INTERVIEW OF THE MONTH

GUEST ARTICLE WITH MR. ASHUTOSH MANGLA,
General Manager, Operations, Syrma SGS Technology Limited.

What key strategies have you implemented to achieve cost optimization in manufacturing?

• Lean Manufacturing: Implementing lean principles to minimise waste and improve efficiency. This includes techniques like 5S, value stream mapping, Pull system and Continuous improvement (Kaizen). Lean manufacturing helps to reduce waste and increase productivity in the manufacturing process by removing non-value-added activities and processes as well as optimising the manpower.
• Low-cost Automation and Semi automation: Investing in automation and advanced technologies, such as Robotics, Automatic Guided Vehicles (AGV) smart material storge & retrieval systems and IoT, to enhance production efficiency, reduce labor costs, and improve precision.Low-cost automation helps to increase productivity and reduce labour cost.
• Supply Chain & Inventory Management: Optimizing the supply chain by negotiating better prices for high volume manufacturing, extended payment terms with suppliers, consolidating shipments for arrival of material just-in-time to start production to reduce inventory holding costs as well as reduce storage space.This also involves regular monitoring of inventory levels across different plants to balance purchase and avoid excess ordering, optimizing stock control, and monitoring replenishment& distribution. This involves accurate forecasting future material demand using ERP system to accurately predict purchasing items and helps in efficient inventory management.
• Energy Efficiency: Implementing energy-efficient practices and equipment to lower utility costs. This includes upgrading to energy-efficient machines or utilizing renewable energy sources like LED lights in production and storage areas, using 5-star rated low energy consuming air conditioning equipment and installing roof top solar power plants to cut electricity cost.To identify areas for improvement, we conduct energy saving audits and take necessary actions to improve in this area. We are also working on meeting our corporate ESG goals towards a sustainable future.
• Process Optimization: Analysing and refining production processes to eliminate bottlenecks and reduce cycle times. Techniques like line balancing and Six Sigma help to identify & understand the current processes in place and how they are performed, leading to continuous improvement in operations. Process optimization can help reduce costs by eliminating errors, frivolous expenses, and bottlenecks. It can also help prevent mistakes by implementing checks and balances in automated and manual systems.
• Training and Development: We are investing strongly in employee learning, development &training to enhance their skills and productivity. This not only leads to more efficient operations but also helps to reduced errors and develop a culture of zero-defect manufacturing.We also work on empowering our workforce on multiple skill areas which relieves them from feeling stuck and spare them from doing monotonous jobs. Training and development also helps employees to improve their individual job performance, results in better career growth and job satisfaction. It can also help organizations improve employee engagement, increase employee retention by reducing attrition, and operational efficiency.
• Quality Control: Implementing robust Quality management systems to reduce defects and rework, which can significantly cut costs. We are continuously working on making our systems and manufacturing to be ‘Process Oriented’ and not ‘Person dependent’ so that the errors are minimised.

What technologies do you believe are essential for driving digital transformation in manufacturing processes?

• Implementing Industry 4.0 and Internet of Things (IoT): We are working to implement Industry 4.0 across our Manufacturing plants by deploying systems like MES and using the benefit of IoT devices. The term IoT, or Internet of Things, refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between the devices themselves. IoT enable real-time monitoring of machinery and processes, improving visibility and allowing for predictive maintenance. This will increase predictability of failures, reduce downtime and increase efficiency and utilisation of our capital equipment.
• Artificial Intelligence (AI) and Machine Learning: These technologies can analyze vast amounts of data to optimize operations, improve quality control and enhance decision-making through predictive analytics.
• Cloud Computing: Cloud platforms facilitate data storage and collaboration across locations, enabling scalability and access to advanced tools without heavy upfront investments in infrastructure.We are already using Cloud storage for a large amount of data from our MES and ERP systems.
• Automation and Robotics: There has been a very large scale growth in this area wherein deploying robotics can streamline repetitive tasks, increase precision, and enhance production speed. Collaborative robots (cobots) can work alongside human workers to improve efficiency. It uses technology to perform tasks without direct human intervention. This can include the use of robots and other types of automatic systems, like simple timers and AGV’s. Automation can be applied to both virtual and physical tasks and is going to replace humans in many areas.
• Augmented Reality (AR) and Virtual Reality (VR): AR and VR can enhance training and maintenance processes by providing immersive simulations and real-time overlays of information on physical assets.AR and VR can be expensive, especially for high-end hardware and software. Some people may also experience motion sickness or discomfort when using VR technology but that’s the future
• Advanced Manufacturing Execution Systems (MES): MES solutions help manage and monitor production processes in real-time, optimising operations and facilitating data integration across the supply chain. MES can provide real-time data on resource consumption, waste generation, and energy usage. MES can update inventory records with new production, scrap, and non-conforming material. They can also provide end-to-end product tracking and traceability which is very important in Manufacturing industry especially Electronics, Telecom, Defence and Automotive products.

