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SIGMA NEWSLETTER VOLUME : 4 ISSUE : 46 An Initiative By Lean Operations and Systems Institute of Management, Christ University DEC 2014

SIGMA - Christ University · Foxconn, famed for manufacturing Apple products such as the iPhone ... was a Gold Wing, manufactured at the company’s Kumamoto Factory in Japan. The

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Page 1: SIGMA - Christ University · Foxconn, famed for manufacturing Apple products such as the iPhone ... was a Gold Wing, manufactured at the company’s Kumamoto Factory in Japan. The

SIGMA

NEWSLETTER

VOLUME : 4 ISSUE : 46

An Initiative By

Lean Operations and Systems

Institute of Management, Christ University

DEC 2014

Page 2: SIGMA - Christ University · Foxconn, famed for manufacturing Apple products such as the iPhone ... was a Gold Wing, manufactured at the company’s Kumamoto Factory in Japan. The

Inside this Issue

Page 3: SIGMA - Christ University · Foxconn, famed for manufacturing Apple products such as the iPhone ... was a Gold Wing, manufactured at the company’s Kumamoto Factory in Japan. The

SIGMA ISSUE : 46 DEC 2014

GURU OF THE MONTH

RATAN TATA

“The strong live and the weak die. There is some bloodshed,

and out of it emerges a much leaner industry, which tends

to survive.”

This month we are introducing you to the legend – that’s the

only word I can use to describe him. The Government of

India honored him with its second-highest civilian award,

the Padma Vibhushan, in 2008. He has also received

honorary doctorates from several universities in India and

overseas – Mr. Ratan Tata.

The Tata Group has been at this inflection point twice

earlier, and stepped back both times. In 2002, when Ratan

Tata was to retire at 65, the Tata Sons board promptly re-

designated him non-executive chairman, which meant he

could continue for another five years.

Three years later, the board upped the retirement age of

non-executive directors to 75. The message is clear: Ratan

Tata is indispensable. And it's not just the board that feels

that way. There were loud cries of support from

shareholders at the Tata Steel AGM in August, held soon

after the announcement that Tata Sons had created a panel

to find Tata's successor. "We can't lose our ratan (jewel),"

said one shareholder, while others asked him to stay on as

chairman emeritus.

“The day I am not able to fly will be a sad day for me.”

Whether or not he acknowledges it openly, Tata must be

feeling vindicated by this public recognition of his worth.

When he took over as Tata Group chairman on March 25,

1991, critics were loud and unrestrained in their

disapproval and skepticism.

Ratan Tata was considered to have gained his position

purely on the strength of his surname; he was incompetent,

raged opponents both within and outside Bombay House,

and he didn't possess an iota of the charisma of his uncle and

predecessor, JRD Tata.

Nearly 20 years later, Ratan Tata has achieved almost

everything on his 1991 agenda. At Rs 3.46 lakh crore (Rs

3.46 trillion), Tata Group revenue is 40 times the 1991

level, while net profit has gone up four times.

Head of Tata Sons--conglomerate with interests in

everything from tea to steel--is India's best brand

ambassador. Made automotive history last year with his

$2,200 Tata Nano, the world's cheapest auto. Calls Nano

"The People's Car." In a nation of a billion,

environmentalists call it eco-disaster. Not far off: After

Nano debuted in 2008, India's passenger car sales rose

most in three years in 2009; three Tata competitors are

now working on Nano copycats.

“I have been constantly telling people to encourage

people, to question the unquestioned and not to be

ashamed to bring up new ideas, new processes to get

things done.”

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SIGMA ISSUE : 46 DEC 2014

NEWS

Audi to launch an all-electric vehicle by 2017 to rival Tesla

Automotive manufacturing giant Audi is planning to rival close competitor Tesla, by launching

a battery-powered family car by 2017. It is believed that a new body design by Audi will allow

for biggest batteries to be stored under the floor of the car, allowing for greater range without

compromising baggage and passenger space. It will also use next-generation batteries in order

to achieve 280 miles range. Audi has created blue prints for a wide range of electric cars to

keep competitive with Tesla and other German competitors when the market grows.

