A 2007 Proposal to Investigate the Process of Converting Human Waste into Bio-fuels

Utilizing rail passenger human waste in generating bio-fuels

A draft proposal [1]

Som Karamchetty [2]

Summary:

            Over four billion passengers traveling in Indian trains will mean a huge human waste disposal problem for the Indian Railways. Indian Railways and their engineers and consultants are working on modern and hygienic disposal solutions. By transmitting the waste to suitable locations and transforming it into usable manure to raise bio-fuel crops will lead to the production of bio-diesel, which can be used by the Indian Railways. This proposal suggests a technical feasibility and economic viability investigation.

Problem:

            Disposal of human waste generated by passengers traveling on trains in India has been a major problem for a long time. As India is at the threshold of becoming a developing country, Indian Railways will have to give a high priority to address this problem. As passenger traffic increases and as international tourist potential is realized, Indian Railways is addressing this problem.

Background:

            Indian Railways carried 4,833 million passengers per year in 8,520 passenger trains over 63,000 route kilometers. [3] The logistics of disposal of human waste generated by over 13 million train passengers daily can be daunting. It can impact the hygiene and health of passengers, railway staff and personnel, and communities through which the rail tracks pass.

Current Developments:

            The Indian Railways and its R&D personnel are addressing this problem. We understand that there are currently research projects, with the objectives of designing, developing, and installing advanced toilet systems in rail passenger compartments. [4] The new designs will enable easy cleaning, collection, handling, and transportation of the waste in cartridges. In the current plans, the final disposal of the waste is assumed to be by traditional means.

Technical Approach:

            We suggest a novel approach in the disposal method rather than the conventional methods. The suggested approach consists of a) converting the waste into an organic fertilizer, b) using the fertilizer to raise crops, and 3) producing bio-fuels from these crops.

We present a brief description in the following paragraphs. As the trains travel from city to city, the cartridges with the waste are downloaded at every 300 to 500 kilometers. The downloading locations are selected such that there is sufficient barren land available to site a conversion plant. We also look for sparsely populated areas. Here the waste is converted to an organic fertilizer. The technology to convert waste to organic fertilizer is readily available. (See references at the end of this white paper.)

The organic fertilizer is usually considered very clean if completely treated, but is generally not recommended for edible crops. In the western nations, this fertilizer is used to grow lawns and flowers. But in India, lawns are not popular and growing flowers with this fertilizer will not be acceptable on the basis of religious and cultural considerations. Hence we suggest the use of this fertilizer to generate plants that produce bio-fuels. Again, the science and technology to grow plants with manure generated from human waste is well known. The environmental aspects are very important in this project. This is an area where people will say, ‘not in my backyard” for projects of this type. Although everyone contributes to the initial problem, no one will like to be the solution. Some projects in the Western countries have received bad publicity as the treatment of the wastes was not done to completion and with care. This project will have to address such issues for the project to succeed and be acceptable.

The next step is to produce bio-fuels or bio-diesel from these plant materials. This technology is also readily available. The final step is for the Indian Railways to procure the bio-diesel from the plants and either use it in its own system or sell it to other users.

Business Model:

            Indian Railways are in a unique position to facilitate the complete business cycle for this process. As owners of the transportation links, the Railways can collect, handle, transport, and deliver the waste to the fertilizer conversion plants. Indian Railways may install between 200 and 300 conversion plants at locations alongside its tracks. Again, adjacent to each of these plant locations, the Railways can lease to bio-plant farmers its own land or other fallow land after acquiring it. Then, the Railways can set up bio-diesel production plants at these sites and lease them to bio-diesel producers. Finally, Railways can buy the bio-diesel to transport to points of use. The Railways may use the fuel in its locomotives or sell it to other users depending on the market. Initial plants may be owned by the Indian Railways while future plants can be developed using the franchise model. With the Railways being the supplier of the raw material and the buyer of the end product, it will be in a unique position to facilitate the business.

A recent report suggests that the locomotive fleet of the Indian Railways consumes around 200 billion litres of diesel fuel annually. [5] To cut down on the costs, the Railways are looking at bio-diesel blended with petro-diesel as an alternative fuel, according to this report.
            The systems technology and business model developed can be very useful to the Urban development and Rural development organizations in India and abroad.

Feasibility Study:

            It is important to conduct a feasibility study of the technical approach and the viability of the economic aspects of the proposal. A study will include the following tasks along a timeline shown in Figure 1.

