Post on 06-Mar-2018
Adoption of Advanced Technologies in Manufacturing: Implications for Human Capital Development
Presented byProfessor Shekhar Chaudhuri
Director and Chair Professor in Strategy, Calcutta Business School
Sanjib BiswasAssistant Professor, Operations Management, Calcutta Business School
At
The Annual Manufacturing Conclave
onTHE POWER OF INNOVATION IN MANUFACTURING - DRIVING INDIA’S GROWTH IN THE 21ST CENTURY
Williamson Magor Hall, The Bengal Chamber of Commerce and Industry (BCC&I)
February 17, 2017
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 2
Outline
• Introduction
• Case Studies on selected Indian Manufacturing Organizations
• Present Status of India vis-à-vis Manufacturing Competitiveness
• Highlights of GOI initiatives
• Case study on Visionary Leaders for Manufacturing Programme (VLFM)
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 3
Introduction
In recent years successive central governments in India have recognized that the manufacturing sector
in the country needs to be nurtured to improve its competitiveness. The National Manufacturing
Competitiveness Council was set up in 2004 as a think tank and a facilitating body to coordinate the
activities of concerned ministries and departments and various chambers of commerce and industries
with aim of improving India’s competitiveness in manufacturing. The present government at the centre
has also launched several new initiatives like Make-in India, Digital India, Start-up India, and Skill
India that have among others the objective of improving the competitiveness of India’s manufacturing
sector.
One study conducted by Deloitte in 2016 ranked India at 11th place in terms of its manufacturing
competitiveness index with China, USA, Germany, Japan, South Korea, UK, Taiwan, Mexico, Canada
and Singapore above her.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 4
Introduction (cont..)
A large proportion of India’s US$ 174 Bn in manufacturing exports require high skill and
technological intensity. However, employability of her young population is a major concern as
only 5% of the workers have formal skills training. In this context, the present government’s
initiative in this area, “Skill India” is very laudable and the “Make-in India” campaign launched
in September, 2014 is indeed praiseworthy. The ultimate objective of the government is to make
India a manufacturing hub for key sectors.
Worldwide, technological change has become ubiquitous. Therefore, firms have to be alert to
technological trends and incorporate these new technologies that are likely to enhance their
competitiveness. New entrants into an industry that have the required resources can adopt
emerging technologies to offer competitive products and services faster than incumbent firms.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 5
Introduction (cont..)
India, currently lags behind the US, China and Europe in the adoption of advanced technologies in
manufacturing. Therefore it has become imperative for Indian firms to adopt advanced technologies
to improve their competitiveness in manufacturing at a faster rate than global competitors.
The Sociotechnical Systems approach to Organizational development developed by Eric Trist and
his colleagues at the Tavistock Institute in London posited that there is a close interaction between
task, organizational structure, technology and people. Therefore, an organization Advanced
Manufacturing Technology (AMT) would have to consider their potential impact on the nature of
organizational tasks and people dimension.
One study of AMT adoption in the U.S. showed that, it led to “skill upgrading” and downsizing of
the workforce. Though this study focused on changes at the shop floor level, our contention is that
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 6
Introduction (cont..)
AMT adoption in the Indian context would have both strategic and organizational implications.
However, studies of this kind were not readily available. We therefore decided to make a
preliminary investigation regarding the adoption of advanced technologies by four leading
manufacturing firms in India and their human capital development initiatives.
In the following sections we present brief cases on the four firms based on information available
in their annual reports. Specifically we looked at their technology upgradation and human capital
development strategies. Based on our preliminary investigation we contend that to achieve
competitiveness in a global context firms would need to adopt advanced manufacturing
technologies and simultaneously invest in human capital development. Shifting our focus from
the firm to the general issues of competitiveness of Indian manufacturing industry we believe that
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 7
Introduction (cont..)
there is a need for developing visionary leaders who would be able to provide leadership to take
Indian firms to a higher level in order to compete in the global market place.
