Opstakes 2015

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From the

Editor’s DeskFrom the

Editor’s Deskhat was infeasible then, seems feasible now and what Jules Verne visualized ahead of his time is becoming Wtrue now. You can read newspaper on your mobile on

the run, You can have the entire library in your pen drive, and above all nanotechnology can even manufacture robots so small

that they can be navigated inside human body to cure cancerous tumor at the place of its growth without even a single drop of blood wasted or any single cut in the skin. Virtual reality is making it possible for doctors to perform complex surgery on patients without face-to-face encounter with them. Materials are smart enough to sense temperature and other weather conditions to change the comfort attributes accordingly, be it the paint on wall, be it your clothes, be it your car…

The operations managers are at the front, processes are changing game and technology is shifting entire paradigm of our living in every domain. The RFID, Internet of things, Operational Intelligence, Quality Excellence, Strategic Alliances and modelling scenarios are few topics covered in this edition of OpStakes to represent flavor of this year.

Online retail is changing business of traditional retail in a big way. The need of the hour is to sustain its exponential growth with equally effective logistic support. Technology and supply chain managers should address this bottleneck of online retail chain very carefully, otherwise it may turn into other bubble burst. The articles in this issue are focusing on all these challenges from different perspectives. Our young authors have discussed many challenges, opportunities and solutions for today's dynamic business environment.

Innovation is a collaborative activity which needs an initial ignition. We hope this issue will give many unfinished tracks for our readers to innovate; and this is precisely the intent of OpStakes.

With Best Wishes,

Prof. (Dr.) Manoj K Srivastava

Area Chairperson, Operations Management Area

OpStakes 2015OpStakes 2015

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Usage of drones as RFID readers andchallengesinvolved

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Emerging Delivery Mode in SupplyChain - DroneDelivery

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Application of Drones as RFID Readers andChallenges Involved

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A Peak InsideOnline Retailer’sWarehouse

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Re-shoring is Fab or a Fad?

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Is Re-shoring a Fab or a Fad?

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Crossword: Mind@Work

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Is Re-shoringa Fab or a Fad?

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In Focus:Joseph M.

Juran

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Importance of quality controlin avoiding aproduct recall

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Table of Contents12 Steps to

Benchmarking

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FIFA 2014

1From the Editor’s

Desk

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FIFA 2014: A Tournament Planned Against All Odds

FIFA World Cup 2014 was an affair to remember. It was government made the Committee of the Strategic Plan an affair that cost Brazil its best chance to win the world of the Brazilian Government Efforts (CGPEAC). This cup, but also an affair in which the country rose up to Steering Committee was responsible for the 2014 the challenge of hosting this phenomenal event World Cup Management and Monitoring Support despite all odds. System (SGMC), an online tool that kept an eye on the A much-awaited tournament in which the world's best activities of the host cities, through the Transparency 736 players along with 33 referees participated in 64 Portal which was formed by the data submitted by world cup matches broadcasted in 46 countries. It was cities and states on the projects, funding, bids, cash attended by 53.8 million local and 7.48 million flows and progress of works to help the Audit Courts, international football fans. It was a 14 Billion USD the general population or the local government to project; the most expensive so far. But, let's not get access and monitor the expenditures.overwhelmed by the sheer statistical scale of the project.

14 billion USD were spent on this event that made it by far the costliest FIFA World Cup. The fact that more

For the event to occur as per regulations of FIFA, an than 80 % was from the public money enraged the organizing committee was formed whose basic role middle class who initiated widespread as they believed was to identify, plan, execute and monitor the projects the money could have been spent on hospitals and needed to be undertaken. Planning was the most academic institutions that were in a state of disrepair. important step, and was initiated by dividing the entire When compared with the 2010 World Cup, FIFA 2014 project into work packages on the basis of priority and was 238.9% more costly. The tourism spend of 2014 deadline. World Cup stood at staggering sum of 3 billion USD as First Planning Cycle: compared to 333 million USD in 2010. 3.6 billion USD It targeted on infrastructure that started as early as was spent on building 12 stadiums and around 8 billion possible and included the construction of stadia, were spent on 56 infrastructure projects covering airports and urban mobility. airports/logistics, roads, subways and other hospitality Second Planning Cycle: arrangements.It focused on projects that were in process and would be completed soon. The list included tourism infrastructure, security, telecommunications, energy,

Out of the 18 venues available in Brazil, 12 venues were Information Technology and environmental selected to host the world cup matches. sustainability.

Third Planning Cycle:It aimed at processes that had to be planned prior to the actual time of implementation. This included airway routes, airports, ports, transportation and urban mobility operations. In addition to this, “Responsibility Assignment Matrix”; a document executed by the federal, state and local governments and clubs whose stadiums will receive World Cup matches was formulated which explains responsibilities and timelines for each organizing member regarding the activities at the stadiums and

Preparing stadiums for the world cup meant carrying around them, urban mobility and renovations at out repairs, fitting the stadiums with the necessary airports and tourist and port terminals. equipment for the hospitality, IT, media, catering and To monitor and control the construction work ticketing facilities required. The stadiums were efficiency, timeliness and transparency, the prepared under strict supervision, with directions for

Cost that Exceeded all Expectations

Planning the “Unplannable”

Stadiums: The Major Infrastructural Challenge

Apoorv Kumar, NITIE MumbaiLakshya Batra, NITIE Mumbai

1


The Manaus StadiumManaus is located in the middle of the Amazon rainforest, and due to a distinct lack of truck-accessible roads, access to the city is primarily through boat or airplane. Most materials for the stadium were sent from the port of Aveiro, in Portugal. Three ships brought steel and a fourth brought the sheath that serves as the stadium's partial roof. Each ship needed roughly 17 to 20 days to cross the Atlantic Ocean, navigate the Amazon River and its tributaries to arrive in Manaus. The stadium is a few thousand miles away from the nearest steel refinery in a climate that yields 43 inches of rain between December and March and forced the engineers to procure special plastic that won't melt during summer. In addition to this, FIFA imposed several adjustments to the work originally envisaged, including adherence to LEED energy efficiency requirements and adoption of new visibility parameters, resulting in many change orders with strong pressure on the budget. In order to tackle the shortage of skilled professionals in Manaus, on-site schools were created to prepare construction professionals, e.g., masons, carpenters and equipment operators. Given the distance from Manaus to major production centers (approximately 3,500 km from São Paulo) and the large quantity involved (67,000 cubic meters of concrete), the contractor installed plants of precast concrete, reinforcing steel and formwork on the construction site. The precast concrete plant currently produces 880 pieces/ month, encompassing tiers, steps, slabs and inclined beams. This quantity and variety would be impossible to get from local suppliers. The stadium was a year late in its completion and was incomplete even three weeks before the scheduled launch. The Amazonia Arena ended up costing $294 million, some 25 percent over budget.

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accessibility, safety, comfort, lighting, structures and ready on time, private players were brought in services requirements defined by FIFA. including opening them up to private investment; the None of the stadiums was prepared on time, and only 6 management of three airports was auctioned off to the were ready for the confederation cup held in 2013. Of private sector in 2013. But still some projects were not the 12 stadiums, 3 were built anew at Natal, Recife and complete, and the organizing committee had to resort Salvador, 8 were renovated and one at Manaus was down to welcoming the fans with temporary canvas demolished and rebuilt from scratch. terminals.

With 600,000 foreign tourists coming for the Rise in hotel complexes was a given during the world tournament, handling the crowd becomes a major cup, and Brazil was not equipped to accommodate the challenge and in all sincerity Brazil was not ready to visiting supporters. Except for Rio de Janeiro, São Paulo accept this one. When some of the host cities are and Curitiba no other host city was better prepared to separated by thousands of miles, the demand for meet this demand and in the other cities, a total flights was very high. projected deficit of 62,397 hotel rooms was estimated. The daunting challenge was to expand the existing over To tackle this problem, it was decided to not only add saturated airports like the ones in Brasília and São 19,493 new housing units to the hotel complex of the Paulo (Congonhas and Guarulhos) which according to a host cities but also to use alternative types of 2009 report are designed for 10 million and 12 million accommodation, such as seasonal rental of property, passengers respectively, but handle 12.2 million and accommodation in neighboring towns, or even the use 13.7 million passengers respectively. of idling cruise shipsTherefore, for expansions of the airports, legislation Transport was the area which was the most plagued, was introduced to authorize “Infraero” the state's since most of the public transport projects designed to airport operator to speed up airport works. modernize Brazilian cities for the 2014 soccer World However, owing to the late start and unorganized Cup were scaled back, delayed or cancelled as legal approach it was forecasted in 2011 that 10 of the 13 challenges, corruption and a lack of planning blotted terminals that needed upgrades were unlikely to be the event.completed in time for the tournament. As a Originally, 49 projects were planned to overhaul the consequence of this, to ensure that the airports were existing transport infrastructure, but most of them

