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Need Assessment Survey Report Interactive Design ResearchBand 2 Of Bhubaneswar Agro Processing Cluster Sponsored by “Design Clinic Scheme, Ministry of MSME, Govt. Of India” Under an Agreement with National Institute of Design, Ahmedabad, the Implementing Agency, and Central Toolroom and Training Centre, Bhubaneswar Prepared by Dr. N. P. Gantayet, (PhD) and Prof. S. K. Nanda (Retd Prof OUAT) November 2013 120, Madhusudanagar, Bhubanesar-751001, Phone 06742390311, mob: 09937631559 www.thermo_orissa.com; e-mail: [email protected] , [email protected] , [email protected]

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Page 1: Interactive Design Research Band 2 Of Bhubaneswar Agro ...designclinicsmsme.org/download/DesignAwareness...Of Bhubaneswar Agro Processing Cluster Sponsored by “Design Clinic Scheme,

Need Assessment Survey Report

Interactive Design Research—Band 2

Of

Bhubaneswar Agro Processing Cluster

Sponsored by

“Design Clinic Scheme, Ministry of MSME, Govt. Of India”

Under an Agreement with National Institute of Design, Ahmedabad, the Implementing

Agency, and Central Toolroom and Training Centre, Bhubaneswar

Prepared by

Dr. N. P. Gantayet, (PhD) and Prof. S. K. Nanda (Retd Prof OUAT)

November 2013

120, Madhusudanagar, Bhubanesar-751001, Phone 06742390311, mob: 09937631559

www.thermo_orissa.com; e-mail: [email protected], [email protected], [email protected]

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ACKNOWLEDGEMENTS First of all the author wishes to thank the individual entrepreneurs of Farm Enterprises units for

their excellent cooperation, patience, and enduring the questions put to them.

We owe special thanks to Mr. Swaraj Mahanti, who organised most of the visits and took us

round to meet key officials in Ranpur and Bhubanesar, Thanks are due to him for organising the

meetings with farmers, Agri entrepreneurs, and SH Cooperatives in that area.

Dr. Mahendra Mohanty, Associate Professor, CAET OUAT has provided valuable inputs in Food

Processing. Dr. P. L. Pradhan, Associate Professor, deserves special mention for making much

of the material for cluster level analysis, and sharing his experience with farmers. Prof Mohd

Khalid Khan and Prof. Debaraj Behera have provided the latest Research trends in Agro

Processing and Farm Machinery from their work and lecture notes.

We express our thanks to co-designer Er Pragati Rout. Shri Saroj Jena and Shri Jyoti Behera

deserve special mention for providing assistance in graphics and drawing.

Mr. Ambuj Nayak, Head Marketing, CTTC has not only accompanied in the visits, but has gone

out of the way to help and see that the NAS went on smoothly. Shri S S Dhada, Asst, Director,

PIB, has given many valuable inputs in Communication. He is not only a friend, but a patient

teacher as well about usefulness of media in Agriculture. My special thanks for getting material

translated into Odiya and getting the Press Release that has made the NAS a mite easier.

Thanks are due to Mr. Ashok Mondal from NID, Co-ordinator, East Zone, DCS, and Prof

Sashank Mehta, Head DCS programme from NID provided guidance and patience throughout

the survey. Thanks are due to also Shri Sibasis Maiti, GM CTTC, for not only his advice and

experience, but facilitating the smooth conduct of the NAS, and the imminent workshop. Funds

from the Dept of MSME for the grant portion are gratefully acknowledged. Lastly, thanks are due

to officials who were visited and have extended support and inputs for deeper understanding of

the cluster in the Region.

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LIST OF PARTICIPANTS IN THE NAS

Sl No Name Products (Agriculture Produce and Services)

Contact Address

1 Sri. Swaraj Mahanti Horticulture, Custom Hiring Services

Ranpur, Nayagarh, Mob 9937340776

2 Sri. Manoranjan Singh Custom Hiring Services Village Beraboi, Delanga, Puri, (Mob: 9937280609)

3 Sri Samarendra Singh Custom Hiring Services Kusupur, Gop, Puri (Mob: 889596166)

4 Sri Bipin Khatei Paddy, Custom Hiring Services Bindha, Pippili, Puri (Mob: 9437178626)

5 Sri Dhussan Rout Paddy, Custom hiring Services Kakudikosanga, Pipiili, Puri

6 Sri Kishore Rout Custom Hiring Services Auduspur, Jajpur

7 Sri Arun Kumar Panda Custom Hiring Services Kalamatia, Bari, Jajpur (Mob: 9658570193)

8 Sri Pabitra Baral Custom Hiring Services Nauagaon, Dhenkanal

9 Sri Bhibu Mohapatra Custom Hiring Services, Contract Farming

M/s Bioworld

Satya Nagar, Bhubaneswar

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INTRODUCTION “The most happening event in Union Budget 2013 was that it was a non event.” This is how an

analyst described the Union Budget. Four events were given to justify calling the Budget a non-

event: (1) The current UPA government did not have any source of funds to finance the

promises (sops) given to electorate, and the money had to be thinly spread, (2) government was

leaning to the left leaving the centre fold (manufacturing-the wealth generator?) to others, (3)

money from budget heads of the previous year were taken out to finance Budget commitments,

(4) the budget did not matter. The happening event was the last illusion of a government, not

sure of its chances, to hold onto power at all costs. (TOI, Mar 01, 2013, Union Budget Special)

Only the last has some truth in it. It is a timeless truth; which government would not do anything

(legally) to stay in power? In the event, the one thing that overturned the analysis on its head

was Murphy’s Law; “if anything has to go wrong, it will go wrong”. An external threat turned the

misreading of the past into a prophecy for the future.

Dollars took flight, causing manufacturing to slump (as against reason no 3 of the UPA

government deserting production by withdrawing money from previous commitments).

The Rupee’s purchasing power fell due to widening Current Account Deficit, inflation

shooting up, and Consumer Price Index touching the roof, (as against reason no 1 of

spreading the budget very thin to finance election sops).

Government leaned to the left with Food Security Act, because Agriculture was the only

sector left after manufacturing failed to deliver growth, jobs, and security due to falling

export demand (as against reason no 2 of leaving the centre fold to someone else).

RBI Governor Raghuram Rajan increased liquidity, offered to swap dollar deposits, took

steps to increase rural credit, adjusted cost of the Rupee upwards in internal borrowings,

and enabled Rupee investment in Agriculture supply chains. Government allowed 100%

FDI in Retail (as against reason no 4 that the Budget did not matter.)

Given the facts, ceteris paribus, prediction of analyst was reasonable. These events happened.

What upset his reasoning was Future Shock. The future came up suddenly, and not in the

expected sequence. (Notice the change in order of events as it unfolded against prediction).

This underlines the advantages of Design Thinking against Analytics Thinking. Synthesis is the

task of Design Thinking. Design lives only in the present, and thus achieves timelessness.

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As Wittgenstein said, “If we take eternity to mean not infinite temporal duration but

timelessness, then eternal life belongs to those who live in the present.” This is true for Design

Thinking as well as for Agriculture, whose timelessness goes back beyond remembered history,

and would outlive the rise and fall of many civilisations yet to come. The analyst needed only to

have looked into the events of the present to overcome Future Shock, by unlearning and

relearning. If the TOI Press clipping (given below) has to be believed, the Govt. of Odisha was

unlearning its recent past and relearning to live in the present.

A DAP seminar on Agro Equipment cluster on Feb 22nd, 2013, independently highlighted these

same issues as in the averments made in TOI in the Press Clipping given above. This event

was followed by the Union Budget-2013 on Feb 28th, 2013. The Union Govt. was preparing a

significant agenda for GDP growth, and put all its eggs into Skill Development basket as the

vehicle for jobs, GDP growth, economics, and winning elections 2014. Union Budget was also

preparing the ground for a long overdue Agriculture Reforms to look upon it as a market rather

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than as a production activity. A market is an efficient system for distribution of entitlements if it

has norms. It was a major shift in paradigm, to keep a “people centric” approach and come out

of the feudal caste based system that was unable to provide economic and social security.

The seminar highlighted key issues that faced Agriculture market.

With more than 60% people dependent on Agriculture, the major challenge is distribution

of the wealth created, whether from the surplus from Agriculture or mining

MSME have a role to play in the equitable distribution of surplus and Resource allocation

Farming had become women labour intensive, creating a new set of issues in Resource

allocation. Approaches had to be Gender Sensitive, bottom up.

Labour cost had gone up, and were not available in the numbers required; women would

not travel more than 2 kms from their homes in search of work even if they forego wages

60% of farmers belonged to SMF category, 1-2.5 Ha. More than 90% of farming was

powered by animal energy and human labour.

This DAP of Band 2 was tied with a DAP (Band 5) of the Agriculture Equipment cluster. Apart

from the fact that both the clusters had participated in the seminar and found common ground,

there are other reasons why a tied DAP (NAS and Workshop) was considered as necessary.

Systematic Agriculture is associated with tools, and is a mark of civilisation’s progress.

The other theatre of civilisation’s progress where tools developed was in fighting wars.

Equipment manufacturers and users were decoupled due to a variety of reasons, which

could be addressed only by a joint effort and finding common meaning

The Odisha Agricultural policy unveiled three months after the DAP seminar, but before

this NAS, was committed to market (enterprise) approach after the Food Security Act.

It had, in fact, gone one step ahead by selling rice at Rs 1 per kilo at the cost of state

exchequer with the message of increasing “worker” productivity

This NAS report for Agro Processing cluster is a sequel to the NAS report of Agriculture

Equipment cluster. The NAS would use the same premises of Design Thinking as the previous

report. This would assure that voices on both sides of the divide are heard by either.

Methodologies used are given briefly, and the reader is referred to the other report for details.

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OBJECTIVE AND ACHIEVEMENTS OF NAS For the cluster, the DCS programme offers an opportunity to become corporate. Cluster players

in the NAS list are all erstwhile farmers, who have also developed Custom Hiring Services to

outsource spare capacity. Agro Processing/Food Processing is an emerging field in the state,

started recently by Odisha Food Processing Policy 2013 that is linked to Odisha Agriculture

Policy 2013. The cluster knows about business, but awareness about corporate functioning is

rather poor. Farming as an occupation has its own hazards. The vagaries of Nature, the

uncertainty of markets, and changing priorities of politicians, can be very daunting. When

compounded with risks of business, these factors can deter anyone from going corporate.

