Thursday, December 17, 2009

Energy saving device- Magnetic amplifier Centralised lighting energy device

Magnetic amplifier Centralised lighting energy devicProduct Categories

Electrical Systems, Components & Accessories

Product Profile

Swastika Industries offers Energy Saving Devices. It is a magnetic amplifier based centralised lighting energy saving device. It is available in 3-phase from 18 up to 450 kVA capacity. This is to be connected with the centralised lighting feeder through which irrespective of fluctuating input voltage, the output voltage will be set at site independently in R, Y, B phases through electronic PCB cards and kept constant. The following benefits are assured on the lighting load: guaranteed power saving of 20%; and life of lamps will increase very substantially. Magnetic amplifier technology is the proven and most effective technology in centralised lighting energy saving device. This product finds application in all those industries where lighting load is substantial
M/s Swastika Industries

Friday, December 11, 2009

Cost Reduction Strategies not a continuous process for majority –Ernst & Young survey


Survey Conducted by Ernst & Young  on “Save to Prosper: from cost reduction to cost optimization. “

A total of 561 senior executives were interviewed for the survey, which covered 11 industry sectors in 11 of some of the largest economies. The results show that the most common reason for implementing cost reduction is "to ensure survival", implying that once survival is achieved, cost reduction will be marginalized.

Raju Lal, Partner at Ernst & Young, said, "Our survey highlights that many businesses are dangerously complacent about cost reduction and are as a result not ready for the eventual economic recovery. Although cost-consciousness has become a top priority during the last year, the majority of company efforts so far have been on tactical and temporary measures, delivering no more than 10% cost reduction for most businesses. Sustainable cost reduction and optimization need to become standard practice and be at the heart of any company’s business recovery agenda."


  • The management considers that cost reduction and sustainability are one of the main strategic objectives to their organization.
  • 49% of companies indicate that securing economical survival is the reason why they decide to set up cost reduction programs. But some countries like Switzerland, China or sectors like pharmacy / bio technology or consumer products are less concerned. These sectors indicate that cost management is a continuous process or a good leeway for investment.
  • 2/3 of the Management of companies indicate to be actively engaged on CRP.
  • 55% of companies address a complete cost reduction programme (sales, general and administrative cost as well as cost of goods sold). It’s even more important for some sectors (consumer products, pharma/ biotech technology) or countries (Switzerland, Germany, Netherlands, USA, Spain).
  • Concerning the sales, general and administrative costs (SG&A) companies mainly focus on human resources, facilities management or information technology.
  • 60% companies state that they can only achieve up to 10% SG&A savings today. They are 65% of companies in the next 12-18 months.
  • Concerning cost of goods (COGS), companies mainly focus on procurement, manufacturing or distribution spend. Some countries like China or France cut costs on research & development.
  • 70% companies state that they can only achieve up to 10% SG&A savings today. They are 65% of companies in the next 12-18 months.
  • Companies assess cost savings analysis as their main technique to set tactical cost reduction programme.
  • Companies assess service effectiveness improvement as their main technique to set strategic cost reduction programme.
  • 81% of companies are at the completed in progress stage of reduction cost but less than half of companies indicate they are quite close to achieve the benefits.
  • 11% of companies are not tracking or planning to track their cost reduction programme all the way down into their profit and loss statement (53% of Chinese companies) and when asking what is preventing them from doing it, 39% state it is not feasible or does not make sense.
  • 89% are tracking or planning to track their cost reduction programme and state clear ownership and accountability, right team in place, clear business case as the the main factors to reach the cost reduction targets.
  • 86% of companies declare being confident in retaining sustainable the cost saving benefits achieved by cost reduction programme. However, when companies have to explain, only 28% of them mention continuous cost management and only 26% of companies mention structural adjustments completed.
  • 68% of companies are convinced that the cost consciousness developed in the last year (year of crisis) in comparison with the previous two years.


