PM Daylights - 3

Daily view through the eyes of a project manager

LOOKING AHEAD: 2 Organizations do it, an Indian Public sector and a Multi National Organization.
One public sector company in India that seems to have looked ahead on the energy demand in the country is BHEL. It has expanded its own power plant equipment manufacturing capacity ready to face challenges from competitors for a target of around 15000 MW of plant equipment annually.
What is it doing differently?
1. They have promoted vendor development, focussing on adding 700 vendors across various products over the last year. This ensures adequate vendor support for manufacturing.
2. They have focussed on reducing import dependence by upgraded casting and forgings plants.
What are the challenges faced and possible solutions to them?
1. Presence of multiple partners on projects means that project responsibilities have to be synchronized well. BHEL focuses on main plant equipment but there are host of other partners involved in engineering, procurement, construction.
Solution: Increasing visibility on the responsibilities of individual partners
2. Mobilising people for projects is a challenge for the contractors.
Solution: Adding about 4000 people a year on own initiative, to reduce constraints
3. Moving into new areas in the power sector like Nuclear energy without having own expertise
Solution:A possible tripartite joint venture with an overseas partner and Nuclear Power Corporation.

A pharma MNC, Merck, with global revenues of over $25 billion and a global R&D budget of around 21% of revenue, is looking ahead to grow in India. This can possibly contribute in reducing the R&D budget spend.
Why India is suited to the overall plans of Merck?
1. Indian market is part of the top5 markets of the company. Growth for Merck is likely to come from cost conscious or price sensitive markets.
2. Indian companies are good at process innovation, with reverse engineering and continuous cost reduction expertise. Indian IT expertise is available close at hand for further support to research. This model can help pharma companies in other countries too, provided the model is spread through partnerships.
3. Make medicines accessible is a goal that Merck is pursuing that can benefit emerging market societies. This is likely to be a differentiator provided the doctors stick to a strong code of ethics and prescribe what is best for the patient. Merck has a stand of not offering incentives to doctors to prescribe medicines.

(Source: Economic Times 28/03/2010)

PM daylights - 2

Daily view through the eyes of a project manager

Indian Wholesale Business
Learnings from Metro Cash & Carry, the first foreign player to enter this business in 2003.
It has grown to 5 outlets in India.

Challenges faced in their journey and solutions thought of are highlighted below,

1. Potential customers(Retailers, kiranas) have strong relationships with their existing suppliers making cost only one part of the need.
Possible solution tried: Build relationships through education. This is by building skills of the potential customers to help meet their customers needs. Food and Beverage training organized for potential customers through chefs at the shop floor.

2.Potential customers are widely dispersed across the Indian country and states and their needs are different.
Possible solution piloted: Customize services for your customers. An example is the pilot programme to offer a microfinance institution and third party logistic firm to ensure loan and delivery of products that small kirana owners need. This offers the benefit of working capital and saving owners travel time.

3. Multiple stakeholders like State Governments involving APMC regulations, licenses in respective states need to be complied with.
Possible solution: Highlight, make visible the benefits to all partners in the system due to modernization, greater effeciency.

Collect Requirements, is a process in Project Management that can combine observing, listening to your customers burning needs, and providing education, solutions to your potential customers.
(Source: Economic Times(22/03/2010)

PM daylights - 1

Daily view through eyes of a project manager

BCCI(Indian Cricket Board) has virtually hit six sixes through the product called IPL. Its version 3 plans to make them richer by Rs 750 crore in this year 2010. This is an increase of 25% from last years revenue.It looks like the project objectives has been hit the centre of the bat.It has also set a performance benchmark for other sports in india and other cricket loving countries. The key source of income(80% plus) is from 3 sources - 8 franchise rights, broadcasting rights and the key sponsors. Anyone looking for some reasons for BCCI's success can see that it has successfully captured the requirements -understanding the country's long standing love for cricket, the need for shorter forms of entertainment and the ability to use emerging infrastructure(flood lit stadia, airports for travel, media, etc) in the metro cities. Ofcourse they have seen similar successful examples in the Basketball leagues in US and the Football Leagues in Europe, but the proof is in making it work through innovation and persistence.

BMRCL(Bangalore Metro) acquired the land of 5 acres in Malleswaram for a low cost that is planned to be developed as the Malleswaram station by 2013. It is likely to earn 1% revenue for the next 30 years, from the builders who are building the station for Rs 35 crores. This is an example of a PPP(Public-Private Partnership) project where both the parties have made smart moves. Opportunities for partners multiply when positive risks are shared.

(Source - Economic Times 16/03/2010)