NASSCOM Engineering Summit 2013: Cost Arbritage to Cost Innovation - Dr. V Sumantran, Vice Chairman,...
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Engineering in India – Cost Arbitrage to Cost Innovation Dr. V Sumantran Executive Vice Chairman – Hinduja Automotive Ltd. Vice-Chairman – Ashok Leyland Ltd.
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Transcript of NASSCOM Engineering Summit 2013: Cost Arbritage to Cost Innovation - Dr. V Sumantran, Vice Chairman,...
Engineering in India ndash
Cost Arbitrage to Cost Innovation
Dr V SumantranExecutive Vice Chairman ndash Hinduja Automotive LtdVice-Chairman ndash Ashok Leyland Ltd
103
179
80
100
120
140
160
180
2002 2003 2004 2005 2006
Production Growth
-1
-05
0
05
1
15
2
Chin
a
Japan
Mexic
o
India
Czech R
epublic
Bra
zil
Italy
Russia
S K
ore
a
Turk
ey
Pola
nd
Germ
any
Thaila
nd
Iran
Spain
Belg
ium
Canada
UK
Fra
nce
US
A
Ch
an
ge
(M
illio
n u
nit
s)
Globally Demand and Capacity are Moving East
Example Auto Industry
India A manufacturing destination
bull India in 4th place 2013 Global Manufacturing Competitiveness Index projected to reach 2nd
place in 5 years
3
Near-shore example of Cost Arbitrage - Mexico
India A manufacturing destination
6
India Losing the labor cost advantage
bull Indias cost advantage as an offshoring destination its trump card has dropped to 30-40
bull Quicker response time better tech support and near-shore advantages are driving businesses to other outsourcing destinations
7
Country Labor cost increase Percentage (2013)
India 103
China 93
Philippines 72
Malaysia 6
Hong Kong 48
Singapore 47
Australia 42
Japan 24
US and UK 3
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
103
179
80
100
120
140
160
180
2002 2003 2004 2005 2006
Production Growth
-1
-05
0
05
1
15
2
Chin
a
Japan
Mexic
o
India
Czech R
epublic
Bra
zil
Italy
Russia
S K
ore
a
Turk
ey
Pola
nd
Germ
any
Thaila
nd
Iran
Spain
Belg
ium
Canada
UK
Fra
nce
US
A
Ch
an
ge
(M
illio
n u
nit
s)
Globally Demand and Capacity are Moving East
Example Auto Industry
India A manufacturing destination
bull India in 4th place 2013 Global Manufacturing Competitiveness Index projected to reach 2nd
place in 5 years
3
Near-shore example of Cost Arbitrage - Mexico
India A manufacturing destination
6
India Losing the labor cost advantage
bull Indias cost advantage as an offshoring destination its trump card has dropped to 30-40
bull Quicker response time better tech support and near-shore advantages are driving businesses to other outsourcing destinations
7
Country Labor cost increase Percentage (2013)
India 103
China 93
Philippines 72
Malaysia 6
Hong Kong 48
Singapore 47
Australia 42
Japan 24
US and UK 3
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
India A manufacturing destination
bull India in 4th place 2013 Global Manufacturing Competitiveness Index projected to reach 2nd
place in 5 years
3
Near-shore example of Cost Arbitrage - Mexico
India A manufacturing destination
6
India Losing the labor cost advantage
bull Indias cost advantage as an offshoring destination its trump card has dropped to 30-40
bull Quicker response time better tech support and near-shore advantages are driving businesses to other outsourcing destinations
7
Country Labor cost increase Percentage (2013)
India 103
China 93
Philippines 72
Malaysia 6
Hong Kong 48
Singapore 47
Australia 42
Japan 24
US and UK 3
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Near-shore example of Cost Arbitrage - Mexico
India A manufacturing destination
6
India Losing the labor cost advantage
bull Indias cost advantage as an offshoring destination its trump card has dropped to 30-40
bull Quicker response time better tech support and near-shore advantages are driving businesses to other outsourcing destinations
7
Country Labor cost increase Percentage (2013)
India 103
China 93
Philippines 72
Malaysia 6
Hong Kong 48
Singapore 47
Australia 42
Japan 24
US and UK 3
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
India A manufacturing destination
6
India Losing the labor cost advantage
bull Indias cost advantage as an offshoring destination its trump card has dropped to 30-40
bull Quicker response time better tech support and near-shore advantages are driving businesses to other outsourcing destinations
7
Country Labor cost increase Percentage (2013)
India 103
China 93
Philippines 72
Malaysia 6
Hong Kong 48
Singapore 47
Australia 42
Japan 24
US and UK 3
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
India Losing the labor cost advantage
bull Indias cost advantage as an offshoring destination its trump card has dropped to 30-40
bull Quicker response time better tech support and near-shore advantages are driving businesses to other outsourcing destinations
7
Country Labor cost increase Percentage (2013)
India 103
China 93
Philippines 72
Malaysia 6
Hong Kong 48
Singapore 47
Australia 42
Japan 24
US and UK 3
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
We need a sustainable Advantage
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cultural inspiration for Innovation
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cultural inspiration for Innovation
