Aggressive Cost Reductions - Key to Survival Engine Manufacturing
The diesel engine industry is characterized by the
presence of several large players with a large number
of them being subsidiaries or having a technical
collaboration with reputed international companies.
The diesel engine manufacturing industry like the rest
of the automobile industry, is characterized by very stiff
competition, pressure on margins due to steep
increase in all raw materials, increasingly demanding
customers and stricter emission norms resulting in
continuous upgradation of product profile.
The company is the market leader in the manufacture
of High Speed Steel Cutting tools. It was faced with
increasing competitive pressures on manufacturing
lead times and service levels. Additionally it faced a
pressure on margins due to rising cost of inputs and
high inventory carrying costs.
The company had developed facilities and capabilities
at multiple locations in the city, which led to increase
overheads.
Cranking up an Engine Manufacturer – Wining with Full Value Spend (FVS)
The diesel engine industry is characterized by the
presence of several large players with a large number
of them being subsidiaries or having a technical
collaboration with reputed international companies.
The tractor industry in India is highly fragmented and
comprises of 14 players, including 3 MNCs. The
Industry Supply Chain faces significant implied
uncertainty of demand since it is influenced by
monsoons and govt. policies.
The industry is characterized by the presence of a few
manufacturers with global scales of operations, having
technology partnership with key international players.
Having large volumes is critical to being efficient in the
procurement & manufacturing areas.
For a player to be successful in the industry a
competitive platform needs to be created – some of the
key success factors include
The outlook for the Automobile industry has been
encouraging in the last few years due to increasing
demand driven by strong economic performance in the
domestic front, higher disposable incomes, and
increased government spending on roads and
infrastructure. The increasing demand brings with it
intensified competition and hence numerous
challenges for automobile companies for survival.
Maximizing shareholders value through Centralized Procurement
Discrete manufacturers have found themselves
squeezed in today's environment. Input costs
have risen, but the market has not accepted
price increases. Companies have often been
forced to lower prices or increase promotions to
stimulate demand. The result has been
pressure on margins and hence material cost
has been the key source of cost reductions
Setting New Benchmarks Improving “First Time Right” and Reducing Rejections by 1/3rd within six months at a leading Auto Ancillary Manufacturer.
The Indian Automobile sector is doing really well for
the last couple of years. The sales of automobiles have
grown in double digits pushing up the demand in the
entire supply chain. The future also looks promising,
with a growing middle class and steady GDP growth.
These positive developments have spelt good news for
the auto ancillary industry, whose performance has
started improving.
A Process to set early warning signals to ensure that the wholesale banking assets perform
Every bank is rushing to get it’s share of the pie from all possible business opportunities. At the time of acquisition, the asset quality appears satisfactory. However, the worry in the mind of most bankers’ is that of consistency of the asset quality over a period of time. It is becoming increasingly clear that a risk-weighted bottom-line number that factors in the quality of the asset throughout its lifetime is the need of the hour.
Banking on Six Sigma Six Sigma in retail personal financial services
The myriad of choices and innovative offerings in personal financial services have put a big smile on the face of the customer. The financial organizations, on the other hand, are faced with the challenge of meeting ever-growing customer expectations, while keeping cost under control.
CASHING IN Maximizing value through effective Cash Management
Banks are always looking for opportunities to exploit their existing network and technology to enhance revenue. Now, as fee based revenue and sourcing of low cost funds become a priority for banks, Cash Management Services (CMS) offer an excellent opportunity to maximise value within existing parameters.
Centralisation - What technology makes possible, Six Sigma processes make successful
The past few years have seen India emerging as the
principal hub for centralisation of processes of global
majors in the banking and financial services.
A few proactive players in the banking sector have
already started exploiting technological advancements,
networking of branches and common databases. The
outcome - an emerging model of centralised
operations and decentralised service which gives
cutting edge advantage both in terms of reach and
cost.
