Lean Innovation in Polymeric Films : A BUSINESS PROCESS VIEW
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1 Packaging for Changing Markets Lean Innovation in Polymeric Films : A BUSINESS PROCESS VIEW Date: July 10, 2009 Session: 10:30 AM Ranjit Singh (Director and COO) Polyplex Corporation Ltd Slide 1 Coated
2 Contents Polyplex Group: An Overview Polyplex: Lean Innovation Model Lean Innovation: Key Takeaways Slide 2 Coated
3 Polyplex Group: An Overview Slide 3 Coated
4 Polyplex Group: An Overview Turkey Thailand India America MDO Extrusion Winder Slide 4 Coated 4
5 Polyplex Group: An Overview Incorporated in 1988 with one line, Currently Operational 6 lines, Line 7 under installation After line 7, 3 rd in world by thin polyester film capacity Globally distributed manufacturing and supply chain Manufacturing Locations: India/ Thailand/ Turkey Marketing office and warehouse USA/ Europe Judicious mix of on-shore, off-shore and near shore strategy Backward integration (resin manufacturing) and forward integration (metallizing, siliconising and extrusion coating) Concentric Diversification into BOPP & CPP in 2009 Slide 5 Global Ranking: Polyester Thin Film Capacities Ranking Manufacturer Capacity (Dec 2009) 1 Toray Dupont Polyplex Mitsubishi Total Capacity (Top 4) , , , , , ,000 80,000 60,000 40,000 20,000 - Polyplex Capacity Coated
6 Polyplex Group: Serving Customers Worldwide More than 1,200 Customers in 80 countries Slide 6 Coated
7 It is not the strongest of the species that survive, nor the most intelligent, but the one most responsive to change. Charles Darwin Slide 7 Coated
8 & the name of the game is.. Change Competition Innovation Those who will survive are not the biggest or the brightest, but the most adaptive. Slide 8 Coated
9 Polyplex: Lean Innovation Model Slide 9 Coated
10 Polyplex: Lean Innovation Model: Core Philosophy Lean Philosophy Adding as much value to customers as quickly as possible Creating and managing knowledge Relentless pursuit of waste elimination Respect and grow people Focus on waste elimination, work concentration & flow to reduce cycle time (Time to Market) Innovation Creation of substantial or radical new value for customers and the firm by creatively changing one or more dimensions of the business system. Multi-disciplinary and cross functional process Focus on creation of profitable value not newness of technologies Thinking holistically about the business system More substantial than new product development and more dimension than R & D Emphasis on new combinations Lean Innovation Slide 10 Coated
11 Lean Innovation: Key Drivers Trend Impact Strategy Solution Globalization Walmartization Hyper competition Need to differentiate Demand Contraction Volatility Down Trading Shrinking Margin Limited R&D Budget Innovation But Cash Crunch Sustainability Cash conservation & short term return expectation Greater focus on return on any Investment Lean Slide 11 Coated
12 Polyplex Group: Changing Paradigm Year Capacity (MT) Product Market Space/Focus Source of Competitive Advantage Pre ,000 Domestic & Export focus. Operational Excellence Price , to ,000 Global Customer Base Operational, Intellectual & Emotional Integration Leveraging Economies of Scale Delivering Profitable Value Concentric diversification Customer Service Customer Intimacy Near Shoring Innovation Slide 12 Coated
13 Polyplex: Lean Innovation: Strategic Choice or Strategic Necessity Aspirational Vision : Leading Global film player with a global manufacturing & footprint. Key Development: Shift of focus of erstwhile majors from Packaging to Industrial application Business Challenges: How to transform - to a tier-1 supplier to global, regional & national converting companies. - from Transactional supplier (Price driven) to Strategic supplier (Value driven) - from off -shore supplier to near-shore supplier in competition with on-shore supplier - from Transactional sales to Consultative sales - from buyer seller interaction to multilevel interaction With limited resources & within a short time Lean Innovation: A Strategic Necessacity & Not A Choice Slide 13 Coated
