“VISION 2020” : 14th CONCLAVE FOR CEOS & “UDAAN”
MEMBERS OF THE INDIAN MACHINE TOOL INDUSTRY
“Leap Forward to a New Growth Orbit”
India is stepping in to a new phase in manufacturing. It has benchmarked for itself a much higher growth than the current one over the next few years. There is a vision for manufacturing — of achieving 25% share in overall GDP by the year 2025 with concerted focus on technology and depth value addition, and to generate for the country a hundred million manufacturing jobs. Ever since the first 'Vision' conference in 1995, India's machine tool industry has assiduously worked on enriching its products – through better productivity, quality, design, product development and aesthetics. There is a need to reinvigorate focus on how to realise the BIG picture. This include achieving 50 % domestic market share and leapfrogging into the larger orbit of becoming a significant global player — from world's seventh to the third largest machine tool market and from thirteenth to the fifth machine tool producing nation.
Keeping this in view UDAAN under the aegis of the Indian Machine Tool Manufacturers' Association (IMTMA) organized the fourteenth Vision conclave at Chennai from 13 to 16 November 2014 where it framed the 'Vision 2020'. The vision envisages India to be among the top five machine tool building nations by 2020 by leveraging world class R&D, infrastructure, systems and people, delivering innovative solutions and services to create 'value for customers'.
The 14th Conclave organized in Chennai saw a record attendance of 51 participants representing 24 organizations which is the highest ever. A large number of 'UDAAN' members including several first-timers attended the event.
“VISION 2020” : 13th CONCLAVE FOR CEOS & “UDAAN”
MEMBERS OF THE INDIAN MACHINE TOOL INDUSTRY
“Leap Forward to a New Growth Orbit”
Current and the not-so-recent happenings with the Indian economy have thrown up more challenges than providing opportunities in the way of a galloping growth phenomenon. The long-term goals of India dynamism, at the same time, remain firmly-grounded, and depicts a promising phase ahead.
India, quite clearly, enjoys a vast demographic dividend – 50 % population are under 25 years of age. There is a tremendous convergence of knowledge workers. And to top it all, an exceptional spread of mass in rural India. All these translate into a huge volume of consumer demand – a fact being increasingly recognised (and acted upon) by external market-forces.
Looking beyond, India is set to enter a new phase – benchmarking for itself a much higher growth (than the current one) over the next four years. There is a Vision for Indian manufacturing – one of achieving 25 % share in overall GDP by the year 2025 (from the present 16 %); to have concerted focus on technology and depth value addition; and to generate for the country a hundred million manufacturing jobs.
The optimism – leaving aside the current tepidness in the industry, spreads across to several sectors, especially the customer segments of manufacturing technology and solutions. The automotive industry, for instance, has set a focus to manufacture five million vehicles by 2015 and nine million by 2020. The auto component industry, likewise, is setting itself a target of manufacturing 145 billion US Dollars worth of ancillaries over the next five years. Similar is the story in the consumer durable segment as well as in the capital goods industry.
There is equally a subtle shift in demand in infrastructure, energy, construction & material-handling, healthcare, besides defence, aerospace and medical engineering sectors. These industries are seeking more manufacturing technology solutions – some currently out of reach of Indian machine tool suppliers.
Where does it all leave the Indian machine tool industry? Is it at cross-roads again? In terms of preparedness, what needs to be its new ‘VISION’, strategy, mission and specific target-goals to be able to measure up to these emerging realities?
In the last 17 years since the first ‘VISION’ Conference in 1995, the industry has assiduously worked on enriching its products – through better productivity, quality, design, product development and aesthetics. Its market share has gone up from 18.7 % in 2009-2010 to 30 % in 2011-2012. Next in line is an equal emphasis on technological maturity, expanding capacities and in creating opportunities for the machine tool industry to be a great place of work for gen-next.
