This document provides a high-level summary of the Indian auto industry, customer needs, and challenges faced by automakers. It discusses how automakers are using systems to meet evolving customer needs related to quality, usability, and design. Some key challenges mentioned include developing human capital and addressing supply chain risks from factors like natural disasters, government policies, and environmental changes. The document emphasizes the importance of maximizing product quality through continuous improvement efforts and transforming organizational culture.

1. Sarangarajan T
VicePresident(Opertaions)
TAFE
2015.11.29

2. INDIAN AUTO INDUSTRY
CUSTOMER NEEDS
SYSTEMS TO MEET CUSTOMER
NEEDS
CHALLENGES
HUMAN CAPITAL
RECAP

3. Red Herring, May 2002
Commonality: Railroad, auto, computer, nanotech
all are enabling technologies

4. Historyof theIndianautomotiveindustry
1980 1980~90 1990~2000 2000~

5. PassengerVehicle Industry
2015 PassengerCarIndustry expected to grow 8~10% (SIAMForecast)
- Major Reasons : Low Inflation, Decreasing Crude Oil Price, Interest Rate Cut
1073
1276
1481 1484
1748
2309
2430
2655
2461
2541
(+19%)
(+16%)
(+0%)
(+18%)
(+32%)
(+5%)
(+9%) (-7%)
(+3%)

7. Automobile- New Company& New Models
MAKERS 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
MARUTI 4 6 7 7 8 8 8 9 10 12 13 14 15 16
HYUNDAI 2 2 3 3 4 5 7 8 7 8 8 8 8 8
TATA 1 3 3 4 4 4 4 4 4 4 5 6 9 9
GM 1 2 2 3 5 6 8 8 8 8
FORD 1 1 1 1 2 2 3 3 3 3 3 4 4 4
HONDA 1 1 2 2 3 3 3 4 4 4 5 5 6 6
FIAT 2 1 2 2 2 2 1 1 1 1 3 3 4 4
SKODA 1 1 1 2 2 2 2 3 3 4 5 5
VW 2 3 7 7 7
TOYOTA 1 1 2 3 4 5 4 4 4 5 7 8 9
HM 2 2 2 2 3 3 3 4 3 4 6 6 6 7
M&M 1 1 2 2 2 2 2 3 3 3 4 5 5
MERCEDES 1 2 3 3 3 3 3 3 3 3 3 3 11 13
BMW 3 3 3 3 10 11
NISSAN 1 1 1 1 1 4 5 5
AUDI 3 4 9 9
RENAULT 2 3
Total
Models
14 20 26 29 36 40 44 48 53 61 75 90 122 129
Golden Period forHMIL Tough Competition

8. SUV Segment- Pricewar
Sumo
(6)
Hyundai Santa
fe
(24.0)
Toyota
Fortuner
(22.51)
HM
Pajero
(23.72)
HM
Outlander
(23.2) Nissan X
trail
(24.58)
Ford
Endavour
(18.92)
Skoda
Yeti
(17.69)
Chevy
Captiva
(20.42)
4,000
4,200
4,400
4,,600
4,800
5,000
* Length in mm
Maruti
Vitara
(19.16)
Tata Aria
(14.82)
M&M
Scorpio
(8.72)
M&M Bolero
(5.75)
Tata Safari
(8.6)
M&M Xylo
(7.74)
GM Tavera
(7.32)
Toyota
Innova
(9.35)
Maruti Gypsy
(5.6)
3,800
2000
2005
2011
LOW SUV
(< 10 Lakhs)
~ 2000 ~ 2005 ~ 2011
Hyundai 0 2 1
Competitors 0 16 21
MID SUV
(10 ~ 20 Lakhs)
HIGH SUV
(> 20 Lakhs)
Toyota
Prado
(60.29)
Honda
CRV
(25.16)
VW
Touareg
(58.94)
HM
Montero
(44.59)
* Delhi - On Road Price
Maruti
Ertiga
(8.0)

9. Junepromotionalschemecreative

10. Competitors – PaperAd

11. CUSTOMER MOOD
&
SENTIMENTS

12. GainingCustomerConfidence

13. • “Rattling in the back!”
• “I noticed blind spots on
each side of front windows.
I should have paid more
attention to that!”
• “Suspension is weak; cardoes
not cornerwell and does not
fell solid past 80 kmph”
• “smells stale’
Interior
InteriorDriving experience
Interior
• “Transmission shift too
early”
Transmission
• “Car pulls left at
highway speed
Driving experience
• “Seats are not
comfortable and without
lumbarsupport!.”
• “I feel like I need to
brake extremely early for
the carto stop
Brakes
CostumerVerbatim

