Samir K. Srivastava

Towards estimating Cost of Quality in supply chains

After focusing on Cost of Quality (COQ) at all levels within their internal operations, companies need to consider the supply chain upstream as a first step towards addressing COQ-related issues across their supply chains. This paper is a first step in this direction. In this preliminary study, we determine COQ at selected third-party contract manufacturing sites of a world-leading research-based pharmaceutical company in India. Data for the year 2005–2006 were collected using the Traditional Method, the Defect Document Method, the Time and Attendance Method and the Assessment Method through interviews with internal customers, and check-sheets at the contract sites. Various quality cost elements were identified and categorized under prevention, appraisal, internal failures and external failures. We estimate quality costs in monetary terms as per PAF (Prevention-Appraisal-Failure) model and use standard DMAIC (Define-Measure-Analyse-Improve-Check) methodology for analysis. We identify significant COQ drivers in this healthcare supply chain and suggest measures to address them. Finally, we suggest directions for future research.

Value recovery network design for product returns

Purpose – The purpose of this paper is to use a conceptual model from literature for designing value recovery (VR) networks for three categories of post‐consumer product returns.Design/methodology/approach – A bi‐level optimization model is developed to determine the disposition decision for refrigerators, washing machines and passenger cars in the Indian context using data for product returns from literature. Using standard off‐the‐shelf software, the break‐even values of returns are calculated for setting up various VR facilities under different scenarios to maximize profits for a ten‐year time‐horizon.Findings – The VR activities are profitable for all the three categories of products beyond a certain minimum quantity of returns. Experimentation across the three product categories shows that presently remanufacturing is not a viable economic proposition in the Indian context. Further, the VR network design suggested by this approach is volume flexible.Research limitations/implications – A “push” system...

Logistics and Supply Chain Practices in India

This paper seeks to comprehensively examine and present the state of logistics and supply chain practices in India. We consider the two separately as they have still not integrated seamlessly in the Indian context. Our study is based on both field observations and secondary data. We focus on supply chain collaboration and partnerships, supply chain structure, facilities network design, transportation and logistics and the role of Information and Communications Technologies (ICT). On-site observations and informal discussion and interviews with middle and top managers of 25 select firms are carried out. These are substantiated with data and information from literature and other secondary sources. We analyze and assess logistics and supply chain practices in order to discern important issues such as emerging trends and areas of concern. We also highlight and address issues related to supply chain managers, Indian policy makers and other stakeholders

Propagation of risks and their impact on performance in fresh food retail

Purpose – The purpose of this paper is to carry out structural analysis of potential supply chain risks and performance measures in fresh food retail by applying interpretive structural modeling (ISM). Design/methodology/approach – Inputs were taken from industry experts in identifying and understanding interdependencies among food retail supply chain risks on different levels (sourcing and logistics outside the retail stores; storage and customer interface at the stores). Interdependencies among risks and their impact on performance measures are structured into a hierarchy in order to derive subsystems of interdependent elements to derive useful insights for theory and practice. Findings – Using the ISM approach the risks and performance measures were clustered according to their driving power and dependence power. Change in/inadequate government regulations’ are at the bottom level of the hierarchy implying highest driving power and require higher attention and focussed mitigation strategies. Risks like...

Risk propagation and its impact on performance in food processing supply chain: A fuzzy interpretive structural modeling based approach

Purpose The purpose of this paper is to identify various risk drivers which affect a food processing supply chain and to create a map of how those risk drivers propagate risks through the supply chain and impact important performance measures. Design/methodology/approach This study involves experts from food processing companies to elucidate the contextual relationships among the risk drivers and between risk drivers and performance measures. This is used to quantify the relationships and to determine the indirect and overall relationships applying Fuzzy Interpretive Structural Modeling. Findings Three categories of risk drivers which Indian food processing companies need to pay maximum attention to minimize risks are identified. These are supplier dependency and contracting, supplier variability, visibility and traceability and manufacturing disruptions. Analysis shows that collaborating with suppliers and logistics service providers, developing mutually beneficial contracts with them while ensuring that adequate technology investments are made can significantly mitigate risks and consequently improve margins and lead to revenue growth. Research limitations/implications This study has been carried out with experts from large food processing companies in India, and hence, the results cannot be generalized across other types of food processing companies. Practical implications The proposed methodology can help understand the interrelationships between supply chain risks and between those risks and performance measures. Thus, it can help a food processing company to create business cases for specific supply chain risk mitigation projects. Originality/value This study is one of the earliest to create a comprehensive risk propagation map for food processing companies which helps in quantifying the impact the risk drivers have on each other and on performance measures.

