Introduction To “Sustainability In The Automotive Industry”
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Transcript of Introduction To “Sustainability In The Automotive Industry”
Introduction To
“Sustainability In The Automotive Industry”
C.V. RamanExecutive Director – Engineering Division
Maruti Suzuki India Ltd., India
©2013 Maruti Suzuki India Limited
① Sustainability : What Does It Mean ?
② MSIL Approach For Sustainable Growth in Automotive Industry
③ Expectations From Suppliers
Contents
©2013 Maruti Suzuki India Limited
Sustainability : What Does It Mean ?
Sustainable Development is a pattern of resource use that aims to meet human needs while preserving the environment, society & economy so that these needs can be met not only in the present, but in the indefinite future .
def . “ .. Sustainability
©2013 Maruti Suzuki India Limited
Sustainability : What Does It Mean ?
ECO
NOM
YSOCIETY
ENVIRONMENT
Each one relies on thestability of the other
Anyone can have adverse effects on the other two
Balance of environmental resource conservation, economic prosperity & social well being is key for Sustainable
Development
©2013 Maruti Suzuki India Limited
Sustainability : Why in Automotive Industry ?Automobiles and their direct impact on
environment:
Air (Direct & Indirect
emissions)
Water(Release of harmful
waste)
Energy(Depleting non renewable
Fossil-Fuels)
ECONOMYSOCIETY
Direct & Indirect Impact
OEMs must take care Environmental , Social & Economic issues for sustainable growth
(Everything within the environment is cyclical and connected)
©2013 Maruti Suzuki India Limited
① Sustainability : What Does It Mean ?
② MSIL Approach For Sustainable Growth in Automotive Industry
③ Expectations From Suppliers & Policy Makers
Contents
©2013 Maruti Suzuki India Limited
Maruti Suzuki has a dedicated program on Sustainability, Called as……
“ Foot on the Pedal”Maruti Suzuki’s belief to approach business is…….
“ 3G”(Give, Get & Grow)
Commitment for Sustainability
Committed to improve the performance of Environment, Society & Economy while doing business
©2013 Maruti Suzuki India Limited
MSIL’s Key Focus area under Sustainability① Environmental Perspective (CO2 Footprint)
② Social Perspective
③ Economic Perspective
a) Focus on Efficient Development Process & Product
b) Focus on Green Manufacturing
b) Focus on Green Supply Chain Operation
a) Focus on Community Development
a) Focus on Road Safety
a) Hedging of Foreign Currency & expensive raw metal
b) Focus on Localization
Foot
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Peda
l(S
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ppro
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©2013 Maruti Suzuki India Limited
MSIL’s Key Focus area under Sustainability① Environmental Perspective (CO2 Footprint)
② Social Perspective
③ Economic Perspective
a) Focus on Efficient Development Process & Product
b) Focus on Green Manufacturing
b) Focus on Green Supply Chain Operation
a) Focus on Community Development
a) Focus on Road Safety
a) Hedging of Foreign Currency & expensive raw metal
b) Focus on Localization
Foot
on
the
Peda
l(S
usta
inab
le A
ppro
ach)
©2013 Maruti Suzuki India Limited
Efficient Process & Product to Reduce CO2
MSIL’s Focus Area to Improve Carbon Footprint
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©2013 Maruti Suzuki India Limited
Full Vehicle Virtual Validation Capability
Aerodynamics Analysis
Ergonomics & Layout Analysis
Structural Rigidity Analysis
Crash Worthiness Analysis
Maruti Suzuki has developed the full vehicle virtual validation capability which enables efficient design & process product development
Virtual validation technique helps to reduce carbon footprint
This helps in reducing physical testing
©2013 Maruti Suzuki India Limited
MSIL’s Focus Area to Improve Carbon Footprint
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Efficient Process & Product to Reduce CO2
©2013 Maruti Suzuki India Limited
Vehicle Weight Reduction : Maruti Suzuki’s InitiativeONE COMPONENT ONE GRAM WEIGHT REDUCTION CAMPAIGN
Ultra high-strength steel (980,1180DP)
Bake Hardened steel
Dual Phase steel
High-strength steel (for structural parts)
Hot-stamping( 1500 MPa& above)
