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THE JOURNAL OF CONSULTANCY DEVELOPMENT CENTRE

Volume - 11 Issue - 2

CONSULTANCY DEVELOPMENT CENTRE

July 2017

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LTING

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CONTENTSAn Educational Institute Leaning on Lean Thinking 1G. Narayanamurthy, A. Gurumurthy & R. Chockalingam

Application of Lean Concepts in a Process Industry – Case Study of Performance 14 Improvement through Lean in Bulk Drug ManufacturingGanesh Mahadevan

Understanding Lean Approach to Organizational Transformation for Excellence 24Ashok Puri

Failures in Steel Structures - A Collection of Case Studies 36Surovi Ganguly

Prioritization of Financial Performance Determinants: An Empirical Study on SMEs of 46 Rajasthan State based on AHP ApproachDr. Priyanka Jain, Dr. Vishal Vyas & Dr. Ankur Roy

Forensic Geotechnical Investigations of a Misaligned RE Wall in a Highway Section 62Dr. T.G. Sitharam & Dr. Amarnath Hegde

Energy Performance Index (EPI) for Different Types of Buildings in an Academic 72 Campus: IIT Kharagpur, India as a Case StudyDr. Sudha Goel, Kruttika Apshankar-Kher & Arpit Malav

Menthol Mint: An Economically Important Aromatic Crop for Raising 83 Farmers' IncomeDr. Anil Kumar Singh

Book Reviews 89

Author Profile 96

Prof. Bhimaraya A. MetriDeanLarsen & Toubro LimitedL&T Institute of Project Management

Prof. Suneet TuliDean-Research & Development (R&D) IIT Delhi

Mr. Satyakam GuptaTransport EconomistIntercontinental Consultants and Technocrats Pvt. Ltd.

Editorial Advisory Board

Members

Mr. Rajiv KhuranaManagement ConsultantThe Personnel Lab

Ms. Deeksha BishtFormer Acting DirectorCSIR - NISCAIR

Ms. Manju BagaiAdvocate

CONSULTING AHEAD- VOL. 11 - ISSUE 2

An Educational Institute Leaning on Lean Thinking

CONSULTING AHEAD — VOL. 11 — ISSUE 2 1

An Educational Institute Leaning on Lean Thinking1

Toyota Production System in the name of Lean Production has been widely studied and documented in the manufacturing sector. In recent past, adapted version of lean production in the name of lean thinking (LT) has entered into healthcare (e.g. Virginia Mason Medical Center, Intermountain Healthcare, Shouldice Hospital, Thedacare, Palo Alto (Calif.-based children's hospital), (HealthEast Care System, etc.) and software (e.g. Wipro Technologies, etc.) service sector among few others. Very recently, studies have anecdotally captured the experience of LT implementation in educational institutes. Our study adds to this limited literature by developing a framework for LT implementation in educational institutes after studying the experience of implementing process improvement in a business school in India.

Keywords: Lean Thinking, Process Improvement, Education, Framework, Implementation, India.

G. Narayanamurthy

A. Gurumurthy

R. Chockalingam

CONSULTING AHEAD — VOL. 11 — ISSUE 2 2

Application of Lean Concepts in a Process Industry — Case Study of Performance Improvement through Lean in

Bulk Drug Manufacturing

Lean Manufacturing philosophy, with its origins in the Toyota Production System (TPS), has been well established world wide as a way to improve operational performance in the automotive and other discrete manufacturing sectors. However, there is a lot of scepticism in implementing lean in process industries where manual intervention is a bare minimum.

This paper seeks to dispel such doubts through practical case examples of lean based process improvement undertaken in bulk drug manufacturing. It touches upon how the lean paradigm can be used in such process industries to understand the current state and identify potential areas for improvement. It also details actual improvement projects to explain the application of the core Lean concept of waste elimination. In Lean, waste is defined through the 3Ms – Muda (non value adding activities), Muri (Physical strain or stress) and Mura (inconsistency).

This experience of practical implementation is used to share some of the differences in how lean is applied in process industry as compared to discrete manufacturing. However, it would be premature to draw specific conclusions from this paper as it is based on a small sample of bulk drug manufacturing units. The findings would need to be validated through a much more comprehensive study of lean implementation in various sectors of process manufacturing.

This paper is however useful in throwing some light on applicability and benefits of implementing Lean in sectors which have traditionally not been exposed to this widely proven management philosophy.

Keywords: Lean, Muda, Muri, Mura, operations performance improvement.

Ganesh Mahadevan

CONSULTING AHEAD – VOL. 11 – ISSUE 2 3

Understanding Lean Approach to Organizational Transformation for Excellence

As a practicing consultant & a keen learner of Lean, I have been involved in implementing Lean for the last two decades in both the manufacturing and the services sectors in India. In my initial days of practice, I made companies Lean via Kaizen approach, as I was working as a part of a Japanese company at that time. Later, when Kaizen & Lean became very common words in the Industry, we thought it more suitable to call them as Operations Excellence or World Class Manufacturing. But fundamentally we have been selling the same generic concepts, irrespective of their names, for organizational transformation for excellence by bringing improvement in various business processes.

Ashok Puri

Indian Industry has been growing for the last so many decades and this growth has picked up lot of pace in the last couple of years. However, from the Global perspective, we still are far behind many other countries, both developed and developing. A lot needs to be done to make Indian industry globally competitive. It is a matter of serious concern, both for the Industry and the Government. Many new initiatives have been started by the government as a part of Make in India Policy. Lean Clusters for the MSMEs is one such scheme by the Ministry of MSME.

