷ ∑LT) × 100
Box 9. Process Time (PT):
only staff time involved, which
Box 4. Step description:
1. What is includes in this step 2. What are the boundaries of this step 3. What all is included in this step Box 5. Special considerations:
The time it takes to actually
is 15 minutes.
perform the work, if one is able
10. Lead Time (LT) (Record
to work on it uninterrupted.
estimated, then tally with LT=WT+IPW+PT) LT is the amount of time it takes to complete this step,
Design Process Box
Data Box
Jobs in tray
Box 8. In Process Waiting
An explanation of important
5 shared @20%
P/T= 10 to 20 hours (project complexity
People icon with note of how many\people & estimate oftime spent on this process Process Time recorded as a range
Figure 8: Example of how a process step is recorded
50
Time
in each process step. We want
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measured from the end of the previous step to the end of this step.
Both should tally. In discussion with the respondent we can reconcile and arrive at best estimate
100 – %Activity = % Time Work is Idle Box 12. %Complete and Accurate (%C&A): This is the percentage of input that’s deemed “usable as is” by the person doing the work (activity). It is estimated by the interviewed person as % of incoming work on which the
Your respondent is first asked
downstream customer can
to give his estimate of LT
perform task without having to
based on his experience with
“CAC”:
July 2014
ess ture&Voice ting Plan ustomer
Compile Business Capture&Voice Capture Voice Benchmark Marketing Data Plan of ofCustomer Customer
ct Manager, duct Manager dndBusiness MR Team Planner
Cross Product Functional Manager, Product Manager Team and doing andBusiness MR Team Product Manager Project Planner and MR Team
= =4024h h = =4 d 2.5 d = =9 d 5.5 d =t 55.6 = 54.5 A= 100% = 80%
Capture Finalize DoCompile Business Product Engg & Voice Compile of Customer Requirements Reliability Benchmark Marketing Studies Plan Data Benchmark Data
DoCompile Product Business &Voice Capture Business & Reliability Benchmark Marketing Studies Data Plan of Customer Marketing Plan
PTPTPT= =4 =40 h 24h h PT ==24 IPW IPW =0 h=4d 2.5 d d IPW LTIPW=2.5 LTLT= =1 =9dd5.5 d d LT = =5.5 %Act %Act =50=d55.6 %Act 54.5 %Act 54.5 C&A C&A ===90% C&A =100% 80%
Cross Product Reliability Functional Manager, Product Manager Engineers Team and doing andTeam andBusiness MR Product Manager Designers Project Planner and Business
Planner
PTPTPT = =64=4=h40 h24hh PT PT 40 h2.5 IPW IPW IPW ===5.5 =0=4dd d d IPW IPW= LTLTLT d d LT= =14=14=d9d5.5 LT 9=50 d=55.6 %Act %Act %Act ===57.1 %Act 54.5 %Act ==90% C&A C&A C&A = =95% 100% C&A =55.6 80%
C&A = 80%
C&A = 100%
Product Manager Cross Functional Cross Product Reliability Functional Manager, and MR Team Team doing Engineers Team and Business doing and Cross Functional project Designers Project Planner Team doing Project
PT PTPTPT PT= =12 =64 =h440 h= h24 h IPW PT IPW IPW IPW IPW = =0.5 =45.5 =h0d4ddd= 2.5 d LT IPW= LTLTLTLT = =4.5 =14 =01d9ddd= 5.5 d LT=== 1=57.1 %Act = 54.5 %Act %Act %Act %Act 33.3 =d50 55.6 %Act ==90% 50 C&A = 80% C&A C&A C&A C&A = =100% =95% 100% C&A = 90%
Business & Finalize Do Compile Product Engg Do Product Marketing Plan Requirements Reliability Benchmark Data ReliabilityStudies Studies
Compile Finalize DoFinalize Product Engg Engg Benchmark Data Requirements Reliability Studies Requirements
Product Manager, Cross Functional Cross Reliability Functional anddoing Business Team Engineers Team doing and Reliability Planner project Designers Project Engineers and Designers
Cross Functional Cross Functional Reliability Team doing Team doing Engineers and Cross Functional Project project Designers Team doing project
=4h40 PTPT PTPT= =12 =64 hh h IPW =0h4dddd PT 64 IPW IPW IPW ===0.5 =5.5 LT= =4.5 =19dddd IPW= LTLTLT =5.5 14 LT d55.6 %Act =50 %Act %Act %Act == =14 33.3 =57.1 %Act C&A =57.1 100% C&A C&A C&A = =100% ==95% 90% C&A = 95%
Do Reli
E
PT h hh PT PT ===412 64 IPW d dd PT ==12 h5.5 IPW IPW ==00.5 LT ===14.5 dd d IPW=0.5 LTLT 14 LT = =4.5 d %Act %Act %Act ==50 33.3 57.1 %Act====90% 33.3 C&A C&A C&A 100% 95%
PT IPW LT %Ac C&A
C&A = 100%
Figure 9 : Current State VSM for Plan and Define Programme Process
• Correct information or material activities, for which the three individual %C&A are 90%, 70% that was supplied and 80%. This is how we get • Add information that should %C&A for the process: have been supplied First multiply 0.9x0.7x 0.8 • Clarify information that should have or could have been This gives 0.504
Here include any information about this particular process step that is important and not captured in other data boxes. Also add remarks and suggestions for improvement made by the person(s) performing this step.
clearer %C&A for a process is
In our example this is what happens for Process 1: Plan and Define Program. The five steps of process are recorded using
the multiplication of %C&A for all activities in the process. For example, a process has three
So, for process, %C&A = 0.504x100= 50.4% Box 13. Notes:
Besto
Hydraulic Manual Stackers
July 2014
Semi Electric Stackers
OUR PRODUCTS
We supply to:
Your Partner in Handling Systems
No: 31A/11A, North Phase, SIDCO Industrial Estate Ambattur, Chennai - 600 098, Tamil Nadu, India Mobile: +91 98407 79778, 99400 79116, 80560 08602 Email: sales@bestohandling.com, bestohandling@yahoo.com Visit: www.bestohandling.com
In case you need any further clarifications or help in understanding VSM in Development, please contact Saravjit Singh at saravjit.singh@gmail.com
Hand Pallet Trucks
Handling Systems Co.,
Automobile Industries Hotel Industries Bottling Plants Process Industries Chemical Industries Shoe Industries Cement Plants Sugar Plants Coil Handling Plants Tea Processing Industries Electronics Industries Textile Mills Food Processing Industries Dry-clean Industries Garment Industries Cold Storage
format as given in Figure 7. For all the five steps, when recorded data is compiled into a VSM, the final resultis the Current State VSM, as shown in Figure 9.
