Daimler Bharat Benz

Next Manufacturing Revolution

Presented by:
Kapil Vaish (PGP1018) Kapish Saini (PGP1019)

Why Indian Truck Market is generating buzz .

 The Railways used to handle 86% of the total cargo 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 fragmented sector are all making the transportation business sophisticated and efficient.

India s Hot New Wheels

The road transport business in the country is on the cusp of a huge transformation, and the credit goes to the arrival of the giant multi-axle trucks.

Light Commercial Vehicle (LCV)

Intermediate Commercial Vehicle (LCV)

Gross Vehicle Weight: 3.5 ton to 7.5 ton Axle Type: 2- axle Permitted Freight weight: Up to 2 ton

Gross Vehicle Weight: 7.6 ton to 12 ton Axle Type: 2- axle Permitted Freight weight: 1-5 ton

Types of Trucks in INDIA

Medium Commercial Vehicle (MCV) Multi- Axle Trucks (MAT)

Gross Vehicle Weight: 25 ton Axle Type: 2- axle Permitted Freight weight: 6-16 ton

Gross Vehicle Weight: 26 ton to 49 ton Axle Type: 3 or more axle Permitted Freight weight: 16-42 ton

Why world s largest truck maker Daimler thought of opening its plant in India??

Some Eye-Openers
Between 2005-06 and 2009-10, sales of trucks in India jumped nearly 17% These commercial vehicles have become the lifeline of Indian economy, catering 65% of the country s freight India is taking to multi-axle trucks at an unprecedented rate sales jumped 55% between 2009 and 2010 Lighter vehicle posted a growth rate of around 26%

Tracking the Truck Growth

3.5 ton to 7.5 ton
Production*
6,89,451
2010

7.5 ton to 16 ton

Production*
5,88,077
2010

Sales*

Sales*
1,16,808
2010

1,26,960
2010

1,00,349 5,21,240
2010

4,66,307 2009

2009

92,284
2009

16 ton to 25 ton
Production*
88,503
2010

25 ton to 49 ton
Production*
85,389
2010

Sales*

Sales*
2010

10,632

28,992
2010

5,694 79,785
2009

18,673
2009 Source: SIAM

76,556 2009

2009

*Figure are the total for all manufactures in the country

Role Reversal
The market share of MATs versus two-axle HCVs has reversed in the past decade.

Tonnage
2 axled HCV 3 axled HCV

2000-2001
93% 7%

2010-2011
31.5% 68.5%

What they are coming up with??

 Daimler has initiated the process of making its plant in Oragadam, 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.

Plant Details
Plant Name SOP Production Planning PLM Capacity Phase - 1 Shops Vendor Park Outsource Parts/ Components Models Model Variants Colors Employees Daimler India Commercial Vehicle Pvt. Ltd., Chennai 02-May-2012 APO for Scheduling and Sequencing Production Order Process Designer 72000/annum 36000/annum (HDT 24000, LDT - 12000) Body, Paint, Trim, Chassis, Powertrain Available Yes HDT and LDT (7T to 49T) Day Cab and Sleeper 8 types 3000

Challenges faced by Daimler prior to this project..

Are we drowning in paperwork??

Are we depending on too many systems and people to produce ONE report??

Do we need to train our people on several Systems to do their job??

Do we know the root causes of the wastes in real time??

Are regulations becoming tighter and complicated day by day??

How can we make the people have the right information so they can do their job??

How can we all be on the same page??

And many more questions

So following operation s strategy was adapted by Daimler

Vision: Paperless operation

MES Phase 1
Material and production tracking Material Handling and Production procedure Quality Management Production Dispatching Data Collection and reporting

MES Phase 2

Complete paperless operation Integrating biometrics solution with the quality management system Multi Plant architecture

Final Goal

To be benchmark commercial vehicle globally

Operation s
Main four shop s in the plant
Body shop Paint Shop Assembly shop Power train

Body shop area

Main Line Assembly Sub Assembly
Door Assembly Front Assembly Rear Assembly Flore Assembly

Logistics Area Metal Finish Line Small Assembly Area

Order Execution at Body Shop

SAP generates order Stored in MES (dependency on SAP is limited) To different shop order controller as per sequence

Unique feature at sub assembly

Challenges
Different lead time of sub assembly s Correct part is to be married with correct body

Pre fabricated reusable barcode

THANK YOU