The Editorial Board or Indian Institution of Industrial Engineering will bear no responsibility for the publication or contents of a paper and the authors of such a paper will bear full responsibility for the issues accruing due to infringement of copyright or confidentiality of data. (if any)

02.

04. HELLO COMMANDER

05. MESSAGE FROM THE EDITOR

06. BUILD AROUND A THOUGHT

09. CHOICE OF VARIABLE FOR DESIGNING AN INSTRUMENT

26. MANUFACTURING COMPETITIVENESS THROUGH JIT

30. NANO STRATEGY : FOCUSING ON THE BOTTOM OF THE PYRAMID

32. PAST / PRESENT / FUTURE OF RETAIL INDUSTRY

35. GENESIS AND MANAGEMENT OF R & D PROJECTS

39. TECHNOLOGY MANAGEMENT OF ADVANCED MANUFACTURING TECHNOLOGIES - A REVIEW

42. APPLICATION OF TAGUCHI METHOD FOR OPTIM IZATION OFCUTTING PARAMETERS OF LATHE MACHINE TO REDUCEPOWER CONSUMPTION

46.

51st NATIONAL CONVENTION

47. CHAPTER NEWS

51. 51st NATIONAL CONVENTION OF INDUSTRIAL ENGINEERS: NAGPUR CHAPTER

CEO OF THE MONTH

Prof. K. K. Bhat tacharya

FOR MEASURING ORGANIZATIONAL INTELLIGENCE

Prof. Anuradha Iyer, Dr. Ghosh A. P.

D. K. Singh

Sharu S. Rangnekar

Dr. S. K. Mahajan

R. A. D. Pillai

G. M. Kakandikar, S. M. Bhosle, Dr. V. M. Nandedkar

Vivek A. Deshpande, Anand Y. Joshi, Jayesh Koisha

45. PRE–SYMPOSIUM SCHOOL ON FIELD DATABASED MODELING OF MAN MACHINE SYSTEM

PRE-SYMPOSIUM SCHOOL ON ADOPTION OF AI TECHNIQUES FOR PERFORMANCE IMPROVEMENT OF LOW COST MECHANISATION/AUTOMATION DEVICES.

46. TENTATIVE PROGRAMME :

PresidentEr. Arun Balakrishnan Chairman & Managing Director Hindustan Petroleum Corporation Ltd.

ChairmanCommander Bhaskar M. Bhandarkar

Vice ChairmenShri. P. V. Rama RaoShri. R. Sampat

Hon. SecretaryShri. Ashok H. Ippa

Hon. Jt. SecretariesProf. T. R. SukumarShri. M. K. Pande

Hon. TreasurerShri. T. R. Guliani

MembersProf. Ashok K PundirDr. K. K. PadmanabhanProf. M. V. NarayananDr. S. R. GollapudiShri. S. S. DipnaikDr. Verghese Mathew

Chapter NomineesShri. S. S. Bharadwaj - Coimbatore Shri R. Sampat - DelhiShri. M. K. Pande - MumbaiShri. P. K. Sasmal - KolkataShri. K. S. Pratheep - Cochin

Chairman, Board Of ExaminationsProf. K. K. Bhattacharya

Executive DirectorShri. S. C. Minocha

Prof. K. K. Bhattacharya

NOVEMBER 2009. 5

National Council 2009 – 2010

A-PDF Image Downsample DEMO: Purchase from www.A-PDF.com to remove the watermarkA-PDF Image Downsample DEMO: Purchase from www.A-PDF.com to remove the watermark

Having completed his B. Tech. in Mechanical Engineering with Honours from Banaras Hindu University (BHU) in 1974, Mr. Singh started his career with M/s. Hindustan Lever and later moved to M/s. Hindalco. He joined Bharat Petroleum Corporation Ltd. (BPCL) in 1978. During his 30 years of service in BPCL, Mr. Singh has held various assignments, both in the Refinery and Marketing divisions of the company. Some of the important positions held by Mr. Singh include, General Manager (Supplies & Distribution), Strategic Business Unit (SBU) Head for Industrial & Commercial (I&C) and Executive Director (LPG).Mr. Singh has been associated with various world bodies such as World LPG Forum headquartered at Paris, World Energy Council and World Petroleum Congress to name a few. He has widely traveled across the world and was associated with several international decision making bodies.