Finally we briefly present the experience of developing and implementing the unique Post
Graduate Programme for Executives for Visionary Leadership in Manufacturing being offered to
Indian industry by three premium Indian institutions, IIM Calcutta, IIT Kanpur and IIT Madras in
collaboration with CII and with the support of the National Manufacturing Competitiveness
Council, MHRD, GOI and the Government of Japan through its international cooperation arm,
JICA.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 8
Case Study 1 - Tata Steel
• Presently has operations in 26 countries and commercial presence in over 50 countries. • Tata Steel is one of the largest private sector integrated steel producers with a turnover of INR
38,000 crore in India.• 11th largest steel producer in the globe• Global production: 25.9 MnT (Fy 2015-16)• Global revenues: INR 1172 bn (Fy 2015-16)• Awards: Dun and Bradstreet Award 2016; Prime Minister's Shram Award; the Golden Peacock
Innovative Product/ Service Award; ‘The Best Companies to Work for Award’ by Business Today; 2016 World’s Most Ethical Company by the Ethisphere Institute, Scottsdale, Arizona, USA
About the Company
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 9
Strategic Intent Behind Technology Adoption & Innovation
Tata Steel has initiated technology upgradation activities in a variety of areas for a) Process technology improvementb) Capacity expansionc) Product improvementd) Better integration of manufacturing processese) Improvement in quality control and assurance systemsf) Mitigating negative impacts of technologies on the natural environmentg) Alternative material developmenth) Better utilization of inferior naturally available raw materials
Spend on R&D- (Capital+Revenue): INR 448 crore (Cumulative Fy 2012-16); In 2015-16, Tata Steel incurred INR 129.32 Crore in R&D (Total R&D expenditure as a % of Total Turnover is 0.34%)
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 10
Technology Adoption
Examples of the key technologies adopted:
• Underground and open cast mining, Coke Dry Quenching (CDQ), Bell less top charge high capacity furnaces, Online granulation of Blast Furnace Slag, Rolling Tandem Mill for pickling & rolling, Hot dip galvanizing etc.
• Large Blast furnace – 4330 cubic metre • Twin Wagon Tipplers for achieving faster turnaround time with unloading capacity of 20 MnTPA of raw
materials, • Big LD converter – 310 tonnes, CAS - OB for refining of steel, • Thin Slab Caster and Rolling - New technology, Energy Efficient, 100% by-product gas-based power
generation leading to reduction in carbon footprint (Achieved about 20%)
Source: Company Annual Report
Human Capital Development Initiatives
Internal Activities
External Activities
To improve the way of life, work culture, employee engagement, productivity, e ectiveness and ffefficiency
To engage and improve the relationship with the community, and develop the skills of the youth in neighborhood areas which in the long run would help in getting trained employee and improving the business environment
Training need identification through workforce capability and capacity assessment process
Training on Quality, Attitude, Technical & Managerial Skills, Leadership development (conducted the Tata Outbound Leadership Convention, Nav Chetna programmes) & Higher Education
Reverse Mentoring
III Tier Structure for industrial harmony (JDC, JWC, JCCM)
Internal Training & Collaborations with 20 technical
institutes
Knowledge, Skill, Motivation & Attitude
Self Help Groups (SHGs), village committees , Tata Steel Skill Development Society, Thousand
Schools Project, Learning Enrichment Programme (LEP)
- Improved relationship with the community- Trained Youth- Feel good factor
Spend on training over last 5 years ( INR in crore): 578 Source: Company Annual Report
JCCM: Joint Consultative Council of Management; JWC: Joint Works Council; JDC: Joint Department Council
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 12
Some Aspects of Overall Performance
Crude Steel Capacity (MnTPA)
% Sales increase over FY15: 9% (9.54 MnT) Source: Company Annual Report
Fy 13 Fy 14 Fy 15 Fy 1635
36
37
38
39
40
41
37
40
41
39
# New products developed
Fy13 Fy 14 Fy 15 Fy 16
79
82
89.4
85.3
% Employee involved in improvement activities
Fy 14 Fy 15 Fy 160
102030405060708090
100
69.691.1 93.9
% Skilled Manpower
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 13
Case Study 2 – Bharat Forge
• Bharat Forge is the world’s largest forging company with global manufacturing footprint spread across India, Germany, Sweden and France.