Source: Phillips, Abigall (2014, December 1). Manufacturing Global. Retrieved from:

http://www.manufacturingglobal.com/lean/262/Audi-to-launch-an-allelectric-vehicle-by-2017-to-rival-Tesla

Nokia and Foxconn join forces to manufacture and sell the N1 tablet computer

Nokia has announced plans to partner with Taiwan-based Foxconn

Technology Group to build its new Android tablet computer, the N1.

Foxconn, famed for manufacturing Apple products such as the iPhone

and iPad, will work with Nokia to create the 7.9-inch tablet during Q1 of

2015. Nokia announced the N1 tablet on Tuesday at the Slush

technology conference in Helsinki. The new device features a sleek all-

aluminum case and has a 2.4GHz Intel Atom quad-core processor. It will

run on the Android 5.0 Lollipop operating system and Nokia's new Z

Launcher intelligent home screen interface. According to Nokia, Foxconn

is fully responsible for business execution from engineering and sales to

customer care, including liabilities and warranty costs, inbound

intellectual property, software licensing and contractual agreements

with third parties.

Source: Phillips, Abigall (2014, November 22). Manufacturing Global. Retrieved from:

http://www.manufacturingglobal.com/technology/244/Nokia-and-Foxconn-join-forces-to-manufacture-and-sell-the-N1-

tablet-computer

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SIGMA ISSUE : 46 DEC 2014

Intel to develop IoT solutions for the manufacturing sector

Microchip manufacturing giant Intel is entering the Internet of Things (IoT) market. The

company is looking to develop technology and IoT solutions for manufacturing,

transportation, retail and smart homes and buildings and plans to integrate IoT

technology into its microchips. IoT technology is in high-demand in today’s Internet

driven world, so Intel is wise to jump on board as early as possible. The company’s

strategy will focus on manufacturing, transportation, retail, and smart homes and

buildings, providing resolutions for related industries, service management, microchip

networks, data centers and security management. It is also accelerating development of

Quark microprocessors, as well as using ecological models to attract interested

enterprises for cooperation.

Source: Phillips, Abigall (2014, November 20). Manufacturing Global. Retrieved from:

http://www.manufacturingglobal.com/technology/245/Intel-to-develop-IoT-solutions-for-the-manufacturing-sector.

Honda celebrates manufacturing 300 million motorcycles

This week Honda announced a huge manufacturing milestone for its motorcycle division, which was established more than

65 years ago: it produced its 300-millionth motorcycle. The 300-millionth motorcycle to roll off the Honda production line

was a Gold Wing, manufactured at the company’s Kumamoto Factory in Japan. The Gold Wing brand also celebrates its 40th

birthday in 2015. Honda started mass-producing motorcycles in Japan in 1949 with the 98cc Dream Type-D. Today the

manufacturing giant makes motorcycles, ATVs and side-by-sides at 32 plants across 22 countries.

Source: Phillips, Abigall (2014, September 24). Manufacturing Global. Retrieved from:

http://www.manufacturingglobal.com/technology/151/BMW-and-Vodafone-launch-M2M-platform-to-offer-

ConnectedDrive-to-customers

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Jaguar Land Rover named 'most trustworthy supplier' worldwide

SIGMA ISSUE : 46 DEC 2014

A worldwide survey has found that British firm, Jaguar Land Rover is the most

trust worthy automotive supplier. The annual survey, conducted by HIS

Automotive takes into account five key aspects of service including; Profit

potential, Trust, Pursuit of excellence, Organization and Outlook. Jaguar Land

Rover (JLR) was a frontrunner in two of the five categories and its overall score

was 603 – an 11.7 percent increase on the previous year. JLR employs more than

190,000 people in the UK and has been instrumental in balancing the UK

economy in recent years. According to the survey, the treatment of supplier

intellectual property and responsiveness in considering supplier technology

were named as particular strengths in their operations.

