Monday, July 21, 2014

FIVE KEY QUESTIONS FOR ASSESSING YOUR CONSULTANTS....

Five key questions for assessing your consultants:-
Managers are bombarded with advice about how to be more effective, from how to make best use of their time to how to finesse a budget, mentor their staff and handle office politics. But one important area that doesn’t receive much attention is how managers can get the most out of their consultants.

Organizations have developed a variety of systems and processes to help manage consultants, but many involve elaborate and time-consuming surveys. As a corporate manager, I worked with a variety of consultants over the years and realized there were only five questions I needed to ask them:

1. How have you helped me achieve my business objectives?

This question elevates the discussion from whether the specific service or product provided was well-executed or high quality to whether it supported your desired business result: Did we earn market share? Did we increase revenue? Did we receive government approval for a new project or product? A good report or marketing campaign isn’t useful if it doesn’t contribute to an end result.

2. How have you helped me manage my budget?

This gets to the heart of one of the most important issues in the client-consultant relationship: value. Your consultant might bill X for something, but you might value it at half of that. Conversely, the consultant might bill at Y but create significantly more value for your company. You want consultants to think about how they provided the most value to you. Did they provide the service or product in the most cost-effective way? Did they provide exactly what you needed to meet your objective and only what you needed, or did they provide unnecessary extras that can be eliminated in future?

3. What did you teach me to help me do my job better?

This ensures your consultant is focused not only on completing the immediate assignment but is also thinking about your long-term interests and creating lasting value for you. No organization should rent a consultant’s expertise or skills without getting some lasting benefit beyond the assignment, whether it’s in-depth knowledge about how a system works, best practices, a valuable new process, or a new relationship with a key stakeholder.

4. What did you learn from me so you can serve me better in the future?

Learning is a two-way street, and good consultants will demonstrate that they are continually learning about your business, your issues, your team, your management style, your culture, your strategy. The more your consultants learn about your company, the better the advice they will be able to offer, and the more cost-effective it will be.

5. What can we do to improve how we work together?

You and your consultant share a responsibility to continually assess the relationship and make adjustments to improve it. Suggestions can include having clearer objectives for meetings; involving the consultant earlier on; having the company and/or the consultant follow up in an e-mail after assigning or being assigned work; or providing reports to your company in shorter formats.

If your consultants are working with you on a short-term assignment, you can ask these questions halfway through and again at the end. If it is a longer-term arrangement (such as a retainer or an informal multyear relationship), asking these questions on a quarterly basis works well. Ask your consultants to answer the questions in writing one week before you meet with them for the review. Their answers to all five questions should fit on one page.

Posing these questions on a regular basis and engaging in an open discussion about the answers will lead to a better relationship with your consultant, better consultant performance, and greater value for you as a manager.

Call for a consultation:- We offer a range of services, including group learning events, individual consultations, and practice improvement initiatives.

Call or write to find out how we can work together to achieve your business and career goals.
IUBA-INDIA (India & Asia Pacific) 

Project Logistics:Moving the Big,Wide, Heavy.

The present economy has served as a reminder that there are no guarantees in business. Many companies are finding themselves struggling to stay afloat, and many are sinking. In better economic days, a company could survive with a moderate profit margin achieved through dedicated attention to its bottom line. Focusing on values increases performance levels, improves service, reduces employee variability, and supports sustainability.


Our Prime Area - IT, Electrical, Ectronics and Telecommunications Sectors. Our Verticals is Project Cargo & Project Engineerings and Project Management Solutions and Consulting, Investigations and Intelligence Bureau Management Reporting, Internet & IT-enabled Services, Software & Web development Solutions, Training and Installation, Field Maintenance and C&F Support Services.
IUBA-INDIA:- We take pleasure to introduce ourselves as consultants for various services applicable to Business Organizations & Individuals in specific Organizations explore every avenue for growth & spread & project organizations need major services to supplement this growth and expansion. We provide these major services & supports.

