The Nano Saga
-
Upload
shibkrishna -
Category
Documents
-
view
215 -
download
0
Transcript of The Nano Saga
-
8/9/2019 The Nano Saga
1/41
1
WELCOME
TO
THE WORLD OF
BUSINESS EXCELLENCE
-
8/9/2019 The Nano Saga
2/41
N A N OT H E
2
-
8/9/2019 The Nano Saga
3/41
CIRCA 2003 A.D.
3
-
8/9/2019 The Nano Saga
4/41
A D R E A M ISB O R NI observed families riding on
two- wheelers -- the fatherdriving the scooter, his youngkid standing in front of him, hiswife seated behind him holdinga little baby. Add to that theslippery roads & Night time too.It is downright dangerous.
It led me to wonderwhether one couldconceive of a safe,
affordable, all-weatherform of transport for 4
-
8/9/2019 The Nano Saga
5/41
T H E R E S O L V E
Weshould
develo
patranspor
t
which
-Addresse
stheseprob
lemsan
d
-isaffo
rdabletom
asses.
5
-
8/9/2019 The Nano Saga
6/41
T H E P R I C E O FB E IN G M I S Q U O T E D
The car was not initially scheduled to bepriced at Rs 1 lac.
In an interview, at Geneva motor show, acorrespondent from Financial Times ofLondon asked Mr. Tata about his
projected price of the peoples car andMr. Tata replied about Rs 1 Lac.
The next day the paper quoted that Mr.Tatas shall roll out a car for Rs 1 Lac.
The New
sof 1
lac c
ar
electr
ifiedthe
industry
and
thep
ricestuck
.
6
-
8/9/2019 The Nano Saga
7/41
AND THUS BEGAN AJOURNEY
7
-
8/9/2019 The Nano Saga
8/41
A scooter with two extra wheels at theback for better stability?
WHAT SHOULD WE MAKE??
An Auto-rickshaw with four wheels?
A three wheeled car like a closed auto-rickshaw??
A four wheeled car made of EngineeringPlastics?
8
-
8/9/2019 The Nano Saga
9/41
A Four wheeled rural car?
WHAT SHOULD WE MAKE ??Contd.
Rolled up Plastic curtains in place of
windows?
Openings like Auto rickshaws from theside instead of a door?
A four wheeled open car with safety side
bars?
EXECUTI
VEDECISION
Themark
etwantsacara
ndifweb
uild
a peoples
carit should be
a car an
d
notsomet
hingthat
peoplewouldsay,
Ah!
Thatsjust a
scooter w
ith four
wheels, o
r anauto-rick
shaw with
four
wheels&
notreally
aCar.
9
-
8/9/2019 The Nano Saga
10/41
HOW MUCH TO MAKE??
THE DEMANDPROJECTIONS
10
-
8/9/2019 The Nano Saga
11/41
DEMA
ND
PRICE
PricePoint
at
which
demand
explod
es
THE DEMAND - PRICE RELATIONSHIP
The demand rises slowly till the threshold
price point beyond which it rises11
-
8/9/2019 The Nano Saga
12/41
If only 10% customers of 9 Million two wheeler
market transit to 4-wheelers it shall amount to 50% of
the passenger car market share.
THE DEMAND PROJECTIONS
It was estimated that the demand for the peoples car
shall be at least twice the demand for Maruti 800, thelowest end car. Initial projections were at about 500 K
cars per year.
The basic reason was the conviction that the targetprice shall redefine the 4 - wheeler segment.
The price decision of Rs 1 lac is definitely going to
make a lot many people transit to 4-wheeler fold andthat shall explode the demand.
Itwas
decidedto
setu
pplan
tswith5
lacsc
arspe
r
annum
capac
ityandr
ampt
hesam
eupinsta
ges,in
line
within
crease
inmarket
dema
nd.
12
-
8/9/2019 The Nano Saga
13/41
THE CUSTOMERSVOICE
13
-
8/9/2019 The Nano Saga
14/41
It may be an upgraded Auto-rickshaw with plasticbody. It shall be a very unsafe car as the very idea
of 1 Lac car is too far fetched to be true.