14. ChangeinNeed
Change In CustomerNeed...
Customerreported vehicle issues were related to…
Traditional Quality  CustomerExpected Quality
Other
Usability
Design
Defect
Malfunction
11 %
13 %
76 %
9 %
39 %
52 %
2009 2014
(+26 %)
(-24 %)

16. The complex world of automotive
technology
Air-bags and
active safety
restraint systems
ABS with ESP
for enhanced
road safety
Highly sophisticated chassis
fine-tuned for a right balance of
comfort and driving
performance
Futuristic technology
like Nano-glass
for wiper-less
windshields
Compact and more fuel
efficient intelligent engines
and transmissions
Integrated Vehicle infotainment systems

18. HMI- ModelwiseSpec Details
Segment Model Engine Fuel TM
HMI Production Spec /Month
Remarks
Domestic Export Total
Compact
Eon 0.8 Petrol 5 M/T 9 61 70
Santro 1.1 Petrol 5 M/T 5 - 5
i10
1.1 Petrol 5 M/T
11 485 496
1.2 Petrol 5 M/T , 4A/T
i20
1.2 Petrol 5 M/T
12 405 4171.4 Diesel 6 M/T
1.4 Petrol 4 A/T
Midsize
Accent 1.5 Petrol 5 M/T 3 3 6
Verna
1.4 Petrol 5 M/T
12 - 12
1.6 Petrol 5 M/T, 4 AT
1.4 Diesel 6 MT
1.6 Diesel 6 M/T , 4A/T
Premium Sonata
2.4 Petrol 5 M/T
2 - 2
2.0 Diesel 6 M/T, 4 A/T
SUV Santa Fe 2.2 Diesel 6 M/T 3 - 3
Total HMI Operating Spec 57 954 1011

19. HMI- ModelwiseColorInformation
Eon Santro i10 i20 Accent Creta Elentra Sante Fe
CORAL WHITE P P P P P
SLEEK SILVER P P P P P
MUSH ROOM P P P P P
BRONZE P P
CLEAN BLUE P P P
BLACK DIAMOND P P P P P
PRISTINE BLUE P P
EMBER GREY P P P P
TWLLIGHT BLUE P
ELECTRIC RED P P
MAHARAJA RED P P P P
YELLOW P
10 6 11 8 4
CRYSTAL WHITE P P P
CORAL WHITE P
SLEEK SILVER P
SLEEK SILVER P P P
CARBON GREY P P P
ELECTRIC RED P
GARNETT RED P
MAHARAJA RED P
THUNDER BLACK P P P
ICE SILVER P P
SAPPHIRE BLUE P
VIRTUAL YELLOW P
STONE BEIGE P P
PURPLE FANTASIA P P
CO LORS
PLANT#1
TO TAL
PLANT#2
MO DELS

20. Specification- HMIModelPart Summary
MIP KD LP Total
Eon 13 385 1,621 2,019
Santro 11 451 758 1,220
i10 51 756 6,888 7,695
i20 36 966 14,136 15,138
Accent 21 868 743 1,632
Verna 14 604 931 1,549
Premium Sonata 1 916 86 1,003
SUV Santa Fe 1 920 87 1,008
148 5,866 25,250 31,264
Midsize
Total
Segment Model
Part Summary
Compact

22. ProductionPlanningProcess
Meeting
Sales (Exp /Dom)
Forecast Plan
(5 Month)
VENDORVENDOR
SEQUENCE
( D+ .. ..D+4)
BodyPaintAssy PBS
F/BACK
Body VENDORBody VENDOR
Assembly VENDORAssembly VENDOR
SAP
Vendor Portal
SAP
Vendor Portal
GMES
Server
TrimInput
Sequence Data
Confirmed
Day wise Plan
(1Month)
GMES
Server
MIP
(Press ,Eng & TM)
SAP
Sales Server
KD
Material Ordering
APS II
WOM
SAP
Vendor Portal

23. Hyundai- SupplyChainSystem
HMC, KoreaHMC, KoreaHMIHMI
India Local VendorsIndia Local Vendors
China
Korea
Japan
OverseasOverseas
VendorsVendors
Purchase OrderPurchase Order
Purchase OrderPurchase Order
Sea (60 ~ 90 days)
Air(5 ~ 15 days)
Raw matlRaw matl
PartsParts
Distributor
Customer
Finished cars
Glovis
MARKET

