Mahindra Live Project: Pre-Process Strategic Business Plan for Customer Specific Vehicles Team Name : AutoBots Palarapu Pavan Kumar Roll No. 2016PGP252 Mobile No.+91-9981992640 T Hemanth Raj Roll No. 2016PGP409 Mobile No.+91-9494706678 B V S Pavan Kumar Roll No. 2016PGP090 Mobile No.+91-9701083149 Maximum two slides containing an Executive Summary with the following details: Competitive bench-marking (on the lines of first bullet point from the project description) and an approach note.
Competitive Benchmarking Adopting the practices of Dell in Automotive Industry, various manufacturers have introduced customization of vehicles for customers by predominantly using online platforms for ordering. In Customized Automotive Segment, current major players are BMW, Tesla, Ford, Renault, Toyota, General Motors, Volkswagen, Volvo, Nissan and Chrysler. Ford’s way of managing Customization: Vital part suppliers’ facilities are established near Ford’s manufacturing plants to enable Just-In-Time. It has reduced number of suppliers and chose those suppliers who has many relevant sub-suppliers who can cater to Ford’s requirements providing integrated modules Above steps enabled Ford to reduce its costs through logistics by $15million. BMW’s way of managing Customization: Implementation of online toolkit interface to enable customer to effectively customize as per his needs. Minimized distribution costs by directly delivering the customized vehicles to customers They have adopted 300 work time patterns that enable optimal deployment of BMW's skilled workers. BMW has best order to delivery timeline with 10days and the same is 14days for Toyota, Volkswagen & Volvo, 15 days for Chrysler & Ford, 20 days for General Motors & Renault.
Challenges faced by Competitors & Approach Challenges of competitors after shifting to Automotive mass customization: High dependency on suppliers and also on dealers as they are main distribution channels Customers rely on dealers for decisions on various available options, making online platform less reliable In operational context, there is significant increase in setup costs and also in number of expediting orders Work Force adaptability – especially in terms of skills is vital for rapidly growing range of product Approach Methodology: Current Scenario Analysis: Market potential for Mass Customization of vehicles, competitors way of managing challenges, compatibility of present distribution network and Supplier Integration with mass customization. Problem Analysis: Analysis includes challenges involved in Inventory Management processes, marketplace, cost-risk analysis, analysis of adaptability of customer through primary research, logistics, workers’ skill management, pricing strategy, Feasible Solutions: Includes Feasible and effective solutions addressing the above problems and considering all aspects of a business, Implementation and Action Plan. Maximum two slides containing an Executive Summary with the following details: Competitive bench-marking (on the lines of first bullet point from the project description) and an approach note. How are the customized variants managed in India and worldwide for large scale production models?