Airports Urban Planning


were behind schedule, be it introduction of tram lines 2014 World Cup which functioned as advanced or reconstruction of metro links. This challenging command and control stations operated by agents of situation had to be dealt with poise as the World cup the military police, civil police, firefighters, Medical was just round the corner; the government involved Mobile Emergency Assistance (SAMU), federal police, the private sector for completion. Secondly, school and federal highway police, municipal guards, civil defense, offices were given holidays to speed up the renovation and the Traffic Engineering Company.process, and also legislation was changed to release certain critical projects from the chains of uncertainty. When you are being visited by countries from across

the globe, all services related to the World Cup, such as The federal government provided $1 million to the host tour guides, volunteers, hotel and restaurant staff, taxi cities to deal with the waste generated in the Fan Fests, drivers, bus drivers, public servants, must be ready to in stadiums and their surrounding areas. Some cities offer them the best possible treatment. didn't have a recycling plan in time to obtain the For this, a proper training of human resources was financing. provided with the efforts of local governments that According to an agreement between FIFA and the included foreign language classes and courses in Brazilian government, all 12 stadiums built and hospita l i ty management. Addit ional ly, the refurbished for the World Cup would seek LEED Volunteering Program which was one of the Cup's certification. flagships in the area of human resources was initiated According to the U.S. Green Building Council, in some which involved both students and senior citizens in stadiums 20 percent of construction material was large numbers. recycled, up to 90 percent of total residues from the Volunteers received training, spoke different construction were recycled, water consumption was languages, wore uniforms and were identified by reduced 67 percent and yearly electricity usage is badges which helped them in better servicing and projected to be cut by 13 percent. Stadiums in Belo understanding the needs of fans in areas, especially Horizonte, Rio de Janeiro, Recife and Brasilia installed stadiums and surrounding areas, as well as Fan Park solar photovoltaic panels, which will be used after the sites in the host cities. World Cups. Some stadiums, however, reduced the Considering the challenges that Brazil has to face in scope of the sustainability measures such as solar order to host the most expensive FIFA tournament till panels due to lack of time. date, every issue was tackled by the planners in the best

way possible. The indomitable spirit of FIFA stayed alive through In the event of major proportions and visibility as the every step of the planning and execution way before World Cup, assurance of safety is perennial. Therefore, the fever of FIFA hit the world during the summer of to reduce the response time of police action and to 2014. Brazil may not have been prepared when it contribute to reducing violence even after the signed on to be the 2014 FIFA host but the level of competition, investments of R$ 1.70 billion were preparation and willingness to overcome all pumped in to enhance security infrastructure (vehicles shortcomings pushed them to host a tournament that and aircraft, communications and technology will be remembered for years to come.systems), training, weaponry and other essential

expenditures. Additionally, a total of 78000 police officers were deployed in the host cities to not only resolve issues of safety of the general population, but also to the issues of violence inside the stadiums. To facilitate the coordination of the police forces and to keep them alert and sound, IT companies were hired to provide them with robust security infrastructure. For this IBM became responsible for designing the Integrated Command and Control Centers technological centers which concentrated decisions concerning security during the games.There were 27 trucks with the information technology, communications systems, and video monitoring for the

Services

Green World Cup

Security

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Did You Know?India is almost 10 years behind China in the e-commerce space. China's inflection point was reached in 2005 when its size was similar to India's current market size. Thankfully for India the dynamics currently are similar to what existed in China then growing broadband penetration, acceptance of online marketplaces, and lack of physical retail infrastructure in many places.


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Importance of quality control in avoiding a product recall

Amol U Rathod, We School Mumbai


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Introduction

Importance of Quality Control

before shipments are made. Selecting a sample group from each batch allows you to sample select products A product recall is a request to return a product after from each batch thoroughly in order to ensure that the the discovery of safety issues or product defects that quality standards your company has established have might endanger the consumer or put the maker/seller been met. When products in the sample set do not at risk of legal action.meet your standards, you still have time to take care of Now a days product recall is happening such a the problem before shipments leave your facility.frequently that every month we come across 5-6 Know Industry Standards Before Creating New product recall news which is not only hazardous but Productsalso fatal like in cases of drugs,cars etc.While creating products to meet today's industry Recently Honda Motor Co recalled number of U.S. cars standards helps you create products that are well and from model years 2001 to 2006 to replace potentially good for use today, if you invest more time and energy defective Takata Corp air bags. Which creates very bad into creating products that exceed them by far the impressiom on customersperception to look at odds are even better that you've created products that companyare built to last well beyond the standards of today and There are so many factors taken under consideration to tomorrow.avoid product recall and one one of the most important Build Strong Relationships with all Suppliersis QUALITY CONTROL.No business is an island. From raw materials to parts, pieces, and equipment, you depend on other people to

There are a lot of elements to consider when running a keep you supplied so you can meet the needs of your

business, and staying on top of quality control for all of customers. Develop strong relationships with your

your products and supplies can sometime slip from the suppliers and only do businesses with suppliers you

list. But a product recall can damage both your bottom feel confident trusting. Remember your reputation

line and your reputation.may depend on them delivering the quality products

Quality control is very important during manufacturing you expect from them. Trust, but verify. Trust that

as product recall causes inconvenience to customer they're delivering a quality product, but take the time

and leads to mistrustto verify that you're getting what you're paying for

Measures to avoid product recall-before you put it in your products.

Set High Quality Control StandardsTake the instruction manual seriously

It's not enough to create products you believe in. You This last point might sound simple enough, but it is one

must also go to great lengths to ensure that every that can lead to product recalls due to a failure to

product leaving your company headed for retail shelves follow. For some companies the instruction manual is a

meets the demands you've set forth, as a business. forgettable afterthought, so much so that in many

Sometimes, products come off the line that do not cases they even leave it to the Chinese factory to

meet specifications. That's why it's so important to create! If people don't understand your product,

visually inspect each and every product before including its proper use, cleaning and maintenance,

shipping.you are likely headed on the dark path towards a major

However, it's difficult to test every product thoroughly problem

Did You Know?For every Rs 100 spent on e-tailing, Rs 35 is spent on supporting services like warehousing, payment gateways, and logistics, among others. Presently, aggressive pricing in India is leading to e-tailers making losses on every segment. For a Rs 100 sale of a book, the e-tailer incurs a loss of Rs 24, a loss of Rs 13 in mobiles, and Rs 8 in apparel.

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Products Or Quality Products

Measures To Be Taken During A Recall

quality control norms by making it mandatory for all the six national level commodity exchanges to register What makes a company win the hearts of its their existing warehouses with Warehousing consumers? Its products. But precisely speaking its Development & Regulatory Authority (WDRA) by the quality products, which few of the companies does not end of this year to ensure the quality and quantity of recognise the importance of, like Johnson & Johnson produce lying with them.which had to recall 200,000 bottles of liquid Motrin

followed by its first recall of Tylenol in 1982.When it comes to consumer satisfaction the first major factor There are few other measures companies might take to that rules over the others is the quality, a company streamline the production process.offers them. Companies for this sake do maintain lot of divisions in their plants especially bound to measure One of the ways of managing a recall is to plan for one and maintain the quality of its products. ahead of time.A company's failure over maintaining its product l Not only does the company needs to take enough quality may land the company into grave losses, like measures in preventing product recall but it also recall which can not only cause ignominy about the needs to prepare itself for a post recall mechanism. company but may puncture the product line, could It should have product recall team comprising of a cause unrecoverable monetary loss, could cause the recall manager, include several other members consumers to lose faith in a long run and in extreme from different realms such as medical, regulatory, cases may also require the company to shut down like it l e g a l , q u a l i t y, p r o d u c t d e v e l o p m e n t , happened with Peanut Corp. of America. Beyond all, in manufacturing, risk management, finance, the pharmaceutical industry this becomes a heart technical services, distribution/logistics, sales, sinking moment for a drug maker in context of health consumer affairs and document the recall chain of and safety of the consumers. command. To prevent these kinds of circumstances the country l Ensure solid practise for monitoring product established several regulating authorities like Bureau complaint monitoring.of Indian Standards to ensure the final lot meets the l Also make sure continuous monitoring of good ascertained standards. But yet companies suffer manufacturing practices (GMP)recalling of their lots, which is caused due to several reasons. Documentation of standard operating procedures for 1. Ineffective quality controlling techniques followed handling product complaints, quality testing, by the company. decision making of product recall. 2. Faulty equipment for ensuring the quality that l Product manufacturing always accompanies faulty should be met by the final lot. products in the lot doesn't necessarily mean every 3. Negligence on the side of the quality such situation calls for a product recall. A company inspection/assurance managers by not actually getting must be enough strategic in making a decision of involved in the process supervision. product recall as it always ends with a huge burden 4. Poor manufacturing of the product ultimately on the producer.leading to product contamination. l And hence the manufacturers must ascertain few 5. Inadequate training being provided to the regulations and standards for the product employees involved in quality assurance. manufacture.Afore mentioned reasons have increased the product l Maintaining a document of procedures always recall exponentially causing indelible harm to the becomes in essential and crucial in times of a companies. As a reason, and most prominently the product recall to prove the company has followed NSEL fiasco has made government to tighten the best practices and incorporated all necessary

Subhrajyoti Das, XIMBKranthi Sunku, XIMB

Importance of quality control in avoiding a product recall


7

l This helps the company in maintaining integrity measures in trying to prevent any such situation.during audit trials.Make sure your company is legally protected by

product recall insurance.Know your business costs.l Not many companies except for a bare 15% possess l As already said it is better to be prepared for a recall recall insurance.

and then file a policy of standards to be maintained l In the event of a recall when the firms are accordingly, so that at the time of recall it can come responsible for the recall and are conducting recall handy to the producer to refer to the drafted activities insurance companies do pay the costs of policies for taking emergency measures.the recall the firm incurs.

l This is very crucial in the case of virtual Win back the trust of your customers.manufacturers.l This is exactly where the marketing department play

a very excruciating role in regaining the trust of the When you have an issue, develop well framed customers and to keep up the good will of the strategy for full investigation.company.l After a recall it becomes of high prominence to

l It should come up with innovative strategies of perform a rigorous investigation to avoid rolling designing brand promotion for newer products that recall.have entered the market and also to promote the l Depending on the intensity of damage, the product existing product which had to be recalled by has caused, investigation has to be made about the rebranding it in an efficient way which would ease of identifying the fault, degree to which it is recover the company from becoming a victim to obvious to the consumer.undeniable grave losses.

l Few methods like customer engagement in Effective communication, if done, can pay you back preventing any further faults and also conducting a during the three phases of recall.

l survey among them and then accordingly can Pre-recall, post-recall and even during recall

design a strategy to reach to the targeted audience.communication is very much required by a company

to inform all its stakeholders to make them updated Learn from the experience. about the situation.l Lastly feedback would play a very important role in l Communication can be of any form like, text, email,

any such kind of situation and trying to learn from fax, letter or even a call but should be suited to each the experience of a recall helps the company in long situation.runs to develop flawless products which would l Post recall communication also holds crucial for the reduce any additional costs, thereby trying to company to build back the trust in their customers design products that actually serve customers' that the product on the shelf is safe.needs.

