industrial integration

7/29/2019 industrial integration

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INDUSTRIAL INTEGRATION REPORT

(ON GODREJ LOCKS AND VENTUREINFOTEK)

16 1 = 15/20

Eligibility Presentation Marks - 36

Submitted by,

Aarthi Mohan -01

Anshulika Singh -19

Ashish Pandey -21

Dheeraj Agarwal -26

Manoj Pandey -38

Sangram Kacharia -58

Prinku Jain -50

Vamsi Krishnam Raju -43

(PGDM Batch-12)

Kirloskar Institute of Advanced Management Studies, Harihar


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1)Objectives of the visit:

1. To get acquainted with the practical application of the concepts of Balanced Score Cardand the Business Excellence Model.

2. To get a better understanding of the Business Excellence Model and the Balanced Score

Card.

3. To interact with the various functional heads of the respective manufacturing and service

companies.

2)Manufacturing company:

The Godrej Group:

This company established in 1897, the Godrej group has grown in India from the days of the

charkha to nights at the call centers. Their founder, Ardeshir Godrej, lawyer-turned-locksmith,

was a persistent inventor and a strong visionary who could see the spark in the future. His

inventions, manufactured by his brother Pirojsha Godrej, were the foundation of todays Godrej

empire. One of Indias most trusted brand, Godrej enjoys the patronage and trust of over 400

million Indians every single day.

With 7 major companies with interests in real estate, FMCG, industrial engineering, appliances,

furniture, security and agri care to name a few their turnover crosses 2.5 billion dollars. Their20% of business is done overseas. Their presence in more than 60 countries ensures that their

customers are at home with Godrej no matter where they go. This is the thing that company

promise.

Godrej Boyce Locks Division:

Godrej, the name etched in metal, secures almost every door in India. Since its inception in 1897

by Ardeshir Godrej, the name Godrej has become synonymous with trust, protection and

integrity. Today, after a period of more than 100 years, his legacy continues to ensure a high

degree of security to consumers with the implementation of latest technology and constantinnovation. With exports of Godrej Locks spanning across various countries, the brand has come

a long way in delivering world class locking solutions.

They have different level of locking system:


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Level 1: Godrej security level 1 locks comes with conventional mechanical locking system with

basic security system having lever, wafer, tumbler and single row pin cylinder technologies.

Each key is unique with arrange from 200 to 1000 key combinations.

Level 2: Godrej Security level 2 comes with highly precise computerized dimple key and

advanced multi row pin cylinder technology. Each key is unique with 10 crore key combinationsmaking it unpickable and non-duplicable.

Level 3: Godrej Security level 3 comes with Advanced Multirow Pin Cylinder Technology. Each

key is unique with 200 crore key combinations.

Level 4: The Elite technology called Godrej EWA is a revolution in mechanical locks. These

locks are based on the 3 curve system which is characterized by its spring less principle. Locks at

this level provide highest protection against picking as compared to any mechanical lock and are

compatible to European standards. Each key is unique with 30 lakh crore combinations i.e. as

unique as human DNA.

Level 5: Godrej SALTO IC card and i-Button electronic technology are based on virtual

network, functioned by access control system unlike the conventional mechanical locks.

Service company:

Venture Infotek:

This company is Incorporated in 1997, Venture Infotek pioneered the introduction of e-

Payments in India, and since then has continued to be instrumental in shaping this industry. The

company not only enjoys a tremendous first mover's advantage, but also has in place a superior

infrastructure backed by a very professional and experienced management team, headed by thefounders, Mr. Dhruv Khaitan and Mr. Piyush Khaitan.

Mission Statement:

Changing The Way India Transacts.

Company Overview:

Headquarters and Primary Data Center in Mumbai

Disaster Recovery Site (DRS) located at Bangalore

20 regional and branch offices across India

ISO 9001:2008 certification awarded by Bureau Veritas accredited by UKAS (United

Kingdom Accreditation Services) Quality Management System

Fully certified to be compliant with the Payment Card Industry (PCI) Data Security

Standards (DSS)


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3.1) Manufacturing Company data captured in BEM

and BSC models

And

3.2) Specific linkages between process and outcomes

(in both models)

BUSINESS EXCELLENCE MODEL

GODREJ & BOYCE

> LEADERSHIP

Mr. Shyam P. Motwani (Business Head), along with the Vice-President and the other

functional heads, is responsible for developing the mission, vision and objectives of the

organization.

The mission of the business is its most obvious purpose which is to provide lockingsolutions.

The vision of the business reflects its aspirations and specifies the future destination

towards which the business is headed, i.e. to become the no. 1 door-lock-making company

in the world.


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The objectives of a business refer to the ends that activities/tasks are aimed at

achieving.