Bake Hardened steel
WEIGHT REDUCTION IS A PRIME FOCUS AREA FOR NEW MODELS
This Special Drive has resulted in Weight Reduction of MSIL’s Existing Model
# Review all new & Existing Parts at Design Stage
# Use of Bake Hardened Steel, High Strength Steel, Hot Stamping etc.
©2013 Maruti Suzuki India Limited
Maruti Suzuki’s Commitment Towards Weight Reduction
Weight Reduction in New Swift…Though it is bigger in Size
Old Swift
Full Model Change
New Swift
Weight: 1010 Weight: 990
Length: 3760Width: 1690Height: 1530
Length: 3850Width: 1695Height: 1530
~ 2 % Reduction in Weight
New Swift is Bigger in Size
Vehicle Weight Reduction : Maruti Suzuki’s Initiative
©2013 Maruti Suzuki India Limited
MSIL’s Focus Area to Improve Carbon Footprint
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Efficient Process & Product to Reduce CO2
©2013 Maruti Suzuki India Limited
FE Improvement
10 % CR
F.E. 2%↑
Powertrain Efficiency
MSIL achieved 2% Low Fuel Consumption If Compression Ratio increased by 10%
Source: MSIL’s Internal Test Result
Focus on Increasing CR (Compression Ratio) to enhance Thermal Efficiency
©2013 Maruti Suzuki India Limited
BSFC
Performance
FE
~10% friction reduction
F.E. 2%↑
~10% friction reduction
MSIL’s Internal Test Result
Focus on Friction Reduction
MSIL achieved 2% lower fuel consumption by 10% Friction Reduction
Source: MSIL’s Internal Test Result
Powertrain Efficiency
©2013 Maruti Suzuki India Limited
Improvement in fuel consumption from faster warm up of Coolant & Oil
-20.0%
-18.0%
-16.0%
-14.0%
-12.0%
-10.0%
-8.0%
-6.0%
-4.0%
-2.0%
0.0%
% F.E Loss w.r.t fully warmed up
Coolant Temp.
Coolant Temp. T.M. strategy
Oil Temp.
Oil Temp. T.M. strategy
Improvement opportunity
Urban Driving Cycle
Predicted % loss
Actual % loss
Source: MSIL’s Internal Test Result
Powertrain EfficiencyFocus on Thermal Management of Coolant & Oil
©2013 Maruti Suzuki India Limited
MSIL’s Focus Area for Efficiency Improvement
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Efficient Process & Product to Reduce CO2
©2013 Maruti Suzuki India Limited
Maruti Suzuki saved 157 K ton of CO2 from Alternate Fuel Vehicles till Mar’12
Maruti Suzuki’s Commitment For Lower CO2
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
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100,000
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2006-07 2007-08 2008-09 2009-10 2009-10 2010-11 2011-12
Cum
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CO
2 Red
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Cum
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Sale
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(No.
of U
nits
)
Cumulative CO2 Reduction From Maruti’s Alternate Fuel Vehicles (CNG)
©2013 Maruti Suzuki India Limited
Hybrid Technology – MSIL Test Result
Upto 25% reduction in CO2 achieved in Sedan Class Vehicle
Source: MSIL’s Internal Test Result
©2013 Maruti Suzuki India Limited
MSIL’s Focus Area for Efficiency Improvement
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Efficient Process & Product to Reduce CO2
©2013 Maruti Suzuki India Limited
End Life of Vehicle (ELV)
Design for RRR (Reduce Reuse Recycle) Focus on removal of
Hazardous Elements
Use of Recyclable Materials
ELV Compliance Product Development
MSIL is committed for developing ELV compliance product; though regulation mandate is not formalized in India
©2013 Maruti Suzuki India Limited
Reduction of Hazardous Substances
• Lead – damage to kidney, liver, brain, nerves, bones and blood• Cadmium – highly toxic, accumulates in body (specially kidney)• Mercury – negative effects on brain functioning• Hexavalent Chromium – Carcinogenic, allergic• Asbestos – Causes Lung Cancer
Usage in Automobiles:• Lead – Batteries, Dampers, Pb as alloy, fuel tanks, paints,
soldering, wheel balance weights, vulcanizing agent in pressure hoses, bearing
• Mercury – Gas discharge devices in Headlamps• Cadmium – Batteries • Hexavalent Chromium – Corrosion preventive coatings
What is Hazardous?
