Monday, April 10, 2017

Low cost innovation case LASER disposable Razors.

I was taken aback at  this offer from UK based "Laser" disposable Razors in India.

Great features are offered in this case as detailed below..

1. Triple bladed razor, 
2. Tilting facility to suit the curvature of your fac
3. Firm grip - anti slip handle
4. Top lubricating smooth strip - with aloe and Vitamin E to initially soothe and condition the skin, prior to blade movement
5. Complex blade tilt support mechanism ..
6. Great cost innovation
7. No more cuts and scars on face !

All this for just Rs 10/- per razor which can last at least for 5 - 10 shaves. (have to confirm... . )

A pack of ten for Rs 100/-. US $1.40  .. 

Mostly everybody shirk when the discussion of cost innovation comes as some poorly informed and prejudiced people feel that cost innovation works only in poor countries like India and China. But it is a fact the world needs to agree, that these are the two countries that are going to conquer the world with their cost conscious innovation policies. If the advanced countries still feel innovation in features is more important than innovation on costs, they will be proved wrong very soon.

The personal toiletry section in Indian bathrooms is an area which is seeing loads of innovations of late. Right from single blade fixed razors which causes many cuts and nicks on the cheeks to the five blade Gillete MACH3 razors with tiltable blades, the field has been innovating at a frenetic pace.

Feature and cost Innovation at its peak !!

george..

Sunday, April 09, 2017

Pal's sudden service in Tennesse - what makes it tick ??

Within 80 miles of Kingsport Tennesse, are 26 locations of a super fast fast food outlet spread out in Tennesse and Virginia . Pal's fast food outlet ..The average time this fast food outlet takes to serve its customers is just 18 secs at a drive in counter and 12 seconds at a hand in counter. By the time you turn around the building and arrive at the other window, the order is ready for service.

This is Pal's super service. It is no small ordinary setup. It is the first restaurant company to have been awarded in 2001 the Malcolm Baldridge Quality Award. Pal is known for its speed and accuracy. They make a mistake only once in 3600 orders ensuring great customer loyalty.

There is very less employee turnaround in this company, in all of 33 years of its history only 4 General managers at senior level have ever left the company, 1.4 percent at the Assistant Manager level and almost one third the industry average at the front office stage.

It makes a great learning to find how Pal's has been able to retain its employees. What surprises everyone is the great emphasis the company lays on selecting the right employees with attitude and then continuously training the,. Even though there are 1020 workers in the company's 26 locations, 90% of whom are part-time and 40% between the ages 16 and 18.

Lesson 1  - Hire for attitude and train for skills - a tough 60 point psychometric survey is able to catch the right candidate with the attitude and skills

Lesson 2 - Give employees constant opportunities for improvement - train the employees continuously, new employees are given upto 120 hours of on-the-job-training before given individual responsibilities. In every shift, in every location on every day two to four randomly selected employees are given a quiz to help re-certify them to be fit to do the job they are doing at that point of time, if they fail, they are taken off and given training till they qualify. On an average an employee can expect upto 2 to 3 pop quizzes in a month. This is an indication of the level of training and retraining the company gives to its employees so that they never err and are able to deliver the best standardised service to the customers.

Lesson 3 - Leaders have to be great teachers. All leaders at Pal are expected to spend at least 10% of their time teaching, having to identify a target subject and a target student every day.

Pal's commitment to hiring smart and teaching continuously their hires, makes them very responsible to their customers helping maintain great standards of service to their customers.

This is a great example of exemplary customer service of the best quality delivered in the shortest time. Click here for the video ..

george..

Ref : 1. Bill Taylor, How one fast food chain keeps its turnover rates absurdly low, HBR, April 2017.
         2. www.palsweb.com, last accessed 9 April 2017.

Saturday, April 08, 2017

The changing global retailing landscape, some pointed observations ..

Walmart is a global retailing giant with operations in 28 countries. walmart is a common name across the world for students who have studied supply chain management who essentially have to take a case on their very efficient physical supply chain management practices, cross docking etc. Walmart is also a world leader in sustainability initiatives and efforts to reduce carbon footprint for the past fifteen years. This article is from the Walmart perspective to understand whether being socially alert and environmentally conscious (click here for the Walmart Global Resposnsibility (Sustainability) Report of 2016) will be appreciated by the global customers in the long run ?