The banking industry in India is undergoing a major transformation due to
changes in economic conditions and continuous deregulation. These multiple
changes happening one after other has a ripple effect on a bank (Refer fig. 2.1)
trying to graduate from completely regulated sellers market to completed
deregulated customers market.
Having the cake and eating it too – A Process to set early warning signals to ensure that the wholesale banking assets perform
Every bank is rushing to get it’s share of the pie from
all possible business opportunities. At the time of
acquisition, the asset quality appears satisfactory.
However, the worry in the mind of most bankers’ is that
of consistency of the asset quality over a period of
time. It is becoming increasingly clear that a riskweighted
bottom-line number that factors in the quality
of the asset throughout its lifetime is the need of the
hour. Traditional Credit Monitoring, a legacy of the preliberalisation
era, has unfortunately not been redefined
to the changing times.
Leveraging Six Sigma in Secured Assets (mortgages) at MNC Bank
Given the low credit offtake, banks are increasingly
focussing on retail assets as a growth area. The
industry is witnessing stiff competition and a interest
rate war among key players. This has resulted in a
buyers market where the customer has a multitude of
choices. Leading players have realised that interest
rates are not a key source of competitive advantage.
Also, the spread has been shrinking due to falling
interest rates.
Leveraging Six Sigma to improve profitability & service quality in trade services
With lower credit offtake and shrinking margins, fee-generating non-fund based facilities have acquired a new importance. This has also meant increased competition in this market.
Maintaining and Retaining Customers in Credit Card Industry thru Repayment management
The past few years have seen various MNC and Indian
Private Sector Banks compete with each other in the
Credit Card Business. As consumer spending soars
and Indian customers come to grips with the idea of
purchasing on “credit”, banks are only too happy to
satisfy customer needs for multiple credit cards.
On the other hand, banks face the challenge of
processing the repayments.
Operational Risk is one of the important arms of the
risk management triangle – the other two being Credit
Risk and Market (Treasury) Risk. Traditionally
Operational risk has been captured in credit and
market risk. Nevertheless, recent events in many
countries indicate that if due attention is not paid to
operational risk management, often a very large
amount of loss may have to be sustained by a bank.
Moments of Truth Transforming the customer experience at a Bank branch
The landscape of banking has been transformed by Universal banking and Merger & Acquisition led growth of new generation private sector banks. Expecting better service standards, more and more customers are switching to what they perceive as more efficient and customer friendly banks.
Payment At Par Managing Dividend warrants process at a New generation bank
Today the number of banks offering Payment at Par facility for Company issued warrants is many. These banks face many challenges in doing this business. Coordination across the various branches for receipt of warrants, reconciliation with the branch debits to the physical warrant receipts.
Thanks to the retail thrust given by most of the banks, there has been an unprecedented growth in loans – Home finance, autos, commercial vehicles, two wheelers, consumer durables, and personal loans.The market penetration is now extending the length and breadth of the country. Added to this challenge are the product variant requiring different service requirements of the customer such as variable interest rates, foreclosure, balance transfer, etc.
Shared Services - While technology makes it possible, Six Sigma processes make it successful
The past few years have seen India emerging as the
principal hub for carrying out remote processing of
both voice and data. Given the significant cost
advantage that this strategy offers, this business
volume is poised for a massive growth. A few proactive
players in the banking sector have already started
exploiting technological advancements, created a
remote processing centre in India and moving many
transaction processes to India. It is only a matter of
time before others follow suit.
Six Sigma - The tool to maximize cost efficiency in all Post Trade operations in Treasury Back Office
Today many institutions are aiming for complete endto-
end automation of financial transaction processing,
extending from automated tools to help support the
investment decision through to the complete order and
settlement cycle.
By eliminating human involvement in routine
transactions, the goal is for the marginal internal cost
per trade to tend to zero.
