newproductdevelopmentlifecycleofnano-13152543248625-phpapp01-110905152908-phpapp01

8/22/2019 newproductdevelopmentlifecycleofnano-13152543248625-phpapp01-110905152908-phpapp01

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NEW PRODUCT DEVELOPMENT

LIFE CYCLEOF

TATA NANO-Mr. Sandip Kadam

MMS Operations(87)

R.I.M.S.R


2/25

What is the Product?DIMENSIONS

Overall Length:3099 mm

Overall Width: 1495 mm (& 1620

mm with ORVM)

Overall Height: 1652 mm

Wheelbase: 2230 mm Ground clearance :180 mm

Min. Turning Circle Radius: 4 m

Seating Capacity: 4 persons

Fuel Tank Capacity: 15 Liters

Kerb Weight

Nano 600 kg

Nano CX 615 kg

Nano LX 635 kg

Payload 300 kg

ENGINE & TRANSMISSION Engine Type: 624 cc, 2 cylinder,

MPFI

Maximum Engine Output: 35 PS

@ 5250 rpm

Maximum Torque 48 NM @3000 +/-500 rpm

Maximum Speed: 105 kmph

Gradeability 30%

Transmission: Synchromesh on all

forward gears, sliding mesh on

reverse gear with overdrive on

4th gear

No. of Gears: 4 Forward + 1

Reverse


3/25

What is the Product?

SUSPENSION

Front: Independent, Lower Wishbone,McPherson Strut with gas filleddampers

Rear: Independent, Semi Trailing armwith coil spring & gas filled shockabsorbers

WHEELS & TYRES

Tyre Type: Radial & Tubeless

Front Tyre size: 135/70 R12

Rear Tyre size: 155/65 R12

Spare Tyre size: 135/70 R12

Wheels : 4 B x 12

BRAKES

Brake Type: Dual Circuit, Vertical

Split operated by tandem master

cylinder

Nano CX With VacuumBooster

Nano LX With Vacuum

Booster

Front: 180 mm dia. drumbrake

Rear: 180 mm dia. drum brake


4/25

Idea Generation

At Affordable Price


5/25

TATA NANO I observed families riding on two-wheelersthe father driving the

scooter, his young kid standing in front of him, his wife seated

behind him holding a little baby . This could be very dangerous in

night travel or in stormy weather. [Problem]

It led me to wonder whether one could conceive of a safe,

affordable, all-weather form of transport for such a family[Dream]

Tata Motors engineers and designers gave their all for about four

years to realize this goal. Today, we indeed have a Peoples Car,

which is affordable and yet built to meet safety requirements and

emission norms, to be fuel efficient and low on emissions

[Criteria]

We are happy to present the Peoples Car to India and we hope it

brings the joy, pride and utility of owning a car to many families

who need personal mobility.[Success]


6/25

Idea Generation

To create safe, affordable, all weather form of

transport for a family

To create an option for people who want to

move from 2 wheeler to 4 wheeler in

affordable price (As little as 2 Wheelers)


7/25

Idea Screening

A scooter with 2 extra wheels at the back forextra stability?

An Auto-Rikshaw with 4 wheels?

4 Wheeler car made of Engineering Plastics?

4 wheeled rural car?

But Market Wanted a Car and It should be like a

CarNot something that people will say, Ah! Thats

just a Scooter with 4 wheels and not really a car!


8/25

Concept testing And Developing

Mr. Girish Wagh talked with customers

3 Wheeler men inevitably insisted on cheap anddependable truck

But he still kept asking Why do u want a 4wheeler?

Finally he got the answer, If I had a 4 wheeler, Iwould have better marriage prospects in myvillage.

4 wheels have emotional appeal, not justpractical


9/25

So What Type of New Product To Be

Developed? Car to cost Rs. 1 lakh on road

Car to be built on different platform than conventionalones

It must meet all the safety and regulatory requirements

It has to be built on a scale which is double than the

earlier launches

A Truly Peoples car: Low cost, Safe, Fuel Efficient


10/25

Business Analysis

Cost: What makes the Nano so cheap?


11/25

Important Decisions

Establish a factory in a tax free zone

Get the tax advantage on infrastructure

development

Get the suppliers to establish base near the

factory

Get special concessions from state govt.

In short select a Manufacturing location

where all the advantages could be achieved


12/25

DEAL OF TATA NANO (@Gujarat)

A loan of Rs. 9750 Crore at 0.1% simple rate ofinterest

Repayment of this loan @ 0.1% over 20years.

They got 100% exemption on electricity duty The 1100 Crores Land has been given with high

subsidies without any stamp duty registration andtransfer charges

The payment for land would be made in eightequal annual instalment at a compound interestof 8% p.a.


13/25

Total Sales Estimation

Demand for peoples car shall be at least twice

that of demand for Maruti 800

Initial projections were 500000 cars per year

Assumption: 10% of 9 million 2 wheelermarket transit to 4 wheelers and that will

explode the demand


14/25

Product Design & Development

Design Inputs from Institute ofDevelopment in AutomotiveEngineering, Italy

Constant Design changes

Design adaptations from Daewoo Matizand Tata Indica

37 patents associated with the design ofNano

Modular Design Revolution: The Nano is

constructed of components that can bebuilt and shipped separately to beassembled in a variety of locations


15/25

Continued

Gandhian Engineering Approach i.e. More from

less for more and more people

Much spacious than Maruti 800 (20 % more)

Use of Aluminum Engine to reduce weight andcost

Use of light weight steel wherever possible


16/25

Prototype Development First Prototype: Vehicle which had bars instead of doors and

plastic flaps to keep out the monsoon rains. It was closer to a

Quadricycle than a car, and the first prototype

Engine Issue: 540 CC engine when fitted on the prototype,

lacked the necessary power. So its capacity was increased by

9%, then by another 9%, finally settled to a 623 CC engine

Foot pedal had to be realigned to create more legroom

The body had to be changed because Ratan Tata, over six feet

tall himself, wanted it to be easy for tall people to get in and

out of the car

"Imagine the pain of the body designer -- he went through

hundreds of iterations, then at the last minute the car length

was increased by 100 millimeters!"


17/25

Testing

Crash testing


18/25

Testing On Torture Tracks


19/25

Testing On Torture Tracks


20/25


21/25

Production Manufacturing facility located

at Sanand, Gujarat 725 acres (for TATA) + 375 acres

vendors park

At the vendors park 41 vendors

allocated plots About 80% of the value of

components to be sourcedfrom the park

Began with a capacity of 2.5lakhs cars/annum

(Expandable up to 3.5 lakhscars/annum)


22/25

Continued

Resource estimation

Engineering operations planning

Department scheduling Supplier collaboration

Logistics plan

Program review and monitoring Contingencies


23/25

Commercialization

Launch the product

Produce and place advertisements and otherpromotions

Fill the distribution pipeline with product


24/25

Marketing of Tata Nano


25/25

The TATA NANO innovation was notjust in technology ;It was in mindset

change.

Thank you

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