New Product Development Life Cycle Of Tata Nano

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New Product Development Life Cycle Of Tata Nano

  1. 1. NEW PRODUCT DEVELOPMENT LIFE CYCLE<br />OF <br />TATA NANO<br />-Mr. Sandip Kadam<br />MMS Operations(87)<br />R.I.M.S.R<br />
  2. 2. What is the Product?<br />DIMENSIONS     <br />Overall Length:3099 mm   <br />Overall Width: 1495 mm (& 1620 mm with ORVM)  <br /> Overall Height: 1652 mm  <br /> Wheelbase: 2230 mm   <br />Ground clearance :180 mm   <br />Min. Turning Circle Radius: 4 m   <br />Seating Capacity: 4 persons   <br />Fuel Tank Capacity: 15 Liters   <br />Kerb Weight  <br /> Nano 600 kg   <br />Nano CX 615 kg   <br />Nano LX 635 kg   <br />Payload 300 kg<br />ENGINE & TRANSMISSION       <br />Engine Type: 624 cc, 2 cylinder, MPFI  <br /> Maximum Engine Output: 35 PS @ 5250 rpm <br />  Maximum Torque 48 NM @ 3000 +/-500 rpm   <br />Maximum Speed: 105 kmph  <br />Gradeability 30%   <br />Transmission: Synchromesh on all forward gears, sliding mesh on reverse gear with overdrive on 4th gear  <br /> No. of Gears: 4 Forward + 1 Reverse<br />
  3. 3. What is the Product?<br />SUSPENSION   <br />Front: Independent, Lower Wishbone, McPherson Strut with gas filled dampers   <br />Rear: Independent, Semi Trailing arm with coil spring & gas filled shock absorbers <br /> <br />WHEELS & TYRES      <br /> Tyre Type: Radial & Tubeless  <br /> Front Tyre size: 135/70 R12   <br />Rear Tyre size: 155/65 R12   <br />Spare Tyre size: 135/70 R12  <br /> Wheels : 4 B x 12<br />    <br />BRAKES<br /> Brake Type: Dual Circuit, Vertical Split operated by tandem master cylinder     <br />Nano CX With Vacuum Booster    <br />Nano LX With Vacuum Booster   <br /><ul><li>Front: 180 mm dia. drum brake  
  4. 4. Rear: 180 mm dia. drum brake</li></li></ul><li>Idea Generation<br /> At Affordable Price<br />
  5. 5. TATA NANO <br />“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] <br />“It led me to wonder whether one could conceive of a safe, affordable, all-weather form of transport for such a family”[Dream]<br />“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]<br />“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]<br />
  6. 6. Idea Generation<br />To create safe, affordable, all weather form of transport for a family<br />To create an option for people who want to move from 2 wheeler to 4 wheeler in affordable price (As little as 2 Wheelers)<br />
  7. 7. Idea Screening<br />A scooter with 2 extra wheels at the back for extra stability?<br />An Auto-Rikshaw with 4 wheels?<br />4 Wheeler car made of Engineering Plastics?<br />4 wheeled rural car?<br /><ul><li>But Market Wanted a Car and It should be like a Car
  8. 8. Not something that people will say, “Ah! That’s just a Scooter with 4 wheels and not really a car!”</li></li></ul><li>Concept testing And Developing<br />Mr. GirishWagh talked with customers<br />3 Wheeler men inevitably insisted on cheap and dependable truck<br />But he still kept asking “Why do u want a 4 wheeler?’’<br />Finally he got the answer, “If I had a 4 wheeler, I would have better marriage prospects in my village.”<br />4 wheels have emotional appeal, not just practical<br />
  9. 9. So What Type of New Product To Be Developed? <br />Car to cost Rs. 1 lakh on road<br />Car to be built on different platform than conventional ones<br />It must meet all the safety and regulatory requirements<br />It has to be built on a scale which is double than the earlier launches<br />A Truly People’s car: Low cost, Safe, Fuel Efficient<br />
  10. 10. Business Analysis<br />Cost: What makes the Nano so cheap?<br />
  11. 11. Important Decisions <br />Establish a factory in a tax free zone<br />Get the tax advantage on infrastructure development<br />Get the suppliers to establish base near the factory<br />Get special concessions from state govt.<br />In short select a Manufacturing location where all the advantages could be achieved<br />
  12. 12. DEAL OF TATA NANO (@Gujarat)<br /> A loan of Rs. 9750 Crore at 0.1% simple rate of interest<br />Repayment of this loan @ 0.1% over 20years.<br />They got 100% exemption on electricity duty<br />The 1100CroresLand has been given with high subsidies without any stamp duty registration and transfer charges<br />The payment for land would be made in eight equal annual instalment at a compound interest of 8% p.a.<br />
  13. 13. Total Sales Estimation<br />Demand for people’s car shall be at least twice that of demand for Maruti 800<br />Initial projections were 500000 cars per year<br />Assumption: 10% of 9 million 2 wheeler market transit to 4 wheelers and that will explode the demand<br />
  14. 14. Product Design & Development<br />Design Inputs from Institute of Development in Automotive Engineering, Italy<br />Constant Design changes<br />Design adaptations from Daewoo Matiz and Tata Indica<br />37 patents associated with the design of Nano<br />Modular Design Revolution: The Nano is constructed of components that can be built and shipped separately to be assembled in a variety of locations<br />
  15. 15. Continued…<br />“Gandhian Engineering” Approach i.e. More from less for more and more people<br />Much spacious than Maruti 800 (20 % more)<br />Use of Aluminum Engine to reduce weight and cost<br />Use of light weight steel wherever possible<br />
  16. 16. Prototype Development<br />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<br />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<br />Foot pedal had to be realigned to create more legroom<br />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<br />"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!" <br />
  17. 17. Testing<br />Crash testing<br />
  18. 18. Testing On Torture Tracks<br />
  19. 19. Testing On Torture Tracks<br />
  20. 20.
  21. 21. Production<br />Manufacturing facility located at Sanand, Gujarat<br />725 acres (for TATA) + 375 acres vendor’s park<br />At the vendors park 41 vendors allocated plots<br />About 80% of the value of components to be sourced from the park<br />Began with a capacity of 2.5 lakhscars/annum<br /> (Expandable up to 3.5 lakhs cars/annum)<br />
  22. 22. Continued…<br />Resource estimation<br />Engineering operations planning<br />Department scheduling<br />Supplier collaboration<br />Logistics plan<br />Program review and monitoring<br />Contingencies<br />
  23. 23. Commercialization<br />Launch the product<br />Produce and place advertisements and other promotions<br />Fill the distribution pipeline with product<br />
  24. 24. Marketing of Tata Nano<br />
  25. 25. “The TATA NANO innovation was not just in technology ;It was in mindset change.”Thank you<br />

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