• Recognized by Computer Association of India as ‘Top 50 CIOs as part of India’s Best CIOs’
• Recognized by Centre of Recognition & Excellence (CORE), as ‘Manufacturing Icon’ at the second CIO Power List
• Winner of Greentech Award 2015
About the Company
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 14
Strategic Intent Behind Technology Adoption & Innovation
• Process technology improvement• Capacity enhancement and productivity improvement• Product improvement• Expansion of product portfolio• Creation of digital ecosystem for better integration,
monitoring & control• Conservation of energy
Fy 14 Fy 15 Fy 16
272.44
421.35396.05
R & D Expenditure (Rs in Million)
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 15
Technology adoption
• Manufacturing - Additive manufacturing for metals, Development of precision forging (Near net shape forging), Technology development for Aerospace forging, cold and precision forging, Development of aluminum forgings for passenger car application, Development of near net shape components for di erential gear box, Technology development on precision gears.ff
• Energy conservation- Automatic burner on-o system, Automation in capacitor bank switch-ffover system to improve power factor while quenching
• The Company has decided to work on 5 building blocks for implementing industry 4.0: Digitization of information flow from top floor to shop floor, Digitization of information flow from shop floor to top floor, Automating the Real Time KPIs Monitoring Visualization, Layer Digitization of Material Flow, and Digitization of Services.
Source: Company Annual Report
Human Capital Development Initiatives
Internal Activities
External Activities
To improve the way of life, work culture, employee engagement, productivity, e ectiveness and ffefficiency
To engage and improve the relationship with the community, and develop the skills of the youth in neighborhood areas which in the long run would help in getting trained employee and improving the business environment
Training need identification
Training on• Engineering Knowledge• Managerial Effectiveness & Leadership• Higher Education
Knowledge, Skill, Motivation & Attitude
Industrial Training Institute (ITI) in Khed near Pune, Kalyani School, supported by BFL , ‘Life Lab’ in the
adopted School Rajrshi Shahu Maharaj, mentoring of students from Vidhyarthi Sahayak Samittee and CII
Foundation, Pune
- Improved relationship with the community- Trained Youth- Feel good factor
Source: Company Annual Report
• Fulltime Engineering Development Program at Chakan• Managerial Training, SHRM training, Soft skill• ‘Industry Mechanic’ training course for ITI qualified
employees• tie-ups with leading academic institutions such as BITS-
Pilani, IIT Mumbai and Warwick University
Industrial harmony through regular employee meeting on business related activities and challenges;
maintaining safety and dignity of the women employee
17
Some Aspects of Overall Performance
Performance, % increase over FY15:• 87% growth in Passenger Vehicle export Business in FY 2016 in
comparison to FY 2015.• Earnings before interest, tax, depreciation and amortization
(EBITDA) margins maintained at 30%• New customer addition in domestic PV market. The Passenger
Vehicle segment witnessed a 5.5% increase in demand, driven by new product launches.
• CV revenues in the export market grew by 8%Fy 13 Fy 14 Fy 15 Fy 16
31,51233,993
45,48143,054
Total Revenue ( Rs in Million)
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School
• A total of 12 patent applications were filed in FY 2015-16, bringing the number of patents filed till date to 22. • KCTI’s learning curve on Additive Manufacturing (3D printing) of metals is one of the fastest in India.• Total 31 research articles were published and presented at various international conferences during 2015-16• Skill upgradation training imparted to 42% of the permanent employee
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 18
Case Study 3 – Mahindra & Mahindra
About the Company
• Mahindra & Mahindra is a part of the US$ 17.8 billion global Mahindra Group headquartered in Mumbai, India, with a presence in over 100 countries and employing over 2,00,000 people. The Group’s operations span 20 key industries across 10 sectors.
• Revenue: INR 1,16,245 Cr • India’s largest tractor Company• India’s #1 Utility Vehicles maker (Market share: 37.9%), # 1 Small Vehicle Maker (Market share:
51%)• ‘Technology Innovation of the Year’ award at IATIA 2015 • ‘Top 3 Institutions for R&D in Renewable Energy’ by the Ministry of Non-conventional and
Renewable Energy (MNRE), Govt. of India.• ‘Manufacturer of the Year’ by CNBC Overdrive Awards 2016 and ET India Manufacturing
Excellence Award 2015 by Frost and Sullivan. Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 19
Strategic Intent Behind Technology Adoption & Innovation
Mahindra & Mahindra believes “…Innovation will be one of the main drivers of our e orts at emerging ffamong the Top 50 Most Admired brands in the world by 2021.”