Of late with the onset of electronic commerce there are a lot of apprehensions being raised regarding the ability of global retailers to establish themselves in the global scene. Has Walmart been successful in trying to catch up with the global leaders Alibaba and Amazon ? Are these fears unfounded or can Walmart, the physical retailer giant weather all these small storms and take on the retailing world yet again ?

As per the Fortune 500 list 2016, Walmart retains the top spot for the third year in succession with $482 billion annual revenue. Alibaba of China has been trying to catch up with the world's largest retailer and also the world's largest business conglomerate in terms of volume. For comparison, India's largest business conglomerate Tata Sons, the body that controls all Tata companies makes a turnover of just $103 billion a year, including their Jaguar LandRover operations, TCS etc.  Alibaba, the largest Chinese retailer is mainly B2B and B2C as is Walmart. Alibaba gets almost 100% of its business over the Internet, while Walmart gets app 3% of its sales over the Internet, about $13.7 billion out of $473 billion in 2016.

It will be of interest to understand the various steps global retailers take to establish themselves in the physical and online retail world. What are the changing features of the global retailing landscape ? Let us try to analyse some of them here.

1. Retailing modes : Except for Alibaba, both Walmart and Amazon has dual models of retailing. Walmart's dual model started with physical retail and then moved to combination of online and physical retail, the same as what Amazon is offering. The Amazon's dual model started with the online model and then moved to a combination of online and physical model. As of my understanding, only the last mile delivery is what is made possible with the physical model of distribution for Amazon.

2. Concentration in local markets : While Walmart and Amazon aims for global markets, Alibaba by the sheer size of Chinese market, gets almost 70% of its online business from China alone. Even though Walmart has operations in 28 countries around the world, there is a trend within Walmart to concentrate more in the United States as they feel US still offers the best market in the world for Walmart. This may not be true for Alibaba or Amazon.

3. Organic or inorganic growth : Walmart's belief in inorganic acquisition of online retailer www.jet.com and retaining it that way was based on a realisation that building a new online platform from scratch would be a costly and time consuming proposition for Walmart. Building up on somebody who is already there makes economic sense too. It has helped it to retain its Jet.com clientele and improve on its online offering too. Jet.com is a good platform from which Walmart can think of expanding in a big way. 

4. Rapid growth pace of global retailing : The rapid pace at which customers around the world are gobbling more and more products in a materialistic world which would make their lives easier and simpler plays a great role in the recent global trend to embrace retailing in a big way. The pace of change happening in a fast paced retail organisation is hourly from the earlier yearly schedules. Retail organisations need to be really on top of changes and adapt to changes fast in order to be able to respond to customer needs better.

5. The growth of the hybrid model : online grocery business is a fast paced one where customers get to select from a wide variety of items offline and cannot wait for days to take delivery. They do not mind having to go to a nearby physical store or warehouse to take delivery.  Amazon and Walmart depend on the hybrid model of retailing in a big way.

6. Stress on environment sustainability efforts : In the physical retailing world, Walmart is always be known as a company which has stood for good practices like ensuring environmental sustainability of its business operations, be it buying vegetables or harvesting fish from the seas and ensuring low carbon footprint of its operations. The issue which Walmart would face in the online world, whether it matters if one is environmentally friendly (with long-term benefits) or not as much as one is customer friendly (short-term benefits).

7. Effective monitoring of sustainability efforts : Another very pertinent question If so, who will reliably monitor these claims of environment sustainability efforts by these three giant retailers of the world ? Can Alibaba or Amazon claim to be as environmentally responsive as Walmart which has been regularly publishing its sustainability efforts in a big way ?

8. Public acceptance of sustainability efforts over short-term customer convenience : An interesting question the world is waiting for an answer is will people appreciate the companies that work for the environment too rather than just for the customer ?

9. Upskilling employees : The retailing world is growing at a fast pace and it has become essential for decision makers not only to concentrate on the markets but also on upskilling the employees.

10. Exacting employee requirements : As stores get more on the cloud and physical stores become just distribution centres, the worker at the store needs to be able to handle and operate handheld devices, analyse data, ask questions, receive data and so on. The workers need to be more tech savy than of past years. Digital natives (tech savy) citizens or the millennials need to be part of the management team at any organisation that is planning to go ahead and lead the world. These digital natives will help the organisation handle disruption much better than older workers.