Lean India Consulting Group, LICG, promoted by the Author, has also taken some initiatives by doing extensive research on Lean approach for organizational transformation, particularly customized for the Indian Industry. Kaizen has been a Japanese concept and Lean an American. To apply them blindly to the Indian conditions, as most of the practitioners tend to do, is not fair, as Indian conditions are much different from Japanese and American. LICG, realizing this, came out with it’s own unique, tried & tested Indian version & called it SLIM … Strategic Lean Integrated Manufacturing. The SLIM model, which has been applied successfully by the author in many Indian companies, looks at business operations with a Micro eye and tries to get 100% engagement of all the operations stake holders, in their role as it’s owners. It works at both the fundamental and the strategic levels, involving employees from bottom to top in the transformation exercise. SLIM focusses on all the functional areas. Production, supply chain, maintenance, quality, marketing, finance, HR. It has been successfully applied in many large & small companies in India in Manufacturing, Health, Hospitality & Government sectors.

LICG’s efforts were recognized in 2015 by Ministry of MSME, Government of India, for it’s participation in the Pilot stage of Lean Clusters implementation and was appreciated as best Lean Consulting Company.

The author is in the process of completing his book on the subject Manufacturing Excellence, the SLIM way. This book will explain in details the SLIM Model, as practiced in the Indian companies. In this article, the author is trying to give his own understanding of Lean approach to organizational transformation for excellence. The main objective of this article is to concentrate on the operations excellence activities in both the manufacturing and services sector thru the unique SLIM approach.

Keywords: Operations Excellence, SLIM, Lean, Kaizen, Flow, 4P’s, Muda, VA & NVA.


Failures in Steel Structures A Collection of Case Studies

Structural steel is a very versatile material and a very common material of construction in the industrial world. Structural steel has higher initial cost than RCC and is still used as the material of construction because of its-

STRENGTH EASE AND SPEED OF CONSTRUCTION EASY CONNECTION OF SERVICES AT A LATER DATE

In the recent times, there have been few cases failures reported in the industry. This paper presents the findings from the study of failures in steel structures and the analysis of the probable reason for the failures and suggestions to avoid them.

The root cause of many failures very often is due to-

The lack of connectivity between all parties involved in building thesteel structure – Owner, PMC, DEC, Contractors, subcontractorsetc.

Lack of awareness in design and construction engineers about theoverall concept of the project, criticalities, and common issues in theproject.

“TIME” overruling other deciding factors like design, erectionproblems, safety etc.

Case study 1 - Failure of a steel coal storage bunker in a power plant

Surovi Ganguly


Prioritization of Financial Performance Determinants: An Empirical Study on SMEs of Rajasthan State based

on AHP Approach

The research aims to prioritize financial performance determinants in SMEs of Rajasthan State based on “Analytic Hierarchy Process”. Pair-wise comparisons made by experts via a structured questionnaire yield relative priorities (local weights) on the identified criteria. Synthesis of relative priorities (local weights) into global priorities (global weights) lead to the final decision. Intellectual capital (0.35) is perceived to be most important determinant followed by Entrepreneurial orientation (0.33) and Coopetition (0.28). Findings suggest that the framework developed in study guides the SMEs in restructuring their core strategies for maximizing financial performance in terms of sales growth, increased market share and revenue generation. It will also provide them a new orientation to gel their business strategies for long term sustainability.

Keywords: – Small and Medium Enterprises, Intellectual Capital, Coopetition, Entrepreneurial Orientation, Financial Performance and Analytic Hierarchy Process

Dr. Priyanka Jain

Dr. Vishal Vyas

Dr. Ankur Roy

Dr. Arunangshu Mukhopadhyay


Forensic Geotechnical Investigations of a Misaligned RE Wall in a Highway Section

This paper presents the details of the forensic geotechnical investigations carried out as part of the rehabilitation of the misaligned Reinforced Earth (RE) wall in Ananatpur in Andhra Pradesh. The reported RE wall is 13.85 m high and is part of the approach to the Railway Over Bridge (ROB) in Hyderabad-Bangalore highway. The RE wall was misaligned vertically when it was opened to traffic in August 2010. The vertical alignment of the RE wall for about 49 m length on one side (on the LHS of Hyderabad end of RE wall) is found to be out of plumb with respect to the return wall of ROB. Initially, the only option seemed was to dismantle the entire RE wall and reconstruct the new one. However, the detailed forensic analysis revealed that the existing RE wall can be retained with minor repair on the side panels. This paper highlights the various forensic investigations performed to understand the reason behind the misalignment of the RE wall. Forensic geotechnical engineering involves analysis of this RE wall, during design phase, check the calculations and engineering assumptions during and after the construction, site conditions, construction from a geotechnical standpoint, and quality evaluation to address issues that arise during or after construction. The forensic analyses included both field tests and the design analyses. The field tests included Standard Penetration test (SPT), Multichannel Analyses of Surface Waves (MASW) and Ground Penetrating Radar (GPR). The design analysis included the stability assessment of the RE wall using ‘SLIDE’ software. The results of the forensic investigations revealed that there was no structural instability in the RE wall. The major cause of the misalignment was attributed to poor construction practices followed during the construction of the RE wall. Minor repairs were performed and the RE wall was opened to traffic. After the completion of the rehabilitation, the wall has sustained heavy traffic loads in the last six years without developing any additional misalignment or cracks. The wall continues to be performing at its best condition till date. The remedial measures have saved the huge cost and time as compared to the alternative options such as demolition and reconstruction of the RE wall or by adopting suggested soil nailing strengthening for the misaligned portion of RE wall.

