Ops World 2013

psworld
A pan IIM Operations Magazine

Volume III: 2012-13
IN THIS EDITION >Supply Chain Management in Healthcare >Supply Chain Challenges in IOL & Gas Industry - Indian Context >Towards better Maintenance The experiment with Defects >Site Identification for new AIIMS-like Institutions based on Network Analysis of similar existing facilities >Bargain AirFares >ERP in operations management > Cost Effectiveness: JIT vs EOQ >Microgrid optimization as an OR problem >Operational Excellence at Erection Site: Simhadri Stage 1, NTPC Limited >Recent perspectives on electric power quality
Indian Institute of Management -Raipur
Directors Message
Prof. DebashisChatterjee Director, IIM Kozhikode
Message
Directors
It is my great pleasure to present the third edition of the pan-IIM Operations magazine, OpsWorld. This issue puts forward fresh perspectives regarding the challenges and opportunities felt by industry and academia about an increasingly operations driven future. I wish Omega, the Operations Interest Group of IIM Kozhikode, great success in their endeavour to create awareness about relevance of the operations vertical for future growth.
Editorial
ith competition rising fiercely, organisations are finding it difficult to increase their share of the pie. Focus is shifting to cost reduction from revenue increase. In todays world where time is money, Operations Managers are constantly ideating to improve their efficiency. Companies are investing in technologies, implementing new systems and employing various integration strategies believing that operations will provide the competitive edge. The third edition of OpsWorld, the pan IIM Operations Magazine, throws light on how companies are operating to achieve excellence, an inside into NTPCs Project Management System, Operations Research methodologies in Microgrid, Supply Chain Management in Healthcare industry and many more.... On behalf of the editorial team, I would like to express my gratitude to Prof. P.N. Ram Kumar who accepted our request to judge the entries from students and for his valuable insights. I would also like to thank all students, professors and industry experts who had sent their articles for publication. We are grateful to the Operations Interest Groups of all the IIMs for their constant support to make OpsWorld a bigger success. Happy reading! Editor-in-Chief
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Editorial
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Contents
Contents
Supply Chain Management in Healthcare Supply Chain Challenges in IOL & Gas Industry - Indian Context Towards better Maintenance The experiment with Defects Site Identification for new AIIMS-like Institutions based on Network Analysis of similar existing facilities Bargain AirFares ERP in operations management Cost Effectiveness: JIT vs EOQ Microgrid optimization as an OR problem Operational Excellence at Erection Site: Simhadri Stage 1, NTPC Limited Recent perspectives on electric power quality 04 11 15
18 26 28 30 34 36 39
The team
Editors Karthik V (IIM-K), Niranjan Sunderasan (IIM-K), Pranay Meshram (IIM-K), Soumyarup Dasgupta (IIM-K), Vinay Ashwin (IIM-K)
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Supply Chain Management in Healthcare
Chain Management in Healthcare

Supply
E
AUTHOR
Executive Summary
The primary focus of the healthcare industry has been to provide patients with the best quality of care while reducing the costs. Recently, the increasing cost of supplies and severe competition among healthcare providers has significantly increased the pressure on material managers to operate more cost-efficiently without compromising high patient care standards. While other sectors have experienced success through the deployment of supply chain management practices, the healthcare sector has not seen major improvements in this area. This paper provides an assessment of supply chain management in the healthcare sector. The integration of three different stakeholders of the healthcare supply chain namely producers, purchasers and providers facilitates the delivery of products in a timely manner in order to serve the customers. A significant portion of the costs associated with supply chains in the health care sector can be reduced by implementing effective supply chains. To be fully effective, it must be an integrated link in the chain of clinical and non-clinical operations. A fully integrated supply chain in healthcare is characterized by the integration and co-ordination of operational processes, information flows, planning processes, intra- and inter-organizational processes and market development. These processes refer not only to physical products like pharmaceuticals, medical devices & health aids but also to the processes associated with the flow of patients. Information technology has gained a lot of impor-
Anurag Gupta IIM Lucknow Anurag Singh IIM Lucknow
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tance in healthcare industry esp. in the areas of procurement, inventory control and materials planning. Elements like organizational culture, the absence of strong leadership and mandating authority, as well as power and interest relationships between stakeholders might severely hinder the integration and co-ordination of processes along the health care supply chain. Due to the ongoing transformation within the health care sector towards greater integration and more process-oriented health care chains, the supply chain orientation within the health care sector can be regarded as a complex social change process. Apart from highlighting the areas of improvements and identifying the barriers for implementing the practices, the paper also analyzes the best practices of supply chain management in healthcare. Improvements have been made primarily in the area of education but areas such as inventory control, procurement processes, and information sharing require more attention from supply chain managers. The supply chain management best practices can greatly help material managers with their continuous improvement efforts, while maintaining quality of care. Finally, the adoption of new emerging technologies, such as radio frequency identification (RFID) and its benefits to the healthcare industry are also explored to identify innovative alternatives to material management in the healthcare sector. and supplies, pharmaceutical, healthcare services, biotechnology, and alternative medicine sectors. With extreme pricing pressures on todays healthcare providers, delivering high-quality medical care while reducing costs is a top strategic priority. To achieve this objective, healthcare service providers efforts have been focused primarily on eliminating waste in clinical operations. While these are valid and important ways to reduce healthcare costs, one area that consumes nearly one-third of all hospital operating budgets often remains overlooked - the healthcare supply chain. When it comes to expenses, supplies are second only to labor, with millions of products moving along the supply chain every day through manufacturers, distributors, Group Purchase Organizations (GPOs) and healthcare providers to patients. While the adoption of SCM practices has been successful in many sectors, the healthcare industry has not seen major improvements from these practices (McKone-Sweet et al., 2005). Today, healthcare managers and industry experts under-

Introduction The global healthcare industry is one of the world's largest and fastest growing industries, comprising various sectors: medical equipment
Figure 1: Breakup of annual operating expense used to support healthcare supply chain costs
Sample size = 204; Source: 2009, Nachtman and Pohl OPSWorld
Figure 2: A healthcare supply chain configuration.
Producers
Purchasers
Providers
CMedical
and Surgical Supplies CMedical Devices CPharmaceutical
CWholesalers CDistributors CGPOs
CHospitals CIDNs CPhysicians CClinics CPharmacies CNursing Homes
Insurance Companies
Government
Regulatory Agencies
Source: Burns, 2002
stand that the efficient management of materials can not only reduce operating cost, but increase the quality of care (Schneller et al., 2006)
Healthcare Supply Chain

The healthcare supply chain involves the flow of many different product types and the participation of various stakeholders. The main purpose of the healthcare supply chain is to deliver products in a timely manner in order to fulfill the needs of providers. Based on their functions, stakeholders in the healthcare supply chain can be divided into three major groups: producers, purchasers, and providers. The role of producers is to manufacture medical products such as surgical supplies, medical devices and pharmaceuticals. Purchasers include distributors, wholesalers and Group Purchase
Organizations (GPOs). Distributors and wholesalers hold inventory for producers to facilitate delivery of products. GPOs sign purchasing contracts with producers in order to achieve economies of scale by aggregating the volume of member providers. Healthcare providers represent those at the end of the supply chain with the function to serve patients and include, among others, hospitals, integrated delivery networks (IDNs), physicians, clinics, nursing homes and pharmacies (Burns, 2002). In the past, a hospital that managed its purchasing costs well could operate efficiently. Today, the cost of materials management can exceed 45% of a hospitals operating budget, with nearly 30-35% attributable to supply costs alone. Recent studies show that a significant portion of the costs associated with supply chains in the health care sector can be reduced by implementing effective supply chains. The application of supply chain management practices in the health care sector not only relates to physical goods like drugs, pharmaceuticals, medical devices and health aids but also to the flow of patients (Beier, 1995).
Integrated Supply Chain in Healthcare

In hospitals, integrated supply chain strategy should be consistent to maximize patient care. The hospital supply chain enables this strategy by ensuring product availability, minimizing storage space, maximizing patient care space, reducing material handling time and costs for all medical OPSWorld
Cestablishing
High
partnership relationships and alliances and implementing inter-organisational information systems of processes between different companies (interface questions between companies) of market-development and collaboration between companies on a supply chain level Phase 3
Cdesigning Cintegrated
authorities and responsibilities focus on designing and controlling material flows on an organisational level on coordination and interface questions of company-wide information systems Phase 2
Supply chain integration

Cfragmented
Ccentral
Cintegration
allocation of authorities and responsibilities optimisation
Cemphasis
Cintegration
Clocal
Capplication
Low
Cemphasis
on individual processes Phase 1
staff and minimizing inventory. Hospital supply chain has to ensure proper linkages to clinical systems, revenue cycle, IT and clinical operations. The supply chain often is viewed as a back dock support service that provides the products and services required by clinical departments. To be fully effective, it must be an integrated link in the chain of clinical and non-clinical operations (Achryulu et al., 2012). Health supply chains can be characterized by different modes of integration: 1. Integration and co-ordination of processes 2. Integration and co-ordination of information flows 3. Integration and co-ordination of planning processes. 4. Integration of intra- and inter-organisational processes. 5. Integration of market-approach. 6. Integration of market-development. Considering health service providers, supply chain management often refers to the information, supplies and finances involved with the movement and acquisition of goods and services from the supplier side to the end user with major emphasis on two aspects, firstly, to enhance clinical outcomes and secondly to optimize costs. In doing so supply chain management puts a strong emphasis on the integration of processes. Considering the healthcare sector, these processes refer to physical products like pharmaceuticals, medical devices & health aids and processes associated with the flow of patients. In both these cases, an intensive co-ordination and integration
Supply Chain must be an integrated link in clinical & non- clinical operations
between operational processes might lead to a better health supply chain performance. Information technology and the deployment of ebusiness are closely linked to the co-ordination and integration of operational processes. Different studies have advocated the importance of information technology in healthcare sector (Breen and Crawford, 2005; Harland and Caldwell, 2007) and it is not a matter of surprise that many studies on health care supply chains focus on the role of e-business technologies across hospital supply chains (Siau et al., 2002). Similar to the co-ordination and integration of operational processes, information technology in the healthcare sector is related to both physical products as well as to the flow of patients within and between health service organizations (Lowell and Celler, 1998). The use of information technolOPSWorld

ogy-oriented applications can be found in the areas of procurement, inventory control and materials planning. One of the well-known examples of an IT application being used in Health sector is Electronic Patient Record Systems which has significantly contributed in improving the integration and smoothening of processes within and between health service delivery organizations. The application of supply chain management practices in healthcare setting is almost by definition related to organizational aspects like building relationships, allocating authorities and responsibilities, and organizing interface processes. Different studies have highlighted the importance of organizational processes when applying supply chain management practices. Moreover, recent studies reveal that elements like organisational culture, the absence of strong leadership and mandating authority, as well as power and interest relationships between stakeholders might severely hinder the integration and co-ordination of processes along the health care supply chain (McCutcheon and Stuart, 2000). Healthcare supply chain integration is not only related to the integration and co-ordination of planning processes but this can also be linked to joint market development and offering new careproducts. Product co-development is a recognized phenomenon in the field of supply chain management and within industrial supply chains many joint efforts are made to develop new products across suppliers, customers and organisational units. Additionally, healthcare service providers have taken the initiative in different countries to develop new care-products in close collaboration with each other. Clearly, the above mentioned modes of integration cannot be considered in isolation. Studies in the field of industrial companies indicate that organizations often go through several stages of integration, starting with a transparency stage via a commitment/ coordination stage to a full integrated stage encompassing all the different modes of integration addressed above (Ballou et al., 2000; van der Vaart and van Donk, 2008). The ongoing transformation within the health care sector towards greater integration and more process-oriented health care chains requires a shift in strategy, structure and control mechanisms. As such, the supply chain orientation within the health care sector can be regarded as a complex social change process.
Supply chain integration within healthcare is a complex social process change
Best practices of Healthcare Supply Chain

The best practices of Healthcare Supply Chain are summarized in the following table: Table 1: Best practices of Healthcare Supply Chain Conclusion This article provides insight about supply chain management practices in the healthcare sector. Although many health care organisations have recognized the importance of adopting supply chain management practices, the application of techniques, methods and best practices originally developed in an industrial setting clearly is often problematic. Improvements have been made in the healthcare supply chain, primarily in the area of education but areas such as inventory control, procurement processes, and information sharing require more attention from supply chain OPSWorld
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Table 1: Best practices of Healthcare Supply Chain Areas Education
C
Recommended Best Practices