Here are some questions worth pondering for Indian retailers and people interested in Indian retailing.
 a. In India, potentially the largest retail market in the world in another thirty years, will the initial Walmart strategy of joining hands with Airtel and presently going ahead alone fructify ?
b. Will Alibaba strategy of entering the Indian markets through Paytm be successful ?
c. Should TESCO look for a more serious player than Tata to establish itself in the Indian market ?
The author wishes to thank Harvard Business Review for some of the content for this article.

George Easaw
Ref : 1. "We need people to lean into the future" - an interview of Walmart CEO Doug Macmillon with Adi Ignatius, Exe-editor, HBR, April 2017

Friday, April 07, 2017

Trump pushes his armed forces to combat mode yet again !!

It was not long back, about sixteen years ago in 2001, Al Queda terrorists, funded and grown by US, attacked the World Trade Centre in New York. George Bush Jr. in return got the US forces to attack Afghanistan, Iraq and Syria (against IS). In the process lasting another eight years, US spent extra 3-4  trillion dollars, not to mention of loss of lives on both sides. Other than cultivate more enemies for US citizens across the world and make them more security conscious, more xenophobic, this armed aggression by US on the said states had no other benefit. Let us not mention about who cultivated Al-Queda with resources to fight Soviet occupation of Afghanistan and so on. The turnaround of Islamic militants to fight US interests around the world has been the most significant and important tactical impact of the fallout of the cold war.

Obstinate vs. amenable (war mongering vs peace loving..), pic courtesy CNN
Obama took over from Bush Jr and the world coulkd see the difference. Even though US did try its arm twisting tactics with some of its partners, enemies etc, never did it go out of the way. Obama kept US soldiers back in US and controlled US offensive on the rest of the world, used mediation over brute force and military might to control disputes between nations.  

Now the self-styled global policeman Trump, restarts US misadventure on the rest of the world with attacks on Syria .. One of the greatest motivational forces for the US and Russia to interfere in other parts of the world is the fact that nobody would care to fly right across half the globe to attack them in return.  If Syria is left to itself, with no external interference, it is something which they can take care of themselves. That may be difficult ln the present situation given that terrorist groups like ISIS, promoted and nurtured by US have now turned against it and is hurting Syria and Iraq in a big way. More and more external interference, time and again, from non-stakeholders is only helping complicate the Middle East crisis beyond redemption.

In the meantime, China and India exchange glances and heave a sigh of relief. They can focus now peacefully on their economic, infrastructural  and social growth. US will fight on their behalf ! Trump is a blockhead not to understand that this is the last chance for US to lead the world peacefully. China and India are just waiting to trash United States and Russia to the dustbin of history for all the sins of commission and omission they have subjected the rest of the world to.

It has also set the stage unwillingly for terrorists from other parts of the world to plan to refocus their attacks on the self-styled global policing nation of the world.

When a nation loses its global focus and becomes more inward-looking, to further it's selfish, grandiose plans, such events happen. Terrorist attacks, blood flow, suspicions, extra security, slow growth etc ..
The latest Syrian attacks are once again a reminder that unlike Obama, Trump lacking intelligence and patience can be drawn or pushed to military confrontation at the drop of a hat ..
What the erratic flip-floppery of Trump’s foreign policy really means is that America’s foes can easily manipulate the Trump administration into greater and greater military quagmires. Guardian, 7 April, 2017.

george..

Wednesday, April 05, 2017

Religious vanity ..

( a shared doc..)

In an ancient temple, a number of pigeons lived happily on roof top.

 When the renovation of the temple began for the annual temple feast the pigeons relocated themselves to a Church nearby. 

The existing pigeons in the Church accommodated the new comers very well.

Christmas was nearing and the Church was given a facelift, All the pigeons had to move out and look for another place. 

They were fortunate to find a place in a Mosque nearby, The pigeons in the Mosque welcomed them happily. 

It was Ramadan time and the Mosque was repainted, All the pigeons now came to the same ancient temple. 

One day the pigeons on top found some communal clashes below in a market square. 

The baby pigeon asked the mother pigeon 
"Who are these people ?

The mother replied; they are "Human beings". 

