Strategic Operation Management
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ID
PGEXP/019/2013
Name
Bharat Bhushan
PGEXP/057/2013
PGEXP/063/2013
Prasanta Kumar Pattnaik
Rajesh Dhiman
Case Submission Date: 10-Jan-2015
Post-Graduate Executive Programme in Management
PGEXP (2013-15 Batch)
ITT Automotive – Industry Detail
PRODUCT DETAIL : Anti-Lock Brake system (ABS)
CHILD PARTS: Electric Motor, Hydraulic Fluid Pump, Valve Block, Microprocessor Controller, Wire Harness and Wheel Sensor assemblies. ABS Origin & Design Refinement History :
ABS Technology designed and patented in 1940
First Application for Aircraft and Heavy Truck by 1950
Commercialize ABS for automobile efforts 1950 to 1980
Inexpensive microprocessor Development by Robert Bosch and Alfred Teves
First automobile ABS system introduction by Bosch in 1984 – MK2 (Hydraulic Booster)
Second Generation ABS- MK4 by IIT-Teves in 1990 (with Vacuum Booster) @ Half the price of MK2
MK4-G (Light weight , Hydraulic designed closed circuit) in 1993 @ same price of MK4
MK4-Gi ( System integrated Electronic Controller and Hydraulics, smaller and lighter weight) @ same price of MK4
Demand for Lighter , more compact and low-cost ABS system account Technology advancement and consumers concerned with vehicle safety.
MK20 (Functionality same as of MK4-Gi but smaller, Lighter and Cheaper @ half the price of MK4-Gi) for Year 1995
Challenges for ITT- Teves and Strategy
COST : Required ABS MK20 targeted with half the price of MK4-Gi from customers.
Development time: 2 Years have been provided with development time However it was 8.5 Years for MK2 and 3.5 Years for MK4.
Capacity Issue: Increasing popularity expected to sell 25 Millions units of MK20 over its life cycle of 5 to 6 years COST : 1> Design Optimization by 130 parts -50 Fewer than existing MK4 2> Modularity to fulfill more customer requirements using same components.
Development time: 1> Team formulation of Design, Engineering,