Figure 1: Schedule of Tasks for Waste to Bio-Diesel Study and Design

Brief Description of Tasks:

1. Propose Phase I

            After consultations with the Indian Railways and their R&D staffs, a detailed proposal to investigate the feasibility of converting human waste from passenger trains in India into fertilizer for use in raising bio-fuel crops and to process the product into bio-diesel will be developed. This proposal will develop a realistic schedule, deliverables, and budget.

2. Brief Indian Railways PM

            The proposal manager and the team will brief the Indian Railways Program Manager to establish rapport and to define Indian Railways furnished items and services. This meeting will ensure that the Program Managers expectations and any limitations are taken into account by the investigating team. Amendments to the proposal will be made based on this meeting.

3. Design a Conversion Plant

            The investigating team will conduct a literature survey of waste to manure (fertilizer) sciences and technologies, select an appropriate technology for the feasibility investigation, and design a plant for the conversion process. The team will make a preliminary cost estimate and recommend a selected list of candidate firms for building a pilot plant.

4. Design a Bio-Plant Farm

            The team will conduct a literature survey of bio-plant farms to utilize the manure and to raise bio-fuel plants, such as Jathropa, and Pongamia. The team will make a selection of a farm size and crop.

5. Design a Bio-Diesel Plant

            The team will conduct a literature survey of bio-diesel production technology, design a production plant, and recommend a list of selected firms to build and install a bio-diesel plant.

6. Analyze Logistics

            The team will analyze the passenger traffic on the Indian Railways and the transportation or logistics of human waste collection and transport. This study will be conducted in cooperation or partnership with the current designers of the proposed new toilet systems for the Indian Railways.

7. Design site locations

            The team will use the logistics from the above task, and the current land use patterns along the rail corridors, and make a selection of several sites to locate the waste conversion plants and bio-plant farms. The environmental sensitivity of the local areas will be taken into account in the selection study.

8. Conduct economic study

            The team will study the overall economics of the proposed project using the logistics data and information, equipment and operating costs of the conversion plants, bio-farms, and the bio-diesel conversion plants, avoided costs of other disposal methods of human waste, and the revenues from the sale of bio-diesel fuel.

9. Make recommendations to Indian Railways

            Based on the results of the study and analysis, the team will make recommendations to the PM and leadership of Indian Railways. Comments and directions from the leadership will be used in the revisions of the report.

10. Prepare report

            The team will prepare a final report and submit it to PM Indian Railways.

11. Propose Phase II

            Based on the results and recommendations of the Phase I, and guidance from the IR leadership, a Phase II proposal to run a pilot plant will be developed and submitted.

12. Set up a pilot plant

            As described in the Phase II proposal, a pilot plant will be built, commissioned, and operated.

13. Operate and Evaluate Pilot Plant

            The team will operate the pilot plant and test data, and results will be delivered periodically. Occasional demonstrations and plant and farm tours will be given to visitors and dignitaries as designated by the PM Indian Railways.

Deliverables:

            Monthly progress reports via the Internet and oral presentations will be delivered at the end of each month during the project. These reports will describe the status and progress of the various tasks in the project.

Risks and Assumptions:

            Although the human waste disposal problem itself is a very sensitive one, the solution approach suggested requires a high degree of pragmatism and sophistication.  There is always a risk of over estimation of the acceptance of the technology at the local levels. While the Team will be very sensitive to these issues, it may take more time than expected for the technology to mature and the people’s acceptance to be realized.

Team Composition:

            For the proposed project to succeed, the team will be formed from premier institutes in India, with researchers, designers, and operators drawn from the following specializations: Logistics, sanitary engineering, mechanical engineering, civil engineering, environmental engineering, chemical engineering, agricultural sciences, public relations analysis, plant operation and maintenance, and project management.

Benefits and Conclusion:

            The proposed scheme and business model have several benefits. Indian Railways will be able to contribute to the disposal of the human generated waste from its compartments in an environmentally satisfactory manner. In the process, it is likely that the Railways will save on disposal costs and contribute to the development of waste to bio-fuels technology. The Railways would also be creating a number of entrepreneurs by franchising the plant operation.

            Indian Railways should undertake this project, and contribute to its success by taking a leadership role in this sector in India and the world.

