Engineering Strategy Assignment 1

NPI STRATEGY AND ITS BUSINESS PERFORMANCE Introduction:

Companies as to focus on develop new products to meet the global market for their  survival. Due to rapid change in environment new innovative designs has to be implemented to achieve the competition between the competitors in the global market. It is mainly depends upon the capacity of the organisation to built the new product. Strategy:

It helps to increase the customer values and creat e a comparable rate at a lower cost, or both. ³Strategy refers to the action/method/trick/technique/direction one would adopt in achieving a certain objective´ (Gaebler.com). Business Performance Management:

BPM system means as a ³set of metrics used to quantify both the efficiency and 1995). effectiveness of actions´ (Neely et al., 1995) Introduction ) is primarily connected connected by following strategies, NPI (New Product Introduction)

The Levels of Strategy

Engineering Strategy  Assignment One

Background

R eva the first electric made in India car with the collaboration between Maini group the AEV LLC of USA, the company was acquired by the Indian based auto giant Mahindra. R eva is the pioneer for the India automobile industry with the electric based platform. In that electric vehicle they have gone a level up with two newly designed models NX R and NXG.

REVive Technology

Among those two models they have implemented a n advanced technology called R EVive which is exclusively available in R eva NXR . It also has a special feature which helps to use the reserve energy by remotely a nd there will be no damage to the battery. This will help the driver to access the nearby recharge station or the home to recharge the car. For this feature we can easily contact R eva through customer care telephone or sms.

JV between GM and Reva

In the year 2009 R eva and GM have come to a conclusion to share the electric vehicle technology for the gm¶s car platform. This is one of the greatest achievements for both the companies. This will refine the car platfor m and the advanced control system. A nd this will  be specifically for an Indian market. This agreement was announced by Karl Slym, president and managing director, General Motors India and Chetan Maini, deputy chairman and chief technology officer, REVA ( media.gm.com). Customer will have an opportunity to get options on electric platform based vehicle to own, and also an environmental friendly option for the individual t o drive. But after the Bangalore based company have been under taken by Mahindra, the JV betwee n GM and the R eva joint venture is on the hold.

Engineering Strategy  Assignment One

On the whole Maini have made a revolution in car industry with the new concept called electric vehicle. The car which first ever changes the mentality of the auto giants to make an electric vehicle is R eva. This is the pioneer for the electric vehicle in India and in many countries. In this period the all the countries where showing more interest in introducing the new emission norms to control the global warming. The auto giants prefer  that making electric vehicle is the one of the good option to avoid the Co2 emission more in numbers. For example auto giants new EVs are Tata Indica EV, Hyundai i10 EV, and GM Spark EV. Market potential:

Electric vehicle has a high potential in the global market. There is overall demand throughout the world for the EVs because of the lower cost and emission free. The support from the governments and communities is one of the additional benefits for the EVs. R EVA has already received incredible response in a variety of markets. For testing and demonstration, R eva have been exported to many countries to create a revolutionary impact in the global market. Manufacturing scope for the EV is wider. The expected sales by the year 2020 are 1 million cars. Sales can also be double when the government participate in the programme activity. Corporate Strategy of the Organisation:

 Now the organisation is planning to enter China. Mahindra and Mahindra have set high expectations of cashing in by this car, because in China the demands is growing because of the global warming government has forced the user with strict norms for emission. The main intend is to reduce CO2 in the environment. Pawan Goenka, chairman of Mahindra Reva Electric stated that ³China is one of the largest auto markets and given the huge demand for eco-friendly vehicles it could generate in future; we would like to take our new cars into that market´ (automobileindia.com).