To Local Business Organization: (In India)1) Project Management Solutions:-(India & International)Site Survey, Testing, Installation, Commissioning and Integration Solutions
System & Engineering Solutions,
Operation , Maintenance and Customer Care Solutions,
Project Supply Chain & Logistics Solutions,
Outsourcing & Servicing support and C&F Solutions,
Quality Management, Lean&Six Sigma Services,
Technical Recruitment & Training Solutions.
2) Sales /Marketing - Business Development (India & International)All India - Worldwide Marketing set up / Dealers-distributors - channel partners - resellers setting up / Direct target audience tapping / existing clients to be tapped / Public Relation management.
Production Planning and Supply Chain Management Solutions
Opportunities for Inventory Optimization and Acquisition Cost Reduction.
Recruitment & Training and Seminar Solutions.
3) Software & Web Development Solutions:-SAP & Oracle / SQL Database, ERP-BaaN, Scor-8.0, Lean-PDCA / SCM / MRP-II / Barcoding with extensive practical exposure in full life cycle implementation.
We provide Demo on "We'll explain how you how to Build Software Faster Through Application Integration" The fastest way to create new software is by integrating existing applications to add new functionality. Not only do application integrations save money by reducing the cost of software development, these also can help increase your corporate efficiency by reducing manual steps - and by optimizing business processes.
We also provide domain name registration, reliable Linux web hosting space, best windows web hosting space, unlimited reseller web hosting server, cheap web designing & affordable web development solutions, business email account, professional business website, live chat integration, world class website builder, E-commerce shopping cart, logo designing, banner designing, flash website, private labeled domain name registrant service, we also help in setting up software & web development company.
4) Advertising & PromotionsAll kinds of Advertising - Creative /brochure /catalogue / website/ search engine submit/ print media/visual media / car-van / documentary outdoor advertising / event management / branding / direct response advertising / various promotional tools. Talent Management & Promotion / Model shoot & Promotion / Mobile Marketing / Exhibitions / Celebrity management
5) Manpower & TrainingManpower supply to companies & training programs for staff
6) Liaison & RepresentationCan represent companies in NCR-New Delhi & other Metros for all kinds of liaison & representation
7) Trading , Finance, Investment and Insurance.
Helping to choose best investment and trading knowledge in Stock market {Equity / F&O / IPO}, Insurance and Mutual funds to get and gain technical and fundamental information and how to make use of them and in which situations.
8) Business Buy & Sale
Any kind of Business or Individuals - assets buy & sale in India /worldwide
9) Mergers & acquisitions
All kinds of mergers or acquisitions in India or worldwide
10) All kinds of Event Management of companies including Master of Ceremony (MC)Companies ceremonies / celebration events / any other event consultation & outsourcing .
To Individuals (In India)1) Job Placements
2) Overseas opportunities (work permits only to trade segments & Immigration & overseas education)
3) Talent Management & Promotion for individuals with skills across India or International.
To Overseas Business Organizations:1) Marketing - Business Development (India & International)
2) Liaison & Representation
3) Tie Ups / Alliance / Franchisees with Indian Companies
4) Outsourcing Services
5) Quality Manpower supply - Skilled / Technical / Semi Technical / any other
6) Merchandising /Selling- Products & Services
7) Overseas Companies/Business Organizations and Individuals support for Exhibitions & Seminars in India.
Vision Statement
– We are dedicated to offer our customers, the products and services of highest quality at reasonable price, through innovative ideas & value for money solutions, by harnessing human creativity.
– Presently the Indian economy is booming and businesses are growing at fastest ever rates. Huge investments are being planned and disbursed. People are talking about double digit economic growth rates.
– It’s right time to achieve higher productivity and efficiencies in monetary management as well as resource utilization.

Mission Statement
– At
IUBA-INDIA, our mission is to strengthen India’s large pool of Intellectual capital i.e. human resource for the benefit of the industries, society, country and the world.
– We thoroughly assist in evolution and development of highly productive and efficient human resource through hard core techno-behavioral training, business consultation, latest technology introduction & implementation support and project management, in ever-growing technology-driven corporate as well as government / institutional sphere.
– Multi Industry – Multi Domain Knowledge Process Expertise.
– Multiple Project experienced people in business consulting.
– Participation in new Technology Evolution through business association and networking.

IntroductionIUBA-INDIA Approach Investments in Business and materials management improvement & projects yield high returns, when we appropriately focused. A diagnostic baseline provides the foundation to make informed decisions on implementing the strategic plans that ensure maximum return on investments.

Proven expertise in implementation of latest IT-Technology, ERP-Software Solutions with Planing and Supply Chain & Materials Management and Logistics New techniques to maximize operational efficiency.

A strategic planner with expertise in Business and Material Management activities involving, Material planning with complete control and Analysis of Materials Inventory of entire organization. Activity report spreadsheets, graphs for Inventory Analysis, Optimum service level Analysis, Cost of Ordering and Cost of Inventory Carrying Analysis, Stock room service and Non-Stock Purchase Cost Analysis, Replenishment Cost Analysis, Implementation Cost Analysis, SWOT-Analysis and Operational Pressure Points Analysis.,

Analyzed various process for Vendors rating/Evaluation with Technology, Quality, price, Delivery time and After Sales Service factors are considered with EOQ, ABC and Three Tier method for facilitating the decisions making purchase process.

Analyze and maximize shipping and logistics methods across all India Branch / Dealer / Distributors / Customers & Project Locations to achieve double the volumes of business.Set targets and measure progress towards annual cost reduction initiatives, and support project metrics. Participate in cross-functional team(s), to help improve overall manufacturing process by providing visibility of inventory and utilizing spreadsheets, graphs, etc.,
Eexperience in Push & Pull Production Systems, “Lean Manufacturing (PDCA)”, Oracle-11, SAP- all modules (BaaN) & Supply Chain Excellence MRP-“SCOR” 8.0 Model with full life cycle Implementations.

