Presentation Transcript

1. Introduction To “Sustainability In The Automotive Industry” C.V. Raman Executive Director – Engineering Division Maruti Suzuki India Ltd., India
2. Contents ① Sustainability : What Does It Mean ? ② MSIL Approach For Sustainable Growth in Automotive Industry ③ Expectations From Suppliers
3. Sustainability : What Does It Mean ? def . “ .. Sustainability Sustainable Development is a pattern of resource use that aims to meet human needs while preserving the environment, society & economy so that these needs can be met not only in the present, but in the indefinite future .
4. Sustainability : What Does It Mean ? Each one relies on the stability of the other Anyone can have adverse effects on the other two ENVIRONMENT ECONOMY SOCIETY Balance of environmental resource conservation, economic prosperity & social well being is key for Sustainable Development
5. Sustainability : Why in Automotive Industry ? Automobiles and their direct impact on environment: Air (Direct & Indirect emissions) Water (Release of harmful waste) Energy (Depleting non renewable Fossil-Fuels) Direct & Indirect Impact (Everything within the environment is cyclical and connected) SOCIETY ECONOMY OEMs must take care Environmental , Social & Economic issues for sustainable growth
6. Contents ① Sustainability : What Does It Mean ? ② MSIL Approach For Sustainable Growth in Automotive Industry ③ Expectations From Suppliers & Policy Makers
7. Commitment for Sustainability Maruti Suzuki has a dedicated program on Sustainability, Called as…… “ Foot on the Pedal” Maruti Suzuki’s belief to approach business is……. “ 3G” (Give, Get & Grow) Committed to improve the performance of Environment, Society & Economy while doing business
8. MSIL’s Key Focus area under Sustainability ① Environmental Perspective (CO2 Footprint) Focus on Efficient Development Process & Product b) Focus on Green Manufacturing b) Focus on Green Supply Chain Operation Foot on the Pedal (Sustainable Approach) ② Social Perspective a) Focus on Community Development a) Focus on Road Safety ③ Economic Perspective a) Hedging of Foreign Currency & expensive raw metal b) Focus on Localization
9. MSIL’s Key Focus area under Sustainability ① Environmental Perspective (CO2 Footprint) Focus on Efficient Development Process & Product b) Focus on Green Manufacturing b) Focus on Green Supply Chain Operation Foot on the Pedal (Sustainable Approach) ② Social Perspective a) Focus on Community Development a) Focus on Road Safety ③ Economic Perspective a) Hedging of Foreign Currency & expensive raw metal b) Focus on Localization
10. Efficient Process & Product to Reduce CO2 Powertrain Efficiency Full Vehicle Virtual Validation Vehicle Light Weighting Alternate Fuel Technologies ELV/Asbestos Compliance Product MSIL’s Focus Area to Improve Carbon Footprint
11. Full Vehicle Virtual Validation Capability Ergonomics & Layout Analysis Crash Worthiness Analysis Aerodynamics Analysis Structural Rigidity Analysis Maruti Suzuki has developed the full vehicle virtual validation capability which enables efficient design & process product development This helps in reducing physical testing Virtual validation technique helps to reduce carbon footprint
12. Efficient Process & Product to Reduce CO2 Powertrain Efficiency Full Vehicle Virtual Validation Vehicle Light Weighting Alternate Fuel Technologies ELV/Asbestos Compliance Product MSIL’s Focus Area to Improve Carbon Footprint
13. Vehicle Weight Reduction : Maruti Suzuki’s Initiative ONE COMPONENT ONE GRAM WEIGHT REDUCTION CAMPAIGN This Special Drive has resulted in Weight Reduction of MSIL’s Existing Model WEIGHT REDUCTION IS A PRIME FOCUS AREA FOR NEW MODELS # Review all new & Existing Parts at Design Stage # Use of Bake Hardened Steel, High Strength Steel, Hot Stamping etc.
