Auto Industry Case Study

Auto IndustryUnresolved Conflicts

Copyright © 2015 Vector Consulting Group. All rights reserved.

A typical company in the auto industry deals with following chronic conflicts

But at same time suffer from frequent stock outs

Dealers frequently complain of high FG stocks

(30 to 60 days)

despite having excess capacity

Plants struggle with high overtime

at month end



Manufacturing ends up producing what sales do not want immediately.

Despite all kinds of project control

systems and reviews, most

projects of NPD are grossly

delayed.

Assembly plants are continually

rescheduled despite having

parts inventory for about 20 to 30 days in plant

and vendor warehouses.

?


Some organizations in Indian auto sector have resolved the chronic conflicts and created a harmonious supply chain where demand and supply is synchronized almost perfectly.

Case Studies1. Fleetguard Filters Pvt. Ltd.

2. JK Fenner (India) Ltd.

3. Lucas TVS


Fleetguard Filters Pvt. Ltd.Leader in manufacturing and distribution of automotive filters to commercial vehicle segment.

Part of the Cummins group and over 400 SKUs, it is a major supplier to renowned OEMs. The Company has an extensive pan-India presence through its 125+ distributors and 20000+ retailers.

Fleetguard Filters has implemented TOC company wide to achieve significant improvements in financial and operational results.

In the 5 years of engagement with Vector, the sales have

Increased 4 times and profit 8 times.


ResultsFleetguard Filters Pvt. Ltd.

15%The growth

is inspite of the commercial vehicles

industry growing at about

CAGR.

100%It

provides near

availability to its OEMs

The new product

development is half the previous lead times. The

output of the new product development has increased 5 times

in last 3 years.


With five manufacturing facilities in Tamil Nadu and Andhra Pradesh and an undisputed market leader in Power Transmission Products, it exports to over 50 countries and is progressing towards a stronger global presence.

JK Fenner (India) Ltd.J K Fenner manufactures Industrial and Automotive V-Belts, Oil seals, Engineering Products providing total Mechanical Power Transmission and Sealing Solutions. It’s name is synonymous with transmitting mechanical power, in vehicles and industries.


ResultsJK Fenner (India) Ltd.

Industrial & Automotive Belts

34%increase in the bottleneck

operation leading to increase in average

plant output

Sales & ProfitsThe above actions

has led to significant increase in both topline

and bottomline YOY in Q1 2015-16

23%Oilseals

increase in the bottleneckoperation leading toincrease in average

plant output


Established in 1930, Lucas Indian Service (LIS) is aftermarket arm of Lucas TVS. It manufactures and/or distributes a wide range of auto parts including auto electricals, fuel injection equipment, ignition coils, solenoid switches, Lamps, horns and automotive batteries.

Lucas TVSLucas TVS a joint venture between Lucas (UK)and TVS (India )to manufacture Automotive Electrical Systems is the Leader in Auto Electricals design and manufacturing.


Same-day order fill rate has improved from

50% to 80%

Sales from regular

dealers converted as TOC distributors are growing

by an avg.

45%(when compared Apr Vs

Aug of 13 Vs 14)

Overall inventory has

reduced by

25%

ResultsLucas TVS Ltd.