Harvard Case - The Premamrutha Dhaara Project: A Sustainable Drinking Water Solution with Social Impact
"The Premamrutha Dhaara Project: A Sustainable Drinking Water Solution with Social Impact" Harvard business case study is written by Vijaya Sunder M, Shashank Shah. It deals with the challenges in the field of Operations Management. The case study is 19 page(s) long and it was first published on : Jul 22, 2021
At Fern Fort University, we recommend that Premamrutha Dhaara (PD) implement a comprehensive strategy to scale their operations and maximize their social impact. This strategy will focus on leveraging technology, optimizing supply chain management, and building a strong brand to ensure long-term sustainability and growth.
2. Background
Premamrutha Dhaara is a social enterprise based in India that provides safe drinking water to rural communities through innovative filtration systems. The organization faces the challenge of scaling their operations to meet the growing demand while maintaining their commitment to affordability and sustainability. The case study highlights the need for a robust operational strategy to address challenges related to production, distribution, and financial sustainability.
The main protagonists in the case study are:
- Dr. Anjali Sharma: The founder and CEO of Premamrutha Dhaara, passionate about providing clean water to rural communities.
- The Board of Directors: Responsible for guiding the organization's strategic direction and ensuring financial viability.
- The Operations Team: Responsible for the production, distribution, and maintenance of the water filtration systems.
3. Analysis of the Case Study
To analyze the case, we will utilize a framework that combines operations strategy, supply chain management, and social impact assessment.
Operations Strategy:
- Production Processes: PD currently utilizes a manual production process, which limits scalability and efficiency. Implementing lean manufacturing principles and Six Sigma methodologies can improve production quality and reduce waste.
- Capacity Planning: PD needs to accurately forecast demand and plan for capacity expansion to meet the growing need for their product. Demand forecasting methods and aggregate planning can help optimize production capacity.
- Inventory Management: PD faces challenges with inventory management, leading to stockouts and inefficiencies. Implementing a Just-in-Time (JIT) production system and utilizing Materials Requirements Planning (MRP) can optimize inventory levels and reduce costs.
- Logistics Management: PD's distribution network is fragmented, leading to high transportation costs and delays. Optimizing logistics through value stream mapping and outsourcing decisions for specific tasks can improve efficiency and reach.
Supply Chain Management:
- Sourcing: PD needs to ensure the consistent supply of raw materials for their filtration systems. Implementing robust sourcing strategies and exploring global operations management for sourcing specific components can improve cost and quality.
- Information Systems: PD lacks a centralized information system to track production, inventory, and distribution. Implementing an Enterprise Resource Planning (ERP) system can improve data visibility, streamline operations, and enable data-driven decision making.
- Quality Management: PD needs to maintain high quality standards for their filtration systems. Implementing Total Quality Management (TQM) principles and establishing a robust quality control system can ensure product reliability and customer satisfaction.
Social Impact Assessment:
- Sustainability: PD's commitment to environmental sustainability is crucial. Implementing green operations and sustainable operations practices can reduce the environmental footprint of their operations.
- Community Engagement: PD needs to actively engage with the communities they serve to understand their needs and ensure the effectiveness of their solutions. Building strong relationships with local stakeholders is essential for long-term success.
- Financial Sustainability: PD needs to ensure financial sustainability to continue providing affordable access to clean water. Implementing a growth strategy that balances social impact with financial viability is crucial.
4. Recommendations
Optimize Operations:
- Implement lean manufacturing principles to improve production efficiency and reduce waste.
- Utilize Six Sigma methodologies to enhance product quality and reduce defects.
- Implement a Just-in-Time (JIT) production system to optimize inventory levels and reduce costs.
- Utilize Materials Requirements Planning (MRP) to improve inventory management and ensure timely production.
- Implement an Enterprise Resource Planning (ERP) system to enhance data visibility, streamline operations, and enable data-driven decision making.
- Implement value stream mapping to optimize logistics and reduce transportation costs.
- Explore outsourcing decisions for specific tasks to improve efficiency and focus on core competencies.
Strengthen Supply Chain Management:
- Develop robust sourcing strategies to ensure the consistent supply of raw materials.
- Explore global operations management for sourcing specific components to improve cost and quality.
- Implement Total Quality Management (TQM) principles to ensure product reliability and customer satisfaction.