There is a need to reinvigorate focus on how to realise the BIG picture. Achieve 50 % domestic market share and to leapfrog into the larger orbit of becoming a significant global player – from world’s seventh to the third largest machine tool market and from thirteenth to the fifth machine tool producing nation.
All of which entailed a revisit of the ‘VISION’ strategies, mission and specific target-goals.
These formed the key elements for intensive discussions, spread over two-and-a-half days at ‘VISION 2020’ – the 13th Conclave for CEOs and “UDAAN” members of the Indian Machine Tool Industry. The focus centred around on how to “leap forward to a new growth orbit” – that also formed the theme of the Conclave.
The brief was clear : brainstorm on broad contours and action plan for the industry; derive a path-breaking ‘VISION’ for the year 2020; and create a template for members to conduct similar exercise within their companies, by themselves.
Organised by “UDAAN” under the aegis of Indian Machine Tool Manufacturers’ Association (IMTMA), ‘VISION 2020’ was scheduled from 22 to 24 November 2012 at “Vedic Village” in India’s ‘city of joy’ better known as ‘Amaar Sonar Bangla’ – Kolkata.
The Conclave was memorable in terms of its participation, with presence of over 40 CEOs and “UDAAN” members – highest in any of the ‘VISION’ initiatives since 1995.
The ‘VISION 2020’ Conclave was supported by UNIDO-ICAMT as well as sponsorers of the two evening programmes – Ace - Micromatic Group; Bharat Fritz Werner Limited; Jyoti CNC Automation Private Limited; and Siemens Limited.
The ‘Inaugural Session’ of the 13th Conclave comprised an informative presentation by Mr. L. Mohanty, Deputy Director General (Engineering), Ordnance Factory Board (OFB). Mr. Mohanty mentioned about OFB’s resolve to work closely with the Indian machine tool industry for meeting the defence requirements.
As part of his presentation, Mr. Mohanty outlined OFB’s – milestones; mission and vision; production and manufacturing process with production spectrum; customer profile; as well as growth opportunities. Mr. Mohanty indicated plans of OFB to double defence equipment in the 12th Five-year Plan from the previous Plan.
Speaking about future orders, Mr. Mohanty mentioned about modernisation, its key driving factors and scope, which is one of the major thrust areas of OFB. Human scarcity was one of the reasons to undertake modernisation.
Mr. Mohanty elaborated the support required from the industry and IMTMA membership to various units of Ordnance Factories (OF) in the following areas –
→ Technical details of plant and machinery.
→ Standardisation of specifications, wherever necessary. OFB encourages Indian sourcing, due to high cost of procurement from elsewhere.
→ Provide budgetary quote for estimation as per government procurement procedure
→ Participate in all tender enquiries – particularly in e-tendering, irrespective of OF locations.
→ Inform about upgradation and induction of technology, for inclusion during preparation of specifications.
Earlier, welcoming Mr. Mohanty and all ‘VISION’ participating delegates, Mr. Vikram Sirur, President - IMTMA pointed to a scenario of a spurt in demand for high-end machine tool manufacturing. India, Mr. Sirur noted, is expected to become a key player in the global machine tool industry.
IMTMA President spoke about opening of new frontiers – overseas acquisitions, foreign partnerships, IPOs as well as the continued focus on design, technology and new launches. Many of our manufacturers have well crossed the Rs. 100 crore threshold; and many more are leaping to be almost there, he added.
Much of multifarious initiatives, Mr. Sirur pointed out, have been made possible due to the focus of the previous ‘VISION’ conferences – immensely benefitting the machine tool industry.
Mr. L. Krishnan, Vice President - IMTMA delivered the vote of thanks at the ‘Inaugural Session’ and assured Mr. Mohanty of the Indian machine tool industry’s commitment towards realisation of OFB’s aspirations.
Session on – ‘Capture Expectations’
Following the ‘Inaugural Session’, an in-depth session on ‘Capture Expectations’ was facilitated by ‘VISION’ Gurus – Mr. R. Srinivasan and Mr. Shailesh Sheth, Past Presidents of IMTMA.