References and Bibliography:

Digesters and Conversion:

http://www.synagro.com/
http://wrightreports.ecnext.com/coms2/reportdesc_COMPANY_871562203
http://www.lagooncleanout.com/
http://www.answers.com/topic/synagro-technologies-inc?cat=biz-fin
http://www.biosolids.org/news_weekly.asp?id=1886
http://www.metrotimes.com/editorial/story.asp?id=5976
http://www.hoovers.com/american-water/--ID__10104--/free-co-factsheet.xhtml
http://www.hoovers.com/n-viro-international/--ID__16632--/free-co-factsheet.xhtml
http://www.hoovers.com/wheelabrator/--ID__15161--/free-co-factsheet.xhtml
http://www.onvia.com/industries/case_synagro.asp
http://promotions.onvia.com/documents/sales/OnviaCaseStudy_Synagro.pdf
http://www.freepatentsonline.com/6641638.html
http://www.realneo.us/blog/sudhir-raghupathy/human-and-animal-waste-to-save-the-world-the-ultimate-biorecycling-solution
http://www.eeb.cornell.edu/biogeo/epa-star/pubs/schaefer%20GWRC%20paper.doc
http://journeytoforever.org/compost_humanure.html
http://journeytoforever.org/farm_library/howardAT/ATapp3.html
http://www.howtocompost.org/
http://www.jenkinspublishing.com/humanure.html
http://www.worldwatch.org/node/1612
http://www.pubmedcentral.nih.gov/articlerender.fcgi?artid=1459950
http://www.cqs.com/esludge.htm
http://www.freepatentsonline.com/CCL-71-15-p2.html
http://www.policyalternatives.ca/index.cfm?act=news&do=Article&call=986&pA=AE5DAA5F&type=3
Waste Transportation:
http://www.synagro.com/services/rail.html
http://sec.edgar-online.com/2005/04/27/0001047469-05-011593/Section18.asp
http://www.greenenergylive.com/waste_handling.html
Environmental impact of bio-solids:
http://www.perc.ca/PEN/2001-02/s-mills2.html
http://www.casella.com/neo/v2/story.asp?ID=41
http://findarticles.com/p/articles/mi_m1571/is_11_18/ai_84184981/pg_2
http://www.houstonpress.com/2005-03-31/news/wretched-excess/
http://www.mindfully.org/Farm/Sewage-Sludge-Health-Fears.htm
http://www.nctimes.com/articles/2006/01/04/news/californian/20_51_051_3_06.txt
http://www.edf.org/documents/2543_FactSheet_MuniWaste.pdf
http://www.answers.com/topic/waste-management
http://www.wwdmag.com/N-Y-Human-Waste-Raises-Stink-in-Alabama-newsPiece14567
http://www.cbc.ca/news/story/2000/06/02/000602human.html
http://www.faran-co.com/wastewatertreatment.htm
http://courses.arch.hku.hk/IntgBuildTech/envctrl/KPC_pub/sewtreat1.html
http://www.marinet.org.uk/ukbw/sewage.html
http://realtytimes.com/rtcpages/20000727_recycle.htm
http://www.greensmiths.com/
http://www.freepatentsonline.com/5192428.html
http://www.arctech.com/pdf_files/humasorb_brochure.pdf
http://books.google.com/books?id=dPLzt5uyNAcC&pg=PA320&lpg=PA320&dq=human+waste+conversion+fertilizer&source=web&ots=SL71MIe6HA&sig=aDM6WEZlCI3HtXrWBhJ_WRdBehQ#PPP1,M1
Composting Toilets:
http://en.wikipedia.org/wiki/Composting_toilet
http://www.worldchanging.com/archives/006233.html
http://www.lboro.ac.uk/well/resources/technical-briefs/63-using-human-waste.pdf
http://www.clivusmultrum.com/about_system_process.shtml
http://www.cityfarmer.org/comptoilet64.html#toilet
http://www.weblife.org/humanure/
