Production Lines – Challenge for Companies · Eumind Project: TVET – Technical and Vocational...

Indian-German Exchange Programme (IGEP)

Exchange of Jamnabai Narsee School, Mumbai, India and

Rudolf-Eberle-Schule, Bad Säckingen, Germany

Production Lines – Challenge for Companies

IGEP

2015

TVET1 – Technical and Vocational Education and Training


Eumind Project: TVET – Technical and Vocational Training and Education – IGEP 2015 1

Introduction

The IGEP (Indian-German Exchange Programme) was established in spring 2013 as the first

cooperation and exchange between Indian and German students in technical and vocational

education and training respective their school Jamnabei Narsee School, India and Rudolf-

Eberle-School, Germany. The Eumind project TVET1 (Technical and Vocational Education

and Training 1) was added as a part of small international studies for the students in this

field to the exchange programme.

These studies are a part of the Eumind project TVET1. This year’s topic (2015) is ‘Production

Lines – Challenge for companies’. This topic follows the last year’s topic ‘History of TVET in

Germany and India’.

The Indian-German Exchange Programme (IGEP) between Jamnabai Narsee School and

Rudolf-Eberle-Schule has been initiated to study and to analyse the features of production

lines of Mahindra & Mahindra Ltd. and Mercedes Benz AG automobile plant during their

exchange programme of each 16 days as one of the points of the itineraries in India and

Germany.

Both groups of exchange students visited Mercedes Benz AG plant in Sindelfingen and the

German exchange students visited the Mahindra & Mahindra Ltd. automobile plant in

Mumbai.

The report outlines the interdisciplinary approach with comparative study on history of

production lines, environmental studies, design of new technology and products, business

features, economic implications and automobile engineering.

This project impels students to develop an insight and acumen to understand the needs of

respective countries. The best of the features can be proposed to the automobile industry

for both countries.

It ignites passion in students to consider automobile engineering as their career.

The report highlights and features the current facts and figures, reinforming on sustainable

developments.

By Sejal Khara, Dagmar Wolff



Visit to Mahindra & Mahindra Ltd.

Mumbai, 13th Feb 2015. Mahindra &

Mahindra Ltd. Limited plant was founded

in 1945 and is headquartered in Mumbai,

India. There are about 200.000 employees

in over 100 countries out of which only

14.5% are women and it is the largest

multinational automobile manufacturing

corporation in India. It has sold over 2.1

million tractors annually and it is a part of

the Mahindra & Mahindra Ltd. group which

is an Indian conglomerate.

When we first entered the factory we were offered an Indian refreshing drink called “nimbu

pani” and were led to the presentation room where general information about the number

of workers, different production methods, emergency rules, security plans ecsp. fire fighters

and other information about the plant was given. After this a long buggy took us to the pro-

duction area.

It is noticable that Mahindra & Mahindra Ltd. products are usually SUVs, commercial vehic-

les, two-wheeled motor cycles as well as tractors, a wide range of differing products. The

company also makes cars for the military which helps society. Mahindra & Mahindra Ltd.



also provides society with grid products such as power packs, roof setups and street lighting

systems.

We were also informed about how they provide a safe environment for their workers so that

they are motivated enough to work. They also pay non-financial benefits to selected and de-

serving workers. What differs between Mercedes Benz AG and Mahindra & Mahindra Ltd. is

the methods of production. Mahindra & Mahindra Ltd. produces for the masses and has a

target market of all kinds of people of all income groups and hence their cars are affordable

by most of the population. To produce such large amounts, Mahindra & Mahindra Ltd. uses

flow production. They have adopted various marketing techniques such as advertising in the

newspaper and large boarding accompanied with celebrity support and customer service to

build up a good image and a famous brand name.

After walking through the production area it was noticed that the factory was more labor

intensive than capital intensive, which increases that flexibility but at the same time brings in

chances for more error. Mahindra & Mahindra Ltd. also uses equipment for the car making

from other countries-similar to Mercedes Benz AG and labor for quality check and making

the interiors of the car.

After this, we gained the pleasure of travelling in a brand new Mahindra car which dropped

us at a factory cafeteria. Here we enjoyed a small meal and then proceeded home.

