“lean innovation in polymeric films” · pdf filelean innovation: key take away...

SaracoteCoated Polyester Film

SarafilPolyester Film

SaralamThermal Laminated Film© 2009

Date: July 10, 2009 Session: 10:30 AM

Ranjit Singh(Director and COO)

Polyplex Corporation Ltd

Packaging for Changing Markets

“Lean Innovation in Polymeric Films”:A BUSINESS PROCESS VIEW

SaracoteCoated Polyester Film

SarafilPolyester Film

SaralamThermal Laminated Film© 2009

Contents

• Polyplex Group: An Overview

• Polyplex: Lean Innovation Model

• Lean Innovation: Key Takeaways

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Coated Polyester FilmSarafil

Polyester FilmSaralam

Thermal Laminated Film© 2009

Polyplex Group: An Overview

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MDOMDO ExtrusionExtrusion WinderWinder

TurkeyTurkey ThailandThailand IndiaIndia AmericaAmerica


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Global Ranking: Polyester Thin FilmCapacities

• Incorporated in 1988 with one line,

• Currently Operational – 6 lines, Line 7 under installation

• After line 7, 3rd in world by thin polyester film capacity

• Globally distributed manufacturing and supply chain• Manufacturing Locations:

• India/ Thailand/ Turkey

• Marketing office and warehouse• USA/ Europe

• Judicious mix of on-shore, off-shore and near shore strategy

• Backward integration (resin manufacturing) and forward integration (metallizing, siliconising and extrusion coating)

• Concentric Diversification into BOPP & CPP in 2009

-20,000 40,000 60,000 80,000

100,000 120,000 140,000 160,000 180,000 200,000

1997 2002 2003 2006 2008 2009

Polyplex Capacity

Ranking Manufacturer Capacity (Dec 2009)

1 Toray 228.002 Dupont 200.003 Polyplex 151.004 Mitsubishi 138.00

Total Capacity (Top 4) 717.00

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Polyplex Group: Serving Customers Worldwide

More than 1,200 Customers in 80 countriesMore than 1,200 Customers in 80 countries

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It is not the strongest of the species that survive, nor the most intelligent, but the one

most responsive to change.”

Charles Darwin

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& the name of the game is …..– Change– Competition– Innovation

Those who will survive are not the biggest or the brightest, but the most adaptive.

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Polyplex: Lean Innovation Model

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Polyplex: Lean Innovation Model: Core Philosophy

Lean Philosophy• Adding as much value to customers as quickly

as possible

• Creating and managing knowledge

• Relentless pursuit of waste elimination

• Respect and grow people

• Focus on waste elimination, work concentration & flow to reduce cycle time (Time to Market)

• Creation of substantial or radical new value for customers and the firm by creatively changing one or more dimensions of the business system.

• Multi-disciplinary and cross functional process

• Focus on creation of profitable value not newness of technologies

• Thinking holistically about the business system

• More substantial than new product development and more dimension than R & D

• Emphasis on new combinations

Innovation

Lean Innovation

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Lean Innovation: Key Drivers

Trend• Globalization

• Walmartization

• Demand Contraction

• Volatility

• Down Trading

• Cash Crunch

• Sustainability

Impact• Hyper competition

• Shrinking Margin

• Cash conservation & short term return expectation

Strategy• Need to

differentiate

• Limited R&D Budget

• Greater focus on return on any Investment

InnovationBut

Lean

Solution

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Polyplex Group: Changing Paradigm

Year Capacity (MT)

Product Market Space/Focus

Source of Competitive Advantage

Pre-2002 20,000 • Domestic & Export focus.• Operational Excellence • Price

2003-07 90,000

• Global Customer Base• Operational, Intellectual & Emotional Integration

• Customer Service• Customer Intimacy• Near Shoring

2007 to 2009 151,000

• Leveraging Economies of Scale• Delivering Profitable Value• Concentric diversification

• Innovation

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Polyplex: Lean Innovation: Strategic Choice or Strategic Necessity

• Aspirational Vision : Leading Global film player with a global manufacturing & footprint.

