L&T Defence's Digitisation Is Finally Paying Off - Forbes India

2022-07-16 02:04:28 By : Mr. Frank Yan

 JD Patil, whole-time director and senior executive vice president, L&T’s defence business and new age smart technology businesses W hen it comes to hitting a target at war, whether on land, in the sea or in the air, precision is everything. Miss, and you in turn become the target because you have revealed yourself and your position. From warships to submarines and unmanned armoured systems to missiles, precision is what also comes into play while manufacturing these defence capabilities at Larsen and Toubro’s (L&T) plants across India—with the use of Industry 4.0, including automation, Internet of Things and artificial intelligence. Take, for instance, the process of building a ship. The metal fabrication and cutting of plates happen through a server connected to the final cutting machine using CNC (computer numerical control), where a machine processes the material with precision in order to meet specifications by following programmed instructions—without a manual operator directly controlling the machine operation. Even as the material is being fabricated, a laser scanner keeps an eye on the dimensions and integrity, so that the smallest distortion or slightest variation from the original dimensions is corrected before the job is finished. Related stories How Nokia became the invisible force of Indian telecom BC TO PC: How HP toppled Lenovo to reclaim the PC crown during the pandemic years Dixon Technologies: From a single factory in 1993 to a Rs 10,700 crore electronic manufacturer for the world And while conventional methods would involve building of the hull and decks, then cutting through the decks to put in the cables, pipes and equipment and welding it back again, at L&T’s plants, the process involves the coming together of sections and blocks, with pipes, cables and equipment being fitted in at various stages alongside. Sections come together into blocks, blocks into mega blocks and then superblocks, four of which would make the entire ship. “So before the ship is fully assembled or the hull is assembled, you have more or less 80-85 percent of the work on the ship complete,” says JD Patil, whole-time director and senior executive vice president for L&T’s defence business and new age smart technology businesses. Digitalisation of processes means that every single nut, bolt and washer is accounted for, and every pipe and cable is barcoded to fit in the right place—a system that would appear to work particularly well in the making of submersibles and submarines. The physical fitments (or components) in the case of warships and submarines, points out Patil, can be anywhere between a few lakhs to 25 lakhs. “The total bill of material in case of a complex platform with their physical fitments, including, say, a smallest lock and washer or a nut and a bolt can run into millions,” says Patil. When you have a few million parts, it matters that you know the precise weight and its effect on the CG (centre of gravity) in the overall ship, because otherwise you produce a ship which may lean on any one given side. This might not be as critical on warships, he adds, but it is critical in the case of submarines since the difference between weight and buoyancy is less than five percent. “If the weight goes higher, the submarine will never surface.” Also read: Why India isn't a global manufacturing hub L&T’s defence business took the path of digitalisation almost over a decade before anyone was even talking of digital. A couple of factors came together for this. In 1992, when L&T was still a small ₹1,000 crore business, the company secured a one-time licence to build four oil and gas platforms. The deadline for the contract was 14 months, a tall order. But the signing process took two months, giving them a cycle time of 16 months, and they finished ahead of schedule. Not only did they save on LD (Liquidated Damages, which for them as beginners was 10 percent), but they also made a substantial profit. While this was a contract for what was to later become L&T Hydrocarbon (in a different department), Patil’s team, which had earlier worked with Dr APJ Abdul Kalam to build weapon systems and had been doing development work for the Defence Research and Development Organisation (DRDO), had realised the importance of using 3D rather than 2D designs for these projects, something that would require considerable research and development investments. “So that profit, and my requirement to make these investments, more or less came at the same point in time. My boss at that time, KV (K Venkataramanan, then CEO and MD of L&T), was rolling in money having saved his LD and he said, ‘What all do you want, tereko kya chahiye?’” says Patil, snapping his fingers in his office in Powai, Mumbai. “You can’t do complex systems without a full-fledged 3D environment. And to put money behind it, we needed a couple of crores, and a couple of crores was readily coming.” That, says Patil—who joined the company through a campus placement from IIT-Bombay over four decades ago, and who then headed R&D—paved the way for “differentiated engineering” in the company. In 1992, they moved to 3D design. “We made an environment where you do the design and the analysis. Production was a loose end, because you couldn’t do production. After design analysis, you would take a drawing extraction (the drawing taken as an extract from the 3D models) and give it to the shop floor,” recalls Patil, who spearheaded the company’s foray in the defence sector since the inception of this segment in L&T in the mid-80s. Considering the risks associated with the sector they operated in, around 2007-08, the business migrated to looking at drawings only on screen, and the entire documentation process of making and checking too shifted to digital. The K9 Vajra-T programme was executed at L&T’s Armoured Systems Complex in Hazira, Gujarat A couple of years down the line, the investment in technology and move to 3D led to a project for full-fledged submersibles, “very complex jobs, completely undoable without 3D”. While they had been doing weapon systems for the DRDO, in 1995 they also started doing projects for the Navy. “Today there are about one-and-a-half dozen classes of weapon systems that we develop that are used by the Navy,” says Patil. Though participation of the private sector in defence was still a few years away—the government cleared the decks in 2001—the company continued to invest in technology and build facilities. The defence business, initiated in Powai, had units at Hazira in Gujarat and in Baroda, and subsequently another four full-fledged defence units were created. In 2006-07, they commissioned a factory in Talegaon near Pune for weapon and engineering systems and equipment for the armed forces, while in 2010, they designed and built a shipyard in-house at Kattupalli near Chennai. “We built another ultra-high precision manufacturing unit in Coimbatore, which then became the manufacturing unit for missile sections and systems,” says Patil. The team at Coimbatore also manages realisation of rocket motors and solid and booster stages of PSLV rockets. Another R&D centre, a satellite of the one in Mumbai, was also created in Bengaluru. The latest addition to the AM Naik Heavy Engineering Complex in Hazira is the Armoured Systems Complex (ASC), a 50-acre facility created to manufacture, integrate and test advanced military armoured platforms such as self-propelled howitzers, infantry combat vehicles, future-ready combat vehicles and battle tanks. It is here that the K9 Vajra-T programme was executed, 100 K9s delivered, as per a ₹4,500 crore defence contract, to the Army ahead of schedule. “In fact, for K9, we took Industry 4.0 and automation to a level where the first hull we produced typically took 100 hours of resources in terms of time or manpower hours. By the time we reached about the 20th, we had come down to close to 1/3rd [time taken],” says Patil. By the time they had crossed about 40 hulls, it had come down to 20 percent, and the tank programme was finished and delivered ahead of schedule.   These processes require a lot of research, development, time and effort at the design stage but they pay off amply on the shop floor. It is, says Patil, like the well-known story of the tree-cutter. “You sharpen your axe so much that you spend half the time and effort in sharpening the axe, but you cut the tree faster.”   

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(This story appears in the 15 July, 2022 issue of Forbes India. To visit our Archives, click here.)

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