Battery Operated Stackers Battery Operated Pallet Trucks Hydraulic Scissor Lift Trolley Hydraulic Lift Tables Hydraulic Dock Leveler Hydraulic Goods Lift Dock Ramp Drum Storage & Handling Eqp
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51
1
TALENT MANAGMENT
Anniversary
Leadership Crisis – Are you Talent ready ?
Pavan Sriram pavan@ittige.com
Organizations face a myriad of challenges addressing what many have dubbed a leadership talent crisis with an increasing pressure to develop a sustained pipeline of leadership talent in the context of this “5/50 crisis - the fact that over the next five years, firms could lose 50 percent of their executives due to the confluence of workforce demographics, team dynamics and marketplace realities About a year ago, one of my clients in the IT R&D space realized their company was facing a problem - a huge problem - one that if left unattended could affect the competitiveness, profitability and future growth of this technology firm. The problem had nothing to do with how well those managers were doing their jobs, but rather who would do those jobs once they get promoted or exit for other prospective roles or employers. According to their CEO, if the organization’s HR department didn’t turn up the heat on the company’s leadership development efforts, there would be no qualified successors ready to step in. Fortunately, over the last 8 months they have done just that and now have defined leadership interventions in place. Other companies, unless they act now, may not be so lucky. Despite the fact that organizations are increasing their investments in leadership development, there is an emerging consensus that the supply of leadership talent is insufficient to meet the leadership needs of contemporary organizations. If you look at the primary source of learning, to the extent that leadership can be learned, is experience. Either personal attributes or situational characteristics that influence how much leadership development occurs via these lived experiences
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Making notable progress in our understanding of leadership development and succession management, we have identified four questions that assist in building an organization’s leadership pipeline. In “normal” times, well-designed succession management systems prevent chaos and confusion. They assist organizations to deal with executive departures, to cope with and to lead industry and marketplace changes, and to focus the organization on excellence. How you answer these questions, and how well you can integrate your answers, will provide you with insight and perspective into succession management. Will you be ready when there are too few leaders? A recent 12-month of study by SHRM of 300+ mid-sized organizations that included interviews with their HR and Learning and Development executives threw up some interesting insights. Among the findings were: • Gaps in the leadership pipeline (51%), creating a performance-driven culture (46 percent) and difficulty filling key positions (38%) are the top three talent challenges that respondents cited. • Just over 80% said leadership development is the talent management process most needing improvement and the function that best defines talent management. • Nearly 70% said talent
management strategy is the responsibility of groups other than HR, such as the CEO, top management, and/or line-ofbusiness executives. An alarming gap in the supply of leadership talent is confronting many organizations. It’s estimated that 1 in 5 top management positions and 1 in 4 middle management positions could be vacant within the next few years. Over the next 15 years, a 15% decline in the number of 35 to 44 year olds will occur. This decline equates to fewer people available to fill top and middle management positions. Succession management assists an organization to answer questions similar to these: • Do we have enough qualified people to fill key positions now and to grow our business in the next 3 to 5 years? • Will we have a sufficient pool of qualified candidates ready to fill key positions in the next 5 to 10 years?
• Do we have diversity and inclusiveness in our leadership positions? • Will we have continuity of leadership for key executive positions? • How will we retain highpotential employees in a competitive environment? Well-designed leadership development prepares an organization for its future. It brings about a sense of responsibility for organizational success. Effective leadership development requires careful examination of business strategy. The business needs to understand where it is, where it’s going, and how it wants to get there. Successful leadership development ensures a supply of competent talent to lead the organization into the future. How does talent identification relate to the organization’s leadership competencies? Do you remember the last review of talent with your July 2014
company’s chairman or chief executive? The all-too common scenario is an annual or biannual review, based on weeks of preparation by the HR department, squeezed onto an already overcrowded agenda. Talent identification begins with executive agreement on the leadership competencies needed to maintain and to sustain the organization. The best competency models blend organizational needs and individual leader capabilities to form a list of desirable leadership behaviours, characteristics, and skills. In application, competency models provide an on-going assessment tool for leadership development. Leadership development plans are the logical outgrowth of competency models. Multiple methodologies for talent identification exist and frequently include ranking protocols. Best practice organizations use multiple assessment methodologies. Regardless of methodology, effective talent identification cannot be a secret process. Talent identification systems deliver on their promise of creating individual and organization excellence when the processes are open and public. What are the organization’s approaches to Leadership Development?
Training and Development is insufficient to develop leadership capacity. Organizations plunder their succession management investment when leadership gaps are consistently responded to with training programs. Organizational resources are additionally squandered with one-size fits all development approaches. Talent is a corporate asset that needs to be optimized for the corporation’s longterm interests. Best practice organizations serve those longterm interests using multiple development methods. Organizations have scarce leadership development resources. Typically, less than 20% of corporate training budgets are dedicated to leadership development. Because of this resource scarcity, best practice organizations deploy their resources selectively. In other words, they recognize that leadership development approaches include an identified subset of the entire employee population. The focus in leadership development today relies on the creation, implementation, and follow-through of individualized development plans. These individual development plans link directly to the organization’s leadership competency model. Companies that succeed create learning opportunities incorporating the possibilities of failure and success, consider: promotions, lateral moves, course work, and special assignments. Does readiness exists for successful succession management? Effective succession management begins with careful consideration of organizational
July 2014
strategy. Approaches to talent identification and leadership development are unique to the organization implementing succession management. Four factors contribute to the successful development of the leadership pipeline. 1. Support from the top. The most effective means to ensuring a return from succession management is support from the organization’s top team. When senior executives are involved in succession management, a pan-enterprise view of leadership development is fostered. 2. Alignment of human resources systems. Succession management successfully integrates three mainstays of the HR function: development, performance management (compensation), and selection. Succession management is not an end in and of itself. The relationship between development, performance, and selection protects the organization’s investment. 3. Development of critical mass. Succession management supports the development of leadership cadres or pools within the organization. The support for leading and changing organizations is a difficult task, and the task becomes nearly impossible when there are few sponsored candidates for leadership
development. Leaders need other leaders to change. 4. Environment for success. During the last 20 years, significant progress has been made in leadership identification and development. Many businesses have moved from ‘survival of the fittest’ to embrace leadership development. The embrace, however, is often a short-lived one-week training program, a 360 degree feedback process, and opportunistic job placements. Despite progress, methods and processes to reliably produce leadership remain on the horizon. True leadership talent management success occurs when people across, down, and up an organization believe that leadership development is indispensable to the future success of the organization. This belief contributes to the innovation and organizational renewal. Please share with me your experiences at pavan@ittige.com and let me how you have been able to create a leadership pipeline in your organization. The author Pavan Sriram is the CEO of ITTIGE Learning, a performance-based training company that works with c-level executives to improve learning engagement with measurable business outcomes. www.martupdate.com www.martonline.in