http://web.axilar.net/LarenCorie/composters1.htm
Bio-manure Application to crops:
http://www.bountifulgardens.org/
http://www.rural-development.de/fileadmin/rural-development/volltexte/2007/01/ELR_dt_24-26.pdf
http://allafrica.com/stories/200710161288.html
http://www.adb.org/Documents/Events/2005/Sanitation-Wastewater-Management/paper-jha.pdf
http://www.ias.unu.edu/proceedings/icibs/ecosan/jha-d1.doc
http://www.ecosanres.org/pdf_files/Taking_Care_of_Our_Ecosan.pdf
http://www.sulabhenvis.nic.in/About%20Sulabh.htm
http://www.sulabhinternational.org/pg01.htm
http://www.worldtoilet.org/articles/wts2001/Our%20Toilets%20-%20Indian%20Experience.pdf
http://www.teriin.org/dsds/2004/papers/abstract2.pdf
http://www.pr9.net/science/agriculture/6156august.html
http://www.prlog.org/10027752-biofuels-ethanol-to-get-help-from-manure.html
http://www.nrcs.usda.gov/TECHNICAL/ECS/nutrient/manureutil.doc
http://www.timesonline.co.uk/tol/life_and_style/commercial/article631462.ece
http://www.sustainabletable.org/issues/waste/
http://www.cbc.ca/health/story/2000/06/19/sewage000619.html
http://www.powells.com/cgi-bin/biblio?inkey=73-9780964425835-0
http://krrc.in/downloads/Newsletter26.pdf
http://gce-lter.marsci.uga.edu/lter/files/pubs/SSchaefer_GWRC_Paper_2005.pdf
http://www.futurecity.org/alumni_profiles_rhiannon.htm
http://www.factoryfarm.org/docs/a_blessing_of_the_past_century_22100.doc
http://www.marylandrecyclers.org/
http://www.swana.org/www/default.aspx
Bio-fuel technology and generating plants:
http://biotech.about.com/b/a/000021.htm
http://www.biofuelstp.eu/
http://www.ecotraffic.se/synbios/konferans/presentationer/19_maj/automotive/synbios_linnaila_raimo.pdf
http://wistechnology.com/article.php?id=2426
http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2007/03/11/BAGDBOJ7U81.DTL
http://www.scotland.gov.uk/News/Releases/2006/06/22095539
http://www.oregon.gov/ENERGY/RENEW/Biomass/biofuels.shtml
http://www.coloradoan.com/apps/pbcs.dll/article?AID=2007709160341
http://www.biofueltechnology.dk/
http://www.themanufacturer.com/us/content/5771/UOP_gets_DARPA_dollars_to_develop_biofuel_technology_for_military_jets
http://www.technologyreview.com/Energy/19199/
http://http-server.carleton.ca/~bgordon/Rice/papers/PENG-00.htm
http://www.guevent.com/recycle/biotech1.html
http://home.klis.com/~chebogue/p.com.Waste.html
http://journeytoforever.org/biofuel_library/MENintvus/singhintvu.html
http://bcn.boulder.co.us/basin/data/BACT/info/NO3+NO2.html
http://www.biosolids.org/news_weekly.asp?id=1931
http://www.biosolids.org/news_weekly.asp?id=1936
http://www.epa.gov/jtr/jtrnet/convsion.htm
http://mark.asci.ncsu.edu/NCPorkConf/2002/koger.htm
http://www.ciwmb.ca.gov/organics/Conversion/Events/CTWorkshop/DraftReport.pdf
http://www.autobloggreen.com/2007/08/17/sweden-using-seized-alcohol-animal-remains-and-human-waste-for/
http://www.sciencedaily.com/releases/2006/07/060729133523.htm
http://www.mbrservices.com/cooppartners/viewArticle.cfm?ID=1674
http://www.unu.edu/unupress/unupbooks/80434e/80434E0l.htm
http://en.wikipedia.org/wiki/Thermal_depolymerization