The overall objective of the DAP was adopted as follows:

Objective: To become a body corporate of appropriate design for maximising individual growth

from opportunities thrown up by the enabling environment Agriculture/Food Policy

The objective aligns very well with Agriculture Policy and Food Processing Policy that views the

sector as a market. But it would take time to seep into the target group (farmers) to call

themselves as entrepreneurs and farming as an enterprise. Policy makers are aware of this,

and hope to bring about change through intense extension activities. The Policy envisages that

the linkages would function better than a departmental approach, especially by involving private

enterprise. Enticements include PPP, and of course, liberal execution drivers for growth of

MSME in the sector such as investment subsidy, lower interest, Skill Training, diverse methods

of information sharing, credit availability, market assistance, social security of workers, etc.

Achievements 1. Awareness to make appropriate choices in technology and investment by making best

use of Design Thinking and use of Natural Resources

2. Awareness about importance of Skill Development process as an effective enabler in

taking up Remedial Designs and New Product Introduction

3. The importance of extended Enterprise Social Responsibility by forming a cluster for

dissemination of best practises and adoption of new techniques/methodologies

4. To make Value Added goods for improving viability of composite farming and processing

5. Change in behaviour to keep with esprit of Policy towards a demand based approach

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CLUSTER HISTORY AND PRESENT SCENARIO The cluster has just started to form and is in nascent stage. The DAP seminar on Feb 22nd 2013

was the first bold attempt to identify it as a cluster within meaning of the definition of Cluster

Development Approach of DC-MSME, GOI. This was to bring the benefits of the Cluster

Approach to the region. There had been an earlier effort by Govt of Odisha to encourage

formation of Agri Enterprises by creating APICOL, and creating Custom Hiring Centres under

the aegis of the Govt. Such efforts got the Ganjam, Rayagada, Koraput, and Bargarh Rice Mill

clusters into the first list prepared by UNIDO in 2000, and Spice Cluster in several other districts

like Cuttack, Kandhamal, in subsequent lists.

The DCS programme (DAP Seminar) had been used earlier (2011) to identify Khadi cluster,

which incidentally carried the Food Processing burden, inter alia, KVIB and PMERY. According

to figures given in Food Processing Policy 2013, there were 24,811 enterprises (mostly under

SH Cooperative Act + EM1 under MSMED Act) with employment of 1.3 lakh and investment of

Rs 1,519 crores. Investment would jump many fold by policy incentives to encourage growth

through MSME (EM2). Projects already cleared stood at Rs 1,335 crores. Resources to this

sector (feedstock) would come from Agriculture products grown in the state, including food grain

production (around 86 lakh tonnes), livestock, dairy products, fisheries, and Forest Resources.

So this cluster around Bhubaneswar and other clusters belong to unorganised sector and have

just started writing their history. But the roots go deep, and its progenitors are as old as the

beginning of civilisation marked by use of tools in Agriculture.

A brief History of Agriculture in Odisha would be too long to write about. The State Agriculture

Policy 2013 is the best view one can get of the history of Agriculture, as it endorses and enables

practises that has evolved through generations. It has a Postmodernism view of Agriculture. It

cannot be otherwise. An average land holding of 1.25 lakh Ha, 93% of it powered by Animal and

Human energy, mostly rain fed irrigation, and an inadequate distribution system, shows that

modernity would have uncontrollable downside effects. A “people centric” approach by building

on previous efforts of governance systems like Watershed (since 2000), and society building

(social engineering) by increasing “organisation” density is not only necessary, but should be

mandated in any Policy for this sector.

Design Thinking can be used as Occam’s razor to cut out histories of the cluster that are not

relevant to Design Point of view. This is easily done by using Design Thinking to analyse only

those portions of the Agriculture/Food Policy applicable to MSME Units under focus in this NAS.

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METHODOLOGY From a Design Point of View, Policies are looked upon as “degree of freedom” for maximising

certain variables such as growth, ROI, revenue, wages, market share, etc. using Design

Thinking as an objective function. It is similar to being given an outline of a story, and being

asked to develop a plot and write a script for dramatic impact with a view to generate

commercial value. The methodological issue for Food Processing Policy analysis in the “eyes”

of Design Thinking is to remain within mainstream economic thought that underlies the Policy. A

collateral objective was to also satisfy the DAP MSME participant’s objective given on page 6.

Mainstream economic thinking as maybe known from the events of the last three months

appears to be “rural wages would drive wealth creation (capitalisation)”. The government is wary

that the QE stimulus package of the US would taper off, and one should be prepared for it. If

there were some way rural wages could be stimulated from Agriculture, the economy would

bounce back. Obviously, wages would not go up without investment and production. A slew of

measures followed, such as the various Acts, Policies, Interest Rate hikes, and Banking

Administration. In economics, it is the net aggregate income from wages that matters, since that

would also increase expenditure and demand for goods. As explained by analysts writing in

newspapers, the surplus of income over expenditure in Agriculture markets would create

demand for goods manufactured by industry. (A sustained expenditure needs surplus.)

A MSME would analyse Agriculture/Food Processing Policies of State Govt. of Odisha to search

for feasible opportunities in light of mainstream economic thinking. The approaches towards

determining the feasible set of actions in an emerging market is given as follows:

The first is capability; meaning that the emerging technology should be a blend of two or

more old technologies over which the MSME and the rural worker have good mastery.

The second is what control strategy is used to overcome variations in costs, whether it is

a feedback control or a feed forward control system.

In both of these determinants of feasibility, Design Thinking would be of good use. In the context

of Design, Policy measures to maximise productivity create opportunities for Skill Building.

To assess capability, it is important to know the historical evolution of the cluster. A Policy

document is an excellent source of cluster’s history and capabilities, since it makes Resources

and incentives available for extant capabilities. In Agriculture/Food Processing, an esoteric

Technology recommended by Policy would be considered as madness. As a Policy is for all, the

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document contains more information than what is necessary for a MSME’s product. A MSME

making meat products has no use for provisions for horticulture preservation. In such cases

Design Thinking functions like Occam’s razor to cut away all that is not necessary for the

product’s Design, and reduces the number of variables to a manageable few.

The role of Design Thinking in control strategy is a bit more complicated. Assuming the first

hurdle is crossed, the control of the output variable, say cost, can be a feedback control system

or a feed forward control system. A feedback control system would mean where corrective

action (remedial) is taken to manipulate inputs based on the observed deviation of the output

cost from the set point, such as price that has been bargained or quoted to customer. The role

of Design Thinking is to change the blending of inputs so that the blended cost matches the

desired output cost. A feed forward control system would mean that the cost is blended on the

assumption that it would match the output cost. Generally, a feedback system gives better

control over the cost, whereas a feed forward control has inherent instability.

Examination of Odisha State Agriculture/Food Processing Policy shows that from the

perspective of the MSME, it uses feed forward control mechanism to follow the Central Policy of

raising aggregate rural wages. Policy provides incentives to create Mega Food Parks that would

comprise of a collection of MSMEs, and all rural supply chains from production and collection

centres would converge to these “hubs”. From these “hubs”, products would be distributed, and

some of them would be exported.

Feedback Mechanism: The existing “hubs” (Cuttack, Berhampur, Sambalpur) have formed

over past so many years as mandis for marketing the raw Agriculture Products, such as

vegetables, food grains, pulses, oil, etc. There is an exchange of goods between rural centres

and mandi cities, such as equipment and other manufactured goods that are used in production.

This is the feedback mechanism that is used for blending of costs. The Agriculture Policy has

provisions for strengthening these Terminal Centres, formed and shaped by history and culture.

Feed forward mechanism: Mega Food Parks are envisaged being equipped with the latest

technology to produce the “blended cost”, as it has proved effectiveness for doing it in other eco

systems. Some products would be exported, and sent to other states through the connectivity of

the Food Security system (not yet operational). The demand created for Agro products would

raise wages as rural production increases to meet extra demand (the feed forward mechanism).

What these Mega Food Parks would give in exchange to the rural centres is not clear, and is

probably not known; as such reciprocal transactions have no support of history and culture.

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Small spikes in the supply chain, such as temporary suspension of supplies due to natural

causes, can send cost spiralling out of control in feed forward control strategies. Fire fighting

done by dousing the fire is generally not considered as good strategy. One needs to correct

structural defects, such as removing inflammable material where it could spread, or cutting off

further supply of inflammable material, while at the same time dousing the fire. Feedback control

strategy needs knowledge of Design Thinking to reveal possible structural defects in MSME or

in Policy, so that the MSME is safeguarded against risks.

Lesson in Design Thinking from RBI Governor Raghuram Rajan: Contrary to popular perception, Futures, Swaps and Options use the Feedback Control strategy for controlling cost. Soon after assuming office, RBI Governor Rajan opened a window for swapping dollar deposits for a period of three years. The next action was to make the cost of funds after blending with swap window funds same as the prevailing cost of funds. Some Banks (including SBI) showed reluctance, since the blended cost of funds in India was cheaper than the blended cost after mixing the funds obtained from the swap window. Subsequently, Rajan increased repo rates (interest rates of funds borrowed by Banks from RBI), and slashed rates of short term funds, with other measures to improve liquidity and improve circulation in rural areas. These measures made the cost of funds from the two blended funds equal. The result, the dollar funds collected from the swap window came to 1.2 billion dollars in 3 months.

A similar method is followed in Design Thinking, which manipulates blended cost by varying (a) technology, (b) Skill Sets, (c) procedures in workstations, keeping the cost to customer the same. Note the aggregate cost of funds flow in a time period have to be assessed (area under the curve, or investment) and fixed rather than the exchange value of funds, which is a rate like interest rate or ROI. In Design Thinking, aggregate functionality over lifecycle is used as feedback to control within performance specifications like throughput, power, etc.

In this report we sometimes use the term cost function instead of cost, and the term investment

or returns for aggregate cost. A time period would mean the PLC (Product Life Cycle) period. A

PLC period comprises of many Budget periods, 5 to 7 years or more.

Product (feature) Design is a variable in Design Thinking, as customers generally want cost to

be fixed. Equipment sellers (Technology Providers) very often use swaps, i.e. manipulate

feature designs with higher Unit Cost so that the customer’s blended aggregate cost comes

down; viz. cumulative investment (expenditure) in material, labour, energy, maintenance, etc. for

the PLC period comes down. The customer in turn would alter its workstations and product

feature design for its clients in the PLC period of the product it manufactures. When Design is a

strategy in marketing, PLC periods of feature designs are blended as per client’s need. The

operations of blending costs in the workstation constitute the core of Design Thinking.