Fully conversant with latest inventory management techniques & Multiple Inventory Replenishment Strategies - FIFO, JIT, KANABAN, EOQ, MIL, ABC analysis, 3rd Party (Job Work) & Vendors Managed inventory’s, Reorder Point, Methodologies. Extensive practical exposure in full life cycle implementation of ERP(BaaN) SAP-R3-All modules, Oracle-11, MRP-II, SCOR-8.0, Lean-PDCA and Bar-coding systems.
Please visit our other Web/Blogs address to get full information.
Given the opportunity, I would be pleased to meet with you and discuss, how I might be able to promote the growth of the company.
I am looking forward to receiving a possible reply form your side.
Thanking you,
Sincerely,
N.A. Krishnan.
President and Co-Founder.(IUBA-INDIA)
Linked In-Profile :-
http://www.linkedin.com/pub/arthi-krishnan-arthikrishnan2002-yahoo-co-in/45/883/432
+91-9717236514, 9871386379. E_mail:- info@iubagzb.net,
mailto:iubagzb@gmail.com
Call me free with Skype-ID.(Can Speak & Chat with me)- "iubagzb1












Saturday, July 21, 2012

CONFIDENT !!! and Achieving Effective Inventory Management

IUBA-INDIA :-Inventory Analysis gives you actionable information about your inventory investment. You can understand consumption, turns, returns, and material movements, in units or cash, in averages or spreads. You can analyze any aspect of your inventory by vendor, material, material group, warehouse, region, status, or any other perspective you choose. Find out how any measurement compares to last year, how it’s trending over time, and so on.

* How much lead time is there between the request for stock and the required date for the stock and how has this changed over time?
Opportunities for improvements analyze vendor and product performance and use the profiles to foster strategic supplier relationships. Of course, no function operates in isolation. An enterprise-wide implementation of our Performance Applications lets you see causes and effects across functions. You can investigate billing accuracy between inventory and accounts payable, perform vendor analysis in conjunction with procurement, and carry out demand planning and ensure order fulfillment with sales shipping. This strategic enterprise-wide analysis lets your organization manage with confidence.

Inventory organizations must balance meeting customer demand with maintaining an optimum stock level and contributing to internal cash flow. It’s crucial that the company understand internal inventory activities and how they affect other functional areas to keep customers happy and maximize inventory efficiencies.

IUBA-INDIA’s Six key areas of analysis answer 450-plus critical business questions, using more than 70 key performance indicators (KPIs) and over 40 reports. Real-time interaction with the reports and the 16-Dimensions lets you manipulate the information and drive deeper analysis. You (Company) gain an in-depth understanding of your past and current stock level and movement that lets you: • Ensure stock is meeting the demands of internal (MRO and manufacturing) and external customers.
• Manage the cost of owning inventory.
• Review stock levels.
• Identify opportunities to optimize inventory levels.
• Improve operational performance.

STOCK OVERVIEW AND VALUATION ANALYSIS
What stock are we carrying, where is it, and what is it worth?
Understand your current inventory investment and how it is distributed.
• What has been our average corporate investment in stock this period, last period, and over the last year?
• How many units of inventory are we holding by specific material groups? And which warehouses, plants, locations?
• How many days of inventory do we have in each warehouse, and has t amount been meeting demand in each region?
• Are excess inventory reservations prevalent in specific warehouses or material segments?
• How much lead time is there between the request for stock and the required date for the stock and how has this changed over time?
Sample KPIs
• Reserved quantities and values
• Withdrawn quantities and values
• Confirmed quantities and values

MATERIAL MOVEMENT ACTIVITY ANALYSIS
Analyze stock movement in and out of inventory and within the organization,and understand how goods receipts, issues, and transfers relate to stock levels, shortages, and processes.
• How many movements have been processed this period compared to last a how do they break out into goods receipts and issues?
• What is the number and value of goods receipt of inventory processed material from a specific vendor to a specific warehouse?
• What proportion of inventory was received into unrestricted inventory, quity control, and other restricted statuses over the last quarter?
• What is the average number of goods issues processed this period across organization and in specific warehouses?
• What materials were issued, how many issues were related to each material, and from which shipping points?
• What types of issues have been processed, and what proportion of materials
have been issues to order fulfillment, consignment, and scrap?
• How many receipts have been processed by employees this period?
Sample KPIs
• Movement quantities
• Movement values

DEMAND ANALYSIS
Determine whether stock levels and fluctuations are letting your company meet customer demand.
• How many goods issues were processed this period versus last to manufacturing, how many to maintenance, repair, and operations, and how many fulfill sales orders?
• What specific material segments were issued and how did this compare stock levels across the company?
• What were the maximum and minimum levels of inventory reached acrose warehouses and are these fluctuations within predefined limits?
• How have forecasts for specific items changed over time and do they compare
to the demand for those materials?
Sample KPIs
• Forecast period value • Seasonal forecast index values
• Corrected forecast values • Forecast usage quantity
• For materials experiencing the most stock outs, what were the related zero stock counts and zero stock days?
• Moving average usage
• Required usage
• How much lead time is there between the request for stock and the required date for the stock and how has this changed over time?
• Reserved quantities and values
• Withdrawn quantities and values
• Confirmed quantities and values