“To spend is no longer a Sin!” declared the consumer
pundits. The Financial World responded enthusiastically
& intensified their sales efforts, trying to woo customers
with their credit card offerings. Result- a market
witnessing large growths in the card base & large number
of players
Speeding to success in Auto Loan û Winning the race with SIX SIGMA
Auto financing is an extremely competitive business in India, particularly since it is accentuated by the underlying stagnation in auto sales. Car sales and consequently financing (70% of the cars are financed) had a low growth in 1999-2000 and was flat in 2000-2001. While there was a movement upwards, (from economy models to mid size to premium) the number of new entrants into the economy segment has dropped.
Towards Greater Objectivity, Standardization and Speed in Credit Appraisal for Wholesale Banking Proposals
In today’s market conditions, when wholesale credit off-take has slowed down, every business opportunity has to be grabbed, and that too quickly! The speed with which a Bank is able to appraise and disburse the money becomes the clincher in many a deal. No wonder then that almost every bank worth its name is grappling with the question, “How do we make our responses swift?”
Wholesale Banking Six Sigma processes in transaction banking & customer acquisition
The slowdown in the economy has lowered the credit offtake while falling interest rates only add fat to the fire. The new rules of the game make improving Operational Efficiency a critical lever for CEO’s to deliver higher returns to shareholders.
Adoption of Six Sigma in a software company and developing a robust methodology for implementation
Six Sigma as a continuous improvement methodology
has been widely accepted and adopted by leading
companies who they have significantly benefited by
this. Software companies have been slow in adopting
Six Sigma as they are not sure as to how it will benefit
them. There is a certain amount of scepticism in its
adoption and the perceived conflict with the more
commonly accepted standards prevents these
organizations from embracing Six Sigma and
benefiting from the same.
Creating a best-in-class and scalable Shared Services organization for managing payments processing, accounting and reporting functions through process re-engineering
Outsourcing is today a widely accepted model and
many organizations are centralizing financial
processing, accounting and reporting processes
spread across disparate regions in a single location.
However, most organizations do not have a holistic
plan or a long term strategy and the approach evolves
over time. There is piecemeal migration of different
activities over a period of time and the mindset is of
moving people rather than moving work. This results in
moving jobs to a remote location and the organization
does not get the full benefits that could accrue from
such an initiative.
Defining internal processes to streamline business in a reputed and growing KPO
The success in outsourcing business process
operations to India has encouraged many firms to start
outsourcing their high-end knowledge work as well.
Cost savings, operational efficiencies, access to a
highly talented workforce and improved quality are all
underlying expectations in offshoring high-end
processes to India
Partnering for Operational Excellence – Business Process Outsourcing (BPO)
A recent study by Nasscom shows that the customers came to India
because of the Potential in terms of Cost Arbitrage, stayed here
because of Performance but will now look for Operational
Excellence
Building Blocks - Creating a high-performing organization at a cement plant
The cement industry is teeming with competitors, the
pie is getting smaller, big fish are eating the smaller
ones, and there is no place for players who aren't
ready to innovate, change and look at the current
economic downturn as an opportunity. The future looks
good - it is the present that needs attention. The only
way an organization can survive this turmoil is by
adopting the right approach.
Designing business processes and structure for the ready mix concrete
This is the age of quick fixes, short cuts and laboursaving
devices. To be successful in this scenario, it is
necessary to come up with products that are not only
convenient but also bring a certain degree of simplicity
to the life of the user. Ready Mix Concrete (RMC) is
one such product. What began as an effort by the
cement industry to boost sagging bottom lines is now
one of the best and most futuristic options for
expansion and growth.
Lean & Sustainable Manufacturing at a Cement Major
The Cement industry is a capital-intensive, high fixed
cost proposition. The capital cost of a new Greenfield
project could be about 3-5 years of revenue.
• On the demand side, the cement industry in India
faces an oversupply scenario and is prone to high
demand variability across months and across
regions. This is so, since, cement consumption is
impacted by several macro-economic factors like
monsoon, industrial growth, savings rate, interest
rate, governmental policies etc.