53
1
CORPORATE MART
Anniversary
Grown Strong 1984–2014: Eplan celebrates 30th anniversary Three new subsidiaries in Japan, South Africa and Turkey: all signs point to expansion for solutions provider Eplan. The company is celebrating its 30th anniversary at the Hannover Messe. More than 40,000 customers, over 100,000 installations in more than 50 countries and over 700 employees – these are the signs of success for the company which began as a three-person shopin 1984. Our market for CAE solutions is the world,” states Maximilian Brandl, President of Eplan. He adds, “Eplan is excellently positioned as a global company and I see huge opportunities in view of growth marketsaround the world.” Eplan, the market leader for CAE solutions, is already present in more than 50 countries. Greater expansion is planned for growth markets in the USA, China, India and Japan. Timely investments in the area of consulting have ensured the continualgrowth of the solutions business. Professional Services, including consulting, implementation and support, now make up a substantial portion of Eplan’s revenues. And the bar for growth has been set quite high; Eplan is aiming for substantial doubledigit growth in 2014 as well – and the creation of more than 100 additional jobs. Clear commitment to software and engineering The FriedhelmLoh Group, the group of companies to which Eplan belongs, is also making massive investments in software and engineering.Cideon, a SAP system integrator and Autodesk Reseller with
about 500 employees, joined the group in September 2013. “Mechanical and electrical engineering are merging into mechatronics,” says FriedhelmLoh, owner of the FriedhelmLoh Group and goes on toexplain the group’s vision. “As a rule, Industry 4.0 scenarios require many elements; from software to interfaces on through to automation.” FriedhelmLoh first invested in Eplan back in 1986 (when it was still known as Wiechers & Partner) because he recognised an opportunity early on. Today he is specifically steering the FriedhelmLoh Group in the direction of optimised value chains: “Our customers expect potential improvements and savings from us, and that’s something we can achieve with Industry 4.0. In this context, the strong service network of Eplan, Cideon, Rittal and Kiesling is an excellent foundation for increasing our customers’ added value.” Innovation upon innovation What began in 1984 by substituting paper & ink with a PC & software has continued to develop: Eplan was and remains a trendsetter for optimising engineering processes. With Eplan Engineering Center and the automatic configuration of machine documentation based on modular design, Eplan’s experts have launched pioneering technology. And with the seamless Eplan Platform, customers in machine and plant engineering, in the automotive and transport sectors, in mechanics and automation and even in medical and energy technology also benefit from the increased efficiency of product development processes brought by standardised procedures, automated processes and continuous workflows.
“Our customers expect potential improvements and savings from us, and that’s something we can achieve with Industry 4.0,” FriedhelmLoh Owner and CEO, FriedhelmLoh Group
54
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EPLAN Software & Service develops CAE solutions and advises companies in the optimisation of their engineering processes. Customers profit from increased efficiency in the product development process through standardised procedures, automated sequences and consistent workflows.
“Eplan is excellently positioned as a global company and I see huge opportunities in view of growth markets around the world.” Maximilian Brandl President, Eplan EPLAN provides custom-made concepts for the system implementation, installation and smooth integration into the IT / PLM system landscape – based on standard engineering solutions. The service portfolio also covers customising, consulting and training. The development of individual and standardised interfaces for ERP, PDM and PLM ensures data consistency in product development. Consistent customer orientation, global support and innovative development and interface expertise are success factors. EPLAN is a subsidiary of Rittal Software Systems and is hence part of the FriedhelmLoh Group, which employs over 11,500 staff around the world and had a turnover of € 2.2 billion in 2012. EPLAN is therefore synonymous with continuity and investment security. Seven German EPLAN branches and a presence in more than 50 countries support more than 40,000 customers around the world with over 100,000 installations. “EPLAN - efficient engineering.” – the company motto emphasises the competence of optimised, efficient processes, which help customers to be competitive in the long term. July 2014
July 2014
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55
1
FEATURE ARTICLE
Anniversary
New Schmalz Nozzle Technology for Efficient Vacuum Generation Schmalz’ new eco nozzle technology has further optimized the energy efficiency of the ejectors, reducing compressed air consumption by up to 15 percent during active vacuum generation. Schmalz has also increased the suction rate by approximately 15 percent, meaning that this series can safely handle not only airtight products, but also porous cardboard. The vacuum specialist has enhanced the compact ejectors SCPS/SCPSi for dense parts, too: The evacuation time for reaching -600 mbar, the point at which automated movements are enabled, has been reduced by up to ten percent in the new series. Efficient vacuum generators with complete process monitoring The new compact ejectors not only consume a minimal amount of energy, they also feature integrated energy and process control to help make the entire process more sustainable. The vacuum generators measure and monitor all energy and performance-related process data. An IO-Link master allows bidirectional communication with higher-level field-bus systems – providing clear advantages for users: They can read out and monitor the data in their control systems. This means that you can view and optimize the entire vacuum system’s energy consumption “from afar”. The system operator can quickly
determine how efficiently the system is running and whether maintenance is required, which is essential for applications such as packaging processes in three-shift operation. An even broader range of applications with the ejector module ecoPump SEP Schmalz also offers the energyefficient ejector module of the compact ejectors SCPS/ SCPSi separately under the name “ecoPump SEP”, widening the range of potential applications even further: The compact ecoPump SEP is the ideal machine component for decentralized vacuum generation, for example in box erectors. Since it can be installed directly on the suction pad, line losses are minimal and, what’s more, the cycle times are incredibly short. Its
The compact ejectors SCPS/SCPSi are ideal for a wide variety of highly dynamic handling processes.
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Vacuum specialist Schmalz is presenting the new compact ejector series SCPS/SCPSi with new eco nozzle technology at the interpack trade show. The ejector module ecoPump SEP (left) is also sold separately.
broad operating range of -250 to -850 mbar makes it ideal for reliably handling a variety of workpieces. Even workpieces such as flexible cardboard or bags can be handled reliably thanks to the effective leakage compensation. The ecoPump SEP also allows division of vacuum systems into separate vacuum zones, without taking up a lot of space. The ecoPump SEP is available with three different installation diameters (7, 13 and 22 mm) and different performance levels, as well as in two different types: a high-flow (HF) version that optimizes energy consumption for porous workpieces like cardboard, and a high-vacuum (HV) version especially for
airtight workpieces like ampules. The helpful selection aid quickly guides the user to the right ejector module for his or her application – based on the workpiece, the distance between the module and the suction point, and the necessary suction rate. Integration of the ecoPump SEP is simple and saves space because, on the machine side, the ecoPump SEP is positioned right where the vacuum is needed. To operate the ejector module, all you need is a compressed air line – no vacuum line to the suction pad is needed. Schmalz also offers the housing SFE, which allows installation right on the suction pad, while also July 2014
WOrld Class PrOcess COOling EQuipments FOr VariOus ApplicatiOn
Process Cooling Since 1986 ECO FRIENDLY rEFRIGERANT- ENERGY EFFICIENT SCROLL
The compact ecoPump SEP is the ideal machine component for decentralized vacuum generation, for example when handling ampules.