The baby asked, 
But why are they fighting with each other...?

The mother said "These human beings going to temple are called 'Hindus' and the people going to Church are called 'Christians' and the people going to Mosque are called 'Muslims'. 

The Baby pigeon asked, "Why is it so? When we were in the Temple we were called Pigeons, when we were in the church we were called Pigeons and when we were in the Mosque, we were called Pigeons. Similarly they should be called just 'Human beings' wherever they go"?

The mother Pigeon said, 
'You and me and our Pigeon friends have experienced God and that's why we are living here in a highly elevated place peacefully. 

These people are yet to experience God. 

Hence they are living below us and fighting and killing each other.

Many of us Should Have Thinking as Pigeons 😊 but in spite of all the blessings and grace we have received, we act as human beings !!

-------------------------------------------------------------------

The problem with the world is that we are led by "false" spiritual leaders who are very selfish and cannot think out of the box, are intolerant and are so heartless. These spiritual leaders instead of making the people think in broader terms , make them think very narrowly. They are able to manipulate and control the dumb minded believers for their selfish needs, like building bigger and bigger religious establishments, more and more religious establishments so that the spiritual leaders and their cronies can continue to live a life of luxury and exploit the people of the world.

And we the followers give ourselves up to being exploited by these spiritual leaders.

Beware the "false" spiritual leaders, the crooks who come to you in the name of God, most of them do not wish to serve humanity, instead want to exploit the people for their personal needs.

Let us be like the pigeons, not let ourselves be fooled by the leaders, fighting and killing each other.

Our spiritual leaders would definitely go unemployed if we follow the commandments to live peacefully on earth with every other living being, because we are all from that Supreme power called God, the God which these selfish spiritual leaders have apportioned to themselves for serving their personal and selfish needs.

How shameful that our spiritual leaders cutting across religions are getting so cunning and are not able to get out of their limited mindset and crooked thinking.

george..

Tuesday, April 04, 2017

HDFC and SBI, will they stick to a two way contract ??


Will SBI and HDFC stick to a 2 way contract or try to be unilateral and try to enforce a unilateral contract ? Sadly, since we are not aware of the legal provisions that could be invoked and enforced, we may out of ignorance and stupidity fall for these idiotic banks and their unilateral ways of getting things done.. Let us for the time being also forget that it is our money that is lying with these banks ..

Today I went to 2 HDFC ATMs in Koramangala, Bangalore and both did not have any money. This can happen to anybody anywhere in the country.

If there is no min balance in my account, HDFC can take Rs 250/-. Why not the other way round ? If the ATM does not have minimum balance, is HDFC ready to compensate me with Rs. 250/- two times, since I checked in 2 ATM machines ?

Spread this message.  Let's raise our voice against banks. Stop customer unfriendly banks like SBI, HDFC etc. fleecing customers. !!

George ..

PS : Pursuant to this on Thursday, 5 th April, I went to two ATMs of HDFC in Koramangala, and sad to say, the bank which I was having high hopes as a real customer friendly bank is out there to fleece me yet again .. They are adamant on punishing their customers and were locked today too. Can I expect them to be manly and customer friendly and pay me Rs 1000/- for the 4 disappointing and disillusioned visits to the branch ? Will I be yet again get disenchanted and regret my association with HDFC Bank as are the thousands of other HDFC and SBI customers ?

SBI may have become among the top 50 Banks of the world, but let them not forget it was the customers who made them so big . If they forget the customers and remain ungrateful to them, the fall will be great and pathetic for SBI, this is just a small warning..

Saturday, April 01, 2017

Toyota Way at Toyota Kirloskar plant at Bidadi, Bangalore, India.

What makes Toyota the global top automobile brand ? In 2016 Toyota's 10.2 million automobiles automobile production globally was just slightly behind and very close to Volkswagen's 10.3 million automobiles. (click here for the Forbes Report) It is their unique production philosophy and outlook on life which makes Toyota click.

This article is a writeup on Toyota's Indian operations and how Toyota is planning to make the Bidadi plant (click here for the video on how Toyota Etios is being made) as one of it's top production sites in the world.

