NEW PRODUCT DEVELOPMENT LIFE CYCLEOF TATA NANO-Mr. Sandip KadamMMS Operations(87)R.I.M.S.R 2. 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 kgENGINE & 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. What is the Product?SUSPENSION Front: Independent, Lower Wishbone, McPherson Strut with gas filled dampers Rear: Independent, Semi Trailing arm with coil spring & gas filled shock absorbers 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 Nano CX With Vacuum Booster Nano LX With

master cylinder

Vacuum Booster Front: 180 mm dia. drum brake Rear: 180 mm dia. drum brake Idea Generation At Affordable Price NANO I observed families riding on two-wheelers the 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] Idea GenerationTo create safe, affordable, all weather form of transport for a familyTo create an option for people who want to move from 2 wheeler to 4 wheeler in affordable price (As little as 2 Wheelers) Idea ScreeningA scooter with 2 extra wheels at the back for extra 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! Concept testing And DevelopingMr. GirishWagh talked with customers3 Wheeler men inevitably insisted on cheap and dependable truckBut he still kept asking Why do u want a 4 wheeler?Finally he got the answer, If I had a 4 wheeler, I would have better marriage prospects in my village.4 wheels have emotional appeal, not just practical So What Type of New Product To Be Developed? Car to cost Rs. 1 lakh on roadCar to be built on different platform than conventional onesIt must meet all the safety and regulatory requirementsIt has to be built on a scale which is double than the earlier launchesA Truly Peoples car: Low cost, Safe, Fuel Efficient , Business AnalysisCost: What makes the Nano so cheap? Important Decisions Establish a factory in a tax free zoneGet the tax advantage on infrastructure developmentGet the suppliers to establish base near the factoryGet special concessions from state govt.In short select a Manufacturing location where all the advantages could be achieved DEAL OF TATA NANO (@Gujarat) A loan of Rs. 9750 Crore at 0.1% simple rate of interestRepayment of this loan @ 0.1% over 20years.They got 100% exemption on electricity dutyThe 1100CroresLand has been given with high subsidies without any stamp duty registration and

transfer chargesThe payment for land would be made in eight equal annual instalment at a compound interest of 8% p.a. Total Sales EstimationDemand for peoples car shall be at least twice that of demand for Maruti 800Initial projections were 500000 cars per yearAssumption: 10% of 9 million 2 wheeler market transit to 4 wheelers and that will explode the demand Product Design & DevelopmentDesign Inputs from Institute of Development in Automotive Engineering, ItalyConstant Design changesDesign adaptations from Daewoo Matiz and Tata Indica37 patents associated with the design of NanoModular Design Revolution: The Nano is constructed of components that can be built and shipped separately to be assembled in a variety of locations Gandhian Engineering Approach i.e. More from less for more and more peopleMuch spacious than Maruti 800 (20 % more)Use of Aluminum Engine to reduce weight and costUse of light weight steel wherever possible Prototype DevelopmentFirst 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 prototypeEngine 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 engineFoot pedal had to be realigned to create more legroomThe 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!" TestingCrash testing , Testing On Torture Tracks ,Testing On Torture Tracks ProductionManufacturing facility located at Sanand, Gujarat725 acres (for TATA) + 375 acres vendors parkAt the vendors park 41 vendors allocated plotsAbout 80% of the value of components to be sourced from the

parkBegan with a capacity of 2.5 lakhscars/annum (Expandable up to 3.5 lakhs cars/annum) Resource estimationEngineering operations planningDepartment schedulingSupplier collaborationLogistics planProgram review and monitoringContingencies CommercializationLaunch the productProduce and place advertisements and other promotionsFill the distribution pipeline with product Marketing of Tata Nano The TATA NANO innovation was not just in technology ;It was in mindset change.