Mahindra & Mahindra Ltd. Limited is a very eminent company and will remain for many

years to come.

by Anaita Ghandi, Alexander Schulz, Jasenko Dzin



Visit to Mercedes Benz AG

Sindelfingen, 3rd Jun 2015. When people enter the automobile plant of Mercedes Benz AG in

Sindelfingen they are led to the cinema hall where a short 10 minute clip is viewed by all the

visitors. This plant was founded in 1915 and the film creates a vivid picture of the map of the

plant, types of Mercedes cars produced and method of production. This film is shown to po-

tential customers to encourage them to make a purchase. Before entering the main factory,

we were provided with safety goggles as well as headphones with which we could hear all

the necessary information about the factory.

It is the biggest Mercedes Benz AG plant - 2.9 km² and they have an annual production of

about 376,000 automobiles with more than 3,500 employees work in approximately 800

technology centers. Methods of direct production where there are different plants for the

body and then assembling hence clear division of labor and workplace is observed. This plant

is not only capital intensive but also employs various human labor for sections of the plant

such as finishing of the car, stitching leather to the steering wheel as well as managing the

interiors of the car. With 9 different car models and 4 days to make one, Mercedes Benz AG

also uses the technique of just in time production or in other words produced by the order

of the people. These four days also include the buffer time and the transport time. While

observing the plant it is acknowledged that it is capital intensive and hence mistakes are

limited.

It is also observed that a lot of human work force as well as machinery is used in quality con-

trol and body parts are checked at random points every 10 minutes to ensure their reliability

as well as quality. Another thing observed is the different stays of production such as laser

cutting, usage of glue and pressure accompanied by welding. With such potential hazardous



equipment, Mercedes Benz AG ensures that their workplace is safe and the environment for

the workers is ideal – 85 fire men and 14 qualified doctors. Employees gain from perks offe-

red such as 11,000 meals per day from 5 different restaurants (plant canteens) which is also

located in the plant itself.

Mercedes Benz AG is also seen as a plant that employs women in production, which is cur-

rently now about 13%. In the medical center about 50% of the medical staff are women.

Other things that are striking about this plant is the floor space and its arrangement. It is a

cell arrangement with ample space in between and this reduces the floor space needed as

well as transport costs, machinery collision is also prevented due to the safe and sufficient

distance between them. The usage of labor allows flexibility of jobs and the fact that they

have 700 different suppliers also allows them to always have a backup when resources are in

need. The use of job production prevents overproduction and hence the need for large

storage space.

Mercedes Benz AG is known for its quality and its brand name and will remain elite in the

years to come for the market.

By Anaita Ghandi



History of production lines

A production line is a set of consecutive operations used in a factory where materials are put

through a refining process to produce finished products that are suitable for consumption by

the economy

Adam Smith (16 June 1723 - 17 July 1790)

Adam Smith1 is the founder of the theory of capitalism and econo-

mic liberalism and one of the most famous economic minds of the

18th century.

One of the theories of Adam Smith was that workers should do only

one step of the production to increase the capacity and produce the

best results possible. Implementing this theory in the process led to

the duty circle increasing in productivity.

He said if an uneducated worker produced a pin on his own he could

only make one per day. If the work was split between the workers and machines, they would

be able to produce 4,000 needles per day and reach optimum capacity. This would provide

specialized tasks to the workers with the subsequent skills. This was the beginning of coope-

rative division of labor and Smith’s theories led to economic growth in Europe and America.

Henry Ford (30 July 1863 - 7 April 1947)

Henry Ford2 developed and manufactured the first automobile

model T (“Tin Lizzy”) that middle class Americans could afford.

He revolutionized the industry by making low cost cars with the

help of mechanized production lines. This resulted in higher wages

for the workers and improved the standard of living and the eco-

nomy.

Ford's philosophy was one of economic independence for the

United States. Ford's goal was to produce a vehicle from the scratch without reliance on in-

ternational trade. He believed in the global growth of his company and international trade

and cooperation. He was involved in the assembly line process in car production and imple-

mented it in the manufacturing of model T. 1 http://de.wikipedia.org/wiki/Adam_Smith#/media/File:AdamSmith.jpg

2 http://de.wikipedia.org/wiki/Henry_Ford#/media/File:Henry_ford_1919.jpg



All major car manufacturers followed his principle as it was an innovative way to increase

profits in the 20th century.

