FOUNDATION COURSE FOR STUDENTS OF EMM

OVERVIEW OF ENGINEERING &

MANUFACTURING MANAGEMENT

V.G.S.MANI

Sept 2011
MSRSAS 1
 WHY RELY ON MANUFACTURING ?

• Till recently glamour, hype & visibility associated

with information and finance based businesses
made one believe that “hard work does not pay !!”

• However, recent global developments have proved

the simple & universal rule that wealth &
employment creation is based on manufacturing

MSRSAS 2
 CURRENT INDUSTRIAL SCENARIO
• LATE 80S AND EARLY 90’S BROUGHT A NEW
DIMENSION TO THE INDUSTRIES – COMPETITION.
STRUGGLE TO SURVIVE HAS BECOME A WAY OF
LIFE FOR THE ORGANIZATIONS

• MARKET FORCES ARE SO POWERFUL AND

STRONG THAT THEY WILL MERCILESSLY PUNISH
UNWISE INVESTMENTS AND WEAK ENTERPRISES

• MANY NATIONS, WHO WERE INDUSTRIAL

POWERS, HAVE DECLINED (E.G. JAPAN), WHILE
MANY NEW INDUSTRIALISED NATIONS HAVE
EMERGED (E.G. CHINA & SOUTH KOREA)

MSRSAS 3
 CURRENT INDUSTRIAL SCENARIO

• OVER A 2-3 YEAR SPAN, COMPANY’S

PERFORMANCE MAY BE AFFECTED BY INDUSTRY
SPECIFIC FACTORS

• BUT OVER LONGER PERIODS, IT IS ONLY THE

MANAGEMENT FACTORS THAT DETERMINE THE
PERFORMANCE

• IT IS THE RESPONSIBILITY OF THE COMPANY TO

INTEGRATE INDUSTRY/ NATION SPECIFIC
FACTORS WITH COMPANY’S RESOURCES,
CAPABILITIES & STRATEGIES IN ORDER TO
ENHANCE ITS PERFORMANCE.

MSRSAS 4
ENVIRONMENTAL ISSUES INFLUENCING
BUSINESS

• Globalization (Resources for technology development, changing

locations of manufacturing facilities, rise of multinationals,
comparative advantage of nations)
• Time Compression (shortened product life cycles, shortened
development times, decreasing pay back period)
• Technology Integration (combining technologies to develop
new products, combining technologies to commercialize products)

(Ref: Managing Technology & Innovation for Competitive Advantage –

V.K.Narayanan, Pearson Education, Delhi, 2nd Indian reprint, 2003)

MSRSAS 5
 CHALLENGE TO INDIAN INDUSTRIES
• INDIAN INDUSTRIES FACE A LOT OF
CHALLENGES
• IMPROVE COST, QUALITY, COMPETITIVENESS,
PRODUCT INNOVATION, CUSTOMER FOCUS
• RISE TO A WORLD CLASS LEVELS WHILE
SIMULTANEOUSLY OVERCOMING A LOT OF
HURDLES SUCH AS

 SKEWED TARIFFS
 LABOUR LAWS BEING UNABLE TO ADDRESS THEIR
CONCERNS
 POOR WORK CULTURE
 EXODUS OF TALENTS FROM MANUFACTURING INDUSTRIES
(JOBS WITHOUT ENGINEERS & ENGINEERS WITHOUT JOBS!)
 POOR REWARD SYSTEMS

MSRSAS 6
EXCESS COST OF DOING BUSINESS IN INDIA
(Vision 2020 – Prof. Indiresan, ICFAI)

• HIGH COST OF MATERIALS

• LOW PRODUCTIVITY
• HIGH INTEREST COSTS
• TECHNOLOGICAL OBSOLESENCE
• COMPLEX , IRRATIONAL & MULTIPLE LEVELS OF
TAXES
• COMPLEX REGULATIONS/ PROCEDURES
• TIME DELAYS/ CORRUPTION
• NITPICKING CULTURE
• POOR MANAGERIAL COMPETENCE

MSRSAS 7
 ROLE OF MANUFACTURING

• NATIONS EVOLVE THROUGH AGRICULTURE TO

INDUSTRIAL TO SERVICE REVOLUTION

• FOR A COUNTRY LIKE INDIA, ONLY INDUSTRY

CAN CREATE GROWTH BASED ON EMPLOYMENT
– WE CANNOT COPY JOBLESS GROWTH MODEL
OF DEVELOPED NATIONS

MSRSAS 8
 ROLE OF MANUFACTURING
• UNFORTUNATELY, INDIA HAS LEAP FROGGED
FROM AGRICULTURE TO SERVICE REVOLUTION,
WITHOUT FULLY EXPLOITING THE BENEFITS OF
INDUSTRIAL REVOLUTION

