Catapulting Auto Ancillary Industry To The Next Level
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Catapulting Auto Ancillary Industry To The Next Level

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Valcon India\'s Auto & Auto Ancillary sector brochure highlighting the value propositions vis-a-vis the industry challenges.

Valcon India\'s Auto & Auto Ancillary sector brochure highlighting the value propositions vis-a-vis the industry challenges.

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Catapulting Auto Ancillary Industry To The Next Level Document Transcript

  • 1. Catapulting automotive ancillary industryto the next level
  • 2. The auto component industry is at an inflection pointABOUT VALCON The automotive ancillary industry has come a long way in terms of qualityValcon is a consulting company with of products and technical capabilities. As India becomes the hub forScandinavian roots and a global global automotive giants and Indian manufacturers alike, unprecedentedreach. opportunities present themselves to the auto component industry.Our local presence and insightscurrently cover Denmark, Sweden,Norway, India, China and EasternEurope.We help you manage both strategic Procurementand operational challenges to Managing costsgrowth, efficiency, innovation, supplyglobalisation and transparency. chain Continuous manufacturing capability and quality improvement However, challenges need to be overcome to unlock the true potential: ƒƒ Low productivity ƒƒ Pressure on margins ƒƒ Raw material price volatility ƒƒ Need for continuous technology and quality upgradation ƒƒ Shortage of skilled manpower
  • 3. Product developmentRobust product development process ensuring newproduct on time at the right cost Challenges Imperatives CLIENT A global renewable energy company VALCON INTERVENTIONS Partner in developing newƒƒ Significant differences in ƒƒ Improve cost estimation by products actual and estimated cost of using scientific techniques like new product ZBC, ABC, etc. BENEFITS ACCRUED ƒƒ Development time reduced toƒƒ High variability in process post ƒƒ Improve process controls less than 6 months start of production (SOP) ƒƒ Implement robust project ƒƒ 3 patents – allowing the company to take control of theƒƒ Delays in project delivery due management approach to solution space. Competitors are to multiple iterations in meet delivery and left behind with the traditional developing required proto- performance requirements heavy design solution parts ƒƒ Establish system to studyƒƒ Lack of understanding of export market requirements export market requirements using techniques like voice of for new products customer (VOC), quality func- tion deployment (QFD), etc. Valcon’s value proposition ƒƒ Product cost reduction ƒƒ Product and technology planning ƒƒ Manufacturing and process technology ƒƒ Reduction in go to market time ƒƒ Increase productivity ƒƒ Innovation
  • 4. Procurement Achieving highest value for sourced products and services at lowest pricesCLIENT Challenges ImperativesAn engineering major faced withhigh procurement costsVALCON INTERVENTIONS ƒƒ Non standardised procurement ƒƒ Creating standardExecution of procurement practices procurement document andtransformation program ƒƒ Multiple suppliers for indirect sourcing strategyBENEFITS ACCRUED items and services ƒƒ Supplier rationalisationƒƒ Cost savings of INR 650 Million ƒƒ High procurement costs of ƒƒ Identification of localisationƒƒ Streamlined 80 processes imported components/raw opportunitiesƒƒ Improved visibility of procure- ment spend across categories material/technology ƒƒ Alternate source development, ƒƒ Low bargaining power with global sourcing bigger suppliers ƒƒ Analysis of spend, setting up ƒƒ Rising share of procurement category management costs in COGS Valcon’s value proposition ƒƒ Cost savings ƒƒ Performance measurement ƒƒ Risk management ƒƒ Supplier development ƒƒ Setting up international procurement offices