Can you share your experience integrating digital tools to enhance efficiency? What challenges did you face?

Experiences in Integration:

• Data Centralization: We have already deployed Cloud Computing and Cloud storage to integrate our ERP and MES systems. We have been successfully using them for almost 4-years across all manufacturing locations of our company. This saves us large capex for investing in hardware and storage systems. This gives us access to centralized data storage and retrieval from various sources like IoT sensors, MES, and ERP systems and provides a comprehensive view of operations. This integration allows for real-time monitoring and better decision-making.
• Automation of Processes: Many organizations have adopted automation tools to streamline repetitive tasks. For example, we are working on robotic process automation (RPA) that can handle routine data entry activity, freeing up human resources for more complex tasks.
• Online Trainings: We are largely using online platforms and media for training of our workforce and senior management teams.

Challenges Faced:

• Resistance to Change: Employees are initially hesitant to adopt new technologies due to fear of job loss or the learning curve associated with new tools and not getting out of comfort zones. Later when they undergo training and familiarisation, then then realise the benefits and slowly adopt to change. Effective change management and training programs are essential to address this issue.
• Data Integration: We did face challenges of merging data from different systems and machines due to the inherent complex nature of different software platforms on which they work, especially where legacy systems were involved. However, our service providers did a good job by developing customized API’s to integrate various hardware and software platforms to bring them together for a seamless data flow. It did take a lot of time doing this but we can see lot of benefits once its done.
• Cybersecurity Concerns: With increased connectivity, there weas a risk of heightened cybersecurity risks and data pilferage. Protecting sensitive data and ensuring compliance with regulations can be challenging. We have gone thru this learning and have implemented the Information Security Management system in our organisation to protect our customer’s sensitive information and data. We have a very strong NDA and IP protection policy in place to safeguard against any data breach.
• Cost of Implementation: The initial investment in digital tools can be significant. Justifying these costs and demonstrating ROI to stakeholders is often a critical hurdle.
• Skill Gaps: The workforce may lack the necessary skills to utilize new technologies effectively. Ongoing training and upskilling are crucial for successful integration.
• Scalability Issues: Some digital solutions may not scale easily as the organization grows. Ensuring that the chosen technologies can adapt to future needs is important. This has to be reviewed and decided when you are selecting the right automation and digitization strategy otherwise the cost of scaling up can be enormous and prohibitive.
• Measuring Success: Defining key performance indicators (KPIs) to measure the impact of digital integration can be challenging. Organizations need clear metrics to assess efficiency gains and overall success.

What role does data analytics play in your operational improvements?

• Performance Monitoring: Analytics tools provide real-time insights into key performance indicators (KPIs), helping us monitor operational efficiency and identify areas that need attention. Targets and KRA’s for our team members are defined at the beginning of every financial year. The performance evaluation is done every quarter Based on key metrics and feedback is given to the concerned employee. The year end data is analysed and reviewed across the organisation to finalise Rewards a& Recognition for the performers based on metrics.
• Predictive Maintenance: By analysing historical performance and breakdown data from major machinery and equipment, we are able to predict when preventive maintenance is needed to avoid any mishaps. This helps in reducing unplanned downtime due to sudden breakdowns and extending the lifespan of assets.
• Process Optimization: Data analytics helps identify bottlenecks and inefficiencies in manufacturing processes. By analysing workflows and production data, we are streamline operations, reduce cost of production and improve throughput.
• Quality Control: Advanced analytics also helps to identify defect patterns in quality issues coming during regular production or from customer quality feedback. This helps to conduct a formal root cause analysis to put short term and long-term corrective actions in place. This helps in implementing effective permanent corrective actions to improve product quality and enhanced customer satisfaction.
• Supply Chain Optimization: Data analytics provides major insights into supply chain performance, helping us negotiate better pricing and get volume-based discounts from suppliers, manage inventory levels, forecast demand, and optimize logistics, which can reduce overall cost of production and improve profitability for the organisation.
• Cost Reduction: By regularly analysing cost data across various operational parameters, we are able to identify areas to reduce expenses, such as optimizing manpower resource allocation and eliminating wasteful and non-value added practices.
• Customer Insights: Analysing customer data helps in understanding preferences and behaviours, allowing for better-targeted production and marketing strategies for higher customer satisfaction and customer retention.
• Continuous Improvement: By regularly analysing operational data, we are able to inculcate a culture of continuous improvement among our employees. Identifying incremental changes lead to significant cost saving and increasing profit over time.