THE SCEPTICS
It is impossible to build a car at such a price. No
one has been able to do it so far. It is just notpossible.
It will be more like a scooter with a roof. I am sure
no one can make the car for the cost of two bikes.
It shall be a half car with no roof. I doubt if it will be
able to go up the flyovers.
It shall never meet the emission norms. We shall
choke on the poisonous emissions from this car.
Thed
isbelief
keptp
ilingu
pandu
pand
was
further
comp
ound
edbyt
heco
mpeti
torsadd
ingth
eirown
mite
tothe
speculati
ons.
14
-
8/9/2019 The Nano Saga
15/41
I hope I can take my family of 4 in this car. I wishTatas make this dream a reality.
THE FENCE SITTERS
IT HAS NOT BEEN DONE EVER. Even the nearest
car is double the cost. Let us see what Mr. Tata cando to maintain the price line.
I am not very convinced but would definitely go for
it if it is safe.
I know the talk is that it is a myth. However
miracles do happen. Let us wait and watch.The
reaction
wasa
mixed
one.Peo
plewi
shedit
tobe
trueb
utwereve
rycau
tiousa
boutexp
ressin
gthei
r
optimi
sm.
15
-
8/9/2019 The Nano Saga
16/41
CONVERTING THECUSTOMERS VOICE
16
-
8/9/2019 The Nano Saga
17/41
It should not emit poisonous fumes.
Must meet the mandatory Emission norms. I should be able to sit comfortably in it with my
family.
It should have adequate space to at least 4persons.
THE ORDER QUALIFIERS
It must be a safe car.
Must meet the mandatory Safety Standards.
It should look like a car and not a contraption.
To have a good ergonomic shape.
Theexpec
tations
were
veryclea
rlyspe
ltout
andhad
tobe
met.The
scept
icism
wasvery
evide
ntand
so
theca
rhad
toconform
toall
thereg
ulatoryno
rms.
17
-
8/9/2019 The Nano Saga
18/41
THE ORDER WINNER
PRICE TAG
OF
Rs 1 Lac
18
-
8/9/2019 The Nano Saga
19/41
STRATEGIC IMPERATIVES
19
-
8/9/2019 The Nano Saga
20/41
The car has to be designed so that it can be
exported to other countries as the domestic
demand may not materialise as per projections.
The car should be built on a different platform than
conventional ones.
It must be meeting all the safety and regulatoryrequirments.
THE STRATEGIC DECISIONS
The car to cost Rs 1 lac on road.
It has to be built on a scale which shall be more
than double the earlier launches of similarproducts and the ramp up must be smooth.Thecarm
ustbe
abea
conforth
eIndia
nAutomobi
le
indust
ryandp
rovet
othe
worldthat
wear
ecapa
ble
totake
anychall
engea
ndcom
eoutworth
ywinn
ers.
20
-
8/9/2019 The Nano Saga
21/41
The design has to question the need of each and
every component from the point of view of itsnecessity of existence and also the minimum
requirements of its functionality. Value
Engineering concepts have to be deployed to
finalise the minimum requirements.
Since the car had to be built within a cost of Rs 1
Lac, no conventional design would work as the costs
shall be higher and so the entire car has to beredesigned.
THE TECHNOLOGICAL IMPERATIVES
Rather than a Sustaining Technological Imperative
we have to go for lateral thinking and adoptDisruptive Technological imperatives.
21
-
8/9/2019 The Nano Saga
22/41
THE TECHNOLOGICAL IMPERATIVESContd.
Sustaining Technology:
Type of Technology that seeks to improvethe performance of Existing and newProducts thru' incremental improvements.
Includes Incremental and sometimesRadical Innovations thru' translatingCustomers' Voice into product attributesand incurring investments in R & D.
These Technologies foster improved product
performance along the dimensions o
performance that the Customers have
traditionally valued. 22
-
8/9/2019 The Nano Saga
23/41
THE TECHNOLOGICAL IMPERATIVESContd.