  • 5. ManufacturingCreating a flexible, efficient production system thatdelivers highest quality at lowest cost Challenges Imperatives CLIENT Tier-one component supplier for the world’s largest motorcycle manufacturer facing capacity andƒƒ Under-utilisation of plant ƒƒ Implementing operational quality issue capacity due to poor asset excellence program to improve VALCON INTERVENTIONS performance OEE and throughput Implementation of operational excellence programƒƒ Cost leakages due to high ƒƒ Focus on supplier quality rework/quality rejections improvement and achieving BENEFITS ACCRUED superior process control ƒƒ Overall throughput increasedƒƒ Rising conversion costs by 10-20%ƒƒ Excess inventory affecting ƒƒ Improving flexibility in ƒƒ Increased up-time by 20-30% production ƒƒ In-process rejections reduced turnover rate and space from 2.4% to 0.06% of net utilisation ƒƒ Reducing inventory by salesƒƒ Demand fluctuations affecting improving flow of material on production scheduling shop floorƒƒ High plant wastages ƒƒ Focus on cost reductions by improving process yield Valcon’s value proposition ƒƒ Operational excellence ƒƒ Cost reduction ƒƒ Quality improvement ƒƒ Throughput and capacity enhancement ƒƒ Lean manufacturing
  • 6. Supply chain Developing an agile supply chain to deliver the right product at the right time with maximum cost efficiencyCLIENT Challenges ImperativesWorld’s leading heavy machinerymanufacturer facing challenges instabilising supplier operations ƒƒ Inconsistent delivery ƒƒ Implementing integratedVALCON INTERVENTIONSImplementation of supplier performance supply chain planning systemdevelopment program involving ƒƒ Volatility in demand affecting ƒƒ Improving forecasting andƒƒ PPAP activities responsiveness demand planningƒƒ Capacity and production planning ƒƒ Margin erosion due to rising ƒƒ Implementing suitableƒƒ Material planning and supply chain and distribution inventory management system coordinationƒƒ Delivery planning costs in supply chain ƒƒ Poor delivery and quality ƒƒ Developing supply chainBENEFITS ACCRUEDƒƒ PPAP activities completed performance of suppliers performance scorecard within record 70 days ƒƒ Ineffective supply chainƒƒ RCCP, WIP planning modules performance metrics implementedƒƒ Cost reductions by migration from air to sea freight Valcon’s value proposition ƒƒ Inventory optimisation ƒƒ Inbound and outbound logistics optimisation ƒƒ Sales and operations planning ƒƒ Supply chain process planning
  • 7. Valcon = Value ConsultingOur offerings come with a promise of taking ourclients further and leave lasting footprintsOur areas of competence ƒƒ Productionƒƒ Business strategy execution ƒƒ Logistics OUR CLIENTS We have worked with customers inƒƒ Marketing and sales ƒƒ Procurement India across pharma, auto andƒƒ After sales service ƒƒ Research and development engineering, EPC and FMCG sectors with prestigious companies like ƒƒ Saint Gobain ƒƒ FLSmidth OUR TEAM ƒƒ Castrol You will always be assisted by a team of highly skilled and experienced management ƒƒ Biocon consultants – as well as seasoned subject matter experts. Every one of them is ƒƒ Novozymes thoroughly competent within their area; a competence built through impressive ƒƒ Chandra Pearls careers on the other side of the desk – and in the field. ƒƒ Rangsons Electronics Our consultants have previous working experience in Ford, Toyota, Suzuki, Ashok ƒƒ Caterpillar Leyland, Volvo, Caterpillar, Nokia, Saint Gobain, Escorts Hospital, Motorola, Bajaj, ƒƒ Hero Group McKinsey, PwC, Wipro, ISRO, Dalmia, Asian Paints, Castrol, Coca Cola, and Schlumberger. ƒƒ Murugappa Group ƒƒ Uniparts OUR PHILOSOPHY Value Consulting means that creating value is the starting point for our efforts. The values that we create are traceable throughout our client companies. We believe in professionalism as foundation of all our efforts . Valcon is action – oriented. We will not only tell you what needs to be done- but also how. And if necessary we can do it for you as well. In short: Valcon will take you further.
  • 8. Connect with usOur offerings come with a promise of taking our cli-ents further and leave lasting footprintsKrishnan NaganathanCEOkrn@valcon.in+91-97 9103 3967 & +91-44-4210 2121Sandeep DahiyaAssociate Directorsada@valcon.in+91 9008 366300Valcon Management Consultants Pvt. LtdNo. 608A, 6th Floor, Spencer Plaza, 768/769, Annasalai, Chennai,India-600 002Anirban MazumdarAssociate Directoranma@valcon.in+91-98 104 76116Valcon Management Consultants Pvt. Ltd001, U & I Corporate Center, Plot 47, Sector 32, Gurgaon,India-122 001www.valcon.in