Workstations spanning across MSME Units in Agro/Food Processing is given in Figure 1.

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Figure 1: Cloud of Points Covering Workstations of Agriculture Sector

100 oC, P: 80 mm H2

Refrigeration Plant

UNIT OPERATIONS Of

FOOD PROCESSING

Proposed Retrofit

Food Products

Bagasse (Waste) FC=25%

Bioreactor

Algae

Sunlight

Power Plant (Fossil Fuel)

SOLVENT

UNIT OPERATIONS OF

AGRO PROCESSING

Air

Flue Gas

Air

Chimney

Packaging

Food Market

Electricity (Grid Supply)

Carbon Credit Market Greenhouse Gases

Biodiesel Production

DIARY CLUSTER

600oC

Co-Generation Gasifier Technology

Heat Loss

Heat Loss

Heat Loss

Heat Loss

Biofuel Market

Proposed Substitution

Cracked Fuel (Hydrocarbons)

Flue Gas

Steam Generation)

AGRICULTURE AND SPICE, CLUSTER

AGR

O P

RO

CES

SIN

G C

LUST

ER

FOOD CLUSTER

BIO

TEC

HN

OLO

GY

CLU

STER

Biogas

BIO

DEI

SEL

CLU

STER

Dire

ctio

n of

Incr

easi

ng V

alue

Add

ition

and

Ent

ropy

Direction of Increasing Entropy

COTTON CLUSTER

Sunlight

Up Land

Low Land

Coal Mining

Cattle Feed Market

Solar Power

Cotton Ginning

Khadi Spinning

Yarn Finishing

Weaving

Apparel Making

Textile Market

KHAD

I C

LUST

ER

Unit Operations of Agriculture-Low Land

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“Workstation” to Store Ginger

Storage of Organic Mass is an active workstation, since there are significant expenses involved in Unit Operations for creating correct ambient conditions for preservation, such as refrigeration, addition of fungicide, air tight packaging, leaching, preservative, dehydration, and so on.

WORKSTATION AND MACHINE TOOLING Figure 1 is a graphic representation of the Odisha Agriculture/Food Processing Policy 2013.

Markets are coloured in blue boxes. A “market” would mean “one of the many varieties of

systems, institutions, procedures, social relations and infrastructures whereby parties engage in

exchange for barter or money”. The flowchart can be looked upon as Capital Flows within and in

between markets of Agriculture/Food Processing. As an institution, markets would mean many

suppliers and many buyers, where price settlements are mediated by third party arbitration, like

courts, policies, law, administration, and other instruments of the state.

Workstations would be represented as points in the flowchart in the neighbourhood of which

activities take place. The yellow coloured boxes are Operations under review in the NAS. In this

flowchart, the workstation is a place for one or more Operations. A Unit Operation in Agriculture,

Agro Processing and Food Processing describes a particular type of function such as cutting,

shelling, grinding, mixing and blending,

extraction, distillation, and so on. A workstation

in a Capital flow-chart is a Cost Blender that

mixes Skill Sets, technologies, and procedures,

and processes input material from upstream

workstations, and gives outputs that are sent to

downstream workstations. In the flowchart (of

Capital Flow), cost is a (density) function of the

variables of the workstation, usually given by

units describing flux, or rate, such as interest

rate, rate of return, income on daily/hourly basis,

and depreciation.

A volume (aggregate cost or cost) used by

Accountants is the area under the curve, or

integration using definite integrals in a time

interval. In a cost function chart (graph), the workstation is a point with infinite curvature, where

the cost function (e.g. rate of return) encounters an asymptote. For example, paying more to a

worker skilled only in farm work would not yield processed and cleaned agro products. Different

Skill Sets have different rates. Asymptotes are points of discontinuity, a Black Hole where funds

would simply get swallowed up, and more addition of cost would yield only negligible returns.

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Unit Operations of Agriculture sector can be divided into three types depending on functionality

1. Unit Operations of Agriculture, i.e. operations from primary tillage to harvesting

2. Unit Operations of Agro Processing or Post Harvesting Operations, from threshing to

food processing unit, including storage and preservation

3. Unit Operations of Food Processing, from raw product to dining table

The Design Parameter for characterising all Unit Operations is energy.

Design Parameter for Fabrication: In fabrication (structural fabrication,

machining, and casting) weight used as Design Parameter correlates well with

fabrication costs. Difference in product cost that may have the same processing

cost is due to materials. The correlation coefficient is modified according to

material and shape complexity of the part. An example with shape complexity

differences would be between a cylinder and a cam or connecting rod. For

example, cost of casting cast iron, steel, and stainless steel is same if process is

same, say induction melting and casting, but stainless steel is around ten to sixty

times costlier than Cast Iron. Process would normally change with material, such

as in casting when a more volatile alloying metal like Titanium is used.

Unit Operations of Agro (Post Harvest) Processing The correlation coefficient between energy and throughput is modified by (a) type of Unit

Operation, (b) single or multi functional,

(c) characteristics of bio material (that

influences process)

These Unit Operations account for

significant amount of energy in the Flow

Chart given in Figure 1. Most of it is

untapped due to wrong planning of the

upstream Unit Operations of Agriculture

as shown in the photograph. For every 1

kg of food product by weight, the

biomass generated is around 9.5 kg.

The wasteful burning of residual

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Happy Seeder

Threshers in Open Field

Par Boiling (Small

Scale)

biomass after harvesting results in methane addition

in the atmosphere, nutrient and biomass addition to

soil is not done. One way for tackling the problem

was seeding with the biomass still intact, as shown

in the photograph.

This is a partial solution, however, and the best that

can be done is to collect the biomass, which

necessitates improvements in equipment redesign

for collection, and technology to use lean fuel. For

example, the Power Tiller / Tractor thresher

generates fine dust and solids that are a fine source of fuel for different purposes, such as par

boiling, drying, or even cooking. It has

been demonstrably shown that a

village of around 60 households can

get sustained power for around six

hours per day, 365 days of the year,

which is sufficient to light households

in the night for studies of

schoolchildren and TV, operate all the

LI pumps, a rice mill and other post

harvesting operations, and also other

sundry activities like running a

compressor for filling in air of tyres.

The innovation needed is in pricing,

and deciding the right technology mix,

(all old technologies). This is to say

that the innovation is in Social Engineering, by integrating technologies panning across

workstations of Figure 1.

Two steps taken in this direction by the Policy are: (1) to treat the Agriculture sector as a market

(inter connected markets) rather than as a Growth Pole dependent on one “hub” for everything,

and (2) converting farmers and farmer clusters to enterprises (corporate) from their current

status as a Self Help Cooperative to the MSMED Act. The NAS shows that a third role for the

sector would be to make them as energy managers of agriculture with pecuniary benefit.

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Chaff Cutter

Emerging Opportunity for Food Processing: The process of a rational energy security begins with preparation of fuel. The innovation consists of achieving zero carbon footprint for this Unit Operation, (a) collect dust (loss prevention), (b) producing more than required feedstock for cattle, (c) meeting energy requirements for domestic requirements. The technology mix required is (a) cookstove, (b) partial gasification, (c) CO2 sequestration, (d) ash used for non critical construction, and (d) lean gas combustion

Unit Operations of Food Processing Food Processing being in the nascent stage, none in the NAS sample have taken it up as an

industry. The Odisha Food Processing Policy 2013 based on the experience of pilot projects of

the NMFP (National Mission for Food Processing 2012) is yet to “explain” to general public

(farmers) the benefits of its adoption on a wide scale, across scales.

An estimated 35-40% of primary food

produced goes waste due to lack of

storage and conversion to a state where

it can be preserved, such as dehydration.

Using energy as a Design Parameter, the

direction for waste reduction appears to

be a decentralised utilities with priority on

meeting energy needs for certain basic

social needs. The latter is to make it

profitable when taken up by an enterprise,

as slogans of energy thrift and

conservation does not appear to get

reflected in Capital structure.

(The ultimate aim is to find the equation

relating rural wages to capitalisation. In

relating capitalisation to household

savings, the possibilities are that women

who do the conservation would be left

out. Savings of housewife may contribute to net aggregate Capital formation, but would not be

recognised as contributing to GDP. Whereas when the same thing adds to the income of a maid

servant, it would be recognised as contributing to GDP.)

The Odisha Food Processing Policy 2013 fulfils its own objective by intent only. A simple

calculation would show the optimal size of operation of utilities lies in creating balance between

Capital Cost and Operating Cost, keeping recycled (energy) as a parameter. Capital cost

increases according to a power law, whereas operating costs decreases (negative slope) as a

linear regression. The total cost is a U shaped curve. This shows that engineering given in the

photograph needs to be widely distributed, and would keep the size manageable by MSME.

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A Dryer based on Biomass Fuel Using Cookstove Technology for Food Processing,

Bakery, and Other Agriculture Produce

Most Food Processing units do not have many choices in Food Products or Process Design.

The former is dependent on climatic zone, soil and water condition (geographical terrain), and

other topographical features. The latter is dependent on food habits and culture. The only

choice left is scale of Operation, which is dependent on economic environment of the business.

The major cost consuming Unit Operations are washing, cutting (or shredding or grinding),

blending, and application of heat for cooking. Of these, the highest cost contribution is from heat

energy and labour (Skill) that is mixed in a workstation, as shown in the above photograph.

Intuitively, it can be seen that if wealth creation (capitalisation) is to be driven by aggregate rural

wages, then keeping the learning curve steep by having large and complex operations would be

counterproductive. This can be proved mathematically also. An outline of the proof is given

while discussing Skill Training in the Agro Equipment cluster

To give a sketch of the proof: steepness of learning curves is more dependent on facilities and

less on capability endowment of the learner. For example, the photograph shows a dryer

compatible to wood pieces as fuel. A substitute fuel based on a technology improvement is

pellets made from biomass dust, and a forced draft using 35 watts fan (fractional horsepower).

The facilities needed for learning control of heat for the equipment shown above is available in

every household, namely the cookstove. A complex equipment with great complexity of utility

A sectional view of Dryer

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Inter Cropping in a Mango Orchard

and control schema can be mastered by only those few having access to expensive training

facilities. Scaled down facilities would blend process Skills of women workers with only marginal

investments; if prior skills can be used for exchanging labour power for wages, then the learning

curve would be less steep, partly due to self financing mode of learning introduced by on-the-job

learning, and partly due to the worker “chilling” out on her learning curve. The same philosophy

underlies MNREGA, which starts with an immediate exchange of prior skills and gradually

increasing exposure to jobs with more skill requirements. Whereas the MNREGA has high

governance costs, the enterprise strategy would have lower governance costs.

