EMERGING MANAGEMENT PARADIGMS – MANUFACTURING SECTOR

By: V S RANGARAJAN Posted on: 2008-02-27 ** Print Article ** ** Copy Article ** - Category Feed

Article Summary: Lot of developments have taken place in the present day manufacturing sector compared to the level of the sector which was two decades back due to the following factors

EMERGING MANAGEMENT PARADIGMS – MANUFACTURING SECTOR




I) INTRODUCTION

Lot of developments have taken place in the present day manufacturing sector compared to the level of the sector which was two decades back due to the following factors

a) Customer’s Tastes and Preferences

Customers have become more open minded, risk taking, spend thrift ,etc. Their per capita income has increased . Their disposal income has increased . Their willingness to buy new / imported products has paved way for developments in the manufacturing sector. Consumers have come out from their conventional thinking to reality . The consumers to day go for Lasic operations to solve the problems of eye sight irregularities thereby avoiding the usage of spectacles. Consumers have started taking medicines to reduce or increase weight giving very much importance for look / appearance . All the members of the family go to job in all the three shifts and ready to spend money for domestic necessities. The consumers accept the five sizes of men’s shirts ( viz ) small, medium, large, extra large, XXL, etc catering to the entire population. Thus the consumers are opening their doors to manufacturers to try new innovative ideas
The consumers have become more health conscious and hence has shown interest in buying only Eco friendly products like Eco friendly Textiles, Food products, etc

b) Government Policy

The Government in the process of Globalisation, Liberalisation & Privatisation open up the doors of manufacturing sector to develop . This polisy measure resulted in development in tecnology, economy, standard of living of people, etc.

c) Financial institutions / Banks

Availability of funds at low rate of interest due to increased competition in the banking sector motivates the manufacturers to plan for modernisation , expansion, diversification, etc

d) Machines and Raw materials, other materials and chemicals

Under the recent Government policy licencing & Poduction of Plant and Machinery and import of machinery ( even import of second hand machines ) are allowed. Availability of all kinds of machines has motivated the sector to take up modernisation programs

Similarly the supply position of the materials has increased considerably

e) Man power vailability

Emergence of more number of technical colleges, institutes, universities of both Indian and foreign origin in the country has facilitated adequate supply of skilled man power to the manufacturing sector

f) Interest of MNC’s to set up manufacturing facilities in developing countries

Considering the availability of natural resources, cheap labour, etc the Multi National Companies have shown lot of interest in setting up units in developing countries

All the above mentioned and other factors have created ample scope for the manufacturing sector to grow with more and more inventions / innovations possible

II) FOLLOWING ARE SOME OF THE MANAGEMENT PARADIGMS IN THE EMERGING MANUFACTURING SECTOR

1) Production at the Buyer’s point / Dealers premises

The generic item / core item is produced at the main manufacturing plant and it is transported to the dealer’s premises. The concentrated derivative items are supplied in small quantity concentrated packages. Then as per the customer’s requirement the final product is produced at the dealer’s premises using small machines

Paint companies concentrate on production at dealer’s premises to cater to small orders.
The dealers have computers ( with the software supplied by the company ) which can exhibit different colours shades to the customers to choose any one colour of their liking. The dealers operates the small machines which is kept in his premise to produce that color of the required small order quantity by blending the white base paint with the powder using the machine at his premise. Thus the dealer maintains only the base paint and color powder maintaining minimum inventory

2) Water

Some companies in the manufacturing sector gives maximum importance to the water being used as one of the ingredients of the product produced
One of the leading sweets and eatables producing company brings pure and potable water from Siruvani river Coimbatore for their production
This shows how water is important for production

3) Effluent Disposal system – Use of Aqua farms

Companies before letting out the polluted water ( containing vegetable waste ) in the agriculture lands first send polluted water to the ponds having fishes. The fishes eat the vegetable particles in the pollutant thereby making the polluted water into water permissible to let into agricultural land.( The fishes eat the potato starch in the pollutant discharged by the Textile Sizing units )

Some vegetable processing companies habitat animals like cow, rabbits, pigs, etc to eat the vegetable wastes making the environment clean

4) Exclusive Packagong material

Some companies to protect the duplication of their product from the competitors who indulge in unethical practices use exclusive packing materials using special methods

The company adopts special unique technology , buys or produces the special packing material that no other company gets it to ensure that the brand of the product made available in the market cannot be duplicated by others

The production of the packing material division will be for the Captive consumption of the unit only.

