Chanakya's '7' Pillars For Textile Mills
The World’s First Management Guru
Chanakya, also known as Kautilya, lived from 350 to 275 B.C. and remains relevant in today’s business world. As an advisor to the emperor Chandragupta Maurya, he was pivotal in establishing the Maurya Empire. His renowned work, the Arthashastra, covers governance, economics, and military strategy. Chanakya was a scholar and a kingmaker who understood the intricacies of power and leadership. His teachings highlight the importance of strategy, ethical leadership, and continuous learning. He emphasized adapting to change and leveraging alliances, which are vital for modern businesses. His insights into decisive action and practical wisdom offer valuable lessons for today’s leaders. Overall, Chanakya’s timeless principles continue to guide those navigating complex challenges in the business landscape. Would you like to delve into specific concepts from his teachings? So I tried to apply his ” 7 Pillars for a Successful Kingdom” to our Spinning Mills.
7 PILLARS” FOR THE SUCCESS IN A TEXTILE MILL
Swamy
Managing Director
Amatya
Manager
Danda
Team
Durga
Mill
Kosha
Finance
Janapada
Customers
Mitra
Mentor
Swamy - Managing Director
A. Identifying your role
Start by evaluating the leading competitor in the industry and organise your findings accordingly. As an example…
S. No | Description | Your Company |
1. | Infrastructure | Ok |
2. | Raw Material | Ok |
3. | Production | Not Ok |
4. | Quality | Ok |
5. | Human Relations | Ok |
6. | Administration | Ok |
7. | Marketing | Ok |
When compared to the leading company, your production department seems less robust. It is important to thoroughly analyze all aspects with the production team and implement corrective measures according to a defined timeline and action plan. As an entrepreneur, it may doubt, whether you have the same entrepreneurial spirit or expertise as the founders. Navigating the complexities of the business can be tough if there is no proper training and experience. Therefore, select a role that aligns with the company’s needs and avoid taking on titles such as Executive Director, Technical Director, or Joint Managing Director for the next few years.
B. Your Approach
When tackling a problem, your method matters more than anything else. Keep your questions to the team straightforward and clear. If a mistake occurs, ask them to outline the steps that they will take to prevent its recurrence. Instead of just questioning the team, engage in a conversation to resolve issues collaboratively, leading to better solutions. Adopt a systematic approach and stick to a set work schedule. When someone tries to escape, without running away firmly grasp their hand, but this may be uncomfortable for them. To prevent this and maintain a connection, gently hold their hand with a sponge.
C. Your Resposibilities
If you are a new entrepreneur, it’s essential to harness your team’s knowledge effectively. To do this, you need to implement a concept-based approach. Instead, if you work with your knowledge, you are a scholar only and not an entrepreneur!
2. Amatya - Manager A. Manager's Role
A Manager in a company plays a crucial role in the following
- Management Representative
- Maintain a smooth relationship between Management and the workers
- Process Handling
- Maintaining a good dedicated team and guiding the team
- Leading the organisation
3. Danda - Team
A. Importance of a Team
A team in an organisation plays a vital role in achieving the company’s goals. So Entrepreneurs need to create a good team and give importance to them. In the organization, one eye represents the system, and the other for the team. A dedicated team can avoid single-person domination, knowledge gaps, and investment failures. However, Entrepreneurs should lead the team using a “divide and Rule” strategy.
4. Durga - Mills
Raw Material Cost
First, the Entrepreneur should clearly understand the needs of their customers. Then, they should identify the key attributes of the necessary raw materials. Providing lower-grade raw materials without notifying the team will lead to expensive process parameter choices, resulting in higher manufacturing costs or lower product rates due to compromised product quality. Whether you aim to reduce the losses or increase the profits, remember that your market value can be affected either way.