MATERIAL RESERVATIONS ANALYSIS
Avoid unnecessary excess stock and shape inventory policy on reserved stock. Understand how reservations for internal or external customers impact stock levels and ability to meet demand.
• How effectively has confirmed stock met the requirements for a specific material this period as compared to last?
• How do your warehouses rank in terms of meeting requests for inventory full, and are some warehouses consistently underperforming?
• What percentage of confirmed reserved stock was not withdrawn from inventory, resulting in unnecessary excess stock?
• Are there any warehouses or storage locations that are performing outside
corporate standards for physical count accuracy?
• Are shortages consistently occurring within specific materials groups or materials,
or are these shortages anomalies?
Sample KPIs
• Book and physical stock level count
• Book and physical stock group currency value
• Actual stock level and group currency value
• Relative stock accuracy percentage

PHYSICAL INVENTORY ANALYSIS
Find out whether what you have in inventory is what you think you have.
• How accurate have our physical counts in units been across the organization this period and is our percent accuracy improving?
• How large have our shortages or overages been on average and where have they occurred?
• Did any warehouses experience zero stock levels this period and, if so, how
often and how many days for specific materials?
• How many “stock outs” occurred across the organization, and did specific
warehouses and materials have more stock outs than others?
• For materials experiencing the most stock outs, what were the related zero
stock counts and zero stock days?
Sample KPIs
• Transaction counts by customer
• Average transaction values by customer
• Number of units issued by customer
• Overusage quantity
• Moving average usage
• Required usage

INVENTORY FORECAST ANALYSIS
Improve your ability to forecast stock levels through an understanding of the effectiveness of your past forecasting.
• How close was this period’s inventory forecast to actual results?
• How accurate have forecasts been for “A” class materials in a spec warehouse?
• How do materials compare within an ABC analysis? Where are my “A” class materials being handled and how often are they turning?
• How much of my inventory is available for distribution, how much is in consignment, and how much is restricted stock?
• What is the velocity of our inventory—are certain materials fast-moving, slow-moving, or dead?
• What percentage of restricted stock was drawn from inventory over the last year?
Sample KPIs
• Average stock level and value • Overstock quantity
• Minimum and maximum stock levels • Days of inventory
• Inventory turns • Required quantity
• Stock level coverage • Moving average
• Inventory stock outs levels/usage
• Zero stock days

STRENGTHEN ENTERPRISE MANAGEMENT
Using IUBA-INDIA Inventory Analysis, you can analyze operational effectiveness to ensure that the inventory function is contributing to overall corporate performance and stakeholder value. Evaluate current processes and identify trends and our Performance Applications quickly turn your corporate data into an information asset to answer your key business questions. By packaging best-practices business requirements, Our Performance Applications create a rich, business analysis environment for all levels in your organization.

INVENTORY SCENARIO: STOCK REDUCTION
Suppose that part of your corporate strategic plan is to reduce costs without impacting customer satisfaction. In the inventory function, cost reduction could result from reducing stock days of high-impact or high-cost items without increasing stock outs. Our Inventory Analysis helps you determine how to do this. To find out which group of inventory items has the greatest impact on costs, you view all of your ‘A’ class inventory items and rank them by average stock value for the last year. Choosing a group of the highest stock value materials, you rank them by average overstock quantity amount for the last 12 months. Of these overstocked, high-impact materials, the ones with the largest average overstock value and the lowest inventory turns are potential candidates for optimization. But first it’s important to determine why these materials are overstocked—either you are incorrectly forecasting usage or actual usage is dropping. Increasing coverage days and falling usage rates indicate that, in fact, usage quantity is falling. our Performance Applications have shown that reducing the coverage days for overstocked, high-value products whose usage quantity is falling will significantly lower costs without increasing stock outs or impacting customer satisfaction.

FULL SOLUTION—ONE VENDOR
To build Inventory Analysis, IUBA-INDIA drawn on years of expertise as the market-leading provider of fully integrated business intelligence solutions. IUBA-INDIA is the only vendor in the market to offer an end-to-end solution that gives everyone from executives to production managers fast, insightful, appropriate answers to critical business questions. The global coverage and world-class professional services, support, and training offered through IUBA-INDIA give you a single point of contact focused on your success. When you combine these advantages with the rich business content of our Performance Applications, you get a powerful business solution designed to give you that competitive edge.