MSIL’s Initiative for Removal of hazardous chemical:• Lead removal from bearings, fuel tanks, wheel balance weights etc.• Carcinogenic Cr6+ removed from all plated parts
Major Hazardous element like Lead, Chromium etc. removed from MSIL’s Models
©2013 Maruti Suzuki India Limited
Extensive use of Recyclable materials
Headlamp Lens PC
Housing PP
Rear CombinationLamps
Lens PMMA
Housing ASA
Wheel Cap Full cover & Center cover
PC+ABS
Bumper Front PP+EPM
Rear PP+EPM
Grille ABS
Cowl Top Garnish PP
Door Mirrors Housing & Mirror cover
AEPDS
Visor mirror cover ABS
Mirror holder PP
Door Handle PC+PBT
Back Door Handle
Handle PC+PBT
Case PC+PBT
Fender Lining PE
Use of recyclable material is part of MSIL’s core design philosophy
MaterialDescription
©2013 Maruti Suzuki India Limited
• A-Star has received RRR certification– Recyclable rate : 86.9%– Recoverable rate : 96.0%
Product Design for RRR compliancy
By Jan’2015 : 85% or more95% or more
• MSIL’s Internal Design Target For RRR Compliance:
Reuse- Recycle RateReuse- Recovery Rate
MSIL’s Initiative For RRR Compliancy:
SIAM / NATRIP / MoHI Initiative :
Dismantling Unit in Chennai for 4-W & 2-W Vehicles
With Govt.’s Support, OEMs will be able to achieve RRR compliancy for all models in Future
MSIL was part of this Initiative
©2013 Maruti Suzuki India Limited
Full Vehicle Virtual Validation
Vehicle Light Weighting
Powertrain Efficiency
Improvement
Alternate Fuel Technology
Alternate Fuel Technology
Efficient Process
Efficient & Sustainable Product
MSIL reducing carbon footprint by adopting efficient process & products
Efficient Process & Product to Reduce CO2
©2013 Maruti Suzuki India Limited
MSIL’s Key Focus area under Sustainability
Sust
aina
ble
A
ppro
ach
① Environmental Perspective (CO2 Footprint)
② Social Perspective
③ Economic Perspective
a) Focus on Efficient Product Development
b) Focus on Green Manufacturing
b) Focus on Green Supply Chain Operation
a) Focus on Community Development
a) Focus on Road Safety
a) Hedging of Foreign Currency & expensive raw metal
b) Focus on Localization
©2013 Maruti Suzuki India Limited
Manufacturing
Plant Related
Manufacturing Process Related
Focus on Green Manufacturing
A Step Towards Green Manufacturing…………
©2013 Maruti Suzuki India Limited
Promote RRR (Reduce Reuse Recycle) In Bumper shop
To grind, recycle & reuse the rejected molded bumpers or instrument panels
Manufacturing Process Related Initiatives
Granulator is installed.
No waste or scrap generation is carried out for any plastic component.
Rejected Bumper is Granulated, Melted & Reused again in MSIL
©2013 Maruti Suzuki India Limited
Waste Thinner Collection system in Paint shop
1.VOC Reduction by 20%. 2.Less sludge generation & less load on incinerator
Thinner collection
unit
Manufacturing Process Related Initiatives
Thinner used to clean robot Nozzles in Paint Shop
MSIL achieved following result after installing thinner collectors:
Earlier thinner used to get mixed with Water & generate VOC-volatile organic compound emission by evaporation into atmosphere
Now thinner is recycled after collection; Less waste or Emission
©2013 Maruti Suzuki India Limited
Installation of friction conveyor at weld, paint & assembly shop
• Reduction of noise level from 95 dB to 85 dB
• Reduction of power consumption by 60% 0
20
40
60
80
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Noise level Energy Cons.dB
& k
W/v
ehItems
Comparison Chain Vs Friction conveyor
chain
Friction
Manufacturing Process Related Initiatives
Chain Conveyor Friction Conveyor
Helped in energy saving & elimination of noise level
Implemented in Manesar Plants & Paint Shops
©2013 Maruti Suzuki India Limited
Advancements in the Features of Casting Shop
Energy Efficient Melting F/c
Waste flue gases used to preheat the ingots entering into the furnace
Two process Decoring m/c99.5% sand is removed in dry condition only by Decoring machine.
