The Infosys global supply chain management blog enables leaner supply chains through process and IT related interventions. Discuss the latest trends and solutions across the supply chain management landscape.

September 30, 2017

Achieving Compliance To Foreign Supplier Verification Program (FSVP)

Back in 2011 when U. S FDA's FSMA act (Food Safety Modernization Act) was signed into a law, it was a termed as a sweeping reform in the food safety laws as the focus totally shifted from 'Reaction' to 'Prevention'. There were seven rules under this act. One of them was titled FSVP - Foreign Supplier Verification Programs. It was touted as a very bold rule aiming to do a number of things which were never attempted before with respect to the food safety norms in the US.  As expected these norms resulted in a slew of initiatives from food retailers across USA to get compliant with the rules.

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September 6, 2017

Intelligent Maintenance - a journey towards eliminating breakdown

"No Breakdowns" - this has been and should be an ambitious goal of every maintenance business operation of an organization. Since the start of Industrial revolution, the approach towards the maintenance of any asset has evolved from breakdown to corrective to preventive to predictive. This evolution has proven the ultra-goal of every organization effort to 'to reduce asset down time due to breakdown and to improve uptime'. However due to operational challenges, there has been always a significant percentage of breakdown encountered by the assets and it is the ground reality widely accepted. There were many articles written on achieving 'No breakdowns' by implementing emerging concepts of Preventive and Predictive maintenance, however there were gaps. Some of the reasons for such gaps are - 


 • Lack of insights in the health of assets and their spare parts
 • Responding to monitoring alerts based on conditional deviations
 • Rigid maintenance programs without consideration to varying operational conditions
 • Missing link of redesign of assets by OEMs based on the feedback on operational parameters.
 • Difference in ownership on asset performance between Operation and Maintenance

As we move into an era of digitization - Fourth industrial revolution, we could see that assets are becoming more and more intelligent. It is eminent that there is a transformation happening where our maintenance is becoming more intelligent to bridge the gap on reaching our ultimate goal of eliminating breakdown completely. Here let us see some insights on Intelligent assets and salient points of intelligent maintenance.

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May 26, 2017

Integrated Vehicle Diagnostics Solution in Automotive Aftermarket

Authors:

Ravindra Hunagund, Lead Consultant, MFGDCG, Infosys Ltd., ravindra_hunagund@infosys.com

Swapnil Vijay Akolkar, Lead Consultant, MFGDCG, Infosys Ltd., swapnil_akolkar@infosys.com

Saurabh Sharma, Senior Consultant, MFGDCG, Infosys Ltd., saurabh.sharma@infosys.com

Snigdha Goyal, Consultant, MFGDCG, Infosys Ltd., snigdha.goyal@infosys.com


Independent workshops have traditionally struggled to keep pace with OEMs and authorized workshops on vehicle diagnostics, tools & technology, vehicle electronic information and quality of service / parts. With EU commission systematically introducing regulatory amendments, such as the EU regulation 566/2011 which mandates the manufacturers to release and share the vehicle related electronic data for identification of exact service parts for the vehicles, a level playing field is being created where the independent workshops and authorized workshops would have to battle out to get the aftermarket share by serving varying needs of the customer. This blog brings out an integrated automotive diagnostics solution that will assist independent workshops in being competitive against the authorized repairers in this ever changing scenario.


MARKET ANALYSIS

Globally, the aftermarket is emerging as a new lucrative area for OEM's revenue as 15% of OEM revenue comes from aftermarket business, which represents 70% of OEM profit. The automotive aftermarket is mainly divided into two broad categories: authorized repair shops (dealerships) and independent workshops. The authorized repair shops are part of the dealer network providing servicing solutions, warranty programs and consuming original parts whereas independent workshops are less expensive alternative to authorized repair shops. OEMs have lost 3% of their global market share in 2015[1]. This has been possible due to the following factors:

1. Release of electronic data of repairs: According to this EU regulation 566/2011, the manufacturers in Europe automobile industry are obliged to release and share the electronic data so that an accurate identification of service parts can be done for the vehicles. The independent workshops would now have unrestricted access to the electronic repair and diagnostics data as is the case with the authorized repair shops. The ultimate goal of this regulation is to provide enough choices to the customer and encourage competition at all levels of the automotive aftermarket value chain.

