Sunday, March 12, 2017

Beginning of Productivity Movement in India



Charles Bedaux established  Eastern Bedaux office in India in 1937.  The company concentrated on time and motion studies to determine optimum labour strength and introduced incentive systems to maximize productivity. The company had significant success, particularly in textile mills. Thus involvement of management consultants started in Indian industry to improve worker productivity.

Bedaux was executed for collaboration with the Nazis in 1943. The Indian organization was headed by John Moore, an industrial engineer. He formed, a  company under the name IBCON (Industrial and Business Consultants) and continued operations in India. After the Second World War, Fern Bedaux, the wife of Charles Bedaux, came to India and filed a suit against IBCON, since IBCON was still using the knowledge base of generated by Bedaux. The matter was settled out of court, and she restarted the firm Eastern Bedaux. However, it was closed down quickly.


IBCON played a significant role. During the Second World War, it carried out significant assignments to help the government's war efforts, e.g., at Rifle Factory at Ishapur, Military Accounts in Pune, and movement of railway wagons to move war supplies by Central Railways. After the Second World War, IBCON grew and provided services to various industries. Apart from textiles, its operations extended to engineering, cement, and administration. It had consultancy assignments of long duration with Bombay Municipal Corporation, Times of India, Income Tax Department, etc.  IBCON undertook extensive assignments in Tata Iron and Steel Company (TISCO), Tata Engineering and Locomotive Company (TELCO), various Tata textile mills, ACC, etc. In most of these companies, IBCON established "standards departments," and made them responsible to mplement IBCON reports. These departments later became "industrial engineering departments" and formed the basis for developing the industrial engineering profession in India.

Chapter 1 of the book
Management Consulting in India: Practice and Experiences for Business Excellence
edited by U. K. Srivastava, Pramila Srivastava,
https://books.google.co.in/books?id=w12JCwAAQBAJ&printsec=frontcover#v=onepage&q&f=false


NITIE
NITIE was established in 1962 by the Government of India with the assistance of the United Nations Development Programme(UNDP) through the International Labour Organization. Steve Dembicki, who was a Chief advisor at ILO, and Vikram Sarabhai were instrumental in founding the institute. Its first on-site Director was Vinayak S. Vernekar who had previously worked at TISCO in Jamshedpur in the industrial engineering in the industrial engineering department.

 In India’s new economic
strategy, productivity growth was seen as the key to successful
industrialisation, and this was also a priority for the ILO’s
new Director-General, David Morse. The ILO helped to set up the
National Productivity Centre and supported the National Productivity
Council.

David Morse (United States) spent twenty-two years as Director-General of the ILO from 1948-1970
http://www.ilo.org/global/about-the-ilo/how-the-ilo-works/ilo-director-general/former-directors-general/WCMS_192712/lang--en/index.htm


The Declaration of Philadelphia (DOP), in which the Allied powers under the leadership of the United States and Great Britain set out the parameters of a peacetime global order, proclaimed the ILO’s intention to dedicate itself to finding measures “to promote the economic and social advancement of the less developed regions of the world.”

Certain Latin American and Asian countries, like the newly independent India, put increasing pressure on the ILO to respond in a concrete way to the stipulation contained in the DOP that poorer independent nations should also be helped in their efforts towards economic and social progress. In this way, the demands of the colonial territories for minimum standards turned into the demands of developing countries for practical assistance. According to the latter’s wishes, the ILO now needed to provide technical expertise and to advise the new nations in a variety of areas, from methods for increasing productivity to social security to occupational health and safety.  The new director-general of ILO appointed in 1948, American David Morse, took up the challenge.  The ILO under his twenty-two–year-long leadership became an international development agency; the term development
became the conceptual basis on which the ILO tried to shape the nation-building processes of its new members.

In his very first year in office, David Morse initiated, with the backing of the United Nations, the process that would lead to the setting up of the ILO’s technical assistance programs.