The negative aspect of this system is that the tasks are repetitive and do not use its labor to

their optimum capability. Since the motivation of the workers was reduced due to repetitive

tasks, the efficiency and output decreased drastically leading to higher costs of production.

Current situation

Today line production is capital

intensive3 and not labor intensive

to reduce average cost of produc-

tion.

Mainly engineers are employed to

facilitate the assembly line produc-

tion and ensure a continuous out-

put of optimum quality. They have

cyclical jobs to motivate the wor-

kers and ensure that the workers

don’t get bored with repetitive

tasks.

The ‘One piece flow’ is a spin of the line production and has the goal to motivate all workers.

For example they work on one car from start to end of the line. Their “islands” (work station)

are specialized for a certain function of the process. Right now Toyota and Mercedes Benz

AG are using this system.

Mahindra & Mahindra Ltd. uses a labor intensive process as labor is cheap and makes it eco-

nomical and more productive than capital intensive foreign industries. The large workforce

and specialized workers present an opportunity to Mahindra. This is the difference between

Mahindra & Mahindra Ltd. and Mercedes Benz AG.

By Claudio Eberhardt, Zain Motiwala, Eugen Gorich

3

http://image.motortrend.com/f/wot/1402_2014_mini_cooper_production_to_be_split_between_uk_and_netherlands/62290370/vdl-nedcar-production-line.jpg



Future of production lines – Industry 4.0

Industry 4.0 identified the networking and automation of machine systems and equipment

in industrial production; what is important here are communication, production and the

managing of clients. Because of that the companies can quickly and flexibly respond aggre-

gate demands and individual customer needs.

The wireless machines take contact to the robotics and working machines which also work

wireless to determine the next step of the production. They ask the warehouse for prefab-

ricated parts and initiate orders. Modern constructions adapt fast to product modification

and demand fluctuation.

According to a PWC study the German industrial companies in the next 5 years will invest 40

billion euros in industrial 4.0-products annually, machine builders around 8.5 billion euros.

For them (the machine manufacturers) it comes already now to participate in this process at

an early stage to stand with their own product offerings for 4.0-part solutions.

For the world of work this means that even fewer workers are needed, manufacturers are

more and more automated. Therefore, the automation industry in the form of 4.0 leads to

unemployment to a great extent. In spite of this, the new systems of work organization are

needed. The current systems of work organization, job enlargement and job enrichment, are

obsolete and will be replaced in industry by 4.0 robots.

By Nicole Ranert, Federica Gatto, Eugen Gorich



A Study - Scientific view upon Mercedes Benz AG

It was a great privilege to have been one of the 12 students

from India to make the most of the opportunity to visit the

Mercedes Benz AG production line situated in Sindelfingen.

This factory is the largest production facility at Daimler AG.

The technology centre - research and development depart-

ments are far more advanced than the others present. The

technology centre provides competence for upper- class

and luxury class vehicles. Strict procedures and safety pro-

tocols are followed by the authorities there.

The machines, especially the robots used for the manufac-

turing of the cars, are extraordinary as they are equipped

with cutting edge technology. The processes they carry out are efficient as well as eco-

friendly. However, the workers are also an important part in the manufacturing process as

they supervise the machine work and also do a lot of work themselves. ”For some processes,

we are faster, but we are also very expensive”, said a worker when enquired about their effi-

ciency against machinery.

The chemicals experimentally innovated in the R&D department of the Mercedes Benz AG

hold significance in the spray paints for the cars and adhesives used to join automobile parts

together, with strength, integrity and efficiency maximised for their purposes.

Humans are an integral part of even the most capital intensive automobile industry. This

industry involves the use of large amount of harmful chemicals, steel and huge body parts.

This environment leads to dangerous working conditions. The need of safety is needed from

the beginning of the manufacturing of the car to the end. These safety measures are not

only present or rather needed for the workers but also the customers buying the finished

products.