Manufacturing Process Related Initiatives
Hence sand baking process is eliminated which consumes LPG & Power.
This initiative helped in power saving
©2013 Maruti Suzuki India Limited
Manufacturing
Plant Related
Manufacturing Process Related
Focus on Green Manufacturing
A Step Towards Greener Manufacturing…………
©2013 Maruti Suzuki India Limited
Maximum utilization of natural resources
• Use of natural lighting
• Use of solar energy• Use of natural
exhaust
Plant Related
Only LED lights were installed at Manesar plant, making it the first car plant in India to use LED technology entirely
MSIL is using the Japanese concept “KAIZEN” very effectively in energy management
©2013 Maruti Suzuki India Limited
Plant Related
Captive Power Plant based on clean fuel
Maruti Suzuki’s manufacturing sites at Gurgaon & Manesar run on captive power plants which use natural gas (CNG), a clean fuel.
Initiatives for cleaner & efficient Power Generations1 MW Solar Power Plant will be commissioned in Manesar Plant soon !!!
©2013 Maruti Suzuki India Limited
Plant Related
Maruti Suzuki has achieved zero waste water discharge status (Outside factory premises)
Domestic Use
ProcessINDUSTRIAL
AND dm WATER
STP
ETP
ETP & STP treated water
ET RO
Fresh Water
Waste water Treatment
In 2011~12, 41% of total water requirement was achieved from recycling
STP: Sewage treatment plantETP: Effluent treatment plant
©2013 Maruti Suzuki India Limited
Plant RelatedWater Harvestinhg
Lagoons for rain water harvesting - 2 lagoons of 15000 cu.m. storage capacity - Recharge shafts capable of recharging another 7000 cu.m. / day
Water Harvesting is a prime focus area for Maruti Suzuki
©2013 Maruti Suzuki India Limited
Green Manufacturing
Well ! We Talked about various initiatives taken at manufacturing process & plant level under Green
Manufacturing…….
Now Let’s See the Cumulative Result of initiatives taken !!!
©2013 Maruti Suzuki India Limited
Green Manufacturing
MSIL has achieved reduction in power & Water consumption due to waste minimization & process innovation under Sustainability
Program
Electricity Consumption Per Car
Water Consumption Per Car
Power Consumption per car has reduced by ~30% in the last decade
Water Consumption per car has reduced by ~60% in the last decade
©2013 Maruti Suzuki India Limited
MSIL’s Key Focus area under Sustainability
Sust
aina
ble
A
ppro
ach
① Environmental Perspective (CO2 Footprint)
② Social Perspective
③ Economic Perspective
a) Focus on Efficient Product Development
b) Focus on Green Manufacturing
b) Focus on Green Supply Chain Operation
a) Focus on Community Development
a) Focus on Road Safety
a) Hedging of Foreign Currency & expensive raw metal
b) Focus on Localization
©2013 Maruti Suzuki India Limited
Green Supply Chain OperationMSIL has a supplier base of 267 suppliers (Including 20 JVs)MSIL took a lot of initiatives to improve environmental performance under supply chain operation:
Set up JVs for Lighter Weight Components:
• Setup JVs with Inergy Corporation, France to develop plastic fuel tank Fuel Tank
Plastic Tank is 30% lighter in weight & 100% recyclable
Optimization of Logistic Operation:
• 1st Company in India to manufacture plastic fuel tank
• Already introduced in Swift & Dzire, others are under implementation
• More than 100 suppliers are located in Gurgaon-Manesar Region
• Commissioned a steel coil processing plant (JVs) in Manesar to reduce transportation of various suppliers
Initiatives helped to reduce 16,700 Km of vehicular movement per yearContinuous Focus on Optimization; 86%(by Value) of the
Components sourced by the company are located within 100 km radius
©2013 Maruti Suzuki India Limited
Green Supply Chain OperationRail Transportation: • For exports, MSIL is using rail transportation from Gurgaon to Mundra Port,
Gujarat.