• INDIA’S DEVELOPMENT IS SKEWED TOWARDS

SERVICE SECTOR WHEREAS OTHER SOUTH EAST
ASIAN NATIONS ARE FOCUSED ON
MANUFACTURING

• CURRENT INDIAN GDP HAS 25% WEIGHTAGE BY

AGRICULTURE, ONLY 25% BY INDUSTRY & 50%
BY SERVICES

MSRSAS 9
 INDIA & CHINA – A COMPARISON

INDIA CHINA

FOR THE YEAR (% of GDP) (% of GDP)

2003

Agriculture 22.2 14.6

Industry 26.6 52.3

(Manufacturing) (16.3) (39.3)

Services 51.2 33.1

MSRSAS 10
 ROLE OF MANUFACTURING

• ACCORDING TO CII – MCKINSEY REPORT,

MANUFACTURING EXPORT FROM INDIA
ARE LIKELY TO GROW TO $ 300 BILLION
IN 2015, FROM $ 48 BILLION IN 2003.
• INDUSTRY HAS TO GROW AT 17 % TO
REALIZE THIS TARGET, FROM THE
PRESENT 11%.
• ACTUAL GROWTH IN EXPORT OF
MANUFACTURING IN 2003 OVER 2002 WAS
20%
MSRSAS 11
 ROLE OF MANUFACTURING
• S.E. ASIAN COUNTRIES LIKE CHINA, THAILAND &
MALAYASIA HAVE 50% CONTRIBUTION TO GDP
FROM INDUSTRY BY ADOPTING BEST PRACTICES

• CONTRIBUTION OF INDIAN INDUSTRY MUST

ALSO RISE TO 40 - 50% OF GDP THROUGH WORLD
CLASS SYSTEMS IN ORDER TO
CREATE JOB LED GROWTH
ANNUAL INCREASE OF GDP AT >10%
PROVIDE FOR ECONOMIC WELFARE OF THE
PEOPLE

MSRSAS 12
 ROLE OF MANUFACTURING
• A 10% GROWTH RATE OF GDP IS FEASIBLE DUE
TO CONVERGENCE OF FACTORS
AVAILABILITY OF RESOURCES
MARKET OPPORTUNITIES
EMERGING COMPETENCY BASE

• THIS CAN CREATE 15 MILLION JOBS A YEAR

• BUT POSSIBLE ONLY THROUGH WORLD CLASS/

BEST PRACTICES IN MANUFACTURING

MSRSAS 13
 PROCESS LEVELS

• LEVEL – 1 = UNHEALTHY

• LEVEL – 2 = FAIR

• LEVEL – 3 = SATISFACTORY

• LEVEL – 4 = SUPERIOR

• LEVEL – 5 = WORLD CLASS

MSRSAS 14
BENEFIT OF WORLD CLASS

MSRSAS 15
 WORLD CLASS IN INDIA
SOME EXAMPLES
• TVS GROUP • ARAVIND EYE
• HERO HONDA HOSPITAL
• RELIANCE • BOMBAY
• TATA MOTORS DABBAWALA
• INFOSYS • AMUL
• JAIPUR FOOT • BHARAT FORGE
• MAHINDRAS
AND MANY OTHERS

MSRSAS 16
 ROLE OF BUSINESS MANAGEMENT

BUSINESS MANAGEMENT
• FOCUS ONLY ON FINANCIAL ASPECTS
• FOCUS ON EXTERNAL ISSUES LIKE STOCK
VALUATION
• GROWTH BY ANY MEANS – ORGANIC OR
M&A
• FOCUS ON CLINICAL ANALYSIS
• IMPERSONAL LINK WITH OPERATIONS
IS IT MANAGEMENT OF BUSINESS OR
BUSINESS OF MANAGEMENT ?
MSRSAS 17
ROLE OF ENGINEERING MANAGEMENT
• ENGINEERING MANAGEMENT
PEOPLE,
PROCESS
PRODUCTS

• CUSTOMER SATISFACTION
• BUSINESS RESULTS

• STAKEHOLDERS’ SATISFACTION
SHAREHOLDERS (Profit, Growth)
SUPPLIERS (Payment, Growth)
EMPLOYEES ( Compensation, Growth, Reputation)
COMMUNITY, GOVERNMENT (Employment,
Environment, Revenue)