Achieving Effective Inventory Management :-

Based on our most recent research and the most up-to-date "best practices," the new approach of Achieving Effective Inventory Management provides a complete guide for managing a large and often troublesome asset. This will help you achieve the goal of effective inventory management: "to meet or exceed customers' expectations of product availability with the amount of each item that will maximize your organization's net profits or minimize its costs."
· Maintaining accurate on-hand quantities.
· Stores / Warehouse and stockroom organization.
· Benefits of various material storage methods.
· What to do when you run out of warehouse space.
· The benefits of bar coding and other technologies.
· Developing your approved stock list for each warehouse.
· Differences between stock for sale and MRO (maintenance, repairs, and operations) inventory.
· Defining "good," "bad," and "ugly" inventory.
· Simple methods to calculate your projected inventory investment and potential inventory turnover.
· Why you need to rank your stocked products three ways: based on number of transactions, cost of goods sold, and profitability.
· Metrics to determine the performance of your investment in stock inventory.
· Accurately capturing historic usage of stocked items.
· Properly stocking items with sporadic usage.
· Determining the proper time period for forecasting demand.
· How to properly capture demand in a distribution center environment.
· Adjusting usage for unusual activity that will not reoccur.
· How trends, promotions, the environment, and other factors can affect a forecast.
· How to obtain, analyze, and apply collaborative information from customers, salespeople, and other sources.
· Determining how much of a new item to stock and developing a new item questionnaire.
· Dealing with "fashion" items that will only be marketed for a limited time.
· Finding the best forecast formula for different patterns of usage.
· How to easily identify items with seasonal usage patterns.
· Maintaining accurate projected lead times.
· Identifying the individual elements of a projected lead time.
· Why long lead times are better than inconsistent lead times.
· Determining the right amount of safety stock to maintain for each item.
· Determining the best size replenishment order.
· Utilizing residual inventory analysis and early warning reports to fine-tune replenishment parameters.
· When economic order quantities are appropriate and developing the best economic order quantity model.
· When to push inventory turnover with "order up to replenishment."
· How to effectively increase or decrease the size of a replenishment order to meet vendor or transportation requirements.
· Where Just-in-Time replenishment is best utilized.
· Evaluating price break opportunities.
· Liquidating excess inventory.
· Developing and maintaining an effective replenishment program.
· Distribution Requirements Planning (projecting needs over an extended period of time).
· A comprehensive guide to physical inventory and cycle counting.
· How to develop a "policies and procedures" manual for your inventory-related operations.
· Implementing and maintaining a program to achieve the goal of effective inventory management.

Please visit our other Web/Blogs address to get full information.
Given the opportunity, I would be pleased to meet with you and discuss, how I might be able to promote the growth of the company.
I am looking forward to receiving a possible reply form your side.
Thanking you,
Sincerely,
Arthi Gopal Krishnan Iyer.
Functional Consultant.(IUBA-INDIA)
+91-9313487754, 9871386379, Tele-Fax-0120-4133279.
E_mail:- iubagzb@airtelbroadband.in, iubagzb@gmail.com,
My Skype-ID. - " iubagzb1 "

Note:- [ Skype is free on-line Phone or Conference room for call / speak / Chat- anyware(all world) ]

Saturday, November 12, 2011

IUBA-INDIA CASE STUDIES


I've worked behind the scenes to apply my technique and expertise to help some of companies in key industry verticals streamline their supply chain operations, improve customer service, and increase profitability. Here are some recent examples of how I've helped some of company clients & customers to meet their unique challenges.

ð  Case 1: Pioneer in heading multiple projects with outlay ranging from 12 million to 60 million and contributed to cost savings of 15-20% in project logistics with efficient management of transportation and warehousing activities. Achieved cost saving in excess some of 7 million, in 2003-04. 

ð  Case 2: Meticulously doubled company's business volumes in the FY 1999-2000 and awarded certificate of merit for this exceptional performance at National Panasonic (I) Pvt. Ltd, with my Direct-To-Delivery (DSD) Solution 100% increased Company’s Business and reduced their Logistics mile travelled by 25% and their overall distribution cost reduced by 20%.

ð  Case3: Executed multiple BTS/SDH Optical Equipment’s Projects & Team Leader for National level IT / Telecom Projects and Ensured that the projects service is being delivered as agreed, required level of performance and quality.

ð  Case 4: Carried out various logistics review projects for a world-leading Heavy Electrical Projects business in various provinces of India, relating to facility design, handling equipment selection, Project installation logistic support with route planning of finished goods distribution to key account and general trade contracts /customers.

ð  Case 5:  Vast exposure in Push & Pull Production Systems, Lean Manufacturing ITIL(PDCA), Oracle-11, SAP-SCM/CRM-all modules, [SMD/CNC] BaaN (BOM), & Supply Chain Excellence MRP-“SCOR” 8.0 Model with full life cycle Implementations.

ð  Case6: Carried out a transport operations review of the largest Consumer Electronics & Telecommunication business in India, identifying large-scale savings through improved resource manpower and vehicle utilization. This involved design and piloting of an innovative delivery method that enabled most of the transport fleet to carry out three delivery trips per day instead of two. We also helped the client to design an outsourced approach – including a model contract – for localized outsourcing to low cost delivery agents in areas of thinner demand.