http://www.associatedcontent.com/article/33951/producing_oil_from_pig_manure.html

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[1]  Draft prepared for review and use by institutions in India.

[2]  Som Karamchetty, Potomac, MD, USA, somkdsr@verizon.net

[3] Source: http://www.indianrailways.gov.in/status-paper.pdf (current numbers will be greater than these 2000-2001 data.)

[4]  Based on private discussions with RDSO, Lucknow, and IIT, Kanpur researchers working on some Indian Railways projects

[5] Source: http://www.ibef.org/artdisplay.aspx?art_id=16935&cat_id=60

Discovering New Outsourcing Opportunities- a long paper prepared in February 2006

Discovering New Outsourcing Opportunities

Som Karamchetty [1]

Abstract

            Despite arguments about the merits and demerits of outsourcing, both the customers and suppliers have reaped its benefits. In the case of offshore outsourcing, businesses in the developed have reduced their costs and improved their competitiveness while the developing countries have gained millions of new jobs and vastly improved economies. Outsourcing can be done at a whole industrial process level or at the component process level. Morphological analysis allows us to dissect a mega-process in a business and look for alternative ways of conducting the component process and alternative performers. The alternative performers can be in India and benefit from less than mega-process outsourcing.

            Beginning with call center operations, the offshore outsourcing phenomenon has now engulfed IT, and many other high end processes. Healthcare, medical services, assisted living, and nursing homes are likely to be the next big opportunities on the horizon. In the next couple of decades, the US will have 78 million aged people requiring these healthcare services. Indian businesses can take advantage of this emerging outsourcing wave by analyzing the component processes in the health care business and by equipping the work force with the required knowledge, skills, and experience. That is a major outsourcing opportunity for India.

Introduction

            My aim in this article is to introduce Morphological Analysis as a tool to discover outsourcing opportunities. I will do this by first describing outsourcing and by introducing the Morphological Analysis. Indian businesses have been benefiting from outsourced work from developed countries. Owing to a cost advantage of 4 to 1 or 3 to 1 in favor of India, work is offshored to India. So far most offshore outsourcing directly benefited a number of major Indian cities and the benefits did not reach towns and rural areas. Urban areas, which are already overcrowded and expensive, suffer from a lack of infrastructure.

Within India, rural areas enjoy a cost advantage of 2 to 1 or 3 to 1 in favor of rural areas in certain respects. Therefore, we should examine the feasibility of outsourcing some tasks from cities to rural areas. One might undertake morphological analyses of several urban-based businesses to look for good candidates for outsourcing within the country.

            Several parties have a stake in such analyses. Businesses want to stay competitive and make profits. They should conduct an analysis and look for outsourcing opportunities for some of their component processes. Those businesses, which are looking for work in their areas of core competence, should conduct analysis of other businesses for outsourcing opportunities as part of their marketing efforts. Lastly, governments have a strong interest in such studies, because they are interested in uniform national development.

Brief Remarks on the Outsourcing Landscape

China and India benefited immensely from the outsourcing trend in the last two decades. Initially manufacturing jobs and subsequently, service jobs moved out of the developed nations. There are mixed views in the developed countries on whether outsourcing helped their economies or not. Businesses found that their bottom lines improved when they utilized cheaper resources from the developing countries through offshore outsourcing. However, those employees who lost jobs, and the states, which were impacted economically by the loss of tax revenue have negative views of outsourcing and offshoring. Here is a small sampling of some views on outsourcing.

Diana Farrell, Noshir Kaka, and Sascha Stürze [2] quoting from a Nasscom report [3] stated, “India's offshoring sector, the world's largest and fastest growing, is dominated by IT services, which play a major role in the country's overall economic growth. In 2004–05, the Indian offshore IT and business-process-outsourcing industry will generate approximately $17.3 billion in revenues and employ an estimated 695,000 people. By 2007–08, that workforce will consist of about 1,450,000 to 1,550,000 people, and the industry will account for 7 percent of India's GDP.”

            Initially, offshore outsourcing was restricted to call centers but gradually spread to business processes. A report in Siliconindia [4] says, “Seeking to cut costs, companies from the US and other Western countries have hired about 170,000 workers in India for jobs such as payroll accounting, telemarketing and customer support services. The figure is expected to reach 1.1 million by 2008, industry groups say.”

Information and communication technologies (ICT) have helped in this outsourcing phenomenon. An educated and English language proficient workforce in India welcomed outsourcing and generally performed very creditably. Gene Sperling [5] who was the White House economic adviser to former President Bill Clinton, writes in the Washington Post, “China and India have nearly 40 percent of the world's population (compared with 3 percent for Japan and South Korea), and thanks to the revolution of information technology, hundreds of millions of their citizens have entered the global workforce, competing on an unprecedented scale for jobs located in the industrialized nations.” Sperling further states, “Outsourcing is the cause for the Chinese and Indians to enter the global workforce.”

After Information Technology and BPO, India will now become a hot destination for outsourcing legal works for American firms. [6] Success is contagious and it is now spreading to other technical and functional areas. Mark Chediak [7] writes in Washington Post of August 16, 2005, “Founded in 1999, Smarthinking employs more than 450 part-time instructors from around the world to offer round-the-clock tutoring. Washington students struggling in the middle of the night with a math question may get an answer from a tutor in India, where the morning's work is already underway.”