C
Increase training on SCM principles such as executive support, communication within internal departments, information systems and measurement systems Use of cold storage infrastructure for storage and transportation in pharmaceutical industry, a major player in healthcare Use computer software applications for calculating reorder points and quantities based on demand forecast and safety stock levels Increase inventory turns to hold less capital at a given time Increase automated ordering process by using electronic means (EDI, Internet) Comply with GPO contracts to achieve cost savings Standardize products to reduce number of contracts and transactions Apply total quality management in hospitals and integrate a smooth running strategy for their supply chain management. Hospital integration with internal and external customers is realized as important factors in implementing and empowering the overall integration process in quality management system in hospitals Use of Radio Frequency Identification (RFID) technology, which will continue to make inroads thru track-and-trace solutions, first, as asset and inventory management tools, then gravitating towards personnel, patient and clinical monitoring devices Use of RFID technology can also help in keeping the track of such products along the entire chin Use technology solutions and healthcare consulting services to cover the full spectrum of a healthcare service provider's revenue cycle needs from improving patient access processes to reducing claims denials. Use decision support system to integrate financial, clinical and administrative information and distribute that data enterprisewide for timely analysis and decision-making that might positively impact future performance Share inventory related information with vendors for better planning. Information should include: sales data, backorders, and on-hand inventory; it should also be accurate and accessible in a timely manner Involve physicians and other providers in the product selection process through collaboration and cooperation tems and measurement systems Transportation & Logistics ? Use of cold storage infrastructure for storage and transportation in pharmaceutical industry, a major player in healthcare Inventory Management ? Use computer software applications for calculating reorder points and quantities based on demand forecast and safety stock levels OPSWorld
Transportation & Logistics
Inventory Management
C
Procurement and Contracting
C C
Quality Management
Using RFID technology
Recalling drugs
Revenue-Cycle Management System and Decision Support System
Information Sharing & Collaboration/Cooperation

C
managers. Improvements in all these areas can become possible with the aid of information technology, along with collaboration and cooperation of stakeholders. Areas Recommended Best Practices Education ? Increase training on SCM principles such as executive support, communication within internal departments, information sys-
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? Increase inventory turns to hold less capital at a given time Procurement and Contracting ? Increase automated ordering process by using electronic means (EDI, Internet) ? Comply with GPO contracts to achieve cost savings ? Standardize products to reduce number of contracts and transactions Quality Management ? Apply total quality management in hospitals and integrate a smooth running strategy for their supply chain management. Hospital integration with internal and external customers is realized as important factors in implementing and empowering the overall integration process in quality management system in hospitals Using RFID technology ? Use of Radio Frequency Identification (RFID) technology, which will continue to make inroads thru track-and-trace solutions, first, as asset and inventory management tools, then gravitating towards personnel, patient and clinical monitoring devices Recalling drugs ? Use of RFID technology can also help in keeping the track of such products along the entire chin Revenue-Cycle Management System and Decision Support System ? Use technology solutions and healthcare consulting services to cover the full spectrum of a healthcare service provider's revenue cycle needs from improving patient access processes to reducing claims denials. ? Use decision support system to integrate financial, clinical and administrative information and distribute that data enterprisewide for timely analysis and decision-making that might positively impact future performance Information Sharing & Collaboration/Cooperation ? Share inventory related information with vendors for better planning. Information should include: sales data, backorders, and on-hand inventory; it should also be accurate and accessible in a timely manner ? Involve physicians and other providers in the product selection process through collaboration and cooperation The supply chain management best practices can greatly help material managers with their continuous improvement efforts, while maintaining quality of care. Finally, the adoption of new emerging technologies, such as radio frequency identification (RFID) and its benefits to the healthcare industry are also explored to identify innovative alternatives to material management in the healthcare sector. References
1. Nachtman, H. and Pohl, E.A. (2009), The State of Healthcare Logistics: Cost and Quality improvement Opportunities, Center for innovation in Healthcare Logistics, University of Arkansas. 2. McKone-Sweet, Kathleen E., Hamilton, P. and Willis, S.B. (Winter 2005), The Ailing Healthcare Supply Chain: Prescription for Change, The Journal of Supply Chain Management: A Global Review of Purchasing and Supply, pp. 4-17. Schneller, E.S., Schmeltzer, L.R. and Burns, L.R. (2006), Strategic Management of the Health Care Supply Chain, Jossey-Bass, San Francisco, CA. Burns, L.R. (2002), The Healthcare Value Chain: Producers, Purchasers, and Providers, Jossey Bass, San Francisco, CA. Jan de Vries, Huijsman, R. (2011) "Supply chain management in health services: an overview", Supply Chain Management: An International Journal, Vol. 16 Iss: 3, pp.159 165 Beier, F.J. (1995), The management of the supply chain for hospital pharmacies: a focus on inventory management practices, Journal of Business Logistics, Vol. 16 No. 2, pp. 153-173. Acharyulu, G.V.R.K. and Shekhar, B.R. (2012), Role of Value Chain Strategy in Healthcare Supply Chain Management: An Empirical Study in India, International Journal of Management Vol. 29 No. 1 Part 1, pp. 93-94 Breen, L. and Crawford, H . (2005), Improving the pharmaceutical supply chain: assessing the reality of e -quality through e-commerce application in hospital pharmacy, International Journal of Quality & Reliability Management, Vol. 22 No. 6, pp. 572-590. Harland, C.M. and Caldwell, N.D. (2007), Barriers to supply chain information integration : SMEs adrift of e-Lands, Journal of Operations Management , Vol. 26 No. 6, pp. 1234-54. Siau, K., Southard, P.B. and Hong, S. (2002), Ehealthcare strategies and implementation, International Journal of Healthcare Technology and Management, Vol. 4 Nos 1/2, pp. 118-131. Lowell, N. H. and Celler, B. G. (1998 ), Information technology in primary health care, International Journal of Medical Informatics ,Vol. 55 No. 1, pp. 9-22. McCutcheon, D. and Stuart, F.I. (2000), Issues in the choice of supplier alliance partners, Journal of Operations Management, Vol. 18 No. 3, pp. 279303. Ballou, R.H., Gilbert, S.M. and Mukherjee, A. (2000), New managerial challenges from supply chain opportunities, Industrial Marketing Management, Vol. 29 No. 1, pp. 7-18. Van der Vaart, T. and van Donk, D.P. (2008), A critical review of survey-based research in supply chain integration, International Journal of Production Economics, Vol. 111 No. 1, pp. 42-55. Callender, C. and Grasman, S.E. (2010), Barriers and Best Practices for Material Management in Healthcare Sector, Engineering Management Journal, Vol. 22 No. 4, pp. 11-17
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Supply Chain Challenges in IOL & Gas Industry
Chain Challenges in IOL & Gas Industry - Indian Context

Supply
I
AUTHOR
INTRODUCTION
The term Supply- chain management (SCM) can be best defined as the configuration, coordination and continuous improvement of a sequentially organized set of operations. The primary aim of a supply chain management system in any organization is to provide maximum customer service at the lowest cost possible. The Oil & Gas industry currently faces numerous complexities and challenges that should be addressed in order to sustain and survive in todays era of heightened global competition. The Oil & Gas industry needs to work continuously under the most difficult situations and challenging circumstances, which include matching the dynamic demand with supply, working in harshest terrains & tougher access to new upstream resources. In addition to this, there is a marked increase in the exploration and production costs in the industry and oil prices are also near an all time high. Against this backdrop, there seems to be a necessity to focus on achieving the highest standards in supply chain management of the Oil & Gas industry so as to streamline all the operations and generate value for all the stakeholders. OPSWorld
Anubhav Sood IIM Raipur
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SUPPLY CHAIN LINKAGE IN OIL AND GAS INDUSTRY
The supply chain linkage in the Oil and Gas industry can be represented as below: These products are stored in cylindrical tanks near refineries; these areas are also called as terminals. The capacities of these tanks range from 25000 KL to 40000 KL. From here the finished products
EXPLORATION
EXPLOITATION
REFINING
MARKETING
CONSUMER
Exploration is the search for crude oil or gas reserves by petroleum geologists and geophysicists beneath the Earths surface. It could either be on the sea bed or on the mainland. The aim of exploration is to find the reserves of crude petroleum which could be harnessed and converted into usable petroleum products. Exploitation is the term used for extracting the crude oil from the oil wells. For example Indian Oil Corporation Limited (IOCL) has share in oil pits at Digboi in Assam and Bombay high from where oil is extracted and sent to refineries. The entire requirement for crude oil is not met by selfexploitation. Some part is procured from other crude oil producing nations which predominantly consist of Gulf countries and Singapore market.
are transported to various other terminals all over the country through pipelines, rail wagons or tank trucks.
ISSUES FACED IN SUPPLY CHAIN MANAGEMENT