• Suzuki exports components to other facility in Thailand & Indonesia by rail transportation.
More than 3 lakh vehicles & 30% export of total kits by rail
Packing Improvement for Components:
• Parts come in 100% reusable bins
• Paper & Cardboard Packing for butyl tape were replaced with recyclable plastic spools
Similar to these initiatives, MSIL is also exploring various other options to make supply chain operation more
greener
In 2011-12, ~23 Ton of polythene were eliminated & ~20 ton of cardboard were saved
Switch from Road to Rail can reduce emission by 40%
©2013 Maruti Suzuki India Limited
Environmental perspective under Sustainability
Green Product Development & Product Green Manufacturing Green Supply Chain
MSIL is following basic philosophy of “ Smaller, Fewer, Lighter, Shorter & Neater” to develop healthy & positive eco system in India !!!!!
MSIL is committed to reduce carbon footprint from environmental perspective under sustainability program for greener tomorrow……….
©2013 Maruti Suzuki India Limited
MSIL’s Key Focus area under Sustainability
Sust
aina
ble
A
ppro
ach
① Environmental Perspective (CO2 Footprint)
② Social Perspective
③ Economic Perspective
a) Focus on Efficient Product Development
b) Focus on Green Manufacturing
b) Focus on Green Supply Chain Operation
a) Focus on Community Development
a) Focus on Road Safety
a) Hedging of Foreign Currency & expensive raw metal
b) Focus on Localization
©2013 Maruti Suzuki India Limited
Focus on Community Development
Create Heath Awareness in Communities Foundation day celebration At Kasan School, Manesar Maruti employees participating in volunteering program
• Since 2007, MSIL has adopted four neighboring communities in Manesar
• MSIL runs a computer education center for providing basic computer literacy to the children at Alihar village
• Last year, employees contributed 4,142 volunteering hours for the benefit of the community.
• MSIL made large investment to improve basic infrastructure & health awareness
Community development is part of MSIL’s CSR Policy. Stakeholder engagement is given utmost importance in the CSR Policy
©2013 Maruti Suzuki India Limited
Educate Driver
Focus on Road Safety
MD with truck drivers for road safety campaignSet up of 6 IDTR & 206 MDS
Total Persons Trained in IDTR (Cumulative)
• MSIL runs a nationwide road safety programme through 6 IDTR & 206 MDS.
• MSIL runs a special driver training program for truck drivers employed by its transporter.
• MSIL has trained more than 7 lakh people so far in IDTRs.
MSIL has made a commitment to train 5 lakh persons over 3 years.With enhanced driving skill, upto 30% reduction in fuel consumption is possible !!!
©2013 Maruti Suzuki India Limited
MSIL Considers the improvement in Social Performance as key to corporate success under sustainability !!!!!
MSIL engages with the stakeholder group to assess its needs & addresses them through various CSR initiatives……
Social Perspective under Sustainability
©2013 Maruti Suzuki India Limited
MSIL’s Key Focus area under Sustainability
Sust
aina
ble
A
ppro
ach
① Environmental Perspective (CO2 Footprint)
② Social Perspective
③ Economic Perspective
a) Focus on Efficient Product Development
b) Focus on Green Manufacturing
b) Focus on Green Supply Chain Operation
a) Focus on Community Development
a) Focus on Road Safety
a) Hedging of Foreign Currency & expensive raw metal
b) Focus on Localization
©2013 Maruti Suzuki India Limited
Economic Perspective under Suitability
Maruti Suzuki believes in Sustained business growth & in the financial well-being of its direct stakeholders !!!
At MSIL, investments decisions are based on the economic viability of product & company under long term sustainable business…..
MSIL has taken various measures to remain economically sustainable so that it contributes in local economy:
Hedging of Foreign Currency:
MSIL has received permission from RBI to hedge risks arising from foreign exchange exposure
©2013 Maruti Suzuki India Limited
Economic Perspective under Suitability
Hedging of Precious Commodity
Copper Aluminum Precious Metals
MSIL has constituted joint teams of Finance & Supply Chain to explore possibilities of hedging its commodity exposure in copper, aluminum & precious metals.