• Key Development: Shift of focus of erstwhile majors from Packaging to Industrial application

• Business Challenges: – How to transform

- to a tier-1 supplier to global, regional & national converting companies.- from Transactional supplier (Price driven) to Strategic supplier (Value driven)- from off -shore supplier to near-shore supplier in competition with on-shore supplier- from Transactional sales to Consultative sales- from buyer seller interaction to multilevel interaction

– With limited resources & within a short time

Lean Innovation: A Strategic Necessacity & Not A Choice

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Polyplex: Lean Innovation Model: Innovation Network

Inward Outward-in

Locus of Innovation Internal External

Source of Ideas Technology, Knowledge & Capabilities

Customer or other firms

• Concept of Co-creation• P&G :Connect & Develop Strategy• Lab is your world or world is your lab• Balance Inward and Outward – in orientation to Innovation

• Innovation Network: Web of People, Institutions & Companies to • Solve Problem• Generate & implement new ideas & solutions

• Diversity of ideas and Extended Virtual Organization• Lean and more cost effective ideas

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Innovation Network: Sources of Innovation

Resin Supplier

Resin Supplier

Brand OwnerBrand Owner

Film Producer

Film Producer ConverterConverter PackerPacker

Machine SupplierMachine Supplier



RetailerRetailer ConsumerConsumer

Value and Innovation ChainValue and Innovation Chain

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Polyplex: Lean Innovation Model

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Polyplex: Lean Innovation Model:Hub & Spoke Model

• Leverage economies of scale

• India an ideal location– Low cost brainpower operations

overheads– Fast growing and maturing end

user cluster– Aptitude for improvisation and

reverse engineering

Hub Satellite

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Polyplex: Lean Innovation Model:Invention vs Innovation

“Invention”: The process of discovering a principle. A technical advance in a particular field often resulting in a novel product (The Big I).

“innovation” : The business of putting an invention in the marketplace and making it a success (the small i).

• Collaborative Research– Talented scientific pool at

educational institute & National Lab– Invention focused– Leverage available expertise &

infrastructure– Optimal utilization of resources

Hub Collaborative Research

InstitutionsSatellite

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Polyplex: Lean Innovation Model:Customer Insight

Customer

NeedsCustomer

Needs

What Customer Say?

•Focus on Groups

•Surveys

•Depth Interviews

What Customer Get ?

• Lead User Analysis

What Customer Do ?• Customer Experience Mapping

Work better for articulated needs

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Polyplex: Lean Innovation Model: Customer Insights Trends

• Ready to Eat Meals• Convenience is the key

– Desk fast– Dashboard Dining– Single Household– Grooming on the move

• A “NEW” Generation – Longitivity & Declining birth rate– Major Demographic Changes:

proportion of over 50 yrs - Intelligent/ Smart packaging- Easy Opening Closure

- Young India

• New Sales Channel :– Changing Shopping habits– Changing Global Retail trends– Convenience Shopping

- Grocery Shopping at Petrol forecourts- Internet Shopping +Home delivery- Sophisticated Vending Machine- Hypermarkets/ Supermarkets

• Sustainability– Recyclability– Downgaging– Green Material– CO2 foot print – REACH: Registration, Evaluation,

Authorization and Restriction of Chemical substances

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Polyplex: Lean Innovation Model:Customer First

• Greatest Challenge :How to get the voice of the customer in?

• Formalized customer engagement Process

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Case Study: Polyplex – Converter

• Application: Bag in Box

• Customer Requirement: To develop larger size ‘Bag in Box’ packing

• Objective: To provide suitable film with better adhesion, meeting the barrier and compatibility requirements.

• Partners: Polyplex and Converter

• Process:– Joint project team studied and developed suitable coated film to meet the

requirement

• Final Result– Bigger packing launched within 6 months of startup

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Case Study: Polyplex – Converter – Brand Owner

• Application: Potato Chips Packaging

• Customer Requirement: Brand owner wanted to reduce rejection percentage due to flushing gas leakage.

• Partners: Polyplex, Converter and Brand Owner

• Process:– Three way project team jointly studied the laminate and work/ process flow

from end to end

• Final Result– Problem fixed by minor modification in the FFS machine

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Lean Innovation: Key Take Away

“Market forces will force all of us to differentiate and Innovate and if we are not doing that

someone else will”

So let us get together and Innovate to make the cake bigger rather than fight for a bigger piece of same cake.

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Lean Innovation:

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Lean Innovation:

Thank YouContact us at:

[email protected]

or

Krishna Reddy: [email protected]

Ranjit Singh: [email protected]

mailto:[email protected]

mailto:[email protected]

“lean innovation in polymeric films” · pdf filelean innovation: key take away...

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