thMr. Singh took over as Director (Refineries) with effect from 8 March 2006. In his current position, he is responsible for the operation of the Mumbai and Kochi Refineries, joint ventures in refining, research & development, corporate planning, international trade and petroleum exploration activities. Apart from BPCL, he also serves on the boards of other BPCL Group and subsidiary companies, namely Numaligarh Refinery, Bharat Oman Refineries Ltd. (BORL) and Bharat PetroResources Ltd. (BPRL).MKP: How has the global economic crisis affected the oil industry? RKS: Global economic slow down has affected all the sectors, to the extent that globally consumption of petroleum products in various sectors has reduced, affecting the performance of Oil Industry. This has however not had a major impact in India, as Indian economy is largely domestic driven and GDP in our country continues to grow in excess of 6%. Therefore Oil Companies in India by and large have been steady, except slight reduction in consumer sales category. The positive thing that has happened concerning downstream companies in India is the fact that crude prices have come down because of economic crisis,

leading to reduction in import bill, as India imports large quantities of oil. The upstream companies in India however were hit. The negative impact on downstream oil companies has been on account of oil prices having not been increased in line with the international prices, resulting in high under-recoveries in the last few years. Though the under-recoveries were compensated by the Government, the same was done in the form of oil bonds having no immediate liquidity. This did cause liquidity problems in our day to day operations.MKP: How has Bharat Petroleum responded to the situation?RKS: The liquidity problems in the last financial year were dealt with by taking various measures such as effective cash management, inventory management and prioritization of capex, etc.MKP: How has the economic slowdown in the last financial year affected the performance of your company?RKS: Baring the cash crunch, all other performance parameters of the Company were quite sound, as the consumption of oil within the country continued to grow.MKP: Sir, what are the key priorities of the company for the next twelve months?RKS: The priority will continue to be in the areas of cost reduction, inventory management and capex.MKP: Mumbai and Kochi Refineries under your stewardship are scaling new heights. What are the factors which provide long term sustainability to the performance of the company?RKS: The performance of Refinery will depend on how effectively we manage our operations in terms of energy consumption, inventory management, productivity improvement and conversion of crude into finished product in the best possible manner, to get maximum yield.MKP: Sir, in which functional areas/operations of your company the use of the Industrial Engineering techniques has resulted in overall improvement in productivity and performance?RKS: Industrial Engineering should be seen in the larger context. In every area of business, Industrial Engineering techniques get

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CEO OF THE MONTH

Shri R. K. SinghDirector (Refineries), BPCL, Mumbai

applied, be it productivity improvement, inventory management, loss controls, procurement and supply chain optimization, etc. The concept of Industrial Engineering gets applied in one way or the other, although on paper it may be called by some other name.MKP: Sir, whether BPCL has set any Bench Marks in oil sector in our country?RKS: We have benchmarked all our operations against international standards and I am happy to say that we are no less than any of the Oil Company across the globe.MKP: What initiatives have been taken by your company in the area of Corporate Social Responsibility? As a corporate citizen how do you perceive your role in adding value to the life of project affected persons along the cross country product pipe lines?RKS: As far as Corporate Social Responsibility is concerned, we have raised our budget from 0.5% to 2% of profits after tax. The Corporate Social Responsibility activities are largely confined to the areas of our operations, especially in the areas of community development, education, medical and health.MKP: Sir, would you like to give a message to young Industrial Engineering professionals?

RKS: I would certainly like to convey to the young professionals that they have a huge role to play, particularly in a situation like economic crisis, to help the Industry to optimize their operations. Some people consider Industrial Engineering as something to deal with only productivity and time and motion studies. In my view, this is a very narrow way of looking at Industrial Engineering. In fact Industrial Engineering can cover all facets of operations in any kind of Industry or commercial establishments. Some of the improvements that we do by way of supply chain optimization, procurement activities, cost reduction, etc., they are all products of Industrial Engineering techniques. Therefore the young professionals should look at Industrial Engineering in a wider horizon rather than confining themselves to traditional ways of Industrial Engineering. The world has changed, so are aspirations and expectations. Competitiveness has gone up. Therefore Industrial Engineering indeed can play an effective role using updated techniques to help companies manage their operations profitably.

Interviewed by: Shri M.K. Pande, Mumbai.

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HPCL has won the prestigious ‘NDTV Profit Business Leadership Award 2009’ in the Oil & Gas (Public Sector) category at a function held at Mumbai on October 26, 2009. HPCL was chosen as the Top Oil & Gas Public sector organisation for the second year in a row.

The Award was received by C&MD, Shri Arun Balakrishnan at the hands of the Hon’ble Finance Minister, Shri Pranab Mukherjee.