Leveraging the social welfare chain to provide resilience during disaster

ABSTRACT Due to the rampant increase in disasters globally, resilience in supply chain and logistics is receiving greater research attention in various parts of the world. This paper considers the role and contribution of social welfare supply chains in providing resilience. This is a causal phenomenon which has been studied through an exploratory research by building a framework from extant literature, a case study on an Indian non-governmental organization and tested through a social network analysis. We show how in the wake of a disaster, these social welfare supply chains become enablers. The paper provides an inkling into how to improve community resilience in times of disaster. Further, we show how these supply chains use social cohesion embedded in the structure to provide efficiency, diversity and adaptability, thereby bringing resilience into the supply system. Another contribution of this study is the use of visualisation and analysis of social media representation tools for social network analysis in operations.

Benchmarking Indian General Insurance Firms

Purpose – The purpose of this paper is to benchmark the solvency status of Indian general insurance firms.Design/methodology/approach – The paper collects, compiles and analyses the key financial, operational and business data of eight Indian insurance firms. The authors first decide on initial firm‐specific economic variables and use data of last five years from IRDA Reports and Company Annual Reports. The NAIC IRIS ratios method was used to obtain an initial risk classification. This was used as a proxy of insolvency risk. Linear regression and logit techniques were thereafter applied to estimate the significant factors (direction‐wise and magnitude‐wise) which influence insurer solvency.Findings – The results suggest that the factors that most significantly influence Indian non‐life insurers are lines of business, the firms market share, the premium growth rate, the underwriting performance and the claims incurred. Further, the factors which have the strongest effect are market share, change in inflat...

Analysis of barriers to implement additive manufacturing technology in the Indian automotive sector

Purpose A spurt in the usage of additive manufacturing (AM) is observed in industrial applications to produce final parts along with rapid prototyping and rapid tooling. Despite the potential benefits of on-demand and on-location production of customised or complex shape parts, widespread implementation of this disruptive production technology is not yet visible. The purpose of this paper is to examine the various barriers to implement AM in the Indian automotive sector and analyse interrelations among them. Design/methodology/approach Based on the extant literature and discussions with industry experts, ten major barriers are identified. The authors use a modified Fuzzy interpretive structural modelling (Fuzzy-ISM) method to derive strengths of relationships among these barriers, develop hierarchical levels, and thereafter group and rank these barriers. Findings ISM diagraph is developed to demonstrate how the barriers drive one another. Production technology capabilities and government support emerge as the most critical factors, with high driving power and medium dependence. Research limitations/implications While identified barriers may be similar across the automotive industry, generalisation of results for interrelationships and ranks in other industries may be limited. Practical implications The findings may be useful to managers to develop suitable mitigation strategies, and take more informed decisions, with individual focus, level focus or cluster focus. Social implications Findings clearly establish that the role of management and government is crucial in mitigating workers’ resistance to AM implementation. Originality/value This paper contributes to AM literature by the structured presentation of the barriers to implement AM in the Indian automotive sector. It also extends the Fuzzy-ISM method by presenting calculation of indirect relations using the appropriate max-product composition and in ranking the barriers.

Managerial implications from Indian case studies on e‐reverse auctions

Purpose – The purpose of this paper is to investigate eRA implementation experiences across a diverse group of firms and sectors in the Indian context to derive useful insights for theory and practice. Design/methodology/approach – A qualitative multiple case study following direct observation of object reality. The data analyzed includes written documentation, archival records, physical artifacts and unstructured interviews with key eRA personnel. Findings – eRA work best in a competitive, high capacity marketplace and are the dominant strategy when the focus is on low search cost per supplier, when the percent reduction over time in the price offered by the current supplier is low and when the product is standardized. The optimum number of bidders is 5 -10. Most of our findings are in line with literature but some of them differ too. Research Limitations/implications – The small sample size and case method approach limits the ability to generalize the findings. The firms were selected as a convenience sample and so may not be truly cross-sectional. Practical implications – eRA improve effectiveness of the sourcing process and facilitate access to new suppliers. They also lead to standardization of sourcing procedures, reduced order cycle, reduced prices and generally higher service levels. Originality/value – Our work is perhaps the first on eRA practices in India. We describe the practices in detail and based on this develop a framework for eRA process and provide detailed and concise guidelines for managers.

Managing Capacity at Sparsh Call Centre

Bangalore based Sparsh Call Centre was set up as a subsidiary of the major telecom software company IP-Trinity, with ambitious plans of becoming a significant player in the booming BPO (business process outsourcing) space. Its strategy, in line with that of its parent group, was to focus on telecom related services. Sparsh began its operations in 2002 with its first client Alfa, a US based VOIP telephone service provider and had three other accounts and employed over 400 people. Financial performance had been lacklustre and top management including Kumar, Director (Operations) was carrying out a review. Operationally, everything appeared to be fine. People management was, to a great extent, managed by sophisticated workforce management software, supplemented by supervisory actions by managers.This case is useful in highlighting the complexities of managing call centres and the unique people issues involved. This case illustrates that besides operational efficiencies, there is a need for a fit between strategy and scale of operations. In particular, high employee attrition can cause reduction in service quality as well as reduced capacity. Fast scale up of operations may be needed to make call centres economically viable. Cost effective innovative retention schemes may be needed to retain call centre staff to achieve this scale up.