14. Vehicle Weight Reduction : Maruti Suzuki’s Initiative Maruti Suzuki’s Commitment Towards Weight Reduction Full Model Change Old Swift New Swift Weight: 1010 Weight: 990 ~ 2 % Reduction in Weight Length: 3760 Width: 1690 Height: 1530 Length: 3850 Width: 1695 Height: 1530 New Swift is Bigger in Size Weight Reduction in New Swift…Though it is bigger in Size
15. Efficient Process & Product to Reduce CO2 Powertrain Efficiency Full Vehicle Virtual Validation Vehicle Light Weighting Alternate Fuel Technologies ELV/Asbestos Compliance Product MSIL’s Focus Area to Improve Carbon Footprint
16. Powertrain Efficiency Focus on Increasing CR (Compression Ratio) to enhance Thermal Efficiency F.E. 2%↑ Source: MSIL’s Internal Test Result MSIL achieved 2% Low Fuel Consumption If Compression Ratio increased by 10%
17. Powertrain Efficiency Focus on Friction Reduction Source: MSIL’s Internal Test Result MSIL achieved 2% lower fuel consumption by 10% Friction Reduction
18. Powertrain Efficiency Focus on Thermal Management of Coolant & Oil Actual % loss Predicted % loss Coolant Temp. Oil Temp. Improvement opportunity Coolant Temp. T.M. strategy Oil Temp. T.M. strategy Source: MSIL’s Internal Test Result Urban Driving Cycle Improvement in fuel consumption from faster warm up of Coolant & Oil
19. Efficient Process & Product to Reduce CO2 Powertrain Efficiency Full Vehicle Virtual Validation Vehicle Light Weighting Alternate Fuel Technologies ELV/Asbestos Compliance Product MSIL’s Focus Area for Efficiency Improvement
20. Maruti Suzuki’s Commitment For Lower CO2 Cumulative CO2 Reduction From Maruti’s Alternate Fuel Vehicles (CNG) Cumulative Sales of Alternate Fuel Vehicles (No. of Units) Cumulative CO2 Reduction (T) 2006-07 2007-08 2008-09 2009-10 2009-10 2010-11 2011-12 Maruti Suzuki saved 157 K ton of CO2 from Alternate Fuel Vehicles till Mar’12
21. Hybrid Technology – MSIL Test Result Source: MSIL’s Internal Test Result Upto 25% reduction in CO2 achieved in Sedan Class Vehicle
22. Efficient Process & Product to Reduce CO2 Powertrain Efficiency Full Vehicle Virtual Validation Vehicle Light Weighting Alternate Fuel Technologies ELV/Asbestos Compliance Product MSIL’s Focus Area for Efficiency Improvement
23. ELV Compliance Product Development End Life of Vehicle (ELV) Design for RRR (Reduce Reuse Recycle) Focus on removal of Hazardous Elements Use of Recyclable Materials MSIL is committed for developing ELV compliance product; though regulation mandate is not formalized in India
24. Reduction of Hazardous Substances MSIL’s Initiative for Removal of hazardous chemical: What is Hazardous? Lead – damage to kidney, liver, brain, nerves, bones and blood Cadmium – highly toxic, accumulates in body (specially kidney) Mercury – negative effects on brain functioning Hexavalent Chromium – Carcinogenic, allergic Asbestos – Causes Lung Cancer Usage in Automobiles: Lead – Batteries, Dampers, Pb as alloy, fuel tanks, paints, soldering, wheel balance weights, vulcanizing agent in pressure hoses, bearing Mercury – Gas discharge devices in Headlamps Cadmium – Batteries Hexavalent Chromium – Corrosion preventive coatings Lead removal from bearings, fuel tanks, wheel balance weights etc. Carcinogenic Cr6+ removed from all plated parts Major Hazardous element like Lead, Chromium etc. removed from MSIL’s Models
25. Extensive use of Recyclable materials Description Material Use of recyclable material is part of MSIL’s core design philosophy
26. Product Design for RRR compliancy MSIL’s Initiative For RRR Compliancy: A-Star has received RRR certification Recyclable rate : 86.9% Recoverable rate : 96.0% MSIL’s Internal Design Target For RRR Compliance: Reuse- Recycle Rate Reuse- Recovery Rate By Jan’2015 :85% or more95% or more SIAM / NATRIP / MoHI Initiative : Dismantling Unit in Chennai for 4-W & 2-W Vehicles MSIL was part of this Initiative With Govt.’s Support, OEMs will be able to achieve RRR compliancy for all models in Future