‘NDTV Profit Business Leadership Awards’ honours business excellence and are aimed at recognizing companies that have nurtured excellence and added value for their consumers, investors and the industry.

Extensive research was carried to determine the nominees and the winners. The jury for the ‘NDTV Profit Business Leadership Awards 2009’ comprised of well established names from the industry and the business world : Dr. Amit Mitra, Secretary General, FICCI; Smt Shanti Ekambaram, Group Head-Wholesale Banking, Kotak Mahindra Bank; Shri T. N Ninan, Editor and Publisher, Business Standard; Shri Rajiv K Luthra, Founder and Managing Partner, Luthra & Luthra Law Offices and Dr. Prannoy Roy, Chairman, NDTV.

The above Award is a recognition of the various initiatives and innovations taken up by HPCL to respond and adapt to the ever changing business scenario.

HPCL BAGS ‘NDTV PROFIT BUSINESS LEADERSHIP AWARD 2009’

Er. Arun Balakrishnan C&MD – HPCL, receiving the coveted award from the Hon'ble Finance Minister, Shri Pranab Mukherjee. Also seen in the picture is Shri Firdose Vandrevala, C&MD – HIRCO.

Er. Arun Balakrishnan is also President of Indian Institution of Industrial Engineering (IIIE). On behalf of IIIE we convey our heartiest congratulation for winning this prestigious award to Er. Arun Balakrishnan, C&MD, HPCL.

Hello Commander

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stOctober 3, 2009 was a historical day for IIIE. The 51 AGM of IIIE was successfully conducted at Bhilai. Members from different parts of the county attended this important event. Existence of IIIE for more than five decades is not a small matter by any yardstick. This was achieved due to Vision, Hard work and Dedication of our Founder Members. We bow our heads to them. At the same time I congratulate and compliment all the corporate members and well-wishers of IIIE for their contribution for this golden achievement.

st51 AGM has also set a path breaking course for the future of the IIIE. I am very happy that the General Body has resolved to keep the organization rejuvenated by giving opportunity to the youth in the day to day affairs of IIIE. The special membership drive offering a Life Membership for a nominal fee of Rs 2325, has been extended up to March 31, 2009 at the request of members, as the human resource and values are the strength of IIIE.

The National Seminar on 25 - 26 October 2009 at Heritage Village, Manesar, on ' Turn Around Strategies and Innovative Corporate Policies' organized by IIIE in collaboration with Strategic Management Group was a great success. This seminar brought about 50 distinguished CMDs, Bureaucrats and Senior Executives, to a common platform to deliberate upon the various issues and strategies for Turning around the Sick Industries. The untiring work of Shri R Sampat, the visionary Chairman of IIIE Delhi Chapter paved the way for the success of this event .We hope to make this an annual event.

The National Conference on 'Recent Trends in Engineering & Technology' organized by IIIE in association with Agnel Polytecnic Vashi, Mumbai, set a defining standard in technical paper presentation. About 150 papers were presented in this Conference. The inspiring leadership of Rev Fr Saturnino Almeida MD Agnel Technical Education Complex and the dedication of Prof. CVGhule, Prof. Atul Meshram and offering a Life Membership for a nominal fee of Rs 2325Prof RS Nehete made this possible.

The Essay Competition conducted by IIIE received very good response from corporate world and academia alike. My personal congratulations to the winners!

IIIE Annual Convention and National Seminar, being oganised by Nagpur Chapter is getting a good response. Industrial exhibition and Pre Seminar Workshop have been included in the programme. Members can avail this opportunity to network and also to update themselves with the latest developments in this field.

Looking forward to meet you at IIIE Convention at Nagpur! Your feedback is very valuable to us .Do keep writing in to me directly at chairman4iiie@gmail.com or just say Hello Commander at 09769332305.

COMMANDER BHASKAR M BHANDARKARChairman

IIIE National Council

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Message from the Editor

Dear Members as well as Readers,

I am glad to inform you that the National Council of IIIE has extended the unique scheme for st

direct membership till 31 March 2010; considering the request received from various members of IIIE. The registration fee for Life Membership is Rs.2325 and Associate Membership is Rs.2275. The application form can be downloaded from website www.iiie-india.com

Considering the heavy demand of space in our journal; the perspective authors are requested to write the manuscript in compact form limited to 6 pages. However, there is no limitation on pages if the theme of the paper is unexplored and content is innovative in nature. They are once again requested for not to include detailed derivations of formulae, detailed mathematical calculations in the manuscript. One can include only the minimum mathematical formulas/calculations necessary for understanding the concept.

