Top Notch Manufacturing

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Top Notch Manufacturing

• Accelerating and Sustaining Growth

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Contents
Growth of Manufacturing
1
Challenges of Sustainability
2
The Issue of Productivity
3
How Technology can help
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Manufacturing Drivers of Growth

• Policies
• Infrastructure
• Market/Demand
• Financial Resources
• Human Resources

Data ICRA/CSO
4
But Core Industries lagging ?
The Hindu/CSO
5
Growth Challenges
Manufacturing
Financial Resources
Human Resources
6
India Capex Story
FY 03
10 Yr Average
FY 06
Rs 33000 Cr
Rs 80000 Cr
Rs 16000 Cr
Source ETIG selected 600 Corporates
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Emerging EconomiesQuantity and Quality of Human
Resources
Surplus
INDIA
INDONESIA
MEXICO
PHILIPINES
TURKEY
BRAZIL
Projected Workforce in 2020
MALAYSIA
ISRAEL
IRELAND
CHINA
RUSSIA
Shortfall
People Strength Productivity, Cost, English
Skills
Low
High
World Competitiveness Yearbook, BCG Study
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The Challenge of Human Capital
Manf Growth Story
Its not a Salary Game
Bring back the Glamour
Focused Facilities for Learning
Manufacturing has to gear up to attract and
retain Talent
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Challenges of Sustainability
Scale
Sustainable
Technology
Productivity/Cost
Comparative
Advantage
Natural Resources
10
The Myth of Economy of Scale
Size does not matter, Success does !

Supply Chain Optimization
Efficient Delivery Systems
Flexible Manufacturing
Distributed Manufacturing
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Many Faces of Productivity

• Hours Worked
• Productivity
• Compensation Hikes
• Unit Labour Costs

Data Conference Board, Economist, Bureau of
Labor Statistics
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Productivity Competitive Advantage of
Nations?Is it SUSTAINABLE ?
Wage Hikes not matched by Productivity Increases,
will erode the Advantage
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Technology Multi-Faceted Enabler
Automation
Process Control
Environmental Sustainability
Technology
Entry Barrier
Innovative Continuous Cost Reduction
Integrated Info Systems
Technology Edge the only long term advantage in
Manufacturing
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IT in Manufacturing
Shop Floor
MIS
Market
People
Shop Floor Processes Facilities Management Produc
t Cost Process Data Planning Automation Logistic
s
Customer Processes Enq/Order Management Receivabl
es SFA CRM
People Processes Communi- cations HRIS Performan
ce management
Governance Processes Accounting Reporting Decisio
n Systems Control Systems
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Pushing the Automation Envelope
2005
1980
1990
2000
1 Operator
1 Operator
3 Operators
1 Operator
Per Furnace
Per Furnace
Per 4 Furnaces
For 11 Furnaces
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Royalty and License Fees Receipts
Source World Development Indicators Online
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How are we doing in Technology
Real RD Spend
Sales up 31
?
Distributed Manf
Training and Devp
Net Profits up 59
Supply Chain Optimisation
Interest Staff Costs UP
Patents/Licenses
Are we missing the Bus ?
Q2 FY 07, 1100 Manf and Services Companies ETIG
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Does the Indian Nation has a Vision on
Manufacturing Excellence ? Do we want to grow
into merely the Workshop of the World OR Do we
aspire to be a Technology Driven Manufacturing
Powerhouse
Thank You !

• For your time and patience

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Ultimately, it is Cost
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Scale
Productivity
Cost
Efficiencies
Arbitrages
Resources
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Sustainability Challenges
Cost
Scale
Sustained Growth beyond current window can be
assured only if we have Long Term Competitive
Advantage
Technology
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Pushing the Productivity Envelope
1 Operator/ 4 Furnaces
1 Operator/ Furnace
3 Operators/ Furnace
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Block Diagram
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Table
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3-D Pie Chart
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Progress Diagram
Phase 1
Phase 2
Phase 3
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Text
Distributed Manf
Supply Chain Optimisation
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Hi Tech Exports, 2004