Transcript Operations-Globalmeltdown Workshop14th nov

Global Meltdown –
Lessons to be Learnt
Operations Perspective
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Swapnil Galgalikar.
Rupesh Zambad.
Rakesh Tanwale.
Izhar Mushrif.
Amit Gautam
Sourabh Bafna.
Amit Shinde.
Vikram Lawand.
Prasad Sahastrbudhe.
Krishna dhanorkar.
Video 1
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Effects of Meltdown
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Associated Factors
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Available alternatives
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Manufacturing Strategies
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Learning & the Future Path
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Steel
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Automotive
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Textile
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Oil & Gas
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Chemical
Manufacturing sector :
 Automotive sector
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Services:
 IT & BPO
Automotive Industry
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Projected growth of the Indian auto industry
translates to 10 -11 % of India GDP by 2016
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Auto- component industry in India expected to be
USD 45 billion.
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Policy initiative to market India as an attractive
manufacturing destination.
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Automotive industry promises significant
employment opportunities.
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Source- SIAM
“India is going to be an automotive hub a dream destination for engineering
industries.”
- Mr. Mandlik, General Manager L&T
BCCI Seminar- 13 Nov. 09
Category
Industry Sales (Nos.)
2008-09
2007-08
Growth
Commercial
Vehicles
415652
503218
-17.4%
Passenger
Vehicles
1525313
1533268
-0.50%
Total
1940965
2036486
-4.7%
Source: Society of Indian Automobile Manufacturers report and Company Analysis
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Continue
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Shutdown fully/ partially
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Divestment
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Decrease in Sales affects entire supply chain
e.g.- Slowdown in Automobile will affect pigment ,paints ,
resins , solvent and related logistics
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Evolving Planning system that addresses changes
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Addressing Inventory and converting of stock to cash.
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Identify sub-optimal performance in consumption of
material or inefficient processes
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De-risking sales is fundamental to operations.
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Continuous performance improvement in operations by
engaging process improvement teams who work with
R& D to make positive changes for cost and material
utilization.
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Improve data collection about customer trends,
technology improvements & realistic forecast
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Efficient utilization of ERP systems
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Production for new markets
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Lean Manufacturing
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Maintenance Strategies
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Changes in scale of production
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Under utilized capacity
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Production Cut
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Inventory piled up
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Blocked capital.
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GM Closed 13 out of 21 plants.
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GM eliminated 74,000 jobs.
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GM supply chain crisis still exists.
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20 suppliers have filed a bankruptcy petition in the United
States
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To develop a supply base with emphasis on lower
cost
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Focus on customized production
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Ensure quality rather than quantity
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Economies of scale
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Develop Technical & Human Capabilities
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Enhance Technology Management
Growth Rates of Real GDP
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Lower growth of
9.4% in 2008-09
Lead Indicators
suggest decline
for 2009-10
2008-09(A)
Construction
2007-08(Q)
Community, Social and
Year
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Personal Services
Financing, Insurance, Real
2006-07
Estate & business Services
Trade, Hotels, Transport &
Communication
2005-06
Source: CSO
0
5
10
Growth Rate %
15
SCOPE
QUALITY
COST
TIME
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Reducing Demand
Losses of projects & Contracts
◦ ABN AMRO LaSalle Hyderabad Project Scrapped
Operation cost pressure
◦ Laying off exp & High salaried employees
Infosys Revenue guidance
◦ Decline of 3.1% to 6.7% in Fiscal 2010
“ Many of our clients are reducing their IT Budgets.
A survey of our top 135 clients indicated that a
Majority of them will downsize their IT budgets.
This will impact our growth during current year.”
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Narayana Murthy (Chairman & Chief Mentor)
Source : Chairman’s Speech 28th Annual Gen Meeting
“We are very honestly over-hired”
“The situation is still quite challenging, If you look
at our customers, they are not really seeing any
increase on their revenue side. And because they
are not seeing any increase on their revenue
side, they will continue to be concerned”
-S.D. Shibulal (COO, Infosys)
Source : ONE INDIA NEWS
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Hyderabad ABN Amro section on bench
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Postponed revisions in promotions
“We have re-aligned our cost structure to
protect margins. The Leadership has led by
example & has accepted the highest reduction in
their variable compensation. For 2010, we have
postponed any revisions in compensation &
promotions to remain competitive in the current
difficult circumstances”
- Narayana Murthy (Chairman & Chief Mentor)
Chairman’s Speech 28th Annual Meeting: June 20, 2009
Focus on
◦ Innovation
◦ Performance
Mgmt
 Organization should be flexible enough to
reallocate resources from one project to another
 Leverage Technology to rationalize costs
 Standard package for performance focused
customer
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Stress on Maintenance projects
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Focus on Research & Innovation
“To survive in the crisis the winners don’t do
different things, they do things differently.”