Ensure timely product correction to protect

consumers and your business.l Before we can communicate to our stakeholders

about the recall and post recall situation we must

ensure the entire contaminated product is swept off

the shelves to ensure safety for which special staff

and quarantine needs to be appointed.Hence quality improvement is very important to

l For this purpose we can also have an efficient field prevent product recall and sufficient measures by the

force to expedite the procedure.company in that matter is a MUST.

Follow proper regulatory rules and regulations l Following of regulatory procedures becomes crucial

when you have to val idate your recal l

system/equipment that it produces efficient results

consistently.

A continuous improvement is a never ending process a company should be bound to.“

”

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INFOCUS

Joseph M. JuranJoseph M. Juran Professional Career

Introduction

Background

Education

Electrical Engineering. After he graduated from the University of Minnesota, Joseph put his education on hold and went to work. In order to reduce costs, Joseph's work hours were reduced during the depression. Joseph used these extra hours to attend classes at Loyola University. Juran received a J.D. in Law at Loyola University in 1936.

Joseph started his professional career soon after he graduated from the University of Minnesota. In 1924 he started working with Western Electric. At Western Electric Joseph worked within the inspection department of the famous Hawthorne Works located in Chicago. Hawthorne Works was a very large factory that employed 40,000 workers. The complexity of this factory introduced Joseph to his first challenges in management.In 1926, while working at Hawthorne Works, Juran received a rare and extraordinary opportunity. At this time a team of Quality Control pioneers from Bell Laboratories designed a program to implement new tools and techniques at Hawthorn Works. In order to carry out their program effectively the Quality Control pioneers needed to implement a training program for the employees of Hawthorn Works. Juran was chosen

Joseph M. Juran has led a life of success and as one of the two engineers who were to work for the accomplishments. Using his intelligence and promising inspection Statistical Department.dedication Juran changed himself from a poor This quality control department was one of the first of Romanian immigrant into a world renowned quality its kind in the nation.control expert. He has had a varied successful career as Juran kept working his way up within Western Electric. an engineer, as a writer, as an educator and as a By 1937, Juran had become the chief of Industrial consultant. Juran has been called the “father” of Engineering at Western Electric's home office in New quality, a quality “guru” and the man who “taught York. As chief of Industrial Engineer, one of Juran's tasks quality to the Japanese.” Juran has expanded the was to discuss the different methods of quality philosophies of quality from its statistical origins to management with other companies.what is now known as Total Quality Management.

During WWII, Juran took a temporary leave of absence from Western Electric. During this time Juran worked in Washington D.C. as an assistant administrator for the Joseph M. Juran was born in Brailia, Romania, during Lend-Lease Administration. Juran and his team worked December of 1904. When Joseph was five years old his on improving the efficiency and eliminating the father left Romania and came to the United States in e xc e s s i v e p a p e r w o r k o f t h e L e n d - L e a s e order to make a better life for his family. Three years Administration's processes. By making these processes after he had left Romania Joseph's father had earned more efficient, Juran and his team hastened the arrival enough money to bring the rest of his family to the of supplies to the United States' overseas friends.United States. When Joseph was eight years old he and

his family moved to Minnesota. The Jurans left Juran finished his work with the Lend-Lease Romania with hopes of prosperity. Their hopes were Administration in 1945. At this time, Juran's temporary unfulfilled; they remained in poverty even after they leave of absence from Western Electric had stretched came to the United States. to the span of four years. Juran decided not to return to

Western Electric. He decided that his true calling was to devote the remainder of his life to the study of quality

During his youth, Joseph excelled at learning. Joseph management.

was so far ahead of the average students that he In 1945, at the age of 40, Joseph took the position of eventually skipped the equivalent of four grade levels. Chairman of the Department of Administrative Joseph's desire for excellence and education allowed Engineering at New York University. This position was him to become the first person from his family to not enough to keep Juran busy, so he also started his pursue a higher education. In 1920, Joseph enrolled at own consulting practice. Juran worked as a consultant the University of Minnesota. In 1924, Joseph graduated to businesses and organizations in forty different from the University of Minnesota with a B.S. in countries. On top of both of these jobs, Joseph


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continued writing books and delivering lectures for the Quality Control Handbook became the standard American Management Association. reference work on quality control and established Juran The Union of Japanese Scientists and Engineers (JUSE) as an authority on quality.invited Juran to Japan in the early 1950's. In 1954, Juran arrived in Japan and conducted seminars for the top-

Nearly thirty years after Juran visited Japan, Emperor and middle-level Japanese executives. Juran's Japanese Hirohito recognized Juran's contribution to the lectures were taken so well that he was asked to give development of Japan's quality control and the more lectures to JUSE and to the Japanese Standards facilitation of a U.S. and Japanese friendship. Juran was Association. After his lectures, Juran's work spread awarded the highest award that can be given to a non-throughout Japan. Large Japanese companies started Japanese person, the Order of the Sacred Treasure.their own internal training programs, the national radio

offered courses for foremen, and booklets were available at newspaper kiosks. In Juran's Quality Control Handbook, he states that the In 1979, Juran founded the Juran Institute. The original word quality has two different meanings that are purpose of the Juran Institute was to provide a spelled the same way. These two different meanings of continuity of Juran's ideas through video programs. The video series, Juran on Quality improvement, was very successful. This led to the institute to take on many other activities, and Juran worked as the institute's manager.In 1986 Juran helped with the creation of the Malcolm Balbridge National Quality Award by testifying before Congress and serving on the Board of Overseers.Throughout his lifetime Juran had a varied successful career as an engineer, as a writer, as an educator and as a consultant. But eventually Juran decided to end his career. In 1987, Juran quit his job as the manager of the

quality have caused confusion since some people Juran institute. Throughout 1993 and 1994 Juran gave a assume you are using one definition of quality rather final series of lectures. After these lectures were than the other.finished Juran ceased giving any public appearances.

Juran decided to focus the remainder of his life on his This is an example of the confusion of the word quality family and writing projects. that was taken directly out of the Quality Control

Handbook.

Juran has had many o f h i s w o r k s published. He has made contributions to literature in more than twenty books and hundreds of published papers. Certain selections of his writings have been translated into seventeen different languages.J u r a n s t a r t e d p r o f e s s i o n a l l y writ ing in 1928, when he wrote a

Juran's two definitions of Quality are as follows:pamphlet entitled “Statistical Methods Applied to Manufacturing Problems.” This pamphlet has since � "Quality" means those features of products which become the basis for the well-known AT&T Statistical meet customer needs and thereby provide Quality Control Handbook, which is still published customer satisfaction. In this sense, the meaning of today. quality is oriented to income. The purpose of such One of Juran's most influential books is the Quality higher quality is to provide greater customer Control Handbook. The original edition was published satisfaction and, one hopes, to increase income. in 1951; there are now four published editions. The However, providing more and/or better quality

Awards and Honors

Juran's definitions of Quality

Writings

“At one bank the upper managers would not support a proposal to reduce waste because it had the name "quality improvement." In their view, higher quality also meant higher cost. The subordinates were forced to revise the proposal "productivity improvement" in order to secure approval.

”

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OpStakes 2015OpStakes 2015� features usually requires an investment and hence to manage for quality. The three processes combined

usually involves increases in costs. Higher quality in are called the Juran Trilogy and include quality this sense usually "costs more". planning, quality control and quality improvement.

� "Quality" means freedom from deficiencies-freedom from errors that require doing work over

Throughout his career Joseph M. Juran has led a very again (rework) or that results in field failures, successful life and has made many contributions to the customer dissatisfaction, customer claims and so fields of quality control and quality management. on. In this sense, the meaning of quality is oriented During his career Juran taught many of society's leaders to costs, and higher quality usually "costs less".and affected the entire world. There are many people who haven given quotes of approval regarding Juran.

