The Hindu Business Line : Nano suppliers learn lessons for global portfolio

Even as the Tata’s Rs 1-lakh car flummoxes onlookers and competition alike about how that seemingly impossible price target was met, the real story of cost control for the Nano started amongst the suppliers to the project.

And these companies not only met the challenge of cutting costs for the Nano’s components, but they have also, in the process, learnt lessons in development and manufacturing that they will apply to their global portfolio of products.

Delphi is one of the suppliers to the Tata Nano project and it has developed the low-cost, centrally mounted instrument cluster that the mini-car features.

Delphi officials feel there is a learning to take away from the Nano project for its global product development process, in terms of innovative thinking for cutting costs, for meeting timelines and eliminating wastages.

Delphi experience

Speaking about the company’s experience with cost control for the Rs 1-lakh car, Mr Ashok B. Ramaswamy, President and Managing Director, Delphi India, said that there was a considerable amount of lateral thinking that the Indian development team had to do to come up with ideas for crashing the cost structure.

So, the instrument cluster was kept basic with just a speedometer, odometer and turn indicator signals being featured. The other ways by which Delphi cut costs for the component supplied was by eliminating screws and replacing them simply with panels and parts that just snap on firmly.

Also the clear plastic panel that covers the display was curved at an angle to eliminate reflections and glare, a simple solution compared to the usual anti-glare coatings and so on.

Mr Ramaswamy felt that Tata Motors choose Delphi’s solution because of its expertise in systems integration capabilities.

He also mentioned that while the company’s US-based product development teams are used to working on feature-rich, content-rich products, the Indian product teams are more focused on cutting costs.

This was a big reason why, though the Indian team is also used to developing global products, it was also able to think innovatively to develop low-cost technology solutions such as the Nano instruments and the engine management systems for fuel-injected two-wheeler engines.

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