Within a short period of time, Morse’s successful drive to transform the ILO into an operational organization providing technical assistance in “underdeveloped areas” of the world changed the face of the ILO profoundly. In 1948 only 20 percent of the ILO’s budget had been earmarked for activities other than standard setting; just ten years later technical assistance accounted for around 80
percent. During the first years of the technical assistance activities, the ILO engaged mainly in fields such as vocational training and productivity issues; later on, it extended the scope of its programs gradually. Despite the new emphasis on technical functions, however, the ILO’s “classic” standard-setting work continued to play an important role alongside the new activities. Already in 1949,
Morse claimed that technical assistance had to be seen as complementary to the legislative work of the organization “for it is in fact the other half of the same coin.” He declared the realization of certain core principles and standards such as freedom of association or freedom from discrimination and forced labor not just a goal, but a method of economic progress, claiming that they helped to ease
the consequences of the modernization process and paved the way for lasting development.

The ILO accordingly claimed that its International Labor Code (which contained the entirety of international labor standards adopted by the ILO’s annual conferences) and its DOP presented
a set of solutions that the liberal democracies of Europe and North America had found to the political and economic crises of nineteenth- and twentieth-century capitalism, a powerful range of tools for the promotion of democratic modernization. It seems obvious that Morse’s thinking was rooted in
his  New Deal experience, when he and his collaborators in the NLRB had helped to implement labor legislation as a direct response to the devastating economic and political effects of the Great Depression

Source: daniel maul,“Help Them Move the ILO Way”: The International Labor Organization and the Modernization Discourse in the Era of Decolonization and the Cold War

http://re.indiaenvironmentportal.org.in/files/social%20justice.pdf



For ILO's role in productivity movement specially in developing countries and Europe see
https://books.google.co.in/books?id=ZYdyDQAAQBAJ&pg=PA79#v=onepage&q&f=false

Visit of Vikram Sarabhia team to Japan productivity center
http://www.pib.nic.in/archive/docs/DVD_17/ACC%20NO%20286-BR/EXT-1956-10-11_6007.pdf


Report - Sarabhai team to Japan
http://www.epw.in/system/files/pdf/1957_9/25/indian_productivity_team_in_japan.pdf

Vikram Sarabhai: A Life
Amrita Shah
Penguin UK, 15-Jun-2016 - Literary Collections - 264 pages
https://books.google.co.in/books?id=vIM_DAAAQBAJ

Productivity and Management of State Level Public Enterprises, Volume 1
Atmanand
https://books.google.co.in/books?id=Z4cprW0xCaYC&printsec=frontcover#v=onepage&q&f=false




2016
ILO is still working with India in the areas of productivity and competitiveness.
http://www.ilo.org/newdelhi/aboutus/WCMS_166809/lang--en/index.htm


Productivity and Social Organization: The Ahmedabad experiment: technical ...
edited by A. K. Rice
https://books.google.co.in/books?id=GR9UAQAAQBAJ&pg=PT35#v=onepage&q&f=false










Thursday, November 3, 2016

PRAGATIE VALUE SYSTEM FOR INDUSTRIAL ENGINEERING



P   -   Productivity

R  -   Redesign

A -   Analysis

G -   Growth

A  -   Appreciation

T  -   Training

I  -     Innovation

E  -   Education


Productivity


Productivity is based on science. Each scientific advance in industrial engineering contributes to productivity improvement. Productivity is prosperity. Every scientific advancement implemented by industrial engineers has to lead to prosperity for the organization and its stakeholders. Consumers, employees and shareholders have to benefit from the productivity improvement. Industrial engineers have to conduction their activities to become professionals who enhance the prosperity of the organization.


Redesign


Industrial engineers propose redesigns for minor and major magnitudes in products and processes. They do economic and social analysis of changes and then only recommended redesigns. The redesign should look attractive to the people who have to implement the redesigns. Marketing tools, business research tools are to be applied to find out the areas in which change is welcomed by the rank and file in the production systems.

Analysis


Redesign of products and processes is based on analysis of existing designs and implementations. Careful recording and study of the system as per special formats of recording and evaluation is essential to identify waste and eliminate waste.

Growth


Productivity is for prosperity and growth of individuals, organizations and economies. The focus is on growth and not unemployment.

Appreciation


Industrial engineers have to interact with lot of people in the company to seek ideas for redesign. Hence they need to appreciate them for inputs. Also, managers and engineers develop effective products, processes and production systems. Industrial engineers have to appreciate the contribution of system original designers. The entire organization has to appreciate the contribution of each person in the organization

Training


Providing inputs to persons in career that cater to special requirements of specific jobs.