The session emphasised on capturing expectations from participants to coin a new strategy for the industry – ‘VISION 2020’ by guiding delegates through various processes and methodology. The processes pertained to environment analysis; current standing point; ‘VISION’ exercises; contradictions; strategic action plans; and implementation with periodic reviews.
The most interesting part was an ‘Ice-breaker Session’ where a unique style of introducing delegates was conducted. Two delegates each were grouped together and asked to introduce each other. Following the introduction, the session commenced with an update on ways to look around the world, in India and the industry.
Exercises by delegates were conducted in various arenas like world, Indian industry, global machine tool market and Indian machine tool market. Delegates were split into various groups – each focusing on aspects such as automation; manufacturing technology; skill development; supply chain; etc. Delegates captured their expectations in these areas through the periods of – Past (pre-1991); Present (1992 till 2012); and Future (beyond 2012).
The exercise was wrapped up with an informative presentation by ‘VISION’ Gurus on ‘industry journey’ – commencing from the Fifties till date.
Special Session on – ‘Success Story of Su - Kam Power Systems’
The session was facilitated by India’s renowned SME entrepreneur, Mr. Kunwer Sachdev, Managing Director, Su - Kam Power Systems Limited. Mr. Sachdev, made a thought-provoking presentation on Su - Kam’s achievement of market leadership through continuous innovation and unique initiatives. He emphasised that competition plays a key role towards constant innovation and is a primary attribute towards success.
Through numerous case-study illustrations, Mr. Sachdev drove home the importance of enabling positive attitude towards employees. He underlined the encouragement and support that any organisation and institution would need to give to the gen-next.
Mr. Sachdev’s presentation touched upon the profile of Su - Kam; R&D initiatives, product patents; various strategies to motivate employees so as to align them with the overall goals of the company.
Mr. S. B. Ganguly, Director in Su-Kam Power Systems, also present at the Session, shared his experiences during his long-tenure in Exide Batteries. Speaking about the several first of Exide – leveraged through collaborative approach and actuating R&D function, Mr. Ganguly informed delegates that the first Maruti car manufactured was with Exide battery.
The session concluded with the unveiling of a renowned publication by Mr. Sachdev – “Making Breakthrough Innovation Happen - How 11 Indians Pulled Off the Impossible”.
Session on – ‘Current Standing Points’
Steered by the ‘VISION’ Gurus, this session guided delegates to intrinsically analyse the current scenario and position of the Indian machine tool industry – adapting the SWOT analysis mode. Delegates were divided into six groups – three brainstorming on strengths and weaknesses (SW) while balance three on opportunities and threats (OT).
‘VISION’ Gurus underlined the necessity of SWOT analysis and mentioned that it usually starts with the current realities and ends with a ‘vision’ strategy. Key aspects of SWOT analysis comprise –
» Balance between enquiry and advocacy.
» Balance between dialogue and discussion.
» Analysis to be done for the industry as a whole.
» Need to have every participant’s views on board. Greater need for sharing views and respecting others’ thought-process.
» Opinion, thoughts and views to lead to a holistic set of actionable plans.
With this brief, delegates as part of the six groups, put together a comprehensive set of strengths, weaknesses, opportunities and threats pertaining to the Indian machine tool industry.
Session on – ‘Capturing the Vision’
Mr. R. Srinivasan guided delegates on how to formulate a ‘Vision’ strategy.
Mr. Srinivasan emphasised on the following key points in order to have clear understanding on a ‘Vision’ strategy before undertaking the exercise –
• Clear and concrete ‘Vision’ stimulates.
• Clearer the ‘Vision’, more focused the strategy and action.
• There can be no agreement on steps / actions, without agreement on where one is going.
• ‘Vision’ are dreams ands hopes that are real and dear to all.
• What one believes must be in place if there is to be a future.
• They arise from one’s profound experiences.