14 Polyplex: Lean Innovation Model: Innovation Network Concept of Co-creation P&G :Connect & Develop Strategy Lab is your world or world is your lab Balance Inward and Outward in orientation to Innovation Inward Outward-in Locus of Innovation Internal External Source of Ideas Technology, Knowledge & Capabilities Customer or other firms Innovation Network: Web of People, Institutions & Companies to Solve Problem Generate & implement new ideas & solutions Diversity of ideas and Extended Virtual Organization Lean and more cost effective ideas Slide 14 Coated
15 Innovation Network: Sources of Innovation Resin Supplier Film Producer Converter Packer Brand Owner Retailer Consumer Machine Supplier Machine Supplier Machine Supplier Value and Innovation Chain Slide 15 Coated
16 Polyplex: Lean Innovation Model Slide 16 Coated
17 Polyplex: Lean Innovation Model: Hub & Spoke Model Leverage economies of scale India an ideal location Low cost brainpower operations overheads Fast growing and maturing end user cluster Aptitude for improvisation and reverse engineering Hub Satellite Slide 17 Coated
18 Polyplex: Lean Innovation Model: Invention vs Innovation Invention : The process of discovering a principle. A technical advance in a particular field often resulting in a novel product (The Big I). innovation : The business of putting an invention in the marketplace and making it a success (the small i). Hub Satellite Collaborative Research Institutions Slide 18 Collaborative Research Talented scientific pool at educational institute & National Lab Invention focused Leverage available expertise & infrastructure Optimal utilization of resources Coated
19 Polyplex: Lean Innovation Model: Customer Insight What Customer Say? Focus on Groups Surveys Depth Interviews Work better for articulated needs Customer Customer Needs What Customer Get? Lead User Analysis What Customer Do? Customer Experience Mapping Slide 19 Coated
20 Polyplex: Lean Innovation Model: Customer Insights Trends Ready to Eat Meals Convenience is the key Desk fast Dashboard Dining Single Household Grooming on the move A NEW Generation Longitivity & Declining birth rate Major Demographic Changes: proportion of over 50 yrs - Intelligent/ Smart packaging - Easy Opening Closure - Young India New Sales Channel : Changing Shopping habits Changing Global Retail trends Convenience Shopping - Grocery Shopping at Petrol forecourts - Internet Shopping +Home delivery - Sophisticated Vending Machine - Hypermarkets/ Supermarkets Sustainability Recyclability Downgaging Green Material CO 2 foot print REACH: Registration, Evaluation, Authorization and Restriction of Chemical substances Slide 20 Coated
21 Polyplex: Lean Innovation Model: Customer First Greatest Challenge :How to get the voice of the customer in? Formalized customer engagement Process Slide 21 Coated
22 Case Study: Polyplex Converter Application: Bag in Box Customer Requirement: To develop larger size Bag in Box packing Objective: To provide suitable film with better adhesion, meeting the barrier and compatibility requirements. Partners: Polyplex and Converter Process: Joint project team studied and developed suitable coated film to meet the requirement Final Result Bigger packing launched within 6 months of startup Slide 22 Coated
23 Case Study: Polyplex Converter Brand Owner Application: Potato Chips Packaging Customer Requirement: Brand owner wanted to reduce rejection percentage due to flushing gas leakage. Partners: Polyplex, Converter and Brand Owner Process: Three way project team jointly studied the laminate and work/ process flow from end to end Final Result Problem fixed by minor modification in the FFS machine Slide 23 Coated
24 Lean Innovation: Key Take Away Market forces will force all of us to differentiate and Innovate and if we are not doing that someone else will So let us get together and Innovate to make the cake bigger rather than fight for a bigger piece of same cake. Slide 24 Coated
25 Lean Innovation: Slide 25 Coated
26 Lean Innovation: Thank You Contact us at: or Krishna Reddy: Ranjit Singh: Slide 26 Coated
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