Keywords: RE wall, misalignment, stability analysis, field tests, forensic investigations, remedial measures

Dr. T.G. Sitharam

Dr. Amarnath Hegde


Energy Performance Index (EPI) for Different Types of Buildings in an Academic Campus: IIT Kharagpur,

India as a Case Study

The main aim of this study was to determine energy use intensity in terms of the energy performance index (EPI) for different types of buildings in a large, residential, academic campus in India and compare these values with studies from other locations. EPI values were quantified in terms of kWh/m2-month (or year) and correlated to various influencing factors like floor area, occupancy rate, whether the building is private or public, and nature of activity in the building. Building age did not affect EPI values in this study but the conductivity of electrical wiring may affect EPI values. Residential usage by students ranged from 12.7 to 54.7 kWh/m2-year while residential usage by staff and faculty averaged 19 kWh/m2-year. Public service buildings had a much wider range of EPI values from 18.5 for a post office to 1165 kWh/m2-year for an ATM. Energy usage in a large market area was 56.81 kWh/m2-year. The range of EPI values reported in this study is very different from those reported in the literature. These differences can be attributed to differences in economic and climatic conditions and the activities in these buildings.

Keywords: Commercial, Public Service, Climatic, Residential, kWh/m2-year, Floor Area.

Dr. Sudha Gupta

Kruttika Apshankar-Kher

Arpit Malav


Menthol Mint: An Economically Important Aromatic Crop for Raising Farmers’ Income

Menthol mint (Mentha arvensis) is the source of menthol mint oil, L-menthol crystallized from it, de-mentholised oil and specific terpene fractions thereof which are widely used in food, flavour, pharmaceutical and cosmetic industries the world over. About forty eight years ago, India was dependent on the import of menthol mint oil and its derivative from other countries. Due to the efforts made by CSIR-Central Institute of Medicinal and Aromatic Plants (CSIR-CIMAP) in promotion of menthol mint production in the country for the last several years, India has become the global leader in the menthol mint production. This has been achieved by developing high yielding varieties, improved agro- and process technologies and undertaking dissemination of technologies among the farmers. Now menthol mint crop is being cultivated in about 2.5 Lakhs hectare area by about five lakhs farming families and creating employment opportunities in terms of more than 5 crore man-days per annum. A farmer can earn a net profit of about Rs 100,000 per hectare by taking two harvests under normal conditions. Looking at the increasing demand of its oil and menthol in domestic market and abroad, various strategies relating to research and development need to be formulated and implemented by the scientists and industries for sustainable production of the commodity. Keywords: Menthol Mint, Mentha arvensis, Aromatic Crop, Cultivation, Processing

Dr. Anil Kumar Singh


Title : Lean Customer Engagement

Author : Shil Niyogi

Publisher : SAGE Publications Pvt. Ltd.

Reviewer : Dr. Deepak Chawla, Professor, Operations and Quantitative Methods, International Management Institute, New Delhi

The book ‘LEAN CUSTOMER ENGAGEMENT’ is divided in Two Parts. Part I Introduces the readers with the Four E Framework. There is one chapter in this part which is Engaging Innovations by Entrepreneurs. An engaging entrepreneur has have an innovative bent of mind for which path breaking research may not be required. The innovative ideas could come from a vision of how a better product/service could result in building value for the customers and keep them engaged. The book uses a four E-frame work that deals with four types of engagement components between the entrepreneur and the customer (existing or prospective). These are Educate, Enable, Effect and Engage. The first component “Educate” explains in detail how to better understand customer and their needs which are not met. The ‘Enabling’ phase keeps customers to take decision by letting them know more about products and their uses. It helps entrepreneurs get closer to the needs of the customers and whether they would be able to provide what customer needs. The ‘Effect’ phase is about knowing whether the entrepreneurs are able to meet the expectation of the customers, and are the products meeting the values to the customers and if not ‘what’ action should be taken. The last phase ‘Engage’ is about staying engaged with the

client before and after the sale is made. This is very crucial for a sustained businesses relationship and this could result in good word of mouth and lead to increased sales. The importance of innovation for various product categories is helping connect with what is valued by customers is emphasized. This helps in new product development and takes strategic decision for marketing the products. It is also possible for entrepreneur to emphasize one engagement component over the others. The part II of the book – The Framework and the Phases has four chapters dealing in detail with each of the four components. The ‘Educate’ part discusses various methods to understand the need of the customers and also providing them information about the new products. This is facilitated with the help of real life examples. The importance of preliminary research in identifying potential customers is emphasized. The usefulness of statistical analysis in examining trends if any is carried out for the purpose. This could help in setting a benchmark price as both underpricing and overpricing are not desirable for a competitive edge. It is also important to explore whether a new design/feature of the product would meet customers’ needs better and whether

Book

Review

Book Review


customers would be willing to pay extra for the same. The important skills required by an Educator are empathizing, good interpersonal communication skills, analytical bent of mind and exposure to different cultures. The next chapter is an “Enabling’ phase. Here the entrepreneur gets enabled by knowing the customers need which the products could meet. Thereafter the entrepreneur could enable the customers by experimenting with the price, product, promotions, place etc. Enabling comprises of series of activities to analyses the users where they are very lucrative. Keeping this in the background, Enabler classifies the customers into various segments. The segment could be based on demographic, geographic, psychographic or any other criteria. Another important enabler is the pricing, which could be value based, cost-based, salesman’s pricing and market inspired pricing. Most of the entrepreneurs find value based, market inspired and pricing methods very effective in making customers buy their products. Another important enabler is brand and product design. Brand enables product differentiates in terms of quality, feature, personality and other emotional benefits. It takes several years of marketing effort to build the brand. A strong brand helps in boosting sales of the product. The customer already knows about the brand and hence the product. Another way of Enabling is to let customer tell that what more is required in the product, which may make you bring about changes in the product. The role of media becomes important for advertising and greatly influences how the brand is perceived by the customer.