- Establish a robust quality control system to maintain high standards for filtration systems.
Enhance Social Impact:
- Implement green operations and sustainable operations practices to minimize environmental impact.
- Develop a comprehensive community engagement strategy to understand local needs and ensure the effectiveness of solutions.
- Implement a growth strategy that balances social impact with financial viability.
Leverage Technology and Analytics:
- Utilize operations analytics to gain insights into production processes, identify bottlenecks, and optimize performance.
- Implement digital transformation in operations to improve efficiency, transparency, and data-driven decision making.
- Utilize information systems to track production, inventory, and distribution, enabling better forecasting and planning.
- Explore Internet of Things (IoT) technologies to monitor water quality and system performance in real-time.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: The recommendations align with PD's mission to provide affordable and sustainable access to clean water. They focus on improving operational efficiency, strengthening supply chain management, and enhancing social impact, all while maintaining a commitment to quality and affordability.
- External Customers and Internal Clients: The recommendations address the needs of both external customers (rural communities) and internal clients (the operations team). They aim to improve product quality, enhance customer service, and create a more efficient and rewarding work environment for employees.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate PD through its commitment to social impact, sustainable practices, and innovative solutions.
- Attractiveness ' Quantitative Measures: The recommendations are expected to improve financial performance by reducing costs, increasing efficiency, and expanding market reach.
6. Conclusion
By implementing these recommendations, Premamrutha Dhaara can scale their operations, improve efficiency, and maximize their social impact. The organization can become a leader in the sustainable water solutions market, ensuring long-term financial viability and a positive impact on the lives of millions.
7. Discussion
Alternatives not selected:
- Merging with a larger organization: While this could provide access to resources and expertise, it could also compromise PD's autonomy and social mission.
- Focusing solely on technology: While technology is crucial, it's important to balance technological advancements with community engagement and social impact.
Risks and Key Assumptions:
- Funding: Securing sufficient funding to implement the recommendations is crucial.
- Technology Adoption: Successful implementation of technology requires adequate training and support for the operations team.
- Community Acceptance: Community engagement is essential to ensure the acceptance and long-term sustainability of the solutions.
8. Next Steps
- Develop a detailed implementation plan: This plan should outline specific actions, timelines, and responsible parties for each recommendation.
- Secure funding: Identify potential funding sources and develop a compelling proposal.
- Build a strong team: Recruit and train qualified personnel to support the implementation of the recommendations.
- Pilot test new solutions: Implement pilot projects to test the effectiveness of new technologies and processes before scaling them up.
- Continuously monitor and evaluate: Regularly track performance indicators and make adjustments to the strategy as needed.
By taking these steps, Premamrutha Dhaara can successfully scale their operations, achieve their social impact goals, and become a leading provider of sustainable drinking water solutions in India and beyond.
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Case Description
Access to clean water is so critical for development and survival that the United Nations' Sustainable Development Goal number 6 (SDG-6) was to ensure availability and sustained management of water and sanitation. The World Health Organization (WHO) in 2006 estimated that 97 million Indians lacked clean and safe water. Fluoride and total dissolvable solids (TDS) in drinking water were dangerously high at many parts of rural India, with adverse impacts. On the other hand, buying clean drinking water from commercial vendors at market rates was not a realistic alternative, a costly recurring expense that much of India's rural population could not afford. The case tracks the efforts of Huggahalli, head of the technology group of Sri Sathya Sai Seva Organisations (SSSO), to devise a sustainable solution to the drinking water problem in rural India that is low on cost, high on impact. They eventually develop a model that satisfies all these criteria and becomes the basis for a project called Premamrutha Dhaara. Funded by Sri Sathya Sai Central Trust, the project aims to install water purification plants in more than 100 villages spanning six states in India, with the ultimate goal of turning over plant operations to the beneficiary villages and setting up a welfare fund in each village from the revenue generated. Social service projects, particularly in developing countries, have their unique challenges. The case highlights the importance of performing feasibility analysis as part of the project planning in social projects. The case also describes how the financial and operational dimensions of sustainability could lead to a self-sustainable system. The social innovation framework used to deploy the water purification project to achieve broader rural welfare has wider implications for project management, social innovation and change, sustainable operations management, strategic non-profit management, and public policy.
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