            Another area ripe for outsourcing is the US healthcare. Mini Joseph Tejaswi [8] writes, “Spiralling healthcare costs, unbearable squeeze on margins, acute talent shortage and an aging population are compelling healthcare establishments in the US and Europe to look at Indian IT and ITES providers.” Tejaswi further adds, “The US healthcare industry alone is expected to spend $34 billion to develop supporting technologies by 2008, against $26 billion last year …”

            Outsourcing of medical procedures is also a lucrative opportunity for India. “Medical tourism has got a shot in the arm with number of overseas patients touching 100,000 mark last year as against 10,000 patients in 2000 thanks to the bouquet of quality healthcare services fraught with cost advantage.” [9] "India offers a wide range of specialised services at less than one-fifth of the cost in developed countries which is strengthening medical tourism industry," chief executive officer of Recover Discover, Vimal Dikshit, quoted in the same news report.

            We could dwell on thousands of such instances and statements of outsourcing successes. But, perhaps, the point is made that outsourcing is here and growing strong by the day.

Outsourcing Explained

            Companies are in business to make money for their shareholders. They want to minimize their investment and increase their earnings per share, earnings per employee, and improve their other measures of corporate performance. Traditionally, companies performed all tasks in house. Modern managers like to focus on a few of their core competencies and relegate all other products and services to others who provide quality products and services at competitive prices.

            Therefore, managers’ first task is to identify their core competencies and develop these areas in house. Their next task is to identify the secondary and tertiary tasks and begin to identify reliable, economical, and competent suppliers outside the company. Such analyses can be done at various levels of granularity and a number of suppliers selected.

            Peter Bendor-Samuel [10] writes, “As we enter 2006, outsourcing stands at a new inflection point. Fundamental and seismic changes are altering the structure of our industry. Buyer unrest is causing a change in outsourcing transactions. They will morph from monolithic mega-deals into higher value deals with smaller components.” When a large number of mini-deals become available, many small vendors get opportunities to become new suppliers.

            This new emphasis on mini-deals requires a more rigorous and systematic analysis. Morphological analysis is a strong method for consideration.

Morphological Analysis

            Zwicky (1962, 1969) [11] ^, [12] explained the method known as morphological analysis as “total thinking.” [13] We aim at the totality of solutions to a given problem without prejudice as to the value of any solution. By enumerating all possible solutions, we can obtain a large number of alternative combinations constituting solution sets. By applying this technique to a number of areas, Zwicky obtained patents in such diverse fields as propulsion systems and explosives.

Next, I will describe a simple example to explain the application of Morphological Analysis. Most readers are aware of how a traditional clothes laundry business operates. By analyzing the various processes in the laundry business, we can look at alternate means of performing those tasks. Some of these can be kept in-house as core competencies and the others can be outsourced. For the purposes of this explanation a simple analysis (previously discussed in the author’s 1996 paper cited already) is presented here.

            Table 1 shows ten activities (rows) that constitute a simple laundry business: (1) transport clothes, (2) receive clothes, (3) ticket clothes, (4) bag clothes, (5) ship clothes, (6) receive clean clothes, (7) deliver clothes, (8) transport clothes, (9) receive payment, and (10) deposit payments in bank. Alternate ways of accomplishing or persons responsible for each of these activities are illustrated along each row in the table. In this example, there are 3 x 3 x 4 x 4 x 4 x 3 x 4 x 4 x 5 x 4 = 552,960 combinations. This large number shows the power of the method. As seen in this example, Morphological analysis consists in listing all the components that make up the process. This is shown as activities along the first row. Then we examine alternate ways of performing the component task or who might perform it and list them along the corresponding row. In the example, we enumerated 3 to 5 ways of doing each task. We could have thought of more ways, but for the sake of simplicity in illustrating the method, only a few alternatives are selected. We can pick any element along each row and form a sequence of component operations to run the business. If we lack innovative thinking, we conclude that there is only one way of doing this business. With innovative thinking, we can come up with many alternatives. We follow the enumeration phase with an evaluation phase. It is possible that some of these options might be eliminated during detailed analysis for technical, political, cultural, or economic reasons. Awareness of a large number of alternate options gives you an advantage over your competitors.