acting as a retaining element for the suction pad. What’s more, the ecoPump SEP can also be inserted straight into a borehole on the machine side. The borehole shape is very simple to reproduce. This means that the module can easily be integrated into existing designs. The ecoPump SEP can also be removed, disassembled and cleaned without any tools. Schmalz India Pvt Ltd, Pune is the 100% subsidiary of J. Schmalz GmbH, headquartered in Glatten in the Black Forest, Germany, is one of the leading suppliers of vacuum technology worldwide. Its portfolio includes high-quality products and services in the area of automation, handling and clamping technology. Founded in 1910, the company with a proud tradition offers innovative and efficient vacuum solutions to customers from many different industries. The company has a total of 600 employees at its headquarters in Glatten (in the Black Forest region of Germany) and at its 16 overseas branch offices. 30 Years of Vacuum Technology Schmalz has been working in July 2014
the field of vacuum technology for three decades. During this time, the company has played a major role in the fields of automation, handling and clamping technology. Innovations from Schmalz have greatly influenced the latest technology on the vacuum technology market. Schmalz innovations are known for their energy efficiency, technological advances and top quality. As pioneers in the field of vacuum technology, Schmalz employees think forward and inspire their customers with innovative solutions. Their focus is on being as close to customers as possible. The company achieves this with its own international subsidiaries in all the world’s key markets, as well as sales partners in over 50 other countries. This enables Schmalz to offer personal, onsite consultations and excellent service. In the past 30 years, Schmalz has become a leader on the worldwide vacuum technology market – and plans to continue writing this success story in the future. For further details do write to Schmalz India Pvt Ltd, EL 38, J Block, MIDC, Bhosari, Pune 411 026. Tel: +91 20 40725500 Email: schmalz@schmalz.co.in Web: www.schmalz.com
WATER CHILLERS
REFRIGERATED TRUCK
WATER COOLER CHILLER
DISPLAY CABINET
COLD ROOM
OIL CHILLER
IMMERSION CHILLER
PANEL AIR CONDITIONER
A-105, 3rd Main, 2nd Stage, Peenya Industrial Area, Bangalore- 560 058 Karnataka, India Tel: 080-41512816, 2328 9889/ 8369 Fax : 91-80-2328 3191 e-mail : info@wernerfinley.com www.martupdate.com www.martonline.in
www.wernerfinley.com
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Versatile construction kit for robotics Ranging from online tools to complete e-chainsystems - igus presents its comprehensive solutions at Automatica.At this year’s Automatica, igus presents its innovations, which move robots reliably and extend their service lives. The products on show range from 3D energy chains to retract systems or specially developed cables for robot applications - igus presents products that give customers the ability to configure optimised, low-cost solutions for their applications. Using the appropriate tools from igus, these can be configured quickly and easily. igus is showcasing its products for the robotics industry at Automatica in Munich. These include the triflex TRCF energy chain designed specifically for multi-axis systems. This threedimensional chain consists of a completely enclosed system. The unique feature of this robot chain is that it can be quickly opened and filled at the same time, with the flip-open mechanism enabling chainlinks to be opened quickly and easily with a screw driver. This approach allows even large filling diameters to be inserted in record time, therefore triflex TRCF is suited for applications with dirt and chip exposure. trfilex TRCF 85 is now available as a new version with a nominal diameter of 85 millimetres and - as is customary for 3D robot chains from igus - with defined minimum bending radii and torsion stop dogs. This guides and protects hoses and cables reliably in the interior. A rugged stop dog system also ensures high strength. trilex TRCF can be shortened and extended as needed. Accessories, such as mounting brackets and protectors are also available. Compact triflex RSE retract system The compact triflex RSE retract system is yet another novelty shown at Automatica 2014. At a total weight of only 1.8 kilogrammes, an overall length of 44 millimetres, and a maximum retract travel of 500 millimetres,
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the cost-effective module is ideally suited for smaller robots. The system reliably guides the 3D energy chain, while also preventing the formation of loops. Complete cable product range for 3D applications The CFROBOT cables from igus put the finishing touches on the construction kit principle for the robotic industry. The cable product range for difficult robotic applications ranges from hybrid and control cables to bus, data, and fibre-optic cables, creating a comprehensive assortment optimised for use in 3D energy chains with respect to the cable design. For cores, braided elements and shields are constantly exposed to significantly changing stresses in torsion applications. For this purpose, highly wearresistant and halogen-free PUR or TPE jackets protect the torsion-optimised braiding elements against potential damage. The specialised designs guarantee that even fibre-optic cables work reliably in torsion applications. This was proven in tests with 27 million torsion movements. Deliveries are available starting at one metre without minimum order quantity or cutting charges. “QuickRobot” supports quick online configuration igus not only sells products optimised for the robotics industry, but also provides online
igus supplies various products for the robotics industry, which customers can ideally configure and assemble based on the construction kit principle.