Metal Box was supplying the Tin containers only to one customer

5) Logistics

Now a days the manufacturing sectors are interested in minimising the transportation cost to the minimum in all the possible ways. The management operates on transporting the finished product to the market and also arranges to transport back the required raw material to the factory from the same place where the finished product is unloaded .

T his way the transportation cost is reduced by 50%

6) Backward Integration – for Uniformity in Raw material Procurement

The large factories to ensure uniform Raw material supply ( particularly Agriculture produce ) going in for huge agricultural land purchase and farm sector cultivation of agricultural produce in the nearby area.

This facilitates the manufacturing sector in procurement of regular supply of uniform quality raw material at cheap cost and assures expected performance of machines at the production stage

Large company has purchased huge land area for cultivating Tomato to produce Ketch up from it

7) Reducing the energy cost - by installing alternative source of energy systems

Companies install wind mills as an alternate source of energy utilising the subsidies given by the Government . This way the cost of energy used for production is reduced considerably

Textile spinning mills located in and around Madurai have installed wind mills

Textile processing mills have installed solar energy systems to heat water for the requirement of dyeing / printing operations

8) Modernisation

To maintain quality , to minimise repairs and maintenance cost, to reduce cost of production, to explore the export opportunities, to tap the scope of import substitution, to minimise consumption of natural resources, etc manufacturing sector has started implementing modernisation programs regularly.

Companies have stared allocating sufficient funds in the Reserves and Surplus account ( before declaring the dividend to the promoters ) to make use when need arises for modernising the machines

This way the companies keep pace with the changing technology trend

9) Increasing the Material Realisation


In spite of the companies working hard to realise the maximum of the input material during production, a small percentage of the material goes waste. Companies are introducing new technologies even to process such waste to realise products from these type of waste thereby adding value to the waste

Cotton Textile Spinning mills during the process of Spinning yarn using Ring Spinning technology incurs fibre waste. This waste when it is sold as fiber waste the unit gets only Rs 7/ -per Kg. When the waste is converted into coarse count yarn the product fetches selling price of Rs 50/- thereby yielding profit of Rs 15/- per Kg

10) Manufacturers prefer to sell in their own Brand names

Manufacturing unit ‘Small or Big’ sell in your own brand name is the trick of the trade to day

No buyer comes to the factory to see how big is the factory / the technology being used in the factory, the infrastructure facility, etc especially when the company is selling consumer product to the consumer market

This is the right time to introduce new manufacturer’s brand in the market. Now people are confused with availability of many brands in the market

Manufacturers are realised that Attractive packaging, excellent quality of the product, marketing the brand through well known dealers, etc plays important role in establishing the existence of the company and its products in the minds of the consumers

This is true for both Domestic and international markets

11) Uses the Direct feed back obtained from the consumers for product improvement


With the help of the e- marketing the products are sold directly to the consumers and they are encouraged to provide direct feed back on product improvement

12) Machinery installation based on the Bulk buyer’s requirement – Customer Relationship Management concept

Manufacturers in the process of adopting CRM, go to the extent of taking the advises / suggestions while installing the machines for the production of the product in his unit.

In the Textile Ready made Garment industry if the Bulk buyer is from Germany he may insist the manufacturing unit doing job work to install German machines Once the buyer is convinced on the Promoter’s capabilities and honesty he provides financial support for working capital funds, consultacy support, etc for mutual benefits

This way the manufacturer is tuned to cope with the customer’s requirement to grow with the customer

13) Winning Buyer’s Confidence –Installing Image boosting machine

The manufacturers particularly exporters need to convince the bulk buyers on the production and shipment of the goods sent

Usage of a particular technology machine in an intermediary process in the production facility indirectly conveys the message to the customer that the unit is using quality raw material and follows good production practices.