The role of Enabler also becomes important in making the product on timely basis and at reasonable cost. This brings in the importance of delivery and logistics so that the product reaches the consumers timely, safely and without any hassle.

The chapter on Effect (uate) phase begins with defining Effect or Effectuate, Effecting and

Effecter. In simple term Effect implies to cause something. Effecting is making things happen tactically and Effectuate is the one who brings about all the moves to get the desired result. Besides the Effecter, environment plays an important role in transferring a want a need. Effecters are called upon for a deal closure as the role of the effecter is more sales oriented in service business and also to get into the minds of the consumer for consumer products. The strengths of the effecter are his agility, his closing skills, storytelling, expertise in the subject, sales strategy and his ability to manage finances efficiently. The effecter works on certain strategic activities like forecasting, team building and coaching. For forecasting all the variables influencing sales are considered. The influence of business cycles, changing customer behavior and competition is also taken into account while forecasting. Effecter emphasizes the need for accurate forecasting so as to ensure proper planning of resources and decision making. A forecasting is a collaborative process and the educators, enablers; effecters and engagers should contribute in this exercise. The role of team building is very essential for entrepreneurs. An effecter realizes the importance of collaborating with outside team especially when the scale of sale is very large and difficult to achieve by an entrepreneur. Therefore some of the ideas, contacts and strategies need to be transferred to the new effecters.

Effecters are constantly in look out for new opportunities, the concern for the problem associated with producing and distributing the same. They try to improve and experiment with new ideas. They are flexible in their approach and change the parameters of the product or service to make them more suitable to customers’ needs.

Engage phase keeps the customer engaged by constantly creating value for them. The skills that

Book Review


are important for the engagers are-foresight, ability to bring array in chaotic environments, good communication and leadership skills and keeping the priorities right with respect to delivery time and management of resources. The crux of the matter is not to lose the existing customer as the cost of acquiring a new customer is many times more than retaining the customer. Delivery is extremely important for engaging customer especially when it comes to providing services. It is essential to understand the culture, the process workflows, the stake holders, the objectives of the organization especially when getting into service delivery contract with a large organization.

If the methods of performing in task undergoes a change, the customers have to be informed the benefits of the change to keep them engaged. The CRM system could be used for managing relationship with old, existing & prospective customers. This is a very well researched book and draws heavily from various functional areas of management. The book is written in a very simple, understandable language. It keeps the readers engaged and encourages them to think innovatively. The book makes uses of various examples, real life case studies to explain various concepts. It is a must for entrepreneurs, marketing professionals and students of business management.

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Title : Visual Six Sigma - Making Data Analysis Lean(2nd Edition)

Author : Ian Cox, Marie A. Gaudard, & Mia L. Stephens

Publisher : Wiley Publications

Reviewer : Prashant Premkumar & Gopalakrishnan Narayanamurthy Fellow Program in Management (FPM) Indian Institute of Management Kozhikode (IIMK)

Data analysis forms an integral part of not only research in the field of social sciences but also in the current business world where more and more corporates have terabytes of data. Inherent complexity and lack of resources makes data analysis out of reach for several practitioners and leaves them clueless as to how to make efficient and effective sense of data for enabling informed decision making. Effectiveness aspect of data analysis have been documented in articles and newsletters by discussing how data analysis help

in making businesses lean.1 Efficiency aspect of data analysis also plays a key role in its adoption and implementation. The book reviewed discusses the efficiency aspect of data analysis by suggesting how it can be made lean. This book takes the reader through a roadmap for using the principles of Visual Six Sigma by making data analysis lean and enable the company to take informed decisions. Unlike the Six Sigma practice where an entire team has to be involved and the initiative typically comes from the top management, lean data analysis using Visual Six Sigma can be done by an individual as well as by a team. The “explosion of big data” in the recent past as the book suggests makes it all the more valuable tool in the field of data analytics. The

—————— 1Pritchard, S. (2013). Business applications, data analytics can make business lean. Computer Weekly. Available at http://www.computerweekly.com/feature/Business-applications-data-analytics-can-make-business-lean (last accessed on 8 May 2017)

Book Review


trial version of JMP along with data sets available on SAS Institute’s website makes this book a very handy proposition for the reader.

This book is primarily divided in to three parts: Background, Case Studies and Supplementary Material. The first part viz. Background comprises of four chapters. The first chapter titled “Introduction” introduces the reader to the concept of Visual Six Sigma and its three main strategies (namely visualizing, exploring, and confirming) which will be seen in use at different stages of data analysis throughout this book. This chapter also highlights the applicability of this technique irrespective of the size of the data and lays down the requirements on the reader’s part prior to reading this book. The second chapter titled “Six Sigma and Visual Six Sigma” outlines and contrasts the traditional Six Sigma process vis-à-vis the Visual Six Sigma process. Authors have synthesized the key aspects of traditional Six Sigma, an exhaustively studied and documented process improvement initiative in literature, to make it easier for understanding the scope and potential of Visual Six Sigma. Aspects of traditional six sigma like its deployment, infrastructural requirement, and DMAIC (also DMADV or IDOV) phases are discussed. Second chapter goes on to explain the key role of statistics as detective for exploratory data analysis and statistics as lawyer for confirmatory data analysis. It also elaborates on the three strategies mentioned earlier which can be seen in use throughout the case studies. Visual Six Sigma is argued to support the execution of the three strategies and a six step procedure (problem formulation, data collection, relationships uncovering (exploring strategy), relationships modelling (confirming strategy), knowledge revision, and knowledge utilization) is proposed for its implementation. Visual Six Sigma guidelines are also listed for practitioners to help in assessing their firm’s performance in this chapter. The third chapter titled “A First Look at JMP” gives the reader an initial insight into the JMP Software. Objective of this chapter is

