of 23

Emerging Countries and Manufacturing IT Solutions Will Shape the Automotive Industry Landscape

Published on 1 weeks ago | Categories: Documents | Downloads: 3 | Comments: 0
83 views

Comments

Content

Emerging Countries and Manufacturing IT Solutions Shape the Automotive Industry Landscape Ninth ARC India Forum, Pune August, 2011 Rajabahadur V Arcot Kishore M Karandikar Vice President & GM ARC Advisory Group [email protected] 1 © ARC Advisory Group

Agenda  Automotive Industry Status in Emerging Countries

including India • Global Automotive Industry Landscape • Global Automobile Sales Outlook India & Automotive • India & Automotive Industry - Trends  Manufacturing Industry Continues to Evolve • Invention Based & Basic-needs driven Manufacturing (Europe & NA) • Convergence of Information and Communication Technologies (Japan & Asian Tigers) • IT Enabled Manufacturing – IT Everywhere • Manufacturing Evolution

 Emerging Countries and Automotive Industry • LEAP Manufacturing 2 © ARC Advisory Group

Automotive Industry Status in Emerging Countries including India

3 © ARC Advisory Group

GLOBAL AUTOMOTIVE INDUSTRY Landscape

Source: Global Auto Report, Published by Scotia Bank Group

4 © ARC Advisory Group

Global Automobile Sales Outlook 45 ASIA 38.74

40

MILLIONS OF UNITS

35

REST OF THE WORLD 37.26

37.05 32.82

32.29

36.38

34.33

35.35 35.30

33.75

30.67

30

26.60

25

23.08

22.47

20

17.68

15.07 15 10.45 10

6.91

5 0 1990-99 2000-07

2008

2009

2010

2011

2012

2013

2014

Based on Global Auto Report, Scotia Bank Group 5 © ARC Advisory Group

India & Automotive Industry – Present Landscape Globally Fifth Largest Bus and Truck Market by Volume

Globally Second-largest Two-Wheeler Market

Asia’s thirdlargest Private Vehicle market

Emerging as Center of Excellence for Compact Cars

Globally Fourth Largest Commercial Vehicle Market

6 © ARC Advisory Group

India & Automotive Industry - Trend

 Expected to contribute 10 percent of India’s

GDP in the next 5-6 years  Emerging as an exporter of automobiles and auto components 7 © ARC Advisory Group

Automobile Production Trend 20,000,000

CAGR 13.3%

18,000,000

17,916,035

16,000,000

14,057,064 14,000,000 12,000,000

11,087,997

10,853,930

2006-07

2007-08

11,172,275

9,743,503

10,000,000

8,467,853 8,000,000 6,000,000 4,000,000 2,000,000 0 2004-05

2005-06

2008-09

2009-10

2010-11

8 © ARC Advisory Group

Automobile Export Trend CAGR 24.5%

2,500,000

2,339,333

2,000,000

1,804,426 1,530,594 1,500,000

1,238,333 1,011,529 1,000,000

806,222 629,544 500,000

0 2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

9 © ARC Advisory Group

Automotive Hubs in India

10 © ARC Advisory Group

Other Leading OEMs

11 © ARC Advisory Group

Manufacturing Industry

Continues to Evolve  Invention Based & Basic-needs driven Manufacturing (Europe & NA)  Higher-order wants driven Manufacturing and Manufacturing Deconstruction (Japan, Asian Tigers)

 Factory of the Future / Smart Manufacturing - IT Enabled (Emerging Economies can leapfrog Manufacturing) 12 © ARC Advisory Group

Invention Based & Basic-needs driven Manufacturing (Europe & NA) Focus: Produce, Meet Basic needs First Steam Engine

Public Railway Transcontinental Railway

1809

1769

Airplane

1869

Electric Four Stoke Telegraph Engine

1904

1885-86

1870

1862

1825

Electric Bulb

1879

Telephone

1903

Automobile Triode

 Invention based manufacturing  Basic-needs driven invention – mobility, communication  Started in Europe and NA 13 © ARC Advisory Group

Convergence of Information and Communication Technologies (Japan & Asian Tigers) Invention NA & Europe Production Asia Radio Broadcasting Corporation of America 1919

Television

Computer

1927

Vacuum Tubes / Triodes 1904

1946

Transistors 1947

Integrated Chips 1961

 Higher-order wants driven application inventions – entertainment, computing, analysis

 Expanding applications – Convergence of Information & Telecommunication Technologies  Manufacturing deconstruction  Emergence of Asian Tigers

14 © ARC Advisory Group

IT Enabled Manufacturing – IT Everywhere IT in Maintenance

IT in Operations

MES

PLM

IT in Design FA

ARC’s CMM Model 15 © ARC Advisory Group

Manufacturing Evolution

Information and Intelligence Enabled Smart Manufacturing Achieve Excellence in Design, Production and Maintenance – IT Enabled CMM Continually Improve Innovation & Production

Innovate & Produce

16 © ARC Advisory Group

Benefits of Information and Intelligence Enabled Smart Manufacturing  Become more agile and responsive  Reduce design-engineer-make cycle time  Reduce capital expenditure  Reduce operational expenses  Achieve internal and external collaboration  Achieve excellence in design, operations, and

maintenance  Gain time-to-market advantages

 Emerge as a center of automotive excellence

and innovation  Examples: Instrumentation; Automotive

17 © ARC Advisory Group

The Future of the Automotive Industry

18 © ARC Advisory Group

Emerging Countries and Automotive Industry  Right Chemistry Exists

• Emerging Countries are Experiencing Economic Growth • Demand for Automobiles is Increasing • Automobile & Auto Component Industries are Expanding • Industry Ecosystems are Emerging and Companies are Becoming Global Sized • Technology is Available • Emerging Countries are well positioned to Leapfrog 19 © ARC Advisory Group

Emerging Perspective

Shifting Economic Power

+

Changing Demographics

+

Powerful New IT Capabilities

+

Business Compulsions

= Emerging Countries and Manufacturing IT Solutions will Shape the Automotive Industry Landscape 20 © ARC Advisory Group

LEAP Manufacturing

Technology and Business Practices for World-Class Manufacturing

Leading-edge

Efficient

• Innovative

• Profitable

• Technology-forward

• High Quality

•Mobile, Social, Cloud, Modelbased, Virtual, PLM, MES, etc.

• Collaborative, Integrated • Performance driven

Agile • Responsive •Collaborative, Networked, Pull-based, Interactive

• Flexible, adaptive, changeable

• Compliant • Safe & Effective • Local/Regional

LEAP Mfg

Progressive • Sustainable •Energy, Carbon, Social, Water, Waste, Closed Loop

• Responsible

Companies In Emerging Markets Can Jump To A Market Leadership Role

21 © ARC Advisory Group

Recommendations

 Leapfrog and take the path of LEAP

Manufacturing  Invest in Technology Solutions

22 © ARC Advisory Group

Thank You. For more information, contact the author at [email protected] or visit our web pages at www.arcweb.com

23 © ARC Advisory Group

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close