Unit Operations of Agriculture Figure 1 shows an important concept from a system’s (holistic) perspective. There are two

bifurcations, or recycle streams. One in Agro Processing Unit Operation, and the other in the bio

fuel value chain. Note that if liquid bio fuel is not produced, then the organic biomass from the

algae, or natural CO2 sequestering bio material, can be used directly as fuel. It can be shown

mathematically that if there is recycle loop in the system after bifurcation in a Unit Operation,

then system would reach steady state under certain boundary conditions. In other words, if Unit

Operations of Agro Processing is coupled (integrated partially) to Unit Operations of Agriculture,

it would stabilise Agriculture production and increase productivity.

Land use patterns, such as

inter cropping of stylosanthes

and turmeric is a result of

bifurcation originating in Agro

Processing capabilities that has

percolated (feedback) to the

farmland. Most farmers practise

some kind of product mix

based on their perception of

“information recycle” from the market. At least one member of the NAS farmers, Mr. Swaraj

Mohanty, has got direct contact with the market, which forms a major influence for the product

mix. The other major reason is labour availability, and a calculation of NPV (Net Present Value)

that is a predatory follower of net aggregate income of workers in the client organisation. Of

course, he does not compute labour power of clients as purchasing his goods, but since he sells

his produce in the local market (haat), the driving force for demand for goods are purchasing

power of those who come to market for buying goods for their consumption needs.

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Exactly the same philosophy underlies custom hiring services that Mr. Mohanti (and all others in

the NAS sample) provides to the farmlands of neighbours. The quantum of services depends on

labour power engaged by clients, but it follows the equality constraint (Langragian) of allocation

of energy (liquid fuel) rather than any cost to benefit calculations. In other words, the cost

function is optimised by the energy allocation function. We therefore have a multifunctional

capability based on the Power Tiller / Tractor, even though each operation looked upon

individually is overkill in energy terms.

Power Tiller is overkill for threshing and winnowing operation, which does not require

more than 1 HP to operate

Transport by Power Tiller only usable for short distances

Power Tiller optimally used for tillage operations

Problem faced by Custom Hiring Services is availability of contiguous farmlands

A viable option only if it is a secondary income source. Its primary utility in own farm

Same services provided by Tractor and also by Draught Animal Power (bullocks) almost

under identical contractual conditions

Multi Functional Processing (MFP) by Power Tiller from Custom Hiring Services

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Food Processing by Women SHG

Women groups depend on the haat for sourcing the raw material for their enterprise. Some of them come from the community that also sends casual labour workforce to the farms. However, the direct purchase of materials from farmers is not developed, as these groups do not have capabilities to understand futures contracting.

PRODUCT DESIGN REDESIGN AND DEVELOPMENT The Choices before MSME in Agro Processing/Food Processing Sector

From the Design Point of view of bio products, the MSME in Agro Processing/Food Processing

does not have much choice with Product Design. In this matter, the MSME has to depend on

support from Government in such things as Biotechnology, Tissue Culture, supply of seeds, and

inputs like fertilisers, etc. These advances in product design have to fit into traditional practises

in order that farmers can be organised into enterprises as per the intention of the Food Policy.

The MSME has choice in creating a blend of food products to grow and process. Workstations

are so designed that the MSME has flexibility in choosing the product to grow or process. In

fact, bio diversity and crop rotation is encouraged. Exactly what the nature of the blend of

products would be is dictated by access to the market and the information flow (feedback)

obtained from the market.

Inter Cluster Communication Pricing conveys most of the information in markets. In recent past, about four months ago, the

state government gave a lot of mobile sets to connect farmers to Regional Marketing Centres at

the district level, with a 100%

reimbursement of cost of information

(telephone bill). However, most farmers

are dependent on the pricing mechanism

of the local haat, and the mental model

they have about price trends.

The local haat according to Policy is the

collection centre for products, and is

dominated by Traders. These traders

frequently offer a futures contract to

farmers, and keep a hawk like watch on

movement of goods from the farm. If the

local haat and conveyance is well

developed, local traders are confined to

the auction bidding system at the local

haat with some supervision and

monitoring by government. Information is

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concentrated at the Block level, on the occasion of providing inputs to the farmer, such as

seeds, fertilisers, saplings, warehousing, cold chain, and paddy procurement.

All engagements in the market are bound by subsidy. In effect, subsidy is the cost of ensuring

that buyer seller engaged in economic transactions follow democratic norms. However, it is the

collateral effect of price reduction (or increase in profit and net worth) that reigns supreme.

Although direct transactions by government would be a small portion of the volume of business,

and not all products have subsidised prices, it is sufficient to control information flow, monitor,

and supervise the engagements in the local collection centre (haat).

Emerging Opportunities for Choosing Blend of Products for Agro/Food Processing

As admitted in the Agriculture/Food Processing Policy 2013, the focus towards Agriculture

sector had been to strengthen the supply side. A demand side approach that is the current

focus of the Policy would necessitate a holistic approach by treating the production centres as a

market. It would build upon improving purchasing power for goods by increasing aggregate rural

wages. The scope is unlimited. 93% of the primary food products are not processed in the state.

30-45% of food produced is wasted.

The first signal to a farmer about an emerging opportunity is the study of price movement in the

local collection centres (haat). While a large portion of goods would be siphoned off by traders,

a small portion would be procured by micro enterprises, usually incorporated under SH

Cooperatives or informal groups under the aegis of a NGO/Govt. institution. The demand side

approach would build on these nascent efforts.

The role of Design Thinking to identify, act upon and track an opportunity is given below.

Spice Processing (Ginger) in Micro Scale-Cluster Approach

Primary Processing Grinding Solvent Extraction

Spice Processing in Odisha is an emerging industry. Majority of the spices is sold in raw form, with proper packaging. The players who have entered the Spice sector are multicrore industries by building on Brand Equity of spice and diversifying to other Food Products.

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MSME CAPABILITY DEVELOPMENT The Odisha Food Processing Policy 2013 has kept an ambitious target to raise food processing

from 0.7% to 10% by 2017 (next three years), and 25% by 2025 (next ten years). What the state

Government is keen to ensure is sufficient capitalisation (investment) to achieve this target.

Centre’s commitment under NMFP to the state barely touches Rs 10 crores. Therefore, the

state Government hopes to tap the corporate sector for funds.

As such the FDI pie is not suitable for this sector. It is well known that FDI funds had gone into

infrastructure projects, such as steel, mines, construction, and power. The MSME on the whole

had not been a factor in that growth. There had been enormous increase in income from mining,

but it was a financial growth, and a jobless one. It did offer jobs to labour, but that did not

convert to growth of enterprise (MSME), and consequently, when the sector went bust, workers

simply returned home. (Migrant Agriculture workers stay on with their families even if there is no

work. Maybe a primal instinct to be near food source has evolutionary stability.)

Against that experience, the Agriculture and Food Processing sector has always been based on

inclusive growth. Strong positions taken by communities against selling land to industries like

Vedanta and Posco show there was a latent demand for “inclusive growth or not at all”. While

inclusive growth has become rather clichéd, the fact is that investors would be attracted by

extant capabilities rather than by a latent demand. The former would create demand (for goods)

while the latter is so much grist to the mill for populist statements and attracting votes.

From the Design Point of View, it is those extant capabilities in functionality of Unit Operations

that are important, as this would convert to wage income and demand for goods. The review of

workstations show such capabilities, honed in small clusters and passed down through

successive generations. Hitherto, it has been too small to draw attention of Policy planners. Its

protection and development so far has been a cultural issue. Food Processing is kept alive

through institutional mechanisms such as Delhi Haat (in Delhi), Ekamra Haat (in Bhubaneswar),

the corporate involvement in Hotel Industry and Tourism, and lastly those TV chef programmes.

These are the “temples” that have been slowly edging out the Religious temples. Whatever view

one may take of it, the existence of a vibrant Agriculture (Agri + Culture) and Food Processing

will depend on Postmodernism influence on culture. The econometrics of Postmodernism is that

an investor has to pay for the cost of coordination in order to get its ROI. Using a parametric

analysis, it is possible to show that most economised means for obtaining such coordination is

to enhance Design Thinking in the eco system of MSME.

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The example of Mr. Swaraj Mahanti taken from this NAS would illustrate the manner in which

MSME develop capabilities, and as an emerging opportunity, what can be done to enhance it.

The Narrative: Mr. Swaraj Mohanti’s main trading point is the Ranpur haat. Besides the produce from fruit orchards, mangoes and banana, every year, he decides what else to produce by intercropping. Vegetables are sold in the local Ranpur Haat, whereas fruits have long term arrangements with wholesale points in Bhubaneswar. Smaller traders (retailers) who take produce of smaller farmers to sell in the haat oftentimes use the (institutional) Brand Equity that he has developed in the local market. When deciding the current year’s product mix, he forms mental models from all information about all the paths taken by all traders and farmers, i.e. a cluster map. These are time robust maps that capture the essence of events over a time period, especially price movements of different products, patterns of demand supply gaps, Policy, behaviour of officials, social and lifestyle context of workers and consumers and visiting traders, technologies, and so on.

These maps are not vocalised, nor charted in the form of graphs and equations, but participation in the local market provides a description of the maps that helps in guesstimating blended costs. For instance, the high price of labour has dissuaded him from growing vegetables, and would be resumed after making certain capability improvements, acquisition of skills, and functional designs. According to him, these steps may need fresh investments (equivalent of capitalisation as the money must come from current business).

We paraphrase the narrative in the language of Design Thinking, in terms of the functional

designs (Unit Operations) inhering in the flowchart of Figure 1. The description of workstations

(photographs) mentions a few, such as grinding, threshing, dust separation, combustion,

extraction, multi functionality. All of them can be quantified by using energy units as the Design

Parameter. Analysis of maps, graphs, and charts using the Design Parameter would lead to

identifying opportunities, and give preliminary estimates about feasibility. A rigorous verification

of feasibility would need assessment of all components of the NAS checklist given in Table 1,

but a fairly accurate validation can be made on the basis of any one Design Operator.