Innovation


Creativity, Commercial Evaluation,  People Acceptance, Implementation and Debugging. Sticking with the redesign project till it is successfully implemented or abandoned due to market failure. Successful innovation requires significantly successful projects that provide ROI that compensates for failed projects.

Education


Systematic instruction, development of character and mental powers,

Educate: Give intellectual and moral training to   (Oxford dictionary)

Saturday, April 23, 2016

BHEL - - Productivity and Industrial Engineering Initiatives and Achievements







2014
Bhopal executive director Shashi Ranjan Prasad  urging staff to enhance the productivity level through LEAN method.
http://timesofindia.indiatimes.com/city/bhopal/National-productivity-week-ends-at-BHEL/articleshow/30833811.cms


2012
The Boiler Auxiliaries plant (BAP) of Bharat Heavy Electrical Limited (BHEL) at Ranipet has bagged the ‘Best Productive Unit’ trophy from among all the units of BHEL this year.

The plant’s capacity was increased to deliver 20,000 MW per annum. The plant has obtained 21 patents and 46 copyrights. Measures were taken to reduce material consumption, increase  manpower efficiency and reduce cycle time through e-procurement. A total of 500 productivity improvement projects were undertaken during the year and this helped in achieving the higher profit during the year with ease, according to Executive Director, T.N. Veeraraghavan.
http://ibnlive.in.com/news/bhel-ranipet-is-best-productive-unit/246253-60.html



2009

TIRUCHI:

Productivity was key to progress alongside technological advances and the five Ms (man, machine, materials, management and money), Executive Director of Bharat Heavy Electricals Limited A.V. Krishnan said on  12 Octber 2009.

The progress of Japan was due to productivity improvement that was pursued as a strategy. Despite the setbacks it faced in the world war, Japan could rise to become the second biggest economy of the work. Even, and India adopted productivity concept right from the late fifties and it helped us to reach the current levels of national development. These instances were cited by Mr. Krishnan to buttress his point during his Foundation day Golden Jubilee Address of the Tiruchirapalli Productivity Council. The council was established on October 12, 1959.
http://www.thehindu.com/todays-paper/tp-national/tp-tamilnadu/productivity-key-to-progress-bhel-executive-director/article160942.ece


2000
Bharat Heavy Electricals Ltd (BHEL) has bagged the Best Productivity Performance Award in the `Heavy Engineering Industries' category for 1997-98. The awards was from  the National Productivity Council (NPC). BHEL's heavy electrical equipment plant at Hardwar has won the best productivity performance award. Certificate of merit were given to central foundry forge plant at Haridwar and  the electroporcelains division, Bangalore.
http://www.thehindubusinessline.com/2000/08/23/stories/022346cj.htm








Value Addition Statement (` in Crore)
Description                                                                2014-15   2013-14   2012-13   2011-12    2010-11
A. Generation of Value Addition
Value of Production
(less excise duty)                                                          29755    37077      47219        47815       41527
Less - Direct Material, Power & Fuel and Payments to
Contractors                                                                   17772    22031       27759       28717       23051
Value Added                                                                 11983    15046       19460       19098       18476
Less - Other Operating Exp                                           3224       2982        3196         2479          3461
 (Net of income)
Net Value Addition                                                        8759      12064      16264       16619       15015
% to value of production                                             29.44%    32.54%    34.44%     34.76%   36.16%
B. Application of Value Addition
Employees payments                                                     5450         5934        5753       5466          5410
% to net value addition 62.22% 49.19% 35.37% 32.89% 36.03%
Depreciation 1077 983 953 800 544
% to net value addition 12.30% 8.15% 5.86% 4.81% 3.62%
Financing charges :
- Interest on borrowings 92 133 125 51 55
% to net value addition 1.05% 1.10% 0.77% 0.31% 0.36%
Tax Provision (Income Tax, Def. Tax & Prior Period) 721 1554 2818 3262 2994
% to net value addition 8.23% 12.88% 17.32% 19.63% 19.94%
Dividend (incl. dividend tax) 341 810 1544 1821 1775
% to net value addition 3.90% 6.71% 9.49% 10.95% 11.82%
Retained Profit                                                              1078          2651          5071      5219          4236
% to net value addition 12.30% 21.97% 31.18% 31.41% 28.22%

From BHEL 2014-2015 Annual Report.