Toyota Automobiles, Japan started manufacturing operations in India as a collaborative effort with Kirloskar in 1997 in India in Bidadi, near Bangalore, Karnataka. The first vehicle of the  Qualis brand, a Multi-Use-Vehicle (MUV), rolled out by 2000. Qualis was a runaway success for Toyota in India. It was so popular, that this initial high quality manufacturing pitch prepared the right environment and acceptance among Indians of Toyota quality and great Toyota vehicles to be introduced in India.

Even though Qualis production was stopped in 2005, the vehicle is still seen on Indian roads twelve years after its withdrawal from Indian markets and introduction elsewhere in the world. The initial Qualis success saw the introduction of many Toyota brands like Innova, Corolla, Camry, Fortuner and Toyota's special product for the Indian market, Etios and Etios Liva.

The following steps will demonstrate the commitment by the management of Toyota Japan through this plant of Toyota in India to ensure high standards of environmental consciousness practiced in the plant. As claimed by Toyota Bidadi, this is one of the most advanced plants of Toyota in the world and includes great environmental sustainability and solar energy initiatives in the plant. Toyota Kirloskar Motors (TKM) Bidadi, India produces only 3,20,000 cars annually, producing 3 % of its global production.

First let us start with some of the great environmental and social steps initiated by Toyota which have been initiated in India, along with some of the other production sites in Japan. 

Monozukiri - manufacturing in harmony with the environment has been the guiding light behind Toyota's environmental sustainability initiatives. 

Environmental Sustainability initiatives :

1. Recycling of Water  - the water for daily consumption in the canteen, gardens, wash rooms, etc. are all recycled with the help of a water recycling plant that recycles 60% of all treated effluent. Only water for cooking and drinking is taken from outside. High volume Rainwater harvesting plant of 25,000 cubic metres captures rainwater using it for plant needs for 4 months and supplements the efforts at conserving use of water. As of 2018-19. 88% of total demand is met from Rainwater harvesting.

2. Minimise waste and implementation of 5S - the basic philosophy of lean is to minimise waste and orderliness to the shopfloor.  Minimising the eight wastes in the plant is Toyota motto (as is the guiding principle of Toyota philosophy, presently renamed as Lean manufacturing)

3. Transition to solar energy - a 3 MW solar plant now meets less than 50% of the power needs in the plant which Toyota is planning to increase to meet 50% of the plant energy needs by 2020 and is working to meet 100% energy needs by solar energy by 2035. As of 2018-19, 89% of energy demand in the plant is met from renewable sources.

A view of final assembly line, courtesy Malayala Manorama.
4. Solar sludge drying for drying and safe disposal of hazardous wastes produced inside the plant, based on the superior co-processing technology adopted by major corporations across the world has helped Toyota Kirloskar Motors (TKM) reduce its carbon footprint

5. Reducing CO2 emissions - Using route optimisation, the supply of spare parts to the various distribution centres across the country using LCVs having only 20% space utilisation was shifted to smaller vehicles ensuring 80% space utilisation. This helped TKM save 10.3 T of CO2 emission and saving INR 3,00,000 a year.

6. The bio-gasifier plant inside the factory premises handles daily 1.5 tonnes of food waste generated in the TKM canteen and converts it into 100-120 cu.m of biogas, a non-polluting renewable source of energy, saving 40-50 kg of LPG consumption a day and generating app 140 kg of solid manure daily used in the gardens..

7. Use of racks from suppliers while supplying spare parts reduces packaging.- Toyota may the first in the country to use this unique style of taking delivery of items from suppliers. Usually spare parts come in  paper or plastic packaging and once the parts are used in the assembly the packing material is waste that needs to be properly reused, recycled or destroyed. Toyota has come up with the unique method where by the suppliers are sent spare parts racks by Toyota which are filled by the suppliers and sent to Toyota. After the spare parts are used, these empty racks are again sent to the suppliers who fill them and return it to Toyota with new spare parts. The cycle continues saving large amounts of waste packing materials.

8. Toyota is the first company in India to use water based paints the company was the first to use water based paint, even though it was costlier, it is environment friendly. Volatile organic compounds (VOC) that float around in the paint shop as the paint solvent vapourises, is a major health hazard. Water based paints are a great initiative from Toyota to reduce VOC emissions and build healthy workplaces.