A compilation of such a complex nature is possible only because of the enthusiastic, timely and reliable support from a number of individuals. I am grateful to Er. Arun Balkrishnan (CMD, HPCL & President, IIIE), Commander B.M.Bhandarkar (Chairman, NC), Mr P.V. Ramarao (Vice-Chairman, NC), members of National Council, and members of Editorial Board particularly Dr R. P. Mohanty & Dr Prem Vrat for conveying constructive criticism in order to improve the content and effectiveness of Industrial Engineering Journal. The authors who have contributed their research papers to this issue of journal deserve special thanks. I would be failing in my duty if I do not acknowledge the dedicated efforts taken by Mr M.K. Pande, Mr Minocha, Mr Prashanth and Mr Vijay Sawant towards the publishing of this issue. I express deep sense of gratitude to all those who have contributed directly or indirectly, in bringing out this issue in the present form.

In order to make the publication of this journal self sustaining, you are also requested to explore the possibility of getting advertisements for this journal. The details about advertisement tariff is available on www.iiie-india.com

I look forward to receive an appropriate support from our esteemed authors, reviewers and readers and hope to make this journal more interesting to all the stakeholders of Industrial Engineering.

Editor, Industrial Engineering Journal(Dr B. E. Narkhede)

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...48...

A National Conference on “Recent Trends in Engineering & th stTechnology-ZENITH-2009” was organized on 30 -31

October 2009 by Agnel Polytechnic, Vashi in association with Indian Institution of Industrial Engineering at Agnel Technical Educational Complex, Vashi, Navi Mumbai. The Conference was inaugurated by Prof. G. B. Dhanokar, Director MSBTE, Mumbai, in the presence of Rev. Fr. Almeida, Managing Director, Agnel Technical Education Complex, Mr. Prakash Vaithilingam, Executive officer, ATEC, Dr. B.K. Lande, Dy. Director VJTI, Mumbai, and Prof. C. V. Ghule, Principal, Agnel Polytechnic. The inauguration was also attended by Mr. G. Chhabra, Academic advisor, ATEC; Dr. Rolin Fernandes; Principal, Fr, CRIT, Vashi, Prof. Taskar, Principal, Govt. Polytechnic, Thane and many other stalwarts. There were more than 150 papers received from professionals, research-scholars and tutors from various parts of India. Overwhelmed at the active response from the delegates Dr. B. K. Lande encouraged all of them to pursue more research and experimentation and briefly described new ways to methodical study, presentation and implementation. Prof. Dhanokar insisted on updating knowledge, effective teaching, research oriented training and implementation of electronic-technology in education. He encouraged the organizers for conducting the conference and creating a platform for such contributions in the field of Engineering. Rev. Fr. Almeida who's the source of motivation in the journey of new ideas towards excellence, appreciated the response and contribution of the delegates. Prof. C. V. Ghule, Principal of Agnel Polytechnic and Mr. Atul Meshram, Convener of the conference along with his adept team including Prof. R.S. Nehete, then commenced the presentation programme which was followed by the release of the book of proceedings, by Prof. G. B. Dhanokar. The Valedictory function

was graced by the presence of Commander B. M. Bhandarkar, Chairman of IIIE, who was the Chief Guest. He was delighted by the enthusiasm shown by the participants and the organizers in promoting the need of the hour. He acknowledged the capability and responsibility undertaken, the constructive, educative and progressive development for our country. Dr. B. E. Narkhede, Officer on Special Duty, Directorate of Technical Education, Mumbai was the Guest of Honour. He encouraged the delegates and organizers to continue to participate and organize such programmes annually, as they would soon become a mandatory clause for accreditation and upgradation of any educational institution. This conference was one of its kind because it became exemplary with its success achieved from undaunted support, team-work and organization. Total 150 Research papers were presented during this conference and 234 delegates have attended this conference.

Commander B. M. Bhandarkar, Chairman of IIIE,address to the audience

delivering

Dr. B. E. Narkhede, Officer on Special Duty, Directorate of Technical Education, Mumbai delivering address to the audience

National Conference (ZENITH-2009)Navi Mumbai

View of the Attendence

...49...

TWO DAYS NATIONAL SEMINAR

Panel discussion ProF Basu, Cdr Bhandarkar, MrArvind KumarCMD NPCC,Mr Kulshestra ED SAIL

Welcome to Seminar .Prof Basu , R Sampat and Commander B. M. Bhandarkar, Chairman of IIIE,

Deleberating Turnaround Prof Basu president SMG, Er arun Balakrashnan CMD HPCL & GK Pillai CMD HEC Ranchi

The Indian Institution of Industrial Engineering (IIIE) ), in association with the Strategic Management Group (SMG) organized a 2-day National Seminar on `Corporate Challenges to overcome Global Recession: Turnaround

thStrategies and Innovative Management Practices' on the 24

thand 25 October, 2009 at the Heritage Village, Manesar (Haryana).