            Note that in the traditional laundry service sequence, the customer drops the clothes with a clerk, is given a receipt, and later picks up the clean clothes from the clerk, paying by cash. In another sequence, the clerk picks up the dirty clothes from the customer’s home, bags them, transports them to a washer, brings the clothes back to the customer’s home, and collects cash; this is old fashioned by today’s standards. The case, in which the customer does everything, including washing, is a trivial case where no laundry as a business exists.

            Although this is a simple example, I hope that the reader is convinced that a systematic analysis has two steps: (1) identifying the component processes that make up the chain or sequence, and (2) devising alternate ways of performing the component processes. Once the business process is broken down into component processes, we can look for which processes can be outsourced to which suppliers. It is also possible that if a component process (or activity) is outsourced to India, it might be done differently than it would have been done had the component process (or activity) been retained in the US. On the contrary, if we look at the whole business process as monolithic, we never gain the advantages of outsourcing the component processes. We may keep doing every service in house, perhaps, leading to inefficiencies and diseconomies.

            If one examines the processes (5) and (6), the dirty clothes are shipped to some place (not specified in the example) and cleaned clothes are received from there. Clothes washing function can be outsourced to any place depending on the availability of washing facilities, skills, and economics. Examining this possibility by this method is new but the process itself is not new. Many hospitals in San Francisco in California send their linen to Gilroy, which is about sixty miles outside the city in a rural area. Does such a process offer advantages to Indian cities? Cities such as Kolkata, Delhi, and Mumbai are crowded and the only place launder’s can work and live are the slums. If clothes washing is moved to rural communities (say, some fifty miles from a city), the launders may live in a decent place and make a good living as the rural costs of living are better than those in cities. Now, let us inspect the clothes transfer component process. If a launderer picks up clothes from house to house and takes them to a rural area, and after washing them, returns clean clothes to each home owner, his productivity is decreased. Are there alternative options available where a person does not accompany the goods?

            We need not go too far to find good examples. Excellent stories were written about Mumbai’s Dabbawallas [14] and management Guru’s have analyzed their methods. All Dabbawallas do not travel with their Dabbas, which contain fresh and hot meals prepared by suburban housewives for their husbands working in the offices in Mumbai. Perhaps, we can transition the Dabbawallas’ method to moving clothes to and from rural areas. Or we can outsource the process to the Dabbawallas. The idea here is not to dwell on clothes washing but to illustrate the importance of analyzing a business process in detail in order to seek alternative suppliers or discover outsourcing opportunities.

Urban to Rural Outsourcing
            Urban infrastructure problems of big Indian cities like Benguluru are well chronicled. As the wealth of the residents of a city increases, costs of real estate and general cost of living go up. People with modest incomes will not be able to afford to live in cities. Some of these people may have to move to cheaper towns and rural areas along with their jobs. Central and state governments and chambers of commerce and industry might undertake studies to decide which business processes can be outsourced. Morphological analysis comes in very handy.

            At the mega level, the laundry business can be a good candidate to move to rural areas as discussed in our earlier example. Now, we consider another case and ask if we can move parts of the food business to rural areas. One finds an example in midday meal preparation for school children being outsourced to Naandi Foundation. [15] “Naandi created the world’s largest central kitchen at Hyderabad (spread over 2 acres with built up area of 14,000 sq ft) through which the midday meal is being supplied to 880 schools in the twin cities, benefiting 1,30,000 children. The central kitchen was set-up with the latest equipment, specialised team and high-quality transport facility for distribution of the cooked meal.” Would it have been possible to locate the centralized kitchen in a nearby village and transport Dabbas of hot meals to city schools?

Many businesses in Indian cities serve hot lunches to their workers. Would outsourcing such meal preparation to village based businesses be feasible and economically viable? If not, can we do an analysis of the component processes and evaluate if some component processes can be outsourced. For example, it may turn out that peeling and cutting vegetables can be carried out economically in villages near the farms where vegetables are harvested. Transporting smaller quantities of prepared vegetables is easier and cheaper than transporting large quantities of vegetables.

Think for a moment how vegetables are marketed in Indian cities even today. Farmers in villages harvest their vegetables and carry them to cities and hawk them from street to street. This is a very inefficient method of using a farmer’s time and energy. There should be no need for a farmer to go with his vegetables and return home with cash proceeds of the day. Vegetables or processed vegetables could be transported to the city and delivered to individual homes following the Dabbawala model.