24. Hyundai- VendorNetwork
LOCATION
NOOF VENDORS
(SHOPWISE)
TOTAL
BODY
&
ASSY
% ETM % ALL %
SIPCOT 28
33
%
9
14
%
37
25
%
CHENNAI 43
51
%
35
56
%
78
53
%
OUTSIDE
CHENNAI
14
16
%
19
30
%
33
22
%
TOTAL
VENDORS
85 63 148
SIPCOT
NoofVendors:
37
25%
CHENNAI
No of Vendors:
78
53%
OUTSIDE CHENNAI
NoofVendors: 33
22%

25. MaterialFeedingFlow
OK01 F203 F202 F201 F103 F102 F101 C203 C202 C201
T101 T102 T103 T201 T202 T203 C101 C102 C103 C104
CM0
1
CM0
2
CM0
3
OKLINE
FINAL
2
FINAL
1
CHASSIS 2
CHASSIS
MARRIAGE
CHASSIS 1TRIM 2TRIM 1
Vendor
Transit of
matl
Unloading
matl in HMI
Empty
Collection
Material Temp storage &
feeding to stations

26. i10- Modules

27. Paint Shop- Process Flow
WBS
WBS PC
PT /ED SEALER UBS PRIMER
EXTRA WORK BLACKTAPE INSPECTION TOPCOAT
PRE TRIM
PBS
DURR
OEMPLC
GMES /SAP
Server
PLC
Server
DURR
OEMPLC
WAXBOOTH
Steel Barcode
reader Steel Barcode
reader
Steel Barcode
reader
Paint
shop
Body
shop

29. IMIS(IntegratedManufacturingInspectionSystem)
IMIS: ToImproveQualityThroughBetterFeedback
Quality ResultsIMIS Process
InspectionprocessInspectionprocess
Problem&RepairentryProblem&Repairentry
Vehicle S/off ControlVehicle S/off Control
BetterlinefeedbackBetterlinefeedback
Purpose Of Advanced IMIS
Real Time Quality
Information
Real Time Quality
Information RepairHistory ManagementRepair History Management
Sign Off Control forDefective
Vehicles
Sign Off Control for Defective
Vehicles
Inline Quality Keeper
Feedback
Inline Quality Keeper
Feedback
Quality Facility History
Management
Quality Facility History
Management
Advanced global
technology
Advanced global
technology
BetterQuality Through Advanced Technology Practice

33. Recall
Sales...
Brand image...
Resale value...
CustomerTrust...
Raw
material
TierII
TierI
OEM
Quality Confirmation
End to End confirmation by OEM...
Quality mistakes become disasterto Automotive Companies...

34. GROWTH PAINS

35. AShift inLeadershipStyle
Corporateleadership
Acontinuouslyevolvingemployeemindsetcallsforadynamicleadershipstylewhichensures
steadyprogressinallconditions.
Time
Plant #2Plant #2
1996
2008~
1997-2006
2006-2007
Challenges ahead
QuantumQuantum
leapleap
6,00,000
3,00,000
2,50,000
1,50,000
1,00,000
volume
3 shift3 shift
operationoperation
FoundationFoundation
Sales growthSales growth
&&
ExpansionExpansion

36. Realize the Reality
A session to know the market situation..

37. Detroit MEGACITYIN USA1927

38. BUSYSTREETIN Detroit.. 1930

39. Detroit's maintrainstation, openedin1913,
has not beenusedsince1988.

40. Lee Plaza Hotel
OnceoneofthemostluxuriousresidentialhotelsinDetroit
LeePlazaclosedinthe1990s.
WilliamLivingstone House
Constructedin1893intheonceelegantBrushParkneighborh
Itwasdemolishedlastyear.
Inside the plant.. now
Packard Plant
Luxury-automakerPackardproduceditslastcarherein1956.

41. Deathof Detroit

43. SupplyChainRisks
Natural Disasters
-CanLeadToFinancial, EnvironmentalOrHumanLosses
Effect
Supply FromTier2 & Tier1
Vendors Affected
Tragic Disaster UNEXPECTED
LOSS

44. Government Policy
& Regulations

45. Environmental Challenges

46. ClimateChange

47. FROM RECYCLE TO RECIRCLE..
Recycling vehicles provides
for 13 million new vehicles.
Saves an estimated 85
million barrels of oil a year
Provide customers quality
parts that sell forup to
50% less cost

48. Oil
Source: IHS Cambridge Energy Research Associates.
OPEC Supply Cuts
Global Oil
Demand Decline
US Dollar Appreciation
Global Economic
Contraction
High
Inventories
High
Spare Capacity