Among these people are Steve J o b s fo u n d e r o f A p p l e Computer and Next, Peter Drucker a writer and theorist a n d L a w r e n c e A p p l e y chairman emeritus of the A m e r i c a n M a n a g e m e n t Association. The quote that says the most is given by Jungi Noguchi, Executive Director of t h e J a p a n e s e U n i o n o f Scientists and Engineers, who stated, “Dr. Juran is the greatest authority on quality control in the entire world.” Juran never sought fame through his work; he only wanted to make sure that his a c c o m p l i s h m e n t s w e r e purposeful and genuine. Juran

Juran believed that turning company goals into results, was once quoted saying that “…it wouldn't bother me if or making results happen, is done through managerial I'm not remembered at all.” As long as there is an processes. When a company's goal is quality, they need interest in quality, Juran will not be forgotten.managerial processes that focus on quality. Juran defined three managerial processes that are necessary

Conclusion

Making Quality Happen

Some Famous Quotes� “I consider a bad bottle of Heineken to be a personal insult to me”, Freddy Heineken, founder of Dutch

beer giant� “All we are doing is looking at the time line from the moment the customer gives us an order to the point

when we collect the cash. And we reduce that time line by removing non-value-added wastes”, Taiichi Ohno 1912-1990, Toyota Executive and father of the Toyota Production System

� “If you cannot describe what you are doing as a process, you do not know what you are doing”, W. Edwards Deming 1900-1993, American continuous improvement management guru and father of the Deming Cycle

� “The best supply chains aren't just fast and cost-effective. They are also agile and adaptable, and they ensure that all their companies' interests stay aligned”, Hau L. Lee, US Professor of Operations, Information and Technology in Harvard Business Review, Oct. 2004

� “Even though quality cannot be defined, you know what quality is”, Robert M. Pirsig 1928-, American philosopher

� “Operational excellence remains a greater imperative than most companies and most executives acknowledge”, Gene Tyndall in Supercharging Supply Chains (1998)

� “Plans are nothing, planning is everything”, Philip Kotler, Marketing Author, Consultant and Professor� Perfection is not attainable, but if we chase perfection we can catch excellence”, Vince Lombardi, former

American Footballer, Coach and Executive

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From an economic and political stand point the But in some cases organizations rushed to send work concept of "Re-shoring" might be an ideal situation to overseas and didn't recognize the downsides of this have for a country. However, to remain competitive in action. For instance offshoring human resources business, companies need to do what is practical and processes can lead to a lower-quality employee prudent. experience and potentially reduce productivity as The concept of 'Re-shoring' employment back to the workers in developed countries and managers seeking developed countries might be gaining impetus now, HR support may not be served well by foreign call but Four or five years ago, it was hard to get anybody to centres. even to talk about it, the media, the companies, the Also talking about India, even though re-shoring jobs trade Unions and now everybody is talking about it. could have an effect on the Indian job market, experts But one of the important things is that these countries' feel that off-shoring jobs cannot be completely taken employment market is unlikely to see a huge impact in out of sight mainly due to the cost-competitiveness. In a short span of time. fact the previous records say that countries can cut In recent past, there have been some instances where down on off-shoring but they cannot eliminate it as of some the developed nations, including USA and UK, there is a huge difference in cost of using their own have said that there are great opportunities to bring manpower vis a vis off-shore ones.back millions of jobs from low-cost countries like India and China. This trend is still very nascent, and is mostly Still, there are a few things that could possibly in manufacturing. But IT services too have been determine whether re-shoring is the real thing. One of impacted to a greater extent. them is the government which can do its part, Some of the reasons for re-shoring is the increase in particularly at the federal level, that is by creating legal unemployment rates and a consequent shrink in wages and fiscal frameworks which remove uncertainty and in these countries, combined with political pressure to allow companies to make proper and sound business create jobs domestically. There are also other factors plans.that drives re-shoring, such as, competitive labour Also State and local governments can create the right costs, proximity to customers, suppliers, and research business environment through in many ways like and development, lower transportation costs, through tax incentives, giving accelerated permissions declining energy costs, need for better quality controls and also through increasing the ease of doing business. and to strengthen legal protections of intellectual For instance, Greek yogurt maker Chobani built a $450 property. These are probably the main drivers which is million plant in Idaho, USA in record time only because why multi-national companies are recognizing the the state government was always two weeks ahead limits of shipping work abroad and looking to beef up with permits and other documents.operations domestically. Along with that Governments can also facilitate the Among the companies which showed the signs of "re- creation of “business eco-systems”, which is nothing shoring" was Apple Inc. Its recent announcement was but the networks of various suppliers, 3PLs, service that it would manufacture some of its computers in the providers, stable and well run unions and R&D centres United States instead of doing it in China. Also in the that manufacturers require to be successful.beginning of 2013, NCR Corporation which is an ATM But to go with all these government can't solve these Machines manufacturer, took back some part of its problems themselves. Companies need to chip in as ATM production from India, Hungary and China to the current education system in developed countries is other new manufacturing facilities in Columbus, Ohio not set up to enhance talent quickly enough to fill the in the US. shortage of skilled labour on its own. They can do this Since off-shoring is a long-term business plan and by working with competitive colleges, tapping into companies who decide to off-shore do it for multiple “new” overlooked talent pools such as veterans and reasons and only after examining each and every women, and by working together within their alternative. Hence, a sudden policy change may not companies to develop industry-specific skills in much have any short-term implications on the labour force. less time than what it is with the traditional education

How to Making it Stick?

Umakanth Dalai, NITIE MumbaiLalit Madan, NITIE Mumbai


12

channels. doing it keeping in mind the factors like cost In short, the companies need to develop a strategies to competitiveness and the need for increase in address the worker shortages and also help workers employment. Other important strategies include clear enhance their skills in line with the advanced understanding of the underlying conditions that drive technology that they will be operating upon. re-shoring attractiveness in an industry and testing Therefore the outcome whether “re-shoring” is fad or multiple consequences that make assumptions on how fab is far from certain at the moment. And before those conditions will change. Only then one can jumping on the re-shoring bandwagon, one must understand if re-shoring is the right decision for the carefully assess the timing, effort, and the benefits of company or not.

Across1. Game created by group of professors at MIT Sloan School of Management to demonstrate key principles of supply chain management. Game known as _______ distribution game.3. Concept of assembly line is attributed to this gentleman.5. He worked for 12 years at IBM and joined his current company in 1998 as SVP (Operations)9. This company started logistic services in India in 1989 between Madras and Mumbai.12. This approach in manufacturing has the largest lead time13. Six_____ is a set of techniques and tools for process improvement. It was developed by Motorola in 1986

Down1. Factory established more than 150 years back; now the place lends it name to a famous brand2. With the conception of this company, a new concept: international air express was born in 19694. Australia's largest transport company6. C. Douglas Mcmillon is the current CEO of this company7. One of India’s largest domestic delivery networks10. Improvement for the better11. This company routes package deliveries so that drivers will never turn left

Up8. One of the seven wonders of the world. It took 22 years, 20000 workers and 32 crore rupees to complete this

CROSSWORD: mIND @WORKCROSSWORD: mIND @WORK


13


Re-shoring is the new buzzword in the industrial sector. some other concerns that the manufacturers have. Couple of years ago, General Electric moved their Also the customers, when purchasing a good want to washing machine and fridge making business to know whether the product will last. Quality is Kentucky from China. This was not a one off incident. increasingly becoming a crucial decision in customers' Over the last few years, companies have consistently decision to purchase. By moving their operations back transported back their business from offshore to their native countries, companies can count on locations to their own backyards. If the last decade and certain aspects of production. They can be sure that a half was all about “Outsourcing”, “Re-shoring” could the workforce will have a certain amount of training take the major chunk of the pie in the next. and education. Also the machinery used will be top Now what has prompted companies and organizations notch and according to the standards demanded by to move closer to their own backyard? Cost was a major you and your customers. factor in companies offshoring their businesses. Another major reason that has led to increase in the Countries like China, India and the Philippines with recent Re-shoring activities is the turnaround time. For their cheap labour proved to be a viable option. any business to respond quickly to the tasks, challenges Outsourcing boomed benefitt ing both the and opportunities prevalent in the market they need to organizations as well as the emerging economies like have a short supply chain. The closer the China. In recent years, China has seen tremendous manufacturing operations to the market the better it is growth. This has invariably lead to increase in labour for the business to flourish and grow. This is particularly costs as well prompting major firms in the U.S to important in sectors like fashion, interior design and rethink their outsourcing strategies. According to a textiles. Achieving such a supply chain structure isn't an report there was a 10.7 percent increase in China's easy task when the company's manufacturing wages in 2013. Wages are expected to increase by 11% operations are oceans away. For example, many this year as China moves towards a more service Chinese manufacturers don't ship the goods unless oriented economy. The “One Child Policy” has also they have been paid for in full. As a result of the longer taken its toll as the demographics of the country have shipping times, the cash flow get strained and it taken a hit. China has an ageing population. This has becomes difficult for the manufacturer to replenish the opened a window of opportunities to neighboring cash spent by him on production. So there are payment countries like Vietnam and Myanmar where labor is issues as well. Therefore, reducing the turnaround time cheap. enables businesses to serve more customers and A major factor that has prompted firms to “Re-shore” respond more quickly and efficiently. Apart from their activities is the need to maintain the quality of the shorter lead-time and convenience reasons, Re-goods. There has been widespread criticism in the shoring is also done to increase the sales. Since due to West that in search of cheaper labor and more profits, shorter lead-time or turnaround time, the business can many of these firms have compromised on quality. This respond quickly to market forces without any is partly true. Most of the emerging economies have compromise on the quality whatsoever, the sales go relatively lower quality standards compared to the up. West. In China which is the hub of mass manufacturing, Another crucial factor in firms opting for Re-shoring is quantity often puts quality to the backseat. This can innovation. American and European firms have prided have a disastrous impact on the customer base. A great themselves in producing quality innovative products to example is the call center phenomenon. Customers in the customers. This entails the need for carefully the U.S know that when they dial a customer service studying the target market. Innovation also requires a number, they will be answered by someone in India and workforce, which is skilled to think beyond the ordinary Philippines speaking in a weird accent. This has led to and come up with something new. Outsourcing hasn't disillusionment among the customers who don't trust contributed much in the innovation department. Re-the product anymore. Problems like counterfeits and shoring allows firms to have their R and D departments other intellectual property related issues that are closer to the manufacturing bases helping in associated with production in foreign countries are innovation. Customer demands play an important role