PIPELINE NETWORK: Amongst road, rail and pipeline transportation, road transportation is the costliest method and transportation through pipelines is the cheapest. However a drawback with the pipeline is that it has very low penetration. In the light of this backdrop many oil marketing companies are working on extending their pipeline network. Constructing pipelines is an extreme capital intensive venture. Therefore, it is much more feasible if different companies come together and share the financial burden for constructing them and then reap benefits of using them. One such initiative is taken by GSPL,HPCL, IOCL and BPCL. These companies have signed joint venture agreements for constructing three such cross country projects: Mallavaram-Bhilwara (1585 kms), Mehsana-Bhatinda (1670) and Bhatinda-JammuSrinagar (740 kms). More such projects will help in bringing down the transportation costs in the long run. Further pipelines also bring about reduction in losses due to transportation. For example, the 573 km long Visakha-VijayawadaSecunderabad pipeline saved (HPCL) an amount of about Rs 95 crore in 2003-04. (Cited from http://www.business-standard.com/india/news/hpcl-saves-rs-95cr-due-to-pipeline-operations/147489/ accessed on 23.02.2013). THEFT & PILFERAGE: There is a particularly high rate of theft and pilferage while transporting oil by road through tankers. A method to bring it down under control is to install the Vehicle Monitoring System (VMS), which tracks the movement of vehicles by installing a device with SIM card using GPS technology. But there are issues related to implementation of the same. There have been instances where drivers damage these devices and use the SIM cards to make personal phone calls or the service is not proper due to bandwidth prob-
Constructing pipelines, being an extreme capital intensive venture is much more feasible if different companies come together and share the financial burden.
This crude oil is shipped through Very Large Crude Carriers or Ultra Large Crude Carriers having capacities of 50,000 KL to 2,00,000 KL. These tankers are docked at the ports and the oil is unloaded using pumping and piping equipment into the storage tankers. These locations are called terminals. Generally, terminals have storage capacities ranging from 1,00,000 KL to 3,00,000 KL. From these terminals, the oil is sent to refineries through pipelines where it undergoes the process of refining and various products like Flare gas, Lighter gases, LPG, Naptha, ATF, Superior Kerosene Oil, Light Diesel Oil (LDO), Heavy diesel Oil (HDO), Base oil and Sludge are produced. OPSWorld
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lem of the service provider. Also, in some cases, the locking system that is used for the tank-trucks (padlocks) has been found to be tampered with. Moreover the outlet valve assemblies have also been found to be damaged in some cases. These incidents of theft, pilferage and damage can be improved by training the drivers and increasing their awareness about these technology driven initiatives. Another method of reducing the pilferage is the usage of electromagnetic locking systems in the valves of the tankers. However, after installation of the same it has been reported that the operators and drivers complain of not knowing how to use these locking systems. Training and selection of educated drivers can help to overcome these problems. PIPELINE SECURITY: Cases of pilferage through pipelines have also been reported where the miscreants have damaged the pipeline to steal away the products. Moreover a damaged pipeline poses a threat towards safety of environment and causes loss of finished products. Pressure Monitoring Systems are installed in the pipelines to detect any such damage. But the challenge lies in correcting the fault as soon as possible and recommissioning the line. Security guards are also deployed for patrolling these pipelines; one guard covers 8 kilometres of pipeline length. These guards are tagged with satellite surveillance which causes huge costs to OMCs. For further safety, rather than laying pipelines overground they are usually laid underground where they are not visible, this however, raises several maintenance issues of the pipelines. HIGH IN-TRANSIT INVENTORY: The inequitable distribution of petroleum resources across the globe makes the scope of logistics global. These products have to be transported between different locations, which in most of the cases span across different continents. The long distance between the supplier and buyer results in higher costs of transportation and high in-transit inventory. One method to overcome this is by structuring of new deals like that of Essar Energy with Barclays bank for its Stanlow refinery. The In-transit inventory is transferred to the banks assets when it starts on the ship and just before the destination port it is again transferred to Essar Energy This approach helps Essar to mitigate the risks associated with in transit inventory ownership, saves working capital costs and the bank gets benefit because it can show the crude oil as an asset over long transit periods and leverage the same for oil derivatives business. INFORMATION TECHNOLOGY: We can also examine the role of information technology and management information systems in the supply chain management in Oil & Gas sector. As compared to the earlier paper based system for giving indents by the dealers, the indents are now taken through SMS based Indent Management System. This indent is noted by the planning officer and after confirming the payment terms the material is dispatched to the dealer. In this field HPCL has started a new initiative called Optimised Logistics Assistant (OLA). OLA helps in bringing rationalization in assignments to logistic partners and provides them with an equal opportunity. As this is an automatic assignment, it reduces the favouritism towards a particular transporter due to any influence exerted by him. Implementation of such IT driven systems across the industry will help in bringing about more transparent systems. SAFETY: Due to the hazardous characteristics of Oil & Gas raw materials and final products, there is a need to exercise extra caution which involves lot of money, time, effort etc. Also, the risk involved with the supply chain is higher. The products in Oil & Gas industry are highly inflammable; as a
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result, risks involved in delivering, transporting and storing are greater as compared to any other industry (Sinha et al. (2011) as cited in supplychain-management-issues-in-oil (2012)). LONG LEAD TIMES: The lack of flexibility of the overall logistic network in this industry is another major issue. This can perhaps be owed to the challenges in production, long transportation lead times and the constraints of transportation modes used. As a result of these problems, each and every node of the supply chain network poses huge challenges. SLUDGE TRANSPORTATION: The other prominent issue is regarding the transportation of sludge. As the sludge is very heavy and tends to solidify if allowed to cool, it presents a unique challenge in transportation. It requires special heated tanks, which are heated electrically or by using steam. But in case of the failure of heating mechanism the sludge can get deposited inside the tanker which will then be extremely difficult to remove. In some cases solidification has rendered the whole truck to go out of service. Thus, we can conclude that supply chain is the most crucial and essential function in oil and gas industry. This is because of the fact that the oil and gas industry has its own unique features which can sometimes pose various challenges for all those involved in its supply chain. Today, the supply chains in this industry are looking at various ways of improving their efficiencies and overcoming the above mentioned impediments. These improvements made over a period of time also help in creating a competitive advantage for the firms. Therefore, the need of the hour is a supply chain optimization at an operational as well as at a strategic level. Various supply chain firms in Oil & Gas industry can adopt methods like customizing the logistic network, strategic sourcing, application of channel wide information technology strategy, adopting operational innovation in terms of order filling, customer service etc. This will lead to success and also contribute towards optimisation in the long run. Tomorrows successful players would perhaps be those who adopt such methods of optimization, implement a strategic view of the role of their supply chain and implement advanced contracting strategies in order to manage their costs and secure supplies. REFRENCES 1. Chima, M. C. (2007) Supply-Chain Management Issues In The Oil And Gas Industry Journal of Business & Economic Research Vol. 5, No. 6 2. Siddiqui, F. & Sharma, C. (2011) The Impact of various Dimensions of SCM Practices in Indian Oil and Gas Sector Global Journal of Enterprise Information System Vol. 3, No.4 3. http://articles.economictimes.india times.com /2012-05-01/news/31528157_1_bhatindajammu-srinagar-gspl-pipeline-projects accessed on 23.02.13 4. http://ivyarticles.blogspot.in/2012/12/supplychain-management-issues-in-oil.html ?detail=yes accessed on 24.02.13
The oil and gas industry has its own unique features which can sometimes pose various challenges for all those involved in its supply chain.
UNECONOMIC ORDERS: Another delivery related issue is the irregular or small quantities ordered by some dealers. For e.g. one dealer may have daily requirement of 15000 to 20000 KL where as another will have only 3000-4000 KL. It is easier to supply to the former dealer, but in the latter case, the issue of part load comes into the picture and reduces the economies of transportation. To prevent this, the companies can ensure that the dealers have large size reservoirs which have ullage of one tank truck atleast. Alternatively, companies can also take a decision to supply the material only when the dealer gives order of equivalent to atleast what can be transported in one tanker. DISPOSAL OF FLARE GAS: The flare gases which come out of the refining process are not useful and were earlier disposedoff by burning. But now the environmental regulations have become more stringent due to which there are restrictions over burning these gases. Now the refining companies have two options either to install flare gas recovery systems which entail heavy investments or to store the flare gas and send it to a third party to dispose it off. The latter option can also be expensive and will require good logistics for flare gas transportation.
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Towards better Maintenance The experiment with Defects
INTRODUCTION:
In an organization like SAIL, quality production at optimum cost plays a vital role, to achieve profitability. In order to achieve this, all the major operations like planning, production and marketing are to be done with quality parameters in mind. Where planning and marketing are dependent on various factors beyond the control of the individual plants, production at optimum level at minimum cost is instrumental and well within the control of the production team. Production demands the three sections i.e., Operation, Maintenance(both Mechanical & Electrical) and services (ETL, HMC, PCE, EMD, GEM, INST etc.) to work together having a single common goal of ,"maximising quality product and minimizing production cost". The manufacturing industries in the world are now strictly monitoring to improve the following parameters to attain competitiveness and a sustained positive growth. 1) Maximisation of production 2) Ensuring quality standard 3) Minimising cost of production To achieve all these parameters it requires a healthy maintenance system. Though maintenance is not a branch of Engineering taught in Technical Institutions, it requires the wholesome knowledge of technology and progressive developments in the world, updated at regular interval of time. In the following paragraphs let us discuss "maintenance as a tool for profitability of any manufacturing industry". Out of many definitions that describe maintenance, the following definition fits best for all industries or manufacturing organizations around the world. "Maintenance is the process of ensuring the availability of equipment/ machines in perfect order for maximizing the quality product at lower cost". To be precise, every organization should have a system which will increase the availability of equipment for a longer period at lower cost. Many private organization, reduce the cost of maintenance by out sourcing or giving AMCs to smaller companies and increase the performance of machines and equipment by adopting new technology as and when required. But it OPSWorld
MAINTENANCE:
AUTHORS
Debrup Mohanty Manager (Durgapur Steel Plant, SAIL) Gujja Eswar Rao Senior Manager (Durgapur Steel Plant, SAIL)
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is not always possible for company as vast as SAIL, where the Capital Investment required for switching over to new technology is huge and time required to carry out projects is also more ( as the size of project in such cases are big andproject clearance formalities are complicated due to Government obligations). To cater to the need of such organizations, where equipment involved are complicated in nature and working environment is challenging in comparison to normal working condition and where the breakdown of equipment pose a threat to the balance sheet of the company, many maintenance techniques or theories have been evolved by expert teams in recent past. These theories are based on different schools of thought and designed to suit various maintenance environments. Some of the popular theories are: a) Breakdown maintenance b) Inspection & preventive maintenance c) Predictive maintenance d) Maintenance by redesign e) Time based maintenance Out of the above methods, most commonly used system is Inspection & Preventive maintenance. In some cases, this system of maintenance combined with Maintenance by redesign paves a way for continual improvement. The following paragraphs will depict how best this can be achieved.
FACTORS FOR SELECTING MAINTENANCE MODULE:

Although different organizations adopt different forms of maintenance practices or processes, yet they follow almost the same sequences / methods based on a simple logic of SMPs. The methods or the processes being adopted and put in use by organizations are decided by DOCTOR analysis of factors that shapes the maintenance module for a particular environment. These are: 1) Design (unidirectional/ reversible/ roughing/ finishing etc.) 2) Operation (intermittent/continuous etc.) 3) Criticality of Equipment (spares availability in market/ cost of spares/repair time etc.) 4) Technology (old/new/manual/automated etc.) 5) Option in hand (stand by machine/alternate route of production etc.) 6) Resource availability (man/spare inventory/ time availability etc.) The design parameters and standard operating practices as prescribed by the designer are subjected to be changed at later stages due to many factors or changes brought to the system in order to increase profitability. Like Blooming Mill was initially designed for Ingots of 5 to be rolled through it, but later on it has been changed to 8 T Ingots without significant change in its equipment. The effect of change of load is not visible immediately, but in the long run many problems
Maintenance Module Based on Inspection & preventive Maintenance along with redesign I R F
REV
MOD
Dia. : A
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of perennial nature surfaced and some of them were eliminated by a suitable method of modification arrived by blending the two systems of maintenance described above. back is given in the form of report. Since the cause of the defect is not ascertained immediately, it should be monitored for a period. As the defect is of unusual nature, a thorough analysis or root cause analysis is to be done for finding out the cause(s). After finding out the cause(s) all possible causes should be eliminated.
MAINTENANCE MODULE:
The maintenance module should have the following activities: 1) Inspection [I] 2) Record IR] 3) Generation of Defect list [D] 4) Planning [P] 5) Observation [O] 6) Execution(repair) [E] 7) Feedback [F] 8) Monitoring [M] 9) Analysis [A] 10) Modification (change) [MOD] 11) Record modification & review [REV] The module is designed as shown in the flow diagram below
UNUSUAL DEFECT WITH RECURRANCE (I-R-D-P-E-M-A-M0D-12EV):

If the same defect is repeated, a thorough analysis or root cause analysis is to be done. After finding out the cause(s) all possible causes should be eliminated.
ANALYSIS:
The total job of maintenance based on inspection. The list of equipment to be inspected, frequency of inspection, time of inspection should be so judiciously designed so that it should not hamper production nor it should violate any safety norm. Once the list is prepared, the inspection to be done as per designated schedule and all other activities should be followed till the cycle is complete.
The total job of maintenance should be based on inspection wherein the design of activities should not hamper production or violate any safety norm.
GENERAL CASE (I-R-D-P-E-F-R):

Inspect equipment Record the data from Inspection report Generate defect list from record Plan the job to liquidate the defects found Execute the job or eliminate defects as per plan Give feedback to record
CONDITIONAL CASE (I-R-D-O-P-E-F-R)

There may be cases where defect liquidation cannot be planned immediately due to production pressure but defect can be allowed to continue keeping the equipment in question on observation, till the liquidation is planned and defect is eliminated. For such cases this method is adopted with addition of observation after defect list is generated.
In many cases the probable or certain causes which triggered the break down, become responsible for similar breakdowns after a certain period of time. This is the point where the maintenance engineer should find out ways to eliminate the source of cause which impend defects by modification or change in design parameters or by simple alterations where ever possible. While doing modification all factors should be considered like recurring cost, impact on other equipment, performance of modified system in comparison to existing system etc. Once the modification is done and tested it should be documented for future reference and any change required in drawing should also be incorporated. Then the inspection schedule should be accordingly reviewed to incorporate the new modification.
Conclusion:
Though there are many processes in achieving good machinery health, the best way of maintenance can only be decided by people who monitor them regularly. Machine behavior is a reflection of human behavior. As the great author Mr. Stephen Covey said, 10% of the events around us happen automatically upon which we have no control, but 90% of the of the events occur as a result of our reactions towards these 10%happenings. OPSWorld
UNUSUAL DEFECT WITHOUT RECURRANCE (I-R-D-P-E-M-A):