Enhanced Focus on Localization:
MSIL is making focused efforts for localizing import contents to develop economically viable product & avoid foreign exchange risk
Initiatives taken under Economic Sustainability, helping MSIL to enhance its revenues & profits
©2013 Maruti Suzuki India Limited
Economic Perspective under Suitability
Under Economic Sustainability, The objective is to ensure that the MSIL meet or exceed the expectations of our customers, other stakeholders and regulators; and that they contribute to overall financial stability and economic opportunity.!!!!!
Maruti Suzuki is contributing to Indian Economy in its own way
©2013 Maruti Suzuki India Limited
MSIL’s goal under sustainability journey is to establish a ecosystem that are economically viable, environmentally sound and socially responsible.
MSIL’s Sustainability Journey : Foot on the Pedal
ECO
NOM
YSOCIETY
ENVIRONMENT
©2013 Maruti Suzuki India Limited
① Sustainability : What Does It Mean ?
② MSIL Approach For Sustainable Growth in Automotive Industry
③ Expectations From Suppliers
Contents
©2013 Maruti Suzuki India Limited
With the unmet demands & larger business needs….
The suppliers have to play a key role !!!
We are doing our best for sustainability…however….
Expectations from Suppliers
©2013 Maruti Suzuki India Limited
Expectations from Suppliers
EMS(Environment Management System)
MPS(Maruti Production System)
“ A well defined system to reduce carbon footprint (ISO 14001 Compliant)”
“ A system to eliminate in-process wastage and improve productivity ”
More than 65% of tier 1 supplier has implemented so far…….
Implementation is under process…
52 energy saving projects were implemented by 11 suppliers in FY 11~12, Resulted in 15% reduction in their energy cost !!!!
Suppliers should come forward & implement such systems more in their organization for sustainable future !
MSIL’s Initiatives at Supplier End
Focus on implementation of “Green System”:
©2013 Maruti Suzuki India Limited
Expectations from SuppliersFocus on enhanced quality system :
QUA
LITY
LEVE
L
Quality Level at different plants of a Supplier
New PlantExisting Plant
Better
GAP
Quality employment is must for sustainable growth
Product Failure due to internal child part wear
Fuel Adulteration in India
CASE STUDY 1 CASE STUDY 2
Missing India Focus(Inadequate testing under Indian condition)
New plants setup by supplier has poor quality level
Enhancement in quality at supplier end is must !
©2013 Maruti Suzuki India Limited
Focus on optimized logistic & packaging operation:
MSIL lost 40,100 parts in 1 month due to poor transportation & packaging quality
Expectations from Suppliers
• Avoid contents of disposable material in packaging• Establish local automotive components hub near manufacturing facility
Focus on India Specific Design & Manufacturing :
• Support OEMs in adoption of new technology by offering India specific design • Focus on India specific R&D at supplier level to reduce cost
• Enhance value chain of advance technology components by local manufacturing
Ok Part
NG Part
NG Transportation & Packaging
©2013 Maruti Suzuki India Limited
NCR Region
Kolkata
Hyderabad
Mumbai
Pune
Gurgaon Plant
Manesar Plant Gurgaon Plant
MSIL’s 86% (by Value) Automotive Supplier base are within 100 km range in NCR Region
Current Supplier Base for Gurgaon/Manesar
Last but not the least……Vendor Park near Manufacturing Unit
Shifting supplier near manufacturing( Reduce Vehicular Movement)
Earlier Supplier Base for MSIL,Gurgaon
Supply from different region of India
Supplier base
Bangalore
Chennai
Let’s put joint effort to make supplier base near the manufacturing unit for sustainable business !!!
Initiatives can help to reduce million tons of CO2 per Year
Supply to MSIL
Supp
ly to
MSI
L
supp
ly to
MSI
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Expectations from Suppliers
©2013 Maruti Suzuki India Limited
The greatest threat to our planet is the belief that someone else will save it - Robert Swan
Thank YouMSIL is committed for developing healthy & positive ecosystem for India