There are various stages in the production of the cars like molding, welding and spray pain-

ting and all of these involve threats and risks to human life. One of the major dangers is the

exposure to the manganese contained in fumes that are released during welding. Inhaling

manganese can cause prolonged damage to the brain and the nervous system of the wor-

kers, leading to major disorders like Parkinson’s disease and manganism that affect move-

ment and balance. The cadmium coating done before welding give out fumes that can lead

to respiratory problems.

However at Mercedes Benz, it is ensured that the employees of all strata and departments

work under safe and conducive environments. A few chemical hazards may include volatile

organics from paints, fillers and solvents. However, the sophistication of this process in the

company includes conveyor belts that pass the body parts through paints with little need of



human contact. The welding processes inside

are taken over by robots, that largely reduces

the contact between the workers and the

processes. Moreover they are provided with

safety glasses, earplugs and protective clothing

which largely reduce the impact of the heat,

fumes and the noise.

However, the noise pollution is not completely eliminated, which affects the environment.

The company also has medical policies for its employees which takes care of their health at

work and provides them with regular check-ups and medical aid.

The need for doctors is not restricted within the medical centers. They are involved in the

production line of the cars too. Mercedes Benz AG is highly known for their luxurious and

highly comfortable cars. The reason for this is because they pay close attention to every

minute detail. A team of highly qualified doctors and engineers ensure the optimum safety

and performance of their cars and these

results in high customer satisfaction.

Considering the different cultural setting in

which this marvelous factory thrives, we did

encounter various aspects that differ com-

pared to a similar factory in a contrasting

cultural setting such as the Indian

environment. Our scientific perspective of this

excursion extends not only to the three main

sciences, namely physics, biology and

chemistry, but also environment and human related sciences such as environmental studies

and psychology.

The smallest problem is taken care of, for example, since the worker population involves

people from different nationalities, maybe not to a large extent, they make sure that each

worker is comfortable in his own space and does not feel out of place. Being one of the lea-

ding manufacturers in their field, they use the most advanced technology and ensure opti-

mum utilization of machines and robots to perform tasks that are not possible for humans to

perform or may cause them harm. There are various methodologies and ideas that India can

adopt from this factory such as the various safety protocols that are exercised, the utilization

of technology to its utmost, and the enforcement of strict rules and regulations regarding

the working and procedure.

The safety protocols implemented at the factory include distance from heavy machinery,

health checks and other medical facilities. Risky tasks are done by robots and regular



maintenance is provided for all machinery, as it is of utmost importance for the reputation

of the company to take great care of their workers. Although the safety protocols used in the

Mercedes Benz AG factory are exceptional, they could be improved a little bit by providing

noise cancellation headphones with better noise cutting for workers rather than ear plugs.

These procedures and methods that take care of the safety of the workers should also be in

practice in the Mahindra factory in Mumbai, India.

By Esha Parikh, Lubaina Jaffri, Nilesh Rakhecha, Viyang Shah, Bhavi Nandu



A Study - Economic impacts of the transformation of Mahindra & Mahindra Ltd. to a capital-intensive

company and to India

In this report we will scrutinize the reasons why Mahindra & Mahindra Ltd. could consider a

gradual transformation into a capital-intensive firm and its impact on the country.

Effect on Employment

Capital investment in robots and advanced automation

could aid in increasing productivity, accuracy and speed up

the production process, it would also lead the company to

make several existing employees redundant and this step

could result in structural unemployment in the short run.

To compensate for this negative impact and maintain their

corporate social responsibility the firm could channelize

resources to retrain employees. However, unskilled workers who are comparatively occupa-

tionally and geographically immobile will have adverse effects on their individual careers and

the standard of living.

It is thus imperative to consider these workers and provide them with vocational training for

other opportunities to earn a living. It should further be noted that adopting automation

would also create demand for new skills and various types of knowledge required for the

company’s functioning.

Technology could also increase the scope of

expansion thus enabling Mahindra &

Mahindra Ltd. to achieve greater

economies of scale and to become more

competitive in the long run. Apart from

lower prices and a wider target market,

technology would aid the firm develop and

enhance features and safety procedures

which could make them the first ones in the

market to introduce something new and

thus become a leader in the market. After

the Cost Benefit Analyses, it can be argued

that while adoption of automation would be beneficial the change should be at a slower

pace.