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Can India make Cost Innovation a strategic platform
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Most of the Growing Economies have constrained Affordability
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
New Cars Increasingly Out of Reach for Many
AmericansBy Paul A Eisenstein NBC News | CNBC ndash Wed Feb 27 2013 959 AM EST
The Affordability ChallengeGlobally there is demand for Cost Innovation
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
What is Cost Innovation
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cost Innovation is more than Jugaad
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
To design a desk that may cost $1000
is easy for a furniture designer but to
design a functional and good desk
which shall cost $50 can only be done
by the very best
Cost Innovation Requires special skills
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cost Innovation is hugely challenging
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cost Innovation does not mean complexity
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cost Innovation does not mean complexity
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Passengers
Speed
Range
Full FADEC turbofans
High Efficiency turbofans
Composite fuselage
All Glass Cockpit
Advanced Flight Controls
Price
6 5
430 kts 400 kts
3000 km 2600 km
Yes Yes
Yes Yes
No Yes
No Yes
No Yes
USD 7 million USD 25 million
Cost Innovation may require changing rules of business
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cessna CJ1+ Cockpit Cessna Mustang Cockpit
bull Two pilot cockpit configuration
bull Warning lights for alerts
bull Analogue and Digital equipment
bull Potential for information loss due to minimal redundancy architecture
bull Independent controls
bull Cost of aircraft ~$7 million
bull Owner driven single pilot configuration
bull Glass cockpit equipped with all traditional avionics functions
bull Two 10ldquo Primary Function Display amp One 15ldquo Multi-Function Display
bull Dual System for essential functions
bull Built-in redundancy of system
bull Integrated cabin pressurization system
bull Cost of aircraft ~$25 million
Cost Innovation may require changing rules of business
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cost Innovation is aided by minimalism
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
European CRDi System
bull 4 cylinder -- 2 bank concept for injectors
bull Exhaust Gas After treatment System
bull EGR Control
bull Turbo charger
bull CAN
bull FR4 PCB
bull Glow Control
bull High End Microcontroller
bull Cost approx 800 Euros
Indian Low-cost CRDi System
bull 2 Cylinder ndash 1 bank concept for injectors
bull No ExhaustGas After Treatment
bull No EGR
bull No Turbo charger
bull No CAN
bull CEM PCB
bull No Glow Control
bull Low End Microcontroller
bull Cost estimated at 150 Euros
Euro-4 Euro-4
Cost Innovation means defining the requirements clearly
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Cost Innovation can mean intelligent re-use
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
New RulesNew ThinkingRe-UseMinimise ComplexityChallenging GoalsDownsizingRequirements Driven
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
ldquoFrugal engineering is achieving more with fewer resources The cost of developing a product in the West is high since engineers there use more expensive tools In India they achieve a lot more with fewer resources
They understand frugal engineering which is something we arent as good at in Europe or Japan - Carlos Ghosn
Recognition
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
ldquo As a group we have said that is strategically
important for us to be in the low-cost vehicle
market and there are two reasons for this
Firstly you cannot just transfer technology X from
Europe to a low-cost vehicle You need new
engineering the intelligence to make things
simple and adapt it to low cost markets
Secondly this is valuable for our engineers who
could down the line bring these ideas back to the
low-end of the European market ldquo ndash Bernd
Bohr Bosch
Recognition
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Hinduja Automotive Landscape
30
Foundry Business
Engines amp Gensets
Transmissions
Engineering
Manufacturing and
Enterprise Services
Exhaust System
Technology
Medium amp Heavy CV Buses
LCVs Construction equipment
Defence Mobility Bus
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Jan-Bus Cost Effective Flat Floor BRT Bus
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Changing LCV cost of ownership
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
24 October 2013
35 Copyright 2012 copy Defiance Technologies Limited
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Technology driving cost advantage
Competition
Weight
Cost
Lighter
Cost Effective
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
ldquo Engineering is a combination of
Brains and Materialshelliphelliphellip
hellip the more the Brains the less
the Materialsrdquo
Charles ldquoBossrdquo Kettering
Philosophy and Inspiration
Thank you
Thank you