familiarize the reader with the software and enable her/him to use the same for data analysis in the Visual Six Sigma case studies coming up in the subsequent chapters (Exhibit 3.31 acts as the index for platforms and options of JMP Software illustrated in the subsequent chapters). The details in this chapter comes handy while reproducing the graphs and reports in the case study chapters. The fourth and the final chapter titled “Managing Data and Data Quality” deals with assessing and managing the quality of the data (assessed on the dimensions of accuracy, interpretability, availability, and timeliness) on hand by considering two representative examples. Assessing and managing the quality of the data is a prerequisite for all exploratory analysis so as to understand the extent of data fit for the company’s purpose and the extent to which the company’s questions can be answered.

The second part which is also the crux of the book, dives into the detective work of statistics by using six case studies with different sets of data with each set belonging to a different field ranging from Operations Management to Marketing Management. These case studies demonstrate the coordinated use of different techniques to solve real-world problems. The fifth chapter titled “Reducing Hospital Late Charge Incidents” deals with a dataset which helps the reader understand the “Uncover Relationships” stage of the Visual Six Sigma Process. The dataset pertains to late charges at a hospital and shows how an analyst working with the accounting department can make use of it to understand the reasons for late charges. Using the dynamic visualization and dynamic linking capabilities available in JMP, the case analysis describes how histograms, bar graphs, Pareto plots, control charts, scatterplots, mosaic plots, and tree maps can be used for drawing insights. The sixth chapter titled “Transforming Pricing Management in a Chemical Supplier” explains the application of Visual Six Sigma techniques in the field of sales and marketing to come up with pricing strategies for a multinational chemicals

Book Review


supplier, a field presumed to be driven predominantly by intuition and art rather than data analysis and science. It highlights how a data set, often used exclusively for accounting, can be used for making improvements. The seventh chapter titled “Improving the Quality of Anodized Parts” shows how optimization of manufacturing process is just as important as reduction of defects in the process to improve the yield of anodized parts manufactured. To highlight this, the chapter uses data pertaining to quality of anodized parts which is facing the problem of discoloration of black components. Tools demonstrated in the process of solving this problem are variability charts, measurement system analysis, distributions with dynamic linking, graph builder, scatter plot matrices, scatterplot 3D displays, design of experiments, prediction profiler, contour profiler, goal plot, control chart, and JMP Simulator. This case study demonstrated the dynamic visualization, analytic, and simulation aspects for uncovering and modeling relationships and showed that the data analysis process of Visual Six Sigma is in alignment with the DMAIC framework. The eighth chapter titled “Informing Pharmaceutical Sales and Marketing” deals with a data set from a pharmaceutical company where management perception is opposite to the sales force’s claim of improved performance. Tools demonstrated in the process of addressing this confusion are summary tables, one-way analyses with comparison circles, regression plots, and animated bubble plot are demonstrated. This case highlights the perils of force fitting important business questions into traditional Six Sigma DMAIC methodology. This case conveys the importance of understanding data quality, distribution of missing values, and balance of the data itself (which levels of descriptive variables occur jointly) for doing a sensible analysis. Ninth chapter titled “Improving a Polymer Manufacturing Process” brings out a very important lesson that lean data analysis is not a standard process that can be uniformly applied across all datasets using a case example. Rather,

each and every situation has to be dealt with separately. This is aptly depicted when the data in this case is analysed using DMAIC methodology in conjunction with Visual Six Sigma Roadmap. Solution to the problem faced by the case company were obtained through measurement system analysis and stepwise regression modeling. Case analysis clearly conveyed that the measurement system have to be constantly monitored for harvesting meaningful results by applying the principles of statistical thinking and analysis. The tenth and the final chapter of part two titled “Classification of Cells” deals with a case study that requires visualization techniques, predictive analytics, classification, and data mining (heavily relies on JMP Pro) to solve the problems faced. This chapter tests various models such as regression tree models (decision and boosted), a logistic model (stepwise personality in fit), penalized regression models using the generalized regression platform (Lasso and Elastic net), and neural net models (without and with boosting) to highlight the best among the ones tested.

The third and final part titled “Supplementary Material” consists of one chapter (Chapter 11) titled “Beyond “Point and Click” with JMP” which discusses on automation and personalization of JMP using JMP Scripting Language (JSL) to fit the requirements and skills of the reader by saving time and efforts.

The book is very lucidly written with the authors literally handholding the reader through the entire process of data analysis using JMP. The pictorial representation of the dialogue boxes while using the software makes it very easy for the reader to familiarize herself/himself with trial version of the software available on SAS Institute’s website. The visual displays using this software for data analysis, lend more credibility and strength to the analysts interpretations of the data.

The book, however, is not without its limitations. A cursory glance through the book is enough for

Book Review


one to realize that the book is more about how to use JMP, SAS Institute’s Statistical Discovery Software, for making data analysis lean, rather than a handbook for making data analysis lean irrespective of the software used. Nevertheless, the concepts used in this book can very well be applied with any software capable of dynamic

visualization, albeit with some minor adjustments based on the software used by the reader. Moreover, the reader is expected to undergo the experience of analysing data hands on while reading the book in tandem to realize the full potential of the process of making data analysis lean through the use of Visual Six Sigma.