In some cases an unusual defect surfaces like a bearing is broken, a shaft is sheared, a gear is slipped over a shaft etc. As the defect is to be eliminated at the earliest opportunity or in many cases immediately, the execution of job for elimination of defect is planned, executedand a feed-
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Site Identification for new AIIMS-like Institutions based on Network Analysis
Site Identification for new AIIMS-like
Institutions based on Network Analysis of similar existing facilities
1. Introduction
Pradhan Mantri Swasthya Suraksha Yojana The Pradhan Mantri Swasthya Suraksha Yojana (PMSSY) was floated by the Central Government in 2006 as a measure to address the imbalance in the availability of the best healthcare facilities across the nation and to augment the countrys medical education facilities. The Yojana is to be implemented in multiple stages. The first phase would consist of development of six AIIMS-like Institutions (ALIs), besides up-gradation of several other existing medical colleges. The next phase would consist of construction of two super-specialty facilities, one each in West Bengal and Uttar Pradesh. The third stage, which was recently approved by the Union Cabinet, involves the construction of four more facilities. This stage is the one that this paper is concerned with. The Union government is yet to decide on the states in which these facilities would be located. Considering that any such endeavor involves a huge expenditure (the latest Central government estimates have put the figure at Rs.847 crore on average for each of the institutes), we believe it is imperative that these facilities be located so as to not only fulfill the criteria laid down by the committee that has proposed the latest phase, but also to ensure the optimum utilization of the facilities. It is with this aim that we have designed a model that suggests the best locations for the four proposed institutions.
Criteria
AUTHORS
Neeraj Gupta IIM Lucknow Mukul Kaura IIM Lucknow
As per the Hon. Union Health & Family Welfare Minister1, the location of the initial six institutions were decided based on several socio-economic indicators such as the human development index, the regional per capita income, the number of people living below poverty line and health indicators such as infant mortality rate, the population-to-bed ratio, etc. The steering committee on health for the 12th five year plan has listed a broader set of criteria for deciding the sites for the four new hospitals2. The committee recommends that the decision be taken based on: 1. Geographical Location
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2. Physical Infrastructure 3. Ease of connectivity with medical facilities 4. Health indicators 5. Local disease burden above indicator. Figure 1 shows the region expected to be covered by the eight approved ALIs as well as the AIIMS at New Delhi. In order to ensure that maximum area gets the coverage, as well as considering the hilly terrain in J&K as well as in the North-East, we decided to allocate one ALI to each of these two regions. Considering that Jammu city and Guwahati are by far the most accessible and developed cities in these two regions respectively, we propose that the facilities be located there. For the western and southern regions, it can be seen by visual inspection of Figure 1, that maximum coverage can be provided only if one of the ALIs is distributed to one of the Western states (Gujarat, Maharashtra & Goa) and other to the southern states and Union territories (Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Puducherry). We have therefore formed two clusters with candidate cities from these two regions and applied an Analytical Hierarchy Process (AHP) model to come up with the best candidates from these two regions.
2. Methodology
Accessibility Considering that these facilities are few in number and dispersed across the nation, we have laid down a criterion for defining the accessibility (or catchment area) for each facility. We believe the distance that can be covered in an overnight train journey is a good indicator for the area that can be serviced through one facility. Considering that an express train travels at a little over 50kmph (when accounting for stoppages), we get a radial distance of 400km (50kmph X 8 hours) as our catchment area indicator. Geographical Distribution We then proceeded to plot the area serviced by each of the facilities already finalized using the
Figure 1: Area catered to by the approved facilities and the AIIMS at New Delhi
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Candidate Locations The candidates were taken to be the top 21 Tier-I, Tier-II and Tier-III cities from the two clusters taken together. AHP Model One of the five factors that would determine the ALI locations has already been incorporated in the analysis manually. The other four factors have been incorporated in the decision making process through the use of a four factor AHP model. Ease of connectivity with medical facilities We have taken the density of rail network as a measure of connectivity and the number of Health Sub-Centers as the indicator of level of medical facilities in a particular state. Each of the two data3 sets have been normalized to represent a fraction of the highest density (or sub-centers) and the product of the two taken to arrive at a final score. The data suffers from a limitation in sense that the two data sets are for different instances in time. However, their use can be rationalized by assuming the growth of sub-centers to be proportional for each of the states. Health Indicators The life expectancy4 in each of states/UTs for the candidate cities has been taken as a surrogate for health indicator. Once again, the life expectancies have been normalized using the highest data point to arrive at a health indicator score. Local Disease Burden The local disease burden has been measured using the number of people hospitalized on a per thousand basis. The inverse of the data5 has then been normalized (using the same process as before) to get an indicator for the local disease burden.
As on 31.3.2001 Route Kms. Per '000 Sq. Kms. Andhra Pradesh Goa Gujarat Karnataka Kerala Maharashtra Puducherry Tamil Nadu* 67.89 27.02 22.56 17.32 15.52 8.73 0.07 31.22 Route Kms. Per 000 Sq. Kms. (Normalized) 1.00 0.40 0.33 0.26 0.23 0.13 0.00 0.46
As on 1.4.1996 Sub-Centers (Normalized) Connectivity Score
Sub-Centers
7894 175 7284 7793 5094 9725 79 8681
0.81 0.02 0.75 0.80 0.52 1.00 0.01 0.89
0.81 0.01 0.25 0.20 0.12 0.13 0.00 0.41
Figure 2: Ease of connectivity with medical facilities

Life Expectancy at Birth States/UTs Andhra Pradesh Goa Gujarat Karnataka Kerala Maharashtra Puducherry# Tamil Nadu Male 61.7 64.7 62.1 62.5 70.7 64.7 63.9 63.9 Female 64.3 67.2 64 65.8 76.1 67.2 65.9 65.9 Proportion Male 0.50 0.51 0.52 0.51 0.48 0.52 0.49 0.50 Female 0.50 0.49 0.48 0.49 0.52 0.48 0.51 0.50 Life Expectancy 63.0 65.9 63.0 64.1 73.5 65.9 64.9 64.9 Life Expectancy Score 0.86 0.90 0.86 0.87 1.00 0.90 0.88 0.88
* For Goa, Maharashtra figures have been used # For Puducherry, Tamil Nadu figures have been used Figure 3: Life expectancies
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State-wise Persons Hospitalized During Last 365 Days (Per OOP's) States/UTs Andhra Pradesh Goa Gujarat Karnataka Kerala Maharashtra Tamil Nadu Pondicherry Rural Persons 14 26 14 14 70 19 18 44 Urban Persons 17 25 21 18 65 26 23 22 Rural Urban Proportion Proportion 0.67 0.38 0.57 0.61 0.52 0.55 0.52 0.32 0.33 0.62 0.43 0.39 0.48 0-45 0.48 0.68 Total 15.00 25.38 16.98 15.54 67.61 22.17 20.42 28.97 Inverse 0.07 0.04 0.06 0.06 0.01 0.05 0.05 0.03 Urban Proportion 1.00 0.59 0.88 0.97 0.22 0.68 0.73 0.52
Figure 4: Persons hospitalized during last 365 days

Expenses Scaled for Physical Source 2011-12 Infrastructur e Score 283.34 4489.94 0.013 0.213 http://www.urbanindia.nic.in/Droeramme/uwss/CSP/Draft CSP/Solapur CSP.pdf http://www.punecorporation.ore/pmcwebn/about us.aspx http://www.mceni.eov.in/iri/portal/anonvmous/qlbudeetspeechtf http://www.hindustantimes.com/India-news/Mumbai/MNSNCP- fight-to-control-Nashik-as-Bhujbal-tries-to-rustle-upnumbcrs/Articlel-815596.aspx http://articles.timesofindia.indiatimes.com/2012-0203/surat/31021057_1_smc-budget-surat-municipal-corporation-gopi-talav http://ibnlive.in.com/generalnewsfeed/news/rajkot-corporations-draft-budget-presented/958525.html Source: Jamanagar Municipality http://www.navhindtimes.in/content/ccp-presents-evenlybalanced-annual-budget http://www.cdma.gov.in/cdma/Downloads/Anantapur_Dist rict/Anantapur%20Corp._Working%20Sheet.xls http://www.ourvmc.org/general/Budget_2011-12.pdf http://www.ghmc.gov.in/tender%20pdfs/Disclosure_to_Pu blic_New.pdf http://mysorecity.gov.in/sites/mysorecity.gov.in/files/Budget -final_2.pdf http://218.248.45.169/download/budget/Budget%20Speec h.pdf
City Solapur Pune
283.34 3196.12
Mumbai
21096.56
21096.56 1.000
Nashik
1500.00
1500.00
0.071
Surat
3194.00
3194.00
0.151
Rajkot Jamnagar Panaji Anantapur Vijaywada Hyderabad Mysore Bangalore Shimoga Chennai Vellore
500.00 356.88 23.93 27.03 293.23 2237.76 253.46 9196.09 47.86 1850.66 3.03
500.00 501.35 33.62 27.03 293.23 3193.52 356.06 9196.09 47.86 1850.66 4.32
0.024 0.024 0.002 0.001 0.014 0.151 0.017 0.436 0.002 0.088 0.000
http://chennaicorporation.gov.in/budget/budgetImages/20 11-12.pdf http://vellorecorp.tn.gov.in/
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City Expenses Scaled for Physical Source 2011-12 Infrastructur e Score 415.56 358.40 28.89 152.25 74.84 114.70 0.020 0.017 0.001 0.007 0.004 0.005 http://www.thehindu.com/news/cities/Coimbatore/article1485944.ece http://203.101.40.168/newmducorp/budget.htm Population of Puducherry 6.6 Times of Vellore, Hence Vellore budget has been multiplied by 6.69 http://www.corporationoftrivandrum.in/sites/default/files/8 BudgetedIncome&Exp.pdf http://www.kozhikodecorporation.org/images/news/iek310 311.pdf http://corporationofcochin.net/finance/incExp201003.pdf
Coimbatore Madurai
415.56 255.12
Puducherry* 20.24 Travindrum Kozhikode Cochin 106.68 53.27 80.37
Figure 5 Local Bodies' budgets for respective candidate cities
City
Physical Infrastructure
Physical Infrastructure
Ease of Connectivity to Health Indicators Medical Institutions 0.307692 0.002204 0.076583 0.076583 0.076583 0.039566 0.039566 0.039566 0.039566 0.249761 0.249761 0.249761 0.062903 0.036844 0.036844 0.036844 0.126323 0.062903 0.062903 0.126323 0.126323 0.126323 2.58E-06 0.076923 0.068992 0.065936 0.065936 0.065936 0.068963 0.068963 0.068963 0.068963 0.065921 0.065921 0.065921 0.067102 0.076923 0.076923 0.076923 0.067912 0.067102 0.067102 0.067912 0.067912 0.067912 0.067934
Local Disease Burden
Final Score
0.153846 Cluster 1 Panaji Surat Jamnagar Rajkot Mumbai Pune Nashik Solapur Cluster 2 Hyderabad Vijaywada Anantapur Bangalore Travindrum Cochin Kozhikode Chennai Mysore Shimoga Coimbatore Madurai Vellore Puducherry 0.151376 0.0139 0.001281 0.435905 0.007217 0.005437 0.003547 0.087723 0.016878 0.002269 0.019698 0.016988 0.000205 0.001369 0.023289 0.002138 0.000197 0.067062 0.00111 0.000836 0.000546 0.013496 0.002597 0.000349 0.00303 0.002614 3.15E-05 0.000211 0.001593 0.151399 0.023765 0.023701 1 0.212828 0.071102 0.013431 0.000245 0.023292 0.003656 0.003646 0.153846 0.032743 0.010939 0.002066
0.461538 0.461538 0.27288 0.27288 0.27288 0.102423 0.102423 0.102423 0.102423 0.461538 0.461538 0.461538 0.407828 0.445559 0.445559 0.445559 0.3391 0.407828 0.407828 0.3391 0.3391 0.3391 0 0.532979 0.438691 0.419055 0.419045 0.364798 0.243695 0.221891 0.213018 0.800508 0.779358 0.777417 0.604895 0.560437 0.560163 0.559872 0.546831 0.54043 0.538182 0.536365 0.535949 0.533366 0.068147
Figure 8: Weighted aggregate score for candidate cities
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Physical Infrastructure The budget for municipal corporations/municipalities of respective candidate cities/UTs was taken as a proxy for the physical infrastructure. Relative Factor Ratings for AHP Model We believe that the four factors are not all equally important. The local disease burden should be given the highest rating since it is the most relevant factor in determining which areas needs the most medical help. Ease of connectivity should be considered most important amongst the rest since this would ensure that the facility could be used in time. The level of physical infrastructure in a city/town should be deemed more vital than health indicator since this can help induce the best talent in the medical fraternity to come and work at these centers. Based on the above reasoning, we have assigned the following initial rating to the factors:
Physical Infrastructure 0.153846
Factor Local Disease Burden Ease of Connectivity to Medical Institutions Physical Infrastructure Health Indicators Figure 6: Initial Factor Ratings
Weights 6 4 2 1
3. Results The following table shows the aggregate weighted factor score for each candidate city: (Figure 8) 4. Conclusions We recommend that the new ALIsbe located in new facilities be located at Jammu (Jammu & Kashmir), Guwahati (Assam), Panaji (Goa) &Hyderabad (Andhra Pradesh).
Health Indicators 0.076923 Local Disease Burden 0.461538
Ease of Connectivity to Medical Institutions 0.307692
Figure 7: Factor Weights
Figure 9: Sites for ALIs
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Appendix: Analytical Hierarchical Process