• Expansion of product portfolio• Process technology improvement• Product improvement, cost reduction, & product
development • Import substitution – Alternative material
development
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 20
Technology Adoption
• Technology adopted: CNG Injection Technology, Hydrogen Fuel Technology, Dual Clutch Transmission Technology, Advanced Engine Exhaust After Treatment Technology, Advanced Engine Exhaust After Treatment Technology, New Gasoline Engine Technology, Automated Manual Transmission Design & Development, Automated Manual Transmission Design & Development for vehicles
• Recently launched TRRINGO digital platform using new age technology and digitization to make tractors and implements more accessible to the small and marginal farmers.
Source: Company Annual Report
Human Capital Development Initiatives
Internal Activities
External Activities
To improve the way of life, work culture, employee engagement, productivity, e ectiveness and ffefficiency
To engage and improve the relationship with the community, and develop the skills of the youth in neighborhood areas which in the long run would help in getting trained employee and improving the business environment
Talent Management framework driven by the Talent Councils at the Group and Sector Levels
Training on Attitude, Quality, Safety, Managerial Effectiveness, Technical efficiency
Knowledge, Skill, Motivation & Attitude
Project Nanhi Kali, which supports the education of underprivileged girls, Mahindra Pride Schools, which provide livelihood training to youth from socially and economically disadvantaged communities, ‘Mahindra École Centrale’ (MEC) in Hyderabad, in partnership with Ecole Centrale, Paris and the Jawaharlal Nehru Technological University, Hyderabad. Wardha Family Farming Project, Krishi Mitra and Integrated Watershed Development Project
- Improved relationship with the community- Trained Youth- Feel good factor
Source: Company Annual Report
• Mahindra Leadership University (MLU)• Tie ups with leading international, and
national institutes like HBS, IIM etc.
3E approach: Experience, Exposure, and Education
Industrial harmony is maintained through ‘open door policy’, shared understandings, in-house feedback
mechanism and trust
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 22
Some Aspects of Overall Performance
• Volume growth in fy16: 6.3%• New products launched in 2015-16: 14• Shop floor associates generated about 17.5
ideas per person towards resolving quality concerns, reducing cost, ensuring safety and improving productivity, resulting into whopping cost saving of Rs. 26 crores cumulative for 2 years.
• Three prestigious National Awards on World Intellectual Property Day under the categories of ‘Best Commercialization of Patents’, ‘WIPO (World Intellectual Property Organization) Users Trophy’ and ‘Top Organization for Trademarks’.
• 7th rank at World Skill Competition held at Brazil in 2015-16.
Fy 15 Fy 16
39,293
41,739
Net Income ( INR in crore)
Source: Company Annual Report
Fy 06 Fy 160
20406080
100120140160180
10
173
Patent Applications
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 23
Case Study 4 – Asian Paints
• Asian Paints Limited is an Indian multinational paint company headquartered in Mumbai, Maharashtra. Presently it is operating in 19 countries and has 26 paint manufacturing facilities in the world, servicing consumers in over 65 countries.
• The Company is engaged in the business of manufacturing, selling and distribution of paints, coatings, products related to home decor, bath fittings and providing of related services.
• Asian Paints is India's largest and Asia's third largest paints corporation.• "Royale Aspira" certified to be compliant as per Green Seal standard for Paints and Coatings(GS-
11),USA.,2015.• "Asia Coating Innovation Achievement Award" at the Green Industrial Coating, Asia, Shanghai, China in
October 2011
About the company
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 24
Strategic Intent Behind Technology Adoption & Innovation
• Product improvement and new product development• Process technology improvement for capacity
enhancement, efficiency & productivity improvement• Alternative sourcing• Waste reduction & environmental protection• System integration for better monitoring & control• Risk mitigation
Fy 15 Fy 16
71.64
75.16
R& D ( INR in crore)
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 25
Technology Adoption
• Asian Paints has completed the upgrade of its core ERP to a highly scalable in-memory platform and the new S/4 HANA platform to analyze vast amounts of data across multiple dimensions and derive insights.
• Adopted the cloud technology in some of its enterprise wide requirements considering the overall business value offered by these solutions.
• Asian Paints has set up an IT architecture that supports personalized consumer journeys across physical (Colour Ideas, Signature Stores), digital (Website, Mobile, Kiosks) and human (Colour consultancy, AID) touch points through seamless integration of multiple systems.
• Predictive and data mining based upgradation of demand forecasting platform• Technology imported: Technology of Intumescent Coating for cellulosic fire from M/s Neutron
Fire Technology Inc.• State-of-the-art Research & Technology Centre at Mumbai.