Aakriti Dhawan, XIMBNarayanan M, XIMB


14

here. The marketing department surveys the target the company and said he wouldn't use any of Ranbaxy's customer base and takes note of the changing drugs himself. demands of the market. This is relayed to the R and D At the end of the day, Re-shoring depends on the firm's department who translate the demands into reality by outlook. For lot of firms the cost of outsourcing is still creating innovative solutions. Re-shoring provides a relatively cheaper. The number of jobs being major advantage here. The firms will have their bases outsourced is still a fraction higher. In such a situation, closer to their customers, which will help them in it would be unwise to opt for Re-shoring without delivering the solutions on time. proper planning. A lot of firms are unwilling to Re-shore A major advantage to the US has been the number of because of losing out on the consumer base of the jobs that have been brought back due to the recent Re- countries to which they have outsourced their shoring activities by the companies. Harry Moser, who operations to. founded the Re-shoring Initiative, an Illinois-based Before planning to Re-shore, companies should take nonprofit that works to bring manufacturing jobs back into consideration various factors that can affect their to the U.S, found out through tracking various decision. The two major factors that should be taken companies that about 120,000 jobs have been Re- into consideration are: macroeconomic environment shored back to the US since 2010. During the early and the industry environment. The macroeconomic 2000s around 150,000 jobs were offshored. However, factors are the external forces influencing the firm's by 2013 about 30,000 to 50,000 jobs were lost to decision and are beyond the control of the company. offshoring, whereas 30,000 to 40,000 jobs were They mainly include Economy, Population, Geopolitical brought back to the U.S. The balance between the factors, Technology and Resources. Industrial factors numbers of jobs offshored to those created has been playing a major role in the Re-shoring decision are the restored. As a result the Gross Domestic Product of the Customer base, the Supply Chain, Competitors and country has been gradually increasing. From 11 Employees. For example, a faulty Supply Chain can percent of the GDP in 2009, it rebounded to 11.5 plague the Company's operations to Re-shore. percent in 2011 and further 11.9 percent in 2012. Technological advancements also play a crucial role.

The recent trend towards Robots could nullify the advantage of low cost labour. Robots are cheap and are more efficient.The last decade witnessed an increase in the number of jobs in developing economies like India due to Outsourcing. This led to improved wages and standard of living. Ironically, this has forced companies to look at Re-shoring as a viable option. Over the next decade, it will be interesting to see the impact that Re-shoring will have on the Western as well as the developing markets. The push by global giants like Walmart and GE shows us that Re-shoring is here to stayA big boost to Re-shoring initiatives could be the psyche

But to go with all these government can't solve these of the American consumers who feel more comfortable problems themselves. Companies need to chip in as buying products, which have a “Made in the USA” tag. the current education system in developed countries is Such a tag implies better quality and trust especially not set up to enhance talent quickly enough to fill the when it comes to sensitive goods like medicines and shortage of skilled labour on its own. They can do this baby food. This skepticism amongst the consumers is by working with competitive colleges, tapping into based on their experience with foreign produced “new” overlooked talent pools such as veterans and goods. Ranbaxy, for example, violated FDA norms while women, and by working together within their manufacturing generic drugs consumed in the US companies to develop industry-specific skills in much market. This created a huge public backlash. Even less time than what it is with the traditional education Ranbaxy's former executive came out strongly against


15

Re-shoring is Fab or a Fad?

Introduction

Focal Point

Parameters Of Discussion

revenue and global opportunities for destination country. This article will mainly focus on changes in Before getting into any debate about re-shoring, we opportunity in host country, global environmental should understand offshoring, why it is done and what constraints, business strategy, home countries are its negative and positive consequences. opportunity and constraintsOffshoring is relocation of company`s business process

from one company to another, mainly an operation and production process or auxiliary process such as accounting.

Global environment is highly dynamic with incessant transformations. Events like euro zone crises, attack on world trade center determines the impact of business decisions and new global economic powerhouses. Big Offshoring can be viewed as production offshoring or firms are transforming themselves into `globally services offshoring, in production offshoring china is a integrated corporations` driven by rapid technological world-wide leader. Same spot is taken by India in developments, diffusion of innovations, value creation services. The logic behind offshoring is simple, “Labor opportunities and acquisition. How global firms arbitrage”, i.e. to reduce the overall cost of survives competitive global environment, answer lies manufacturing using cheap labor and tax haven. Jobs in strategically managed literature offshoring. In the are added in the destination country but are recent year's concept of re-shoring have become subtracted into higher-cost labor country. political hot-button issue because of dismal job market. The debate about offshoring is two decade old and has Modern trade suggest that foray in any new market been associated with both academic literature and depends on analysis of cost theory, supply chain mainstream media. Recently re-shoring has gained perspectives, environmental factors, resource-based popularity because of incessantly increasing theories, real options theory and work force.unemployment in country like United States. Some

supports offshoring by saying that it is an important part of globally competitive business environment, which requires companies to establish themselves in global market. On the other side, some criticize offshoring by saying that it is a miscalculated business decision that is lot costlier than initially envisioned. It is also said that once the companies will realize true cost of offshoring they will come back in their home country.Offshoring is the dark side of globalization. Money earned at offshore is spent in pleading local economy, eradicating global poverty. Big companies manufacturer offshore greenhouse gases, air pollution, waste and poor-working condition. But few

Economics: Geographical boundaries in economics things cannot be denied that these companies jobs,

Vikas Patel, NITIE MumbaiTanay Agarwal, NITIE Mumbai

Money, goods, waste, energy & people, all offshore to avoid loss, law, taxes, rules & regulations. Vast lawless oceans, strong financial and complex structure, high securities are the characteristics of offshoring. Offshore tax havens are used by almost all if companies around the world.

“

”

What`s unique about this articleThis article develops a conceptual and explanatory agenda to further advance the debate theoretically and offers policy consequences for business in both destination and home country. This article focuses on re-shoring implications by doing a multi-level analysis.

Fig 1: This is just an indicative diagram comparing production and employment in past years

Source- US EPA


16

have been an important part of research in studying are difficult to manage and control while still realizing movement of countries from one location to another. their benefitsUsing spatial economics we can explain a firm`s lOutsourcing and especially offshoring helps decision to offshore or re-shore. According to these companies mitigate risk and is also among the firms enters emerging market and take advantage primary reasons embarked uponthrough multiple channels: knowledge, technology, lOutsourcing also enables companies to realize the cheap labor, technology transfer etc. But this robs benefits of re-engineeringhome country of many manufacturing jobs and lSome companies also outsource to help them ultimately leads to unemployment expand and gain access to new market areas, by History: Institutionalism is defined as formal or taking the point of production or service delivery informal rules and routine that both constrain. When closer to their end usersface institutional pressure, firms are likely to react in But these are now realized to come at the stakes of different manner. Combined with strategic employment in Developed Nations as suggested in 1st management models. point and the employment scenario projected in figure Cost Theory: It offers insight about the offshoring and above. And this is where the need of Re-shoring comes re-shoring decisions. Williamson`s talks about the in. most suitable entry mode for a firm when entering in In a letter published in the Financial Times on 19 March core offshore competencies. It also talks about the 2014, Secretary of State for Business, Innovation and asset specialty and commitment in firm`s relocation Skills Mr. Vince Cable and Irish Minister for Jobs, decision. Enterprise and Innovation Mr. Richard Bruton wrote:Capability Theory: Capability theory and resource allocation is very important to figure out firm`s sustainable advantage.

Global environment is highly dynamic with incessant transformations. But before we dive further into the discussion, let us first look at the following points which resonate the need of Offshoring:lLower operational and labor costs are among the

primary reasons why companies choose to outsource. When properly executed it has a defining impact on a company's revenue recognition and can deliver significant savingslCompanies also choose to outsource or offshore so

that they may continue focusing on their core business processes while delegating mundane time consuming processes to external agencies

So the reasons lOutsourcing and offshoring also enable companies to

associated to feel tap in to and leverage a global knowledge base,

the need of Re-having access to world class capabilities

shoring in Europe lFreeing up internal resources that could be put in to

and US are as effective use for other purposes is also one of the

followsprimary benefits realized when companies outsource

Most of the cases or offshore

in re-shoring are lMany times stranded with internal resource

found to be in crunches, many world class enterprises outsource to

M a n u f a c t u r i n g gain access to resources not available internally

sector. And the top lOutsourcing, many a time is undertaken to save costs

3 reasons cited are and provide a buffer capital fund to companies that

surprisingly:could be leveraged in a manner that best profits the

l Reduces Total Cost of Ownershipcompany

l Improves quality and consistency of inputslBy delegating responsibilities to external agencies

l Reduces pipeline and surge inventory impact on just-companies can wash their hands off functions that

in-time operations

Analysis “Re-shoring offers a real opportunity to create products with greater European content and to restore Europe's industrial competitiveness and wider enterprise agenda. It also offers the potential to re-energize the EU's manufacturing sector while creating important new jobs in high technology and high productivity companies. It also challenges us to go further in creating the optimal conditions for our companies to innovate and grow. If we don't, then other markets stand ready to win new business instead of us.

”

Fig 2: Recent Reshoring Cases


turnover rates.It is identified that over 500 U.S. firms that have re-shored, about 60% of the work is re-shored from China. The two leading factors motivating U.S. companies to re-shore manufacturing from China to the U.S. are the rise in Chinese USD wages and quality problems. The quality problems are undoubtedly increased by the high turnover rates. The transition back can be difficult. Obviously the exit plan is more complex with an owned facility vs. sourcing from a contract manufacturer. Employees sometimes hold management hostage until employees' demands are met. There can be problems transferring funds out of the country.

l Clusters manufacturing near R&D facilities, enhancing innovationl Reduces intellectual property and regulatory

compliance riskl Eliminates the waste and instability caused by

offshoringSo does that mean Countries like India and China which have been hubs for Off-shoring are not satisfying upon these parameters?Interestingly, survey findings by Stanton Chase suggest that re-shoring is not having a negative impact on the manufacturing sectors of emerging markets like China or India. Manufacturing in those countries continues to escalate to serve robust local needs. In effect this is a form of re-shoring within the emerging market. The output of these plants is analogous to the plants being re-energized back in the USA and Europe. They now serve a strong local customer base and sustain their own “close to the customer” strategy. Off-shoring and re-shoring decisions are often core to companies' competitiveness, profitability, product quality, customer responsiveness and flexibility. However, when we look at US, a number of macroeconomic factors have tipped the balance in favor of domestic manufacturing, at least for some industry sectors. Among them are the appreciation of China's currency versus western currencies, China's labor rate inflation, increased concerns about supply interruption, lower energy costs in the United States as a result of shale gas exploration, .