Source: Ernst & Young

Wednesday, December 2, 2009

Toyota to enter Entry Family Car segment in India with low cost cars

Toyota has an ambitious plan in India, where it hopes to grab 10 percent of the market by 2015. The market for automobiles on the Subcontinent is estimated to be at 3.5 million vehicles per year by that time.
Key to Toyota's growth in the India market is its upcoming EFC (Entry Family Car) platform, which will spawn hatchback and sedan body styles. While the EFC will form the bulk of Toyota's volumes in India, the company is also looking at other segments to enhance its portfolio in India.
Under consideration is the Avanza MPV, which sits one segment below the popular Innova. In India, the compact MPV category is virtually nonexistent and is served only by the six-seater Versa van, which barely sells. So can Toyota convince customers to buy this new class of vehicle? The company believes it can and is banking on the popularity of the Innova to draw people to what is essentially a scaled-down and cheaper version of the hot-selling Innova MPV.
The Avanza is also a seven-seater on a rear-wheel-drive platform but is a monocoque, unlike the Innova, which is built on a body-on-frame or ladder chassis. This would give the Avanza more carlike dynamics, but Toyota is concerned about whether customers would perceive the absence of a ladder chassis as a compromise in durability. A bigger concern is the lack of a diesel engine. The present Avanza is only available with 1.3 and 1.5-liter gasoline engines, which just wouldn't fly in India.
In fact, the lack of a diesel is one of the main reasons why the Versa flopped.
Toyota is considering a 1.4 turbodiesel for the Avanza, the same motor that will power the EFC and Corolla diesels. However, retro-engineering a new motor into the present Avanza is difficult and costly. Toyota might just wait for the next-generation Avanza, which is being developed with a diesel engine option, but that is still some years away.
The Avanza's pleasing styling, compact dimensions and impressive space efficiency could make it a smart alternative to a sedan for those who need to regularly transport more than five people. The last row is typically cramped, but it's good enough for kids and the occasional adult for short city hops. The Avanza will appeal to those who find the Innova's shiplike dimensions too much of a handful and prefer something that's not more difficult to drive than a hatchback.
Toyota is considering heavy localization to bring costs down. Strategically, Toyota sees the Avanza as the right vehicle to plug the huge gap that will exist between its small car lineup and the big Innova.
For the moment, Toyota's focus in India is on the EFC. The small-car project is gathering momentum, and Toyota plans to unveil the concept at the 2010 Auto Expo in January. The world debut of the EFC in India is significant and underscores the importance of India, which is the lead manufacturing base for this platform, followed by Brazil.
The EFC is the cheapest car in Toyota's portfolio and is positioned in a segment of the market the Japanese giant has never competed in before. It is for this reason that Toyota is taking extraordinary pains to find out exactly what customers shopping for this class of car exactly want. Kazuo Okamoto, vice chairman of Toyota Motor, says: "The strategy for the Indian market is to get the product right, and we are devoting ourselves to preparing the right product for the Indian market. Only then can we be successful."
Though the development of the EFC was done completely in Japan, Toyota has designed this platform around strict cost targets which it has managed to achieve thanks to high localization and use of the home-grown supply base in India. For the first time, Toyota has not automatically chosen its traditional suppliers, as they have not met the cost targets Toyota has set for the EFC's components.
Pricing will be the biggest challenge, and although Toyota has announced it will not get into a price war with its rivals, the specs will be tweaked to ensure that costs don't get out of hand. "Cost reduction will come with lower specifications but not by compromising on quality," emphasizes Okamoto.
Toyota is also banking on its robust and quality dealer network to offer a trouble-free ownership experience, as a key differentiator.
Inside Line says: Toyota has thought the India market's needs through and can be expected to exceed expectations. — Hormazd Sorabjee, Correspondent
Source -Inside Line