Factors Physical Infrastructure Ease of Connectivity to Medical Institutions Health Indicators Local Disease Burden Physical Infrastructure 1 Ease of Connectivity to Health Indicators Medical Institutions 1 1 Local Disease Burden 1
2 0.5 3 6.5
1 0.25 1.5 3.75
4 1 6 12
Local Disease Burden
0.666667 0.166667 1 2.833333
Physical Infrastructure Physical Infrastructure
Ease of Connectivity to Health Indicators Medical Institutions 0.266667 0.083333
Row Sum
Weights
0.153846
0.352941
0.856787
0.214197
Ease of Connectivity to Medical Institutions 0.307692 Health 0.076923 Indicators Local Disease 0.461538 Burden 1
0.266667 0.066667 0.4 1
0.333333 0.083333 0.5 1
0.235294 0.058824 0.352941 1
1.142986 0.285747 1.71448 4
0.285747 0.071437 0.42862 1 1
Table 1: Factor weight calculation through AHP Framework
Quiz
OPSWorld
1. Identify the operation term related to the following picture.
b. c. d. e. 6. 4. Afamous term used in famous 1984 book titled The Goal. Hint:- Picture
3333 hours 3000 hours 545.5 hours 1833.3 hours Terminology used in figure for animal tracking
2. Daily demand for a product is 120 units with a standard deviation of 30 units. The review period is 14days and the lead time is 7 days. At the time of review 130 units are in stock. If only 1 percent risk of stocking out is acceptable, how many units should be ordered? (Take z=2.33) 3. Connect the pictures
5. Three identical components each having a MTTF of 1000 hours are functionally connected in series. If the failure time distribution is exponential, the MTTF of system is : a. 333.3 hours
7. Which type of layout is generally used in JIT manufacturing? a. L-shape b. Straight Line c. Zig-Zag d. U-shape
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Down 1 Time of work, again and again (4,4) 2 Important character in The Goal1, _____ Reloaded (6) 3 Bombay->Pune->Delhi-Patna, Still couldnt sell an Indigo Marina (10,8) 6 It was never meant to work the right way, because it had to (6) 7 A team of 5, with 4 free riders (6) 10 Child Genus, anagram (10) 14 Deadly Manifestation About Insignificant Crap, acronym (5)
Across 4 Diverts attention on Highways, Japanese (6) 5 ___ Armstrong and a famous audio equipment manufacturer (4,2,4) 6 Imbalance, Japanese (4) 8 The Father of SCM (3,3) 9 Christened the word Supply Chain Management 11 Cleanliness is next to Godliness, Japanese (5) 12 Credit 4$, Debit 6$, function, (7) 13 Mistake proofing, Japanese (4,4) 15 Lock, Stock and 2 smoking ____, synonym (4) 16 Counter Strike Condition Zero version (4,4) 17 Beep on radar, used to measure variability in operations (8,6)
Quiz
8. System representing highest level of automation in manufacturing industry. a. Flexible manufacturing system b. Computer aided manufacturing c. Computer aided design d. Computer integrated manufacturing
OPSWorld
Credits: Bharat Subramony, IIM Kozhikode, Deepak Kumar, IIM Kozhikode.
OPSWorld
Quiz
OPSWorld Answers
9. To convert n jobs and 3-machine problem into n jobs and 2-machine problem, the following rule must be satisfied a. All the processing times of second machine must be the same b. The minimum processing time of 2nd machine must be ? the minimum processing times of first and third machines c. The maximum processing time of 2nd machine must be ? the minimum processing times of first and third
Quiz
10.Which of the following would be included in a list of dependent demand items? a. Computer audio subsystems delivered to a computer superstore for sale as upgrade items b. Car mirrors delivered to an automotive dealership as repair parts c. Shirts delivered to a retailer for stocking on shelves d. Computer hard drives delivered to the computer manufacturer for installation depending on customer requests
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1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
OPS World
Backlog 2710 PERT Theory of constraints (a) RFID (d) (d) (c) (d)
machines d. The maximum processing time of 1st machine must be ? the minimum processing times of second and third machines
Bargain Air Fares
Bargain
AirFares
I
It all started with Expedia introducing it in the year 2004 but ceased to exist as on date. Now Makemytrip has introduced this concept in 2011.The Idea is to sell unsold tickets in various flights at the last moments by offering cheap prices. That should raise an immediate Question; passengers would be desperately waiting till last moment instead of taking a risk of prior booking for which cancellation charges are too high. Also, it is not necessary that this type of provision with fixed seats need to be opened for every flight or trip in specified time zone. Its purely dependent on number of seats empty on flight that moment. Though it is in conflict with premium prices charged in air fares as day of flight nears, the tickets booked via Bargain fares quota has some exceptions because of which prior bookings continue to happen. Under bargain booking they need not inform about flight name or timings which you are going to travel by. Mostly, a booked passenger can only take a wildguess on the airline. Sometimes, there can also be a hopping/connecting flight instead of direct flight. You are only guaranteed a flight time between 6am and 2pm (for every 8 hours time zone), tickets are non-refundable, non-transferable and cannot be cancelled or changed (like postpone/prepone) once purchased. Nor can Bargain Fares be purchased with flyer miles or any discounts. These prices are similar to range of initial price of flight ticket when booked earlier before 2 months or so. Let analysis to understand it better, the Expected Marginal Seat Revenue Concept of air lines in lines with News-Vendor Problem analysis says that for Optimal Booking Cu F(Q) =
Co + Cu
AUTHOR
Sivakumar Nandipati IIM Indore
Where Cu is Underage Cost (Price of Business class Price of economy class) and Co is Overage cost (Price of Economy Class) The above formula is used for Economy Class v/s Business Class But this should be applied at other aspects also C Business class Price v/s Penalty paid OPSWorld
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Bargain Air Fares
C Economy Class Price v/s Empty seats loss Underneath Idea comes from root of this to form bargain fares. Let us have a clear illustration of all possibilities and advantages caused in introduction of bargain fares. There are 3 possibilities for flight tickets capacity(supply) v/s Flight passengers for that flight(demand).Lets go case by case. Scenario 1: Deals with when supply is greater than demand To sell unsold tickets in last hours - so that you can make some money. With Generic model- when the seats are not filled full, but as the time proceeds the prices always keeps on increasing which creates a cumulative effect on decreasing demand further thereby keeping the emptier seat capacity. Now this bargain fare just erases that problem and creates a new mode to sell tickets. Customer cannot identify whether airlines are selling tickets being there are excess or they are keeping buffer for cancelled forecast. They also unaware of how many tickets being available as they never knew when they finish this bargain fares mode & start booking tickets sooner thereby increasing demand. Scenario 2: Deals with when supply is less than demand To avoid penalty charges to pre-booked customers for moving to other flight as with this model, airlines will never go for over booking in their premium or economy classes. They would shorten their economical class capacity increase their premium class quota. So, It is evident that prices starts increasing sooner compared to earlier scenario. The Price they save earlier can be nullified in end case, incase if flight seats are not filled. Please find below table: Old scenario was to get over-booked tickets in premium segment v/s penalty charges. Forecast model of cancellations on previous booked tickets and last minute no-shows as explained earlier is dealt. The power in transaction stays with airlines. Suppose airline expected a cancellation and
no shows by their forecast model and went for over-booking tickets, if it cannot accommodate respective person on respective flight on planned time It needs to pay penalty to boarded passenger which is much more than fare of ticket for inconvenience it caused. The demanding power of flight or money stays with customer and there is never a written rule as such. However, Bargain fares itself dont confirm about any uncertain incidents. The decision making ability stays with airlines to use the bargain customers as buffer to avoid inconvenience to any confirmed/ preplanned booked customer. Urgency and economy is addressed together. Scenario 3: Deals with supply equals demand, This takes care of last minute cancellations and no-shows resulting in accumulation of those seats. This is extra amount earned, as no shows and last minute cancellations (most of cost is retained with airline) are revenues already earned and Bargain fare is a icing on the cake. Tie-ups with Other Airline companies Sometimes, when the Overbooking shoots up and less than expected no-shows happens , we will have a 2-way tie-ups with other airlines which slowly builds up to sustain relationships and cooperate to dominate technique. Its a WINWIN strategy for both of them. So this seems useful in all cases. But nothing is free. Disadvantages being C Few of the Premium/Business/urgency class people who on traditional basis go via premium fares now hold for a while and check out these fares when both of the modes are open in last hours. C Few of prior planned customers are waiting and aiming at bargain fares, instead of booking earlier. That reduces booking limit of economy fare and time taken to convert them into premium segment. Once these loop holes are managed properly, with this different pricing mechanism, revenue management of airlines are honored efficiently and effectively.
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ERP in operations management
ERP in operations
management
I
AUTHOR
Introduction
In a business landscape that is getting increasingly competitive and where time is money, most manufacturers depend on the efficiency and increased delivery rates to gain and maintain that enviable portion of market share. In this context, ERP is looked upon as the current trend and possibly the way forward for many manufacturing companies, and with good reason. Coming up Later is also a case of how LOreal leveraged ERP to revamp its operations systems and gain that much needed makeover. The first commercial ERP software packages took the market by storm in the 1990s, wherein it integrated all data and process related information into one single information system. But, the downside was that this was huge and as a result noncustomised and unwieldy, and naturally, was branded as a complex tool to use. Today, the next-generation ERP has evolved to being operations-management-specific and a highly scalable end-to-end solution that promises to streamline and automate business processes across the organisation. ERP today has morphed into a requirement-specific model. Previously, it failed when the same package was applied to different verticals like chemicals and Beverage industry, because,
Hymavathi Pavitra K. IIM Raipur
ERP in recent times
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ERP in operations management
for instance, the terminology specific to an industry used was not supported by the package. The latest ERP package, however offers industry-specific functionalities that meets the diverse needs of the users. Some of the more important features of the ERP include streamlining and integrating various organization units like inventory, production, purchasing, sales and warehouse management. They also use customisable web services to connect quickly and easily with suppliers, customers and logistics-providers, enabling real time data exchange. The result is a simple, customisable, ERP tool that can be used by anyone from shopfloorupward. ERP systems help the service engineers tremendously. An all-in-one system allows service engineers real time access to jobs, schedules and data and also ensures that all changes are relayed to the management directly. Previously, companies had to integrate their standalone workforce management solutions to their ERP systems and this led to the all-too-familiar issue of integrating disparate systems. Now, there is a single, fully integrated system covering all requirements, whether field service, CRM or the mobile sales-force.
production standards are met while manufacturing 4.9 billion units within 23 global brands across 38 production sites. The take-away from this, as the CIO Jacques Playe says is the fact that operations management, when used along with ERP, can deliver greater benefits that separate implementations.
The road ahead

An ERP links the different but vital components of an organization. It provides a backbone on which effective operations can take place. From monitoring to forecasting to gaining critical business information, ERP does it all. It provides exciting future opportunities with regard to the fact that further improvement or enhancements in ERP could mean an organisational change that flows down to each and every component that is linked. A tweak in the strategy of the organisation as a whole would flow easily to all the departments. Also, as the building block of ERP is IT, and the fact that IT is a dynamic field undergoing changes, for the better, cloud computing, for instance, ERP will benefit greatly and the operations management, which is in conjunction with ERP, will in turn benefit too. References
LOreals effective use of ERP in operations management

In 2011, LOreal, the cosmetics giant, successfully re-engineered their entire manufacturing process to work efficiently, and at the same time maintaining the quality and integrity of their brand. They integrated SAPs ERP system with Aprisos FlexNet. FlexNet ran all the manufacturing processes on the shop floor. This project was successful in ensuring that highest quality and
1. Kumar, R 2011, 'ERP refines operations management and planning', Operations Management (1755-1501), 37, 5, pp. 34-36, Business Source Complete, EBSCOhost. 2. 'All-in-one and one for all' 2012, Works Management, 65, 6, p. 39, Business Source Complete, EBSCOhost. 3. Playe, J 2011, 'L'Oral's manufacturing MAKEOVER', Baseline, 108, pp. 34-35, Business Source Complete, EBSCOhost.
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Cost Effectiveness: JIT vs EOQ
Cost Effectiveness:
JIT vs EOQ
A
AUTHORS
Abstract:
Inventory accounts for about 40-50% of the total cost in a supply chain. Hence inventory control becomes important and effective tool to bring down total cost. This article compares two strategies of inventory control- traditional single delivery method (also known as EOQ model) and Just-In-Time (Single Setup Multiple Delivery) model. For this a matlab code has been developed and implicated. This code first compares inventory costs from both single and multiple delivery methods; then applies whatsoever method is more economic. Though JIT is considered to be more economic, it has been shown with an example that for a supply chain least costs can be obtained by using a combination of both of them. By traditional inventory policy we mean that goods are transported in a single delivery. Whole stock for a season is imported at a single go and then uses throughout. The basic difference between JIT and traditional method is that in JIT stock for a season is imported in multiple deliveries thus reducing inventory cost and material wastage; but on the other hand order cost and transportation costs are increased. So a balance has to be set between them to get economic inventory policy. In JIT purchasing cost is minimized by the sharing of different spends between seller and buyer. The total cost for an integrated inventory model includes all costs from both buyer and supplier. The buyers total cost consists of ordering cost, holding cost, transportation and order receiving costs incurred due to multiple deliveries. The suppliers cost includes holding cost and setup and order handling costs. In this model, the buyer is assumed to pay transportation and order handling costs in order to facilitate frequent deliveries. In fact, the buyers payment of transportation and order receiving costs can be viewed
1). Introduction:
Gunjan Soni Malaviya National Institute of Technology, Jaipur Aman Jain IIM Lucknow
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as an investment for the sake of streamlining inventory. When the buyer places an order, in a JIT environment, the supplier splits the order quantity into small lot sizes and delivers them over multiple periods. The supplier then needs to hold the inventory throughout the production of the order quantity. An integrated approach allows the buyer and the supplier to reduce their total costs as compared to non-integrated approach. Both parties in some equitable fashion can share savings resulting from cost reduction. The supplier reduces its cost by imposing shipping and order handling costs on the buyer, and in turn, the buyer receives a unit price discount because of large order quantities over the contract period. Thus, both parties in the process of price negotiation share the savings in the total costs occurring in their model.
Where N* and Q* are the optimum values of order quantity and number of trips required. These values are calculated by Adding both costs we get total cost function in two variables N and Q, which can be, prove to be convex. Equation mentioned above usually doesnt give a integer. So we have to take nearest integer greater and smaller than N* and check the total cost value. Whatsoever gives lesser cost is taken as optimal number of trips. Total saving of JIT : Any savings from implementing the SSMD policy over the single-delivery policy can be obtained by subtracting total cost function from total cost when 1 as replaces N.
3). Mathematical treatment to JIT*:

