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V.
Sumantran*
The acceleration of product development
has been recognised as a key initiative across industry segments.
The phenomenon has been well documented through a range of sectors,
particularly those engaged in consumer products. For the auto
industry, the challenge comes at a time when many regulations
have been tightened. This has only served to increase the magnitude
of the task confronting the industry as it seeks transform itself.
There is no doubt that, as an industry, the auto sector has
risen to this challenge. However, the degree of success that
any organisation achieves in this transformation seems to define
its viability for the future.
Market perspective
One may start with the hypothesis that the communication of
information and ideas is now faster than ever before. As a
result, personal opinion, tastes and values seem more vulnerable
to rapid change than at any other time in history. The toy
industry faces this situation every year. The most popular
toys this Christmas are very likely passé by the next season.
Products are less capable of holding the attention of the
consumer for any length of time and the novelty factor seems
to play a larger role in product choice and selection.
Reacting to this trend,
auto makers are increasingly seeking to find that elusive
combination of attributes that will create the next success
story. Arguably, the times have never been better for a consumer.
The prospective buyer today can choose from an array of products
whose diversity has seldom been matched in the century that
automobiles have been in existence. Where one saw distinct
vehicle configurations 30 years ago (sedans, station wagons,
vans and pickups), today the product landscape is smeared
with all sorts of combinations (hybrids combining the virtues
of several categories, for example, crossovers, derived from
sports utility vehicles, station wagons and vans).
At the same time, the
search for novelty offers a limited window of opportunity
and, therefore, product lifecycles are reducing rapidly. To
auto makers the new environment demands faster replacement
of products, the need to have a wider range of product offerings,
and increased technology and features / content that address
not only consumer expectations but also regulations in various
parts of the world. These multiple goals impose a huge burden
in the form of increased development cost and investment.
At the same time, with market prices being under severe pressure,
these costs may not be passed on to the market. Therefore,
auto makers have been compelled to significantly reduce their
cost of product development and, at the same time, find very
efficient uses of investment to keep capital needs in check.
These efforts have resulted
in a lot of credible progress in the past decade with reference
to reducing the time taken for vehicle development. At the
start of the 1990s, auto makers required 30 to 45 months to
execute a full development cycle, depending on the complexity
of the product. Today, it is not uncommon for the cycle to
be completed in 18 to 24 months.
This speedup in product
development has affected auto makers positively, offering
them some badly needed benefits. Investments in a vehicle
programme start generating returns sooner. For a programme
shortened from 45 months to 24 months, this means that amortisation
of capital starts almost 21 months sooner. Besides, the constrained
capacity, human resources, development resources, etc are
now better able to cope with the increased number of vehicle
programmes. Third, the focus on making these processes efficient
has had the benefit of increasing process focus in all organisations.
Platforms and
their value
Fundamentally, what one chooses as the starting point of a
programme defines, to a great degree, how much work needs
to be done to execute that programme. Most auto makers have
a range of products and systems. When the new programme carries
over many of these systems, a significant amount of workload
and cost is reduced from the new programme.
When one considers that
the average vehicle uses over 10,000 parts and 300 systems,
each requiring design, development, validation and manufacture,
it seems obvious that the more one uses of what already exists,
the sooner one can complete the new vehicle and the less it
will cost. In most cases, the constraint to carry over arises
from new regulations, standards and consumer expectations.
However, it may be argued that any process that maximises
the use of carry over, while meeting all the new demands and
appeal, contributes to overall cost efficiency.
Clearly, the most effective
solutions call for directly taking over some of the existent
systems or sub-systems in the new vehicle. In many cases,
regulations do not change often, and, when these systems are
not directly 'seen' by the user, carry over makes a lot of
sense.
In some cases, it may
not be feasible to carry over the specific component itself.
However, in these cases, if the design philosophy or the manufacturing
philosophy is carried over intact it contributes significantly
to minimising risk in the process. Many organisations have
well-developed philosophies for the design and manufacture
of door systems or engine-mount systems. Even when a specific
carry over is not practical, the carry over of the design
and manufacturing philosophy still generates a number of benefits.
Platform concepts
This scenario has led the auto industry to exploit the concept
of platform engineering. The concept is best understood when
referring to the example from Volkswagen. Today the Volkswagen
‘Golf’ platform [see Exhibit 1] is widely recognised as one
of the most versatile platforms, giving rise to a range of
over 14 distinct models used by four separate brands within
the Volkswagen group, namely Audi, Seat, Skoda and VW.
What is fundamental to
the concept of platform engineering is that these 14 models
share many common components under this skin. These components
include big investment components such as floor pan, firewall,
power-trains, power-train mounts and suspension.
And, yet, sharing these
critical and expensive components, one is still able to create
a distinct and diverse range of products that give rise to
everything from a small open roadster (Audi TTS) to high-performance
coupes to sedans, station wagons, hatchbacks and multi-purpose
vehicles. With well-controlled investments, this has allowed
Volkswagen to reach a very large marketplace in terms of segments
and brands. As a result, this platform is produced in excess
of 1.7 million units annually.
Tata Engineering
uses the same concept [see Exhibit 2]. The robust 207 platform
serves as the basis for a number of vehicles like the Tatamobile,
the Sierra, the Estate, the Sumo, the Safari and the 207 DI.
The car platform will
now see greater diversity. This is already happening with
the Indigo joining the Indica from the same manufacturing
system. For this platform (X1), care has been taken to ensure
sufficient differentiation between the Indigo and the Indica
[see Exhibit 3].
The Indigo uses the exclusive
sophisticated three-link independent rear suspension to provide
better ride and handling characteristics, a longer wheelbase
(by 50 mm) over the Indica and new rear seats to improve rear
cabin space and comfort.
Even the engines of the
Indigo are different from those of the Indica. The Indigo’s
diesel is turbo-charged and the petrol used has higher power
(85 compared to 75) over the Indica. These changes make the
Indigo a more competent player in the premium ‘C’ segment.
At the same time, because
of the sharing of the platform and the manufacturing systems,
the Indica and the Indigo are produced on the same assembly
line. This step allows Tata Engineering to use its assets
more efficiently and create the Indigo at lower cost than
would have been possible had it been a completely independent
vehicle. Doubtless, further platform extensions can be anticipated
in the future.
Closure
This philosophy is extremely important for Tata Engineering.
With constraint capital, investment and resources, we have
the ambition to grow products into market segments, market
regions and build the basis of our future competitiveness
in the auto industry.
E Pluribus Unum
is the motto of the US. It means that out of many (people),
is created ‘one’. For our purposes, this platform concept
can be reversed to read E Unum Pluribus or "out of one,
many!"
* Dr Sumantran is the
executive director (passenger car business unit) of Tata Engineering.
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