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Title : Value Creation - The definition guide for business leaders

Author : Gautam Mahajan

Publisher : SAGE Publication Pvt. Ltd.

Reviewer : S. Srinivasarao, Retd. Managing Director, APITCO(Andhra Pradesh Industrial Technical Consultancy Organization Ltd)

The markets world over are experiencing rapid changes by the influence of various factors. Technology and disruption, digitization, emerging countries as market power houses, social conflicts of the haves and have not’s, religious militancy, aging, rapid changes and unbelievable and unseen opportunities is making the CEO's rethink their business and their purpose. He has to realize that his role is to create value and balance all the stake holders, while understanding that they are all interconnected. The CEO always knew this but did not prioritize this role as the world had been slow moving and the demands from the employees, partners, customers, society and govt. have been less intensive. Value creation has to become a mainstream activity for the CEO's to embark on changing for the future. The book ''Value Creation --The definitive guide for business leaders '' is brought at the most appropriate time and in a form (as a guide) which is more useful for CEO's to put value creation process in practice.

Goutam Mahajan, an internationally acclaimed thought leader in total customer value management with years of experience of working with leading business houses world over has authored this book, as a guide for CEO's and other practicing managers facilitating them to start practicing value creation as management tool. This helps CEOs sustaining and growing the business a long term basis as it aligns the entire company to the customer. He argues that the business of business is to create value for ecosystem. In support of his argument why value creation is important, he narrated the success stories of many companies utilising value creation route effectively in commercial and social sector very impressively. As an experienced trainer of managers and author of several books on management related issues he could structure well this book in guide format.

Gautam chooses to divide the book into several sections each having an opt title which makes the understanding of Value Creation easy. To explain

Book Review


why value creation is important to CEOs, a series of experiences of world’s most successful business houses which became the leaders in their respective fields is presented at appropriate intervals. The views of CEOs of these corporates on what is value creation, how it was implemented and the results brought were used as examples to inspire the young CEOs. Giving an example of edible oil company which is focusing on sustainability by reducing deforestation and improving the ecosystem which set itself as an example of higher purpose, it was argued that it is a business proposition rather than an appeal to philanthropy. Since this is a guide to follow some pointers for practicing value creation were presented. An organization chart and the signs which indicates how and why companies are ignoring the value of ‘value creation’ were discussed to motivate CEOs to take up responsibility as value creator for business and customers. While giving ideas how a CEO can start building a value creating organization, the author brings out the definitions of soft assets which include Employee asset, Customer assets, Social assets, Brand assets and Knowledge assets. These assets also require maintains as other fixed assets like plant and machinery etc. It was emphasized that the idea of starting ‘value creation centers or councils’ is a good means that CEOs can incorporate to get their employees to work on value creation. It was brought out clearly why developing customer strategy, changing mind-set of employees and bringing other functional managers like heads of HR, Marketing, Finance etc. into line function are

very important for successful implementation of value creation program. The author stressed the need for inclusion of ‘Value Creation’ in the main curriculum of the business school where the focus is otherwise always on cost reduction, market demands and profits to the shareholders. Value creation is also relevant to other sectors like education, health care, recreation etc. This is explained giving an example of a charitable hospital where there is no fixed billing is done but the patient has the freedom to pay whatever he likes based on his satisfaction level. The other example picked up is from sports arena, the introduction of one day and T20 format in cricket. Since pricing is a subject which is ultimate in business, how value creating can be used for enhancing pricing by CEOs is brought in a separate section. Pricing is not about selling but it is about customer buying and thus pricing should relate to the customer, his buying processes and the value he perceives. Not missing the importance of teaching and training requirements, a separate chapter was allotted explaining the faculty and institutional needs. The conclusion chapter summarizes the preceding discussion and presents in the form of pointers and tables form. On the whole as it is titled as ''Value Creation --The definitive Guide to Business Leaders ", the book serves as a guide to the Sr. Managers who needs to understand and practice value creation in running their business. The book has become a must for those who want to become business leaders from the normal managers.

*—————*


Author Profile

Gopalakrishnan Narayanamurthy is a Fellow student in the area of Quantitative Methods and Operations Management at Indian Institute of Management Kozhikode. He is also a Fulbright-Nehru Doctoral Research Scholar from Carlson School of Management. He has published and presented papers on diverse topics including lean thinking in hospitals, lean thinking in software development, lean thinking in education, supply chain management, and sustainable operations. He has also written and published several teaching case studies in different case clearing houses like Ivey and Emerald Emerging Market Case Studies (EEMCS).

Anand Gurumurthy is an Associate Professor in the area of “Quantitative Methods and Operations Management (QM&OM)” at the Indian Institute of Management, Kozhikode (IIMK), Kerala. Prior to this, he was an Assistant Professor with the Mechanical Engineering Department of Birla Institute of Technology & Science (BITS) Pilani, Pilani Campus, Rajasthan, where he also completed his PhD in the area of Lean Manufacturing and ME in Manufacturing Systems Engineering. He has around 11 years of teaching/research experience. He started his career as a Production Engineer with one of India’s leading industrial houses – the TVS Group. He has published around 40 papers in peer-reviewed national and international journals and presented many papers in various national/international conferences. His current research interests include lean thinking with a special focus on services, and application of multi-criteria decision making models for unique business problems.