tools, such as “QuickRobot”, which is used to configure the entire equipment for 79 robot types immediately. By indicating the robot manufacturer and the type series, the complete matching equipment for up to a maximum of six axis is displayed
within seconds. Ranging from large welding robots to small handling robots , this tool is capable of designing a wide range of applications. For further details visit www.igus.in June July 2014
July 2014
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“The Finishing Touch” by SHAVIV Tools
The SHAVIV line of hand deburring tools offers a complete range of cost-effective and efficient solutions for removing burrs from metal and plastics workpieces in a wide range of industry sectors. SHAVIV tools are renowned for providing “the finishing touch” in a host of applications, such as straight edges, internal/external holes, cross holes, flat surfaces, keyways and corners. High performance blades are available from SHAVIV in a variety of material types such as HSS, cobalt enriched, carbide, and diamond coated for both right and left-handed users. This vast selection also includes cost-effective TiN (titanium nitride) coated blades, which significantly increases the tool life as compared to noncoated blades. SHAVIV’s signature Mango II handle offers users excellent levels of comfort and control with its unmatched ergonomic design. The Mango II handle also features the popular pull-back collar technology, which enables fast and easy holder release and movement, and secures the safety lock mechanism to avoid commonly occurring workplace accidents. SHAVIV also offers an extensive range of tool sets and kits that are configured in order to provide solutions to a full range of jobs in a single package. SHAVIV’s Scrape-Burr, Glo-Burr and Cera-Burr tool sets provide compact, multi-functional solutions for high quality finishing and
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scraping applications in industries such as automotive, metal, electrical, plastics, die and mold, and plumbing. The new Golden Flex Sets from SHAVIV provide the latest economical deburring solutions for standard and heavy duty applications in two convenient sets. Featuring a durable Aluminum handle and 5 different pairs of TiN coated Multipurpose blades in each set, SHAVIV Golden Flex B & E Sets provide superior value in terms of wear resistance, surface finish and significantly increased tool life. SHAVIV also maintains its universally popular line of products, such as the classic red handles and the extra-sturdy aluminum handles. The SHAVIV Bonus Packs further provide the most popular blade and holder combinations for long-reach and close-up applications with each pack including a free Mango II handle for enhanced costeffectiveness. The complete SHAVIV deburring range is available from Vargus Ltd., the renowned manufacturer and supplier of quality tooling for threading, turning, milling and grooving applications, as well as hand deburring tools. For further details contact Vargus India, Vardex Tooling Pvt Ltd, Unit Nos. 16 & 20, 1st Floor, Mega Centre, Pune - Nasik Highway, Chakan, Pune -410501. Te: +91 2135654748 Email : info@vargusindia.com Website : www.vargusindia.com
Drawn CuSn8 bronze from FRW Carobronze
FRW Carobronze, a distributor specialised in special bronze alloys with high technical characteristics for machine shops, now offers a complete range of drawn CuSn8 bronze bar stock. Its inventory of bar stock is customshaped according to more than 10 international standards, available in more than 50 sizes and ready for 48-hour delivery anywhere in the world. FRW Carobronze carries a vast inventory of round, square, flat or tubular drawn CuSn8 (UE9P) bronze bar stock in lengths of up to 3 metres and diameters of 2-160 mm (round), 8×8 to 60×60 mm (square), 8-55 mm (hexagonal), 3×20 to 35×50 mm (flat) and 6.4×13.3 to 196×221.5 mm (tubes) and thicknesses of 2-30 mm (sheets). Its tensile strength (Rm) ranges from 450 to 620 N/mm2. FRW Carobronze’s bar stock is used particularly for making friction parts for industrial applications (drive shafts, connection parts, piston rings, etc.). Its bar stock has excellent mechanical properties, such as a highly homogeneous structure, a very high admissible load, high wear resistance, and high heat resistance (up to 300°C). Each FRW Carobronze product is delivered with a material certificate. Its drawn CuSn8/CuSn8P bronze bar stock can be made in accordance with number of standards: EN 12163-12167-12449 CW459K and CW453K, DIN 17671, DIN 17662, NFL 14703. Grades in stock may be ordered in any quantity and shipments of single items are possible. Continuous-cast products are also available on request for larger sizes. FRW Carobronze also offers custom research of materials and can also have special alloys made on request. Do write to anthony.regnier@frwcarobronze.fr about your requirements. July 2014
Ha-VIS eCon switches stand for high efficiency and performance
High efficiency and performance, along with simple and quick operation – the new Harting Ha-VIS eCon switches place a premium on meeting these demands. Optimized and designed for jobs in harsh industrial environments, unmanaged Ha-VIS eCon Ethernet switches equally enable the costeffective expansion of existing network infrastructures, as well as the development of new industrial networks. The compact, cost-effective Plug & Play switches can be easily and quickly put into operation.
July 2014
Two different compact, space-saving housing designs guarantee the best possible use of available space in the switch cabinet. Powerful Power over Ethernet Plus (PoE+), full Gigabit Ethernet and an industrial temperature range of -40° C to +70° C broaden the wide product portfolio with additional functionality. Thanks to their approval for use in industry as well as the maritime market and transportation technology, the switches can be optimally selected for each application. For further details visit www.harting.in
Rotolinear offers Metal Bellow Couplings Rotolinear Systems offer Metal bellow couplings, safety couplings . These Bellow couplings are with features like backlash-free, high torsional stiffness, precise transmission of rotational angle, Maintenance free, low inertia, compensation of radial, axial and angular misalignment etc. Metal bellow couplings are available upto torques of 5000Nm and Miniature models upto 10Nm. Different models like with Collet clamping, Conical hub, Outer conical hub, Flange mounting, Set screws, Expanding clamps etc are available. Safety couplings (Torque limiters) are available upto torque range of 1600Nm. Four models are available in Safety couplings 1st is for mounting tooth belt pulleys, Sprocket wheels, Spur gears the 2nd model bellow type with conical hub, 3rd Bellows type with collet clamp, and 4th with servo insert type collet clamp. Single position engagement, Multiposition engagement and full disengagement options available. For further details call +91 80-23572855 or write to rotolinearindia@vsnl.net
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Wendt India launches E3500S CNC Vertical Honing Machine
Prodaid develops Feeder for Auto Weigh & Packing
Wendt (India) Limited have carved a reliable niche for their Super Abrasive Products, in the engineering industry, setting bench marks in quality and performance. Having set the standards with their ever growing range of Super Abrasives, Wendt some years ago forayed into manufacturing Special Purpose Grinding Machines for specific applications in the engineering industry. These grinding machines not only matched the requirements of the user industries but also became successful examples of import substitutes. Continuing their endeavor to offer world class machines, Wendt entered into a technical collaboration with Delapena, world leaders in Honing Technology to offer Indian Industries world class Honing Machines. These machines have already redefined the quality and performance standards of honing in India. Recently,on 2nd June 2014, Wendt launched the latest addition to their family of honing machines: CNC Vertical Honing Machine E3500S in the presence of the Chief Guest, Dr. T S Shivashankar, V P Operations of Indo-MIM and Guest of Honor, Mr. P S Suresh, Dy. General Manager (TE & D) of Hindustan Aeronautics Limited. A host of customers from the user industries too graced the launch. This addition to the Wendt family of honing machines is clearly keeping in mind the precision honing need of various components manufactured for mass and batch production application. E3500S is a versatile machine with tool expansion and stroking speeds through servo drive with Siemens control Systems. This machine has a stroke of 500mm with diameter ranging from 3-25mm with rotary indexing table and in process gauging as optional. Salient Features: • CNC Siemens Control System
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Bengaluru based Prodaid Engineering have developed a Feeder for Auto • Adjustable tool expansion & stroking speeds through servo drive • Variable spindle speed • Reduced cycle time
Weighing & Packing based on unit weight up to 20 to 25 Kgs. capacity. The arrangement is suitable for Packing products of Automobile Ancillaries, Engineering, Pharmacetucals, FMCG etc.,
Tapping into their vast experience and technological strengths, Wendt also offers
industry,
Customized tooling and tailor made diamond / CBN abrasive honing stones for specific applications
Loading of components to the container
This machine is ideal for applications like:
It consists of Bowl Feeder for Auto kept on the Load Cell weighing & then to Packing operation. Two Operators are able to pack unit packages from 500 gms and up to 20 kgs capacity, at the
• Hydraulic Spool Valve Body • Con Rods • Gears • Fuel Injection Parts • Turbo Housings • Sleeves etc. to name a few
rate Of 5- 10 packages per minute till it is
Senior Executives of companies like Bosch, Delphi, Ashok Leyland, TVS, Musashi,IndoMIM, Rane TRW, HAL, VST Tillersetc. who attended the launch, showed keen interest in the CNC Vertical Honing Machine E3500S.