Source: Phillips, Abigall (2014, December 2). Manufacturing Global. Retrieved from:

http://www.manufacturingglobal.com/peopleskills/264/Jaguar-Land-Rover-named-most-trustworthy-supplier-worldwide

Xiaomi plans world domination, moves manufacturing to Brazil and India

Xiaomi which has ambitious plans to become the world’s largest smartphone manufacturer in the next five to ten years -

has just announced it will start manufacturing in Brazil and India – two of the globe’s most populous countries. According

to reports, Xiaomi may begin producing mobile handsets, as well as its other key electronic products in Brazil and India in

the next few years. A move to Brazil and India is big news for Xiaomi and demonstrates the company’s mission of

expanding into the world’s emerging markets. Its other target markets include Russia, Thailand, Mexico and Turkey, as

well as China.

Source: Phillips, Abigall (2014, December 1). Manufacturing Global. Retrieved from:

http://www.manufacturingglobal.com/technology/263/Xiaomi-plans-world-domination-moves-manufacturing-to-Brazil-

and-India.

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INDEX OF INDUSTRIAL PRODUCTION

The growth rates in September 2014 over September 2013 are 5.1% in Basic goods, 11.6% in Capital goods and 1.8% in Intermediate goods. The Consumer durables and Consumer non-durables have recorded growth of (-) 11.3% and 1.5% respectively, with the overall growth in Consumer goods being (-) 4.0%.

Sector SEPT’14 (%)

Basic Goods 5.1

Capital Goods 11.6

Intermediaries 1.8

Consumer Durables -11.3

3.6

1.4

12.9

0.7

2.5 3.9

0

2

4

6

8

10

12

14

Mining Manufacturing Electricity

SEPT’13 (%)

SEPT’14 (%)

Sector SEPT’13 (%) SEPT’14 (%)

Mining 3.6 0.7

Manufacturing 1.4 2.5

Electricity 12.9 3.9

SIGMA ISSUE : 46 DEC 2014

The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the

month of September 2014 stand at 116.0, 181.6 and 175.6 respectively, with the corresponding

growth rates of 0.7%, 2.5% and 3.9% as compared to September 2013. The cumulative growth in

the three sectors during April-September 2014-15 over the corresponding period of 2013-14 has

been 2.1%, 2.0% and 10.4% respectively.

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5.1

11.6

1.8

-11.3

-15

-10

-5

0

5

10

15

Basic Goods Captial Goods Intermediaries Consumer Durables

SECTOR WISE GROWTH

SEPT '14 (%)

SIGMA ISSUE : 46 DEC 2014

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ENVISIONING THE FUTURE

SIGMA ISSUE : 46 DEC 2014

Since the dawn of the new millennium, while interaction between consumers and

enterprises generated large volumes of data, there is a significant demand for

analyzing and interpreting such data from multiple perspectives to catalyze and

enhance customer experience and arrive at better decisions. Futuristic technologies

are now transforming the way we live our daily life. The notion of the digital company

has been around for over a decade. However, few companies outside the pure web

space have become truly digital in which information and the ability to act on it creates

significant economic and competitive value. Leading companies are capitalizing on

digital ecosystems that are expanding due to the confluence of social networks, mobile

computing, analytics, and cloud computing (SMAC).

SMAC technology is diffusing faster into the IT business than any other in the recent past. Social collaboration is

intensifying the way people interact with individuals and businesses. Mobile devices have enhanced customer’s

grasp to information from several sources. Mobile applications help to reach out to customers at a personal

level too. These applications also help in customer feedback, sustaining the relationship with customers. Due to

its global reach, low overheads and high availability, SMAC technology will help companies gain high-margins in

businesses.

In the SMAC era, it is not only important for IT departments to have a capacity to process the vast amounts of

data streaming into the enterprise in real-time, but also to have the capability to learn from that information

and make intelligent decisions. The new age enterprises need to include “intelligent management and

operations” capabilities in their architecture. When implemented, these technologies serve as a synergetic

solution for digitally transforming organizations to be better equipped for the future of business.

