“Support and guidence should never go without thanks.”
These are the words most famous among PGDM students and they call it as formality but it’s only my experience with my superiors and colleagues during project time, which has made me, understand its true meaning. I present sincere obligation to my institute, MARWADI EDUCATION FOUNDATION GROUP of INSTITUTIONS, Rajkot for providing continuous supports and facilities to complete this research report. I am indeed grateful to Prof. Rutwa Mehta and Prof. Hemali Tanna my mentor and my project guide for providing the guidance, advice, constructive suggestions and faith in our ability inspired to perform well who gave me a valuable opportunity of involving myself in studying this project. I would also like to thank every individual who have been directly or indirectly helpful for the successful completion of this project.
(Signature of students)
Popatputra Ahad A.
The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. Some 70 years ago, car assembly was primarily manual work. Today, the process of car assembly is almost fully automated. In the old days, firms attached importance to the production of virtually every part in a single plant, while today, carmakers concentrate on only a few specific production stages. Parts and module production, services and related activities have been shifted to other, specialised firms. Since the 1980s, it has become clear that further productivity gains to retain competitiveness can be possible only by outsourcing and securing greater flexibility. For example, firms, especially small car producers whose markets have been threatened by imports, have diversified their production programmes, thereby introducing greater flexibility in the production process. Also, firms and their production have become more internationalized in lieu of outsourcing.
The global passenger car industry has been facing the problem of excess capacity for quite some time now. For the year 2002, the global capacity in the automotive industry was 75 million units a year, against production of only 56 million units (excess capacity estimated at 25%). Efforts to shore up capacity utilization have prompted severe price competition, thus affecting margins and forcing fundamental changes in the industry. The pressure on sales and margins is driving players to emerging markets in pursuit of better growth opportunities and/or access to low-cost manufacturing bases.
• The concept of selling in the passenger car industry is changing from original sales towards lifecycle value generation, encompassing financing, repairs & maintenance, cleaning, provision of accessories, and so on.
• Vehicle manufacturers are moving into completely new materials and technologies—partly guided by environmental legislation—in striving to come up with radically different products. Some of these new technologies involve parts that can be bolted on to an existing vehicle with relatively few implications for the rest of the vehicle. Others are much more fundamental, and are likely to have a profound impact throughout the supply chain. The examples include battery, electric or hybrid power trains, and alternatives to the all-steel body. Carmakers are increasingly outsourcing component production, and focusing on product design, brand management and consumer care, in contrast to the traditional emphasis on manufacturing and engineering.
• The increasing need to attain global scales underscores the importance of platform sharing...