ITC Agri Business Division - eChoupal


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ITC Agri Business Division - eChoupal

  1. 1. Meeting with ITC Agri Business Leadership ZUBIN POONAWALLA 1
  2. 2. Accelerating Investments in India Building Assets for the Future • ITC has charted an investment programme of nearly Rs. 25,000 crores over the next 5-7 years in support of the need to raise the pace of investment in the Indian economy. • At the current moment over 40 projects, large and small, are in various stages of implementation cross the country. ZUBIN POONAWALLA 2
  3. 3. Agri Commodities & Rural Services • Farmer empowerment through e- Choupals • This initiative now comprises about 6500 installations covering nearly 40,000 villages and serving over 4 million farmers. • Over the next 5 years it is ITC's Vision to create a network of 20,000 e-Choupals, thereby extending coverage to 100,000 villages representing one sixth of rural India. ZUBIN POONAWALLA 3
  4. 4. Choupal Saagar & Pradarshan Khet • 24 'Choupal Saagars' have commenced operations in the states of Madhya Pradesh, Maharashtra and Uttar Pradesh. ITC is engaged in scaling up the rural retailing initiative to establish a chain of 100 Choupal Saagars in the near future Choupal Pradarshan Khet • To help farmers enhance farm productivity by adopting agricultural best practices. Started in 2005-06, This initiative, has covered over 70,000 hectares and has a multiplier impact and reaches out to 1.6 million farmers. To reach out to 4 million farmers ZUBIN POONAWALLA 4
  5. 5. Choupal Haat ITC – ABD in its 2nd year has successfully been able to conduct 6000 events in 4 states – Uttar Pradesh, Madhya Pradesh, Maharastra and Rajasthan, reaching almost 5 million consumers. The plan is to scale up these events from existing 100 districts to about 500 districts in other states to be able reach 20 million consumers ZUBIN POONAWALLA 5
  6. 6. Competitive Advantage ZUBIN POONAWALLA 6
  7. 7. Business Process Excellence - SOPs • Standard Operating Procedures for ITC Agri Business is continual process • Process Innovation started : 2005, ending 2012 (Kriya – implementation stage, through games, quiz, prices, etc) • SOPs in place : 100 (developed over 20-30 yrs), Scope: 8 states, 150 hubs, 250 Warehouses, 900 people • Operations team : Warehouse (250 x 3) avg age (25-28), 300 field personal, 25 supervisors, 50 senior personnel, 25-30 people at HQ • Technology: SOPs exist on internal servers, plan for tablets to be given to teams at operation level for following processes • Audits : Operational Audits by Audit committee every year, period (4-5 months), Risk based Challenges : • Operations teams to understand purpose and objective of SOPs, the awareness (maybe skills training required) • Are there best practices which can be innovative and simpler to follow • Gap in implementation and following the SOPs • Better ways for SOPs to be followed if they are linked to KRAs • Monitoring compliance of SOPs • Common Practices to enable multiple service offering through Sustainable value platform (choupal haat) • Goal : to develop and increase market service and explore opportunities through same channel – Choupal Haat • Goal = “Supply Chain Efficiency” and best practices/benchmarks across ITC Agri Business ZUBIN POONAWALLA 7
  8. 8. Summary of Discussions • Audacious goals and targets for the management • Scalability of existing agri services / initiatives • Visibility of current initiatives / projects • Constant follow up and review of progress • Not enough time for research and trends • Process innovation at each business line • Using existing platform to extend more value add services to rural markets • Resource management and accountability • Multitasking ZUBIN POONAWALLA 8
  9. 9. Challenges • Scale up several times • Lots of projects to be managed • Constant follow up and reviews (fire fighting) • Little time left for learning/upgrading • Resource contention ZUBIN POONAWALLA 9
  10. 10. ActionsCriteriaObjective (Quality, Speed, Economy) Scale up with lots of project to be completed Apply a lot of management attention Constant review and follow up on every project Complete more projects on time in full with in the agreed budgets Prioritize and focus on selected few Solving The Core Management Dilemma…. Conflict How can we take on aggressive targets, yet achieve them reliably? ZUBIN POONAWALLA 10
  11. 11. Dilemmas aren’t conflicts between right and wrong; they are conflicts between two rights - Georg Hegel ZUBIN POONAWALLA 11
  12. 12. Fundamental Assumption • The current state of any organization is an effect of the decisions of human beings. • The main thing that is controlling the rate at which a company grows and it’s strength and stability, is how much attention Top Management can put on 1. The quality of the decisions they make 2. The speed they can respond to issues inside and outside of the company. ZUBIN POONAWALLA 12
  13. 13. Fundamental Assumption “Management Attention” is the true constraint of most organizations ZUBIN POONAWALLA 13
  15. 15. The challenge of managing multiple projects, through functional resource management, is made more complex under the influence of uncertainty.ZUBIN POONAWALLA 15
  16. 16. Recommendations • We must recognize that the most valuable problem to solve is the overloading of Management ( Initiatives Chart ) • We must create a management system to address all these initiatives from the corporate • In order to effectively manage and have control over the initiatives. We must projectize, prioritize and identify resource constraints. • Early warning signals must be available to make sure decisions are made swiftly at all levels • Implement methodologies, system and tools to better manage initiatives and focus to scale up with better resource utilization. • A 6 week pilot implementation on any one of the service offerings ZUBIN POONAWALLA 16
  17. 17. Multi-Project Dashboard Top Management ZUBIN POONAWALLA 17
  18. 18. This can be explained with an example (Another real life case) Notice the number of projects in parallel ZUBIN POONAWALLA 18
  19. 19. Which contains a sample of staggered final assembly plans with same dispatch dates Staggered starts will cut bad-multi- tasking Formalizing them will cut bad- multi-tasking in E, P & component/ subassembly Manufacturing also Some Early finishes will cut pressures on Quality & Safety Fewer concurrent final stages will enable better focus on Quality & Safety ZUBIN POONAWALLA 19
  20. 20. Single Project Monitoring The project progress trend is plotted on the graph Projects status colors are assigned based on the status on the graph Chain Completion % = (Original Chain – Remaining Chain)/ Original Chain x 100 Buffer consumption % = (Buffer Consumed)/ Original buffer x 100 ZUBIN POONAWALLA 20
  21. 21. COO Agri Services Head Area Manager (Agri services) Hub Incharge Field supervisor Hub Incharge Area Managers Area Managers Manager Rural Marketing New Initiatives Head Agri specialists Managers Sanchalaks Level-1 Level-2 Level-4Level-3 Level-5 Systematic escalation through the system ensures stable priorities ZUBIN POONAWALLA 21
  22. 22. Let us Now Summarize the CCPM Way of Managing Projects CCPM Planning Multi-Project Cut bad multi-tasking Project priorities Release control Single Project Cut Students’ Syndrome Cut Parkinson’s Law Cut Integration losses Execution Task Management Uniform, Stable Priorities Resource assignment Reporting Remaining duration Escalation/ troubleshooting Relay race Advance preparations Completion criteria Project Control Status measurement Buffer Recovery POOGI Reporting Causes Focusing Improvements ZUBIN POONAWALLA 22