27. Efficient Process & Product to Reduce CO2 Full Vehicle Virtual Validation Vehicle Light Weighting Powertrain Efficiency Improvement Alternate Fuel Technology Alternate Fuel Technology Efficient & Sustainable Product Efficient Process MSIL reducing carbon footprint by adopting efficient process & products
28. MSIL’s Key Focus area under Sustainability ① Environmental Perspective (CO2 Footprint) Focus on Efficient Product Development b) Focus on Green Manufacturing b) Focus on Green Supply Chain Operation Sustainable Approach ② Social Perspective a) Focus on Community Development a) Focus on Road Safety ③ Economic Perspective a) Hedging of Foreign Currency & expensive raw metal b) Focus on Localization
29. Focus on Green Manufacturing Manufacturing Manufacturing Process Related Plant Related A Step Towards Green Manufacturing…………
30. Manufacturing Process Related Initiatives Promote RRR (Reduce Reuse Recycle) In Bumper shop To grind, recycle & reuse the rejected molded bumpers or instrument panels Granulator is installed. No waste or scrap generation is carried out for any plastic component. Rejected Bumper is Granulated, Melted & Reused again in MSIL
31. Manufacturing Process Related Initiatives Thinner collection unit Waste Thinner Collection system in Paint shop Thinner used to clean robot Nozzles in Paint Shop Earlier thinner used to get mixed with Water & generate VOC-volatile organic compound emission by evaporation into atmosphere MSIL achieved following result after installing thinner collectors: 1.VOC Reduction by 20%. 2.Less sludge generation & less load on incinerator Now thinner is recycled after collection; Less waste or Emission
32. Manufacturing Process Related Initiatives Installation of friction conveyor at weld, paint & assembly shop Chain Conveyor Friction Conveyor Implemented in Manesar Plants & Paint Shops Reduction of noise level from 95 dB to 85 dB Reduction of power consumption by 60% Helped in energy saving & elimination of noise level
33. Manufacturing Process Related Initiatives Energy Efficient Melting F/c Advancements in the Features of Casting Shop Two process Decoring m/c Waste flue gases used to preheat the ingots entering into the furnace 99.5% sand is removed in dry condition only by Decoring machine. Hence sand baking process is eliminated which consumes LPG & Power. This initiative helped in power saving
34. Focus on Green Manufacturing Manufacturing Manufacturing Process Related Plant Related A Step Towards Greener Manufacturing…………
35. Plant Related Maximum utilization of natural resources Use of natural lighting Use of solar energy Use of natural exhaust Only LED lights were installed at Manesar plant, making it the first car plant in India to use LED technology entirely MSIL is using the Japanese concept “KAIZEN” very effectively in energy management
36. Plant Related Captive Power Plant based on clean fuel Maruti Suzuki’s manufacturing sites at Gurgaon & Manesar run on captive power plants which use natural gas (CNG), a clean fuel. 1 MW Solar Power Plant will be commissioned in Manesar Plant soon !!! Initiatives for cleaner & efficient Power Generations
37. Plant Related Waste water Treatment Domestic Use STP ETP & STP treated water Fresh Water Process INDUSTRIAL AND dm WATER ETP ET RO STP: Sewage treatment plant ETP: Effluent treatment plant Maruti Suzuki has achieved zero waste water discharge status (Outside factory premises) In 2011~12, 41% of total water requirement was achieved from recycling
38. Plant Related Water Harvestinhg Lagoons for rain water harvesting - 2 lagoons of 15000 cu.m. storage capacity - Recharge shafts capable of recharging another 7000 cu.m. / day Water Harvesting is a prime focus area for Maruti Suzuki
39. Green Manufacturing Well ! We Talked about various initiatives taken at manufacturing process & plant level under Green Manufacturing……. Now Let’s See the Cumulative Result of initiatives taken !!!