The manufacturers to convince the Buyers that only quality production is being carried out in his factory uses these type of Hi Tech Bench marking machines

In Textile Cotton Spinning mills using the Schlafost Auto Coner Cone Winding machine, Germany ( costs very high to the tune of Rs 150 lakhs per machine compared to less sophisticated machines costing Rs 20 lakhs per machine ) to wind the yarn, indirectly conveys the message that good production practices being followed in the factory

14) Merchandising Concept

Present day manufacturers believe in Out Source most of the components which go into the product retaining only the core component of the product under its production facility

Through proper Supply Chain Management / appointment of Merchandisers / Buyer’s agents manufacturers establish Tie up arrangements with component manufacturers to ensure regular supply of components

Textile ready made garment manufacturers does the function of only tailoring job buying the fabric and all the other components ( viz ) buttons, zippers, labels, etc required for making garments from the outside manufacturing units

15) After Sales Services - Either through own service stations or through Authorised service Agents

The opinion of the present day manufacturers is that it is quite unfortunate that the consumers blame the production process when the product ‘s performance is not satisfactory during usage and maintenance not accepting the mistake of them in not using /not maintaining the product properly

As we all know the performance of the product not only depends on quality production of the product also depends very much on the maintenance and usage of the product.

Hence in order to avoid the complaints on the performance of the product and to attend to repairs promply and efficiently the manufacturing companies have started taking up the maintenance jobs either through its own service stations or through its Authorised Service Agents

16) To ensure Transparency, Uniformity, etc – International Standard Organisation ( ISO ) certification

The Equity partners / promoters of the company are investing from different locations of the world. This is more so after Globalisation

The partners are interested in having control from their own destinations through on line facility using computers

To impart, educate, and follow up on production procedure the promoters of units want the personnel of the units to take the advises of the certifying agencies in this regard

All the manufacturing sectors prefer to obtain the certification to convince the customers also

17) Intra - preneurship concept

Manufacturers to minimise the over head cost, to minimise the level of operation controls, encourages its own employees to take the divisions / departments of Production department as a Business Venture for them based on their capabilities

Employee pays rent / lease amount for the infra structure / machines etc taken for rent from the company

The manufacturer company makes its division a Profit Centre

The company provides order , infra structure, input material, financial support, etc to the Intrapreneur

IBM practices this type of Intrapreneur Development activity to its employees

Thus the employee is given an opportunity to make more money by the way of profit. Thus both the parties ( viz ) employer and the employee are benefited

18) Equalising the Life Span of the Parts / Components of Product thereby reducing Cost and encouraging Use and Throw Concept

By equalising the Life Span of the parts / components of the product the total replacement of the product is encouraged

This concept helps to minimise the cost of the product avoiding spending more cost on certain components of the product which may be actually uncalled for

This way the ‘ Use and Throw ‘ concept is imparted in minds of the consumers by the manufacturers to crate demand for the total replacement of the product

Consider the Writing Pen product. Those days people use to buy pen for say Rs 15/- and use it for years together by changing the worn out parts like ink refill, nib, cap, etc. Now a days people buy pen for Rs 1/-, use it for say one month and throw it off

19) JIT Inventory

Manufacturing units with the developments taken place in Port Management, Transportation, Infra structure, etc are far maintaining Just In Time Inventory system in their manufacturing units.

They are not interested in locking up their funds in maintaining more inventory.