Figure 1 shows the bifurcation to two product streams in Agro Processing operation, one going

to the cattle feed market, and another to Food Processing market. To cater to both the markets,

the MSME would have to develop functional expertise for two product streams that are distinctly

different from each other, mainly by hiring Skill or by training of workers. Bifurcation enables

engagement in local markets for selling two products. Feedback from sales (price, preferences)

increases separation between bifurcated functionalities so as to consolidate sales. Every time

information loops iteratively, the separation between functional designs increases. Repeated

bifurcation develops multi functional expertise in the MSME Unit.

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Raison d’être of developing multi functionality by bifurcation is to enable optimisation of

Resources available through trade or engagement. But this bifurcation comes about due to cost

(funds) recycle to the business obtained from pricing and engaging in trade. The objective is to

dynamically maintain a blended cost that would balance revenue and ‘expenditure + profit’, so

that the enterprise survives for the next Budget period, (or product lifecycle = several Budgets).

For a long time bifurcation was not clearly understood, although empirical mathematical

formulations of it were used for analysis of market segment data, science and engineering,

technology, economics, and social sciences. The bifurcation must lead to distinctly different

entities, and form ensembles when these entities are clustered. Bifurcation is the basis for self

reproducing organisms and assertion of species interest by adapting to the environment. This

underlying philosophy for survival of enterprise in the marketplace is captured by photographs.

The photograph shows an effective way of optimising Resources use by grafting. Exactly the

same process underlies “grafting” of functionality to achieve multi functional capability for

optimising Resources available through engagement and trade. The necessary conditions for

bifurcation optimisation are (a) engage in trade and recycle funds, i.e. surplus of revenue over

expenditure, (b) having access to the information processing capacity of markets, (c)

experiment by adding functionality. (A similar instruction given to American soldiers is: (a)

capture upper ground (b) stay in touch (c) keep moving). Calculation is needed to check if there

is growth (increase in net worth) or retardation, but otherwise it is a simple iterative process.

Fractals in Nature and Architecture (illustrating bifurcation)

Two Branches Three Branches Four Branches Sagrada Familia (Gaudi)

Trees branch out to capture sunlight and air. The shape of the tree can be produced in a computer by keeping a record of the trajectory by “recycling” fractal shapes. Fruit tree canopy architecture is practised by grafting to form two, three, or four branches.

The use of fractals in architecture of Sagrada Familia, a church, was constructed by Antoni Gaudi (1842-1926). He built tall structures of bricks, masonry and concrete without columns

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Emerging Opportunity Using Energy Design Parameter

Since Unit Operations can be quantified by Energy units, this gives a way of reducing the

number of experimental iterations to create optimal conditions for growth of MSME. Examination

of Figure 1 shows that if the functionality added to the MSME capability improves use of

“recycle” energy, then there is maximum likelihood of ensuing multi functional capability being

optimal, subject to condition that the functionality would be producing a saleable commodity.

(Conditional optimality is solved mathematically by using Lagrangian or Bayesian functions.)

In general, it means that in following the dictum of Food Processing Policy 2013 of reducing

farm wastage, energy conservation measure should come from a process stream. This is an

equality constraint of objective function to make blended cost of the product mix equal (or lower)

than the blended cost of the same product mix in the market. In other words, the optimal costing

based on market returns of product mix lies on the curve followed for optimal energy

conservation. (Mathematically, max φ(X), subject to f(X) = 0, φ is objective function, f is the

energy conservation constraint). The calculation for optimal blending cost using energy as

Design parameter applies to any source of energy, whether solar, fossil fuel, or bio mass.

This strategy leaves out solar energy and energy obtained from any fuel procured for meeting

energy needs from the computation of optimality, since it is not a “recycle” energy drawn from a

process stream. One should not be tempted by the 70% subsidy for electricity generation with

solar energy, as solar energy is for the power companies who sell power to the grid. Using this

power in the computation of cost optimisation is likely to result in cross subsidisation that

ultimately benefits the power company supplying power to the grid.

In comparison, it must be stated that fabrication industries use weight as Design Parameter.

Saving scrap, or minimising scrap generation, has maximum likelihood of converging to optimal

blended cost for all products.

The above procedure is for determining the Design feasibility for making a product or adopting a

process in the eco system of the MSME. It does not say that the product made under this

procedure would sell. It must be remembered that this is a dynamical balancing method, and

does not apply for dead stock. Accountants generally provide a place for such stocks; so that it

does not interfere in the costing process, such as amortisation, write off, transfer of title, etc.

Noting that it is an experimental iterative procedure, it can be accomplished in a virtual

environment, or a consultation workshop, for purpose of Market Competitive Study (NAS list 7).

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Market Competitive Study for Design Distinction Methods outlined above using energy units as Design Parameter for finding competitive blended

cost for product mix of MSME based on saleable goods can be generalised to all opportunity

areas given in Table 1 below. By competitive costing is meant that the blended cost in the unit

would be same (or lower) as blended cost for the same product mix in the market. To make a

market competitive study, one could use other Design Parameters like weight, cost, or bytes.

Table 1: The Design Matrix of Design Thinking

DESIGN THINKING

Operators (Cluster Mapping Tools)

Opportunity Area (Cluster Level, Major)

Opportunity Area (Unit Level, Minor Project)

Design Information Forecasting Assessment

(NAS 13) Inter Cluster Communication

(NAS 1) Product Design Re Design Product Development

Interactive Design and Strategic Collaborative Design

(NAS 2) Tech Modernisation and Collaboration

(NAS 3) R&D Directions for Future Development

Incremental Design development

(NAS 15) Improvement in Process of manufacturing and productivity

(NAS 5) Workstation and Tooling

Functional Designs to Reduce Adoption Costs

(NAS 14) MSME Capability development

(NAS 7) Market Competition study for design advantage and distinction

Space Innovation (NAS 18) Manufacturability, serviceability, manufacturing process

(NAS 4) Process Innovation and Related areas

Quality Function Deployment (NAS 16) Market Share and Profitability

(NAS 19) Value Addition

Enterprise Social Responsibility

Design to Cost (NAS 8) Training and Skill Upgradation

New Product Introduction (NAS 10) Infrastructure and Capability Enhancement

(NAS 9) Packaging logistics and Storage

Lean Practises (NAS 6) Ergonomics and Environmental Factors

(NAS 17) Reduction of Wastage, Energy, etc

Graphics Design, Linear Perspective

(NAS 12) Visual identity and branding

(NAS 11) Exhibition/Display

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To use Table 1, it is important to assign a measure of the “whole”. In Food Processing, the

“whole” is easy to determine from studies made by nutritional experts, or army rations, food

served in hospitals, midday meals, ICDS anganwadi, and many places. The most accepted

definition used previously was poverty line based on calories intake. This has since been

discontinued, since it was problematic to convert it to a Blended Cost of the wholesome meal.

Put differently, the Blended Cost had variance, and factors that were cost determinants were not

knowable. Therefore, a Benchmark Blended Cost was fixed based on income, making it easier

to assess the budget needed to service the BPL population. The same principle can be used for

heuristically fixing a Unit Measure for product mix that is “whole”. For availing government

subsidy or its procurement services or for selling at controlled prices fixed by government, it is

safest to use the same definition of “whole” used by government. A little bit of literature survey is

needed, such as reports of World Bank, all UN agencies and others.

Assuming that the ideal product mix (with costs) perfectly matches customer needs for a

wholesome meal, it is assigned Unit Measure to form Design metric (D) = 1 for a 100% match.

When the Unit Measure of D = 1 is expressed in cost terms, this would be called the Unit Cost

of the product mix. Actually, the Design metric is D < 1 is acceptable, and when expressed in

cost terms would be the Unit Cost. However, the ideal standard design can be used to analyse

manufacturing process and productivity.

This Unit Measure D =1 is split into fractional dimensions of the whole, and produced in a

“workstation”. When all fractional dimensions from different workstations are put together, D = 1

is reproduced. Deviations of the fractional shape Di from the design output is the error. All these

errors add up to produce the overall error.

Exactly the same procedure is followed for adding fractional cost contribution (fractional value

addition) of the workstation to the Unit Cost of product design D. A cost variation could have

many sources, such as materials, skills, minor changes in procedure, time taken for a job, and

so on. (Mathematically, errors or cost variation are normally distributed. Addition of blended cost

(or comparison of two blended costs by subtraction of mean) is not an arithmetic operation, but

is done using statistical functions. Addition/subtraction of statistical (stochastic) variables is

addition/subtraction of area under the curve.)

A fraction of D = 1 would be a fractional dimension, and the operation that produces the

fractional dimension would be called Operator (column 1 of Table 1). In the case of MSME, the

Operator is experimentally accomplished, in small doses at a time, using an iterative process.

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Operators can also be mathematical expressions. In either case, outcomes are to be mapped. If

Mathematical Modelling is preferred, then Operators are Mathematical functions. These apply to

Technical Solutions of engineering and science, such as designing a chemical or biochemical

process. But the bulk of modelling is done experimentally by trial and error. Workstations are

pictured as adding fractional dimensions to the product mix using.

Fractals are special class of Operators that feedback a fraction of the “whole” (product design)

to the system (workstations of MSME) to get the next outcome. In Design, if an iterative process

is used by feedback of the outcome of the previous iteration, then fractals operations are used.

The assembly of fractals is called an ensemble. A random collection of fractional dimensions

cannot be called an ensemble. To form an ensemble, the fractals must have a defined

relationship to the whole, like relationship of individual pieces of clothing such as shirt, (or pant

or shoes) has to a costume. To define relationships, rules of the game, or axioms, are needed.

Whereas in general a wholesome product mix with D = 1 can be assembled from different

fractals produced in a cluster, the workstations of a MSME all put together would be producing

only a fractal. Clearly, to determine the Unit Blended Cost for Agriculture, Agro Processing, and

Food Processing, the local Haat would be a much better place than the workstations of the

MSME to form the Unit Measure of Design metric D.

Use of fractals makes it much easier to determine Design feasibility, such as establishing gaps,

determining substitution designs or complementary designs, and cost tradeoffs. An example of

trade-off is additions of feature designs to product mix to fill a gap in client system; multi

functionality (features) lowers adoption costs and MSME provider can increase sale price.

Custom Hiring Centres of government and private, which the farmers in this NAS practise, is a

cost trade-off operatioanlised (incentivised) by multi functionality.