Bangalore Company (Mahindra and Mahindra) is looking forward to implement the mass marketing in china due to high population. This also led them in financial assistance  programme. Electric charging network is biggest challenges for the organisation. China government has a plan to introduce network across many cities to increase the growth of EVs. ³The recent change in technologies would help us to cater to the wider need of global markets,´ stated Chetan Maini, chief of technology, Mahindra Reva (automobileindia.com). Due to poor charging networks the sale of  R eva is only 3500 cars in 24 countries. The research and development department had five major tasks at hand. They were R esearch and collect info regarding quality and customer feedback. Data basing of various opinions of staff from all the departments. Study the various aspects involving time and motion in manufacturing and assembly line and customer service. Introducing Quality circles within the organisation. y y y

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Engineering Strategy  Assignment One

Battery Technology:

Since R eva, is an automobile manufacturer concentrating on the electr ical variety, their  main focus of research was on the batteries used. Their research included simulated every other battery which can be utilized (e.g. lithium ion, nickel metal hydride and so on ). Their  main focus was on lithium batteries because of their numbers on energy density. R & D department also suggested the importance of batteries lif e and wanted them to be higher. Only Lithium ion batteries are said t o achieve the above expected conditions without causing any external changes. And it is also said that this type of battery is viable because the already launched R eva model can be upgraded to this battery if needed by the customer. Other   positive aspects of this battery are Energy is increased to 10 KW/hr. Driving range increased from 80 Kms to 120 Kms.  Newer designed iEMS and ventilation system to enhance driving in cold weather  conditions. Standard charge time reduced from 8hrs to 6hrs. Specially designed charging port to optimise charging i.e. to c harge 90 percent in under an hour. y y y

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Market / User Feedback:

They adopted a logical method to gather comment from the existing user on the bases of  the next level of cars by means of. Informal chats with users Focus groups. R egular meeting with distributors and end-users. Providing space to express their experiences in discussion forums. Focuses are made to the exact crowd to take the analysis. With help of the above analyses they create a file requirement manuscript with respect to the demand in market are. More space needed for passenger cabin.  Need of higher power and speed capacity.  Need of quick charge of battery. Stability in all weather condition. Increase user friendly interface. y y y y y

y y y y y

Conclusions The broad put into effect with implementing the design electric car for global markets Increased variety ± respect to the customer need. Established Li-Ion Battery technology ± with reference t o safety for the customers. Increased life cycle of the battery. Improved all climate performance. Fast charging capability ± 1 hour. Improved power and acceleration. y y y y y y

Engineering Strategy  Assignment One

Reference:

1. Anderson.R ., (2010), ³Engineering Strategy´ Module Note. Coventry University 2. Development and production start-up of an urban electric vehicle for India, Paper  th

resented at EVS-16, 16 Int. Electric Vehicle Symp., Beijing, China, Oct. 1999. 3. Maini.C, Challenges faced to develop small electric passenger car in India, SIAT 2003, AR AI, Pune, India, 15 ±18 January 2003. 4. Maini.C and Schweizer.P, (2000) Benefits of energy management system and advanced diagnostics system of the R EVA. 5. Maini.C, (2001), Why electric vehicles like R EVA make perfect sense for developing countries, EVS 18, Berlin, Ger many, October 2001. 6. Maini.C, R EVA heralds a new era in successful commercialization of EVs, EVS 19, Busan, Korea, October 19±23 2002. 7. Maini.C, Electric vehicles±a great alternative for India, Automonitor, January 2003. 8.  Neely, A.D., Gregory, M.J. and Platts, K. (1995 ), ³Performance Measurement System Design. 9. Sajith et al, R eva electric Car Company: O ptimisation of an electric drive train for µon road¶ electric vehicles; SIAT 2009, India 10. Technology Development Board, Government of India, National Award for  successful commercialization of indigenous technology (2003 ). 11. Vikarna R ao et al, R eva Electric Car company: Development a nd testing of a Lithium Ion Battery pack for electric cars : SIAT 2009 India 12. http://www.automobileindia.com/news/mahindra-mahindra-planning-to-take-reva-tochina.html 13. http://media.gm.com/content/media/in/en/news/news_detail.brand_gm.html/content/P ages/news/in/en/2009/0924_ElectricVehicles 14. http://navcom.co.in/index.php?option=com_k2&view=item&id=126:reva-nxr--nxgunveiled-at-frankfurt-pricing&Itemid=65 15. http://www.revaindia.com/about_reva.html 16. http://www.gaebler.com/What-is-Meant-By-Strategy.htm

Engineering Strategy  Assignment One