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Mdi compressed air car  -new production concept 2010
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Mdi compressed air car -new production concept 2010

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  • 1. Motor Development International MDI CONCEPT MDI: 17 rue des Bains – 1212 Luxemburg Tel. : 00 352 26 26 23 25 CQFD is the French subsidiary of MDI 4ème avenue - 06510 Carros (France) Tel. : 00 33 (0) 4 97 10 20 20 / Fax : 00 33 (0) 4 97 10 20 21 Website : www.mdi.lu E-mail : cqfd.ad@mdi.lu Motor development international 0
  • 2. Production concept 2Turnkey factories to manufacture and sell locallyActivities 2Buildings 2Means of production 4Chassis workshopBodyworks- and assembly workshopPainting lineMechanical machining workshopMechanical assembly workshopVehicle assembly lineSaddlery – upholstery workshopTanks workshopComparative study 7Usual production systemThe usual system: a complex and polluting logistics 8 8Production of parts and componentsDistribution of finished productsThe MDI concept simplifies the logisticsAdvantages of the MDI concept- on the ecological level- on the economical and social levels- on the quality level- on the marketing level- on the costsAnalysis of the costs 15The MDI concept reduces the production costsAmortization 1
  • 3. MDI production concept Turnkey factories to manufacture and sell locallyFrom 1999, MDI imagined and invented the notion of Dealer / Manufacturer / Associateby proposing turnkey factories in order to produce and sell locally. Contrary to hugeconventional assembly factories (that are particularly polluting), the MDI concept sets upnumerous production micro-factories spread all over the world.They are equipped with all the necessary workshops to manufacture 80 % of the vehiclesand to commercialize their products on the spot.ActivitiesThe Dealers / Manufacturers / Associates are distributed on definite marketing zones andare owners of MDI factories. They carry out : o the manufacturing of the cars o the cars sales o the organization of their after-sales network o the manufacturing of the spare partsBuildingsThe factory should be located on a site near a big city, if possible in a commercial estate.A land of 15 000 m² is sufficient to set up a MDI plant. o Ground surface ………………………………………... 4 500 m² o Show-room and commercial surface………………… 600 m² o Production area…………………………..……………. 4 000 m² o Storage surface………………… …………………..… 1 000 m² 2
  • 4. 3
  • 5. Means of productionThe totality of the means and tooling necessary to the manufacturing of the MDI cars is providedby MDI. Chassis workshop Assembly tooling – Gluing gauges Bodyworks- and assembly workshopMoulding line (MDI patent) – Production moulds – Injection tooling – Foaming moulds – Foaming tooling – Laser cutting – 5 axis digital trimming – Template Painting line Preparation – Painting cabin – Painting robot – Drying room 4
  • 6. Mechanical machining workshop Digital machining centre – Specific machines – Special tooling – Three-dimensional control material - Metrology Mechanical assembly Specific tooling – Engine test bench – General tooling – Gear-box control Assembly linee4 Tooling and handling material – Subsets assembly benches along assembly line – Storage along assembly line 5
  • 7. Saddlery - upholstery Necessary means Tanks workshop Page 6 Liners blower – Wire coiling machine – Control implements - Drying room Storage meansPallets carrier – Shelving – Fork-lift – Handling material 6
  • 8. Comparative study Usual production systemThe conventional production method (practised by the global car makers) is based on alogistics of assembly and distribution. A « giga » - assembly factory located on one spotproduces the cars that are then delivered towards several countries, to distributors whoredistribute the cars to the dealers. 7
  • 9. The usual system: a complex and polluting logistics VANTAGES OF THE CONCEPT ACTUAL LOGISTICS PARTS PRODUCTION FINISHED PRODUCTS ASSEMBLY FACTORY P P Platforms and terminals T T Components suppliers Sub-components Distributors suppliers Raw material Dealers Customers The « supply chain » of the present makers is divided into two large sectors: The production of parts and components This production phase goes through: 1) The transformation of raw material into unit parts and through the manufacturing of sub-components by subcontractors (third 3) 8
  • 10. 2) The assembly of sub-components at the suppliers (third 2) 3) The manufacturing of main components (either at the suppliers, or in the plants of thee9 makers group) (third 1) 4) The final assembly All those operations require transportation that increases CO2 emissions 9
  • 11. The distribution of the finished productsTo bring the vehicles to the final customer, it is necessary to : 1) Store finished vehicles on platforms and terminals 2) Transport them to the importers and distributors in each selling country, who dispatch them to the dealers (by train, by truck and even by ship) 10
  • 12. 3) Sell them through a dealers networke 11 4) To finally reach the end user All the linking means between the participants (in the distribution of the finished products) require transportation that contributes to the increase of CO2 emissions. 11