Cost Reduction A top priority to remain competitive-CEO HMIL

Shweta Bhanot Posted: Tuesday, Dec 01, 2009 at 0041 hrs ISTUpdated: Tuesday, Dec 01, 2009
Hyundai Motor India Ltd (HMIL) is looking at streamlining business to pare costs, says Han Woo Park, the new managing director and chief executive officer of the company. In an interview with Shweta Bhanot, Park, who was earlier the chief financing officer (CFO) at HMIL, dwells on what he calls the domestic focus strategy and how the company will look into the segments it's weak in and bolster them with the right product. Excerpts:
The Indian auto industry showing strong signs of revival, while exports are still weak. What will be your strategy going forward for HMIL?
Our emphasis will be on the domestic market more than exports. We see great potential in the domestic market and plan to optimise our efforts to increase our market share in the country in 2010. We will see which model is profitable for us and accordingly streamline our business to reap maximum benefits. Cost reduction will be on top of our mind to remain competitive in the market. Maruti Suzuki has been in the market for more than 25 years and we have been in the market for the past 13 years. We cannot compete with Maruti on years, but plan to compete in terms of quality and customer service.
Today Hyundai is better known as small car seller in the country. Is it looking at expanding its reach to other segments in a serious manner and will it be ever be a serious player in the premium segment?
We will look at the segments where we have a weak position and try to strengthen it with the right products. We have a full line of products at Hyundai Motor Company and will continue to conduct feasibility studies for products to see the possibility of introducing them in India. Premium sports utility vehicle segment is one such segment and we are studying the possibility of getting Santa Fe in the country. We also want to increase our brand image and sales volume in the country.
What about the i30 and will the Accent continue in the market or be replaced by a new model?
We are selling i30 in Europe and Korea and personally I don't think a hatchback in C segment will be acceptable in the Indian market. So, launching i30 in India looks difficult. Accent will continue to sell in the market. It is getting us over 1,000 units per month

At what stage is the new small car project and what kind of contribution will the Indian R&D centre make to the project?
Codenamed HA, the new small car project is at the design stage at the moment. The core work is on in Korea, while the Indian R&D centre will help in back-end services. The concept should be ready by the next Auto Expo in New Delhi (2012). We plan to focus on the Indian market only and no decision on exporting it has been taken yet. We are looking at 90% localisation of the new small car.
Which products can we expect Hyundai to showcase at the upcoming Auto Expo in New Delhi this January?
We plan to showcase our ability in electric vehicles and one can catch the Genesis Coupe at the expo surely

Sunday, October 25, 2009

New Procurement strategies for combating recession

Corporates across the globe are implementing new strategies to reduce cost in areas like supply chain management and mainly into procurement activities .

Here are few main strategies which are now being implemented by majority

  • Head count reduction
  • Technology investment /Automation/Increased usage
  • Pricing adjustments/renegotiation with vendors
  • Low cost country sourcing
  • Reducing travel budget
  • Restricting individual technology usage
  • Working capital optimization
  • Demand management
  • Centralised purchase
  • Outsourcing or Off shoring business process
  • Use of technology in areas like spend analysis , E -procurement , Supplier portal and contract management , Vendor evaluation .

Saturday, October 10, 2009

Goodyear rolls suppliers back into product development

What Goodyears new CPO has done is that he has introduced their major vendors/suppliers to its manufacturing process of making tyres and asked them to help Good year reduce manufacturing cost through their Ideas , methods and tips . As the saying goes two brains are better than one . This method helps to get new ideas as vendors looks manufacturing from different angle than what Good year professional does.

Good year listed out their major problems and matched with vendors who can help them in meeting that challenge .Technical team of Goodyear interacted with technical team of its supplier and came out with solutions. This has also brought technical team closer to procurement team and that made procurement decisions more specific towards requirement

Goodyear rolls suppliers back into product development

Wednesday, September 16, 2009

CPO s are under pressure for cost savings

Recent surveys done by Capegemini on Global CPO has revealed that 70 % of the CPO has agreed that their company has been targeting cost savings up to 5% from the last year value . Many contracts have to be renegotiated in the view of recession and lack of demands . Others issues highlighted in the surveys were

E procurement and other eRFI ,eRFQ tools have been only utilised only in 20% of the total transactions of their companies.

Shortening of Planning term. These are now short and specific objectives

Loss or retaining of procurement talent


Wednesday, August 26, 2009

Supply Chain goes Green

Recent surveys conducted by IBM has come out with the findings that executives are more concerned about cost control and cost reduction strategies s than environment issues like green house gas emission and Co2 emissions .

But for the pressures from the stake holders like consumers , government , Investor for more actions on these environment issues companies are now trying to synergize their cost reduction efforts to the environment issues .