They also set the targets like profit in business, quality improvement, technologyimprovement with new product development in locking systems, productivity and

performance improvement, improvement in effectiveness, team-work, community spirit,

supportive leadership and learning & development.

They use performance measurement to review and improve employee- effectiveness and

use an annual appraisal system, monetary and non-monetary rewards. It also includes the

monthly business performance measurement form, monthly meetings and satisfaction

surveys of employees.

They are highly involved in continuous development activities like quality improvement,

market growth, new product development and cost-effectiveness processes.

At Godrej & Boyce, leaders believe in innovation and creativity through KAIZEN targets

at every level. TPM is implemented by which Zero Accident, Zero Defect and Zero

Breakdown are achieved. TPM makes automation and integrated production systemseffective. Through TPM, Just-In-Time production system can be achieved. The output of

the production system can be measured in terms of Production (P), Quality (Q), Cost I,

Delivery (D), Safety (S) and Morale (M). TPM process reduces six big losses like

breakdown, setup, idling and minor stoppage, speed losses, defects and reworks, startup &

yield losses. The index of efficiency is calculated in terms of OEE, i.e. Overall Equipment

Effectiveness, which is the product of Availability, Performance and Quality. OEE should

be 85% or more which gives the profit of more than 1.5 times in productivity. Hence Rate

of Operation time should be 90% or more, Performance rate should be 95% or more and

Quality rate should be 99% or more. Safety management, 5 Ses and Value- engineering

are also considered. Training and Development of employees is also an important decisionfor leaders.

Leaders at Godrej & Boyce always constantly monitor their Customer-satisfaction reports,

distribution channels, warranty and suppliers audit. Applying the BEM gives the company


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improved focus on specific aspects like customers, financial perspective, Quality

improvements etc.

At Godrej & Boyce, improvement is also achieved by technical collaborations withcompanies like Sulto (Spain).

Leaders also involve themselves in the implementation of strategies and policies:

All policies and strategies must be discussed with all managerial personnel and staff.

Managers must understand where and how they can implement their policies and

strategies.

A plan of action must be devised for each department.

Policies and strategies must be reviewed regularly.

Contingency plans must be devised in case the environment changes.

Assessments of progress ought to be carried out regularly by top-level managers.

A good environment and team spirit is required within the business.

The missions, objectives, strengths and weaknesses of each department must be

analyzed to determine their roles in achieving the businesss mission.

The forecasting method develops a reliable picture of the businesss future

environment. A planning unit must be created to ensure that all plans are consistent and that policies

and strategies are aimed at achieving the same mission and objectives.

Contingency plans must be developed, just in case.

The leaders involve themselves in making the organizational structure. They interact with

customers for business improvement, political and social leaders for societal improvement

and employees for productivity improvement. They are accessible to their employees right

from the top to the bottom levels, for help and support.

Godrej & Boyce has received the Helen Keller Award for providing employment

opportunities to the physically-challenged people.

2. PEOPLE


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At Godrej & Boyce, people includes shareholders, customers, employees, dealers,

suppliers and society. Shareholders are concerned with the rate of return and capital

management, customers being concerned with the quality system, delivery, satisfaction,new products and cost effectiveness. Employees and Dealers are concerned with

recognition, satisfaction, safety, training & development and welfare. For the societal

aspect, their concern for the environment is demonstrated by their helping the Mumbai

environment by planting Mangroves near the Vikhroli area; as also by their initiatives in

education, welfare, etc.

At Godrej & Boyce, the human resource policy is reviewed annually and they emphasize

on openness, high performance, rising standards, state-of-the-art technology, quality, team

work, supportive culture, introspection, learning & development, automation, etc. Hence,

policies like the recognition policy, job rotation policy, job enlargement policy, training &

development policy, remuneration policy, recruitment policy, physically-challenged

employee policy and recruitment policy are developed for the satisfaction of their people.

They give importance to recruitment and career development, career growth opportunities,

work-life balance, succession plan, ERP, 5 Ses, performance management, etc.

For the recruitment of GET and management trainees, Godrej & Boyce select premium

Engineering and Management Colleges respectively. Their parameters for selection are

analytical and logical ability, communication skills, initiative & drive, innovative approach,

leadership quality, stress management, interpersonal skills, team skills, customer

orientation, problem solving and change-management.

They empower people, so that involvement and participation can increase. They organize

different activities for involving people like Kaizen competitions, Annual day, Sports

event, cultural events, Safety week, etc.

Godrej & Boyce has developed communication channels for people to freely express their

opinions and suggestions for improvement. Bottom-line employees can directly contact the

CEO of the organization.


