EVALUATING THE STRATEGIC POTENTIAL OF ADVANCED MANUFACTURING TECHNIQUES IN INDIAN MANUFACTURING INDUSTRIES E-Book

Dr. Chandan Deep Singh

• Herausgeber: BookRix
• Kategorie: Fachliteratur
• Sprache: Englisch

Veröffentlichungsjahr: 2018

Beschreibung

This research revolves around the impact of Advanced Manufacturing Technologies in Indian Manufacturing industries. Statistics inculcates that a number of industries subsists, which are using different forms of Advanced Manufacturing Technologies. "Advanced Manufacturing Technology" is a generic term, depicting an assembly of manufacturing technologies, which combines both extent and scale capabilities in a manufacturing environment. Advanced manufacturing technology is broadly defined by distinguished authors in their terminologies; Small and Chen, say, it is "An automated production system of people, equipment and utensils for the planning and control of the production process, including the procurement of materials, parts and constituents and the shipment and service of completed products".

Leseprobe

Dr. Chandan Deep Singh, Harleen Kaur

EVALUATING THE STRATEGIC POTENTIAL OF ADVANCED MANUFACTURING TECHNIQUES IN INDIAN MANUFACTURING INDUSTRIES

BookRix GmbH & Co. KG80331 Munich

Chapter 1

CHAPTER 1

INTRODUCTION

1.1 BACKGROUND

This research revolves around the impact of Advanced Manufacturing Technologies in Indian Manufacturing industries. Statistics inculcates that a number of industries subsists, which are using different forms of Advanced Manufacturing Technologies. “Advanced Manufacturing Technology” is a generic term, depicting an assembly of manufacturing technologies, which combines both extent and scale capabilities in a manufacturing environment. Advanced manufacturing technology is broadly defined by distinguished authors in their terminologies; Small and Chen, say, it is “An automated production system of people, equipment and utensils for the planning and control of the production process, including the procurement of materials, parts and constituents and the shipment and service of completed products”. In meticulous, Advanced Manufacturing Technology (AMT) can be defined as any new manufacturing technique, which is likely to cause constructive changes in a firm‟s manufacturing practices, management systems and its approach for the designing and production of various engineering products. Advanced Manufacturing Technologies are classified into two classes: hardware and software by Small and Yasin (1997).

(I) Pure Technical tools (hardware)

(II) Management tools (manufacturing practice software)

Pure Technical tools or Advanced Technical tools (hardware) can be further classified into the following range of technologies.

(A) Computer aided design (CAD)

(B) Computer aided manufacturing(CAM)

(C) Computer numerical control machines (CNC)

(D) Direct numerical control machines (DNC)

(E) Robotics

(F) Computer aided engineering (CAE)

(G) Group technology (GT)

(H) Flexible manufacturing system (FMS)

(I) Automated material handling systems (AMHS)

(J) Automated guided vehicles (AGV)

(K) Bar coding (BC)

(L) Automated storage and retrieval system (AS/RS)

(M) Rapid prototyping (RP).

The Manufacturing Practice Software or Production Management tools are additionally classified into the following array of technologies:

(A) Material requirement planning (MRP)

(B) Manufacturing resource planning (MRP II)

(C) Enterprise resource planning (ERP)

(D) Activity based counting (ABC)

(E) Office automation (OA)

(F) Kaizen

(G) Total quality management (TQM)

(H) Recycling

(I) Business process re-engineering (BPR)

(J) Statistical process control (SPC)

(K) Just – in – time (JIT)

(L) Benchmarking (BM)

(M) Management training (MT)

A manufacturing industry can prefer to compete primarily in one of the two ways – either on cost leadership or on production differentiation, in order to produce similar products at a comparatively lower price, or producing a superior product that differs from its competitors. It is argued that by investing in Advanced Manufacturing Technologies (AMTs), manufacturers would be able to enhance their competitiveness. In other words, AMTs can allow a growth in production of a wide range of varied products, while at the same time, can minimize the overall production cost.

Successful industries have recognized the fact that technology has become a vital competitive tool for success, and the industries are trying to leverage it for their competitive environment. It is a general agreement that the implementation of Advance Manufacturing Technology is a critical component for a firm‟s success. The most significant competitive weapon, however, does not comprise in the range of technologies, but their effective deployment, implementation and ultimately their management. Many organizational, management procedures and policies have been developed to decrease the overall uncertainty in the traditional manufacturing systems. These constraints are reduced or have been possibly eradicated with the use of advanced technology. The usage of computer networks and automated machines provides an efficient information and feedback mechanism, not only for the manufacturing system; but also for the tedious and prolonged systems. “Automated processing times” are extremely reliable; the produced data reports from their machines are authentic, unbiased and in the nick of time, thus most of traditional manufacturing management systems, industrial engineering methodology and operational research techniques for increasing the efficiency and effectiveness of manufacturing systems are irrelevant in today‟s competitive scenario .