ð  Case 7:  Merit of having Global Clients/Customers/Suppliers/Service Providers-Key Accounts persons in Marine Port and Airport (IT Services/Suppliers), and Electrical and Electronics Telecommunications clients like VSNL /BSNL (HFCL) / TTSL(TATA) / Reliance / Power Grid Corp., BHEL, BEL, Logistics Providers-DHL, DRS, GATI, SPEEDEX, UPS, etc.,

ð  Case 8:  Conducted a supply chain efficiency improvement study for a Revers Logistics Outsourcing company and evaluated options for improved storage and handling at their Distribution Centre.

ð  Case 9:  Provided logistics technical support to a team evaluating a major investment in containerised cargo hubs in Singapore and India’s Hub / Port operators of Land Transport (Roadways, Railways) and Air & Sea (Marine) Port. The project entailed market research in Asia Pacific region for potential users of the hub, covering Air/Marine Port and inland cities, as well as a survey of opinion within the regional shipping sector, covering container lines, port operators, major users of shipping services and a variety of institutions.

ð  Case 10:  Recommend Business solutions to MPS-Singapore, and briefed to identify requirements for new larger Warehouse for a duty free port business in Singapore.

ð  Case 11: Developed an investment and relocation strategy for the sea container repair and heavy marine diesel engine reconditioning divisions of one of the world’s largest container shipping lines, including project management of the development of new facilities, the need for which was highlighted by our earlier work.

ð  Case 12: Conducted a review of container haulage operations within Singapore for the same client company, securing a once-off reduction in assets employed together with substantial operating cost savings.

ð  Case 13: Reviewed the proposed supply chain model for a new venture for trading items from Singapore, Malaysia & Indonesia, India and other East Asia pacific regions. The project included advice on selection of service providers for freight forwarding and shipping, cost projection, contract specifications and on how to set up an inventory-based trading hub in Singapore using PSA and Jurong Port Container yard facilities. The project also examined the option for establishing in-market inventory hubs in East Asia pacific regions.

ð  Case 14: Led a logistics review of a clients’ global retail operations covering the health & beauty businesses in India & Asia Pacific Regions, as well as supermarket and Perfume businesses in various locations. The review addressed options for applying synergies across the different components of the business, including shared-services logistics, shared global procurement support services and the use of information technology.

ð  Case 15: carried out an inventory reduction project for a multinational Cosmetics and chemicals (Fragrance) distributor with regional operations based in Singapore and India. carried out various logistics review projects for a world-leading Heavy Electrical Projects business in various provinces of India, relating to facility design, handling equipment selection, Project installation logistic support with route planning of finished goods distribution to key account and general trade contracts /customers.

ð  Case 16: Npi-Transportation Management solutions, in NPI-India has significantly reduced logics cost for its all India Consumer goods business- and Increased on-time delivery to all Customers by 10%.

ð  Case 17: We helped One Leading Commercial Electronics Manufacturer reduced transportation spend and increase efficiency & customer satistaction.

ð  Case 18: Carried out a transport operations review of the largest Consumer Electronics & Telecommunication business in India, identifying large-scale savings through improved resource manpower and vehicle utilization. This involved design and piloting of an innovative delivery method that enabled most of the transport fleet to carry out three delivery trips per day instead of two. We also helped the client to design an outsourced approach – including a model contract – for localized outsourcing to low cost Delivery agents in areas of thinner demand.

ð  Case 19:  Recommend Business solutions to MPS-Singapore, and briefed to identify requirements for a new larger Warehouse for a duty free port business in Singapore.

ð  Case 20:  Carried out an operations review and warehouse re-design project for a consumer products retailer in India. This included revision to the functionality of the warehouse management system (WMS) to support improved operational performance.

ð  Case 21: Provided logistics technical support to a team evaluating a major investment in a containerised cargo hubs in India & Singapore., for a Roadways, Railways and Air & Sea(Marine) Port Operators. The project entailed market research in Asia Pacific region for potential users of the hub, covering Air/Marine Port and inland cities, as well as a survey of opinion within the regional shipping sector, covering container lines, port operators, major users of shipping services and a variety of institutions.

ð  Case 22:  Detailed analysis identified that improvements to inventory turn and modest expenditure on new equipment would Enable the operation to remain at its existing warehouse, thus avoiding a higher rental and substantial relocation Expense.

ð  Case 23: Director of a major project for a leading brands consumer products business operating in India. The project focused on radical re-structuring of the India’s supply chain to match the requirements of retailers who are themselves evolving to All India supply chain models, using ECR (efficient consumer response) concepts. The project entailed planning the renewal and simplification of all physical elements of the supply chain, including inventory holding facilities and transport equipment, plus renewal of sales order processing and warehouse / transport management systems.

ð  Case 24: Conducted a supply chain efficiency improvement study for a Revers Logistics Outsourcing company and evaluated options for improved storage and handling at their Distribution Centre.

ð  Case 25: Specified and installed a pilot centralised order processing and handling facility for a Consumer Electronics & Home appliance products retailer, together with computerised support linked to the retail outlets. This allowed three separate trading companies to be served by one logistics resource. Service lead times were reduced by several days. Three separate management structures were integrated, and implementation of fundamentally new handling equipment and procedures was achieved, including direct training of warehouse staff. The resulting distribution system provided a greatly improved service at a much lower unit cost.

