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IFMR GSB Working Paper WP23-004
AN INDUSTRY NOTE ON UNLOCKING THE POTENTIAL OF INDUSTRIAL ENGINEERING IN COST OPTIMIZATION
December 2023
Industrial engineering involves the application of engineering principles and techniques of scientific management to ensure high levels of productivity at optimum cost in industrial enterprises. Industrial engineers (IEs) work on Productivity improvement and this should lead to decreased costs at the unit level for activities and in turn for the products that consume these activities. The ultimate proof of productivity improvement is reduced costs reflected in the reported unit cost of products.
IEs must be able to identify and target areas that would yield the greatest in terms of cost savings. They should be able to visualise the consequences of their current action clearly and also check whether it has yielded the desired results in terms of cost savings
This paper outlines the areas for IEs to focus on achieving real and permanent reduction of cost.
KEYWORDS: Cost Optimization, Cost reduction, changeover time, non-value-added activities, standardisation
IFMR GSB Working Paper WP21-013
A Technical Note on Activity Based Costing for Pharmaticeutical Manufacturing
March 2021
Pharmaceutical manufacturing is divided into two major stages: the production of the active ingredient or drug (primary processing) and secondary processing, the conversion of the active drugs into products suitable for administration. This article deals with designing an ABC model for formulations manufacturing (the synthesis of the active ingredients and their usage in drug formulations to deliver the prescribed dosage.) The article outlines the steps involved in designing an Activity based costing model in a tablet manufacturing scenario, its relevance and the keys to sustaining the same
Key Words: Activity based costing, cost model, resource drivers, activity drivers, Value added and non value added activities, formulations, unit operations
IFMR GSB Working Paper WP20-011
Impact and Effectiveness of MSME Entrepreneurs Training Program – A Case Study of Journey in Joy
June 2020
Studies show that bringing in simple practices related to target setting, establishing incentives and monitoring performance can bring about substantial improvements in productivity, sales growth and reduction in product defects of MSMEs. Training entrepreneurs obviously appears to be the most timetested and feasible intervention to bring about such a change. But are these training initiatives possible? What impact would it have on the entrepreneurs? What challenges would private entities face in conducting such training programs? To answer these questions, a training initiative in Tamil Nadu by Poornatha was examined. The program titled ‘Journey in Joy’ (JnJ) offered business skills training for 27 entrepreneurs in the Southern districts of Tamil Nadu. For this study, data was collected from a survey of all the participants, in-depth interviews conducted with the founder, trainers and 10 participants of the program. Also, data was collected from secondary sources including program content booklets, worksheets and exercises, written and video feedback of participants and business plans that the entrepreneurs had developed as a part of the program. Results from this study point out to a significant shift across entrepreneur mindsets, capabilities and enterprise performance. In short, the program has successfully demonstrated that a customized, impactful and low-cost training program for entrepreneurs is feasible.
Key Words: Entrepreneurship, training effectiveness, MSMEs, entrepreneur mindset
IFMR GSB Working Paper WP20-009
Super Auto forge: Technology and leadership led growth
November 2019
The case on Super Auto Forge Ltd (SAF) is focused on the integration of operations perspective and market requirements of the company and relate its growth. Starting from nowhere with an ambition to be an entrepreneur in the space of production-driven business and ability to learn and develop the over time, the company grew to be a leading player supplying to Tier I auto component vendor and to OEMs. The case describes how, in a matter of two decades, the company transformed itself by developing cold forging technology, using an indigenously developed process. Pursuing homegrown technology requires zeal, adoption of excellence in manufacturing and cost advantage for Tier II and Tier I parts assembly units, which were the driving force of SAF and its promoter. During this phase, the company focused on the development of processes and managing implementation, which are the key drivers of its growth not only in India but across the globe specially to developed markets. Leadership of the company believed that locational advantage in facility decision can be exploited for the international growth of the firm, provided the leadership is clear about operations strategy formulation and implementation. It took some key strategic initiatives for SAF growth. This included implementation of quality management processes, continuous improvement through learning and operations and people related HR practices
Key Words: Operations strategy, Indigenous development, Technology Process, Quality Management, Leadership