I am taking the liberty of sharing a story with you about problems faced by the manufacturing sector, perticularly SMEs…and THE SOLUTION.
Sunil Kapoor was deeply worried. He owned Kapoor Engineering Works (KEW) in Faridabad which started as a Forging unit 23 years ago and gradually expanded into machining. Today it supplied Gears, Shafts & Housings to leading Farm Equipment manufacturers all over India.
Sunil was deeply worried because today, 19th April, marked 4 weeks of the lockdown because of the Covid 19 pandemic. And it would be another 2 weeks before he could open his unit…maybe?
As he paced restlessly in the balcony of his flat in Northampton Enclave, his mind was bursting with thoughts about how he would restart production. His HR Manager & Plant Head had apprised him last week that despite providing financial assistance more than the general norm, about 25% of his workforce had left for their native places. These included some of his most experienced CNC Operators, Supervisors & Quality Inspectors. These people were the ‘lifeline’ of his factory, ensuring desired output and acceptable quality. How would he produce required quantity, and more importantly QUALITY without these people. Two month ago, in a Vendor meet at Hercules Tractors, his biggest customer, they were informed that in case any defective part reached assembly, vendor would be put in Red Category with immediate 15% cut in share of business. In addition, Debit Note would be twice the earlier amount.
Sunil groaned loudly without realizing that someone was watching him intently from the adjacent Balcony.
It was his neighbour Mr. RK Sharma, a senior advisor to BNNA (Bharat Nav Nirman Aayog) a Government-Academia-Business partnership to infuse new technology to improve performance of SME Industries.
” Sunil.. What is the matter? I hope everyone OK in the family”
” Namaste Sharma Ji. All well on health front. It is my factory which in ICU and will have to be put on ventilator soon. Apart from money loss, and working capital shortage, I am most worried about how I will run my operations with many of my most experienced & skilled workmen going to their hometowns, perhaps never to return.”
” Sunil, I know you and thousands of SMEs like you are in deep, deep trouble. Without sounding over-confident, let me tell you that there is a solution to your problems, a long term solution. Tell me what was your average Net profit in last two years. ”
” Five Percent”
” Then you can easily Double it because without entering your factory I can tell you that Double of your profit is going down the drain. I call this Easily Preventable Loss (EPL) which in case of 90% of SMEs, is more than Double their net profit. Even if you stop 50% of the EPL, your net profit Doubles. You can do this…and in such a manner that you don’t need to wait for Skilled Operator Ram Prasad and Inspector Ajaib Singh to come back. In fact if they come back, you will put them in some other role”
” Sharma Ji! I am like your Son. I am really in trouble, and you are cracking jokes”
” Beta. I am serious. Listen carefully. Take a chair”. Both sat down on chairs in their respective balconies.
” Sunil, we all know what three of our holy rivers, Ganga, Yamuna & Saraswati symbolize. I will change their meaning slightly to make the philosophy apply to manufacturing industry, in a way in which you can relate to.”
“Yamuna is your infrastructure, your machines and your basic workforce”
” Ganga is the VITAL Life Force of your organization. What keeps it moving forward against all obstacles. It is YOU and your core team”
” Normally, confluence (Sangam) of Ganga & Yamuna in a manufacturing organization are enough to make it run successfully and nourish all life along the banks, i.e. employees, suppliers, etc.”
” However, in case of HUGE calamities, the landscape changes. These calamities are like massive earthquakes. In such times, you need the third holy river to sustain your organization, you need Saraswati!”
Sunil had initially listened restlessly, out of regard for his senior neighbour. Slowly, his mind was calming and he could sense that something very deep & profound was being told. He now switched off his mobile phone listened intently.
“Saraswati in this case is Deep Knowledge that has been flowing unknown to you beneath the surface. Now you need to summon it to the surface and let it ‘wash over’ your organization and your people. This modern Saraswati is called ‘Industry 4.0’ and it has the power to transform your company, double your profits, eliminate your dependence of skilled workmen, increase your share of business with your customers.. And give you peace of mind, above all!”
“Sharma Ji, this sounds like a dream. I would do anything for long term prosperity & peace of mind. Please tell me how do I learn about this modern Saraswati and apply the learning in my organization”
” Sunil, BNNA is partnering with a company Marshall Machines, based in the ‘Land of Five Rivers’ and they have mastered this knowledge. To make things easy & affordable for SMEs, they offer some ‘Low Hanging Fruits of Industry 4.0’. I suggest you attend their ‘Pravatchan’ which in these modern times are called Webinars’. You and your team should understand the basic concepts and then quickly start a few Pilot programmes, say one each in Forging shop, CNC Machining & Grinding. You will see results within one month. After that, deploy these technologies in your entire plant. The cost is nothing compared to returns. And the bonus is that they also offer Affordable Automation that you can start implementing side by side.”
Sunil felt as if a weight had been lifted from his shoulders. Whatever Sharma Ji had explained made perfect sense. He felt HOPE…and excitement. He had always been a fighter and had started business with Rs. 30,000/- 23 years ago and succeeded against all odds.. He would do it….Now. He thanked Sharma Ji and switched on his mobile to search for information about Marshall and its Webinars.