2. Availability of diagnostics tools: Next generation diagnostic tools have enabled the independent workshops to service and maintain vehicles from various different brands with the same level of service quality as that of an authorized repair shop. The technicians are able to point out the exact problem in the vehicle and save time and cost for both the workshop and the end customer.

3. Collaboration with other service providers: Non-traditional players in the automotive aftermarket such as fleet operators, insurers and leasing firms are signing agreements with independent workshops, to lower their costs and channel the customers to only the contractually agreed upon independent service providers.


Segments_2.png
The market for diagnostics scan tools can be segmented as given in the figure with software based repair tools showing the most promising growth rate of 7.5% by value. The market and future for diagnostics tools looks very promising as the growth rate of the automotive diagnostic end-to-end scan tools market is projected to grow globally at a promising CAGR of 5.6% from 2015 to 2020, growing from US$3.83 Billion in 2015 to US$5.02 Billion by 2020.


Current Challenges

Challenge#1 - Lack of E2E Diagnostics: Due to absence of any single integrated aftermarket solution for fault diagnostics to parts ordering, difficult problems lead to reduction of the workshop profits and which in turn leads to backlogs which can potentially damage the overall customer satisfaction. It has been estimated that these problem cars have the potential of costing workshops $24,750 of lost business in a year

Challenge#2 - Increasing Vehicle Complexity: It is estimated that a modern vehicle has the computing power equivalent to the system which had guided the Apollo astronauts all the way to the moon. 72% of workshop owners feel that keeping up to date about the latest vehicle technologies and electronic systems is challenging

Challenge#3 - Local Fault codes to OEM codes mapping: OEM's fault codes to independent diagnostic fault codes mapping is inconsistent. If these advanced workshops are to compete with the main dealers, they would require a combination of the following three things: Getting OEM-trained skills, technology and all the vehicle information

Challenge#4 - Lack of clarity in ordering parts for given faults: Due to high level of inconsistency between the fault diagnosis and the parts required for rectification, incorrect mapping of OEM parts numbers to independent retailers there is a higher rate of parts return/re-ordering


Point of View Solution

The challenges faced by the independent workshops can be tackled by using cloud based end to end diagnostics solutions that provide a common platform for scanning a vehicle, detecting faults, ordering parts, publishing reports and generating invoices for the customer. To tackle all the challenges discussed in the previous section, Infosys based on a client engagement and market study proposes a cloud based diagnostics solution as below:


Segments_3.png

1. Workshops can service vehicles across multiple vehicle brands without having to train the technicians especially for any make or model. Having a single guided workflow application from fault detection, correction, technical data, parts ordering till invoicing can save cost and effort for the workshop and the customer

2. Tool can be accessed over laptop/ tabs/ smart phones and can be connected to any vehicle via a VCI (Vehicle Communication Interface)

3. The workshops should be required to just purchase VCIs and license for the tool and pay based on the subscription taken.

4. The tool can pull together data from multiple databases for getting repair, maintenance, diagnostics, faults-parts mapping, parts and other such information on a single platform, saving both time and cost for the workshop and the customer

5. A comprehensive diagnostics with intelligent fault-tracing can list down all the faults detected on the vehicle within minutes of starting the scan giving the technician a strong starting point towards servicing and repair of the vehicle

6. The tool can be linked with distributor's part catalog for parts selection and ordering

7. The customer can look at the readings from vital measures of the vehicle and get a printed report of the complete diagnostics

8. The tool can monitor the Telematics data transmitted from the vehicle and post maintenance alerts to the customer

9. The tool can also send scheduled maintenance alerts to its registered customers to increase customer satisfaction levels and have longer customer retention period


Conclusion

With favoring regulatory changes towards release of proprietary repair data, advancement of technology in diagnostics tools and reduced TCO owing to cloud based IT solutions, independent repair shops market is perfectly poised for benefiting from integrated solution covering diagnostics, fault tracing, symptom analysis , parts recommendation, integration with parts distributor's ERP and provide billing options. While a few solutions exist in the market currently, there is a definite chance to focus on extending the capabilities (Pass Through, predictive maintenance etc.) and providing end to end solution targeting repair shops giving them a competitive edge against authorized dealers.