Consider the following notations: D: monthly demand of buyer P: monthly production rate of seller A: ordering cost per order C: hourly setup cost for seller S: setup time F: transportation cost for linkage V: unit variable cost for buyer Hs: holding cost per unit per month for seller Hb: holding cost per unit per month for buyer. N: number of trips Q: order quantity q : quantity per trip. Total cost for buyer composed of ordering cost, receiving cost and transportation cost. and sellers cost consists of setup cost and holding cost.
Note that the N=1 is a special case for classic EOQ model. Thus we get the total saving which can be gained by JIT instead of classical EOQ method. But, JIT is not always beneficial. It is advised to adopt JIT only when order quantity (Q) is greater than a certain limit. This limit is calculated as:
Where N is the number of trips calculated above. Qmin is a function monotonically increasing in N. Equations 1 and 2 on addition gives the total cost of both as: Optimal delivery size: optimal delivery size q* can be calculated by dividing the order quantity with number of trips, i.e. q* = Q* / N* From above calculated values of Q* and N* is follows that
from the total cost calculated above we can get the optimal number of trips and optimal order quantity. By taking first derivative of equation 3 with respect to N and Q setting them equal to zero and thus solving simultaneously for N and Q, we obtain:
Note that N, q and Q should be integer values. Algorithm for this is mentioned later in the paper. Sales data for other nodes can be taken in two ways: first simply user input and secondly, it can OPSWorld
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be generated using forecasting techniques. In the given code double exponential smoothing technique is used to forecast sales data. above. Sales data of retailer for last six months is 4200, 4180, 4280, 4190, 4000, 4100. Other parameters of supply chain are given in tables below. We have to optimize inventory cost.
4). Sample Problem:

Consider the 4-tier supply chain mentioned Enter the sales data for the retailer
Calculate monthly demand for buyer using sales data and customer service
Enter the parameters for this step (production cost, holding costs etc.)
Calculate N*, Q* and Qmiri using mathematical relations given above.
IF (Q*>Q min)
Ner = 1; Qer = Q; qcr = Q;
Get smallest and greatest integers next to N* say N1 and N2 respectively
If TC(N1, Q*)>TC(N2,Q*) Ner=N1 Ncr=N1
q*=Q*/Ncr; qcr= round (q*) Qcr=qcr*Ncr;
(Total cost +)=TC(Ncr; Qcr)
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Input Data: Quantity Production rate(per month) Holding cost(Rs. Per unit per year) Ordering cost(Rs. Per order) Hourly setup cost Set up time Variable cost (Rs. Per unit per year) Customer service level Exponential smoothing factor Trend factor Transportation cost Results obtained: Step Retailer-Manufacturer Manufacturer- Supplier Supplier-Raw material Total Supply chain JIT cost 10989 7073 13232 31294 Traditional cost 14822 7139 14621 36582 JIT profit 3833 42 1389 5288 Economic JIT JIT JIT JIT Retailer ----* 7 50 ------1 96 ----200 Manufacturer 6000 6 40 200 2 0.5 95 0.9 0.9 150 modified material Supplier 8000 5 45 100 1.5 1.5 98 0.9 0.9 250 Raw material/ source 10000 3 ---150 3 --------0.9 0.9
Thus we see that a inventory cost in supply chain is reduced by Rs. 5264. Now question rises that is JIT always profitable???? CASE 2: Here we take the same values as above but we change the production rate at steps. New production rate: For manufacturer = 12000; For supplier = 14000; For raw-material resource = 16000 Results Step Retailer-Manufacturer Manufacturer- Supplier Supplier-Raw material Total Supply chain JIT cost 11252 7210 13200 31662 Traditional cost 11736 6988 13806 32530 JIT profit 484 -222 606 868 Economic JIT Traditional JIT JIT
It is evident that for 2nd step Traditional method of inventory control is more beneficial
6). Analysis:
Here we see that for supplier-to-manufacturer step traditional method of inventory is more economic than JIT. Hence we cannot generalize that JIT is always beneficial; although we can say in most situations JIT is better technique for inventory control. For best results we have to check which of the two methods costs less- at every step. This is done by comparing the order quantity with Qmin. (Minimum order quantity for which JIT is beneficial) which is mentioned above. This code applies this logic at every step of supply chain for providing best results for you. References: 1). Handbook of supply chain managementJames B. Ayers, St. Lucia press 2001
Introduction to supply chain (3-8) ; Evolution of supply chain models (25-35). 2). Inventory management in India R.S. chadda , 1964 3). Statistical forecasting for inventory control Robert G. Brown, TMH publications Moving average, single and double exponential systems (26-70) 4). Physical distribution systems Alan C. Mckinnon ,1989 customer service level (8392) 5). Operation research seventh edition Hamdy H.Taha, Pearson education, 2004 Forecasting models (491-503) 6). Research paper on JIT lot splitting model for supply chain management by Seung-Lae kim and Daesung Ha, 2001 OPSWorld
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Microgrid optimization as an OR problem
A
AUTHORS
Sreevas Sahasranamam
Doctoral Student, Strategic Management IIM Kozhikode
Dr. Mahesh P. Bhave

Visiting Professor, Strategic Management IIM Kozhikode
Dr. P.N. Ram Kumar

Assistant Professor, Quantitative Methods and Operations Management IIM Kozhikode
Around 20% of worlds population is still without access to electricity(The World Bank, 2012) and studies show proximity to main electricity grid as the determining factor in people having access to electricity(Oda & Tsujita, 2011). This essentially isolates the remote places from having access; therefore, self-sustaining community managing local generation, storage, and grid connected electricity model, popularly termed as microgrids is a key solution. According to Microgrid Exchange Group (2011) A microgrid is a group of interconnected loads and distributed energy resources within clearly defined electrical boundaries that acts as a single controllable entity with respect to the grid. Microgrids provide significant advantages like reduced energy costs, increased overall energy efficiency, improved environmental performance, and reliability(NYSERDA, 2010).Microgrids essentially consist of a combination of different power generating sources, primarily renewables. A typical microgrid would have a combination of power sources as shown in Figure 1. This composite nature energy generating model throws up unique challenges like: a. Modeling the combination of sources to minimize on the costs b. Optimizing the nature of energy distribution, and c. Distributing power requirements among the various sources in order toensure that the combined system is reliable and sustainable. The costs associated with each of the energy generating sources, the environmental conditions governing the amount of power generated by each, and the period for which each of the generating sources are expected to contribute vary. This calls for an Operations Research approach to optimize the costs of generation subject to environment, financial, and demand constraints.
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Figure 1. Different energy sources that normally constitute a microgrid The objective function of this Operations Research problem seeks to minimize the total costof the overall microgrid. Total cost is a function of per unit energy cost associated with each generating source, and costs associated with inverters and battery units. This objective function is subject to the following constraints: Environmental constraint: Solar power is only available during day time and is subject to variations based on weather conditions like rain and cloud cover.Wind power is also subject to variations depending on wind speed, location of windmill, and windmill height and size. The amount of power generated from micro-hydro sources depends on the amount of water available, seasonal factors, and speed of water flow. Biogas source is dependent on the availability of household organic and cattle waste and organic material available from nature and farming. Thusdepending on daily weather variations, theoperational modelhas todynamically provide an optimized energy solution. Financial constraint: Solar, wind,and micro-hydro generation units are associated with high initial investment but they have a long life and minimal post installation costs. Diesel generator units have less initial investment costs but diesel is a scarce, polluting resource and prices have been rising significantly every year. Demand constraint: The power generated from the microgrid must be capable of adequately meeting the energy demand of the community. REFERENCES
Department of Energy Microgrid Exchange Group. (2011). DOE Microgrid Workshop Repor. San Diego: Office of Electricity Deliver and Energy Reliability. NYSERDA. (2010). Microgrids: An Assessment of the Value, Opportunities and Barriers to Deployment in New York State. New York: NYSERDA. Oda, H., & Tsujita, Y. (2011). The determinants of rural electrification: The case of Bihar, India. Energy Policy, 3086-3095. The World Bank. (2012). Energy - The Facts. Retrieved March 16, 2013, from The World Bank: http://go.worldbank.org/6ITD8WA1A0
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Operational Excellence at Erection Site:

Simhadri Stage 1, NTPC Limited
Introduction :
Simhadri Project, Stage 1, is not only a benchmark for NTPC limited but also for other power majors in terms of project management and operational excellence . The project was completed in record 33 months which is a milestone in Indian context. The Project involved the construction of a coal-fired thermal electric power plant with an output of 1,000 MW (2X 500 MW) at a coastal location in Simhadri, in the proximity of the port and industrial town of Vishakhapatnam, in Andhra Pradesh. The power generated from the Project is exclusively meant for meeting the requirements of Andhra Pradesh. The primary fuel, coal [6 million tones annually] is sourced from Talcher coal fields in Orissa of the public sector Mahanadi Coalfields Ltd (MCL), located at 450 Km from the Project. The broad-gauge line of Southeastern Railway provides the basic rail link to transport daily two rake loads of washed coal from the pithead at Talcher to the coal handling plant of the Project with a stocking capacity of three-lakhs tones. The make-up cooling water [9,100 cubic meters per hour] for the Project is sourced from Bay Of Bengal Sea and sweet water [600 cubic meters per hour] from the Yeluru canal. The water is drawn from an intake well pump house, located at 700 meters offshore of the Bay of Bengal and anchored at 25 meters below sea level. The intakewell [size; 9100 cubic meters] is the largest offshore well-constructed in India. The two cooling towers of 165 meter height and chimney of 275 meter height are the Asia's tallest structures. Power generated from the Project is evacuated through 400 kV double circuit lines from Vizag to Nunna and Khammam which are owned, engineered and constructed by Andhra Pradesh Transmission Company. NTPC has proven and integrated project management system [IPMS] for implementation of power projects. The system is ISO 9002 certified. A project is reviewed not only against phys-
AUTHOR
Alok Kumar Singh

IIM Kozhikode
Project Management Systems:
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ical progress but cost, material requirement and manpower resource requirement. In order to achieve the Project Schedule dates, NTPC develops three separate networks Master Network, Level -2 networks with the contractors and Level3 networks are developed at project site for construction activities even with the sub-contractors. As a strategy, internal schedules are set upahead of external schedules committed to GOI. In case of Simhadri Project, NTPC project focused on target dates which were generally a few months ahead of external MNW schedule dates. Then, it also set up best estimate schedule [BES] in case it fails to meet the target dates. If target dates were missed, BES dates were invariably achieved. For Example, the following three separate goals were set up for two MNW Schedule dates: [box1]
region monitored the project at least once in Quarter at site. Director Project also reviewed the progress of the Project at site. Apart from this ministry of program implementation also monitored power projects through a flash report generated by NTPC every month.
NTPC project focused on target dates. If it fails to meet the target dates, it set up best estimate schedule [BES], which was invariably met.
Close Monitoring :
Project was closely monitored at various levels. At Project site activities are monitored on daily/ weekly basis with the representative of the contractor/subcontractor working at the site. Every month under Project General Manger, a project review meeting is regularly held at site which is attended by the representatives of site, region and corporate center to review the progress of the project in all areas and disciplines. At Regional Head Quarter, ED of the concerned
[box1]
Critical material follow -up

