Roll # 18,19_Operations Management at Daimler-India

8/3/2019 Roll # 18,19_Operations Management at Daimler-India

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Daimler Bharat BenzNext Manufacturing Revolution

Presented by:

Kapil Vaish (PGP1018)Kapish Saini (PGP1019)


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Why Indian Truck Market is

generating buzz.


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The Railways used to handle 86% of the totalcargo volume in 1950-51 but today its share is

down to 30-32%

The truck segment is now poised on the brink

of a huge transformation.

The ever expanding highways network,technological advancement, and, to an extent,the corporatization of the highly fragmentedsector are all making the transportationbusiness sophisticated and efficient.


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Indias Hot NewWheels

The road transport business in the country is onthe cusp of a huge transformation, and the

credit goes to the arrival of the giant multi-axle

trucks.


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Light Commercial Vehicle (LCV)

Gross Vehicle Weight: 3.5 ton to 7.5 ton

Axle Type: 2- axle

Permitted Freight weight: Up to 2 ton

Intermediate Commercial Vehicle

(LCV)

Gross Vehicle Weight: 7.6 ton to 12 ton

Axle Type: 2- axle

Permitted Freight weight: 1-5 ton

Medium Commercial Vehicle (MCV)

Gross Vehicle Weight: 25 ton

Axle Type: 2- axle


Multi- Axle Trucks (MAT)

Gross Vehicle Weight: 26 ton to 49 ton

Axle Type: 3 or more axle


Types of Trucks in INDIA


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Why worlds largest truck maker

Daimler thought of opening its plantin India??


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Some Eye-Openers

Between 2005-06 and 2009-10, sales of trucks inIndia jumped nearly 17%

These commercial vehicles have become the

lifeline of Indian economy, catering 65% of thecountrys freight

India is taking to multi-axle trucks at anunprecedented rate sales jumped 55% between

2009 and 2010

Lighter vehicle posted a growth rate of around26%


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Production* Production*

Production* Production*

Sales* Sales*

Sales* Sales*

6,89,4512010

5,21,2402010

5,88,0772010

4,66,307

2009

1,26,9602010

1,00,3492009

1,16,8082010

92,2842009

88,5032010

79,7852009

85,3892010

76,556

2009

10,6322010

5,6942009

28,9922010

18,6732009

3.5 ton to 7.5 ton 7.5 ton to 16 ton

16 ton to 25 ton 25 ton to 49 ton

*Figure are the total for all manufactures in the countrySource: SIAM

Tracking the Truck Growth


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Role Reversal

The market share of MATs versus two-axle HCVs

has reversed in the past decade.

Tonnage 2000-2001 2010-2011

2 axled HCV 93% 31.5%

3 axled HCV 7% 68.5%


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What they are coming up with??


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Daimler has initiated the process of making its plant inOragadam, Chennai with an investment of 4.4 billion

rupee. This plant will also have a state-of-the-art test track,

one of its kind in South Asia in an area of 47 acres.


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Plant Details

Plant Name Daimler India Commercial Vehicle Pvt. Ltd., Chennai

SOP 02-May-2012

Production Planning APO for Scheduling and Sequencing Production Order

PLM ProcessDesigner

Capacity 72000/annum

Phase - 1 36000/annum (HDT 24000, LDT - 12000)

Shops Body, Paint, Trim, Chassis, Powertrain

Vendor Park Available

Outsource Parts/ Components Yes

Models HDT and LDT (7T to 49T)

Model Variants Day Cab and Sleeper

Colors 8 types

Employees 3000


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Challenges faced by Daimler prior to

this project..


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Are we drowning in paperwork??


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Are we depending on too many

systems and people to produce ONE

report??


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Do we need to train our people on

several Systems to do their job??


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Do we know the root causes of the

wastes in real time??


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Are regulations becoming tighter and

complicated day by day??


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How can we make the people have

the right information so they can do

their job??


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How can we all be on the same

page??


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And many more questions


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So following operations strategy was

adapted by Daimler


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Vision: Paperless operation

MESPhase 1

Material and production tracking

Material Handling and Production procedure

Quality Management

ProductionDispatching

Data Collection and reporting

MESPhase 2

Complete paperless operation

Integrating biometrics solution with the qualitymanagement system

Multi Plant architecture

FinalGoal

To bebenchmarkcommercialvehicle globally


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Operations

Main four shops in the plant

Body shop

Paint Shop

Assembly shop

Power train


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Body shop area

Main Line Assembly

Sub Assembly

Door Assembly

Front Assembly

Rear Assembly

Flore Assembly

Logistics Area

Metal Finish Line

Small Assembly Area


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Order Execution at Body Shop

SAP generates order

Stored in MES (dependencyon SAP is limited)

To different shop ordercontroller as per sequence


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Unique feature at sub assembly

Challenges

Different lead time of sub assemblys

Correct part is to be married with correct body

Pre fabricated reusable barcode


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THANK YOU

Documents

Roll # 18,19_Operations Management at Daimler-India