So considering these trends, it is felt that Developed Chinese wages, no doubt, have risen by about 15 to

Nations are open to invest large in Re-shoring. 18% per year compounded since about 2000. As a

However, Emerging Nations are at the same time result, the labor cost/unit of output is now about 3-

optimistic. times what it was in 2000. For some products, there is

As per Economic Times article dated 2nd Feb 2014, Job about 25%, the manufacturing cost gap. The wage

portal Naukri.com's Business Head V Suresh feels that trends are expected to continue.

domestic companies need to wait and watch to The one-child policy has caused the workforce to drop

understand how the trend plays out. Off-shoring is a about 3.5 million/year while the real income is rising

long-term business strategy and companies who rapidly. Workers are less willing to work in factories,

decide to off-shore do it for multiple reasons. Hence, a especially with boring jobs. The resulting employee

sudden policy change may not have any short-term dissatisfaction drives strikes and also very high

17

In a speech at the World Economic Forum in Davos in January 2014, Prime Minister David Cameron said: If we engage in the right way, if we get the fundamentals of our economies right, sort out our debts, maximise our competitiveness and build on our strengths, then globalization offers our businesses the chance to win new contracts to export into markets that were previously closed and create jobs fulfilling the demands of new consumers thousands of miles away.Indeed if we make the right decisions, we may also see more of what has been a small but discernible trend where some jobs that were once offshored are coming back from East to West. I want Britain to seize these opportunities. Much as Britain can be the “Re-shore nation”, so Europe can benefit from this too. We are making progress in the battle for an enterprise-friendly Europe.And the EU leaders did encore that Europe needs a strong and competitive industrial base, in terms of both production and investment, as a key driver for economic growth and jobs. The overall framework at European and national levels must be made more conducive to investment and innovation and the re-shoring of manufacturing jobs.

Fig 3: Top 10 Reshoring Reasons


18

implications on the Indian labour market. operations back to United States (industryweek.com, India is a preferred destination for business process 4/20/2012). outsourcing activities and thousands of people are employed in this segment. Cost competitiveness and a large talent pool are among the key drivers for the country for remaining an attractive hub of off-shore work.So Re-shoring is certainly not a Fad across the globe but it is a Fab across the EU and US where everyone, with crossed-fingers, is looking forward to know how it unfolds and evolves in the near future.

Initially offshoring was mainly concerned with energy, utilities and oil and gas industry. So, on an estimate how many jobs have been migrated from United States since 1994? According to Department of Labor and trade adjustment a total of 2,677,282 jobs have been A firm re-shore because of global competition, migrated to host country by 2012. Primarily Asia is the changing conditions in host country, constraints, biggest benefactor it received nearly 55-60 % of the currency fluctuations, political instability. They job. respond to pressure because they want they want to

stay alive and competitive. Firm can go for number of strategy like, following a cost strategy and producing for home market, or both for home and host market, entering a new market or targeting a market. Because of significant failures in new markets, most of the firms are re-shoring, but this is not the end of the story, if government of host country is providing subjective opportunity set interests then firms are likely to invest further and proper balance between offshoring and re-shoring will be created.

Companies are relocating their operations back to their home in order to increase employment in their own country. China has said that they will move their

Conclusion

Fig 4: Job Loss 1994-2012Source: Department of labor and trade adjustment, US

Fig 5: No. Of ReshoringSource: Department of labor and trade adjustment, US



19

A Peek InsideONLINE

RETAILERS’WAREHOUSES

A Peek Inside

In the last five years, online retail--both direct and through

marketplaces –has had a helluva ride, going from nascence to critical

mass. So much so, today it has started to threaten the traditional

brick-and-mortarRetail.

Recognising the danger, many physical retailers have started to establish or beef up their online

Presence. Some of them, who play to their strengths of physical reach

and multi-location presence, will be able to build successful and, more

importantly, complementary, business models – just as it

happened in the US.

In this big high growth business, a great deal happens from the

moment you confirm your order to the moment your pakage appears on

your doorstep. Learn More:

Application of Drones as RFID Readers and Challenges Involved

Introduction RFID What are Drones?

Applications as RFID Reader

Radio-frequency identification (RFID) is the wireless An unmanned aerial vehicle (UAV), commonly known use of electromagnetic fields to transfer data, for the purposes of automatically identifying and tracking tags attached to objects. It is an automated data-capture technology that uses low power radio waves to communicate between readers and tags or contactless cards. Tags contain electronically stored information. Some tags are powered by electromagnetic induction from magnetic fields produced near the reader. Some types collect energy from the interrogating radio waves and act as a passive transponder. Other types have a local power source such as a battery and may operate at hundreds of meters from the reader. Tags can attach to items such as components, products, packaging, or bulk batches of products to provide access to a d d i t i o n a l i n fo r m at i o n fo r, fo r exa m p l e , as a drone and also referred to as an unpiloted aerial manufacturing, supply-chain, and asset-tracking vehicle and a remotely piloted aircraft (RPA) by the applications. Contactless cards find use in passports, International Civil Aviation Organization (ICAO), is an smart cards, and badges for authorization, aircraft without a human pilot aboard. Drones, such as identification, and payment applications. The unmanned aerial vehicles (UAVs) have been used by technology promises to create and share information the military for various purposes. Recent legislation about the movement and status of objects accurately allows domestic use of drones in particular air space in and reliably. RFID technology, in contrast to bar-code accordance with pending FAA regulations. Proposed technology, requires neither line of sight nor alignment domestic uses for drones tend to focus on law between reader and tags. enforcement and other government functions.Moreover, RFID tags are sturdier than bar codes, Drones can be used to track people and objects or enabling their use in adverse manufacturing conditions monitoring for changes in environmental conditions.

Drones are already used in Africa to protect endangered species from poachers. They could equally be a more secure, cost-effective way to monitor factories against intruders or track heavy goods and machinery, and valuable assets.

Drones can be a potential solution to inventory management challenges faced by organizations. It can be done by merging the capabilities of both RFID also UAV commonly referred to as drones. Inventory tracking across large open yards presents a serious

(such as hot or dirty environments). Some types of tag challenge to many steel traders and distributors in the allow for changes of information directly on the tag, UAE, resulting in higher operational costs.whereas write-once tags establish a reference point for The problem being solved is that fixed readers don't do finding information in databases. A major driver of the a good job tracking inventory as it moves about the technology is the need for real-time Internet-enabled store. Handheld readers can do the job pretty well, but information access. Though RFID has been available for requires store personnel to go out on the store floor quite some time, the technology is still at an early stage and take the inventory. On the other handof development and commercialization. The RFID

Apart from that, Drones can be used in Aviation world market is estimated to surpass US$20 billion by

Industry, can be used at places where human reach is 2014.

difficult. By eliminating wasted time in inventory

Akshay Kumar Bhandari, MDI Gurgaon

Fig 1: History of RFID

Fig 2: Flow of information between the different components of the RFID System

Architecture

20


Fig 3: Drones used to monitor poaching in Kenya

management, other parts of the supply chain are able locating bundles.to move along and orders are most likely delivered The drones are equipped with the latest Active RFID

receiving technology, which enables a long range

faster and timelier. Drones will help in faster location of inventory, which will speed up the time it takes us to process an order. Less time will be taken trying to locate a particular item, and thus more stock can be processed with the same reading of the animal identification number, determine resources. Additionally, companies will be able to more actual GPS coordinate and secure GPRS real time accurately assess which products and customers are readings. Exponent began developing software to taking longer to process and why based on the create drone flight paths, and tested various passive collection of inventory data indicating when a product UHF RFID tags and readers to ascertain which was the is received and then shipped out. This level of business most effective. The company found, however, that intelligence will lead to further improvements in our active RFID tags could be more easily interrogated by a processes, leading to more savings reader installed on a drone operating in a highly A Kenya nonprofit has worked with Air ware to integrate metallic environment. The active tag transmits its own RFID tag readers into a drone that helps track unique ID, which the drone captures at a distance of 15 endangered rhinos and monitor poaching. The drones to 20 meters (49 to 66 feet). The GPS technology built have a 50 mile range and can stay in the air for about into the tablet computer installed on the drone can two hours before they have to swap batteries. pinpoint its location to within about 4 meters (13 feet). Recently a UAE based organization Exponent When sales or yard workers wish to locate a specific Technology Services has developed a solution at its bundle, they can access the Exponent software, input Dubai based lab, over an exhaustive period of research the description, view the location data displayed on a and testing lasting several months. map of the yard, and read the data written to the

passive tag. They can also view how many times it was This solution has the potential to support the UAE read, in order to determine how long the item has been traders to cut their annual operational costs and in the yard.thereby help them save millions of dollars. Time and A West Coast startup ADASA Inc is creating similar excitement with its plan to use drones as RFID readers. ADASA is targeting the retail market, where the unmanned flying robots would compete with fixed and handheld readers and potentially revolutionize the way that RFID is deployed.ADASA founder Clarke McAllister says:

manpower is saved rather than wasting resources in

Drones can solve these problems by staying airborne for several hours and has a security mechanism for controlled l a n d i n g s i f t h e d r o n e e x h i b i t s inappropriate functioning and is based on a Cloud IT Platform accessible on all platforms for processing, storage and visualization of data. RFID-equipped drones would require little labor compared to hand helds

“

”Fig 4: Drones developed by UAE based company to

track steel inventory

21

A flying robot can automatically position itself into thousands of different vantage points all over the store, looking into racks and display shelves, hovering over rounder's or soaring over acres of goods. After reading the tag, it calculates where everything is in the store.