  • 13. The MDI concept simplifies the logistics VANTAGES OF THE CONCEPT MDI CONCEPT SIMPLIFIES LOGISTICS X PARTS PRODUCTION FINISHED PRODUCTS X X X X ASSEMBLY PLANT X X X X X X XX P P X X X XX Platforms and T T X X terminals X X X X X Components suppliers Sub-components Distributors suppliers Raw material Dealers suppliers Customers o No distributors o No intermediate stocks o Less suppliers: 80% of the vehicle are achieved on the spot10 o The assembly plant is replaced by several MDI factories o The suppliers are selected in view of reducing the costs, the logistics and the transport o The purchases for all the factories are managed by the MDI Trading Group in order to derive profit from bulk purchases Considering the number of MDI factories necessary to the production of the same amount of cars produced in a conventional plant, the MDI concept enables: o A reduction of the CO2 rate caused by the transport of raw material and finished cars13 o A reduction of the logistics costs 12
  • 14. Advantages of the MDI conceptBy way of example, to produce the same number of cars as a usual maker in his assemblyfactory, 50 MDIs concept factories are required, that is to say: VANTAGES OF THE CONCEPT Usual plant MDI production concept 1 PLANT 50 PLANTS Production : 375 000 cars 7 500 cars 375 000 cars Land surface : 2 370 000 m² 15 000 m² 750 000 m² Plant surface : 880 000 m² 4 350 m² 217 500 m² Workforce (2 shifts) : 4 650 - 120 - 6 000 - Only 1/3rd of the land surface is necessary with MDI concept Only 1/4th of the plant surface is necessary with MDI conceptTo sum up, the MDI concept requiresinvestment is required with MDI concept Only 1/5th of the (in relation to the usual production mode): 30% more workforce are employed with MDI concept  1/3rd of the land surface  1/4th of the built surface  1/5th of the investment amount  30 % more labour 13
  • 15. On the ecological level o Only one third of the ground surface is necessary o Better distribution of the energy used for production o No pollution due to the transport of the finished products13 On the economic and social levels o The currency remains in the country  no need for change o Creation of local employment  no population transfer o Sharing out of the knowledge and of the know-how On the quality level o A car produced every ½ hour  careful production  quality o Use of techniques that are not compatible with mass production From the marketing point of view o Customers buy cars that are produced locally (especially public services) o Reduction of import duties/taxes (very high in some countries) On the costs o The MDI plants are small and easy-to-manage infrastructures (SME) o Logistics expenses are drastically reduced o No stocks of spare parts. These are manufactured « after-time » 14
  • 16. Analysis of the costs The MDI concept reduces the production costsHereunder, a quick analysis of the costs distribution on the selling price of a vehicle reveals theimportant margin made by a Dealer / Manufacturer / Associate who has acquired an MDIsconcept factory. VANTAGES OF THE CONCEPT SELLING PRICE / COST ANALYSIS CONVENTIONAL CAR MDI AIR CAR Amortization 4% Amortization 2% Purchases 32% Purchases 28% Production costs 11% Production costs 6% R&D 5% Royalties 10% Logistics 8% Logistics 1% Commercial costs 18% Commercial costs 7% Dealer commission 18% Overheads 4% Overheads 8% Gross margin 2% Gross margin 38%Amortization(- 2% for the MDI concept)This is the amortization portion that includes the buying price of the factory, the tooling, themachines, etc. In the case of a MDI plant, simple manufacturing methods enable to reduce theimpact of that amortization on the selling price.Purchases(- 4% for the MDI concept)The reduction of the percentage concerning the purchases is due to the fact that 80 % of the carare really produced on the spot. That integration allows reducing the number of intermediatesuppliers. The purchases are made through a MDI Trading Group for all the production factories. 15
  • 17. Production costs(- 5% pour the MDI concept)Those production costs are related to the staff and to the various running charges. Simpleproduction techniques, as also the use of already existing public services (no need for integratedservices, such as banks, buses, catering, safety, etc.) enable to reduce the production costs by50 %.Royalties(+ 5% for the MDI concept)Whereas a usual car maker reinvests about 5 % of a cars selling price into the R&D, MDIdeducts 10 % of that selling price as royalties. Those 10 % will be used for the R&D, but alsotowards: o the participation in international motor-shows o the publicity worldwide o the commercial and strategic management o the marketing resources o the dividends for the shareholdersLogistics(- 7% for the MDI concept)Only the transport and delivery of raw materials, as also the transport of the parts that are notmanufactured in the plant, are part of the logistics of the MDI concept.The suppression of some steps, such as: o transport of parts and subsets o cocooning and protection during transport o storage o transport of the cars to the terminals o transport of the cars to the dealers o preparation of the cars before selling o reparation of damages caused during transport (10% of the total production) allows reducing the logistics costs by about 7 %. 16
  • 18. Commercial costs(- 11% for the MDI concept)In this item, only the wages of the salespeople, the commissions and the local publicities play apart in the MDI concept. Whereas in the case of the usual car makers, the international motor-shows, the publicity worldwide, the commercial and strategic offices, as also the marketingresources are counted.Dealers commission(- 18% for the MDI concept)No commission for dealers, since the MDI production unit itself is the dealer.Charges(+ 6% for the MDI concept)Since the production factory is a SME, it will not be able to negotiate the charges (social or forelectricity supply, for example) to the same extent as the big car makers.This analysis of costs allows calculating the important margin that a Dealer / Manufacturer/ Associate can get, thanks to the MDI production concept. 17