ð  Case 26: On executive secondment to a leading Telecommunication Equipment manufacturer. The assignment covered installing customer service level monitoring systems at all contractors' depots, with poor service identified and corrective action taken. Operations were restructured and improved warehouse facilities were constructed and equipped. New administration systems ( Order processing and stock location control) were designed and implemented.

Ä Case 28: In-IGPS-> Transportation, Inventory Management and reverse logistics lolutions enable this rapidly growing, innovative pallet manufacturer to deploy 175million pallets across Asia Pacific Regions.

Ä Case 27: Managed complete control and Analyse new and alternate products, processes and continuously upgrade contract and billing processes, Analyse other Materials Inventory of entire organization with Annual Price Contract, Idle time & Lead time Analysis, Obsolete & Aging Analysis, Invoicing & Dispatching, Documentation, Import & Export/Excise/Taxation/Commercial & Legal Affairs and Transportation & Price Negations, and Payment of Transporters & Negotiation of Payment terms & Conditions, Insurance & Claim settlement, Codifications, Improved Information Flows, Material Flow, Process Flows and Quality management Etc., to ensure Work Contracts are awarded at most competitive rates without sacrificing quality and project schedule.

ð  Case 28: A company manufacturing electrical appliances and control instruments is using 40 varieties of different screws, and bolts and nuts. You may be interested to know that the money tied up in inventory carrying amounted to Rs. 10,000toRs.12, 000. The management is very much bothered with the mounting inventory costs, air an analysis revealed that a large number of varieties of the fitting materials are being candied. Now it is a question of rationalisation. The number of varieties were reduced to 22, where by the inventory carrying costs were cut down by:35% .

ð  Case 29: Another company manufacturing electrical consumers' items, like electric iron and table fans, in the programme of cost reduction consulted ,deign engineers and found that the present , design is so cODuplicated that a good number .of castings were to be rejected, and the rejection was .to an extent of 40%. An analysis of the cost indicated that the materials cost was as high as 62 % of the total cost, and that heavy rejection of castings contributed to 28 %. The design engineers simplified the design, and 'the company reduced the material cost to 54%, and, the rejection to 26%.

ð  Case 30: A third company manufacturing machine screws has found that their conversion costs were mounting up, and were about 45% of the total cost. On further analysis it was found that the number of rejections left unnoticed during the operations and finally, were rejected in the final inspection. Consequently, the management tightened up the inspection at three turning operations at different, stages. The cost of inspection was raised by 15 %, and the rejection fell down to 20%, the conversion cost to 35%, and the total cost by 20%.

ð  Case 31: There is another case where the management was apprised of the cost of idle time. The breakdown of idle time cost indicated a large amount of idle time in man hours and machine hours:

Man hours lost during the quarter is 5,400 i.e. 45% Available man hours for the quarter is 12,000. Machine hours lost during the quarter is 2,100 i.e. 35%. Machine hours available during the quarter are 6,000.

The cost of man hours lost for the quarter is Rs. 3,240.

The cost of machine hours lost for the quarter is Rs. 4,200.

The management is gripped of this huge idle time cost.



ð  It was further found that while there was overtime work in the assembly department,   here was plenty of idle time in the machine department. This is a clear case for proper planning and coordination. The machine down time was reduced by 10 %, and men idle time by 25%. The management in consultation with the design’ engineer and sales manager thought of a new product for a local automobile industry, and used the idle machine hours to the extent of 15 %, and men idle hours to 20 %. This has resulted in an overall cost reduction of 20%.

ð  Case 32:  There is yet another situation where cost reduction is the only way out to keep a company above water. The company distributing a number of consumer products found that its distribution costs were as high as 25% of the total cost. Selling expenses and sales force remunerations had gone up far above the mark, while the sales turnover had shown a downward trend. Analysis _showed that the salesmen were not satisfied with the present compensation scheme and that there was no incentive for aggressive selling. While there was a sample sale potential and the company's image was well built in the market, the sales force must certainly be bringing a good result, and the mounting selling costs could be reduced. A suitable remuneration scheme was evolved, and the operating results stood as follows:

Increase in overall sales cost is 10% Increase in overall sales turnover is 60%.

Decrease in selling cost for Rupee of sales turnover is 8%. Now the distribution cost is only 17% of sales.

Case 33: 'In a tile factory manufacturing roofing floor tile, the material handling cost stood at 20% of the total cost. An analysis of the labour cost revealed that the percentage of indirect cost brought home to the management where to place their hands for cost reduction, and the management was convinced that a contributory factor for the fall in the rate of return was the cost of material-handling besides fall in the selling price. In order to maintain the same rate of return, the company evolved a method to reduce the cost. The material-handling problem was first tackled, and the management had to spend a few hundred Rupees to reduce the handling cost to the barest minimum. Conveyors were erected to carry the clay, green and burnt tiles. The handling costs were reduced to 50% of productive labour. Investment in conveyors was paid off in a one-year period;

The total cost was also reduced by 15 %, and, in fact, the rate of return had increased by 20%.