The project involved dispatch of over 8.5 lakhs dispatch units [DUs] for Boiler alone. Over dimensional heavy consignments like Boiler Drum, Turbine stators, generators, nonmetallic expansion joints and transformers needed special transport arrangement. Most of the transportation was
Goals Schedule Date Best Estimate Schedule [BES] Target
Boiler Hydro Test [Unit #1] May 2001 April 2001 March 2001
Boiler Light Up #1 November 2001 October 2001 August 2001 OPSWorld
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[box2]
Consignment Boiler Drum Generator
Weight . .
Mode Road Rail
From Trichy Hardware
To Site Site
No. of days Unit #1 28 30 Unit #2 24 40
by Road. Most of the OD consignments were through Railways which involved rail clearances from as many as 8 railway headquarters. NTPC in case of Simhadri Project set up a special cell at Regional head Quarter in Hyderabad to monitor, co-ordinate and follow up on day to day basis all dispatches from works of the vendor/ supplier. Such methodology ensured that Project could focus on actual erection/ construction work at site. The comparative time taken for transportation by road and rail for two typical OD consignments are summarized below: [box2]
Application of IT
IT Department at Simhadri Project started functioning as early as January 1999 that is within a few months of the start of the Project office. MCPC, VSAT communication system was established in December 1999. PCs were procured at the early stage and peer to peer connectivity was established. It also installed super-mini computer by April 2000 and extended all local network connectivity, internet and e-mail facilities within administrative building, stores, workshop etc. Thereafter, the Project was fully geared to extensively use IT in the areas such as Finance and Accounts, Material Control, Monitoring of pending material list, Issue of receipt certificates, Verifying and release of payment to the contractor as per detailed terms of payment, Engineering drawings and documentations control at site, Monitoring and reporting of progress at site using MS Project Scheduler. Simhadri is the first project of NTPC where IT is used to maximum extent. In the absence of ERP solutions adopted in NTPC, the Project developed number of application software in all the above areas of IT application.
Monitoring of Commissioning Schedules :

General Manger of the Simhadri Project introduced new project management practices which proved to be very effective for timely commissioning of various system of the plant. In past, the emphasis at site was on monitoring of the erection program based on availability of materials at site and other exigencies. It was generally recognized that that commissioning activities if planned sufficiently in advance should lead to better quality standards and identification of all missing links in the erection front at an early stage for necessary corrective action. As a result, the following four levels of team were constituted to monitor the commissioning activities six months in advance: Commissioning Steering Committee was formed on 02/01/2001 with GM Simhadri as Chairman and concerned HODS at Corporate Centre and Project Sites as Members to provide key decisions and guidelines. Commissioning Panel formed on 26/12/2000, consisting of HODs at the Project to co-ordinate the activities of working panel and in order to remove constraints and provide resources. 17 23 Working Parties formed for various systems consisting of a representative of all the functional departments. The panel met almost daily to plan and reviewed with the progress and program with the contractor. Test Teams were formed for commissioning of key equipment and documentation Control Centre Established The system proved very effective for early commissioning of the plant. OPSWorld
NTPC Manpower Deployment

NTPC deployed minimum manpower for this project as compared to other Projects of NTPC. Average manpower deployed in other projects of NTPC is in average 0.9 per MW. Whereas the actual manpower deployed in case of Simhadri Project was always less than 0.6/MW. Less manpower deployed ensured effective usage of the manpower. More Important NTPC did not recruit new manpower for this Project but re-deployed manpower from other projects of NTPC. NTPC also adopted a strategy of deploying operational staff well ahead of commissioning schedule which helped them to co-ordinate all erection activities from commissioning and operational perspective which in turn ensured early commissioning
Conclusion:
Simhadri Project is an example of sheer operational excellence. NTPC proved that with the existing system , people and skillsets , new land marks can be achieved .
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Recent perspectives on electric power quality
Recent perspectives on
electric power quality
T
AUTHOR
Amol Subhash Dhaigude FPM IIM Indore
The proliferation of sensitive equipment such as electronic appliances, process controllers in manufacture, computing devices and so on during last couple of decades has brought power quality issues to the center stage since break down of such devices, mainly due to transient voltage spikes, sags and swells, caused large financial losses. Besides this lot of important issues such as the cost of poor quality, legal rights to good quality and economics of installation of equipment for power quality improvement are discussed worldwide. The aim of this article is to highlight some of the recent power quality issues, especially relating to Indian context. Since 1960 to till date power system reliability is the prominent area for research for many research scholars. Various reliability indices for example Customer Average Interruption Frequency Index (CAIFI) and System Average Interruption Frequency Index (SAIFI) were developed to quantify power supply interruptions. But till date there is no agreement on whether reliability supplements or complements power quality.
History of Power Quality

The origin of the term power quality is difficult to trace in the evolution of electrical power system. The rise of transformers has overruled early constant current DC distribution systems by constant voltage AC transmission and distribution. The three basic features or qualities of voltage, OPSWorld
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namely magnitude, frequency and sinusoidal waveform were assumed to be inherently maintained uniformly in any power system, and all appliances were designed to operate efficiently while adhering to these three features. With the advent of large power electronic invertors and convertors and adjustable speed drivers gave rise to harmonic current. However the problem still remained steady one. Supply interruptions were considered more from a reliability point of view. Lighting surges and other transient phenomena were still viewed as contributing more to supply reliability than to power quality. The proliferation of sensitive equipment such as electronic appliances, process controllers in manufacture, computing devices and so on during last couple of decades has brought power quality issues to the center stage since break down of such devices, mainly due to transient voltage spikes, sags and swells, caused large financial losses. Besides this lot of important issues such as the cost of poor quality, legal rights to good quality and economics of installation of equipment for power quality improvement are discussed worldwide. The aim of this article is to highlight some of the recent power quality issues, especially relating to Indian context.
Power Quality Problem Resolution Techniques

When the source of the problem is identifies choice of solutions can be developed. Table 2 lists some typical problems and their causes with possible mitigating solutions. Any deviation from the nominal constant frequency sinusoidal waveform can have wide ranging consequences in the entire system operation. Some of the impacts are listed below Table 2: Problems and Solutions
Impact of Deficient Power System

A generalization of the impacts of deficient power quality is difficult, since adequate quality differs for different situations. It can be mentioned in general that harmonic currents flowing in the system increase energy losses. Voltage dips can cause brownouts and blackouts that can lead to large financial losses. Table 3 lists the costs incurred in some typical industries due to one such event of supply interruption. Table 3: Cost of Poor Power Quality
Typical financial losses per event Semiconductor Production 3800000 Industry Financial trading Computer Center Telecommunication Steel Works Glass Industry 6000000 ( Per hour) 750000 30000 ( per minute ) 350000 250000
What is Power Quality?

The simplest definition of power quality is any deviation from the specified magnitude and frequency of the voltage, and its non-sinusoidal content. A pithy and somewhat adequate definition of power quality is offered in IEEE standards 1159 [1]: Any power problem manifested in voltage, current, or frequency deviations that results in failure or mis-operation of customer equipment is based on deficient power supply. But in a nut shell we can infer that Good power quality is not easy to define because what is good power quality for refrigerator motor may not be good enough for todays personal computers or other sensitive loads. For example a short outage would not be noticeably affect motors, lights etc. but could cause major nuisance to digital clocks, videocassette recorders etc.
Metering: poor power quality can affect the accuracy of utility metering Proactive relays: poor power quality can cause proactive relays to malfunction. Downtime: poor power quality can result in equipment downtime and/or damage, resulting loss of productivity. Costs: poor power quality can result in increased costs due to the effects mentioned above. Electromagnetic compatibility: poor power quality can result in problems related to electromagnetic compatibility and noise.
A summary of common Power Quality Problems

Power quality problems can be classified in different ways. One common description is whether it is a transient or a steady state problem. Transient problems need time domain analysis where as steady state one uses a phasor model of the system. Table 1 lists the various types of power quality disturbances. Table 1: Power Quality Disturbance
Power Quality Monitoring and Auditing

Extensive power monitoring and recording of the electrical quantities becomes necessary to trace the source of any power quality problem and design suitable mitigation solutions. Free power quality monitoring services are made available to clients at their premises by utilities like Tennessee Valley Authority (TVA). Latest power quality metering equipments are pressed into action, and field engineers are trained to interpret
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Table 1: Power Quality Disturbance
Categories and Characteristics of Power System Electromagnetic Phenomena Categories 1.0 Transient 1.1 Impulsive 5-ns rise 1-micro sec rise 0.1-ms rise <50 ns 50 ns-1 ms >1 ms Typical Spectral Content Typical Duration Typical Voltage Magnitude
1.1.1 Nanosecond 1.1.2 Microsecond 1.1.3 Millisecond 1.1 Oscillatory 1.2.1 Low Frequency 1.2.2 Medium Frequency 1.2.3 High Frequency 2.0 Short-duration variations 2.1 Instantaneous
<5 kHz 5-500 kHz 0.5-5 Mhz
0.3-50 ms 20 micro s 5 micro s
0-4 pu 0-8 pu 0-4 pu
2.1.1 Interruption 2.1.2 Sag(dip) 2.1.3 Swell 2.2 Momentary 2.2.1 Interruption 2.2.2 Sag(dip) 2.2.3 Swell 2.3 Temporary 2.3.1 Interruption 2.3.2 Sag(dip) 2.3.3 Swell 3.0 3.1 3.2 3.3 4.0 5.0 5.1 5.2 5.3 5.4 5.5 6.0 Long-duration variations Interruption, sustained Under voltages Overvoltage Voltage unbalances Waveform distortion DC offset Harmonics Interharmonics Notching Noise Voltage fluctuations Broadband <25 Hz 0-100th harmonic 0-6 kHz
0.5-30 cycles 0.5-30 cycles 0.5-30 cycles
<0.1 pu 0.1-0.9 pu 1.1-1.8 pu
30 cycles-3 s 31 cycles-3 s 32 cycles-3 s
<0.1 pu 0.1-0.9 pu 1.1-1.4 pu
3 s- 1 min 3 s- 1 min 3 s- 1 min
<0.1 pu 0.1-0.9 pu 1.1-1.2 pu
>1 min >1 min >1 min Steady State
0.0 pu 0.8-0.9 pu 1.1-1.2 pu 0.5-2%
Steady State Steady State Steady State Steady State Steady State <25 Hz 0-0.1% 0-20% 0-2% 0-1% 0.1-7% 0-2-2 pst
7.0
Power frequency Variations
<10 s
NOTE : s=seconds, ns=nanoseconds, ms=milliseconds, kHz=kilohertz, MHz=Megahertz, min=minute, pu=per unit
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the data and recommend remedial solutions. Dranetz was one of the pioneering leaders in power quality measurements and had compiled a large number of power signatures of voltage and current waveforms in a single volume [2]. Many electrical consulting companies offer services at a charge to study potential power quality problems in commercial and industrial establishments. An automobile factory at Pune, India faced poor power factor due to their spot welding machines and utilized the services of an agency for improving the plant power factor to almost 100% [3]. A new term power quality auditing signifies an extensive, all embracing approach to power quality problems that includes the following in a single package. Table 2: Problems and Solutions
Problem Momentary Interruption Description Duration Cause Switching operations interrupting to locate electrical problem and maintain power to your area Effect Equipment trips off, Programming is lost, Disk drive crashes Possible Solution UPS or Standby power supply (SPS) for critical loads Very short 0.5 cycles to 3 planned or acci- sec dental power loss
Site survey Thermograph test Power quality monitoring Analyzing measurement results from electrical and cost point of view Solving power quality problems Giving a comprehensive economic analysis of the solution and its impact
Power Quality Standards