Raju Chockalingam is a Professor in the area of “Quantitative Methods and Operations Management (QM&OM)” at the Indian Institute of Management, Kozhikode (IIMK), Kerala. Prior to IIMK, he was a Professor in Quantitative Methods and Operations Research in SDM Institute of Management Development, Mysore, Karnataka. He was also a Visiting Professor at Armstrong Atlantic State University, Savannah, Georgia, U.S.A during January to February 2001. He has around 32 years of teaching/research experience. He also played a key role in the administration as Chairperson, Public Relations Officer, etc. in those educational institutions he is associated with. His research interests are in the areas of improving education systems, blended learning, acceptance sampling, partial least square (PLS) regression, and econometrics. He has published many papers in peer-reviewed journals and has presented his research in variety of international and national forums.

Ganesh Mahadevan, Director with Kanzen Institute Asia Pacific Pvt. Ltd., has been working in the area of operations excellence since more than a decade. He is a B.Tech in Metallurgical Engineering from IIT – Mumbai and later did his MBA in Operations Management from NIT – Trichy. He started his career in HINDALCO working extensively in the continuous and slab casting of Aluminium alloys for sheet product applications such as foil, closure and lithographic sheet. He later joined the Management Consulting Services division of Deloitte and lead several assignments in Business Process improvement across industry sectors. He is certified By Deloitte in their proprietary methodologies of “Business Process Redesign” and “Activity Based Costing”. With KIAP since 2007, he has led multiple lean implementations using the powerful KANZEN focused improvement workshop model across diverse sectors such as electronics, refrigeration, engineering & fabrication, foundry, pharmaceutical, FMCG, ITES and hospitality sectors. He has guided implementation in MSME clusters under the National Manufacturing Competitiveness Program from which two units received the

Author Profile


National Award for best lean implementation. He has also conducted lean training programs at leading management institutions including ISB, IFMR and IMT.

Ashok Puri is a globally recognized management guru. He is an author, engineer, academician, philosopher who exhorted his clients and students to examine and reassess their business practices with a new vision and has contributed extensively in the field of Kaizen, Lean Manufacturing, and Organization Excellence. For Indian SME’s, he has developed Micro Management Models for better Organizational Governance. His models work at both fundamental and strategic levels and have delivered outstanding results.

Mr. Puri has been a senior faculty of BITS - Pilani, IP University for their MBA Consultancy Management Programs. He has authored two course books. His new book on Manufacturing Excellence is due to release soon. Being a visiting faculty to LBSNAA, Mussoorie, he had been taking classes of Senior IAS officers on 5S, Kaizen/Lean. He is also part of MSME Development Forum for promoting excellence in MSME sector, Vice Chairman of Delhi Chapter of Institute of Management Consultants of India, IMCI and executive committee member of Delhi chapter of Indian Institute of Plant Engineers (IIPE), member of AIMA, IE, ISHRAE and QCFI. He is also a technical expert team member of ZED program by Ministry of MSME/QCI.

Surovi Ganguly is presently working in Tata Consulting Engineers as Senior General Manager and Discipline Head (Civil). She joined Tata Consulting Engineers; a prestigious Consulting Engineers’ Company in 2005 and has around 34 plus years of working experience. She graduated in Civil Engineering (B.E.) from Bangalore University. Her area of expertise being structural steel design/detailing and she has worked both as a design engineer and project lead engineer in a number of prestigious Power Plant and Industrial Projects; both in India and abroad. She is also experienced in restoration of failed Structures including carrying out root cause analysis of failures. Her design experience includes - leading a team of design engineers, project co-ordination with Client/Owner’s Consultant/EPC Contractors during design & construction, man hour estimation and contract administration, preparation of civil works specifications for various construction packages, quantity estimation for tenders, engineering, design, detailing, review of fabrication drawings, review of vendor’s drawings of power plant and industrial structures and resolving site/construction issues. Presently she is a member of her company’s technology team. Her present responsibilities includes - maintaining quality of engineering deliverables, training and productivity improvement.

Dr. Priyanka Jain is working as an assistant professor at COBMEC, Mody University Lakshmangarh, Rajasthan (India). She has presented number of papers in both National and International conferences including 1st PAN IIM World Conference, 5th Conference on Excellence in Research and Education (IIM Indore), India Accounting & Finance Conference (IIM Lucknow) and others. She has research papers to her credits in journals like Journal of Advances in Management Research (Emerald), International Journal of Law and Management (Emerald), International Journal of Entrepreneurship and Small Business (Inderscience), World Review of Entrepreneurship, Management and Sustainable Development (Inderscience) and others. Her research interest includes Corporate Social Responsibility, Socially Responsible Investments, Financial Markets & institutions and Portfolio Management.

Dr. Vishal Vyas is assistant professor at ABV- Indian Institute of Information Technology and Management, Gwalior (India). He did his Ph.D. in Financial Econometrics and Masters in Management with Finance. He provides consultation for successful syndication of fund raising needs of the Indian SMEs. These include an exhaustive gamut of business plan preparations and financial products

Author Profile


advising. He has conducted workshops for business plan preparations at various prestigious institutions of India. He has participated and assisted project appraisal processes for project financing at Canara Bank and State Bank of Bikaner & Jaipur. He has judged business plan competitions at prestigious institutions of India.

He has been a resource person and also contributory in developing several workshops, seminars and faculty development programs on Research Methodology. He has research papers to his credits in reputed journals published through Elsevier, Emerald, Inderscience, Sage, Taylor & Francis, etc. He has been reviewer to journals published through Emerald, Inderscience, Sage and Taylor & Francis. His research interest includes Research Methods, Project Finance, Financial Risk Management, Derivatives, Portfolio Management and Investment Analysis.