The overarching simplifications of studying a design issue by fractals is (a) phenomenon called

“self similarity”, (b) applicable across scales, (c) simpler mathematics once the fractal dimension

is determined, (d) adaptive to the environment and (e) recursive. For instance, take the 80:20

law, which arises from a fractal dimension. The 80:20 law simplifies analysis, as 80% of

problems can be addressed by a subset of 20% of variables. 80% of Resource allocation is for

20% of people (or workstations, functions, or any of the variables of column 2 of Table 1. Once

the top 80% is removed from analysis, the balance 20% would can also be divided in the 80:20

ratio. Knocking off the 80% of the 2nd iteration, the balance would divide in ratio of 80:20. This

can continue no matter how many times the iteration is continued.

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EMERGING OPPORTUNITIES BY USE OF FRACTALS To use fractals and the advantage it gives to control dynamical situations, such as market and

ROI, there are certain necessary conditions, given as follows

A feedback control strategy is used for deciding any remedial action

The region in which analysis is carried out is an open set. This generally means that

one must forget the “initial state” of the system. (Governor Raghuram Rajan put this

succinctly when he said that Banks should not recapitalise losses of pioneers and

founders)

The system should exhibit ergodicity. This generally means that one should follow a

market system that has inherent balancing characteristics and no imperfections like

gender bias, or social discrimination, or monopoly like cartels. An ergodic system implies

that statistical analysis can be used to make projections to future without fear of bias.

The success of MNREGA is attributed to a couple of axioms like allowing equal opportunity for

men and women, APL and BPL, and remaining within limits (boundaries) imposed by the social

group, such as travel limits of women in search of work. This principle applied to a MSME

means that ESR (Enterprise Social Responsibility) privileges must be the same to both regular

employees and casual workers. The latter generally outnumber the former in ratio of 5:1 to 10:1.

The most flagrant violation of this rule is from the government itself.

In the case of Food Processing sector, the extended ESR calls for using the services of a

collective agency like a NGO (Civil Society) to span the whole length of the value system given

in Figure 1. Oftentimes, MSMEs of Agro Processing/Food Processing sector are likely to round

off what is happening in Agriculture, thereby imposing a boundary, and defining the open set too

narrowly. This creates difficulties when deriving measurements from the local haat.

The overarching advantage of strategising a Remedial using fractals is that one need do a small

thing to make a large difference. Some of them are given below.

Training and Skill Upgradation 1. Matching the capacity of the primary (e.g. MB plough, Disc Plogh) and secondary tillage

(e.g. cultivator, rotavator, power tiller) to minimise idle time of each machine

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Dry Seeder can be Used with DAP (Bullock) and Power Tiller

2. Tractors are not in their peak efficiency during primary tillage operation during summer

plighting and ploughing after early monsoon because tractors are diverted for transport

of construction material

3. Tractors are operated by semi skilled operators, who are not aware of best maintenance

practise during on road and off road operations

4. Tractor company’s service outlets are few in number, mostly located in urban areas.

Therefore these tractors are maintained by semi skilled in automobile workshops located

in suburbs who are not aware of tractor and power tiller maintenance

5. Drying done on the municipality / village / NAC pucca road resulting in crushed grain of

poor quality, rain affected drying, with family labour results in accidents due to fast

moving motor vehicles

Manufacturability, serviceability, manufacturing process 6. Dry seeding of paddy is

the best method for

minimising cost of

cultivation of this crop

7. Summer ploughing is must

in this method with use of

pre and post emergence

weedicides. Labour

requirement is reduced by

a third in this method

8. Spraying by power sprayer can

control fast propagating plant diseases

and pest (brown plant hopper, swarming

caterpillar and yellow vein mosaic

spreading white flies in gram.) This

sprayer is more effective due to the

dislodging effect of pest by the air blast

produced during spraying

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Post Hole Digger for Orchards

Training in Post Harvest Management

9. For machine transplanting, puddling should be

done to a depth of 7.5 cm in the early part of the

monsoon with a settling period of 2 to 3 days

10. Seedling transportation and transplanting is a big

problem with labour cost at Rs 250 per day

11. Transplanter need seedlings of 21 days ± 5 days

old seedling and can be transplant maximum 3

acres per day. Therefore this machine needs

staggered nursery raising with maximum of 240

m2 per day

12. Matching the capacity of vertical conveyer reaper

and axial flow thresher in case of paddy and

groundnut digger with groundnut thresher is important from the point of view of best

utilisation of machine capacity

Infrastructure and Capability Enhancement 13. The inputs in Agriculture such as

seeds, fertiliser, pesticides, and irrigation

water has become costly and scarce

resulting in delayed supply and black

marketing which affects production

process

14. Bi products to be utilised properly. Regular

training to be provided

15. Agriculture clusters, Agro Processing and

Food Processing clusters need a CFC with

primary membership of private Custom

Hiring Centres to drive corporate formation

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CONCLUSION: DESIGN THINKING FOR SHAPING EMERGING OPPORTUNITIES From Design Point of View of manufacturing, it is useful to make three conceptual deconstructs

of an Enabling Technology, viz. Technology, Skill, and Protocols as given in Figure 2.

Figure 2: Conceptual Distinction of Elements of Enabling Technology

A colour code is used to say that the three elements are always found together, i.e. a property

called confinement Red + Yellow + Blue = White, borrowed from Physics in describing

behaviour of Quarks. For example, a Skill institute like an ITI or engineering college (or NID)

would have laboratories and workshops, and students follow protocols to carry out an activity.

The concept applied to Design Thinking without loss of meaning, deconstructs it as follows.

Table 2: Deconstructing Design Thinking into Enabling Technologies

Measure Deconstructs of Design Thinking Operator

Technology Design Space Interactive Collaborative Design Red

Skill Set Enterprise Social Responsibility (ESR) Skill Development Yellow

Protocols Cloud of Points (Blending Processes) Design to Cost Blue

ENABLING TECHNOLOGY

Old Technology

Old Protocols

New Protocols

Old Skill Set

New Skill Set

New Technology

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Raphael’s “School of Venice” blends philosophers, mathematicians spread over several generations.

It illustrates the meaning of “Cloud of Skills”, e.g. teachers/students “Square the Circle”, (calculating the value of pi Π), similar to combining algorithms in Cloud Computing in the age of Internet and Information Technology.

The taxonomy of terms used in Table 2 is given below for quick reference (cf Gantayet, Oct

2012 where some of these terms have been explained in some detail).

Taxonomy

Design Space: is defined in the web as: “The entire range of all independent variables.

Measures or amounts that is directly controllable.” Since such a definition becomes humungous,

Design Space is defined as goal oriented and measure preserving. Example in the web:

optimisation of variables under constraints of Resources to achieve quality, or cost. The NIFT

(National Institute of Fashion Technology) describes Design Space as blending old technologies

into an emerging grey area. This definition is probably to attract Skill from various

specialisations to do M Tech in their institute. Design Space is bounded space and quantifiable.

(Definition of Design Space given by this Design Expert is to make it measurable (quantifiable) in terms of a measure that best describes the Emerging Opportunity Area of Figure 3: Keeping Track of Emerging Opportunity Using Statistical MLE

This method of forming estimates of parameters (like price or cost or income or market share)

based on historical data using normal distribution as a MLE is well known, and is given in any

standard textbook on marketing and economics. It has severe limitations, as it assumes a

stationary population. Forming estimates in a dynamic situation can be very tricky, and its

analysis is fairly complicated. However, the advantage of dynamical models is that it can be

used pro actively, and provides a way for the MSME entrepreneur to act and not react in order

to survive the rough and tumble (global recession) of the market place.

. As a further simplification to avoid confusion, we have used only two measures,

Unit Cost and Skill Sets. They can be converted

by laws of Table 2, similar to converting calories

to Joules using first law of thermodynamics).

Interactive Collaborative Design: is well defined in Design

Clinic Scheme Guidelines, where pages and pages have

been written. (See Raphael’s School of Venice for concept).

Enterprise Social Responsibility: is the benefits given to

any worker engaged by MSME, whether employed or not

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Industry Average

Weak

Competitor will be

swallowed up

Product Life CycleCompetitive Positioning

Strong

CompetitorFirst Mover, or

Predatory Follower

Last In …

Design A (Old) Design B (new)

Design C (new)

Design D (new)

Product Life CycleRegeneration defines Design Space

DESIGN SPACE (UNDER THE CURVE)

Skill Development: is the process of imparting Skills by training, on-the-job learning, project-

based-learning; usually in one or more peer groups; mentoring is part of the process

Cloud of Points: is the description of the shape of the surface of any object, or the description

of the features of a design when applied to a 3D object. Meaning of cloud is the same as that

used in cloud computing; as an ensemble of skills, methods, and processes to obtain a desired

objective

Design to Cost: is manipulating Design to achieve product’s functional and ergonomic features

within a pre determined cost, or affordable cost, or a cost that maximises value to customer.

Techniques to use Design Thinking for shaping an emerging opportunity are to make the MSME

Unit capable of computing and using a MLE (Maximum Likelihood Estimator). The MSME

should be trained to use a MLE, which if reasonably accurate, would identify and give shape to

an emerging opportunity and keep track of Emerging Opportunity.

Figure 3: Keeping Track of Emerging Opportunity Using Statistical MLE

This method of forming

estimates of parameters (like

price or cost or income or

market share) based on

historical data using normal

distribution as a MLE is well

known, and is given in any

standard textbook on

marketing and economics. It

has severe limitations, as it

assumes a stationary

population. Forming

estimates in a dynamic

situation can be very tricky,

and its analysis is fairly

complicated. However, the

advantage of dynamical

models is that it can be used

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pro actively, and provides a way for the MSME entrepreneur to act and not react in order to

survive the rough and tumble (global recession) of the market place.

Motivation behind Design Thinking is to use only one of the elements Table 2 to form the Design

metric D, which can be Skill Sets, or Procedures, or Technologies. As mentioned above, these

three act as constraints (Lagrangian) for finding the optimal conditions for growth of

MSME/cluster. In Agriculture/Agro Processing/Food Processing, where one has to perforce rely

on distributed technology, Training (Skill Development) has been the method of choice. This

training is Performance Based, hands on, practical training, with theory being taught through

demonstration type of lectures with very simple picture formats (graphs, pie charts, histograms).

Once the background has been formulated, i.e. boundaries have been created as given on page

28 by the Capacity Building Institute (Design Institution or Resource Cell as per the Odisha

Food Policy 2013), and linkages established, the addition of fractals in incremental doses would

result in creating an “envelope” curve given in Figure 3 above. The Y axis is the cost function.