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HR people promote awareness and involvement in environmental, health and safety issues

and social responsibilities. Godrej is involved in providing education to poor children,

clothes and food to orphans, a green environment, medical facility, donation to NGOs, etc.

> POLICY AND STRATEGY

The top-most level of management mainly comprises of the Godrej family, who are the main

stakeholders in decision-making. They identify and understand the needs and expectations of

the Godrej family.

The strategies involve exports to different countries, pricing, positioning, logistics,

engineering, cost reduction, new product development, domestic market, profitability, fixed

and variable cost, working capital, manpower utilization, inventories, ratio analysis,

production targets, customer satisfaction and complaint solving, quality, sales promotion,

etc. The strategies for these processes are based on the basis of information from the

internal performance indicators, learning activities and economic and demographic

conditions. They review it on weekly, monthly, quarterly and annual bases.

The policies and strategies for customers are aimed towards providing reliable safety locksfor every segment that they cater to, competitive price, and a structured distribution

channel. Godrej & Boyce is the only company in India who has a structured distribution

channel. For shareholders, foreign and domestic market focus, material cost reduction,

productivity increase, manufacturing cost reduction. For employees, best salary in the

industry, healthy work culture, career growth and job satisfaction. For suppliers, it is

mutual growth, long relationship, payment policy, financial support, technical support and

productivity improvement. For society they contribute to the well being of society,

monetary help to relief fund and NGOs, environment consciousness, health and education.

PARTNERSHIP AND RESOURCES


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The partnerships are entered into, considering quality, technical competence, financial

status, location, knowledge, skills and attitude. Supplier development includes their

willingness to grow, improvement in productivity and quality, systems, machines,

certifications, cost and capacity. They believe in sharing knowledge with the suppliers and

supporting mutual development and value addition. Vendor rating and review is done for

feedback and performance improvement. Dealership network is developed according to the

product and the market. Dealers review and performance is assessed by the marketing

department. Categories are made according to the ratings.

PROCESSES

For customers, the business process should focus on customer satisfaction through

improved service and field-complaint analysis, new product development for retaining their

no. 1 position in providing locking solutions; strategic planning that includes long term and

short term planning to help finding new markets and identifying customer requirements and

a Quality Management System for product reliability.

For shareholders, the focus would be on cost saving processes by continuous improvement

and fixed-cost reduction, working capital management, adopting methods like TPM,

Kaizen, Poka Yoke, 5S and 7 QC tools. Using ERP system improvement can be achieved

in every department. Using Kanban card, helps in inventory management.

For employees, training & development and welfare activities are provided.

For suppliers, they upgrade suppliers and supply chain management, reduction in lead time,

reduction in throughput time at vendors end. They also do advance product quality process

and control processes for vendors that include Process failure mode and effect analysis.


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BALANCED SCORE CARD

Grow

internation

al business

FINA

NCIAL

Be a dominant

player in

domestic

market in all

segments

Be among top 3 Lock

Company globally by

2012Reven

ue

Be the lowest

cost

manufacturer of

locks globally


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End customer

Value creation corporatecitizenship

Culture & Climate for action continuous

improvement

Strategic competencies

GODREJ & BOYCE

Since the launching of the scorecard system, Godrej & Boyce now have a greater organization-wide focus on strategic objectives and goals as set by the senior management team. The

workforce is now clearly focused on the customer and on improving critical processes. They

have achieved alignment, and integration, of objectives both across the company and from top to

bottom, i.e. both horizontally and vertically.

CREATING A BALANCED SCORECARD SYSTEM

Enhance value

for channel

partnerCUS

TOMER

Increase

accessibility for

customer

Enhance customer satisfaction

through reliable, cost effective,

safe and good value product

and serviceEnhance

product

offering

P

ROCESS

LEARNING

Enhance

employee

satisfaction

Align

Employee to

companystrategy

Create

high

performa

nce

culture

amongst

employee

s

Excel in

corporategovernanc

e social

responsibili

ty

Design &

Developm

ent

Manufacturing andVendor

managementSales &

Marketi

ng

Identify and

acquire

information

technology in

line with

company

strategy

Develop

strategic

competencies

Excel in

the

journey

to

excellenc

e


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Balanced Scorecard in Godrej & Boyce comprises the measures, targets, ownership and

initiatives that support the strategy map. Here Balanced Scorecard was created by putting in

place high-level steering committee includes functional heads and some key officers.

SCORECARD DELEGATION

Here BSC cascades to the lowest working level in the organization. For this process they are

trained by consultants but now this is done by employees only. The visible benefits secured from

the systematic evolution and review of the score card at all levels has led to wholehearted

appreciation of the balance scorecard concept.