• They exceed one’s grasp and often seem impossible to achieve – best illustrations – Mahatma Gandhi’s vision of an independent India; Henry Ford’s vision of a mass produced auto for ordinary people.
• ‘Vision’ is not a mission. Mission is what an organisation is about – what is the business?
• ‘Vision’ is not a Goal. Goals are quantifiable, realistic and depend on external factors.
• ‘Vision’ is extremely powerful and that is highly motivating. They emerge from the depths of consciousness.
• When stated objectively, ‘Vision’ fuels with energy and endurance.
• ‘Vision’ grows as one grows and the visioning process is a dynamic one which provides for rearticulating the shared ‘Vision’ as appropriate.
Following this articulation, delegates were divided into six groups – with every delegate being called upon to pen-down one ‘Vision’ strategy and brainstorm within the group, comprising the following key constituents :
› Innovative breakthrough research and development.
› Among global leaders.
› Solutions and service for customer delight.
› Passionately practicing business excellence.
› Empowered diverse competent people.
› Excellent large-scale manufacturing infrastructure.
The brainstorming discussions led to formulation of a comprehensive and all-entailing ‘Vision’ strategy for the year 2020 – re-coined as ‘VISION 2020’
|“ We will be in the Top 5 Machine Tool Building Nations by 2020 Leveraging World Class R&D, Infrastructure, Systems and People Delivering Innovative Solutions and Services to Create ‘Value for Customers’ ”|
Session on – ‘Contradictions’
‘VISION’ Gurus, as part of this Session, posed before delegates a pertinent thought – “what is blocking us from realising the ‘Vision’? What is blocking us from moving towards our ‘Vision’?” Mr. Srinivasan elaborated about ‘contradictions’ being blocks and barriers that prevent one from realising their ‘Vision’.
Mr. Srinivasan gave the illustration of Detroit Company : Auto-workers of Detroit were experts in solving problems, confront management and pay increases, etc. They could not, however, deal with their contradictions – changing customer preference for quality automobiles, emergence of quality Japanese cars, etc. The myopic perspective of Detroit auto-workers clouded their vision and resulted in their downfall. The same is true for organisations, which refuse to deal with historic trends, their images, attitudes and structures.
The other key facets of ‘contradictions’ highlighted by Mr. Srinivasan included :
» Contradictions are like boulders in one’s path. But because they are so integrated into one’s experiences, it becomes difficult to readily recognise them for what they are.
» Underlying contradictions exist in relationship to one’s ‘Vision’, and not in a vacuum. If there is no ‘Vision’ there could be nothing contradicting it!
» Contradictions are not problems. Problems are issues that can be fixed – a machine breakdown, a missed supply schedule, cost overruns, etc.
» Contradictions cannot be fixed. One may respond to it, impact it or go around it, but a contradiction is part of one’s context.
» Contradictions are not lack of something – they are the ‘real blocks’. All too often, responses of people, when asked about blockages, pertain to lack of money, lack of time, lack of people, etc.
» Need to look beyond the “lack” to what is the block “outmoded funding strategies..” or “low importance to …” or “ depending on a single …”, etc.
» Frequently contradictions are not obvious. They are like cataracts. One cannot see them directly, yet they cloud vision and blind to what is there!
» They become entrenched in their convictions that they are doing the right thing, the “best they can”, and they continue to go down the tube.
Special Session on – ‘Strategising’
The session was facilitated by Prof. Surendra Munshi, Former Professor, Indian Institute of Management, Calcutta. Prof. Munshi informed delegates about his emotional bonding with the machine tool industry – his Doctoral research thesis was about the German machine tool industry in the late Sixties as also the fact that his father served a prominent machine tool company for several decades.
Speaking about need for an industry ‘Vision’, Prof. Munshi drove home the following message –
• Best possible investment is on developing and nurturing gen-next – Prof. Munshi complimented efforts of the Association in this direction by way of the “UDAAN” initiative.
• Machine tool industry is not static and competing globally. Hence, need to perform globally.