Source: Company Annual Report
Human Capital Development Initiatives
Internal Activities
External Activities
To improve the way of life, work culture, employee engagement, productivity, e ectiveness and ffefficiency
To engage and improve the relationship with the community, and develop the skills of the youth in neighborhood areas which in the long run would help in getting trained employee and improving the business environment
Training need identification
Training on• Engineering Knowledge• Managerial Effectiveness• Leadership
Knowledge, Skill, Motivation & Attitude
11 (eleven) permanent academies and 10 (ten) mobile academies. Asian Paints has partnered with National Skills Development Programme (NSDP) to strengthen the delivery of this programme to both unskilled and semi-skilled individuals. partnered with National Skill Development Corporation (NSDC) for undertaking a painter skill development project. projects focused in areas of Water, Health and Hygiene and Education
- Improved relationship with the community- Trained Youth- Feel good factor
Source: Company Annual Report
• Internal Training• Partnering with NSDC• collaborative development projects with
vendors, academia and institutes
Industrial harmony through employee branding and engagement, transparent & well laid out policies, cultural integration and diversity
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 27
Some Aspects of Overall Performance
• 78% men and 60% women employee got skill upgradation• New Products Launched (2015-16): 22• Patents filed (2015-16) – 5• The high end premium interior product “Royale Aspira” has received “FICCI sustainability award” from The
Federation of Indian Chamber of Commerce and Industry for being selected as the best green product in the chemical and petrochemical sector in the year 2015. This is the only product approved by US Green Seal body in paint category in India for being compliant to GS-11 standard in all aspects.
Source: Company Annual Report
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 28
Conclusions from the Four Cases
From the brief case studies of the four leading manufacturing firms in India it is evident that all of
them have given significant importance to adoption of advanced technologies in order to achieve
competitiveness. They have innovated new products to cater to the emerging needs of the
customers not only within the company but also in the international markets. These firms have
over the years established a significant presence internationally that has made it imperative for
them to think about their corporate strategy with a global perspective. The four case studies also
bring out the fact that all of them have also invested significantly in developing their human
capital. Given their overall success in the competitive market, we can surmise, therefore, that their
emphasis on human capital development has helped them not only in improving productivity, but
also in smooth adoption and implementation of advanced technologies.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 29
Conclusions from the Four Cases (Cont..)
The case studies also provide evidence of the senior and top management’s involvement in the
area of technology and human capital development. All the four firms have given emphasis to
human capital development activities both within as well as outside the organization. The internal
activities are geared towards development of their existing human resources while the external
activities have two fold objectives: (i) development of the future human resources, and (ii)
develop a relationship with external constituencies to create harmonious relationships with the
larger community which is essential for development.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 30
India – Present Status
• Manufacturing sector contributes around 16% to the GDP• Global Competitiveness (2016) Rank #39 with an index score of 4.52 (scale 1-7)* where Switzerland being #1• Manufacturing Competitiveness** (2016) Rank # 11 with an index score of 67.2 (Low: 10, High:100) where
China being #1• Human Capital Index (2016) Rank # 105 (out of 130 countries)*** where Finland being #1
*Source: The Global Competitiveness Report 2016–2017, World Economic Forum** Source: Deloitte Survey (2016)*** Source: Human Capital Index 2016, World Economic Forum
Although India gained global competitive index # 39, the survey of World Economic Forum has pointed out the following areas of concern which need to be addressed
• Stagnating performance on technological readiness• Slow growth of higher education & training• Infrastructure
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 31
Govt. of India Initiatives
Make-in India
• To foster innovation. • To enhance skill development. • To protect intellectual property. • To build best-in-class manufacturing infrastructure.
Digital India
Skill India
To make the country digitally empowered in the field of technology by• The creation of digital infrastructure• Delivery of services digitally• Digital literacy
Start-up India
• To train over 40 crores (400 million) people in India in different skills by 2022.
• To create employability
• To promote start-up ventures • To boost entrepreneurship and encourage start ups• To develop youth specially from backward classes and women • To create employment opportunities
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 32
Case Study: Visionary Leaders for Manufacturing Programme (VLFM)
Portfolio of Programmes:
• The Visionary Leaders for Manufacturing Programme was conceived under the guidance of Professor Shoji Shiba, an international expert in Total Quality Management (TQM) and Breakthrough Management and Professor Emeritus of University of Tsukuba in Japan, and Chief Advisor to the Visionary Leaders for Manufacturing Programme (VLFM) in India.