MSRSAS 18
 ROLE OF ENGINEERING MANAGEMENT

ENGINEERING MANAGEMENT
• BOTTOMS UP APPROACH
• PROCESS BASED APPROACH TO BUSINESS
RESULTS
• FOCUS ON FIRST HAND OBSERVATION
• VALUE INCREASES WITH TIME
• HIGH RATE OF SURVIVAL
• COGNITIVE LEARNING IS BUILT INTO THE
SYSTEM

MSRSAS 19
 ROAD MAP FOR EXCELLENCE &
WORLDCLASS
• COMMITMENT FOR EXCELLENCE
• AWARENESS OF CURRENT STATUS
• CHANGE OF MINDSET
• KNOWLEDGE OF IMPROVEMENT TOOLS & ITS
ACQUISITION
• APPLICATION OF KNOWLEDGE TO PRACTICE
• CONTINUOUS IMPROVEMENT THROUGH PDCA/
SDCA CYCLE

THIS IS A RACE WITHOUT A

FINISHING LINE !!!
MSRSAS 20
 SERGEANT – BEETLE, WHAT DO YOU THINK OF THIS ?
BEETLE – I DON’T HAVE OPINIONS ON ARMY MATTERS;
I LIKE TO KEEP MY MIND AS RESTED AS MY BODY!

MSRSAS 21
 IMPROVEMENT TOOLS
• HIERARCHY OF IMPROVEMENT
METHODOLOGY
 FOCUS
 SOFT TOOLS
 HARD TOOLS
EXAMPLES OF SOFT TOOLS
• HOUSEKEEPING
• CONCURRENT ENGINEERING
• PROBLEM SOLVING TOOLS
• PROCESS CAPABILITY
• PULL PRODUCTION SYSTEM
• SET UP TIME REDUCTION

MSRSAS 22
 EXAMPLES OF SOFT TOOLS

• 6 SIGMA
• FMEA
• SMALL LOT PRODUCTION
• STANDARDIZATION
• STATISTICAL PROCESS CONTROL
• SUPPLY LINE MANAGEMENT
• VISUAL MANAGEMENT
• TEAM APPROACH
• TOTAL PRODUCTIVE MAINTENANCE
MSRSAS 23
SDCA/ PDCA CYCLE

MSRSAS 24
 EVOLUTION OF EXCELLENCE

• BUSINESS EVOLVES FROM A STATE OF

IMMATURITY TO A LEVEL OF HIGH MATURITY
LEVEL, BY CONSCIOUS EFFORTS

 UNCONSCIOUS INCOMPETENCE 
 CONSCIOUS INCOMPETENCE 
 CONSCIOUS COMPETENCE 
 UNCONSCIOUS COMPETENCE

• FUNCTIONAL EXCELLENCE IS ACHIEVED BY

RECOGONISING AND IMPROVING 2 FACTORS
– MANUFACTURING OUTPUTS
– MANUFACTURING LEVERS

MSRSAS 25
 BEYOND CUSTOMER LED

Unexploited
Unarticulated Opportunities
Blue Ocean Strategy

Red Ocean Strategy

Articulated

Served Unserved

MSRSAS 26
 BUILDING BLOCKS OF COMPETETIVE
ADVANTAGE

DISTINCTIVE COMPETENCES

RESPONSIVENESS
EFFICIENCY QUALITY INNOVATION

MSRSAS 27
 IMPACT OF MANUFACTURING
OUTPUTS ON PROFITABILITY
EFFICIENCY

LOWER UNIT
COSTS
INNOVATION QUALITY

HIGHER UNIT
PRICES

CUSTOMER
RESPONSIVENESS
MSRSAS 28
 MSRSAS

• INDUSTRY RELEVENT PG EDUCATION

• WORLD CLASS TRAINING IN THRUST
AREAS
• CONTINUOUS PROFESSIONAL
DEVELOPMENT
• DYNAMIC CURRICULA, UNIQUE
DELIVERY & EVALUATION
• INDUSTRY RELATED DEVELOPMENT &
CONSULTANCY

MSRSAS 29
 TYPICAL COURSE CONTENT – EMM

• MANUFACTURING STRATEGY
• PROJECT MANAGEMENT
• LEAN OPERATIONS
• QUALITY MANAGEMENT & SIX SIGMA
• ADVANCED MFG. PROCESSES &
MATERIALS
• COMPUTER AIDED ENGG.

MSRSAS 30
TYPICAL COURSE CONTENT – EMM

• SUPPLY CHAIN MANAGEMENT

• KAIZEN (INNOVATION/ IMPROVEMENT) &
TEAM BUILDING
• PRODUCTION PLANNING & SCHEDULING
• COMPUTER INTEGRATED MFG
• AUTOMATION & SIMULATION
• MANAGEMENT OF LEAN ORGANIZATIONS

MSRSAS 31