How do you ensure team buy-in during digital transformation?

Ensuring team buy-in during digital transformation is critical for success. Everyone is comfortable in whatever they are doing but adopting digitisation is crucial for survival in this challenging world where competition is getting fierce by each passing day. It’s a humongous task to motivate and enrol teams so that they willingly adopt digital transformation. Some of the effective strategies we followed are:

• Clear Communication: The management has clearly articulated the company’s mission &vision, goals, and benefits of the transformation. We have made sure everyone understands how these changes will positively impact their personal lives, their day-to-day work and the organization.
• Involve Employees Early: We engaged major leading team members early in the process. Multiple brainstorming sessions were conducted to gather their inputs on expectations and changes needed. We involved them in decision-making to foster a sense of ownership and commitment.
• Provide Training and Resources: We hired consultants and guides to deliver comprehensive training programs to equip employees with the necessary skills and knowledge so that they can use the new technologies effectively. This also reduces anxiety about change and builds confidence.
• Highlight Success Stories: Our consultant shared success stories and case studies from outside world as well as similar industry that demonstrated the benefits of digital transformation. They motivated team members by showcasing tangible results. This made them believe that this is definitely going to benefit them and the organisation.
• Create Cross-Functional Teams: We form cross-functional teams to champion the transformation. Having representatives from different departments helped address diverse concerns and promote collaboration. We promote a strong culture of entrepreneurship, care, respect and collaboration within employees in all our functional areas.
• Address Concerns and Feedback: We encourage open dialogue and feedback about the changes and conduct regular sessions to get feedback on employee experience with this process of transformation. Actively listen to team members’ concerns and feedback and be prepared to adjust plans based on their insights addressing concerns.
• Set Milestones and Celebrate Wins: We broke the transformation into manageable milestones and celebrate achievements along the way. Recognizing progress keeps morale high and reinforces commitment to the initiative.
• Leadership Support: We also ensure that senior leadership is visibly supportive of the transformation process. Leaders model the desired behaviours and were always accessible to address questions and concerns.
• Foster a Culture of Innovation: We promote a culture that encourages experimentation and innovation. We want our employees to behave like entrepreneurs. We empower employees to explore new ideas and solutions, making them feel like active contributors to the transformation.
• Measure and Share Results: We regularly measure and share the outcomes of the transformation efforts. Providing data on improvements can validate the process and reinforce the benefits to the team.

How do you envision the future of operations management with new technologies?

The future of operations management is set to be significantly transformed by new technologies. Here are several key trends and visions for this evolution:

• Increased Automation: The integration of robotics and automation will streamline routine tasks, enhancing efficiency and allowing human workers to focus on more strategic activities. This shift will lead to more agile and responsive operations.
• Advanced Data Analytics: Operations management will increasingly rely on big data analytics and AI to derive insights from vast amounts of data. This will enable predictive maintenance, demand forecasting, and more informed decision-making.
• Real-Time Monitoring: IoT devices will provide real-time visibility into operations, allowing managers to monitor performance metrics, equipment health, and supply chain dynamics instantly. This transparency will lead to quicker responses to issues as they arise.
• Digital Twins: The use of digital twins—virtual replicas of physical assets—will allow organizations to simulate and optimize processes before implementing changes in the real world, reducing risk and improving efficiency.
• Supply Chain Resilience: Technologies like blockchain will enhance supply chain transparency and traceability, fostering trust and collaboration among partners while mitigating risks associated with disruptions.
• Sustainability Focus: Operations management will increasingly prioritize sustainability, utilizing technologies to minimize waste, optimize resource usage, and support circular economy practices.
• Enhanced Collaboration: Cloud-based platforms will facilitate seamless collaboration across teams and geographies, enabling real-time communication and shared access to data and insights.
• Skill Transformation: As operations become more tech-driven, there will be a shift in required skills. Continuous learning and upskilling will be essential, with a focus on data literacy and technology proficiency.
• Customizable and Flexible Manufacturing: Technologies like additive manufacturing (3D printing) will allow for more customizable production processes, enabling companies to meet specific customer demands more quickly and efficiently.
• AI-Driven Decision Support: AI will provide sophisticated decision support tools that analyze various scenarios and recommend optimal actions, improving operational efficiency and effectiveness.