The implementation of AMT affects not only the manufacturing division of a plant, but

also the Marketing, Person Resource, Research and Development, and Engineering Design divisions. These technologies transform the design of a plant as well as the relationship between these various interconnected units. The relationship between the firm and its customers also changes; for example, firms can adjust to frequent changes with respect to the demand, more quickly and would be able to offer superior quality, lesser lead times, and enhanced reliability. For organizations that have successfully implemented AMT, the benefits have been outstanding. The liberalization of the economy has opened new windows of opportunities for the Manufacturing sector. Overall the growth of manufacturing industry is sustained on modernizations, investigate and expansion.

This thesis intends to address the competitive priority, level of investment in the Advanced Manufacturing Technology and effect of the AMT on the manufacturing performance in Manufacturing Industries.

A structured questionnaire has been developed to qualify the presumptions; the questionnaire which is used in this study has been incorporated with inputs from various sources: most of the questions have been adapted from formerly published works and henceforth, the preliminary draft of the questionnaire was discussed with the academic scholars and practitioners. The questionnaires were administered by post or mail, accompanying a covering letter to a total of 240 industries, out of which 68 industries reverted back with their data. After the compilation and analysis of the received data, investigation has been carried out on the following key points related to the Manufacturing Industries and AMT.

1.) Manufacturing strategy of manufacturing industry

2.) Different types of advanced manufacturing technologies

3.) Level of investment on AMT

4.) Effect on manufacturing performance after accomplishment of AMT

5.) Efficiency enhancement of manufacturing industries by adoption of AMT.

The liberalization of the economy has opened new windows of opportunity for the manufacturing sector. An increase in the success of Manufacturing Industries is dependent upon Innovations, Research and Development. It is critical not only to remain competitive but also, a series of other significant advantages could be gained by developing and commercializing of new-age technologies.

1.2 MANUFACTURINGSCENARIOIN INDIA

1.2.1AN OVERVIEW

The manufacturing sector plays a significant role in the economy of almost every country in this world, and certainly in all the developed countries. In 1990, India and China had almost the same Gross domestic product (GDP) per capita. After that, driven by its manufacturing sector, China’s economy has grown faster than India’s and its GDP per capita on a PPP basis is 90% higher than India’s Gross domestic product per capita. To attain more rapidly rates of monetary growth, India immediately needs to make stronger its own manufacturing sector. The Indian economy is going firmly on the path of stable growth, even throughout the last decade when other countries were in the grip of a massive slowdown – India continued to enjoy a comfortable economic position.

The growth in the manufacturing sector is dependent on the investment climate. The structural reforms since the 1990 have made some progress, despite of the current setbacks, it is generally recognized that the reform process in India can‟t be reversed, and sooner or later these reforms would be executed. Nevertheless, the long term competitive capability of Indian industries would depend on their manufacture efficiency. Manufacture efficiency, in order, is dependent on the ability to develop, import and adapt for new-age technologies, amongst some other factors. India has made a significant progress in various spheres of science and technology over the last few years and takes pride in having a strong network of Science and Technology organizations, skilled manpower and an inventive knowledge base. Considering the rapid pace of globalization, fast-depleting material resources, and increasing competitiveness among different nations, a need to protect intellectual property and strengthening of technology base have become an important issue. While India‟s technical talent is recognized worldwide, there have been serious institutional gaps in promoting industry- research methodology and interaction with various institutes.

The structural transformation of the Indian economy over the last three decades had been spectacular, mainly due to the growth of its services segment, which now reports for about fifty per cent of the GDP.

However, the rapid growth in the service sector which is attaining maturity, before the growth in the manufacturing industry is not a strong indication. An information-based financial system cannot be maintained in the long run unless it is adequately supported by a growing manufacturing financial system. Furthermore, a service financial system cannot persist to thrive on a long-term basis in a country where over eighty per cent of the population is educated below the middle-school level. Some sectors, such as Information Technology and Pharmaceuticals, compete globally, employing perhaps 2% of the population and bringing wealth to various parts of India. At the same time, around 60% of the population remains dependent upon the Agricultural segment, distribution less than one-quarter of India‟s GDP. Without reforms, the Agriculture will continue to suffer from prevalent under-employment, low wages and depend on the monsoon. This will result in continued urban immigration, but without the expansion of an industrial segment this will lead to a rise of unemployment in many cities. This recognizes that the growth of this pattern is unsustainable.