STRATEGY MAP

Be a dominant player in the segment in which it is manufacturing and strengthen presence in

domestic lock market by increasing market share.

CHALLENGES

Although it has already achieved a great deal through scorecard usage, there are still challenges

ahead. Continuous improvement in the Balanced Scorecard process, which is beneficial to all the

functions and Departments, is seen as important to maintaining momentum. Thus, maintaining

momentum requires continuous communication to all employees. Every year, the MD initiates

this process by sharing the company vision, mission, future directions, and strategy in annual

meeting. Within each department, it is re-iterated by the HOD in monthly meeting.

CRITICAL SUCCESS FACTOR

1.The active and visible support of senior management.

2.A strong review process.

3.A knowledge team to drive and support scorecard deployment.

4.1)Service company data captured in BEM and BSC

models

Venture Infotek

BEM Model

1. Leadership


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Excellent Leaders develop and facilitate the achievement of the mission and vision. They

develop organisational values and systems required for sustainable success and

implement these via their actions and behaviours. During periods of change they retain aconstancy of purpose. Where required, such leaders are able to change the direction of the

organisation and inspire others to follow.

1a

.

Leaders develop the mission, vision, values and ethics and are role models of a culture of

Excellence.

Mr. Dhruv Khaitan - Founder and Chairman has largely been involved in the creation of

high technology businesses, which required pioneering efforts, to bring in new concepts and

technologies. Thus he developed the vision for the company

Changing The Way INDIA Transacts

The values of the organization are

Respect and Empathy

Transparency and openness

Integrity and Ethics

Customer Focus

Result orientation

Team work

The management team in Venture Infotek is highly focused and is involved in bringing

excellence in the organization through various projects and training programs.The programsinclude Six sigma,Kaizen,Lean etc. The top Leadership constantly communicates with the

employees to ensure that they are working towards achieving the companies Vision, Mission

and Objective.The company has an objective of installing 30 million POS till 2014.

1b.

Leaders are personally involved in ensuring the organisations management system isdeveloped, implemented and continuously improved.

The top management of the company constantly reviews the various processes and updates itas per the changing Business environment.

1c.

Leaders interact with customers, partners and representatives of society.The leadership interacts closely with the banks in the payment card industry at all levels,

international card associations like VISA , Mastercard, and American express and also

actively involves in discussion with the Reserve Bank of India.

1d Leaders reinforce a culture of excellence with organisations people.


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. The company has a bi-annual meet (Townhall) with the employees in which it discusses the

future prospects of the company and its strategy to achieve its objectives.

1e

.

Leaders identify and champion organisational change

There have been several changes in technology and customer solutions, which have beenclosely monitored by the leadership.

2. Policy & Strategy

Venture Infotek has implemented its mission and vision by developing a stakeholder

focused strategy that takes account of the market and sector in which it operates. Policies,plans, objectives, and processes are developed and deployed to deliver the strategy.

2a. Policy and Strategy are based on the present and future needs and expectations ofstakeholders.

The Company has a policy to keep expanding its businesses which increases the customerbase and the revenue of the company.

2b

.

Policies and Strategy of Venture Infotek are Customer oriented and have focus on Quality.

Venture Infotek is committed to exceeding customer expectations, delivering customers an

exceptional experience and redefining the world of transactions.

2c. Policy and Strategy are developed, reviewed and updated.The Companies vision provides the guidelines for developing, reviewing and updating

policies and strategies. The top management constantly reviews its policies and makes

relevant changes from time to time.

2d.

Policy and Strategy are communicated and deployed through a framework of key processes.

The policies of the company are based on the values of the company which provide the

framework for the key processes. The company has its business policy uploaded

on the website which can easily be accessed and should be followed by each employee.

3. People

Venture Infotek manages, develops and releases the full potential of their people at an individual,team-based and organizational level. Venture Infotek, believes that the people are its greatest

strength. The success of its people is the base for its competitive advantage in business. Thecompany provides its people with meaningful and challenging roles that add value to the career

aspirations of its employees.

3a. People resources are planned, managed and improved.


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The company has an intensive selection procedure. They hire people who already have

experience in the industry. They have a flat organizational structure which helps in

accessing people at all level and improve the organisations efficiency.

3b.

Peoples knowledge and competencies are identified, developed and sustained.The company believes that the people are the key drivers of their business. The knowledge

base of its employees is the key to achieve service excellence. The training and development

effort emanates out of this understanding. The company has a clear and an ambitiousTraining & Development plan in place that not only caters to the organizations needs but

also benefits the employees, such as Six Sigma Training, Leadership Programmes and

Relationship Management Programmes..

3c. People are involved and empowered.The Flat organizational structure empowers theemployees and encourages them to be a part of improvement activities at all levels.