Prof. Munshi highlighted the strategic significance of ‘Vision’ by reiterating that :
» ‘Vision’ provides direction and motivates stakeholders.
» ‘Vision’ is connected with strategy, operation goals and objectives.
Prof. Munshi emphasised that strategy is not just an activity and that it cannot be used in disconnected manner. There is a need for integrated strategy. For instance, strategy as a planning exercise, organisation exercise, etc. – for multiple domain. Strategy emerges from the manner in which it is used in Defence forces for skilling and disciplinary levels.
Prof. Munshi concluded by underlining difference between tactics and strategy. He gave an example of cycle wheel where wheel is a strategy, while the spokes are the tactics.
Session on – ‘Naming the Blocks’
This Session commenced with group formation by delegates, who were asked to identify the top-five contradictions to be charted under the issues connected to –
• Archaic management.
• Low-risk appetite.
• Incomprehensive strategic planning.
• Limited focus on R&D and innovation.
• “Chalta Hai” culture.
• Poor HR development.
• Poor customer focus.
Session on – ‘Strategic Actions’
‘VISION’ Gurus concluded the ‘VISION 2020’ Conclave with a motivating session on ‘strategic actions’. The session helped delegates to identify the strategic actions required to overcome the blocks found during the session on contradictions.
Key strategic actions include :
» This is the time to shift thinking about actions.
» Actions, which are concrete and specific.
» Strategic actions could be grouped together to form strategic directions.
» At this point, need to think of specific things which could be done to move towards the ‘Vision’.
» While deciding on an action, need for clarity on what contradiction it will impact.
» If any action is pushed through without clear understanding of what contradiction it will impact, there will be little enthusiasm to complete it.
» Hierarchical institutions have a history of launching programmes without providing their staff a clear understanding of how this will overcome on what is blocking them. Such programmes demoralise an organisation – no matter how good the idea.
» Need to use creativity in formulating actions.
Each of the groups divided in the previous session, identified the most important strategic actions under six vital aspects –
→ Strive towards excellence.
→ Create robust supply chain.
→ Create and implement strategic planning and development process.
→ Develop world-class human resources, at all levels.
→ Propel innovative R&D.
→ Working towards making the ‘Customer a King’.
Uniqueness of ‘VISION’ initiatives has been its exquisite programmes for the better-halves of participating CEOs and “UDAAN” members.
‘VISION 2020’ Conclave had its share of excitements. This included two special sessions for ‘Spouses’ – an interesting address on “wellness” and an exclusive spiritual discourse on Swami Vivekananda followed by a walk-through in his ‘ancestral home’.
The programme also comprised enlightening visits to the holy places of Dakshineswar temple and Belur Mutt. The culmination was truly memorable with a shopping extravaganza for the ‘Spouses’ in the famous ‘Garihat’ and ‘A. C.’ markets – known for their ‘Dhakai Maslin’, Bengal silk, Marwari Churans, art acres and terracotta items.
Accentuation of ‘VISION’ Conclaves has always been its evening delight – the lightening up of the darkness – the unwinding out of the daylong brainstorming, in memorable moments.
The first : Rabindranath Tagore’s “Sanchayita” in evening of 22 November 2012. The entertainment involved recitation and singing of popular Rabindra Sangeet by Kolkata’s well-known artists – which was jointly sponsored by Ace - Micromatic Group and Bharat Fritz Werner Limited.
The second : “Jaatra” in evening of 24 November 2012. The dramatic performance comprised a skit involving Bengal’s famous theatre-group enacting the “Mahabharata” – which was jointly sponsored by Jyoti CNC Automation Private Limited and Siemens Limited.
Thus, as all good happenings come to an end, so did this 13th Conclave, but not before everyone took with them the nostalgic memories of the three days of camaraderie, and not to speak of the grand ambience and aroma of ‘Vedic Village’ as well as the majestic purview of the historic city of Kolkata.
© Copyright IMTMA 2017. All rights reserved.
blue waffles disease