very easily by any Operator within few
This State of the Art and yet Economically Priced machine, will be a valuable asset tothe honing facility of customers across the globe. For further details visit www.wendtindia.com
weighed(depending upon the quantity to be packed ) sealed, serial numbered and transferred to pallets. The Variation in the quantity to be packed can be Set in the Load Cell minutes. The system is very simple in construction and reliable and it requires only 250 VA power, using Single Phase A.C. Suppply. For further details write to Prodaid Engineers Pvt Ltd, 18, Govt. P.U. College Road,B.D.A. Industrial Suburb, Peenya, Bengaluru - 560 058. Telefax: +91 80 2837 4961 Tel: +91 80 6534 5363, 2279 1677 E-Mail: prodaid@gmail.com Visit: www.prodaid.com July 2014
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Precision Camshafts partners with EMAG to introduce Assembled Camshafts Technology Precision Camshafts Limited (PCL), one of the world’s leading Chilled Cast Iron camshaft manufacturer announced a strategic alliance with EMAG Germany, to acquire the widely proven and accepted Assembled Camshaft technology which
uses the ‘Force Free Heat Shrink’ – a process which EMAG has patented. The improved cost competitive process developed through this alliance between PCL and EMAG Germany will be the first for any Indian component manufacturer. PCL will introduce the new ‘Force Free Heat Shrink’ technology in India and offer this solution to OEM’s around the world and in India. PCL will be a one-stop solution provider for Chilled Cast Iron, Ductile Iron Induction Hardened and Assembled camshafts for mid-size passenger cars - all Under One Roof. PCL plans to develop next generation camshafts which will be required by OEMs in FY 2020. New technology to further boost PCL capabilities
“PCL has been the industry leader in delivering quality and world-class camshafts to its customers consistently. We have created benchmarks across all processes and are surpassing customer expectations time and again,while working with some of the largest marquee brands in the Indian and the global automotive industry. PCL, through the acquisition of this technology will be a complete solution provider forcamshafts manufactured by different technologies.”
Yatin Shah Chairman and Managing Director Precision Camshafts Limited
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EMAG specializes in the entire spectrum of the machining process and is a trendsetter
PCL will have exclusive rights to this new technology worldwide. This PCL- EMAG alliance will further strengthen the market leadership of both entities in the coming years and will further help in developing next generation camshafts.
in the field of vertical turning centres for
Assembled Camshafts are used predominately by OEM’s in Europe and now China and some developed countries, have increased strength of material and are lighter in comparison to conventional camshafts, both of which help in improving fuel efficiency and reducing emission.
our products & technology will not only help
Over the years, PCL has achieved success across the world, manufacturing over one million ‘Chilled Cast Iron’ camshafts per month. PCL has also recently introduced ‘Ductile Iron Induction Hardened’ camshafts to its stable of products andwith the introduction of Assembled
all machining needs. It is a privilege to be associated with Precision Camshafts India, as it will mutually benefit both entities in the long run. Using PCL’stechnological prowess and best practices in the manufacturing process, meet the new demands of our global customers but our synergieswill be leveraged from time to time to meet the growing demands of the automotive industry in the future.”
Dr.Andreas Mootz Managing Director, EMAG Automation Camshafts,PCL will be the only camshaft manufacturer in India, thereby becoming a one-stop-solution for camshafts required by mid-size passenger cars globally AllUnder One Roof.
July 2014
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SCHUNK develops Compact powerhouses with integrated intelligence On the basis of experience with the first PowerCube generation, which has been success-fully used in laboratory, research, and industry applications, SCHUNK has further developed the modules of the second PowerCube generation, placing greater focus on heavy-duty use in industry. With the PR 2, PDU 2 and PSM 2 highperformance rotary modules, SCHUNK, the compe-tence leader for clamping technology and gripping systems, has expanded its mechatronic program with three especially compact drives with compact performance. All regulating and power electronics have also been fully integrated into the new modules. This saves the need for an external controller, minimizes the cabling necessary and reduces susceptibility to errors. Equipped with standardized plug connections, the modules can be quickly and easily con-nected. Control
can be provided via Profibus (up to 12 Mbit/s) or CAN-Bus (up to 1 Mbit/s). For commissioning and parameterization via PC with the SCHUNK Motion Tool, the modules have a USB device connection. Addressing is done manually via an easily configurable rotary encoding switch. Initial mod-ule movements can be realized manually via a DIP switch. The status of each module can be seen on an LED display. Due to Harmonic Drive gears, the PR 2, which was designed as a rotary module, and the PDU 2, conceived as a linear axis drive, achieve very high torques of between 16 Nm and 184 Nm, depending on the size. For fast movement of small masses, the direct-driven PSM 2 can be used. At a torque of up to 0.7 Nm, the compact module achieves speeds of up to 4,800 rpm. Po-sition, speed and torque can be individually controlled on all three modules. An increment encoder ensures
The next generation of PowerCubes: The PR 2, PDU 2 and PSM 2 intelligent mechatronic modules will convince you with maxi-mum performance and minimum space requirements. The regulating and power electronics are completely integrated.
high positioning and repeat accuracy. Positions approached can be relia-bly secured via an integrated holding brake. Two digital inputs have been provided for the evaluation of sensor signals. For further details write to info@in.schunk. com or visit www.in.schunk.com
XXL hall, Pfronten The most up-to-date large machine assembly facility in the world With a new high-tech assembly hall, DECKEL MAHO Pfronten has now paved the way in good time for additional growth – at the highest level. Following the success of the DMU 340 P and DMU 600 P XXL machines, the plant was heading for a capacity bottleneck, particularly once the DMU 270 P had been launched and the expected orders had materialised. By June 2014, the world’s most up-todate large machine assembly facility, with a total floor area of 1,071 m², a building height of 16 m and a crane capacity up to 100 t, will be linked directly to the plant. A total of up to 4 large machines can be assembled here at the same time. The foundations, with dimensions of 28 × 9 × 1.65 m, are even designed to enable two of the giant DMU 600 P machines to be built in their entirety. The fully glazed building facades on the north and east sides together with a glazed link to an adjacent building in the style of a glass factory provide a visual highlight. The adjacent building is two stories high and
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provides space for production, offices and a large conference room. From June 2014, it will be possible to assemble up to 12 large machines per year here with a throughput time of 16 weeks, which doubles the previous capacity. A sophisticated air- conditioning system will ensure optimum ambient conditions by keeping the temperature in the building constant to ±1 °C. The main features of the air-conditioning system are: • Groundwater cooling (by heat exchanger) • Gas heating (by heat exchanger) • Introduction of cold/hot air by means of
ventilation channels and motorised fans: o – Pipes in the floor (concrete core activation) o Ventilation channel system under the roof o Ventilation control centres on the roof The new building will be supplemented by two pre-assembly stations on a floor area of approx. 120 m² in the adjacent building, where the gantries will be prepared for subsequent final assembly. There will also be a material and logistics area here, from where components which are delivered “just-in-time” will be smoothly channelled into the assembly process. For further details visit www.dmgmori.com July 2014
July 2014
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Haas Automation partners with Scuderia Ferrari
“KUSAM-MECO” a leader in the field of Test & Measuring Instruments in India since three decades, has introduced a full range of convenient, portable and reasonable priced meters for the technician. These meters are checked before dispatch to ensure proper functioning of the instruments.