3d

.

People and the organisation have a dialogue.The company has several platforms to

communicate with its employees.Some of them are Bi Annually Town hall, Venture

Infotek delight etc.

3e. People are rewarded, recognised and cared for.At Venture Infotek they strongly believe thattimely recognition of efforts and even small successes should be recognized and rewarded.

Hence, on the spot recognition and structured reward programs are some of our endeavors in

this direction

4. Partnerships & Resources

Venture Infotek has partnership with various banks and corporate which enables the company to

increase its business at a great pace.

Some of the Business associates are


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The company has the best technology which helps in enhancing customer experience. Venture

Infotek has aimed to absorb the best of payment transaction technologies and implement the

same in the companys solutions for the benefit of customers. The emphasis has always been toprovide Reliability, Scalability, Security, Customization and Superior Performance in all

solutions, thus ensuring continuity as the customers business needs grow.

4a. External partnerships are managed.The company has partnership with several big companies

which are mentioned above.

4b.

Finances are managed.

4c. Buildings, equipment and materials are managed.

The company has its primary Information centre at Mumbai and Disaster Recovery Site

(DRS) at Bangalore, which ensures business continuity for its customers and businesspartners, in case of any disaster or major information service disruption at its primary data

centre in Mumbai.

4d

.

Technology is managed.

Venture Infotek has aimed to absorb the best of payment transaction technologies and

implement the same in the companys solutions for the benefit of customers. The emphasishas always been to provide Reliability, Scalability, Security, Customization and Superior

Performance in all solutions, thus ensuring continuity as the customers business needs

grow.

4e. Information and knowledge are managed.


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The company uses the latest multiple terminal platform suiting various business and

application requirement which keeps the information easily accessible by its business

partners and customers.

5. Processes

Recruitment process- The recruitment process is designed in a way that it hires only the best

quality of people who can deliver from the day they join the company. The Induction processprovides new employees an insight to the companies vision and values and how they will play

their part in the organization .

Communication process- The Company encourages the employees to give their suggestions

through a feedback form. The company has a regular feedback process in which it looks at theopportunities and improvement areas.

Training process-The employees of the company are sent to several external training programs inIndia so as to help improve their innovation and creativity,on the other hand, the soft skill

training is spear headed by a group of trained external professionals, who are recognized leadersand specialists in their field. In addition, the employees are sent to attend various programs and

seminars to gain updated industry knowledge in their respective areas.

Research process-Venture Infotek accentuates relaying of information pertaining to the latesttrends, industry analysis, and market insights assembled through core research. The Industry

Survey is an annual feature from the Venture Infotek Research Team providing the trends,

statistics and a rich analysis of the Payment Cards Industry in India.

5a. Processes are systematically designed and managed.The company has well defined processes which enable it to achieve excellence by

satisfying the customers and the stakeholders.Some of the processes of the company are

recruitment processes, quality review and quality management processes, customer

relationship management processes. ,risk management process ,payment process.

5b

.

Processes are improved, as needed, using innovation in order to fully satisfy and generate

increasing value for customers and other stakeholders.The company takes feedback about

various processes and uses six sigma methodology to improve its processes in order to

increase its value for customers.

5c. Products and Services are designed and developed based on customer needs andexpectations. Looking at the huge demand for Plastic money, the company has increased its

capacity to make cards. The company is also associated with agencies like Gramin Vikas

Yojna in which it makes insurance cards for rural families.

5d

.

Products and Services are produced, delivered and serviced. The company provides end to

end support to all the card holders of the various banks which are its customers.


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5e. Customer relationships are managed and enhanced.

The company has a customer service center which caters to the needs of the customers at all

hours. The company also provides customized services to its customers (various banks andcorporate).

Results

6. Customer Results

Venture Infotek has a customer focused approach and ensures that they get the best experience

from its services. The latest technology provides the customers uninterrupted services which

results in satisfied customers. The Customer Satisfaction Survey reveals that the customershave been highly satisfied with the services.

The company has introduced new technology which has resulted in fewer transaction failure and

reduced transaction time(from 6 sec to 3 sec/transaction).The availability of POS machines has

increased, and the customer has greater accessibility to plastic money. Thus these measures haveenhanced customer experience.

7. People Results

Venture Infotek comprehensively measures and achieves outstanding results with respect to its

people.

The Company has excellent people policies which have resulted in low attrition rate (comparedto industry standards). The employees have positive synergy and their goals are aligned with the

goals of the organization. The employees are motivated and always ready to accept new

challenges. The company has 5 black belts, 35 green belts and 45 yellow belts at senior andmiddle management level.

