Gaining Sustainable Competitiveness and Achieving Operational Excellence
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Gaining Sustainable Competitiveness and Achieving Operational Excellence. Regu Ayyaswamy Vice President, Global Head- Engineering and Industrial Services TATA Consultancy Services [email protected] Confidential. Business dynamics are here to stay. Uncertain macro environment

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Gaining sustainable competitiveness and achieving operational excellence

Gaining Sustainable Competitiveness and Achieving Operational Excellence

Regu Ayyaswamy

Vice President, Global Head- Engineering and Industrial Services

TATA Consultancy Services

[email protected]

Confidential


Business dynamics are here to stay

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

Source Bloomberg

PMI Index

Source WSJ

Source ISM

Increasing expectations, complexities and fluctuating demands


Achieving sustainable competitiveness

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


Achieving sustainable competitiveness1

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.


Achieving sustainable competitiveness2

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


Achieving sustainable competitiveness3

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


Achieving sustainable competitiveness4

Achieving Sustainable Competitiveness

Sustainable Competitiveness

Macro Economic trends

Breakthrough products by competition or substitutes

Changing market needs

Operations Efficiency and Agility

Threats

Engineering Excellence

Operational Excellence

Solution

Continuous process of foreseeing the future and preparing for the same


Engineering excellence

Engineering Excellence


Engineering excellence coin

Engineering Excellence - COIN


Getting it right product price time

Getting it right – Product, Price, Time

  • Brand visibility and brand positioning

  • Communicating the right messages to customers

Need for continuous listening to unstated needs of customers

Customer

Ability to deliver the products to customers quickly at optimum cost

  • Ability to quickly respond to changing requirements

  • Innovation

  • Need to match fluctuating demands

  • Agile and flexible manufacturing

Need for seamless information flow across the organization


Integrated landscape drives the value

Integrated Landscape Drives the Value

PLM

Release to manufacturing

ERP

Plant Specific MBOM

Business Rules & Constraints

Listening platforms

Transaction Processing

Collaborative Supply Chain

APS

Product Design

Product Engineering

Digital manufacturing

Order Status

WIP Status

Quality Data

Line Configs

Cycle Time

Tracking Info

Actual Cycle Time

Genealogy

MBOM

Plant engineering

Business Intelligence

Asset Master

Data

MES

Enterprise Asset Mgmt

Operation Execution Mgmt

QMS

Quality System

Ability to quickly adopt to changing scenarios

Islands of automation doesn’t help


Integrated landscape drives the value1

Integrated Landscape Drives the Value

Production, Quality, Inventory, Maintenance

5

Predict

ERP

EAM,

MES

Quality

4

Propogate

Drill Down

6

  • Visualize

  • Globally

  • Local Performance

  • Local Performance

3

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

Analyze

2

Contextualize

Production information is distilled into KPIs

And Down

1

Aggregate

Large volumes of production data aggregated from multiple data sources

Source -Gartner

Achieve manufacturing intelligence


End result excellence

End result – Excellence

Supplier

Agile, demand-driven supply chain

Corporate

Quick response to customer demands.

SMART

Plant

optimize production and minimize costs. Flexible manufacturing

Master DC

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

Energy

Smart factory systems that optimize electricity use.

Distribution

Centre

Waste

Smart Factory will reduce Waste (Air/ Water)

Customer

Continuously listen to customer’s changing needs and brand perceptions


Gaining sustainable competitiveness and achieving operational excellence

US Based Automotive Tier 1

Major Business Drivers:

Flexible, Scalable and Configurable to address uniqueness of every plant

Standardization of performance measurement parameters across globe using standard mechanism

  • 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 integrated landscape

US Based Automotive Tier 1- Integrated Landscape

Business Layer

Product information

ERP

PLM

WO info

Maximo

Product and shop Order Information

APS

Maintenance Request

Work Order

andBuildInformation

Work Instruction

Server

User Guide

Work Order Schedule

and Sequence

MES Layer

Database Server

Label printer /barcode

AssemblyInformation

Application Server

Control Layer

16

MES - PLC Handshake Tags

PLC

Field Device

Panelview

OPC

Test Server-1

Test Server-2


India based automotive tier 1

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

  • 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


India based automotive tier 1 integrated landscape

India based Automotive Tier-1 – Integrated landscape


Summary

Summary

  • Uncertain environment are here to stay;

  • Developing Agility of response is key.

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

  • Invest on continuous capability development and improvement in Process reliability


Thank you

Thank You


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