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New Product Development Life Cycle Of Tata Nano
 

New Product Development Life Cycle Of Tata Nano

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    New Product Development Life Cycle Of Tata Nano New Product Development Life Cycle Of Tata Nano Presentation Transcript

    • NEW PRODUCT DEVELOPMENT LIFE CYCLE
      OF
      TATA NANO
      -Mr. Sandip Kadam
      MMS Operations(87)
      R.I.M.S.R
    • What is the Product?
      DIMENSIONS    
      Overall Length:3099 mm  
      Overall Width: 1495 mm (& 1620 mm with ORVM)  
      Overall Height: 1652 mm  
      Wheelbase: 2230 mm  
      Ground clearance :180 mm  
      Min. Turning Circle Radius: 4 m  
      Seating Capacity: 4 persons  
      Fuel Tank Capacity: 15 Liters  
      Kerb Weight  
      Nano 600 kg  
      Nano CX 615 kg  
      Nano LX 635 kg  
      Payload 300 kg
      ENGINE & TRANSMISSION      
      Engine Type: 624 cc, 2 cylinder, MPFI  
      Maximum Engine Output: 35 PS @ 5250 rpm
        Maximum Torque 48 NM @ 3000 +/-500 rpm  
      Maximum Speed: 105 kmph  
      Gradeability 30%  
      Transmission: Synchromesh on all forward gears, sliding mesh on reverse gear with overdrive on 4th gear  
      No. of Gears: 4 Forward + 1 Reverse
    • What is the Product?
      SUSPENSION  
      Front: Independent, Lower Wishbone, McPherson Strut with gas filled dampers  
      Rear: Independent, Semi Trailing arm with coil spring & gas filled shock absorbers
       
      WHEELS & TYRES      
      Tyre Type: Radial & Tubeless  
      Front Tyre size: 135/70 R12  
      Rear Tyre size: 155/65 R12  
      Spare Tyre size: 135/70 R12  
      Wheels : 4 B x 12
         
      BRAKES
      Brake Type: Dual Circuit, Vertical Split operated by tandem master cylinder     
      Nano CX With Vacuum Booster    
      Nano LX With Vacuum Booster  
      • Front: 180 mm dia. drum brake  
      • Rear: 180 mm dia. drum brake
    • Idea Generation
      At Affordable Price
    • TATA NANO
      “I observed families riding on two-wheelers –the father driving the scooter, his young kid standing in front of him, his wife seated behind him holding a little baby . This could be very dangerous in night travel or in stormy weather.” [Problem]
      “It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family”[Dream]
      “Tata Motors’ engineers and designers gave their all for about four years to realize this goal. Today, we indeed have a People’s Car, which is affordable and yet built to meet safety requirements and emission norms, to be fuel efficient and low on emissions”[Criteria]
      “We are happy to present the People’s Car to India and we hope it brings the joy, pride and utility of owning a car to many families who need personal mobility.”[Success]
    • Idea Generation
      To create safe, affordable, all weather form of transport for a family
      To create an option for people who want to move from 2 wheeler to 4 wheeler in affordable price (As little as 2 Wheelers)
    • Idea Screening
      A scooter with 2 extra wheels at the back for extra stability?
      An Auto-Rikshaw with 4 wheels?
      4 Wheeler car made of Engineering Plastics?
      4 wheeled rural car?
      • But Market Wanted a Car and It should be like a Car
      • Not something that people will say, “Ah! That’s just a Scooter with 4 wheels and not really a car!”
    • Concept testing And Developing
      Mr. GirishWagh talked with customers
      3 Wheeler men inevitably insisted on cheap and dependable truck
      But he still kept asking “Why do u want a 4 wheeler?’’
      Finally he got the answer, “If I had a 4 wheeler, I would have better marriage prospects in my village.”
      4 wheels have emotional appeal, not just practical
    • So What Type of New Product To Be Developed?
      Car to cost Rs. 1 lakh on road
      Car to be built on different platform than conventional ones
      It must meet all the safety and regulatory requirements
      It has to be built on a scale which is double than the earlier launches
      A Truly People’s car: Low cost, Safe, Fuel Efficient
    • Business Analysis
      Cost: What makes the Nano so cheap?
    • Important Decisions
      Establish a factory in a tax free zone
      Get the tax advantage on infrastructure development
      Get the suppliers to establish base near the factory
      Get special concessions from state govt.
      In short select a Manufacturing location where all the advantages could be achieved
    • DEAL OF TATA NANO (@Gujarat)
      A loan of Rs. 9750 Crore at 0.1% simple rate of interest
      Repayment of this loan @ 0.1% over 20years.
      They got 100% exemption on electricity duty
      The 1100CroresLand has been given with high subsidies without any stamp duty registration and transfer charges
      The payment for land would be made in eight equal annual instalment at a compound interest of 8% p.a.
    • Total Sales Estimation
      Demand for people’s car shall be at least twice that of demand for Maruti 800
      Initial projections were 500000 cars per year
      Assumption: 10% of 9 million 2 wheeler market transit to 4 wheelers and that will explode the demand
    • Product Design & Development
      Design Inputs from Institute of Development in Automotive Engineering, Italy
      Constant Design changes
      Design adaptations from Daewoo Matiz and Tata Indica
      37 patents associated with the design of Nano
      Modular Design Revolution: The Nano is constructed of components that can be built and shipped separately to be assembled in a variety of locations
    • Continued…
      “Gandhian Engineering” Approach i.e. More from less for more and more people
      Much spacious than Maruti 800 (20 % more)
      Use of Aluminum Engine to reduce weight and cost
      Use of light weight steel wherever possible
    • Prototype Development
      First Prototype: Vehicle which had bars instead of doors and plastic flaps to keep out the monsoon rains. It was closer to a “Quadricycle” than a car, and the first prototype
      Engine Issue: 540 CC engine when fitted on the prototype, lacked the necessary power. So its capacity was increased by 9%, then by another 9%, finally settled to a 623 CC engine
      Foot pedal had to be realigned to create more legroom
      The body had to be changed because Ratan Tata, over six feet tall himself, wanted it to be easy for tall people to get in and out of the car
      "Imagine the pain of the body designer -- he went through hundreds of iterations, then at the last minute the car length was increased by 100 millimeters!"
    • Testing
      Crash testing
    • Testing On Torture Tracks
    • Testing On Torture Tracks
    • Production
      Manufacturing facility located at Sanand, Gujarat
      725 acres (for TATA) + 375 acres vendor’s park
      At the vendors park 41 vendors allocated plots
      About 80% of the value of components to be sourced from the park
      Began with a capacity of 2.5 lakhscars/annum
      (Expandable up to 3.5 lakhs cars/annum)
    • Continued…
      Resource estimation
      Engineering operations planning
      Department scheduling
      Supplier collaboration
      Logistics plan
      Program review and monitoring
      Contingencies
    • Commercialization
      Launch the product
      Produce and place advertisements and other promotions
      Fill the distribution pipeline with product
    • Marketing of Tata Nano
    • “The TATA NANO innovation was not just in technology ;It was in mindset change.”Thank you