8. Society Results

Besides being an environmentally conscious company, an important element of the companys

corporate social responsibility is to care for the society. The company strives to make a

constructive contribution to the disadvantaged communities by supporting a wide range of socio-

economic and educational initiatives. The employees actively participate in the community

projects and programs. Many of our employees have volunteered for the Teach India Programme

and dedicate a couple of hours every weekend to teach and educate the destitute. Our pledge to

address imperative societal needs extends throughout our philanthropic outreach programs.


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Blood Donation Camp: As part of Venture Infoteks Corporate Social Responsibility (CSR)

initiative, a camp was held on 25th June, 2009, at the companys office premises in Mumbai

(Malad).The camp was jointly organized by Venture Infotek along with The Rotary Club of

Mumbai Midtown, Mumbai Thalassemia Society and KEM Hospital.

9. Key Performance Results

Customer base increased-The Company has increased its customer base by 33% in the last 5

years. The company has several public sector bank, private sector bank, multinational banks and

many corporate as its customer.

Revenue increased-The Company has seen a tremendous growth in the past 5 years and hasincreased its revenue by 53.4%

The no. of transaction failure and the transaction time reduced- With the advent of new

technology the company has been able to provide excellent customer experience through reduced

number of failed transaction.

Attrition rate reduced- With excellent processes in place, the company has been able to reduce its

employee turnover by 2 percent. The company has excellent training and development programs

which have resulted in better future prospects for the employees and the company. Thecompanys dynamic environment offers new challenges for its employees which lead to betterproductivity.

Extension of business The Company has been extending its business every year. They have

ventured into making card not only for banks but also for government agencies like GraminVikas Yojna in which it makes insurance cards for rural families.

BSC Model

Vision:

Changing The Way India Transacts.

Financial Perspective:


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Venture Infotek offers end-to-end card payment processing solutions for both issuing and

acquiring banks, processing 150 Million transactions annually with a commerce value of Rs.

35,000 Cr. (USD 7 Bn). Venture Infotek currently manages transactions emanating from over

160,000 Merchant locations and Card issuing programmes for over 5 Million payment and

loyalty cards. Our services are available in over 6,000 unique Postal PIN codes across the

country.

Venture Infotek aims at absorbing and offering the best of payment and loyalty solutions,

services and technologies to its current and future customers. With an emphasis on Reliability,

Scalability, Security, Customization and Superior Performance in all solutions and services,

Venture Infotek ensures continuity as the customer's business need grows.

Today, the company has strategic partnerships with the global best in their respective fields, to

bring together a basket of products and services, catering to the requirements of the Plastic Card

Industry.

As told by Mr.Ram Gupta (executive Merchant Business, Venture Infotek) , here in India out of

1.5 to 2 crore merchants only 4 to 5 lakhs are terminalised ,so its a huge scope for business to

grow. The company is working to increase its capacity and grow as number 1 in India of its

kind. Company is planning to get 30 lakh POS terminals till 2014.

The company has been extending its business every year. They have ventured into making

card not only for banks but also for government agencies like Gramin Vikas Yojna in which itmakes insurance cards for rural families.

Customer perspective:

Venture Infotek manages end-to-end e-infrastructure, which integrates the best of the breedexternal products with internally developed application software and middleware into a unified

core platform. Regional hubs of Venture Infotek are present across 19 cities in India, and

connected electronically to merchant networks spanning across the length and breadth of thecountry. All the regional hubs are linked to the Primary Data Center located at the headquarters

in Mumbai and is fully equipped with the latest state-of-the-art physical, IT and security

infrastructure. The Disaster Recovery Site (DRS) at Bangalore ensures risk free business

continuity to customers and business partners.

Since inception, Venture Infotek has aimed to absorb the best of payment transaction

technologies and implement the same in the companys solutions for the benefit of customers.

The emphasis has always been to provide Reliability, Scalability, Security, Customization and

Superior Performance in all solutions, thus ensuring continuity as the customers business needsgrow.


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The breadth of their terminal platform expertise is ever growing and includes those from

leading terminal manufacturers. The in-depth knowledge gained on these Terminals and

Platforms can be turned to the advantage of our customers to develop application on theplatforms of their choice.

Some of the Terminals they have developed expertise on include the following:

VeriFone (Verix TXO, TCL Platforms)

Schlumberger (MagIC platform)

Hypercom

Intellect

Lipman

KeyCorp

Dionica

PAX

Ingenico

Geodesic

Their customers include public sector banks like Andhra Bank, BOI, Bank of Maharashtra ,

Canara Bank, Central Bank of India, Dena Bank, Union bank, J&K Bank, SBI etc. private banks

like Axis Bank, ICICI, Kotak Mahindra, Yes Bank etc. and multinational banks like American

Express, Barclays, Citibank, Deutsche Bank, HSBC and Master Card. And Venture Infotek is

committed to exceeding expectations and delivering their customers a flawless experience.

