Ramdas Jadhav

Reverse Logistics is the process to bring back products from consumer or customers to orgin of supplies. 
 
Reverse Logistics is need of certain business and industries where products once sold to customer need to be transport back to orgin or Seller's premises for example Medical Devices, high end electronic devices which need to be transport back to seller's premises if there is any failures, fault or exchange required within warranty period. Now days Reverse Logistics is part of e-Commerce sites like Amazon, Flipkart, Myntra where customers are not sure about the physical product appearance. So Sellers assures return or exchange within certain time.
 
Just to give example from personal assignment. We were in business of Premium Dental Implants. This brand is Inventor of Osseointegration concept and Pioneer in this segments and offers life time warranty. 
 
Most of Implantologist/ Dentist are train by this company as there is no formal academic course on Dental Implantology in  Dental Medical Colleges. This company's Training and Education team conduct courses for Dental Colleges or Professional Dentist who want to upscale their practices from traditional Root canals to Dental Implantology and Prosthetics. 
 
With vary physical condition of patients and Upper Jaw and Lower Jaw structure, multiple times Dentist are not sure about the size of Implants which may be right fit. Hence they always orders implants and related prosthetics in excess of 1:3. As patients surgery can not be postponed due to lack of implants are related material. While placement of Dental Implant they can Check and use the right size and return unused Dental Implants which are very costly to Seller Company to get the credit notes. so 30% of Sold Dental Implants and related restoration material comes back to Seller warehouse/ Origin for exchange or return. In addition there will be failed implants either due to Patients condition like Diabetic, Oral health Hygiene Issues. Company need to analyze these failed implants cases and submit Report to Medical Authority ( FDA) called as Post Market Surveillance. 
 
Here LSS help me in two areas 
 
1. Analysis of Data Points - Failure Analysis and submission of the data to Central Clinical Research team timely. As this process was complicated as Reverse logistics of failed implant from patients mouth can be health hazardous material. so it need to be sterilize and transported back to research center in Europe within 48 hours from reporting of failure. LSS helped to Deploy Control Chart on reporting timelines, packed condition, Patients information .
 
2. Value Stream Mapping: Since Dental Implant industry in highly un organized indian Market. There were lots of compliance issues  while return or exchange or Implants  with threat to cancelation of License to operate. So we did through process flow mapping and introduce Reverse Logistic process with help Professional 3rd Party vendor i.e DHL. Process was similar to Car Service where Dentist need to confirm and share the photos or product returned with DHL to get credit note with 72 hours from return. 
 
The above points provide competitive advantage to company as process was simple, transparent, fast and accurate for Dentist and their account receivables were getting reconciled within 72 hours also it provide them facility to  get all possible options/ products to complete Patients surgery within time without any hassels.
 
 

Leavy Jennings chart are a very good way of visually representing QC data providing indication of the performance of an assay. This graphic tool is used in monitoring controls and ensuring that they within desired limits.
 
The L-J Chart allow us to plot the data and records of periodic measurement of quality control samples and then it analyze whether data points are within acceptable range. Chart also highlights outliers with mean and standard deviation between 1 to 3 within (+-3SD) so it will have
 
1.  Time value on X Axis
2. Measured value from quality control samples on Y Axis 
3. Horizontal line indicating the mean ( Average)
4. Standard Deviation line indicating acceptability of range.
 
Leavy Jennings charts are simpler to detect trend, shifts or outliers but can only work for individual test performance and can not be account for interaction between different test and process.
 
IMR chart are more powerful when it used for general purpose to understand complexity where individual  measurement and their range is critical for overall process control.
 
Unlike L-J chart IMR chart can not be tailor made for Laboratory experiments.  It is also required statical knowledge and  training to understand and interpret moving range and control limits. 
 
L- J Charts are used in healthcare industry or laboratory experiment to ensure that  test methods are accurate and stable , Where as IMR Chart are used for Industrial or manufacturing set up.  
 
 
For Diabetes testing L-J Chart can be helpful to monitor blood glucose testing. for that we can 
 
1. Established Control limits  i.e. Mean glucose concentration of the QC sample = 100 mg/dL and standard deviation ( SD) is 5mg/dL.
 
2. We can set up L-J Chart with Time on X Axis and Y Axis as glucose concentration levels and mean value line 100mg/DL and SD lines between 1 to 3 SD.
 
Suppose we take 10 days data and glucose concentration level values are 98, 101, 100, 99, 95, 97, 103,102, 104, 96 mg/ dL. Most of the value are within +- 2 SD that mean testing process is in control. 
 
Benefits of using L-J Chart 
Early detection of issue will help correction which is vital for effective management of diabetes.
 
 
 

Payback period is one of the simplest method to measure project profitability and risk.  Payback period simple meaning is time taken to recoup the initial investment.  It is useful when company has limited resources and need to know how quickly they will recover their investment. 
 
Calculation of payback period = Initial investment / Annual cash flow. 
 
Since payback period is very simple compare to other investment investment or project appraisal techniques.
 
a. for example IRR ( Internal rate of returns) help to analyze and compare the incremental profit  in terms of rate of returns Vs. Risk to be taken for example. if we invest same amount of money in to Financial market ( Equity/ Debt) we may get average 10% IRR Vs. Project should reflect 5-7% incremental returns for efforts, time and risk taken on the project to justify the project selection. 
 
b, Net Present Value indicates difference between present value of cash inflow and cash outflow. Here NPV of any project negative then you should not accept the project is thumb rule.
 
While projection selection all three method or financial metrics can be use but payback period suits to organization with limited resources and high intensity cashflow/ liquidity requirement. 
 
Lets understand advantages and disadvantages of using Payback period while project selection.
 
Ram wanted to open Small Cafe. He needs 1000000 ( 10 Lakhs) as initial investment. He tells his friends and relatives invest in this business as it will give him 100000 ( 1 Lakhs) profit every month. 
 
Payback period = 10 Lakhs/ 1 Lakhs = 10 Months.  Now the funny part 
 
1st Month Ram Open Cafe earns 1 Lakhs 
 
2nd Month there was big event like fun fair, exhibition happened near to his cafe. Profit for this month increase to 2 Lakhs. 
 
3rd Month there was coronavirus 2nd Wave hit and all shops, cafe were closed for month. So No Profit.
 
4th Month, 5th and 6th month his profit was again 1 Lakh per month.
 
7th and 8th Month there was 3rd Wave of COVID 19 so no profit
 
9th and 10th Month there was bulk order from big corporate event leading to profit of 3 Lakhs .
 
So Profit so far is 9 Lakhs and still need 1 more lakh profit for Break even. Considering up and down his relative were very happy and start taking more bets on his idea and encouraging him to expand his cafe chain by opening 1 more outlet, delaying the payback further. 
 
So learning here payback period is simple and help assess risk of investment but it ignore
 
1. Time value of money 
2. Cash flow after payback 
3. Doesnt measure profitability. 
 
 
So Payback period is useful when liquidity is highest priority .