20) Favourable EXIT Policy


The EXIT policy of Globalisation process has encouraged the units to set up units in developing countries like India, China, etc

Cmpanies establish manufacturing sector in India due to the favourable EXIT policy of the Government

According to this policy companies employing less than 1000 workers can opt for closing down their shutters if they find any problem in the project feasibility ( in Techno economic feasibility aspects ) without much difficulties as it was difficult prior to the amendment of the policy

Hence this has increased the scope for the companies to set up large scale plants of their own in India

21) Investor’s insist on Turn Key Consultancy services from the consultants to set up manufacturing units

The technological developments are taking place in a very high rate

The experience / expertise of the experts available in the industry are getting out dated with the change in technology of the field

Hence the companies entering manufacturing field insist on the consultants to provide them with Turn Key consultancy service ( ie ) providing Technical and Industrial consultancy services which includes selection and installation of the machines, take trial production, recruit personnel, provide training, arranging raw material tie up for ensuring regular supply, etc along with the pre implementation services of Preparation of Project report, Loan Syndication, Company formation, etc

Thus the manufacturing sector takes all necessary steps to implement the project successfully and manage it efficiently

22) Process Re engineering – Consultancy services, Research and Development activities, Employees suggestions, etc

To avoid duplication of processes, to introduce new improved methods followed by the industry, to eliminate / add any process to the existing process which helps to reduce cost of production, improve quality of the product, etc manufacturing sectors employ consultants on continuous basis.

Similarly units are also appointing Employee Committees to provide suggestions in this regard

Employees are motivated towards this movement


23) Safety Audit – Safety aspects of the neighbouring Society

Manufacturing Sector companies conduct Safety / Society audit. To ensure that the people in the nearby villages and towns do not get affected due to the production operations of the unit. This is being carried out by the manufacturing sector by conducting regular survey with the people residing in that area

This way the manufacturing units ensure safety to the Society

The company Sterilite is conducting this type of study regularly

24) Customers restrict the speed of the machines - output

Sometimes the bulk buyers go to the extent of recommending the speed of the machine which is working in the unit doing job work for the buyer.

This they do particularly to avoid units working the machines at very high speeds than the recommended speed which may affect the quality of the product during usage of the product by the consumers ( to ensure post purchase satisfaction of the consumer )

The cotton yarn buyers from Japan insist the mill owners in Southern states of India not to run the Carding machines in the Spinning department at higher speeds than the recommended speeds ( the recommended speed is 20 rpm, the mills run the machines at 36 rpm and more to get increased productivity )


25) Unique Selling Proposal ( USP ) even in the Product Features

The manufacturers include special product features to its brand to take advantage of USP of its brand in the market. This way additional value is provided to the consumers

Wiper in the Car rear view wind screen

26) User friendly aspects

Manufacturers have started giving too much of importance for the User Friendly Aspects of the product to cater to less educated / skilled Market segment

This way every individual of the Indian population is motivated to use the product

To day Maruti cars are used by the lady members of the family unlike the cars those days which were in existence not suitable for ladies to drive

Cell Phones are used by every body to day

27) Vertical Structure

Now a days Manufacturing units ( especially units which are installing light weight machines and processing light weight raw materials like Textile Ready made Garment industry ) prefer to set up production facility in multi storied buildings to minimise the investment cost on Land and building

28) Reduction on Investment Cost and Operating Cost for the Utilities

Like in residential flats common facilities like steam, lift, humidification, air conditioning ,compressed air, effluent treatment , etc are being shared among the industrial flats located in the same building and cost shared proportionally based on consumption rate.

This is very much applicable for the units located in the industrial estates and multi storied buildings

29) Out Source -Production related Services

Manufacturing units prefer to out source most of the services like inspection of incoming materials, certification on the quality of the product produced, training of employees of production department, maintenance of machines used for production, etc keeping only the core production activity with them

30) Consumer Tastes and Preferences and Quality Standards to cater to the world market

The improvement in the transport operations ( shipping, air cargo, truck, etc ),the Globalisatoin, Liberalisation, concepts the manufacturing units set up their factories not considering the criteria of Proximity to Market.

The units aim for achieving International Quality Standards for their products to meet foreign buyers requirements and hence interested in getting ISO Certification

The Consumer Forum and the Consumers are particular about the Eco friendly aspects of the products being used by the people.

.Say the clothing textiles which is bought by the German consumer is very particular that the textile sold should have been dyed with Azo free dyes. They are of strong opinion that Dyes containing Azo chemicals cause skin cancer when the textiles come in contact with the human body.