The Right Mix Designing business processes and structure for the ready mix concrete (RMC) business
This is the age of quick fixes, short cuts and laboursaving
devices. To be successful in this scenario, it is
necessary to come up with products that are not only
convenient but also bring a certain degree of simplicity
to the life of the user. Ready Mix Concrete (RMC) is
one such product. What began as an effort by the
cement industry to boost sagging bottom lines is now
one of the best and most futuristic options for
expansion and growth.
Tapping the hidden potential Increasing throughput by 25% with zero capital investment at a ceramic insulator manufacturer
The call today is that businesses learn to earn the last
paisa from their existing facilities. In a highly
competitive market, where demand is typically less
than supply, some companies in the ceramic insulator
business find themselves blessed with a seller’s
market. In such a scenario, utilisation of and building
upon hidden capacity becomes critical for success.
Companies cannot afford to run existing plants
inefficiently with low capacity utilisation.
With the reduction of import duty over the years,
industry is now open to global competition. Further
the duty differential between final products and raw
material (naphtha) is narrowing down, and
companies are facing increasing pressure on
margins.
No sizeable capacity addition is expected globally
in the next two years and demand is growing at a
fast pace. This would result in narrowing of demand
supply gap. A deficit of 5mmt and 4.5mmt of PE
and PP is anticipated in Asia in the next two years
Counting on every drop to plug the leaks in profits
It is not uncommon that management attention and
efforts are predominantly occupied by marketing
issues, and understandably so! However, in their quest
for earning the extra rupee, are they leaving out the
money that is already on the table? The fact is, when
competition is aggressive, every rupee counts.
ECS helps a lubricant major to realize its potential
Other than being FMCGs, what is common to
industries that manufacture soft drinks, lubricants, haircare
products?
Bottling operations – the backbone of their supply
chain.
It is not uncommon that management attention and
efforts are predominantly occupied by marketing
issues, and understandably so! However, in their quest
for earning the extra rupee, are they leaving out the
money that is already on the table? The fact is, when
competition is aggressive, every rupee counts.
The client, one of the leading dairies in
Gujarat, was in the worst possible tight spot when it
approached ECS: Its products were perceived to be of
poor quality by the market. This problem was further
compounded by the fact that the workforce lacked any
perspective on the business, customer-relation and
competition.
Indian entertainment and media industry is poised to
grow at 19 per cent compounded annual growth rate
(CAGR). The revenue within the sector is expected to
reach Rs 83,740 crore by 2010 from the current Rs
35,300 crore.
Emergence of new channels and proliferation of new
products are putting tremendous pressure on the
supply chain of FMCG companies.On the one hand where new retailing formats help
increasing sales, on the other hand they also give
opportunity to buyers to look at the product before
buying it. This makes the freshness and availability of
products a very important determining factor in sales
proceeds. The critical success factor for the company
is to modify sales and operations (S&OP) process to
compress planning cycle.
The edible oil industry is growing at a healthy pace
along with the rest of the economy. The growth has
been accompanied by significant changes in the
industry structure.Traditional manufacturers are
moving up the value chain and focussing on retailing
branded edible oil.
Supply chain of garment retailing with short product lifecycle
The domestic clothing market is estimated to be at Rs.
493 billion of which the share of ready-mades is Rs.
300 billion.The Indian apparel market has been
growing at 4-5 per cent by quantity and 13% in value
terms.The branded apparel market is estimated to be
worth Rs. 150 billion.
Identifying and analyzing the opportunities within a leading IT products and services company for process improvement and redesign using the Six Sigma methodology
In today’s competitive environment there is no room for
error. Organizations must constantly look towards
improving their internal processes and capabilities.
Keeping this business requirement in mind one of the
leading IT product and services company wanted to go
in for a Six Sigma initiative.
Driving Motor Insurance business for success using Six Sigma
In recent years with the opening up of the sector and
the entry of global giants the insurance industry is
witnessing high growth and increased competition for a
large share of the pie.
Ensuring excellent customer service in Life Insurance
India, with about 200 million middle class households,
presents a huge untapped potential for players in the
Insurance industry. Saturation of markets in many
developed economies has made the Indian market
even more attractive for global Insurance majors.