Haas Automation, the largest CNC machine tool builder in North America, has partnered with Scuderia Ferrari, the most successful team in the history of Formula One. Beginning with the 65th British Grand Prix at Silverstone, Haas Automation is featured on the lower side-pods of the Ferrari F14 T piloted by championship-winning drivers Fernando Alonso and Kimi Räikkönen. Haas Automation branding will be seen on the cars for the remainder of the 2014 Formula One season and throughout the 2015 season. Scuderia Ferrari took its first Formula One victory in 1951 at Silverstone and currently has 221 race victories, with 16 constructors titles and 15 driver championships. Twotime F1 World Champion Alonso and 2007 F1 World Champion Räikkönen comprise Scuderia Ferrari’s driver lineup, with the duo combining for 52 F1 victories (32 for Alonso and 20 for Räikkönen). “We are pleased to welcome Haas Automation as our newest Official Supplier,” said Scuderia Ferrari Team Principal Marco Mattiacci. “This agreement strengthens our existing connections with the USA, an important market not only for our company, but also for Scuderia Ferrari, as it is one where the team already benefits from several important partnerships. “Over the past few months, we have been exploring with Haas a number of potential areas of collaboration, and this agreement is an immediate opportunity that we are pursuing, which proves Haas’ interest in Formula One. This collaboration will enable Haas Automation to reinforce its brand awareness and promote its products and services around the world, thanks to the appeal of Scuderia Ferrari and the global reach of Formula One. We are therefore delighted to make this announcement,
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New Range of Measuring Instruments from Kusam
“Haas Automation is a premium brand, and there’s no better way to drive that point home than to connect it with Scuderia Ferrari on motor racing’s biggest stage. Scuderia Ferrari is F1’s most prestigious and decorated team with a large, loyal and passionate fan base. Exposing Scuderia Ferrari fans and Ferrari customers to the quality of Haas Automation CNC machine tools is an important first step to expanding our global reach.”
Gene Haas Founder, Haas Automation. which sees another premium brand join our portfolio of partners. In parallel, but as a separate project, Haas is committed to entering Formula One with its own team, a testimony to the growing appeal of our sport in the USA and on this front, technical discussions are ongoing between us.” Haas Automation’s partnership with Scuderia Ferrari also allows the company to become engaged in the business of Formula One before becoming a primary sponsor of Gene Haas’ planned Formula One team. Haas’ team will debut in 2016, where it will become the first Americanbased F1 team since 1986.
The Environment Measuring Instrument range consists of about 50 instruments viz. Anemometers, Thermo Hygrometers, Sound Level Meters, Lux meters, Paper, Wood & Grain Moisture Meters, Solar Power Meter, Infrared Thermometer, EMF Detector, Contact Type Thermometers, Thermo Anemometer, Temperature / Humidity Data Logger, CO2 /Temp/ RH Monitor Data Logger & Hygro Thermometers etc. More details are available on our website www.kusamelectrical.com. They are available conveniently through a chanel of about 45 dealers across the country. Information is available a call away at 022-27750662 or by email at kusam_ meco@vsnl.net . Working closely with Biotech, Chemical, Food, Pharmaceutical, Pollution, Monitoring Industry, Printing Industries our products find wide applications in them. “KUSAM-MECO” also offers a full range of Test & Measuring Instruments ‘UL’ approved Digital Multimeters & Clampmeters, Insulation Resistance Testers etc. For further details write to Kusam Electrical Industries Ltd, G-17, Bharat Industrial Estate, T.J. Road, Sewree (W), Mumbai :- 400015 Tel: +91 22 24156638, 24124540, 24181649, 27750662 Email :- kusam_meco@vsnl.net, sales@kusam-meco.co.in Web :- www.kusamelectrical.com July 2014
FARO to showcase its popular solutions at Amtex To FARO, India is a growing market bursting with potential. With its rising literacy levels and growing talent pool, India is experiencing unprecedented development as a nation. Increasingly,manufacturers are starting to adopt quality measurement tools to achieve better accuracies and productivity. This is exactly where FARO comes in – tobe our customers’ most trusted source for 3D measurement technology. At AMTEX 2014, FARO will be showcasing its most popular 3D measurement and documentation solutions. Heading the line-up at the
“FARO is pleased to be participating in a dynamic show like AMTEX. Since we first established our office here in 2004, India has consistently been an important market for us. We are excited to showcase our latest product offerings to the machine tools industry, as well as to connect with existing customers and new prospects at AMTEX.”
Quah Beng Chieh Head of Marketing (Asia Pacific), FARO
July 2014
machine tools trade event is the latest member of the best-selling FaroArm® product line, the FARO® Edge ScanArm ES with Enhanced Scanning Technology (EST).EST is the combination of multiple hardware and software improvements designed to boost performance by improving the ability to scan challenging surfaces. Materials with dark or reflective optical qualities can now be scanned with less effort and without the need for sprays or surface coatings. New and improved filtering algorithms automatically adjust and optimize the scanning parameters for plastic, metal, or a variety of surface finishes and colors. The new HDR (High Dynamic Range) Mode of the ScanArm ES allowsusers to scan materials with contrasting colors (i.e. black and white) simultaneously. Combining the Laser Line probe with the flexibility of the FaroArm, the ScanArm ES packs a big punch in a small, portable form, with an excellent price-to-performance value to boot. It is the ideal tool for product development, inspection, and quality control. In addition, this device also offers capabilities such as point cloud comparison with CAD, rapid prototyping, reverse engineering, and 3D modeling. Apart from the ScanArm ES, visitors can also look out for the FARO® Laser Tracker Vantage, and the FARO® Gageat the FARO booth -F33 in Hall 12. Further information: www.faroasia.com/in
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Indo-MIM applauded by MPIF with four awards fabrication methods, production efficiency, sustainability contributions, and manufacturing cost reduction capable with powder metal technology. Throughout its long and distinguished history, MPIF has been a stalwart champion of this innovative technology helping advance the art and science of Powder Metallurgy while promoting its benefits to prospective end users.