Updated  23 Apr 2016,  13 Feb 2015

Sunday, January 24, 2016

PRODUCTIVITY WEEK THEME – 2016 : “EASE OF DOING BUSINESS FOR HIGHER PRODUCTIVITY AND SUSTAINABLE GROWTH.”




PRODUCTIVITY WEEK THEME – 2016 : “EASE OF DOING BUSINESS FOR HIGHER PRODUCTIVITY AND SUSTAINABLE GROWTH.”







Sustainable growth will require a vibrant SME sector, and this means improving the ease of doing business on the ground and not just the legislative framework.

To develop a vibrant SME sector, deliberate policies must be aimed at reducing red tape and also providing a friendly legislative framework and customer service approach to facilitate the business environment.



One of the very important things is a predictable environment for doing business. So even though many legislative improvements have been made, business people still have to consider that next year the finance minister could go to Parliament and impose a new tax, which is an additional cost to doing business. Or a bureaucrat could destroy their business by targeting them for audits or causing unnecessary costs from bureaucratic processes without any accountability.


http://www.jamaicaobserver.com/business/Requirements-for-sustainable-growth_19240749




A good business environment encourages investment – both foreign and domestic – creating employment and boosting economic growth. It also supports the development of the formal economy and middle class consumers tend to work in the formal economy.

It takes just 6 days to start a business in Mexico, compared to 29 days in India. The Mexican government is doing  reforms aimed at improving the business environment, encouraging investment and placing the economy on a sound footing for sustainable growth.

http://blog.euromonitor.com/2015/11/driving-middle-class-growth-in-emerging-markets.html

ANALYSING POLICIES TO IMPROVE AGRICULTURAL PRODUCTIVITY GROWTH,
SUSTAINABLY: REVISED FRAMEWORK
OECD 2015
http://www.oecd.org/tad/agricultural-policies/Analysing-policies-improve-agricultural-productivity-growth-sustainably-december-2014.pdf

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Ease of Doing Business in India




CENTRAL GOVERNMENT INITIATIVES

http://www.makeinindia.com/eodb/central-government-initiatives

MAKE IN INDIA - CENTRAL GOVERNMENT INITIATIVES

24 Jan 2016
President Pranab Mukherjee urged Tax authorities to help in increasing Ease of Doing Business in India
http://economictimes.indiatimes.com/news/economy/policy/president-pranab-mukherjee-calls-for-innovation-to-deal-with-rising-tax-cases/articleshow/50706068.cms


ARCHIVES

ACTIONS COMPLETED
Unified online portal (Shram Suvidha) for:
Registration of Labour Identification Number (LIN)
Submission of returns
Grievance redressal
Combined returns under 8 labour laws
Online portals for Employees State Insurance Corporation (ESIC) and Employees Provident Fund Organization (EPFO) for:
Real-time registration
Payments through 56 accredited banks
Online application process for environmental and forest clearances
14 government services delivered via eBiz, a single-window online portal
Investor Facilitation Cell established
Dedicated Japan+ Cell established
Consent to Establish/NOC no longer required for new electricity connections
Documents reduced from 7 to 3 for exports and imports
Option to obtain company name and DIN at the time of incorporation
Simplified forms for:
Industrial Licence
Industrial Entrepreneurs Memorandum
Many defence sector dual-use products no longer require licences
Validity of security clearance from Ministry of Home Affairs extended to 3 years
Extended validity for implementing industrial licences
No distinction between partial and full commencement of production for all products
Colour-coded maps for locations requiring NOC from the Airports Authority of India hosted online


MEASURES UNDERWAY
Eliminate requirement of minimum paid-up capital and common seal
Integrate processes for obtaining PAN, TAN, ESIC and EPFO registration with incorporation of company
Single-window clearance for import and export