Economies of Scale



Advertising and production

Mercedes Benz AGAG is an eminent car company due to

its emphasis on advertising and marketing and therefore

it spends a major portion of its revenue on its brand

name propaganda.

Amongst the various advertising methods adopted by

this company, its promotion through the sponsorship of

the Silver stone rollercoaster in Europe’s largest Adven-

ture Park – Europa Park, stands as a significant, innova-

tive technique. Since this park is visited by thousands of

people from all around the world, it enables Mercedes

Benz AG to advertise to a wider spectrum of people.

Mahindra & Mahindra Ltd. produce cars majorly for the

mass, thus it should continue advertising at public

platforms to enhance its brand recognition, since The Wall Street Journal named it in the Top

10 most innovative companies and hence it should try to keep up to their brand image.

Mercedes Benz AG uses a combination of Job and Mass Production. Job production involving

the customization of cars to the specific requirements of the customer (the material of the

interiors, color of interiors, color of car etc.). By using job production, Mercedes Benz AG

differentiates itself from other car companies in the in-

dustry as most car companies do not have the resources

to afford skilled workers to customize their cars, this not

only gives Mercedes Benz AG an edge over its competi-

tors, but is also a main difference between Mercedes

Benz AG and Mahindra & Mahindra Ltd. Mercedes Benz

AG uses batch production to produce the parts of diffe-

rent cars as different cars have different requirements (engine, body of car etc.).

Mahindra & Mahindra Ltd. specializes in providing agricultural vehicles using mass produc-

tion as a method of production to produce vehicles allowing Mahindra & Mahindra Ltd. to

benefit from economies of scale; their vehicles are cheaper as they are engaged in mass

production.

While Mahindra & Mahindra Ltd. uses batch production to manufacture cars for general use,

and its batch production is at a larger scale compared to Mercedes Benz AG, however its

limited customization puts it at a disadvantage against other firms in the car industry.



Management and Human Resources

Under human resources management, there were many differences in the way the workers

worked at each company. The employees at Mahindra & Mahindra Ltd. were not working on

the cars with any safety equipment on, therefore exposing themselves to hazardous material

that could possibly deteriorate the workers’ health. However, Mercedes Benz AG prioritized

on worker’s safety and even encouraged the visitors to wear safety glasses while visiting the

production factory. The production plant at Sindelfingen is a town itself therefore the Mer-

cedes Benz AG employees are a community, therefore their social needs are satisfied thus

increasing their employee motivation level. It also meets the Maslow’s pyramid of human

resource motivation, thus the management style at Mercedes Benz AG did seek to motivate

their workers to a great extent. Even though Mahindra & Mahindra Ltd. follows a different

management style, it is efficient in India because the company considers the priorities of its

workers. Mahindra & Mahindra Ltd. was also declared as the 2nd greatest place to work in

manufacturing and production was ranked 28 among the top 100 great places to work.

Impact on India

5% of the entire industrial production and 4% of India’s Gross Domestic Product depends on

the automobile sector, thus an advancement in this industry would aid India’s economic and

potential growth. A surplus in these productions of cars could result in an increase of export

and improve the country’s position of Balance of Payments. Unemployment benefits and

financial aids provided to these firms could however be an opportunity cost for the Govern-

ment and there might also be additional expenses. Since Mahindra & Mahindra Ltd. is a

private sector firm, it would also use some resources for Research and Development, which

would lead to more ideas and further advancement in technology.

The introduction of robots and technology

would increase investment in India and

probably the export position that would

cause an increase in the Aggregate

Demand (C+I+G+ (X-M)). Also further

training will increase productivity and the

number of skilled employees thus resulting

in an increase in the long run aggregate

supply. (Diagram 1.2)

By Vedika Darooka, Urja Jhaveri, Nehal Bajpai

Diagram 1.2



Vision of a new Mahindra car

Our new version of Mahindra with its advanced technology is ecofriendly. Unlike normal cars this car works on electricity and thereby it does not affect the environment by the release of toxic gases. The car comprises of solar cells which will produce electricity. The unused electricity is saved in the battery and can be used any time later when needed.