Disruptive Technology:
A Technology that is:
Significantly cheaper than existing Technology.
Is much higher performing.
Has greater functionality and
is more convenient to Use.
Is a Technology that brings radical changeby introducing new ways of doing thingsusually at a much lower before.
Brings to market a totally different Valueproposition than the one available and can
change the Paradigm about a product. 23
-
8/9/2019 The Nano Saga
24/41
THE COST REDUCTION PARADIGM
Value Engineering Alternatives:
The Alternatives are:
The Guiding factor was that the cost has to beminimised for each component yetmaintaining its basic functionality.
Reduce Consumption of Material being used.
Alternate Suppliers to get same material atless prices.
Use alternate materials.
Eliminate use of Material.
Eliminate a process.
Or a Combination of the above.
Thetar
getwa
sverycle
arlyd
efined
that
withinth
egive
ncost
structur
eof1
Lacall
thecompo
nents
have
tobeallo
cated
a
maxim
umprice
andt
hesam
ehadto
be
achie
vedus
ingthea
vailab
lealt
ernatives.
24
-
8/9/2019 The Nano Saga
25/41
THE COST REDUCTION PARADIGM
Locational Imperatives:
The Decisions were:
The Guiding factor was that the tax structure,on materials and manufacturing, mustsupport the final cost of Rs 1 Lac
Establish factory in a tax free zone.
Get the tax advantages on infrastructure
development. Get the suppliers to establish base near the factory.
Get special concessions from State Govt.
Inshortselec
tamanu
facturingloc
ationw
hereall
theadvan
tagesc
ouldbeac
hieved.
25
-
8/9/2019 The Nano Saga
26/41
Their willingness to work on tight cost and time
deadlines.
THE COST REDUCTION PARADIGM
Supply Chain decisions:
The Decisions points were:
Guiding factor was that the suppliers to beselected on the basis of their acceptance towork on tight cost guidelines.
Suppliers Technical capability to tweak the design.
Their willingness to be a part of theprestigious project.
Their willingness to establish their facilities nearthe car manufacturing plant.
Inshor
tselect
suppliers
fromt
heperspect
iveof
deriv
ingma
ximumleve
rageou
tofpar
tnership
clearly
withthe
objectiveo
fswimt
ogethe
r,
creatin
gaWIN
WINsituation
.
THERE
HADTOBE
NOQU
ESTION
OFSINKIN
G
26
-
8/9/2019 The Nano Saga
27/41
A DREAM IS REALISED
27
-
8/9/2019 The Nano Saga
28/41
THE CAR PER SE
Engine Capacity Bosch 624 c.c. twin cylinder
Low capacity, Lighter ,sufficient with betterPower weight ratio
Rear Engine to reduce the transmissionlength using a balancer shaft.
4 Speed Manual Gear Box
All Aluminum Engine
Higher thermal conductivity than cast iron,Lighter and so better mileage
Engine Management System by Bosch
Superb control over emission and smoothacceleration.28
-
8/9/2019 The Nano Saga
29/41
THE CAR PER SE
Dimensions L: 3.1m, W: 1.5m, H: 1.6m
Less length but more inner cabin space dueto height. Comfortable leg room.
Independent Front & Rear SuspensionMcpherson Strut in Front & Coil spring &trailing arm in rear.
Better ride than Maruti 800.
Single piece ribbed steel body with safetyfeatures such as crumple zones, intrusionresitant doors, seat belts, strong seats &anchorages.
Safety requirements are adequately met. 29
O O S G G
-
8/9/2019 The Nano Saga
30/41
AN EPITOME OF SMART ENGINEERING
Single Wiper in place of two.
Cost effective yet functionality is met
Tube less Tyres
Weight reduced by 2 Kg. Cost reduction 200Rs. And in line with modern vehicles
Instrument console in the centre
Elegant to look at and can be used both inLeft Hand & Right hand version.
The list goes on and on.
