See other Lectures/Conference
Presentations by Mr. Ari
See Social Activities by IIPM
O. Arivazhagan, B.E (Honors), PMP, SSGB, CEO of IIPM, was invited to
lecture on "Empowering Project Procurement Through Value
Engineering, JIT & Six Sigma" by Indian Institute of Materials
Management (IIMM), an
all-India member body advocating the profession of materials/procurement
management on 28th June 2007 at Hotel Days Inn Deccan Plaza, Chennai.
Mr. Anil P Aggrawal, Branch Chairman, IIMM, started off the event by
formally introducing the Chief Guest of the evening Mr. Ari to the members
In his lecture, Mr. Ari addressed the following
issues in connection with Empowering Project
Procurement Through Value Engineering, JIT & Six Sigma.
In his session on value engineering, Mr. Ari
impressed upon the audience by showing practical examples of value engineered
laser pointers (3 no.) & house hold articles as common as matchboxes. These
practical simple examples kindled a lot of interest in understanding the
unnecessary costs that go into making such simple products without enough
care to save cost by all the concern professionals. He insisted upon a
function-cost-worth analysis for new products as well as existing products in
order to design and procure only those functions and materials which add
value to the customer.
Next, during his talks on Just In Time (JIT)
approach, Mr. Ari highlighted the necessity to reduce inventory levels of raw
materials, WIP, and finished goods. As the infrastructure conditions in India and
single-supplier reliability are still a major challenge, implementation of JIT principles in project procurement processes
in India is still a
day-dream for majority of Indian manufacturing companies. However, in the near future the
global competition and customer awareness will drive the industry to adopt JIT
methodology, he envisioned.
After his insights into value engineering and JIT,
which help companies and industry to reduce cost of product or service or
project, cost of capital, enhance value at macro level, he impressed upon the
to reduce the defect levels from existing industry standard of 3σ
to 6σ level. He explained with the help
of a table which compared the defect levels at 3σ
performance and 6σ performance for process based operations
to drive the message that the 3σ level
performance is hardly adequate in today's global competition markets.
He also cautioned companies not to hope for achieving 6σ level performance
from 3σ level by quick methods or by radically changing the existing the
processes. He insisted on first bringing the existing processes to a stable
condition before embarking on six sigma journey.
Finally, the event came to end with a vote of thanks
by Mr. V. Seetharaman, Chairman-Monthly Meetings, IIMM.
Also see other Lectures/Conference
Presentations by Mr. Ari.