Normally, the real time curve of cost vs time is a crazy zig zag curve that is so often published in

statistical reports. To determine the cost function, slopes of the zig zag curve (cost function)

over a defined time period, say 12 months, is taken and a frequency table (histogram) made.

The typical statistical distribution is obtained by drawing the smooth curve of the histogram.

Figure 3 (top) shows how such smooth curves (normal distribution) are added. The “envelope”

should follow the industry average, or be a predatory follower (Figure 3 bottom).

Advanced Analysis by Researchers Inside each baby curve of a new Design is the trajectory (phase space) of the Design

Parameter. The baby curve of Figure 3 (top) is a function of the topological map of fractal

operator, whose mapping is rather complicated, and can be analysed only in a computer. This

curve would show many bifurcations. This can be safely ignored in training MSME, or to the

average Research scholar in the field of Agriculture and Engineering, unless the analyst is very

proficient in Maths, computer simulation and numerical methods.

Most Researchers use multivariate analysis called Response Surface Methodology without the

core assumptions of Design Thinking of Confinement law to plot surfaces. The connection

between Confinement law and trajectory (maps) of fractals is the property called “dense”

periods. This means that all trajectories (maps) of the Design Parameter measure of Skill Sets,

Procedures, and Technologies (say energy) would approach close to one another, and are

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Apply Bayes Rule

• Set up problem as P(R|N), i.e. Remedial taken up if MSME unit forced to go for a New Product– R: Remedial, N: New– P(R|N) = [P(N|R) x P(R)] / [P(N|R) x P(R) + P(N| not R) x P(not R)]

– P(R) = 0.1, P(not R) = 1 - 0.1 = 0.9– P(N|R) = 0.7 (as found from studies of Business Incubation

scheme, and study of requests by MSME units for Design Projects)

– P(N| not R) = 0.3

• Therefore substituting numerical P(R|N) = 20.6%– Chances are good as per PLC curve that Remedial Design

would self-sustain, since it is higher than 16%

bunched around two fixed points, called attractors. Whereas Response Surface Methodology

assumes these points to be fixed in time, (do not shift with time), attractors shift with time due to

small perturbations. Response Surface Methodology cannot analyse dynamical balancing, and

does not require systems to exhibit ergodicity. However, Response Surface Methodology can

be adapted to form a time series using Bayesian statistics, or sequential equilibrium, and

dynamical balancing (equilibrium) computed using Bayesian statistics.

One example of sequential equilibrium is PERT, which assumes normal statistical distribution.

Most practical Researchers, like practising engineers, entrepreneurs, should start by using

PERT as a analytical tool to spot opportunities, especially gap filling. These should be backed

up with intuitive description of what is actually happening, or should happen.

The illustration shown below gives how Bayesian statistics can be used to form a time series,

i.e. motivate a future course of action. To analyse time series data, often used for trend analysis

and forecasting, Researchers, especially economists, agronomists, plant physiology,

biotechnologists, and biologists studying genetic engineering have to graduate to the next level

such as Game Theory, Evolutionary Game Theory, and Rational Choice Theory in the study of

dynamical situations.

Suppose we want a MSME or client to adopt a Remedial. Bayes rule tells you what to do to

improve chances of adoption of the Remedial by conditioning probability of adoption with

another event, such as enticing the MSME to go for the Remedial by tempting MSME with a

New Product Design.

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Workshop Report

Interactive Design Research—Band 2

Of

Bhubaneswar Agro Processing Cluster

Sponsored by

“Design Clinic Scheme, Ministry of MSME, Govt. Of India”

Under an Agreement with National Institute of Design, Ahmedabad, the Implementing

Agency, and Central Toolroom and Training Centre, Bhubaneswar

Prepared by

Dr. N. P. Gantayet, (PhD) and Prof. S. K. Nanda (Retd Prof OUAT)

November 2013

120, Madhusudanagar, Bhubanesar-751001, Phone 06742390311, mob: 09937631559

www.thermo_orissa.com; e-mail: [email protected], [email protected], [email protected]

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BROAD DETAILS Cluster Name: Bhubaneswar Agro Processing cluster

Design Experts: Prof S. K. Nanda

Programme Band: Band 2

INTRODUCTION While the NAS had covered 9 contract farmers, the number of participants to the workshop was

around 15 on the Day 1 and around 7 on Day 2. Day 1 of the workshop was held at cluster

level, while Day 2 was held at CTTC.

Day 2 of the workshop was held simultaneously with Day 1 of the BBSR-CTC Agriculture

Equipment Cluster DAP workshop that was running concurrently with the DAP Agro Processing

cluster. Besides MSME equipment manufacturers, participants in both the workshops included

other focus groups such as academy, M Tech students, Design Experts, organisers CTTC and

finally observer from NID. This day’s event was widely reported by the media. Thus, the

coverage was of a wide spectrum of stakeholders, including the public.

For sake of brevity, this day is referred to as the “stakeholder consultation” in this report.

Whereas different newspapers have reported aspects of the DAP Stakeholder Consultation, all

reports converged to Skill Building as the means to improve Design competency of MSME in the

region. Earlier on the same day, a group of around 41 UG engineering students were given an

exposure seminar on Computer Aided Engineering design with focus on Unit Operations of

Agriculture, Agro Processing, and Food Processing to highlight the esprit of Skill Building.

The purpose of converting one day of the DAP Workshop to a stakeholder consultation was to

note the event time series in the next fifteen days following publication of media reports. While

this made the design of the workshop on this particular day amorphous, it structured the DAP

workshops of Days 2-5, and focus group discussions (FGD) of students and academics. The

“media event” provided a context for design projects of DCS (student project and professional

design project), and gave a lead to subsequent Awareness programmes under Design Clinic,

Entrepreneurship Development, Skill Building, and Technology adoption. It also identified

several Research issues in engineering and Management; for e.g. drawing up a Business Model

with Design at Centre, and use of PLC curve to identify workstation Redesign.

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DAY 1: A CONCERN FOR PRICING The picturesque place of Ranpur just 60 Kms away from CTTC is an ideal place to get away

from high tech machines and administration.

Little wonder that the major part of the Design issue discussed off the dais was on eco tourism

for this cluster being encouraged by Food Processing Policy 2013. However, exposition from

the dais has a technical flavour and is given below.

This workshop did not need a LCD for displaying photographs to participants. Shri Sibasis Maiti, GM, CTTC explaining about the Design Clinic scheme in view of the fact that farmers going in for Value Added products would get finance and subsidy under the Odisha Food Processing Policy 2013 by converting to MSME.

Speakers on the dais Shri Swaraj Mahanti Shri Ambuj Nayak

Prof S. K. Nanda Dr. N. P. Gantayet Visual Acuity Transect

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“Price of anything is the toil and trouble of acquiring it.” Adam Smith

The dominant theme of the Agro Processing workshop was pricing of Agriculture goods. This

was prompted by the sudden price rise of Horticulture products after cyclone Phailin had struck

Odisha. In the photograph of the walking transect of the farm by the august body, one can see

uprooted banana plantation in the background.

In markets, pricing conveys information. The temporary dislocation in the supply chain had seen

prices of potato and vegetables spiralling. Like any communication, Price could have different

meanings to different people. Interestingly, the 1999 super cyclone that had struck Odisha with

greater devastation and massive destruction of crops, livestock, and people (10,000 died) had

not witnessed such price rise in commodities and vegetables. Although this was not articulated

during the discussions, this fact has a bearing in post modern economics. In the gathering of

farmers for example, opinion was sharply divided between increasing productivity to encash on

price rise in agriculture products and value addition to counter rising cost of inputs like seeds,

fertiliser, and labour. The debate was inconclusive on that day, as it is even now. However,

discussion on price instability provides an ideal context for introducing design tradeoffs.

Address of Speakers

Shri Ambuj Nayak welcomed participants, and requested Shri Sibais Maiti, GM CTTC, to make

a formal inaugural address. Addressing the gathering, Shri Maiti complimented on the beauty of

the surroundings. CTTC was a Centre of Excellence for precision machining, but as far as

Agriculture was concerned, it had to explore in which way the cluster would interact with them.

Prof. Nanda took hold of the proceedings from then on, steering a participatory discussion

between participants and panel (dais) members. Some very obvious faults in mechanisation

was reviewed, especially use of Power Tiller in operations for which it was not designed such as

primary tillage. In a short time the discussion moved onto pricing.

The primary cause of price rise was lower production due to unavailability of labour.

o By unavailability is meant that labour was no longer available in the old rates.

The many fold increase in labour rates, five to six times, made farming unviable.

o Rural workers found it not necessary to put in required man hours because of

availability of rice at Rs 1 per kg and higher income despite working lesser hours

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This state of affairs (inflation) was punishing to farmers, since benefit of increase in sales

price of commodities mostly went to the middleman

o Not many farmers had proper information about the distribution of price in the

value chain, or access to information.

o There was no mechanism to stabilise prices in the medium term for sufficiently

long time for farmers to plan their production and get a decent ROI

The policy of the government was at fault, since they failed to exercise any control of

prices in the supply chain, investments for cold storage, and procurement prices

o Remedial measures included investments in refrigeration and preservation (cold

storage), which in Odisha was highly inadequate.

o Prof Nanda cited using cold boxes of modular construction using sandwiched

poly insulation between SS sheets to save on power when stocks were low

Economics of paddy (wheat, maize, ragggi, and staple crops) was such that it satisfied

inelastic demand, making it possible for government control over its production, pricing,

subsidy and procurement. Horticulture products, meat, eggs and fish, had elastic

demand, and greater price fluctuation. There was no control by government.

They fetched more value than paddy, but needed knowledge based workers. In general,

horticulture products (and livestock) needed more care and constant attention.

o Prof Nanda said that paddy and staple crops were easier to produce than

horticulture products, since they were less affected by pests and plant diseases

o Pest control by use of pesticides in horticulture needed appropriate equipment,

so that pesticide reached underside of leaves. General spraying was not effective

o Weeding when the plant was not very high needed smaller machines that could

be used between rows. Use of bed raiser by tractor was not an effective solution

o Mechanised plucking was out of question for most horticulture produce

Prof Nanda strongly advocated “value addition” in the farm itself. This was a bit difficult

for farmers, who were reluctant to change old practises and update technology.

o A benefit of mechanisation was that it encompassed a technology upgrade

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Processing Equipment for value addition such as dal polishing machine was not costly,

(in thousands) while at the same time it provided a 20% increase in the sale value

o A hand operated machines were available for most processing operations

o Most important steps of processing included grading, sorting, preservation, and

packaging

In response to Prof Nanda’s opening speech, Mr. Swaraj Mahanti gave a diametrically opposite

view to tackling the pricing issue. He advocated proper information flow in the supply chain so

that price of goods in wholesale and retail points were known to the primary producer. The

means to counter a skewed pricing structure and the exploitation of farmers by the middleman

was to increase productivity. If wages were to increase, there should be commensurate

increase in skill, especially in operating equipment and mechanisation.