Venture Infotek strives to enhance this commitment through:

Ensuring customer success by providing technical leadership, business solutions and new

products Aligning processes to meet regulatory and security requirements

Championing the process of continual improvements in everything they do

Providing a work environment that fosters employee development and satisfaction

Nurturing business partner relationship with suppliers Responsiveness to client needs with customer first in mind

Venture Infotek follows quality measures as Six sigma, Kaizen, ISO 9001:2008, 5S.

Training in Kaizen module is provided to all Employees

Currently following Six Sigma resources are available in Venture Infotek

5 Black Belts

35 Green belts

45 Yellow Belts

Internal perspective:

Standards and conventions play a vital role in ensuring compatibility between products andsolutions from various vendors. Certification to globally recognized standards acts as a


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differentiator between the players in any industry. Venture Infotek is well conversant with

various standards and industry best practices and incorporates the same in its solutions and

delivery mechanisms.

Venture Infoteks implementation and certification to standards include:

Being one of the marker leaders in payment transactions technology, Venture Infotek

realizes the need for building scalable applications to address the growth in the business of their

customers through increased number of transactions. Venture Infotek achieve the same by

designing their solutions on N Tier architecture, separating the business logic and the database

ITIL - Information Technology Infrastructure Library

o Venture Infotek has adapted the Information Technology Infrastructure Library (ITIL) set of

concepts and policies for managing Information Technology infrastructure, development andoperations

o ITIL provides detailed IT practices with comprehensive checklists, tasks and procedures that

Venture Infotek has tailored to its IT organization needso Following the ITIL guidelines and practices has enabled Venture Infotek to maintain and ensure

high standards of service availability and quality to its customers

Some of the other standards that are in the process of being implemented at Venture Infotek are:

PA DSS 1.2 for Payment Applications developed at Venture Infotek

ISO 27001 for the ISMS implementation at Venture Infotek

Venture Infotek merges end-to-end e-infrastructure, which integrates best of the breed external

products with internally developed middleware, into a unified core platform.

This core platform comprises of the following elements:

162,000 plus strong terminal network, located in 900 plus cities and towns across the countryand connected electronically to the regional hubs of Venture Infotek in 19 cities

A centralized 24X7 hosting and data processing facility, linked on-line into hubs and field

devices placed all over India, with international gateways

500 strong dedicated service force to maintain and service the e-infrastructure A suite of specialized software products, hosted within this e-Infrastructure

Customer Support Centers in 33 cities PAN India catering to each of the cities in which VI has

its terminal presence A back-office process outsourcing facility, with domain specific experts for different vertical

segments

A team of Consultants, with domain specialization in different vertical segments, along with a

Solution Testing/Development facility


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thereby minimizing the impact of technology and requirement changes. Deployments of this

architecture also apply to the choice of application platforms, enabling their customer to optimize

their current investments or in opting for the platform of their choice.

As the result of their best practices Venture Infotek has achieved fewer transaction failures and

reduced transaction time(from 6 sec to 3 sec/transaction).

Learning and Growth perspective:

As said by Mr. Piyush Khaitan, Managing Director, Venture Infotek on winning International

Asia Pacific Quality Organization Best in Class Award 2009 We are committed to Business

Excellence and Innovation, and have consistently invested in building a Quality culture within

our organization to help serve our customers better.

Venture Infotek is Championing the process of continual improvements in everything they

do. Rigorous internal quality audit is done thrice in a year to identify the improvement aspect of

the system.

Kaizen Initiative

Kaizen initiatives implemented across the organization

Around 100 kaizen projects completed in last 2 years in the areas of Quality, Cost, Delivery Recognition Award received from Confederation of Indian Industry (CII) for one of the top

ten best Projects in Kaizen Competition held in 2008.

Kaizen Training in Kaizen module is provided to all Employees Total No of kaizens completed in 2007-08 73 kaizens

No of kaizens completed in 2009 so far - 18 kaizens

Venture Infotek is implementing Six Sigma initiatives across the organization

Currently following Six Sigma resources are available in Venture Infotek

5 Black Belts 35 Green belts

45 Yellow Belts

Plan to create more Yellow Belts & Green belts at Senior & Middle Management levels

Other than that Venture Infotek will be the first third-party processor in India to provide highly

robust and scalable end-to-end Acquiring Management Services for Diners Club and Discover

cards in India.