“

”


These drones are small, much smaller say than the Amazon delivery drones we've seen, easy enough to hold in one hand. With the ADASA system, drones are outfitted with readers and a number of antennas. At some point, the drone flies about the store, hopefully reading every product with an RFID tag on the shelves or hangers, providing a complete snapshot of what products are where in the store. That level of accuracy is important for traditional retail operations, but even more essential when retailers start using brick and mortar stores for ecommerce fulfillment. These drones use sonar technology to avoid collisions with people and objects.

The challenges with using drones are quite common with the challenges associated with using RFID reader. The technology's accuracy and reliability need to improve. Existing infrastructures are still limited with an insufficient number of readers and middleware connecting RFID-captured data to other software modulesin contrast to infrastructures for bar-code technology. Implementation of an infrastructure that

Ghost Reads falling into the False Positives category, enables seamless use of the technology across all

refer to observations found in the data storage of tag supply-chain partners is expensive because of the need

which were not physically present in the location or for new hardware and software and additional costs for

time. middleware and systems integration. Costs of

Apart from that, the use of suitable technology, cost of individual tags, which manufacturers will produce in long range drones, night vision are some the key the billions if the RFID market lives up to its promise, challenges that are associated with the use of drones are still too high for ubiquitous tagging of individual as RFID readers. But it can be expected that in the near items in most commercial product categories. In future drones will be a very important tool as RFID addition, other forms of tagsfrom QR codes to acoustic readers and will be a solution to the problems faced by bar codes to biodegradable RFID tagsoffer competition Hand Held and Fixed readers.to conventional RFID technology.

RFID Securityl http://www.google.com/patents/US20140277854The issues associated with RFID Security, also known as l http://www.google.com/patents/US20140061377 Intrusion Detection, refers to the discovery of foreign

attacks upon the system usually utilising the tags that l http://www.forbes.com/sites/alexknapp/2012/12hinder the overall integrity of the data /23/crowdfunded-drones-could-save-white-

rhinos-from-extinction/l Man-in-the-Middle (MIM) Attack: When an external object pretends to be either a tag or reader between actual tags and readers. l http://www.scdigest.com/ontarget/14-09-03-

l Unauthorized Tag Disabling: When an external 1.php?cid=8452 reader disables a tag not allowing it to be utilised l http://www.suasnews.com/2014/10/31589/rfid-again. reading-drone-tracks-structural-steel-products-in-

l Unauthorised Tag Manipulation: Manipulating the storage-yard/ tag data using an external reader. l http://www.scientificamerican.com/article/drone

s-bring-f ight-and-f l ight-to-batt le-against-RFID anomaliespoachers/ RFID observational data suffers from three main

l http://www.technologyreview.com/news/515661anomalies which are recorded with the correct RFID /an-operating-system-for-the-commercial-drone-readings. era-drone-operating-system/ The first is a Wrong Reading in which data is captured

l http://www.bbc.com/news/business-28132521 where it should not be. The second is Duplicate Readings in which a tag is observed twice rather than l http://cmuscm.blogspot.in/2014/09/drones-for-once. The third is the Missed Readings which occur inventory-management.html when a tag is not read when and where the object it is attached to should have been physically within proximityWrong Readings, also known as Unreliable Readings or

Key Challenges

References

Fig 5: RFID-enabled bookshelf with the data anomalies that may occur

22


Emerging Delivery Mode in Supply Chain - Drone Delivery

Introduction

Solution

Background / Problems

Business Benefits

regulatory allowances is expected in near future. FAA needs to maintain the benefits of general public against Drones are also known as Unmanned Aerial System the benefits of using drones. (Stolaroff, J K, 2014)(UAS) which are flying robots and requires very little or Drones are of three types i.e. recreational, commercial no human guidance while flying. Drones can be and military drones. Recreational drones are generally navigated by remote control or onboard computers used for hobby purposes while flowing for which provide them a degree of autonomy. Currently photography or pleasure. Civilian or commercial drones are not very reliable and are not used in any drones are used by businesses for delivery of goods, country for commercial purpose. Initially they were surveillance or domestic policing etc. Military drones developed for their effectiveness in military are used for remote sensing, surveillance, armed operations. Drones were used to perform tasks that attacks and warfare (Wilson, 2014). Fixed-wing drones were very lengthy as they can be programmed to do are easy to fly and are more efficient than current patrolling and surveillance for a very long time. Apart motor based drones. But they are very expensive and from surveillance drones are also used by farmers for can't land at roof-tops. Google is currently working on surveying large field at lower cost and more the drones that can fly in both helicopter and fixed-convenience. It will help in optimal use of fertilizer and wing mode (Forbes, 10 October 2014).water on crops (Precision Farming) to determine the

health and quality of crops (Yap, 2014). Currently there has been a lot of innovation in landing and take-off of Drones are commercially available UAS. Some drones along with computer based navigation using organizations are in the position to test drone GPS. Companies are also targeting drones for mining feasibility in their business work flow. Drones which are applications by using a fully autonomous system. being used by Amazon have micro-controllers, camera Now companies are shifting to use this technology to and other sensors to provide them autonomy. Drones transport cargo to the destination. Amazon.com Inc. in are able to perform the aerial imaging survey of any 2013 stated that they are studying the feasibility of region specified by the user. The operator can define drones to deliver small packages to the customers in the boundary/location of the area via GPS coordinates. less time. Lakemaid, a beer brewery in Alaska, also In this way, a predefined location will be set for the testing out an aerial beer delivery system (Kelly H, drone to deliver the parcel. Then drone can be 2014). QuiQui a San Francisco based company has launched from the location where parcel is packed and developed an application in which customers can order needs to be delivered. Then drone calculates its for medicines over a phone call. Technicians will location using GPS and determines the navigational prepare the order and medicines will be delivered route which should be used. After reaching the delivery within 10-15 minutes after the placement of order location drone lands at desired location drops the (BerkeleyLaw, 2014). package and takes-off back to the Amazon warehouse

(Gorgan, 2013 et al.).Although drones till now has been tested only on Sale of drones (UAS) in civilian market is not reliable battery power, but there is a possibility that the and commercial as of now. Concerns include like operators may turn to fossil-fueled models as there is collision sensing mechanisms, self-diagnosing the advantage of energy and range in them. According to structural integrity and handling of drones by naïve Amazon CEO Jeff Bezos, drones used by Amazon are users who are not trained on safety concerns of drones “Octocopters” and won't be able to delivers for next 4-(Yap, 2014). As a result in USA Federal Aviation 5 years due to FAA regulation. The current drones can Authority (FAA) has put ban on using drones for deliver within the range of 10 miles and can carry commercial purpose of any kind. Only hobbyists are products under 5 pounds. This criteria is met by 90% of allowed to use drones that too below 400 feet which Amazon products. For long distance package delivery should be of less than 55 pound (Yap, 2014). companies can propose a particular location as “safe Commercial drones are illegal to be used for freight landing zones”.services in most of the countries like US and India;

lobbying with the government to change the

Vipin Kumar, IIM Kozhikode

23


Drone based delivery promises a new class of delivery of drones in delivery: average time to deliver, number time Amazon claiming 30 minutes delivery time from of packets that can be delivered, average weight of the time of purchase. If the delivery location is much far package etc. The results of such a disruptive technology away then integrating drone based delivery in the last may bring a new era of delivery which has never been leg of shipment will bring considerable logistical used. FAA is working on relaxing the restrictions for the benefits in terms of energy savings. Even if drone based commercial use of drones. Experts have estimated that delivery uses significant amount of energy as compared such changes are expected by 2015. (BerkeleyLaw, to truck delivery, it is suitable to estimate whether the 2014)extra need of electricity is significant in context of In near future drones will become very common already overloaded grids. (Stolaroff J K, 2014) artifact to see. Drones will also be used to do jobs that Drone based delivery will bring quick and efficient are very difficult too dangerous, too remote for human-methods for transporting packages (BerkeleyLaw, run vehicles. Although the package payloads and range 2014). Companies are also joining lobbying group of is low but with emerging technology it is expected to the companies who are interested in drone based meet the demand of most of the industries. FAA delivery. Michael Drobac, executive director of small recently granted a series of exemptions for UAV has urged FAA to accelerate the testing trials. cinematography companies who want to film scenes of Many companies which can't do trials due to drones in movies. Such approval shows positive sign companies restricted airspace are going for locations where they may soon get permission for doing outdoor testing of can do their trials like Papua New Guinea and Bhutan. drone based delivery.These locations are advantageous in terms of inefficient transportation infrastructure and

l BerkeleyLaw, 2014.The Commercial Drone unrestricted airspace regulation (Forbes, 10 October Phenomenon by Roxana Guidero Published on 2014). Thursday, July 10, 2014. Retrieved from:

