Aug' 21
The IUP Journal of Operations Management
Focus
This paper also discusses the contract procedure, goals, and key performance metrics to reduce future contract disputes. One of the authors has implemented an earliest outsourced operations management contracts in India.
The second paper, "A Study on Productivity Management Techniques with Reference to Valeo Squib Assembly", by Ameena Babu V and Ranjith Somasundaran Chakkambath, talks about productivity management. Increasing productivity has been a major issue for industrial units. Lean manufacturing has decreased manufacturing waste. The study examines the effects of productivity management strategies on chosen component assembly at a manufacturing facility in Kochi, Kerala, India. This study helps analyze current and future state maps of squib assembly line manufacturing. During different inspections, the cycle time for producing squib components exceeded the permitted limit. Valeo squib components are in high demand in the manufacturing business, according to trends. However, the firm is able to satisfy the demand. As a result of these adjustments, the cycle time for producing valeo squibs must be improved. Value Stream Mapping (VSM) was utilized to collect existing process information. The goal of this study is to improve productivity by lowering waiting/cycle times on the assembly line utilizing value stream mapping. Considering that valeo squibs are used in the production of airbags, which in turn serves automakers, the scope of this study includes OEMs as well. Thus, the inquiry has a wide reach.
The third paper, a case study by Venkata Ravi Ram Pinninti and Vijaya Bhaskar Krovvidi, talks about six sigma-"Six Sigma Optimization of Process Costs and Chemicals Consumption in Demin Water Plants". Many petrochemical processes need demineralized water, such as thermal power generation. Due to the widespread usage of demineralized water in many processes, demin water facilities have become specialized. The engineering design is modular, thus specialized vendors develop demin process trains, and user companies buy demin plants based on stream capacity. The risk of process stoppage or underperformance owing to lack of demin water leads to over-design of the demin plant. This results in overuse of chemicals, increased expenditure, and increased overall lifespan costs for the owners. Since its inception in the manufacturing industry, Six Sigma has been effectively used across sectors to help reduce costs. Case study research is a quick way to learn about the challenges of implementing real-world solutions. The Operations and Maintenance (O&M) team used Six Sigma methodologies like DMAIC and Pareto analysis for a year to improve the demin facility. The successful optimization results are shown: overall, 42% chemical savings, 46% process O&M savings, and 42% increase in demin water output. An example of a successful optimization case study utilizing Six Sigma techniques would be helpful to engineers and academics.
The fourth paper is also a case study-"ERP Implementation Failure at Revlon" by Syeda Maseeha Qumer and Debapratim Purkayastha. It discusses the implications of ERP implementation issues and the issues after implementation of ERP in the organization. It also throws light on how ERP implementation can be a big failure for an organization with the example of Revlon.
Consulting Editor
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| Article | Price (₹) | ||
| Contract Management for Outsourced Operations |
100
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| A Study on Productivity Management Techniques with Reference to Valeo Squib Assembly |
100
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| Six Sigma Optimization of Process Costs and Chemicals Consumption in Demin Water Plants |
100
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| ERP Implementation Failure at Revlon |
100
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Contract Management for Outsourced Operations
Of the two functions in Operations and Maintenance (O&M), traditionally it was maintenance that lent itself for outsourcing. Needing intermittent equipment specialists' intervention, maintenance was a 'natural' for outsourcing one-off needs or annual contracts. All this while, operations was always considered "too critical" to be outsourced. However, what was once unthinkable has slowly crept in: the outsourcing of operations. Considering the criticality of the operations function to the availability of the plant, this paper proposes the factors that must be evaluated before a contractor is finalized. These include ability to maintain and flag critical plant performance indicators. Since the economic cost of failure to perform has direct material impact on the plant financials, the contract has to be drawn in a manner that would encourage only the serious players to bid. Non-operational but non-negotiable factors like strict compliance to statutory, safety and environment requirements act like filters to ensure right contractor selection. Also discussed in this paper are the contract process, goals and key performance indicators that would eliminate chances of contract dispute at a future date. The first author was responsible for implementation of one of the first outsourced operations management contracts in India.
A Study on Productivity Management Techniques with Reference to Valeo Squib Assembly
The paper sheds light on the productivity management techniques with reference to selected component assembly at a manufacturing unit to analyze the existing processes on the basis of which present and future state maps of valeo squib assembly line productions happen. It is evident here that the cycle time for the production of squib parts was more than the allowable limit and the company is unable to meet demand patterns. Therefore, it becomes inevitable to improve the cycle time in valeo squibs production after modifications in the process. Theoretically, the study used Value Stream Mapping (VSM) technique and waiting/cycle time was reduced. Practically, valeo squib being a part that goes into airbag manufacturing, which in turn caters to the car manufacturers, the scope of this study is further extended to OEMs as well, in terms of saving waiting time in assembly line operations and productivity management from a broader viewpoint.
Six Sigma Optimization of Process Costs and Chemicals Consumption in Demin Water Plants
Many processes like power and petrochemical use demineralized (demin) water as the process fluid. Extensive use of demin water meant emergence of specialist vendors. Modular engineering design allows user-industries to purchase packages from such specialist vendors. High risk of process shutdown or underperformance due to inadequacy of demin water results in significant over-design, resulting in sub-optimal chemicals consumption and higher total lifecycle costs. Six Sigma is a set of tools successfully deployed across sectors for process and cost optimization. Case studies facilitate an understanding of complexities of real-world solutions. This paper discusses a real-world application of Six Sigma methods like DMAIC and Pareto Analysis to optimize the demin plant. Successful optimization resulted in 42% savings in chemicals, 46% reduction of process O&M costs and 42% increase in demin water output. This successful optimization case study would help practicing engineers and academics in reducing O&M costs in demin plants using Six Sigma methodologies.
ERP Implementation Failure at Revlon
This case is about the failure of ERP implementation at global cosmetics giant Revlon Inc and the impact this had on the company's business. In early February 2018, Revlon rolled out a new ERP SAPS/4HANA for a large part of its North American business to support new customer support technologies and improve performance. However, the company faced issues during the ERP changeover that caused its Oxford manufacturing facility to experience service level disruptions and impacted its ability to manufacture certain quantities of finished goods and fulfil shipments to several large retail customers in the US. Revlon was unable to fulfil product shipments of approximately US$64 mn of net sales during 2018. What could Revlon have done to understand and mitigate the inherent ERP implementation risks and ensure that its go-live ERP did not affect its operations? Going forward, how should Revlon manage ERP implementation concerns to reduce disruption of operations?