In another situation in the tile factory, there was an operation called "oiling and beating" and which precedes the pressing of the slabs in a revolving press. The number of operators involved in this operation was:

1.       Slab beaters 4

2.       Oilers 1

3.       Slab feeder 1

The main purpose of beating the slabs is to see that both sides of the slabs are smooth, so that the finish and appearance of the tile is good. Oiling is done to prevent the slab from sticking to the dies after pressing. A new method was suggested.

The slabs after splitting from blocks will be passed through two rollers running in the opposite directions. Provision was made to drip oil on the top roller, and keep the bottom roller dipped in oil to ensure oiling of the slabs while passing through between the two rollers.

The proposed arrangement cost the management about Rs. 2,500, and resulted in an ultimate cost reduction of 15 % in the total cost.



Some of Examples: Plant No.1 was manufacturing aluminum coffee kettles in three sizes. It had presses and machines to manufacture 3 different sizes of lids, 3 different sizes of sprouts, 3 different sizes of handles, and 3 different sizes of the body of the kettle. With a view to simplifying work and reducing cost, the factory at a later date standardized the sizes of the sprouts, lids and handles in the 3 sizes, varying only the body of the kettle. Thin resulted in savings on operators, machines, recesses, materials and a considerable amount in the cost of the product.

In Plant No.2, manufacturing wooden bobbins, the conveyor and chute systems were introducing savings on labour, movements, and material handling.

In Plant No.3, to cite a more specific instance, where cost reduction was brought about in simplifying product design, the cherry blossom shoe polish tins may be seen. The clip opener device was given up in preference to the coin opening method, and recently this coin-opening method has also been given up in preference to a built-in press-opening method. Naturally, these improvements have saved on machines, materials, and men resulting in savings in cost.
CASE EXAMPLES

It is doubtful whether there is any area of business which does not provide some opportunity for cost reduction. In evaluating various proposals for cost reduction, it might be well to establish some general guidelines and policies. Getting the most for the money being spent can often be more rewarding than merely spending less money. The following examples are offered in support of this hypothesis;

1.A company having an annual budget of Rs. 1,00,000 for R. & D. expenditure may spend the entire amount either on scientists or laboratory assistants. For example, this could represent salaries for five scientists at Rs. 20,000 per annum or for 20 laboratory assistants at Rs. 5,000 per annum. Either of this is, no doubt, unlikely. Yet the proper balance of scientists, technicians, etc., is very important both functionally and economically. Obviously, it would be costly to permit a situation where a scientist with a doctor's degree would perform routine work which could just as completely be performed by a laboratory assistant. Proper evaluation of research and development operation should be concerned not only with the total amount spent, but how it is being spent, how the spending is related to the degree of technical sophistication, and what results are being obtained.



2.Usually some companies purchase expensive and complex machine tools and equipments. They get them installed by their own engineers, and get them running smoothly. Most of the large equipment manufacturers furnish engineering services at little or no additional cost, and it is possible that the purchasing companies would not have to divert their own engineers for this purpose. Cost savings can sometimes be obtained by using the services of the suppliers or the vendors to the full.



3.A few companies follow a policy of quantity-buying of many commodities to obtain quantity discounts. Judicious quantity-buying certainly contributes to cost reduction. Indiscriminate quantity buying can increase costs if it results in inordinately high carrying cost of inventories, obsolescence risks, excess· warehousing costs and large amount of capital tied up to affect adversely the liquid position of the company.

4. In any business, costs are incurred to accomplish many things. Unless there is a profit, however, other objectives, no matter how lofty, become pretty much academic.



5. Most products have different characteristics. These have a direct effect on costs, making some products more costly than others. Large products take up more storing space, and some require special handling. Different products call for different types of advertising and promotional campaigns. At times costs are knowingly raised, instead of being reduced. For instance, if ac business decides to open a new sales territory its profit and loss statement for the new territory will normally show losses during the early periods. The decision-makers explain such excess costs in a current period as an investment in future sales and Accompanying profits. 6. In commencing a cost reduction programme, it might be strategic to prepare an initial list of cost

improvement areas, at least until some momentum has been attained. The following suggestions are quite

general, and are intended to spark specific ideas and programmes:

i. Audit payments of suppliers to assure that they are paid in time to obtain cash discounts when entitled.

ii. Explain value engineering techniques. "Value Engineering" might be defined as precise cost accounting plus

applied industrial engineering. It is a scientific method of obtaining equal or better performance and value for a

specific product, or product components at a lower cost. This is done by step by step scrutiny, and testing of every

part and every operation in the manufacture of a product.

iii. Check labour situation for possible expensive overtime, and' absenteeism and proper balance of workloads.

Consider employee training programmes.

iv. Study plant layout for possible improvement in work flow. Evaluate the performance and condition of present

quipment for replacement, if necessary with newer and more efficient machines, and" improve quality control

rocedures and reduced spoilage wherever possible.