http://thenetwork.berkeleylawblogs.org/2014/07/Civil and commercial drones will be used by companies 10/the-commercial-drone-phenomenon/and they will be hovering all across the areas. There l Forbes, 10 October 2014. Drone Technology comes the issue of collecting data about individuals or Investments: Place Your Bets... by Tim Wilson locations. It will include the privacy issues also further. Retrieved from:Amazon's 'Prime Air Project' which is expected to http://www.forbes.com/sites/artimanmanagemendeliver the parcel in 30 minutes will create additional t/2014/10/08/drone-technology-investments-problem. Scale of amazon's business will lead to place-your-betsincorporation of too many drones in a small area, which l Gorgan B, Danielle J and Driscoll J A (2013). Fixed-will be like having too many vehicles in a limited Wing Survey Drone: Functional Description and airspace. These drones will fill the civilian airspace; air System B lock D iagram Retr ieved f rom: traffic control will get affected due to their less visibility. http://cegt201.bradley.edu/projects/proj2014/surDrones colliding with each other will also be a problem. drop/FunctionalDescriptionBlockDiagram.pdf(Wilson, 2014) l Kelly, H (2014) "Beer-delivery drone grounded by Energy and environmental assessment of drones FAA." CNN. Cable News Network, 3 Feb. 2014. Web. implication needs to be done rigorously. Such 3 A p r . 2 0 1 4 . R e t r i e v e d f r o m : accounting of environmental impact should determine http://edition.cnn.com/2014/01/31/tech/innovatithe level of air traffic needs to be covered by drones. If on/beer-drone-faa/FAA allows the drone based delivery then established l Stolaroff, J K. (2014). The Need for a Life Cycle players will be at advantage in terms of getting airspace. Assessment of Drone-Based Commercial Package It will be against the startups fairing in this field during Delivery. Doi: 10.2172/1129145their incubation period. Widespread use of drones l Wilson Richard L (2014). Ethical Issues with use of poses two critical questions about energy and Drone Aircraft: University of Maryland at Baltimore environment systems: County, Philosophy/Engineering Management, 978-l What will be the level of energy use and emissions 1 - 4 7 9 9 - 4 9 9 2 - 2 / 1 4 R e t r i e v e d f r o m :

as compared to current methods? http://ieeexplore.ieee.org/stamp/stamp.jsp?arnul How it will affect the demand of batteries and mber=6893424

supply of scarce material which are used in l Yap, Y K (2014). Structural Health Monitoring For batteries? (Stolaroff, J K, 2014) Unmanned Aerial Systems, EECS Department,

University of California, Berkeley. May 14, 2014 U C B / E E C S - 2 0 1 4 - 7 0 . R e t r i e v e d f r o m : We have to develop a physical model of drone based http://www.eecs.berkeley.edu/Pubs/TechRpts/201delivery on the basis of energy consumption and 4/EECS-2014-70.htmlmaking several assumptions regarding the penetration

References

Risks and Challenges

Conclusion

24


Drones or Unmanned aerial vehicles or UAV's as they about those items. are generally referred to in colloquial discussions first One application that immediately springs to mind is achieved notoriety when their application was sorted using RFID enabled drones to track livestock in huge to bring down militancy in the middle east of Africa. Till acres of space where keeping tabs on the movement of then they were largely a topic of discussion for the the cattle is a cumbersome task but before its actual esoteric and high-society who were contemplating usage the commercialisation of this technology is their drastic impact on operations and supply chain sacrosanct because only then will a farmer be able to management when they were first being created in use it to his advantage. This will also help with the fact laboratories in the USA. The fact that there was a that animals need a peculiar environment that should provision to use these mini-helicopter like things in war be devoid of human presence right next to them while situations made them alluring to the US government they are grazing as it tends to inhibit their natural who had faced tremendous backlash in the country for evolution where the grazing occurred in isolation. civilian casualties that became collateral in the middle Another place of discharge of a drone is in large eastern battles and hence there were calls to retrieve warehouses where inventory in the present troops and thereby lessen both the economic and the environment is tracked through hand held RFID readers human atrocity that became second nature to families or bar-code scanning which necessitates the presence of victims. of a human soul to ensure the right products are Recently drones have been used for civilian purposes mapped into the database while a drone fitted with and the world has realised that they could unlock a lot RFID would expedite the process tremendously. Also of potential in supply chains around the globe and ease the kind of drone that would be used in such a scenario the transport of services and goods from one point to is something on the lines of what ADASA, an Oregon another. RFID is another potent technology which based company is developing where the size of the makes tagging items and thereby gathering 'flying robots' as they like to christen drones are small information about them and tracking their progress devices that will be retrofitted with collision avoidance convenient and time saving. Electromagnetic fields are systems and be able to wander around the warehouse utilised to exchange data through a wireless and in turn provide a snapshot of every single product infrastructure which brings down costs for firms that in the company's stockpile. Age Steel which is a UAE showcase a will to implement them. based steel company operates the same technology in

its shipping yards and has in fact reported an increase The combinatorial impact of these two modern in sales and profits because of the costs that it has inventions can transform businesses which is why a managed to shed. Another very important use is being detailed analysis on their yet latent potential needs to demonstrated in Kenya where a NGO is using the be analysed which also is the purpose of this article. A technological marvel to track endangered species and recent article that made news was the plan unveiled by with India being home to a number of animals that fall Amazon which was looking to ship products to into the same category, its adoption in this country customer homes using drones and also the would serve well and protect the ever distinguishing commentary about a Mumbai based pizza chain having fauna. Also the use can be commercialised by wildlife delivered food to a customer staying in a high rise parks and sanctuaries to give tourists and researchers a building. So at present how these systems work is while panoramic view of the events in the space. This will the actual delivery is made through the UAV the work in the sense that each animal will be given a synchronisation of the delivery confirmation and the unique number and fitted with a RFID tag that would subsequent tracking of the order is handled through help the monitoring systems to track its progress hand held devices and ground based technologies like throughout the park. bar codes and manual entries in computer system Sports can also benefit from this pioneering effort databases. Through the application of RFID we are through applying drones with RFID to time athletic looking at a future where the mere presence of RFID events where a lot of decisions on who crossed the line tagged items will be enough to collect information

25

Raghav Singla, MICA

Usage of drones as RFID readers and challenges involved


26

first are ambiguously decided without the precision detailed explanations is the need of the hour so that all required to decide medals which may in turn become points related to data sharing are made public and life changing moments in a sportsman's life. So the trepidations regarding abuse of customer details are enhancement in sporting experience can be achieved put to rest. Also new regulations governing the usage through its deployment. Another vertical that would of airspace need to be put in place to avoid mid-air benefit immensely from this bundling of technologies collisions between the drones and manned aircrafts. is road toll systems where drives on highways can Hence there is no doubt that drones or UAV's offer become mighty frustrating when one suddenly needs limitless opportunities and if put to the right use could to reduce speed to pay for the tax in way of state taxes. become disruptors in our way of life. The authorities' The advantage with RFID is its ability to scan multiple concerned need to remember Omar N. Bradley's quote items in one go compared to Bar code scanners that as they congregate to draft a drone resolution “If we require a step by step induction of items into the continue to develop our technology without wisdom or system. This unique feature will enable quick discharge prudence, our servant may prove to be our of multiple vehicles that line up to pay the toll. executioner”.Marketers are also banking on special drones which will be used to click selfies/'dronie' as the next big social l (2014, September 3). Retrieved from Supply Chain media buzz that will ensure huge opportunities for Digest: http://www.scdigest.com/ontarget/14-09-brands to create marketing campaigns revolving 03-1.php?cid=8452around this concept. The photography industry would l (2014, August 27). Retrieved from RFID: receive a huge fillip on commercialisation of such http://www.rfid24-7.com/article/will-drones-drones with people able to enjoy sky-high pictures of challenge-fixed-and-handheld-rfid-readers-in-family weddings and other similar occasions. Also an retail/entirely new dimension will be added to the capture of l BLue Ocean Robotics -for humans. (2014, May 7). huge sporting events which will spawn tremendous Retr ieved f rom http://www.blue-ocean-opportunities tangentially. Rescue operation support robotics.com/en/updates/14_05_07-drones-is another field that would benefit from the rapid farming-ubnadoption of drones as the number of missing could be l Green, S. P. (2014, October 23). Aviation Law. accurately tracked and help rendered on time. Retrieved from New York Law Journal:While a lot of these applications sound fascinating and http://www.newyorklawjournal.com/id=12026742are also being implemented on a small scale in 69540/Unmanned-Flight-Legal-Challenges-of-restricted regions of the world yet their wider Drones?slreturn=20141007080941practicality will be ensured only when the challenges l Hoffman, A. (2014). Northern Apex RFID confronting them are faced and overcome. So one C o r p o r a t i o n . R e t r i e v e d f r o m major obstacle facing their adoption on a mass scale is h t t p : / / w w w . n o r t h e r n a p e x -the absence of a set of rules that standardise the rfid.com/_blog/Northern_Apex_RFID_Corporationmethod to acquire flying permits for rules and drafting /post/mobile-carts-or-drones-rfid-readers/a constitution on the laws governing their applications. l Leber, J. (2013, June 5). Business News. Retrieved The mindset of a majority of the population needs to be from MIT Technology Review:tweaked to alter the image of a drone as a 'military Http://www.technologyreview.com/news/515661/weapon'. Also a lot of government red tape and an-operating-system-for-the-commercial-drone-bureaucracy will need to be managed in order for era-drone-operating-system/decrees to be brought to the forefront at a time when l Swedberg, C. (2014, September 26). RFID-Reading the world is engulfed with crisis of all sorts. Privacy is a Drone Tracks Structural Steel Products in Storage major obstacle in the path towards achieving such a Yard. RFID, 3. Retrieved fromtechnological advancement as people are already very http://www.rfidjournal.com/articles/view?12209reluctant to share personal information on social media platforms and a huge hue and cry is doing the rounds demanding for greater privacy controls. In fact there are brands like Ello that have positioned themselves as sharing networks where the customer is not treated as a product which is insinuating towards the lack of privacy controls on Facebook and the like in spite of recent updates rolled out in them. Lucidity and

References

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