Keynote Address 2 Gaining Sustainable Competitiveness and ...

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Oct 28, 2013 (3 years and 9 months ago)

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Gaining Sustainable Competitiveness and Achieving
Operational Excellence

Confidential

Regu Ayyaswamy

Vice President,
Global Head
-

Engineering and Industrial Services

TATA Consultancy Services

regu.ayyaswamy@tcs.com

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Business dynamics are here to stay


Uncertain macro environment


Continuously evolving customer expectations


Competitive pressures and Need for
differentiation


Proliferation of technologies from Consumer
electronics, Telecom, Energy

0
200000
400000
600000
800000
1000000
1200000
1400000
1600000
1800000
India vehicle Production

Source Bloomberg

48.0
50.0
52.0
54.0
56.0
58.0
60.0
62.0
Source ISM

Increasing expectations, complexities and fluctuating demands

PMI Index

Source WSJ

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Achieving Sustainable Competitiveness

Sustainable Competitiveness

Macro Economic
trends

Breakthrough
products by
competition or
substitutes

Changing market
needs

Lack of Operations
efficiency

Threats

Government regulations


Carbon credits

Soaring Oil prices and Recession


small cars

Climate change concerns


alternate fuel source / energy efficient

Market shift
-

Emerging markets

Medical devices company



Co innovation and engineering partner

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Achieving Sustainable Competitiveness

Sustainable Competitiveness

Macro Economic
trends

Breakthrough
products by
competition or
substitutes

Changing market
needs

Lack of Operations
efficiency

Threats

Google, Apple
vs

RIM


RIM says it shipped around 13.2 million
devices. That may sound like a significant
amount, but compare to
the 18.6 million
iPhones

Apple sold in its last quarter
.


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Achieving Sustainable Competitiveness

Sustainable Competitiveness

Macro Economic
trends

Breakthrough
products by
competition or
substitutes

Changing market
needs

Lack of Operations
efficiency

Threats

Smartphone buzz missed


Nokia

Revolutionary product but failed
-

Apple’s Newton


Changing business portfolio


P&G

Staying current

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Achieving Sustainable Competitiveness

Sustainable Competitiveness

Macro Economic
trends

Breakthrough
products by
competition or
substitutes

Changing market
needs

Operations
Efficiency and
Agility

Threats


Challenging Times

Chrysler

GM

Pacific Gas and Electric company

Texaco

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Achieving Sustainable Competitiveness

Sustainable Competitiveness

Continuous process of foreseeing the future and preparing for the same

Macro Economic
trends

Breakthrough
products by
competition or
substitutes

Changing market
needs

Operations
Efficiency and
Agility

Threats

Engineering Excellence

Operational Excellence

Solution

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Engineering Excellence

9

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Engineering Excellence
-

COIN

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Getting it right


Product, Price, Time

After sales
service

New product
development

Manufacturing

Supply
chain

Sales and
marketing


Ability to quickly respond to
changing requirements


Innovation


Need to match fluctuating
demands


Agile and flexible manufacturing

Ability to deliver the products to
customers quickly at optimum cost


Brand visibility and brand positioning


Communicating the right messages to
customers

Customer

Need for continuous listening to
unstated needs of customers

Need for seamless information flow across the organization

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Islands of automation doesn’t help

Ability to quickly adopt to changing scenarios

Integrated Landscape Drives the Value

PLM

Product
Design

Product
Engineering

ERP

Collaborative
Supply Chain

MES

Operation Execution
Mgmt

Enterprise Asset
Mgmt

APS

QMS

Quality System

Plant engineering

Digital manufacturing

Listening
platforms

Business
Intelligence

Release to manufacturing

Plant Specific MBOM

Order
Status

WIP Status

Quality Data

MBOM

Asset Master

Data

Business Rules &
Constraints

Line Configs

Cycle Time

Tracking Info

Actual Cycle Time

Genealogy

Transaction
Processing

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Integrated Landscape Drives the Value

KPIs combined with
appropriate context for
decision support and to
assemble transaction data

Production information is
distilled into KPIs

Large volumes of production data
aggregated from multiple data
sources

Aggregate

Contextualize

Analyze

Propogate

Predict

ERP

EAM,

MES

Quality

Visualize


Globally


Local
Performance


Local
Performance

1

2

3

4

5

6

Source
-
Gartner

Achieve manufacturing intelligence

Production, Quality, Inventory, Maintenance

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End result


Excellence

SMART

Plant

Distribution

Centre

Customer

Supplier

Master DC

Energy

Waste

Corporate

Agile, demand
-
driven
supply chain

Quick response to
customer demands.

optimize production
and minimize costs.
Flexible
manufacturing

Products are tailored to the
customer; traceable throughout
their service life; and recycled,
reengineered, or
remanufactured post consumer.

Smart factory systems
that optimize electricity
use.

Smart Factory will
reduce Waste (Air/
Water)

Continuously listen to
customer’s changing
needs and brand
perceptions

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Major Business Drivers:


Flexible, Scalable and Configurable to
address uniqueness of every plant


Standardization of performance
measurement parameters across
globe using standard mechanism

-

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-

Benefits Realized:




36% reduction in defects in end
product



21% reduction in defects found
internally



3~4% improvement in productivity



5% Improvement in first time right

Solution Highlights:


Integration with ERP, sequencer, PLM,
Maximo
,
BI, PLC


Configurable solution to address changes on the
plant floor


Guidance to the operator for part selection
through failsafe and through adoptive bin
lighting


Defect tracking and resolution mechanism


Automatic cycle time capture


Quality dashboard to enforce discipline before
dispatch

US Based Automotive Tier 1

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US Based Automotive Tier 1
-

Integrated Landscape

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Business Layer

MES Layer

Control Layer

OPC

Field Device

Product and shop
Order Information

Product
information

WO info

Assembly

Information

MES
-

PLC Handshake Tags

Panel

view

Maximo

Work Instruction

Server

APS

Label printer /barcode

Database Server

Application Server

Test Server
-
2

Test Server
-
1

ERP

PLM

PLC

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India based Automotive Tier
-
1

Major Business Drivers:


Supply of assemblies based on OEM’
Just In Time requirement


Need to handle complex product mix on
the same line

-

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-

Benefits Realized:




Achieved JIT needs of the OEM
with a ability to supply in right
sequence, on the final assembly
line




Improved product quality through
automation of test and validation of
the components going into
assembly


Solution Highlights:


Integration of PLC, Server and Barcode
readers through wireless network, ERP


Configurable set up to address changes in
the line and introduction of the new
products


Parts validation on the key stations


Torque fail safe through PLC for critical
stations


Part failsafe through pick light system


Synchronized subassembly line
management


Semi automated Test stations

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India based Automotive Tier
-
1


Integrated landscape

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Uncertain environment are here to stay;

Developing Agility of response is key.


Summary


Engineering and Operation Excellence are key: Integrate processes and
information flow across the enterprise



Invest on continuous capability development and improvement in Process
reliability


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Thank You