49. WorkForce
 Creation of resources and curricula to stay current with
technology
 Demanding "employability"orjob-readiness skills such
as communication, customer
 service, team-building, problem-solving, and language
skills
 Ability to thinkcompany first, individual next

50. MaximizingProduct QualityLevel
Quality Innovation + Continuous Management
Analysis
Technical
Transformation
Behavioral
change
Institutionalization
Time
* Shop FloorManagement
Quality Level
(Continuing SFM)
Shop FloorImprovement Shop FloorManagement
Focus on rapid
Improvement
events SFM
* Source : OliverWyman
Product
Quality
SFM Assure Stable Quality level with rising Volume
Quality Level
(Stopping SFM)

51. Act 302- TheWayForward
PresentPresent ProposedProposed
Quality
Productivity
Cost
Safety
Comm. &
morale
TFT’s
focused on
no. of projects
with an emphasis
on cost saving
• Core Value approach.
• All innovation activities shall
be categorized underthe
relevant core value.
• Activitytargets linked
directly to KPIand
business plantargets
Act
302302
Going Global
ACT302 ACT 302 GG

52. HMG CV Video
 Redressal of grievances and understanding employee problems can be
better if the top management is familiar with the shop floor proceedings
and the atmosphere
ODT
One Day Techie

53. HMG CV Video  Designed to “Break all Barriers” – coffee with CEO.
 Bottom-Up communication.
 informal discussion on work- related or any issues.
Coffee with CEO
Coffee With CEO

54. HMG CV Video
 “Best Employee” Award will be invited for lunch .
 With the top Management at the Farm House.
 Grievance and suggestions are discussed over the table in an informal manner.
 Appropriate and immediate action taken with prompt feedback given.
Lunch Box
Meeting
Lunch Box Meeting

55. HMG CV Video
Every year HMIL send 100 employees to Korea for one week,
To motivate & recognize best talent
To create awareness about the Korean values, culture, and work style.
Fly High
Fly High – Korea Motivation Trip

56. BMI Checking
WalkMiles
 Walk miles to bring smiles was an activity done for a noble cause
- Donation to orphanages through HMIF.
 For every round that the employee completes Rs 100 was given by
HMIF.
 A sum of Rs. 1,88,700 (1887*100) was collected through this
activity and will be donated to orphanages.
Walk Miles to bring Smiles

57. HMG CV Video
 HMG branded “Thank You Card” was distributed to all the employees in NEX/JEX/EXE Cadre.
 Employees in EXE & JEX wrote the Thank you message and gave the cards to their colleagues
/subordinates.
 Employees in NEX Cadre gave it to their colleagues /superiors.
ThankYou
Post Card
Thank you Card Event

58. HMG CV Video
 Yoga is the journey of the self, through the self, to the self
 We at HMI give an opportunity to experience this journey, relieve stress, relax and rejuvenate the soul
 Yoga classes by the Isha foundation are conducted for 7days every year for all the employees.
Yoga
ISHA Yoga

59. HMG CV Video
 The spouses of all newly married employees are invited to spend one full day at
the premises. Various cultural events, games, celebrity visits special lunch and lots
of gifts as well as a factory trip are lined up throughout the day. Managing Director,
all the department heads and group heads are available to greet them personally
on joining the Hyundai family.
NMCV
Newly Married Couple Visit

60. HMG CV Video
 An initiative to foster a feeling of care for employee’s children and a step towards making the children spend
their vacation with fun learning. Some of the activities that are covered in the camp are listed below:
Children’s Club
Children's Club
Handwriting Improvement Story Telling
Memory Development Telescope Viewing
Simple Science experiments Simple Drawing Technique
Fun Math Logical Reasoning
Origami Discipline

61. HMG CV Video
.
Spouse Club
Spouse Club
Fire Fighting English Classes
Self Defense Mushroom Cultivation
First Aid Yoga
Candle Making Cookery
Handicrafts Balanced Diet

62. HMG CV Video
Specific events are arranged for spouses and children.
Complete support from their family members.Foundation Day
Foundation Day Cultural Activities
Fun GamesMehandhi Competition
Rangoli

63. TNProject mgt Conf
Innovation Road Map at HMI
2014
2013
2012
2011
Cost Benefit to
Organization
As of Now
Employee
Participation
95%
94%
92%
90%
As of Now

65. ▣ HAVE BREAKFAST OR….
BE BREAKFAST
Biggest camera sellers?
Canon or Nikon?
Biggest music retailer India?
Hmv ? sa re ga ma?
Who will be biggest competitor
for Lufthansa or Singapore
airlines?
IT’S Samsung
IT’S AIR TEL!!
IT’S HP , CISCO!!