Manoj Kumar Trivedi

Founder | Director | Business Mentor | Implementer, iGlobal Research and Analytics

8:22 PM, 8th May 2018

My journey through Operational Excellence and way forward


                                                         Manoj Kumar Trivedi

                                          Founder Director and Business Mentor

                                         iGlobal Research and Analytics

Harnessing through closed and monopolistic economy for over a decade, sudden change through open and competitive market had been detrimental. However sailing through change across four decades my career through learning, implementation and mentoring has been most determining. With no means of guidance in early days of 1991 , businesses were in a fix while competing with internationalgiants & MNCs.

With a determination to survive in highly competitve environment, organisations were fighting with sole agenda of reducing cost.

Except for focussing on operational excellence- productivity analysis and efficiency, various strategies were adopted, like reducing manpower, curtailing salaries and benefits, withdrawing facilities, office stationery cut etc etc. This lead to compromising with expereince and skill with severe de-motivating factor and fear. With least expereince and skill, next generation were given the lead.

This was the begining of skill gap intercepted through third industrial revolution of computerisation and automation. 

Manufacturing set up has been through three revolutions earlier
but all were technical in nature. There was no change in business skill or the way we do business. Industries are even now struggling through 19th/20th century skills and business practice. Technical advancement has never met with business practice and skill advancement leading to huge gap.

Even today, for reasons industries do no tend to focus on operational excellence - productivity analysis and increasing efficiency. Talents are not preferred to arm with weapon of knowledge through up gradation of business skill, but are preferred to blamed and fired.

Spoken to several Business Leaders, C-Suit level Executives and HODs of many large scale industries. Suprisingly, they appear to have ignorant towards ongoing industrial revolution and business disruption. Without undertaking any responsibility, accountability and risk they prefer the way and the business is. Being a baby boomer and contrary to myth created that Babyboomers are fixed head, I proved to be more curious and visionary open to development than present day leadership.

Business Leaders and CEOs have limited their action leveraging finance and customer analytics. Even though many CEOs  have actively explored alternative metrics for measuring the longterm health of their companies and the communities they serve, beyond just earnings or stock price, boards qualitative questions remain unanswered: What about talent re-skilling and knowledge upgradation? 

Various alternative matrix for measuring the long term health of their companies and improve underperformance have failed. Modern theories of firm strategy have also failed to integrate with standard models and analytical tools to improve performance. Companies are adopting different elements of the revolution in diverse ways, some gingerly, some in a sure-footed manner.However, it has never been deemed fit to leverage operation, a power house that generates inherent profit.

Business transformation has to represent a fundamental and risk laden reboot of a company with the goal of achieving a dramatic improvement in performance and altering its future trajectory. Business transformation cannot be limited to conventional norms of selective improvement. While altering future trajectory dramatic improvement in performance has to be acheived through series of incremental changes. 

Dynamics of Supply Chain and Value Chain- Procurement, Manufacturing and Logistics was a boon to industry outlining scope for operational excellence, it was largely ignored and misinterpreted to limit within Logistics function. No economic value was deemed fit to add across business verticals and horizontals integrating functions.

When measured in economic scale, organizations have not been able to resolve underperformance conundrum which still haunts CEOs & Business Leaders: 

  • Lot of savings made across functions put on the table, clocks-off, leaving Business Leaders wonder where all the money gone!!!
  • Why profit does not commensurate change in sales?
  • Why profit/margin diminishes with increase in production? How to deal with it?
  • When profit is put in economic scale of value, why performance and achievement is not the same to previous year?
  • Why Total Manufacturing Cost not remain the same across days, weeks, months & years?
Many organisations today are struggling with Fourth Industrial Revolution. My interaction with many leaders/HODs across functions and industries reveal many are not even aware of the change, or even requirement of the change.

With given characteristic of IR 4.0 that requires Economic Value Engineering through productivity analysis and efficiency, inter-alia, Operational Excellence, most of the organizations prefer to wait and watch, or prefer to reman ignorant.

Cost reduction and optimization is not the sole agenda of IR 4.0, instead it is inclined to change social life empowering society bringing huge opportunity for organic growth of society, organizations and employee. Reviving Industrial democracy for creativity, innovation and contribution by each employee is the way forward shunning objective management principles.

However, IR 4.0 is loaded with default provision of cost reduction through Labor Cost, Predictive Maintenance and Energy Management. This is set to create new normal with huge  competition.Under new normal, economic reasoning skill  is mandatory for capturing real time relevant economic data out of pool of data created by machines, real time economic analysis and quick decision at execution level building core competency economic model. Robots, IoT etc that functions within set of predetermined parameters have no mind or consciousness to frame business and manufacturing strategies. They are unable to plan,oversee resource behavior and determine cost, price & profit.

To beat the competition under new standard, organisations will have to work hard and look beyond new normal with Economic Value Engineering. Leveraging operation, reading operational economic fine prints will be the essence to reduce cost and stay relevant.

Furthermore, industries cannot ignore backward integration of value chain. Because 95-99% of vendor master of any organisation constitutes MSMEs who have no occassion either to hire costly qualified talents,or, invest in smart factory. But have equal right to be participative through competetion and growth.

Imagine, if each vendor of the vendor master could reduce at least 5% of the cost of supplies, what would be the impact on profitability and growth of large scale industries.

Productivity analysis and increased operational efficiency through Economic Value Engineering is crucial under new normal. Every industry will have to micromanage their business neutralizing macro economic implications at micro level, be it small and big.

Report says, acute demand and dearth of talent with AI related solutions has lead to Salary hike to the tune of about 0.2-0.3 Millions US $ / INR 2-3 Crores annually. Can any industry survive with such a high employment cost? Better re-skill your existing talents to remain relevant in business.

Re-skilling the talents and upholding value of the value chain,both within the organizations and that of business partners is mandatory and comes at virtual no cost.

Taking backward integration route, being second to none, we undertake the project of re-skilling the talents, both of large industries, their ancilliaries and Vendors for holistic impact.

Being commited to focus on SMEs development, we started Telephonic/Skype mentorship program of very short duration as against costly full two days discourse.  Thanks to the huge response by SME sector to acquire 21st Century Business perspective that represents their  Curiousity, Determination, strong desire for Insights and Deep Engagement for being competitive taking their organisation to whole new level of sustainable paradigm.  

Wonder sooner than later, SMEs with their degree of seriousness and determination, like Patanjali, these sector may take over Large Scale industries given their saturation and lackadaisical approach.

Write to us with your operational problem for customized guidance at [email protected],or, call on us at (91) 9433013863 for Telephonic /Skype session.


Debashis Senapati

great insights

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