References

http://www.adlittle.com/downloads/tx_adlreports/AMG_Automotive_after_sales_2015_01.pdf

http://www.marketsandmarkets.com/Market-Reports/automotive-diagnostic-scan-tools-market-1299.html

https://www.bcg.com/documents/file111373.pdf

April 19, 2017

APM - It's time for Performance Appraisal for Assets

Performance Appraisal? ...for Assets? Does it sound different? Yes, this is the closest analogy I could relate to Asset Performance Management (APM) / Asset Health monitoring, which is much talked about now a days. Employees are valuable assets of an organization. So are the production assets such as Equipment and Machinery which are also playing vital role in the well-being of an Industry. APM is the concept focusing on the performance of individual assets (Equipment, machinery, transportation vehicles, etc.) on their real time performance, downtime, and their efficiency and maintenance parameters. Some of the examples of APM tools are from GE, Schneider Electric etc. Though APM is not so new, it started getting traction in recent days due to fast pace technological advancements such as Big Data, Internet of Things, Machine learning, Smart Systems and Cloud computing. In this blog we will surf through the concept of APM, its latest trends and benefits.

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January 18, 2017

Flying on Cloud with EAM

Cloud computing is impacting us in various forms and means in our day to day life in recent times. We may miss to realize the fact that the Social Media application such as Facebook, Twitter and You Tube we use day in and out are utilizing the Cloud computing technology to manage the vast user community across the globe. Cloud computing paved the way to provide the stake of Infrastructure (IaaS), Platform (PaaS) and Software (SaaS) as hosted services, which are being capitalized by Business giants who use Internet as the working ground. We are seeing lot of developments happening on this technology where eventually we may enjoy 'Everything-as-a-Service' in near future.

This disruptive technology has invaded all facets of our life, not leaving the asset management business function alone. In this blog, I wanted to take you through a virtual tour on EAM on cloud.

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July 12, 2016

Be ready for the drone invasion @ warehouse!

We have seen a burst of new technologies in supply chain area. Drones, advance of robots in workplaces, Internet of things (IoT) are becoming a reality. Time is ripe to induce more technology into core operations of supply chain like warehouse operations, yard operations and so on. Here I would like to discuss on how to capitalize advances made in drone technology can add value in warehouse operations. Drones are also personal interest of mine as we had experimented with a small drone in our home few years back.

Traditional warehouse managers have always been looking for ways to improve productivity of the operations and people in warehouse. Drones can significantly improve warehouse operations in the area of inventory management, yard management and safety of the warehouse. Drones can be put into use in
1. Annual stocking: In a warehouse the storage locations and pallets are bar coded. Drone which has a scanner can scan the location to confirm its position then scan the pallet label to confirm the item and quantity. Frequency is yearly and involves the entire warehouse.
2. Cycle counting: Its similar to annual stocking as the operation involves going to location and confirming the item and quantity. Cycle counting involves fewer locations in a warehouse and the frequency is few times a day.
3. Track Trailers in Yard: In large yards its time consuming to identify trailers, drones can be of big help here. They can sent out for "search operations" in a yard and using the camera in the drone operators can hunt for trailers.

Pros for using Drones:
• Increase productivity in physical counting and cycle counting. Productivity can be improved by a factor of 2X or 3X.
• Overcome safety challenges, as taking physical counting in high rack locations involves using both forklifts and humans which increase chances of accidents.
• Drones can perform the work faster and also be more accurate.
• Drones can also be used for searching and finding inventory.
• Drone can also be used for searching trailers / trucks vehicles in large yards of the warehouse.

What type of warehouse can be early adapters for Drones?
Retail, Third party logistics warehouses are ideal for Drones usage. These warehouse are typically large sites, with high rack locations which are bar coded. The warehouse layout is like typical street block with aisles and locations marked.