Indo-US MIM Tec Pvt Ltd (Indo-MIM), a leading global supplier of precisionengineered products using Metal Injection Molding (MIM) has received four MPIF PM Design Excellence Awards at the recently concluded 2014 World Congress on Powder Metallurgy & Particulate Materials (PM2014) at Orlando, Florida. Indo-MIM has earned the Grand Prize in the Automotive—Engine Category for four MIM parts—Blank discharge check, Stop discharge check valve, Valve discharge check, and CRV spring seat— that goes into a device which controls fuel
“Winning parts of Indo-MIM in the MPIF awards aptly demonstrate that the technology is carving a niche to demonstrate their best of innovative skills and such recognition is an icing on the cake! Tapping on the huge scale of unprecedented technological portfolio, Indo-MIM today is geared to offer greater flexibility in the mode of business offerings; so that our customers get exactly what they want, when they want it and wherever they want it and at this time- getting applauded for capabilities is something happened at the right time to boost our morale”
Krishna Chivukula Jr. CEO, Indo-MIM 70
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flow in Gasoline Direct Injection or GDI and pumps. The design was judged by the fabricator to be perhaps the most complex and high‐volume part ever made by MIM. The customer realized cost savings of close to 35%, while the pump performance was improved by modifying the whole geometry to enhance flow dynamics, with the result being a 10%‐to‐20% fuel economy boost. In the Automotive Chassis category, IndoMIM received the Award of Distinction for the Spur Gear, which is used in the rear‐door assembly of SUVs to enable their opening in the event of loss of automatic control function. Made via MIM and achieving estimated savings of 30% in the process, th is gear is an outstanding example of MIM’s ability to meet close tolerances on concentricity and perpendicularity on a part with such a lengthy gear profile. The fabricator delivers 720,000 parts annually.. In addition to this, Indo-MIM received the Award of Distinction in the Hardware/ Appliances Category for three parts— Output shaft, Lever and Cover—that are assembled into the quick‐change mechanism of a Dremel multitool. The mechanism allows for the swapping of any tool bit within seconds. In the medical/ dental category, Indo-MIM received an Award of Distinction for a Sound tube used in a hearing aid for one of its eminent customer. Fabricated via MIM, the highly complex part achieves all its features in the as-sintered condition, with only glass bead blasting for a better finish performed as a secondary operation. The part provides 20% cost savings over competing forming processes and the fabricator delivers 500,000 parts annually. MPIF’s Design Excellence Awards recognize designs emphasizing the improved net shape, precision, innovative
After being recognized by MPIF in 2013 and 2011, this is the third time Indo-MIM has been conferred for their capabilities in such a global platform for their enhanced skills and capacities. Indo-MIM headquartered in Bangalore, India is a leading global supplier of precision-engineered products using Metal Injection Molding (MIM) as the core manufacturing technology. The MIM process combines the design flexibility of plastic injection molding with the strength and integrity of wrought metals to offer cost effective solutions for highly complex part geometries. The state-ofthe-art facilities are fully integrated to provide our customers with a one-stop resource for conceptualizing, designing and manufacturing complex precision components and sub-assemblies and the capability to offer the best of world-class technology at competitive prices, providing a significant advantage to our customers all over the world. For more detail visit: www.indo-mim.com
“Indo-MIM has always claimed to give a platform for innovative thinking and being recognized globally in such a platform proves again and again that sky is the limit for Indo-MIM to showcase their outstanding skills and capabilities.”
Jagadish Holla Vice President (Marketing), Indo-MIM July 2014
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THE LAST LEAF Dear All, July marks the anniversary of MART, and this year is the 10th anniversary, making it special. We celebrated Doctor’s Day and Chartered Account’s Day on 1st July. The second half of the calendar year commences with this month, hence a ray of hope. India said that it needs $1 trillion of investment by 2017 to upgrade its creaking infrastructure. Prime Minister Narendra Modi has vowed to focus on infrastructure. The country has expressed interest in attracting investments from foreign development agencies and companies to help finance new roads, railways and cities. As a result, France has proposed to give India a 1 billion euro ($1.4 billion) credit line to fund sustainable infrastructure and urban development projects, as per the statement of Foreign Minister Laurent Fabius, during his recent visit to New Delhi. He said that the credit line would be available over three years and would be delivered through the French Development Agency, citing the importance of technology and finance to realize the brilliant ideas available in the country. He has come to attend the negotiation of the deal to supply 126 Rafale fighter jets manufactured by Dassault Aviation under technology-sharing and India production contract. Japan is a key investor in the Delhi-Mumbai Industrial Corridor, a mega infrastructure project that envisages dozens of new industrial zones and cities sprouting alongside a 1,483-kilometre highway stretch between India’s biggest two cities. (Courtesy : www.eco-business.com) Fearing a lapse of excise benefits by June-end and enticed by attractive discounts, customers flocked to showrooms of select car markers, pushing up sales by 31% for Maruti Suzuki and by 36 % for Ford, in June. Car sales posted its second straight monthly gain, with most major players such as Maruti Suzuki, Ford, Hyundai and Honda Cars posting robust sales in June, signaling a positive turnaround in coming months. As per records, car sales grew in the range of 14% in June over last year after May witnessed a growth of 3%. Car sales surged after 15 successive months of decline in the domestic market. Leading automakers also reported better-than-expected June sales in USA. China, once the manual labor “workshop of the world”, has become the largest buyer of industrial robots. They bought 36560 industrial robots last year, a rise of 60 % over previous year. While China is the fastest-growing market for robots, Japan still has, by far, the highest number of industrial robots in operation – 310000 compared to 96000 in China and 168000 in USA. China’s automotive industry, the world’s largest, accounts for about 60 % of robot demand in the country. As always, we need your input on the industry news, views and any observation about the industry around you. Your feedback will be useful to us to better inform our reader’s about tomorrow’s manufacturing solutions. Till then, Happy Technology ! Manoj Kabre Member, Editorial Advisory Board (EAB) July 2014
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VINTECH AIR CONTROL ENGINEERS AND CONSULTANTS “Sai Raghavendra”, 207, Dr.Radhakrishna Salai, Ramakrishna Nagar, Valasaravakkam, Chennai - 600087 Phone Nos: 044-2486 6221, 044-2486 6821, 044-6563 1221 Fax: 044-2486 6321 76 www.martupdate.com July 2014 E-mail: vintechair@gmail.com | vintechchennai@yahoo.co.in