Companies are now analyzing their ‘as is’ state to look into their ‘to be’ state to succeed in this vision of digital

transformation. With SMAC gaining momentum all across the globe, IT sector in India is yet to polish its

proficiency in this field. Most IT firms are unaware of the benefits that SMAC could offer, and some that are

aware do not adopt it to their fullest capability due to certain constraints. A well thought SMAC strategy is thus,

paramount for any organization’s unprecedented success in this digitally transformed world.

Page 10: SIGMA - Christ University · Foxconn, famed for manufacturing Apple products such as the iPhone ... was a Gold Wing, manufactured at the company’s Kumamoto Factory in Japan. The

MOBILE SUPPLY CHAIN MANAGEMENT (mSCM)

SIGMA ISSUE : 46 DEC 2014

Modern supply chain management extensively concentrates on the use of

information communication technologies. Recently, special emphasis was put on the

incorporation of mobile devices to provide better communication & coordination

among all the participants in the supply chain. Mobile supply chain management

makes use of mobile devices & applications for the efficient management of modern

supply chain activities that would provide real benefits like total cost reduction and a

faster response system that proves to be a competitive advantage for every firm

employing mSCM, as it facilitates superior customer service irrespective of the

location of the customer thereby contributing to an effective information and goods

flow.

Mobile systems here integrate software applications with mobile devices such as pocket computers, mobile

phones, PDAs etc. provide flexibility as users work in the wireless computer environment from any location.

Mobile devices are connected to the company servers through wireless interfaces that provides data exchanges

between the various participants involved in the supply chain. This helps to enhance the intercompany & intra

company business through real time information sharing, good customer service, better logistics management &

efficient warehouse management.

It is possible to immediately process the transactions entered into the mobile applications or when the customer

voluntarily submits it to the processing center. There are numerous mobile supply chain solutions available in the

market today provided by companies like SAP, Oracle, Motorola, Guotong Supply Chain Corporation etc.

Applications areas of mSCM

- Information

One of the key aspects of mSCM is fast & efficient reception and exchange of information. Mobile devices

are used to collect, generate & distribute information which includes data updating on central information

system.

- Mobile production

mSCM provides added benefits like time reduction, cost reduction, possibility of validation and correction

in real time during data entry in combination with scanning of bar codes and RFID tags. Production data

and task reports can easily be collected. Also it is easy for the production workers to read operating

instructions anywhere within the factory using mSCM applications.

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SIGMA ISSUE : 46 DEC 2014

- Mobile inventory management

Efficient tracking of stock levels of products can be done thereby ensuring accurate & effective

inventory management based on the solutions with bar codes & RFID tags. In this way, companies can

reduce the problem of duplication or lack of entries & enable people to know exactly where a

particular item is.

- Mobile Sale

Using mSCM, retailers are able to boost sales by providing the right items at the right time at the

required location. Customer satisfaction is improved as they are periodically informed about the status

of their orders. Also the system provides the ability to quickly respond to customer need changes by

passing information about the new requirements throughout the supply chain. This helps to serve the

customers on site in utilising these mobile devices.

- Tracking goods in supply chain

It is now possible to monitor the progress of each transport vehicle in real time efficiently and to know

the exact position & time of arrival at the final destination and type & quantity of goods carried,

thereby ensuring transport optimisation & cost reduction.

Highly efficient, fast and accurate data sharing makes it easier to control & monitor work activities and provide

updated information on the status process so as to help the company maintain complex adaptive supply chain

network. mSCM through wireless communications & internet is expected to be one of the most promising

technological innovations which will enable efficient supply chain operations in the coming years.

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SIGMA ISSUE : 46 DEC 2014

ACTIVITY BOX

Taking an “Analytical” step towards the future

The term and use of big data is nothing new. In fact, more and more companies, both large and

small, are beginning to utilize big data and associated analysis approaches as a way to gain

information to better support their company and serve their customers.

Many of the top data analytics consulting experts are forecasting big changes in the world of business intelligence and

analytics in the coming year. Some experts are predicting a shift from relying strictly on information technology reports to the

development of tools that drive more informed and successful decisions overall for the people relying on these reports. This is

why Analytics is all set to become the driving force of all business decisions. Therefore, it is critical for us as MBA students to

understand how to accurately analyse data so as to equip us with better decision making capabilities to achieve the goals of

the organization.