4 Steps to put Drones in Action:
In order for the warehouse to take advantage of drones following things are necessary
1. For Drones to move independently within the 4 walls of warehouse, the key requirement is to have physical warehouse map with details of all the aisles, rack locations and other details.
For this the crucial input is to have warehouse map which has the co-ordinates of each location. A geodesic survey of the inbound and outbound areas of the warehouse needs to be done. Warehouse map is created with x, y, z co-ordinates of all the locations. Site survey can be accomplished by civil surveyors by working in non-peak or non-work days in 6 to 8 working days. Warehouse physical map is fed into drone software. Drone can navigate using the warehouse co-ordinates. In my previous project implementing Locanis WMS we had enabled Forklift guidance system in a large warehouse.
For Indoor referencing  to increase the positional accuracy of the drones we can use beacons. The way I envisage this is we place beacons in aisles and pathways of warehouses. So whenever drones pass these beacons it will publish the exact positional co-ordinates which can be then be used for navigation.
2. Drone needs to be equipped with a scanner which can scan various bar codes stickers of different bar code standards like EAN, UCC.
3. Once the drone scans the data it needs to communicate to the WMS system or a custom software which can capture the location and inventory.
4. Drones need to communicate using a different frequency, as warehouse have other equipment's like forklift terminals, Hand held terminals, RFID devices using Wi-Fi.

Challenges for Drone usage:
• Drones can be used for inventory management functions in Full pallet areas. Using them in Carousels, multi deep pallet locations, Pigeons holes are going to be challenge.
• Warehouses which do primarily Cross docking, Break pack are also not suitable for drone operations. As the inventory is fast moving and mostly in ground locations.
• In order for drones to work in warehouse operations we need to have robust "anti-avoidance" technology. This is an important factor when drones and humans have to work in the same environment.

4 steps for inducting drones  as discussed above can form the basis of inducting drones into warehouse operations. In the near future we would be seeing more drones in warehouse working along with humans. Pretty soon I think we will see "Drone operator" as one of the job titles in warehouses across the world. Welcome to the world of warehouse drones!

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June 23, 2016

Supplier Diversity Reporting in Utility Industry

An year of perseverance, hard work, intense discussions and night outs has come to an end and the results, I would say, have been impressive. In fact, the go-live for this transformational ERP program was the smoothest one I have witnessed in my 10 year long career. The client was from utility industry located in Las Vegas & had a customer base of approximately 2 million including residential, commercial and industrial customers .They provided natural gas service to parts of Arizona, Nevada, and California. The program was to modernize the financial and supply chain systems along with providing a robust reporting solution which would not only meet their reporting needs but also cater to the various regulatory reporting requirements of the utility industry. I was very closely involved in various aspects of developing a reporting solution for the client and the area of reporting which caught my attention was 'Diversity Reporting'. In this blog I will try to explain what Supplier Diversity Reporting is all about and how we addressed these reporting needs for our client.

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November 4, 2015

Demand Driven Supply Chain- Bridging the Gap by Flowcasting

Supply chain planning is the core need for any retail brand in the today's world. In order  to gain better visibility of their own Supply Chain, companies have started investing a lot into planning solutions. The driving point for such investments is to gain accurate visibility of material flow across the entire supply chain. Many solution vendors exist to address these kinds of solutions including SAP, Oracle or JDA. Even though lots of organizations have such planning solutions, yet the main question for any operations team still remains: - "In a forecast driven supply chain, where should be our demand point and how to control bull whip effect due to variability in customer demand?" (i.e between various nodes in the supply chain from supplier till retailers).

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September 30, 2015

How will Future Maintenance be?

Tomorrow's enterprise would want to limit their efforts, energies and expertise to the areas of their core competency rather than dwelling on non-core areas. When we look at asset intensive organizations, most of these firms would want to stick to their area of expertise i.e. manufacturing/producing products of value. So, these organizations can spend their resources and energies in innovating and manufacturing products and leave the supporting areas to the experts in those areas like how IT implementations are not carried out in house as it is not their core competency.

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April 16, 2015

Internet of Asset Maintenance

Internet of Things (IoT) is one of the hot topics much discussed in various forums these days. IoT is considered to be an influencer in transforming the way Objects interact with external world. This arouses a curiosity to know how it influences the Asset Maintenance business function as well. A point of debate is that - 'is it a new concept which can improve the maintenance process or is this something we already do in a different way'. A comparative analysis on the basics of IoT and on the latest trends in Maintenance processes can help to find an answer for this debate.

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