9. Planting 2.5 lakh saplings inside the 432 acres Bidadi campus of TKM has helped bring back green cover and oxygen.

10. Toyota's great emphasis on ensuring safety - The customary Toyota hand gestures (pointing the right hand fingers sequentially to the front, left and right sides, ensuring there are no vehicles or people coming from any of these directions, before crossing any road, is a classical exercise which would catch the attention of any visitor to Toyota premises). In fact, visitors at the plant are given brief instructions on the safety precautions practiced on the shop floor, before they are allowed to visit the shop floor. Even while walking along corridors, visitors are given instructions to keep themselves to the left side. Toyota corridors are safe passageways for employees..
All Toyota cars came with dual air bags across all models, with 100 per cent anti-lock braking system and was awarded four star in the Global NCAP crash test.

Social initiatives : 

11. Gurukul, the learning centre. All of the employees who join Toyota are mostly unaware of the Toyota philosophy (or lean thinking). They are compulsorily made to take a 5 day primer course at the Gurukul. The Gurukul also gives training to the employees on maintaining good health and teaches safety precautions while inside the plant.

12. Toyota Technical Training Institute (TTTI) - established in 2007 as part of Toyota's Corporate Soial Responsibility Initiative (CSR) about 40 selected students after their 10th or 12th are given intense training for almost three years before they are inducted into the Toyota production line.

The unique nature in which Toyota differs from the rest oif the manufacturing world is the way in which they plan their manufacturing. While usually organisations make a demand forecast and try to plan to meet this demand, Toyota is one of the few companies in the world that manufactures to meet customer demand.

Takt time - production according to customer demand. Even though the Toyota assembly line is capable of a minimum takt time of 67 secs (ie. in a shift the maximum production possible from the line working 480 minutes in a shift is (480 x 60) / 67 = 430 units) depending on customer demand this varies. Toyota produces only to meet actual customer demand, not future potential customer demand. Presently the takt time is 465 seconds on the second advanced plant, ie. 62 units of automobiles of different brands a shift.

Were it not for the innovative manufacturing style initiated by Toyota, we would not have been blessed with some of the finest quality cars in the world today. As a tribute to the founding fathers of Toyaota a Visit to Toyota Hall is a must for all visitors visiting Toyota plant anywhere in the world. All visitors are explained the Toyota way of life in the Toyota Hall where every visitor gets to see an exhibition of pictures that highlight the birth of the company in Japan in 1939, its founders and key leaders, besides a power point presentation of the Toyota highlights and Toyota Production. 


Click for my earlier writings on Toyota , Ten points to some great learning and the other one on Lean Manufacturing at Toyota Bidadi ..

While the first assembly line of Toyota assembles the older versions of Fortuner, Innova, Camry etc, the modern second assembly line assembles Etios, Liva and Corolla Altis. Corolla is by the way, the automobile model which has sold almost 37 million numbers throughout the world and is the largest selling automobile model in the world from any auto manufacturer.

Bidadi plant of Toyota has an annual capacity of assembling 3,20,000 vehicles, though it is still  pain as Toyota still imports the engine, power transmission and gear box from plants around the world as they are not yet sure whether the workforce in India would be able to match up with the high standards of quality and excellence attained by Toyota around the world. This also partly explains why, after importing automobile components taking up almost 70% value of the final automobile, Toyota is not able to gets its cars on Indian roads at less than Rs 7 lakhs on-road price, while other low end Japanese, German, Korean and French manufacturers like Honda, Suzuki, Volkswagen, Renault, Hyundai are able to offer cars at less than or near about Rs 5 lakhs.

Click here for the link in Malayalam from the Malayalam newspaper Malayala Manorama, an excellent piece. Having been associated with Toyota Bidadi and teaching Lean Manufacturing at a prominent University In  Bangalore, I can say that this is really a great article on the Toyota Way of Lean Manufacturing. In the article, you find lean is not a just a manufacturing philosophy for Toyota, it is a life philosophy.

Toyota having built their most advanced automobile plant in India also speaks volumes of the importance Toyota attaches to this great and most ancient economy of the East, which has already pushed Japan to the fourth position and is the third largest economy of the world.

References : 
1. Toyota Kirloskar takes steps to reduce vehicle CO2 emissions, The Hindu, Business, 28 Dec 2016 
PS - 1. the author teaches Lean Manufacturing at Alliance University, Bangalore, India. He can be reached at geasaw@gmail.com 
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