TheFina
lverd
ict
THECA
RCOS
TSRs1lac
30
-
8/9/2019 The Nano Saga
31/41
CRY OF THE SCEPTICS
&
MYTHS DISPELLED
31
-
8/9/2019 The Nano Saga
32/41
MYTH No. 1
Nano is an Unsafe car
The car has a All steel body.
It meets the mandatory Frontal Impact
requirements.
It also meets the Side Impact requirements
although they are not mandatory in India.
32
-
8/9/2019 The Nano Saga
33/41
MYTH No. 2
Nano will greatly increase the Pollution Level
The car is Bharat IV and Euro IV compliant
although these norms , which are stricter than the
present Bharat III norms, are yet to be introduced.
It has lower carbon footprint, 20 mg / Km of
Carbon Dioxide emission as compared to 45mg /
Km, emitted by most of the two wheelers.
Its Multi Port Fuel Injection system is controlledby an intelligent Bosch Engine Management
system which controls the combustion cycle
precisely to ensure compliance to all emission
norms. 33
-
8/9/2019 The Nano Saga
34/41
MYTH No. 3
Nano will struggle to perform
Although the car has 33 bhp as the maximum
horsepower it has a low kerb weight of 550 Kg and
so has a higher power-to weight ratio when
compared to many existing cars running on Indianroads.
The car has a matching acceleration to Maruti 800
and also a good top speed. Although themanufacturers have estimated 90 Kms as the
maximum speed the car can go upto 105 Kms per
hour top speed.
34
-
8/9/2019 The Nano Saga
35/41
MYTH No. 4
Nano has very Little leg room
Although the car is 8% smaller thanMaruti 800 it has lot of extra leg room atfront as there is no engine compartment.
This also leaves sufficient knee room atthe rear . The car has a tall boy type design so there is lot of
head space and also enough Shoulder room.
The mono volume design and the wheelshaving been put at the corners have freedup lot of in- cabin space and although thecar may be registered as a four-seater,
three slim adults can sit comfortably at35
-
8/9/2019 The Nano Saga
36/41
MYTH No. 5
Cheap means Uncomfortable
More comfortable than some of the carsselling at even twice the price. leaves
sufficient knee room at the rear .
Easy to get in & out of the car because of perfect
seat height from the ground.
Suspension systems are good and thetrailing arms with coil springs are not
found in cheap cars. rear. 36
-
8/9/2019 The Nano Saga
37/41
MYTH No. 6
Its very difficult for a rear - engined car to work.
Rear engines work in many cheap as wellas expensive cars.
Auto-rickshaws at one end and Formula One cars
on the other extreme all use rear engines.
Maruti Omni too has a rear engine, underthe seat and no one has been burnt due
to that. Cooling is easier in Nano as compared to
some vans and there are the air ducts oneither side behind the edge of the doors,
which allow air to seep in for both cooling37
-
8/9/2019 The Nano Saga
38/41
MYTH No. 7
There is a shortage of storage space.
There is some storage space although notmuch.
The rear seat with parcel shelf folds to allow
accommodating a large suitcase.
Small articles can be placed under thebonnet also.
38
-
8/9/2019 The Nano Saga
39/41
MYTH No. 8
Cutting Corners is evident everywhere
Cost cutting is done by smart designingrather than taking out the essentials.
One wiper has been taken out but the functionalityis intact. Wind shield washer fluid jets are
mounted on the wiper itself rather than the body.
Wheels are held by three bolts instead offour.
On the contrary, MRF tubeless tyres andall Alumininium engine, have been used,
which are more expensive than39
-
8/9/2019 The Nano Saga
40/41
THE MARK OF A MAN
Since we started the
project more than four
years back, there has
been a steep increase inthe input costs
B U T A P R O M I S EIS
A P R O M I S E40
-
8/9/2019 The Nano Saga
41/41
41
EXCELLENCE IS AN ENDLESS JOURNEYLIKE WALKING TOWARDS THE HORIZON
NO MATTER HOW FAR YOU WALK
IT DOES NOT CHANGE
E E E