During discussion, Prof Nanda said that farmers had to speak in a unified tone, which was

lacking among farmers. There were instances when farmers refused incremental benefits under

various schemes because they could not agree on how incremental benefits would be shared.

Joining into the discussion, Dr. Gantayet said that the lack of standardisation of Agriculture

equipment by a standardisation agency of BIS would lead to disagreements on pricing. The

consequence of lack of standardisation led to the following

If there were standards, then cut off price for standard features (functionality) would be

fixed, say by a committee. This would quantify incremental benefits due to any additional

feature by manufacturer, and form a basis for agreements on pricing.

o For example, the Swastik Farm had an 11 KV feeder right at the doorstep. This

meant that it could draw power for any processing industry.

o However, most of the power needed in the diary did not exceed 3 KW, and there

was sufficient roof space to get that from solar power. This would be

complementary to grid power.

o It would improve reliability, since maintenance of solar power would be in the

hands of the farm, whereas changing a fuse of an 11 KV substation in a rural

feeder would take best part of the day if safety protocols had to be followed. If the

substation happened to be at the end of the feeder, where rural feeders generally

are located, quality of power and availability would be atrocious.

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o Technology had improved wherein it was possible to blend power from two

sources, one AC and one DC, or two AC in the loads needed in the farm and for

processing. Biomass availability being good in horticulture, electrical power was

not needed for energy intensive operations like boiling and drying.

Agriculture and Food Processing Unit Operations being non linear, only the performance

should be specified to the equipment manufacturer, such as throughput, product quality,

and features (functionality)

o Most equipment indentors provide dimensioned drawings with the assumption

that manufacturers would give a verifiable costing. In absence of standards, and

also performance guarantees, manufacturers can easily sell a “lemon”

o Equipment Manufacturers, especially fabrication and machining, need drawings,

and these are provided by detailed designers. Without drawings, even the most

sophisticated machining, like CTTC, would collapse. (Corroborated by Shri Maiti)

o In Agriculture, costing left to the government creates a quasi standard instead of

providing a cut off point for minimum feature and performance. Costing is a

design issue, and manufacturers would generally contact the indentor, or a

designer to mediate in the costing between supplier and buyer.

(Mr. Swaraj Mohanti corroborated this point of view from his experience in getting a bed

raiser fabricated in the Odisha state. Finally, he got it done at Raipur, which had well

developed systems of consultation between buyer seller.)

o The design of the transaction was important. There was merit in converting

farmers and Agri Enterprises to MSME, since the MSME sector had well

developed mechanisms for buyer seller consultation (B2B and B2C), consumer

redressal, payment systems, contracting and guarantees, and property rights.

Conclusion of Day 1: to hold a Face to Face meeting with equipment manufacturers and

pricing mediators (designers) at CTTC. Overall, it can be seen that pricing conveys design

information better than any other channel. It also pools experience and information, and gets

self structured into dominant patterns. The mode of exchange also matters, such as controlled

price, mediated negotiation, direct contact or distribution systems, and derivatives pricing.

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Creating a Hunger for High End CAE Design Tools

DAY 2: STAKEHOLDER CONSULTATION Day 2 was tilted towards Skill Building in an attempt to define the Redesign of Workstations as

the method of choice of Design Solutions in Agro Processing Industries. The effort was to

impress upon participants that most Design Solutions were formulated “out of the box”.

To actualise “out of the box”, outcome of the seminar on CAE held at CTTC was fed into the

concurrent workshops of Agro Processing Cluster and Agriculture Equipment Cluster. The

media was also involved, making the larger public a passive participant in the deliberations.

Day 2 Morning: Seminar on Point Cloud to Future Designers (Students)

Extracts of the NAS report were provided to 41 engineering students, and a workshop/seminar

was held on CAE (Computer Aided Engineering) with an exposure to Point Cloud.

Point Cloud is a well known tool used for Reverse Engineering and Redesign. There is no doubt

that Redesign is a team effort, combining Skills in mathematics, converting Point Cloud to a 3D

solid model, software programming, and Tool Post Movement and Post Processing for getting it

machined in a machining centre. (Women excel in team skills). These students were given

portions of the NAS report on Agro Processing Cluster and Agril Equipment cluster as handouts.

The outcome of Skill Building of undergraduates was that some of them set their goals for the

long haul needed to build skills in Design. This outcome along with feedback of students was

fed into the DAP workshop and the scope amplified as given below. It justified the cluster

approach to finding Design Solutions and importance of Inter Cluster Communication.

In the Classrom

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Cluster Based Approach

A cluster is a collection of industries making similar products and located in the same Geographical region

Government promote clusters as a cost effective means of providing employment and job security

Some clusters have existed for hundreds of years, others are just emerging

If a cluster is not growing, it is dying.

Clusters sustain growth by “top up” infusion of new technologies and skills

Clusters reinvent themselves by innovations in manufacturing process

Plasma Reactor Components of this equipment was fabricated in the cluster and assembled by Saroj Meta Tech.

Cold Plasma Kills Bacteria in

Food and Beautycare

MSME CLUSTER ADOPTS “CLOUD OF POINTS” TO

MODERNISE MANUFACTURING PROCESS

Cloud of Points (Unit Operations) Covering Workstations of Agriculture Sector

Plasma is a “cloud” of electrons in a gas with temperature is thousands of degrees compared to that of gas molecules (in range of 45-2000oC). The “cloud” is contained in the Reactor and manipulated by electrical fields to give a converging gas stream exiting from a torch/nozle at high temperature to melt / join / or cut metals.

ADVANCES IN UNIT OPERATIONS

Design and Development of Paddy Transplanter in the

Cluster

Reverse Engineering Using “Point Cloud” and CAE, CAD

Dr. N. P. Gantayet, Consultant to National Institute of Design discussing Design Issues with MSME Units

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Evening: Prof Nanda took up the refrain of Day 1, suitably modified to suit the mixed audience.

Point Cloud is a method of creating a 3D CAD model based on scanned coordinate of a

non linear surface, especially useful in Reverse Engineering and Redesign

o The method consists of fitting equations to data using an estimator like Sum of

Squares. The mathematical analysis is same as that used in Response Surface

Methodology by most students of science and engineering, quality control

engineers, Computer Aided Manufacturing and engineering optmisation.

o It is a commonly used to make inferences on experimental data, such as optimal

design of the plough that follows a family of curves y = exp (ax + b), where the

constants a and b depend on characteristic of soil

Point Cloud can be generated by a set of equations in regions where discontinuity of

mathematical functions is experienced, such as making components of die or mould

o Many parts need a change in material of construction to FRP, such as Seed Drill.

Making moulds would benefit if the surface was developed using point cloud

o Many equipments having non linear motions (inverse kinematics) can use point

cloud methodology, such as robotic applications

Use of sensors and electronic components to measure rate of flow of material like

seeds, or fertilizer, or organic material, functions as a Point Cloud generator

o Non linear surfaces having engineered friction characteristics could sort and

grade material, such as separation of broken grains of rice from whole grains

during the rice milling of basmati. Currently accomplished manually using

bamboo. (Note: jigging Unit Operations use Monte Carlo simulations and Markov

Chain analysis instead of Sum of Squares method).

In general, methods and techniques of plotting and analysing experimental data to fit a family of

equations, or a series function like Jacobian, Fourier, normal distribution, or Poisson distribution

has been adapted into manufacturing engineering. Data points of a scanned surface are used

as experimental data, i.e. a value obtained from some measuring instrument.

The other feature of point cloud is that most of the procedures of manufacturing engineering as

well as Unit Operations are done in computerised workstations. This makes it women friendly.

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The Stakeholders of Agro Processing Design

Mr. Swaraj Mohanti, cluster organiser of Farmers, picked up the issue of pricing and price

structure of the distribution system.

Techies MSME Entrepreneurs Farmers Academy

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Opinion on this was sharply divided, with farmers wanting higher productivity with greater extent

of mechanisation, and others from the Academy and Design Experts opting for greater Value

Addition in farm with processing.

To support greater productivity, farmers reiterated the concern for middleman taking away all

the margins of increase in prices, rising cost of labour, and unavailability of labour. Value added

activity would need skilled labour, and with labour scarcity, it would be a dicey proposition.

In support of Value Added activities, Academy and Design Experts pointed out reduction of

wastage (around 35-40%) would increase turnover and offset rising cost of labour with only

marginal investments.

Dr. Kalpana Raiguru, Guest Speaker, shared her experience of (sour) pineapple processing in

micro enterprises of Gajapati district. Shri Saroj Patnaik shared the experience of Bilati Orissa, a

Rs 20 crore investment in Agro Processing for making tomato and mango pulp suitable for

export. Both these experts supported widely distributed Agro Processing at cluster level.

CONCLUSION When a debate is not conclusive, but both argument and counter argument have sound reasons

with supporting facts and common information, it generally indicates stable asymmetry as in

summer/winter, carrot/stick, or steady state turbulent flow in churning and mixing. In general,

Agro Processing faces a lot of risks due to seasonal availability of the raw material, and great

variation in the prices of the raw material, but stable MRP (Maximum Retail Price) for the

processed product. Margins are very low for individual processors, and economies of scale

make investments prohibitively high, which acts as a barrier. Individual processors have to

invest in upstream operations like cold storage, and working capital finance for procurement and

social engineering to get cooperation from SMF (Small and Marginal Farmers).

The direction of optimal scale of operation appears to be to make it into a cluster level activity

on a lower scale of operation rather than depend on Mega investments. The advantage is risks

would even out through a portfolio of products. Clearly, grounding such activities in a cluster

would need a cross cutting game changer, such as gender sensitivity of incentive structure and

making workstations women friendly. These strategies dovetailed to Skill Building and extension

activities by Cluster Development Actors, preferably women knowledge workers with technical

skills, would be the focus of design interventions, and strategising design solutions.