NeoWorth, the merchant business division of Venture Infotek, not only offers multi-applicationPoint-of-Sale terminals to merchants, but also innovative products such as ExchangePlus, a

Dynamic Currency Conversion solution. Crossing the digital divide, Venture Grama is an


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initiative from Venture Infotek on developing cutting-edge technology and making it available to

the rural poor.

4.2) Specific linkages between processes and outcomes

(in both models)

Processes Outcomes

The recruitment process is designed in a

way that it hires only the best quality ofpeople who can deliver from the day they

join the company

This process provides new employees an

insight to the companys vision and valuesand how they will play their part in the

organization .

Training Process- Six sigma, Kaizen, 5Setc.

Innovative ideas and motivated employees

Low Employee Turnover

Updated Industry Knowledge

Knowledgeable pool of employees

Communication process- Good channel of

communication within and outside the

organization

Better understanding of customers

Better understanding of employees

Leads to innovation by inviting suggestions

Improves customer and employee

satisfaction

Research process

The reseach helps the leadership in making

accrate business decision. It also providesthe trends, statistics and a rich analysis of

the Payment Cards Industry in India.

It helps in designing expansion strategiesIts helps in getting the latest technology

and enhance customer experience

5) Similarities and difference between Manufacturing and Service organizations.

Similarities between Manufacturing and Services.

Demand management- Both Godrej and Venture Infotek have to forecast the demand, andmanage their production accordingly. Whether it is a service or the manufacturing unit, they

have to plan their resources according to the demand from the customer.

Customer relationship management- The customers are the pivot around which all the

processes of these companies are designed. The customers are equally important for both these

companies, hence they lay special emphasis on the customer satisfaction and customer

relationship management.


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Quality Management- Both the companies use ISO certification, six sigma, lean and kaizen to

enhance the quality of their product. Both the companies focused on Total Quality management.

Use of technology- Both the companies use the latest technology to enhance their customerexperience.

People factor - Both the companies consider people as its most important resource, and work

towards rewarding them and keeping them motivated.

Society- Both the companies take up several activities which help the society.

Godrej has 5 acres of land planted with natural vegetation which are known as the lungs ofMumbai. It also involves itself with several social activities as part of corporate social

responsibility.

At Venture Infotek the employees actively participate in the community projects and programs.

Many of their employees have volunteered for the Teach India Program. They also organizeblood donation camps.

Difference between manufacturing and services

1. Productivity is more easily measured in manufacturing operations than services.

In manufacturing locks, Godrej can easily measure the productivity of each individualand machine.

In the service industry it is difficult to measure the productivity due to the human factor

involved. People are involved in a variety of jobs. Hence identifying standard

productivity level is difficult.

2. Quality standards are more difficult to establish and product quality is more difficult toevaluate in service operations.

While making locks, it is easier to measure the quality of the locks.

In providing services, identifying the quality of the service is difficult.

3. Services involve more direct contact with the customer than manufacturing operations.

4. Manufacturing operations can increase and decrease finished goods inventory levels inresponse to change in customer demand patterns. There can be no inventory in the service

sector.

5. Productive operations are usually separated from consumption and consumers are remotein time and space from production while services are consumed as soon as they are

produced.


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6) Specific insights on BEM and BSC models

based on practical (Visit) experience.

The companies have been able to streamline their processes and enhance their productivity with

the help of these models. BEM has provided a framework to these companies which resulted in

continuous improvement in management and deployment of processes to engender wider use of

best practices.

On our visit to these companies we found how the leaders communicate the vision and mission

of the organization to the employees at various platforms (town hall meetings, reward and

recognition programmes etc.)

We also found that these companies considered people as their most important assets which

could decide the future of the organization. They pay special attention to employee development

and training and ensure that the processes in the organization are standardized to support the

company and people objective.

These companies have entered into partnership with vendors and other companies to enable the

processes in the direction of achieving organizational goal.

The companies have been able to achieve customer satisfaction through process

improvement( six sigma, kaizen, 5S etc.)

The companies have been involved in several social welfare activities as explained earlier.

On the basis of these results companies evaluate their processes and performance and

improve them to achieve greater efficiency and effectiveness in future.

Thus we were able to understand the various aspects of BEM and BSC through the practical

experience that we got through the companies we visited. Both the companies are following only

BEM model still the insights are more or less same for the BSC.

7) Suggestions for future visits.


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Since we have limited time to spend with the company employees, understanding the

models and their processes, so we should get 1 extra day to spend with the manufacturing

unit.

On a particular NID students should visit nearby industry to get a real time experience of

how an industry actually works.

Before going to the industrial visit, students should have a mock question answer session

with faculty.

Every individual group going to different industries for industrial integration should be

well prepared with the corporate presentation ,which will help in promoting our college.

industrial integration

Documents

Transcript of industrial integration