The manufacturing sector keep these factors while planning production for the international market

31) Value Engineering

Consumer tastes and preferences are changing often. Technology change taking place rapidly.
Consumers are not for durability. Hence Cost / Price plays crucial role than durability.

Hence Manufacturing units take all efforts to reduce the material cost by replacing the costly material with less cost material at the same time retaining the functional value of the product the same

Manufacturers using Value Engineering concept have come out with Wrist watches priced at Rs 50 / each

32) Government policy to encourage Co operative Societies to help the Agriculture procedure minimising wastages by purchasing un sold produce and converting into value added products


It was estimated that nearly 30% to 40% of the agriculture produce is being wasted every year in India.

This happens because Indian consumers prefer raw vegetables ( short life of the agriculture produce)

Especially certain products like egg, flower, etc have very short life span.

The Government Sector with the intention of protecting the interest of people engaged in agriculture produce has come forward to encourage setting up of manufacturing plants in those locations by the co operative societies.

The purpose of these Co operative societies is not to function only for profit motive but to protect the producers from incurring loss due to unsold goods

Government wanted to start Egg Powder manufacturing plant in Namakkal District to protect the egg producers in the district by purchasing the unsold eggs every day from them. But one of the conditions laid by the Government was to purchase eggs at 50% of the prevailing market price.

Once the product is converted into Egg Powder the life span is increased considerably,
This concept is being adopted by some of the Manufacturing sectors

33) Statistical Quality Control is gradually being replaced by Quality Control while Production itself using computerisation

The Manufacturing sector have started realising that SQC method is a Post mortum exercise only helps in rectifying the defects on the machines for the future product produced

At the present day production managers machinery manufacturers have introduced on line quality check using computers to bring to the notice of faulty production while actually producing the product.
In Textile spinning mills the spindle in the Ring frame which is producing faulty yarn is displayed on line on the computer in the Managing Director”s cabin

This way the management is taking necessary action to rectify without allowing even a small quantity of faulty production avoiding rejections at the final stage

34) Easy and accurate Measurement of Productivity using Computers


The machine productivity and labour productivity are measured easily and accurately using computers which are attached to the machines

This helps the management in rewarding, punishing, the employees

35) Robots

Manufacturing sector started using Robots in place of human operators especially where dangerous chemicals , nuclear operations etc are carried on keeping safety aspect in mind particularly to protect the employees from noise pollution / air pollution

36) Application of Industrial Bio Tech to solve Pollution problem

To achieve multi fold productivity, to substitute environmental ingredients with Bio degradeable products

Application of Geo Textiles in the construction of Roads to solve the waste disposal problem

Using Bio tech the Agro engineering experts have invented the know how of production of colour cotton fibre

This Agro produce eliminates Textile fibre dyeing / coloring process to impart color to the fibre thereby avoiding effluent disposal problem by the Textile dyeing units


37) Standardising concepts

The importance of specialisation is picking up

Present day manufacturing sector is of the belief that only specialisation in a particular field will give competitive edge amongst its competitors and will help retain market

The concept of “ Jack of all trades and Master of none “ no more holds good for the present day manufacturing sector which are established with high tech machines with larger capacity, Opt machines for certain specialsed operations to suit the customer needs etc

The sector aims in Win Win situation with the supplier on one side and with the bulk buyers / marketing intermediaries on the other side
Hence they adopt stadardisation concept at two places

a) Product Mix & b) Machinery installation in the factory

Standardisation advantages at the Product Mix
1) increased productivity ( both machine & labour )
2) Less inventory
3) Better Quality production
4) Easy costing, etc

Standardisation advantages at the Machinery installation

1) Less inventory on spare parts
2) Incrased efficiency of the maintenance personnel
3) Better control
4) Helps in easy procurement of raw material and parts for m/cs

38) Ergonomics

The manufacturing sector has taken all efforts in the development activity of the Tools used by both production employees and maintenance personnel of the production department to keep pace with the requirements of the machines to ensure higher productivity of machines