Dr. Ankur Roy is working as an Assistant Professor in Management of Development Institute, Gurgaon, Haryana (India). He did his Ph.D. in Strategic Management and Masters in Management with Systems as specialization. He has research papers to his credits in journals like, International Journal of Entrepreneurship and Small Business (Inderscience), Journal of Advances in Management Research (Emerald), World Review of Entrepreneurship, Management and Sustainable Development (Inderscience) and others. He has presented number of papers in both National and International conferences. He has authored a management case listed in Ivey Publishing. His research interest includes SME strategy, competitive strategy and family business management.

Prof. T. G. Sitharam, since 1994 is at Indian Institute of Science and presently he is a Senior Professor in the Department of Civil Engineering and KSIIDC Chair Professor in the area of Energy and Mechanical Sciences. He is the founder Chairman of Centre for infrastructure, Sustainable Transportation and Urban Planning (CiSTUP at Indian Institute of Science, Bangalore. Dr. T. G. Sitharam has obtained his BE (Civil Engg) from Mysore University, India in 1984, Masters from IISc, Bangalore in 1986 and Ph.D. from University of Waterloo, Waterloo, Ontario, Canada in 1991. Further he was a post-doctoral researcher at University of Texas at Austin, Texas, USA until 1994. He has served in many organizations like University of Waterloo in Canada, University of Texas at Austin, USA, University of HongKong, and Yamaguchi University, Japan. He is the Chief Editor of an International journal published IGI Global, PA, USA. He was also an Associate Editor (AE) for ASCE Journal of Materials in Civil Engineering, USA for the period 2006-2007. He has guided 27 Ph.D students, 4 M.Sc. (Engg) students and several ME project students. He has several ongoing research projects to his credit to the tune of several hundred million rupees. He has written Ten text books and more than 500 research publications with an H-index of 31 and I-10 index of 74 with citations of 2740. He is an excellent consultant and has carried out more than 100 consultancy projects in the area of infrastructure, geotechnical engineering, rock engineering. He has delivered lectures invited / keynote lectures and also chaired/co-chaired technical sessions in several International / national conferences. Prof. Sitharam is a life member of several professional organizations.

Dr. Amarnath Hegde has obtained his Ph.D. from Indian Institute of Science Bangalore, India in 2015. Currently, he is working as Assistant Professor in Department of Civil and Environmental Engineering at Indian Institute of Technology Patna, India. Previously, Dr. Hegde has held the short term research positions at University of Milan Bicocca in Italy, UPC, Barcelona Tech in Spain and National University of Singapore. He has published one book and more than 30 research papers in reputed International/national journals and conferences. He is a life member of several professional

Author Profile


organizations. Before Ph.D, he has also worked as a geotechnical Engineer in Keller Ground Engineering India Pvt. Ltd in Mumbai for two years. He has completed his M.Tech from Indian Institute of Technology Bombay and B.Tech from BVBVET Hubli in Karnataka.

Dr. Sudha Goel is currently an Associate Professor in the Civil Engineering Department of the Indian Institute of Technology Kharagpur. She received her B.E. (1990) in Environmental Engineering from L.D. College of Engineering, Ahmedabad and M.S.E. (1992) and Ph.D. (1996) in EnvironmentalEngineering from The Johns Hopkins University in Baltimore, USA and has been working on variousaspects of environmental engineering since then. Her research interests include solid and hazardouswaste management, water quality and treatment, energy usage, environmental impact and riskassessment.

Kruttika Apshankar-Kher graduated in Civil Engineering from Pune University in 2010 and received her Master’s degree in Environmental Engineering from VNIT, Nagpur in 2012. She is currently a Research Scholar in Environmental Engineering in IIT Kharagpur. Her research topic is drinking water treatment using electrocoagulation.

Arpit Malav graduated in Civil Engineering from IIT Kharagpur in 2015. Presently, he is working for a consulting firm.

Dr. Anil Kumar Singh was retired as Chief Scientist from CSIR-Central Institute of Medicinal and Aromatic Pants (CSIR-CIMAP), Lucknow, India on 31 August, 2014 after serving the organization in various capacities for more than 33 years. Thereafter, he had also served the institute as Consultant till 2nd September, 2016. Dr. Anil Kumar Singh was involved in dissemination of medicinal and aromatic plants related knowhow, technologies and services to several thousands of people throughout the country through interactive meets, farmers’ fairs, exhibitions, trainings, demonstrations, correspondence, and print and electronic media. Dr Singh has published over 80 papers which include research papers, review and popular articles, besides contributing in 5 books and several farm bulletins published by CSIR-CIMAP. Dr Singh had visited UK, USA, China, Singapore, Malaysia and Vietnam under various official assignments.

100 CONSULTING AHEAD – VOL. 11 – ISSUE 2

Author GuidelinesPerspective Consulting Ahead is devoted to the publication of articles advancing knowledge through research and cases in all sectors and disciplines of consulting. The objective of “Consulting Ahead” is to become a source of innovative thoughts, knowledge and information of concern for consultants and their clients and other stake holders namely policy makers, academicians and professionals from various disciplines. Our endeavor is to position this journal as a world-class journal on consulting.

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Author of article, month & year of journal, title of article in inverted commas, title of journal underlined or in italics, Volume ofjournal, Issue number, Page number of the journal that the article begins on, or pages it starts and finishes on. For example: Fage,J.D. 1989 "African Societies and the Atlantic Slave Trade" Past and Present no, 125, November 1989 pp 97-115.

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From a book:Author of the book, year of publication, title of the book, name of publisher and place of publication. For example, Chase R.B.,Aquilano N J., and Jacobs F.R., 2002, Operations Management for competitive advantage, Tata McGraw-Hill Publishing CompanyLtd, New Delhi, India.

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