The event held on 8th November 2014 marked the inauguration and launch of the Christ University IBM analytics lab. It will

help the students to hone their skills in data analytics which is the need of the hour. The event was attended by the Lean

Operations and Systems and General Management students from both the campuses along with the distinguished faculty of

the Lean operations and systems. From IBM, we had Ms. Ameeta Roy, the guest speaker of the day and Mr. Kunal and Mr.

Dasgupta who also graced the occasion.

Ms. Ameeta Roy leads a team of software IT Specialists

and Architects for IBM Software Group India/ South Asia

focusing on Cloud, Analytics, Mobility, Social and

Security solutions. She has held various leadership

positions in her 20+ year career in the industry and has

been with IBM for the last 12 years where she has

helped customers architect, design, build and trouble

shoot large scale enterprise applications as well as

embedded software systems using IBM Solutions

The event began with the welcoming note by the

students and an address by Prof. Sudhindra where he

introduced the guests to the gathering and also

highlighted the importance of analytics in today’s work

environment and need for market relevant skills and

need to fulfil the gaps between the industry

expectations and the curriculum. He then invited Ms.

Ameeta Roy to address the gathering.

Prof. Sudhindra addressing the gathering

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SIGMA ISSUE : 46 DEC 2014

Ms. Roy also stressed the need and importance of analytics in

today’s competitive scenario. She gave several reasons as to why

the analytics is needed much more now than previously, with

smarter cities coming up, traffic management, GPS etc. emit

large amounts of data which needs to be analyzed and

interpreted to serve the customers better.

She also highlighted the fact that the world is getting

interconnected and automated; there is a change in the buying

behaviour of the customer. To make sense with the changing

data analytics, the future prediction of the buying behaviour and

sales is essential. She also spoke about the three V’s of big data

i.e. volume, variety, and velocity and added a fourth V- Varsity.

She also spoke about different analytics used by the industry

experts to analyze the data such as ATM analytics, Social media

analytics, Cloud data analytics, big data analytics and Mobile

analytics.

Prof. Sudhindra with the guest speaker Ms. Ameeta Roy and other guests

Guest speaker Ms. Ameeta Roy addressing the

gathering

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Across

2. The most commonly used algorithm to discover association rules by recursively identifying frequent item sets.( 7)

3. Description of contents of the data, data about data (4,4)

6. --- Query Language (10)

8. The time taken to access the information from the primary source to secondary source (4,5)

9. A translator that accepts assembly language as input and produces machine level language as output (9)

Down 1. A two dimensional, three dimensional object in which each dimension of the data represents a measure of interest.

(4, 4)

3. A software that links applications modules from different computers languages and platforms (10)

4. --- decision support system (9)

5. A test that is used to conduct the intelligence of a computer (6)

7. The highest level of details in the data supported in the Data warehouse.(5)

SIGMA ISSUE : 46 DEC 2014

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Think Tank

SIGMA ISSUE : 46 DEC 2014

1. Recently, China and the US have entered into a landmark

agreement to cut greenhouse gas emissions. What fraction of

world's carbon dioxide emissions are produced by China and

US together?

2. Which actor has been recently appointed as UN Women’s

Goodwill Ambassador for South Asia?

3. Which Global company has the simple tagline, “The Chemical

Company”?

4. Which foreign multiplex has acquired Essel group’s Fun

Cinemas?

5. Which international tyre major has invented a puncture

proof, airless tyre called “tweel”, a combination of a tyre and

a wheel?

6. What innovative distribution is being used by Britannia to

launch its premium cookies Good Day Chunkies, Rs 50 for 6

cookies?

7. Amazon is launching an enterprise level database to compete

with the likes of Oracle. What is its name?

8. Xiaomi was ranked #3 in terms of smart phone sales in Q3

2014. But this position has been short lived. Who is the new

#3?

9. “Great News – the Whopper is coming soon to India!” Name

the chain that made this announcement.

10. Which ecommerce site has signed Shah Rukh Khan as the

brand ambassador?

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