The Hand Knotters used by the Piecers ( worker who put knot between two broken yarn ) in the Cone Winding department of the Textile Spinning mill is a very good example to know how the manufacturing sector takes care of Ergonomics concept to improve the efficiency of the worker both in terms of productivity and Quality production

Another example would be now a days the Tool screw driver used by Carpenters to tighten the screws are of sophisticated type. That is the Carpenter need to only wind the washer on the Screw driver which impart sufficient pressure on the screw to tighten compared to the old method of applying more presurre at the head of the Screw driver

39) Concept of 5 ‘S’

To implement the concept of 5 ‘S’ the manufacturing units appoint Manager Waste Disposal
He takes the responsibility of Segregate, Select, Store, Strengthen and Sell the waste

Manufacturing sector have realised that waste management also yields considerable profit

40) Auctioning of the old machines through On Line internet facility to the world marketr

The manufacturing sector interested in modernising its Plant and machinery can find its buyer through the internet

Tere are many reputed Auctioners who reach the buyers all over the world. This way the sector is benefited in realising better orice for its old machines,

41) Manufacturing sector makes use of venture capital fund scheme operated by Government

As we know Venture Capital Fund Scheme is operated by Government of India, particularly for totally new type of Ventures ( ie ) first time tried technology

The speciality of this scheme is the Promoter has to bring in his funds of 10% of the Project Cost and the balance 90% of amount he borrows from Government. He starts the project . In case the project fails the promoter need not repay the borrowings.

This risk type of borrowings is given by Government to the manufacturing sector to encourage new findings and developments

Manufacturing sector with this encouragement given by Government ,makes use of their funds and the Government funds is commercialising the R&D findings more boldly on new ideas


42) Use of own excess Dry land for effluent disposal - after neutralising

Manufacturing units ( which are in the orange category as declared by Pollution Control Board ) like Textile Dyeing, Paper Mill, etc Procure the neighboring land area to dispose of their treated pollutant water where Plantations of cultivated

This way the manufacturing units convince the Pollution Control Board on Pollution problem

43) Wealth from Waste – Protein from Human Hair

Present day manufacturing sector concentrates on extracting Hi value products from waste ( used for blending in medicinal compositions production ) from human hair

Similarly units are producing electricity from Domestic waste

44) Ambieance and pleasant environment at work spot

Present day manufacturing units aim at providing excellent ambience and air conditioned atmosphere with music system on at the factory like the office atmosphere, to motuivate the workers and to protect the material under process

45) Government Policy on Privatisation

Government sector is interested in Privatising the industrial units retaining only very important core industries like nuclear weapons production, currency printing, etc.

Manufacturing sector have stared entering the once reserved for Government industries even in areas like currency / security paper production, industrial estate development, electricity production, etc

46) Value addition on products from Natural resources

Manufacturing units have realised that the products produced from natural resources fetch very high returns when value is added to it. The manufacturing units invest heavily on High Tech Sophisticated technology and produce Value added products to earn very high profits

Potato when sold as vegetable item fetches only Rs 20 per kg. When it is converted into wafers that fetches Rs 150/-

Similarly when Cotton is sold as fibre it fetches only Rs 25/ per kg. When the same is converted into Branded Denim / Jeans dresses it fetches Rs 2000/ per set which weighs about one kg
Minerals and Metals, Gem and Jewelry, and other natural resource based industries are also witnessing growth in India
The product thus produced is sold to 180 countries in the world having sufficient purchasing power. This may result in shortage of food for the poor Indian population not having enough purchasing power to buy value added eatable items



47) Income Tax exemption and other concessions - for the export earnings


As per the Government Income Tax policy earnings through export of products is exempted from income tax. To avail this benefit the manufacturing sector is taking all efforts to produce and market for the export market

48) 100% Export Oriented Units ( EOU ) – Useage of Cheap labour

No import duty for the machines and materials imported from foreign countries for the units producing and exporting their entire production ( ie ) 100% EOU

Manufacturing units to take advantage of the cheap labour imports costly raw materials without duty & convert the same into finished products for exporting the same

The raw material is imported from some countries and the finished product is exported to different countries

49) Service sectors support the Manufacturing sector

The service sectors like insurance, banking, inspection and certifying agencies, training and consultancy orgnisations, etc support the growth of the manufacturing sector.