STATE GOVERNMENT INITIATIVES


http://www.makeinindia.com/eodb/state-government-initiatives

MAKE IN INDIA - STATE GOVERNMENT INITIATIVES



ACTIONS COMPLETED
Online consent system for Pollution Control Board (Gujarat)
GIS-based land identification system (Gujarat)
Online consent system for environmental clearances (Chhattisgarh)
Extended validity of consent under environmental provisions (Chhattisgarh)
Unified process with single ID for VAT and Professional Tax registration (Maharashtra)
Number of procedures and time for getting an electricity connection reduced (Maharashtra)
Commercial benches established in Mumbai High Court (Maharashtra)
Creation of Invest Punjab, as a one-stop clearance system for investment projects (Punjab)
131 industries exempted from consent requirement by Pollution Control Board (Punjab)
Real-time allotment of TIN - Taxpayer Identification Number (Delhi)
Online application portal for residential and industrial building permits (Delhi)
Commercial benches established in High Court (Delhi)
Online portal for construction permits for institutional and commercial buildings (Delhi)
Static check posts replaced by mobile squads (Uttarakhand)
Green industries exempted from inspection by Pollution Control Committee (Puducherry)
Checklist for 86 government services and delivery timelines across 23 departments/organizations made available on Karnataka Udyog Mitra, an online portal (Karnataka)


MEASURES UNDERWAY
Online portal for the grant of construction permits (Mumbai)
Joint inspection by all departments to grant NOCs for construction permits (Mumbai and Delhi)
Simplified procedure to install electricity connection in 15 days (Delhi)


http://dipp.nic.in/English/Investor/easeDoingBusiness.aspx



Chapter 5 The ease of doing business of the following report  by PWC has interesting information on ease of doing business improvement in India.

https://www.pwc.in/assets/pdfs/future-of-india/future-of-india-the-winning-leap.pdf


Sustainable Manufacturing: Shaping Global Value Creation - Prof Günther Seliger, TU Berlin
2015

______________________

______________________


'Sustainability'....Does it have a future in manufacturing?
Presentation by Steve Hope, General Manager Environmental Affairs and Corporate Citizenship at Toyota Motor Europe, at the Fourth Annual Conference of the EPSRC Centre for Industrial Sustainability 6-7 July 2015, Cambridge.

_______________________


_______________________


_______________________

Going Green Can Be Good for the Bottom Line


_______________________


Updated 24 Jan 2016, 14 Jan 2016

Thursday, April 30, 2015

Prof Uday Amonkar Memorial Lecture - Make in India - Role of Industrial Engineering by Prof. Narayana Rao

3rd May 2015 at 10.00 am
Goa Engineering College
Ponda, Goa,


All are invited
_____________________________







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Wednesday, April 15, 2015

2nd International Conference on Industrial Engineering ICIE 2013, NIT Surat, 20-22, November, 2013 - Interesting Papers



Identification and Shifting of Bottlenecks in A Radiator Fabrication Line of Transformer Manufacturing Industry Using Theory of Constraints (TOC) Approach: A Case Study.

"AHP-QFD Integrated Approach for Process Selection: Make or Buy"

Saturday, March 28, 2015

Top Companies of India - Productivity and Industrial Engineering Initiatives and Achievements



20 Bharat Heavy Electricals Ltd.
3   Bharat Petroleum Corporation Ltd.
12 Bharti Airtel Ltd.


25 Chennai Petroleum Corporation Ltd.
9   Coal India Ltd.

10 Essar Oil Ltd.

19 GAIL (India) Ltd.

24 HDFC Bank Ltd.
11 Hindalco Industries Ltd.
4 Hindustan Petroleum Corporation Ltd.


14 ICICI Bank Ltd.
1 Indian Oil Corporation Ltd

13 Larsen & Toubro Ltd.

16 Mahindra & Mahindra Ltd.
17 Mangalore Refinery And Petrochemicals Ltd.
23 Maruti Suzuki India Ltd.

15. NTPC Ltd.

7 Oil And Natural Gas Corporation Ltd.

21 Punjab National Bank

22 Reliance Industries Ltd

5   State Bank of India
22 Steel Authority of India (SAIL) Ltd.

18 Tata Consultancy Services Ltd.
6   Tata Motors Ltd.
8   Tata Steel Ltd.