Some of the area which can be used by executives get cost reduction as well as reduction in CO2 emissions are

  • Transport and Supply

  • Product life cycle management

  • low emission manufacturing

  • Shipment

  • Packaging


Wednesday, August 19, 2009

India is still a low manufacturing hub for Automobile sector

Recent declaration by Hyundai Motors that it is shutting off operations from it Chennai plant and is shifting its exports to some other location has other reasons rather than to do with manufacturing cost . Labour cost is still lowest in this reason even you compare it with China , Thailand ,Mexico and other low cost mCheck Spellinganufacturing countries . Availability of numerous ancillaries to automobile sector also makes India an attractive destinations for foreign car makers . Nano is an example so does other automobile manufacturers who putting up base or expanding their capacities .


Proactive action to take on Economic down turn

Companies are facing trouble on account of dwindling sales and high cost of raw material. Its time for few basic cost reduction such as cutting down Inventory ,Reduce Overheads , Outsource or Co source , Focus on core and profitable business, Getting new market , Innovative and low cost marketing etc .

Here is a article which sums it all

Tuesday, August 18, 2009

High Energy cost has impacted Indian industry

Energy cost of manufaturing industry has grown up to an extent where industry is finding difficult to be competitive in global market . ASSOCHAM in its recent study has shown a gloomy picture of energy sector .


Sunday, August 16, 2009

Indian companies adopts cost reduction measures in economic slow down

With fall demand and high cost most of the Indian companies have vigorously adopted cost reduction strategies to save costs .

Aditya Birlas BPO operations in Canada has been reduced and BPO centres are being relocated to India . Aditya Birlas Copper mine in Australia are being closed for maintenance and repair

Tatas -Tata s have laid off number employees from Ford JLR s plant and design units and is now planning to get components from countries like India , China

Essar - Laid off workers from its Canadian mills

JSWS -- Jindals US units are to revived with lower fuel consumption and sourcing raw materials from low cost manufacturing countries

Read for details

Tuesday, August 4, 2009

US companies have gained from offshoring

A recent surveys shows that US companies have gained through offshoring their activities . Companies are offshoring activites like Design , Research and development services , Customer care etc .


Thursday, July 9, 2009

Automation for metal detection in pizza manufacturing

Metal detectors are installed to detect any foriegn particles on food particles . The metal detector rejects automatically the afffected food product , hence helps in maintaining good quality food products .

Complete article on

Monday, July 6, 2009

Sustainable packaging favoured by consumers

Packaging is the most crucial factor for any consumer products . A well packed product could have better brand loyalty then a product which excessively packed . On over packaging surveys has showed that consumer would prefer a product with less packaging than an overly packed product . This trends should help manufacturer to cut down cost on excessive packaging.

Read Article on

Saturday, July 4, 2009

India , Mexico has taken over from china being a low cost manufacturing country

Recent surveys and analysis has shown that cost of manufacturing has inched up in struggling economy of china . India and Mexico are new hub for low cost manufacturing . Even Americans are catching up with chinese on manufacturing cost .

Read complete article on

Sunday, March 15, 2009


Visit to discover Indian blogs

Tuesday, March 3, 2009


Technorati Profile

Wednesday, February 18, 2009


We don't give much of importance to inventory lying in our stores or warehouse . Its when some consultants points out that we have blocked moneys in these stocks that we realise that something has to be done to cut cost of inventory . following are certain steps which one should take to reduce cost on inventory.

1. Codify all items which are kept as stock in stores or warehouse .Use any inventory management software to track stocks and movement from one centre to another.
2. Classify items by ABC so you know what are high value items and keep a tab on their consumption and procurement . Next focus on low value items .
3. Examine value of items on basis of return on investment .
4.Identify high stock out items and then adjust buffer stock on cost trade off basis
5.Examine all items for safety stocks with respect of lead time , demand , stock out cost , carrying , ordering don't pile up stock intuitively
6. Do physical stock verification periodically and eliminate dead stocks ,accept obsolescence write off for these items .
7. Determine Economic Order Quantities of all items.
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