Future Opportunities for Outsourcing

The 2005 US White House Conference on Aging [16] discussed the implications of the next wave of America’s aging population, the “Baby Boomers,” comprised of about 76 million people born between 1946 and 1964. Then there are the “Mature Seniors” (ages 60-79) and the “Oldest Old” (aged 80 and above). In the next four decades, such a large aged population will require technology and healthcare services, some of which may be outsourced to offshore locations. This will be an excellent opportunity for India to provide medical, health, aged living, assisted living, and nursing home services.

As one examines the outsourcing trends, from call centers and business process outsourcing (BPO), the market moved to Information Technologies. This market is now moving to research and development and product and process innovation. As described in earlier sections, the big opportunities are in the health care and aged homes fields. If we merely use these phrases, they are the mega-deals and the small entrepreneur will wait for the big companies to grab the opportunities. In a proactive stance, small entrepreneurs can perform a Morphological analysis of the healthcare and aged homes sectors and prepare to bid on the component processes, where he/she is competent. Such an analysis will indicate to governments what education and training schemes will prepare the future Indian work force to stand up to the challenges of the emerging outsourcing scenario. Young people need not rest their hopes on IT alone but gain knowledge and skills in the component processes within the healthcare and aged homes businesses of the near future.

The pot of gold at the end of the rainbow is within the reach of the prepared.

Table1. Array of activities in an illustrative laundry business

	ACTIVITY	ALTERNATIVES
1	Transport Clothes	Customer	Laundry	Mail
2	Receive Clothes	Clerk	Machine	Washer
3	Ticket	Clerk	Machine	Card	None
4	Bag Clothes	Clerk	Machine	Customer	None
5	Ship Clothes	Clerk	Customer	Mail	None
6	Receive Clean Clothes	Clerk	Mail	Customer
7	Deliver Clothes	Clerk	Machine	Mail	None
8	Transport Clean Clothes	Clerk	Mail	Customer	None
9	Receive Payment	Clerk	Machine	Bank	Card	Mail
10	Deposit in Bank	Clerk	Card	Mail	None

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[1] The Author lives in Columbia, Maryland, USA and can be reached via email at somk@comcast.net

[2]  Source: http://www.mckinseyquarterly.com/article_page.aspx?ar=1660&L2=1&L3=106&srid=17&gp=0#foot1

[3] Source: Strategic Review 2005, National Association of Software and Service Companies (Nasscom).

[4] Source: Silionindia Marh 18, 2004, “India continues to beckon US financial Companies”http://www.siliconindia.com/shownewsdata.asp?newsno=23461&newscat=Business

[5]  Source: Gene Sperling, “How to Refloat These Boats” The Washington Post, Sunday, December 18, 2005

http://www.washingtonpost.com/wp-dyn/content/article/2005/12/17/AR2005121700028.html

[6] Source: “After BPO, legal works moving to India,” http://www.siliconindia.com/shownewsdata.asp?newsno=26630

[7] Source: Mark Chediak, “Online Tutoring Part of Growing Trend,” Washington Post, August 16, 2005

http://www.washingtonpost.com/wp-dyn/content/article/2005/08/15/AR2005081501265.html

[8] Source: Mini Joseph Tejaswi, “Indian IT to take care of US healthcare” The Economic Times, http://economictimes.indiatimes.com/articleshow/1161656.cms

[9] Source: http://www.ibef.org/artdisplay.aspx?art_id=9713&cat_id=60&refer=a82&tdy=1

[10] Source: Peter Bendor-Samuel, CEO, Everest Group, “Why Outsourcing Is Poised for a Sea Change” http://www.outsourcing-analyst.com/2006-everest.html

[11] Zwicky, F., (1962), Morphology of Propulsive Power, Society for Morphological Research, Pasadena, CA.

[12] Zwicky, F., (1969), Discovery, Invention, Research: Through the Morphological Approach, Macmillan, Toronto.

[13] Source: Som D. Karamchetty, “The Application of Morphological Analysis to Discovering New Forms of Business,” Entrepreneurship, Innovation, and Change, Vol. 5, No. 3, 1996, Pages 203 to 216.

[14] A typical source: Mumbai’s Dabbawallas – a complete management workshop, http://www.pagalguy.com/index.php?categoryid=15&p2_articleid=252

[15] Source: Naandi web site. http://www.naandi.org/Education/MidDayMeal.asp

[16] http://www.whcoa.gov/