Power
In a Spinning mill, Power costs take the top spot in manufacturing expenses. For instance, a Spinning mill with 10000 spindles producing 40s count would incur an annual electricity cost of 6.00 Crore rupees. Reducing the UKG from 4.50 to 4.40, we can save 13.30 Lakhs rupees per annum. This can be achieved without investing in power-saving measures. By monitoring all department power consumption, we can save at least 10.00% in power without requiring investment.
Employees
Since ‘work culture’ plays an important role in process quality, the topmost priority is work culture. Proper training is to be provided for all department employees to improve overall productivity. Element-wise work audits will be conducted for all employees. This auditing system will identify the areas where employees need training for improvement. Navigating interactions with people demands sensitivity and a clever, disciplined strategy. When addressing human-related matters, remember to speak less and listen more.
Staffs
As your employees engage in knowledge-based tasks, you make them work more efficiently with appropriate systems and monitoring. Instead of depending solely on someone to complete a task, establish a procedure to ensure that the task is completed. By doing so, you can maintain trust in the person while also providing the task gets done. If the management of a mill is effective, the mill will certainly face significant failure within a few years.
Machinery and Accessories
Before renovating or upgrading your current machinery, make sure that you have fully utilized the potential of the existing equipment and accessories. Verify the production and quality status of the machines that need replacement. Once you have reviewed the report and assessment, discuss with the core team for further proceedings. When planning for a renovation or upgrading machinery, the investment should yield all benefits like quality, production, and productivity. Avoid investing solely for one benefit, as incorrect investments can lead to significant setbacks for a company.
Packing Materials
Numerous Spinning mills need to learn the significance of packing materials. Despite producing high-quality products, some companies unknowingly cause quality issues for their customers by using substandard packing materials. More than simply producing quality yarn and using good packing materials is required. It is equally crucial to monitor the dispatches. Interacting with a load man can save lakh and lakh rupees.
5. Kosha - Finance A. Income and Expenses
Market
Income
- Yarn revenue
- Process waste revenue
- Scrap revenue
Expenses
- Raw Material
- Electricity
- Packing Materials
- Machinery Maintenance and Electrical Maintenance
- Wages and Salary
- Administration
- Interest & Repayments
- And Others.
Costing
Raw Material Cost
Make sure to select the right raw materials based on your customer’s needs. Minimize the waste generation, but it should not disturb the yarn quality Control the Invisible Loss
Power Cost
Compute standard Units per Kilogram. Monitor the daily unit consumption and find out in which department is going high, if there is a higher consumption.
Wages Cost
Calculate department-specific wages per kilogram and determine the standard overall wages per kilogram. Keep track of the daily wages per kilogram and find out the reasons whether it is due to excessive worker engagement or low production in a specific department.
Accessories Cost
Establish a monthly budget for accessories and review it regularly to identify high-consumption items. This will enable you to implement cost-effective measures in collaboration with your team.
Packing Cost
Calculate the standard packing cost for each product to determine the monthly standard packing cost. Compare it with the actual consumption to identify the reasons behind the increased packing cost. In general, the packing cost is higher due to the following
- Inferior material quality
- Quantity shortage
- Material handling
- Defective Machinery
6. Jana panda - Customers
Importance of Marketing
Those who focus on marketing activities, navigate their industries successfully, even during challenging times. On the contrary, those who neglect marketing, struggle to sustain their business and may eventually have no choice but to exit the field.
Product-Mix and Market Share
The product mix needs to match our customers’ needs. Your mill’s productivity, financial structure, and geographical share.
Value Additions
Continuously relying on a product mix is like a farmer waiting for rain. Success only comes from embracing innovations.
7. Mitra - Mentor
Importance of a Guide
The investor needs to identify the specific department in need of guidance. The guide should enhance the skills of employees in that department to align with the organization’s growth. Providing one guide for all departments, such as manufacturing, energy conservation, finance, marketing, and product development, yields only positive outcomes for the organization. So apply “Chanakya’s Seven Pillars for a Spinning Mill” to your company and reap mega success!