Since latter half of the 1980s, standards organizations such as Institute of Electrical and Electronic Engineering (IEEE), American National Standard Institute (ANSI) and International Eletrotechnical Commission (IEC) and industry voices such as Computer Business Equipment
Temporary Planned or acci- Temporary (3 sec- Equipment fail- System shuts Interruption/Long dental total loss 1 min). Long-Term ure, Contractors down term outage of power in a (Over 1 Min) digging into localized area of underground conthe service area ductor wires, vehicle hitting pole, storms Sag/Swell Brief reductions or increases in voltages 0.5 cycle to 1 minute. Sags or Swell longer than 1 minute are called under voltages or over voltages Major equipment start up or shut down .Short Circuits (faults). Undersized electrical wiring .Memory loss. Data errors. Dim or bright lights. Shrinking display screens. Equipment shutdown . Processing errors. Data loss. Burned circuits boards
Uninterruptable power supply (UPS) for critical loads
Relocate equipment to different electrical circuit within facility, Power conditioners or UOS systems for Critical loads Install surge suppressor at main panel ( best when used in combination with branch circuit surge suppressor) . Use a noise fiber designed for application (sometimes incorporated with surge suppressors). Power conditioners
Surge
Sudden change in < 1 msec voltage up to several thousand volts (also called impulse, spike or transient) Continues distor- Steady State tion of normal voltage
Lighting. Turning major equipment on or off. Utility switching
Noise Harmonic Distortion
. Electromagnetic interference from appliances, machines, radios and TV broadcasts. Harmonic distortion from non linear loads (computer, lights)
. Continuous distortion of normal voltage. Random data errors
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Manufacturers Association (CBEMA), US National Electrical Manufacturers Association (NEMA) have been actively working on developing power quality standards. Standards are helpful to all end users (industrial, commercial and residential) and transmission and distribution agencies achieve some common ground on issues affecting them. Mandatory acceptance of the standards is still left somewhat open to the stakeholders. IEEE 519 and 1159, IEC 61000 Series of the Standards and ANSI C84.1 are documents directly addressing power quality, whereas IEEE colour-coded books such as gray, green, orange emerald and gold focus on specific topics such as grounding, standby supplies and so on for commercial and industrial supplies. In a recent study on power standards in India the conclusion is that Existing norms in India are unsatisfactory and we have to aim at achieving international standards. India was given the lowest rating of 1.85, the rating point being 1 to 6 for poor to excellent position of power supply, by the World Economic Forum in its 1996 reports on Global Competitiveness. There seems to be little or no efforts to develop specific norms for Indian conditions.
The power quality has deteriorated as no standards have been enforced in India. With GoIs Energy Conservation Act, 2001 the trend is set to worsen.
Cost of Good Power Quality

Recent advancements in digital monitoring and control and high capacity power electronics devices are helping alleviate, mitigate or even completely solve many power quality problems. Harmonics are eliminated at the source through use of filters. Line conditioners using active devices can supply the required quantity of supply to any consumer equipment. The root cause of many power quality problems, namely, power electronic devices, in conjunction with microcontrollers and switching logic, helps eliminates all problems of clean and constant power. A good power system designer possesses the analytical ability to mitigate the electromagnetic causes of power quality deterioration with digital control and programmed microcontrollers. An example is the elimination of line current distortion caused due to non-linear and phase controlled loads [4]. The cost of power quality improving solutions still remains quite high in many instances, which can be from Rs. 2500 to few lakhs of rupees per kVA[5]. The question is - Who bears this cost: is it the customer or the utility? have been enforced in India. Moreover Government of Indias energy conservation act of 2001 will increase the use of non-linear loads and worsen the trend. Malleswara Rao et al [7] cite the statistics of power quality problems categorized in terms of customers: Domestic customers (56%) account for the major share of problem followed by commercial (12%), agricultural (11%), industrial (10%) and others (11%) customers. Voltage- related problems are shown to be the major ones with a contribution of almost 92% overall. The voltage regulator is used by majority of Indian as a remedial. As pointed out in the report prepared for the USAID_SARI/ENERGY Program Nexant[8], industry in most Asian countries are now served from standby generation due to poor quality and power shortages, leading to significant environmental impacts and higher energy costs to end users. The report points out the chronic power and energy shortage and notes that the actual power supply position for India as on March 2002 indicates that, at the aggregate level, power consumers in India face power shortages to the tune of 12.6% in peak power (kVA) availability and to the tune of 7.5% in energy (kWh) availability. This situation exists in many Latin American and African countries [9]. The real power quality problem is traced to this ever-widening gap between OPSWorld
Power Quality perspectives in India

The results of a power quality survey on a 33 kV industrial supply system in India are described by Kushare et al [6]. The conclusion is that the power quality has been deteriorated over the last 10 years and that no power quality standards
45

generation and demand, and pointed efforts need to be made to balance environmental concerns and power quality requirements in an economical manner. As Director Ralph van Hof of Ecopower insists, Rules are necessary to guarantee continuity of power supply.[11] References
Legal Aspects of Power Quality

As mentioned earlier, the responsibility for good power quality is still very difficult to assign to any particular party. There are many legal battles underway related to power quality complaints, and it is mostly customer versus utility. The basic question is what the rights of the consumers are with regard to power availability in general and power quality in particular. The Indian Electricity Act of 2003 [10] mentions quality of supply in many of the places (mostly coupled with continuity) but no definition, not even a vague one, is given. Maharashtra Electrical Regulatory Commission (electricity supply code and other conditions of supply) Regulations 2005 contains sections on quality of supply and system of supply, and power/harmonics. It mentions that it shall be obligatory for the HT consumers and LT consumers (Industrial and commercial only) to control the harmonics of their loads at levels prescribed by IEEE STD 519-1992 and in accordance with the relevant orders of the commission. However, dispute resolution procedures are not very clear.
Greening the Power Quality

All attempts to deliver clean power need to focus on environmental concerns. The design of all equipments starting from the energy-consuming ones such as household, commercial, industrial and agricultural need to go back to drawing table, and environmental factors such as efficiency, heating, and waste disposal need to be factored into. As indicated in various reports, conversation efforts seem to be counteracting the power quality standards. While choosing and designing standby power supplies, environmental factors should override cost benefits. Sustainable development needs a long-range perspective. End user power quality problems such as harmonics, voltage sags and transients can be effectively eliminated from leaking into supply grid by many mitigation procedures. The question is that of economics and how manufacturers and end users come to a compromise and give priority to the resulting good power quality and the associated benefits. The standby supplies have to be designed from an all-encompassing point of view of conversion, environmental preservation and clean power. In the Indian context, stronger norms and standard specific to the situations existing here need to be set. The electricity acts and regulations must protect the interest of all consumers. OPSWorld
1. Standard Handbook for Electrical Engineers, 14th edition (1999) New York: McgGraw Hill 2. Draenetz-BMI (1997) The handbook of Power Signatures, 2nd edition 3. http://www.electricalmonitor.com/ArticleDetails. aspx?aid=743&sid=1 4. Cobben J.F.G. and Casteren J.F.L. van (2006) Classification methodologies for power Quality. Electrical Power Quality and Utilization Magazine II(1): 11-18 5. Doughetry J.G. W.L. (1997) power Quality: A utility and industry perspective. Proceedings of the IEEE 1997 Annual textile, fiber and Film Industry Technical Conference, 6-8 May 1997, pp 1-10 6. Kushare B.E., Ghatol A.A., and Date T.N. (2007) Power Quality survey of 33 kV Indian industrial supply system: Results and Remedial Actions. International Power Engineering conference, 3-6 December 2007, pp 320-325 7. Malleswars Rao A.N., Ramesh Reddy K. and Sanker Ram B.V. (2010) Economic Aspects of PQ Disturbance in India. International Journal of Advanced Engineering Sciences and Technologies 10(1), pp 76-81 8. Economic impact of poor power quality on industry: Review studies. Report prepared for USAID_SARI/Energy program, Nexant, November 2003. 9. Nicolas R. and Estsva M. (2011) Why there is poor quality of service in electrical power systems and what to do to stop its propagation. CONCAPAN XXXI, IEEE, Section EI Salvador EI Salvador, November 2011. 10. Ministry of Law and Justice, Govt. of India (2003) The Electrical Act, 2003 New Delhi: Legislative Department, Ministry of Law and Justice, Govt. of India. 11. Rules Are Necessary to Guarantee Continuity of Power Supply. Disdag, 31 January 2012 08: 12
Bibliography
1. Baggini A 9ed.) (2008) Handbook of power Quality. Chichester, UK: John Wiley & Sons Ltd 2. Fuchd E.F. and Masoum M.A.S. (2008) Power quality in Power systems and Electrical machines. London 3. Kusco A. and Thompson M.T. (2007) power Quality in Electrical Systems, McGraw Hill. 4. Singh L.P., Jain S.P. and Jain D.K. (2009) Power Quality related consumer Rights in Indian Electricity Market. IEEE Electrical Power & Energy Conference, 2009.
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de design, calicut
ANSWER
Across 4 Diverts attention on Highways, Japanese (6) 5 ___ Armstrong and a famous audio equipment manufacturer (4,2,4) 6 Imbalance, Japanese (4) 8 The Father of SCM (3,3) 9 Christened the word Supply Chain Management 11 Cleanliness is next to Godliness, Japanese (5) 12 Credit 4$, Debit 6$, function, (7) 13 Mistake proofing, Japanese (4,4) 15 Lock, Stock and 2 smoking ____, synonym (4) 16 Counter Strike Condition Zero version (4,4) 17 Beep on radar, used to measure variability in operations (8,6) Down 1 Time of work, again and again (4,4) 2 Important character in The Goal1, _____ Reloaded (6) 3 Bombay->Pune->DelhiPatna, Still couldnt sell an Indigo Marina (10,8) 6 It was never meant to work the right way, because it had to (6) 7 A team of 5, with 4 free riders (6) 10 Child Genus, anagram (10) 14 Deadly Manifestation About Insignificant Crap, acronym (5)
OMEGA, IIM KOZHIKODE | OPSOC, IIM BANGALORE | OPERATIONS SPECIAL INTEREST GROUP, IIM CALCUTTA KAIZEN, IIM INDORE | OPERATIONS INTEREST GROUP, IIM LUCKNOW | OPEP, IIM RAIPUR | OPERATIONS CLUB, IIM RANCHI | OPERATIONS CLUB, IIM ROHTAK | OP-ERA, IIM SHILLONG

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psworld

A pan IIM Operations Magazine

Indian Institute of Management -Raipur

Prof. DebashisChatterjee Director, IIM Kozhikode

Supply Chain Management in Healthcare

Chain Management in Healthcare

Anurag Gupta IIM Lucknow Anurag Singh IIM Lucknow

Supply Chain Management in Healthcare

Supply Chain Management in Healthcare

Sample size = 204; Source: 2009, Nachtman and Pohl OPSWorld

Supply Chain Management in Healthcare

Figure 2: A healthcare supply chain configuration.

and Surgical Supplies CMedical Devices CPharmaceutical

CWholesalers CDistributors CGPOs

CHospitals CIDNs CPhysicians CClinics CPharmacies CNursing Homes

Source: Burns, 2002

Healthcare Supply Chain

Integrated Supply Chain in Healthcare

Supply Chain Management in Healthcare

Supply chain integration

allocation of authorities and responsibilities optimisation

on individual processes Phase 1

Supply Chain Management in Healthcare

Supply chain integration within healthcare is a complex social process change

Best practices of Healthcare Supply Chain

Supply Chain Management in Healthcare

Recommended Best Practices

Transportation & Logistics

Procurement and Contracting

Using RFID technology

Revenue-Cycle Management System and Decision Support System

Information Sharing & Collaboration/Cooperation

Supply Chain Management in Healthcare

Supply Chain Challenges in IOL & Gas Industry

Chain Challenges in IOL & Gas Industry - Indian Context

Anubhav Sood IIM Raipur

Supply Chain Challenges in IOL & Gas Industry

ISSUES FACED IN SUPPLY CHAIN MANAGEMENT

Supply Chain Challenges in IOL & Gas Industry

Supply Chain Challenges in IOL & Gas Industry

Towards better Maintenance The experiment with Defects

Towards better Maintenance The experiment with Defects

Towards better Maintenance The experiment with Defects

FACTORS FOR SELECTING MAINTENANCE MODULE:

Towards better Maintenance The experiment with Defects

UNUSUAL DEFECT WITH RECURRANCE (I-R-D-P-E-M-A-M0D-12EV):

GENERAL CASE (I-R-D-P-E-F-R):

CONDITIONAL CASE (I-R-D-O-P-E-F-R)

UNUSUAL DEFECT WITHOUT RECURRANCE (I-R-D-P-E-M-A):

Site Identification for new AIIMS-like Institutions based on Network Analysis

Site Identification for new AIIMS-like

Institutions based on Network Analysis of similar existing facilities

Neeraj Gupta IIM Lucknow Mukul Kaura IIM Lucknow

Site Identification for new AIIMS-like Institutions based on Network Analysis

Site Identification for new AIIMS-like Institutions based on Network Analysis

As on 1.4.1996 Sub-Centers (Normalized) Connectivity Score

7894 175 7284 7793 5094 9725 79 8681

0.81 0.02 0.75 0.80 0.52 1.00 0.01 0.89

0.81 0.01 0.25 0.20 0.12 0.13 0.00 0.41

Figure 2: Ease of connectivity with medical facilities

Site Identification for new AIIMS-like Institutions based on Network Analysis

Figure 4: Persons hospitalized during last 365 days

City Solapur Pune

http://chennaicorporation.gov.in/budget/budgetImages/20 11-12.pdf http://vellorecorp.tn.gov.in/

Calculate N, Q and Qmiri using mathematical relations given above.

If TC(N1, Q)>TC(N2,Q) Ner=N1 Ncr=N1

q=Q/Ncr; qcr= round (q) Qcr=qcrNcr;