The modern shape and the doors equipped with stylish lights is an eye catcher on every road. Furthermore the car has the newest air condition system which is installed in the com-fortable seats. Therefore we filter the air and clean it from the polluted environment. The sliding doors are designed perfectly for the small parking places in big cities. For more com-fort we developed the latest suspension, stereo and shock absorbers. The windows are sun repellent to protect the passengers from the sun rays and to provide them with a comforta-ble ride. The new bumpers protect the car in road traffic and the sunroof gives a good driv-ing feeling. The car has a high quality interior which is made of recycled cotton and recycled plastics.

Furthermore the bodywork is made of recycled aluminum (for example from some drink cans) and out of stainless steel. This metal mix makes the bodywork light and solid which is perfect to drive and reduce the gas consumption. So the raw materials from the car are made of trash. This recycling system can help to solve the trash problems we have recycled trash to make new materials that are used to make these luxury cars. Besides the car will have a big and roomy boot. In the boot two seats are integrated in the bottom of the car which you can pull out if you need them. The new Mahindra of the future has a very power-ful six-cylinder engine which develops an output of 740 PS. If you buy the car, you will have a lot of options because you can choose the colour of the car, the colour of the interior, if your car should have a switch or not and if you want extras. As an extra you can have a load station for mobiles and laptops behind the front seats.



Furthermore you can have a GPS, drink holders which keep the drinks cool, an extra Wi-Fi Station. In the sunroof you can have an integrated touch screen where you can watch DVD´s, check your E-mails and you can skype with friends. As well you can have an autopilot and you can take massage chair instead of normal seats. Finally we are proud to present you the currently best car in the world.

By Arya Gupta, Leonie Dörr, Anika Kownatzky, Jennifer Neufeld



Vision of a new Mercedes car “The Best or Nothing”

Mercedes Benz AG is a German based multinational company. They are

known for their luxury and trustworthy automobiles. Our unique Future

Car has a sporty dynamic design; it is colored in authentic ice blue. And

it is made out of titanium which makes it shockproof and with a special

varnish which repels dirt. The eye catcher drives with electro energy

and is environmentally friendly.

The body of the car is made of titanium, a strong and light metal. Titanium is lighter and stronger

than steel, it is also non corrosive and thus serves as an advantage for our sports automobile. Tita-

nium is also an infinitely recyclable metal and can be used over and over again, thereby reducing the

metal waste. However with all these benefits the major drawback for the customers is the high price

of titanium. For the seats we have used high quality cloth, which is both recyclable and comfortable.

We have maintained major features of the form of Mercedes; in the front, we have the typical

Mercedes form which then converts to give a more sporty look at the rear. This gives the car a more

conventional appearance and pleases the customers. The main details of the Mercedes are kept the

same, the logo (the star) is placed in the front of the car to distinguish that it is a Mercedes Benz. The

wheels are also in the shape of the star, to show the viewer at the first sight that it’s a Mercedes

automobile. The doors of the car open in an upward direction to give it a more conventional feel.

Inside the car, we have one of the best sound systems for our customers, and we have also added a

new innovation which increases the sound volume as the car becomes faster, so that the customers

get to enjoy their music even if the background noise is too much.



Our automobile runs on solar energy. The solar panels are placed on the roof of the car which absorb

the sunlight and run the engine. We have decided to take this step, because of the increasing global

warming and the increase in the temperature, in this way we can use the sunlight to help run the car.

Since sunlight is a major requirement for this form of energy, it might not always be a sunny day that

is why we have an electric battery back-up system. And if both fail, we also have a gasoline back-up;

this ensures that the car keeps running. This form of energy is renewable and also beneficial for the

environment.

For us the safety of our customers is of prime importance, for this reason we have installed a button

near the steering wheel. With the help of this button the customer can communicate with the

nearest Mercedes store if their car breaks down or any other such mishap takes place. Also if the

engine gets too hot, there is an automatic cooling system which cools down the engine and prevents

any accidents. The airbag system is also of very good quality.

Although we have added new innovations and technologies to this automobile, we have still

managed to maintain the basic theme and style of Mercedes Benz.

By Smritee Paul, Jennie Bäumle, Iara Strittmatter, Lisa Böhler

Production Lines – Challenge for Companies · Eumind Project: TVET – Technical and Vocational...

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