It is estimated that India needs to create 8-9million new jobs every year, besides of Agriculture to stay at its current unemployment level of seven percent. Manufacturing jobs are ideal for workers, transitioning them out of Agriculture as service jobs require a high level of education and expertise. The revitalization of manufacturing segment can create close to 2.6 Million new jobs every year. With the removal of all quantitative restrictions on imports and the falling import tariffs under the world trade organization regime, it becomes a bigger concern for the Indian industry to improvise its competitive edge.

1.2.2 SOME REMARKS

Indian manufacturing industries have always been pushed from the protected environment of the license-permit-quota regime to an uncertain environment of liberalization, privatization and globalization, which provides intense Global competition. Indian industries quite often follow an opportunistic approach with respect to growth as opposed to the capability-driven approach and paid very little strategic attention to their shop floors in the last few decades. Now gradually Indian manufacturing industries have started re- organizing themselves, as per driven by their Global competition.

In view of the emerging competitive scenario, it is envisioned that Advanced Manufacturing Technologies would be needed for Indian industries to:

Respond to business policy or corporate objectives.

Correct present weakness or to exploit strengths .

Cope up with the anticipated environmental changes.

Get distinguishing capability which is currently not available.

Make manufacturing function strong.

Achieve performance objectives.

Earlier there was a lesser strategic emphasize on manufacturing overpowering focus on structural decisions, such as capacity planning, make v/s buy, and so on. The typical measures of performance were included such as : capacity, planning, utilization of men and machines, labor productivity and manufacturing cost, supply driven environment, manufacturing thrived without much regard to manufacturing excellence, building long term capabilities, benchmarking, global standards improvising on supplier's capabilities and installing quality assurance systems. Following are the characteristics of the Indian manufacturing industry:

Supplier driven environment

Lack of customer focusControl and command regime of governmentMore emphasize on structural decisions such as capacity addition and make v/s buyNo emphasize on innovationLack of strategic focusManufacturing synonymous with the productionReactive role of manufacturing

Performance measure like utilization of men, machine, material etc.

1.3 INDIANMANUFACTURING INDUSTRY

Manufacturing is made up of many diverse sectors, each of which is swayed by the overall-manufacturing ambiance. From the Indian perspective, the major manufacturing sectors are Machinery, Automobile, Electronics and Process Industries.

1.3.1 AUTOMOBILE INDUSTRY

Automotive industry comprises of the automobile and auto component sector, which is one of the key segment of Indian economy with extensive forward and backward linkage with other segments of the economy. The Indian auto component industry has grown exponentially in the past some years, as India has evolved into being a preferred destination for sourcing by Original Equipment Manufacturers and because of the growth of its domestic auto industry. The attractiveness of Indian industry can be explained by the fact that presently around 12 global auto giants have set up their international purchasing offices in India and 150 more are expected. India offers original equipment manufacturers a great cost-quality proposition, thus making it a preferred destination for outsourcing. Indian manufacturers enjoy the advantages of cheaper raw materials and availability of educated, qualified and skilled labor as well as engineers and designers at a comparatively lower cost. Technological advancements which have been made by some of these domestic players, have allowed them to become an integrated partner rather than just another outsourcing partner. Indian automobiles and components are gaining an escalating acceptance in the international market due to their cost competitiveness. The industry expects its growth to continue as domestic manufacturers have acquired superior technological skills. The high export growth rate can be attributed with the improvement in the industry‟s export capabilities and the increasing Global recognition of their competence. Automotive components which are manufactured in India are of finer quality and used as the original components for vehicles made by top international companies such as Mercedes, General Motors and others.

Indian industries are no longer restricting themselves with merely component manufacturing. They are also focused on using their expertise in CAD/CAM and in designing and engineering capabilities by entering into designing and development of components for new product. For example, Toyota Kirloskar will be developing the transmission systems for the entire global requirements of a new vehicle platform of the Toyota. India‟s automotive component industry manufactures an entire range of parts, which are required for vehicle manufacturing. To meet international quality requirements and for tapping with the international market, the Indian auto ancillary units have entered into joint ventures with various Multi National Companies. India holds a favorable position in order to potentially capture a market in exports. It should do so by primarily targeting on components where it has an advantage over other Low Cost Countries (e.g., in skill-intensive components) or in components where it is comparable with them (e.g., simple labor - intensive components, steel, rubber and aluminium-intensive components). This competitiveness is due to its inherited advantage in Engineering skills and emerging capability for continuous improvement as compared with other Low Cost Countries.

1.3.2 ELECTRICAL& ELECTRONICS INDUSTRY