Prof. P.K. Basu, who was till recently the Chairman, Board for Reconstruction of Public Sector Enterprises (BRPSE) in the rank of Minister of State, Govt., of India and is the

Chairman of Strategic Management Group and Er. Arun Balakrishnan, Chairman & MD, HPCL and President of IIIE, directed the programme, convened by Cdr. Bhaskar Bhandarkar, Chairman, IIIE and Mr. R. Sampat, Hony. Member-Secretary, SMG.

Strategies adopted in turning around and sustaining the momentum; and how new challenges arose and met, consequent on downturn in the economy, were highlighted by the corporate leaders .

Heavy Engineering Corporation (HEC) is a classic example of turn around, which for the first time in the history of 50 years recorded net profit in 3 consequent years – 2006-07, 2007-08 and 2008-09, sticking to core areas and revamping marketing strategies. This case study was presented by Mr. G.K.PILLAI, Chairman & MD., HEC.

Bharat Coking Coal Case Study and Coal India's new strategies and initiatives were presented by Mr. PARTHO S. BHATTACHARYYA. Chairman, Coal India.

Mr. ABHAY JAIN, Chairman & MD., Bharat Pumps & Compressors presented a model titled “Abhay Model of Excellence” focused on HR strategies. The Company which was on the verge of closure in 2005 made a remarkable turn around, focused on optimum urilisation of capacity and HRD.

Mr. ARUP ROY CHOUDHURY, Chairman & MD. NBCC (who is also Chairman , SCOPE), Mr. ARBIND KUMAR, Chairman & MD, National Projects Construction Corporation (NPCC) Dr.Mrs. JAYASHREE GUPTA, Chairman & MD., IDPL.,

Mr. KALOL DATTA, Chairman & MD,. Andrew Yule, Mr. SK SINHA, Director,

...50...

Dr Mahajan Presenting Momemto 2 Shri GC Tayal CEL Proceeding by Col Ramakrishnan, also seenProf Basu President SMG & R Sampat secretary General SMG

Shri G Kanakayya, General Manager (Management Services), Visakhapatnam Steel Plant and the Vice-chairman of IIIE, Visakhapatnam Chapter had attended International Quality Control Circle

rd thConvention(ICQCC)-2009 held at Cebu, Philippines from 23 to 26 Ocober2009.

Around 1500 delegates from 14 countries like China, Japan, Singapore, Thailand, Malaysia, Egypt etc had attended the convention.

Sri Kanakayya led two teams from Vizag Steel. The teams competed and bagged Gold and Bronze medals in the competitions.

During plenary session (valedictory function), Sri Kanakayya delivered key note address on ‘Quality People Management- A success story of Visakhapatnam Steel Plant’. The audience consisting of top management from industries, internationally acclaimed experts from TQM areas like QCs, 5S, Kaizen etc, Government officials had witnessed and applaused the presentation.

Planning & Marketing, NSIC., Mr. R. KULSRESHTA, Senior E.D., SAIL and Mr. TAYAL of Central Electronics Ltd., shared their varied and rich experiences.

Chairmen of various Sessions included Prof. PK Basu, Mr. Arun Balakrishnan, Dr. Ajit Mozomdar, Mr. Ashok Parthasarathi (both former Secretaries to Govt. of India), Mr. Arbind Kumar (CMD., NPCC) and Dr. JM Mahajan (former Professor, IIT (D).

Distinguished participants included: Padma Bhushan GL. Tandon, Chairman & MD. NRDC (Dr. Somenath Ghosh) Group General Managers, General Managers and Senior Executives of Central Public Sector Enterprises.

Rapporteurs who covered the programme are Col. CM Ramakrishnan and Mr. SA Khader (former Dy. Director General, NPC). The programme was coordinated by R. Sampat, Member-Secretary, SMG. Cdr. BM Bhandarkar offered Vote of Thanks at the conclusion.

Feedback received on the Seminar indicated that it was well conceived and executed with very useful lessons and pointers for other Enterprises who are aiming at upgrading their performance levels. It was the consensus that all the case studies presented should be documented and printed for wide dissemination, which could be a joint effort of SMG & IIIE.