With the insurance coverage service given by the insurance companies ( for damages caused by riots, earth quake, rains, floods, etc ) the manufacturing sector takes risks boldly by investing in industrial projects

The foreign banks are ready to provide loan to the industries at very low rate of interest like 3%, 4%, etc

50) Material Transfer / Material Handling Equipment in Manufacturing sector

Introducing sophisticated automatic material handling equipment to integrate the individual machines of the intermediate processes of the Production department ultimately to minimise the human component in transferring the raw materials, semi finished goods, within inter departments.

Present day manufacturing sector uses pneumatic suction arrangements, conveyor belts, etc .for transferring the Material between departments avoiding workers for the job

The intermediary process machines are and made into single plant process shed. This method of transferring the out put material of previous process machine to the subsequent department machines as feed / input material automatically is done by integration of machines throgh enclosed pipe lines ( with Glass windows ) which eliminates air pollution

In the modern cotton spinning mills the raw material cotton fibre is fed at the Blow room department starting stage to ( fibre blending machine ) and later on the fibre / Material moves to the subsequent departments through air section pnuematic process automatically to the subsequent stage

The material is fed at one end and the finished product is received at the other end eliminating manual handling of material in the intermediary production departments thereby saving labour cost, improvement in quality, etc

This system eliminates the human error thereby improving the quality of the product during production

51) Recruiting and retaining only suitable technical person for the prevailing technology

The manufacturing sector witnessing drastic developments in the Technology being adopted in anufacturing and during usage of product
Present day manufacturers assume that there is not much of difference in qualities of labour with respect to Loyalty to the management. The sector assumes that all most all the employees have equal loyalty personality to their employers. Even if they do not have that quality employers have now a days created lot of check points to ensure that they are not being cheated by employees.

Hence present day manufacturing sector has started giving importance only for the capabilities of the skill that the worker is possessing in the technology being adopted by the manufacturing sector while recruiting them. But the problem for the manufacturing sector has become very serious because of the fast changing technological environment. The need for the skill of the man power totally changes with the changing technology. The relevance of Training of man power has become lost its importance with the fast rate of change of technology.

Hence the companies adopt the strategy of ‘Pay more than the expectations of the employee as long as he meets the technical skill required and sack the employees if he is found unsuitable for the technology being adopted presently by the company and the company recruits another person possessing the technical skill required for the changed technology

This way the manufacturer minimises the cost, effort and time spent on training the employees and adapts to the changes quickly and efficiently

III) CONCLUSION

Companies carry on production activities concentrating only on increasing efficiency, not bothering about the Government policies, not bothering about the consumers origin, not bothering about the background of the employees and from where they come, not bothering about the suppliers nationality / religion / caste / language spoken / culture, not bothering about the neighbors and where they come from, etc giving importance only for the task to be achieved

This is helping all the consumers located at different places to get what they want at competitive prices. This trend in competition will continue in the future thereby making the manufacturing units to survive only if they develop capabilities than the competitors. ( ie ) Survival of the Fittest in terms of Men, Material, Machine, Money and Methodology

As we all know Value to a Customer is Benefit divided by Cost incurred. Companies struggle hard to add Value to the Product and the connected Services by managing all the managerial functions of business ( viz ) Purchase, Production, Human Resource Development, Finance and Marketing efficiently than its competitors.

Some of the examples given in the paper by the author shows how the industries are putting their efforts incorporating in production practices towards improving productivity, increasing efficiency, increasing capacity utilisation, waste recovery, etc

Since the author of the paper is a Textile technologist and a teacher in management studies, has given Textile industry examples

Article Source: http://www.upublish.info

About the Author:
V S RANGARAJAN
educational qualification B TECH, MBA , M PHIL ,( P HD ) EXPERINCE INDUSTRIAL CONSULTANCY 18 YEARS INDUSTRY 3 YEARS TEACHING 5 YEARS

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