• This programme was designed to develop the human capital required to provide visionary leadership to manufacturing industry in India in order to make it globally competitive.
• VLFM is the flagship national program to develop Leaders in Manufacturing as per the recommendations contained in the National Strategy for Manufacturing (NSM).
• This program is based on a partnership arrangement between IIMC, IITs and CII with NMCC playing a catalytic role.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 33
Case Study: VLFM (Cont..)
Visionary Leaders for Manufacturing : The Key Stakeholders
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 34
Case Study: VLFM (Cont..)
The Four Opportunities:
On the basis of the Detailed Project Report (DPR) prepared by IIT/IIM, NMCC, CII and JICA, four programs were identified : Opportunity ‘A’: to develop skills of Senior Managers from large and medium companies to
implement contemporary manufacturing management practices – Conducted by CII Opportunity ‘B’: to develop next generation of manufacturing leaders through an one year full time
residential program leading to award of PG Diploma in Management for Executives in Manufacturing (PGPEX-VLM) for middle/junior managers – Conducted jointly by IIMC, IITK & IITM
Opportunity ‘C’: Short duration program (less than a week) designed for CEOs and top level managers to brainstorm and appreciate the need for visionary leadership in manufacturing and how best to utilize the emerging talent created by VLFM programs – Conducted by CII
Opportunity ‘D’: designed for SMEs to enable them to meet growth & globalization requirements and developing into visionary leaders – Conducted by CII.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 35
Case Study: VLFM (Cont..)
Logo of the programme
Visionary Leadership for Manufacturing (VLFM) program has been introduced in India under the direct initiative of Government of India, through Ministry of Human Resource and Development (MHRD) and NMCC. A separate LOGO has been assigned, as given here illustrates growth and improvement with the support of 3 major stakeholders; Industry, Government and academia.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 36
Case Study: VLFM (Cont..)
Indo-Japan Cooperation Agreement – 2006
• Indo-Japan Cooperation Agreement 2006, signed by Hon’ble Dr. Manmohan Singh, Prime Minister of India and His Excellency Mr. Shinzo Abe, Prime Minister of Japan, in December 2006.
• Government of Japan is actively supporting various initiatives of the Indian academia and industry in the area of manufacturing and design.
• From Japanese side, JICA is playing a key role in implementing the project. • Professor Shoji Shiba, an Individual Deming Prize Winner, is a Member of the NMCC Apex
Committee for VLMP, who is also JICA Advisor for the program. He has also been honoured by the Government of India with the title of Padmasree.
• The existing agreement was extended up to March 2013. A new agreement has been signed by the Government of India and the Government of Japan for a period of three years for a programme named Champions of Societal Manufacturing.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 37
Case Study: VLFM (Cont..)
Objectives of PGPEX-VLM (Opportunity ‘B’) jointly conducted by IIMC, IITK & IITM:
• To provide skill based training to transform potential middle-level managers in Indian manufacturing industry into visionary leaders who can provide strategic leadership to their organizations
• To implement principles of manufacturing excellence in organizations• To promote innovation to make Indian manufacturing globally competitive
Launch of PGPEX-VLM
In order to realize these objectives as laid down in the National Strategy for Manufacturing, a 1 year joint IIMC, IITK & IITM Post Graduate Program for Executives for Visionary Leadership in Manufacturing (PGPEX-VLM) started in August 2007 at IIMC. The program was formally launched in New Delhi on 7th May, 2007 by Dr. V. Krishnamurthy, Chairman, NMCC.
Prof. Shekhar Chaudhuri & Prof. Sanjib Biswas, Calcutta Business School 38
Case Study: VLFM (Cont..)
Selection Criteria:
• First class graduate engineer with first division in class X & XII School Board Examinations
• Candidates with minimum 5 to maximum 10 years work experience in manufacturing may be considered for admission as self sponsored, sponsored or on study leave
• Candidates with more than 10-years work experience can only be considered as sponsored or on study leave
Main Aspects of the Programme:
• Structured pedagogical approach based on lectures and discussion, cases, role plays and presentations
• Domestic industry visit• Study visit to Japan to study
manufacturing best practices and get acquainted with Japanese culture
• Industry internship