40. Green Manufacturing Electricity Consumption Per Car Power Consumption per car has reduced by ~30% in the last decade Water Consumption Per Car Water Consumption per car has reduced by ~60% in the last decade MSIL has achieved reduction in power & Water consumption due to waste minimization & process innovation under Sustainability Program
41. MSIL’s Key Focus area under Sustainability ① Environmental Perspective (CO2 Footprint) Focus on Efficient Product Development b) Focus on Green Manufacturing b) Focus on Green Supply Chain Operation Sustainable Approach ② Social Perspective a) Focus on Community Development a) Focus on Road Safety ③ Economic Perspective a) Hedging of Foreign Currency & expensive raw metal b) Focus on Localization
42. Green Supply Chain Operation MSIL has a supplier base of 267 suppliers (Including 20 JVs) MSIL took a lot of initiatives to improve environmental performance under supply chain operation: Set up JVs for Lighter Weight Components: Setup JVs with Inergy Corporation, France to develop plastic fuel tank Fuel Tank 1st Company in India to manufacture plastic fuel tank Already introduced in Swift & Dzire, others are under implementation Plastic Tank is 30% lighter in weight & 100% recyclable Optimization of Logistic Operation: More than 100 suppliers are located in Gurgaon-Manesar Region Commissioned a steel coil processing plant (JVs) in Manesar to reduce transportation of various suppliers Initiatives helped to reduce 16,700 Km of vehicular movement per year Continuous Focus on Optimization; 86%(by Value) of the Components sourced by the company are located within 100 km radius
43. Green Supply Chain Operation Rail Transportation: For exports, MSIL is using rail transportation from Gurgaon to Mundra Port, Gujarat. Suzuki exports components to other facility in Thailand & Indonesia by rail transportation. More than 3 lakh vehicles & 30% export of total kits by rail Switch from Road to Rail can reduce emission by 40% Packing Improvement for Components: Parts come in 100% reusable bins Paper & Cardboard Packing for butyl tape were replaced with recyclable plastic spools In 2011-12, ~23 Ton of polythene were eliminated & ~20 ton of cardboard were saved Similar to these initiatives, MSIL is also exploring various other options to make supply chain operation more greener
44. Environmental perspective under Sustainability Green Product Development & Product Green Manufacturing Green Supply Chain MSIL is following basic philosophy of “ Smaller, Fewer, Lighter, Shorter & Neater” to develop healthy & positive eco system in India !!!!! MSIL is committed to reduce carbon footprint from environmental perspective under sustainability program for greener tomorrow……….
45. MSIL’s Key Focus area under Sustainability ① Environmental Perspective (CO2 Footprint) Focus on Efficient Product Development b) Focus on Green Manufacturing b) Focus on Green Supply Chain Operation Sustainable Approach ② Social Perspective a) Focus on Community Development a) Focus on Road Safety ③ Economic Perspective a) Hedging of Foreign Currency & expensive raw metal b) Focus on Localization
46. Focus on Community Development Foundation day celebration At Kasan School, Manesar Create Heath Awareness in Communities Maruti employees participating in volunteering program Since 2007, MSIL has adopted four neighboring communities in Manesar MSIL made large investment to improve basic infrastructure & health awareness MSIL runs a computer education center for providing basic computer literacy to the children at Alihar village Last year, employees contributed 4,142 volunteering hours for the benefit of the community. Community development is part of MSIL’s CSR Policy. Stakeholder engagement is given utmost importance in the CSR Policy
47. Focus on Road Safety Educate Driver MD with truck drivers for road safety campaign Set up of 6 IDTR & 206 MDS Total Persons Trained in IDTR (Cumulative) MSIL runs a nationwide road safety programme through 6 IDTR & 206 MDS. MSIL runs a special driver training program for truck drivers employed by its transporter. MSIL has trained more than 7 lakh people so far in IDTRs. MSIL has made a commitment to train 5 lakh persons over 3 years. With enhanced driving skill, upto 30% reduction in fuel consumption is possible !!!
48. Social Perspective under Sustainability MSIL Considers the improvement in Social Performance as key to corporate success under sustainability !!!!! MSIL engages with the stakeholder group to assess its needs & addresses them through various CSR initiatives……
49. MSIL’s Key Focus area under Sustainability ① Environmental Perspective (CO2 Footprint) Focus on Efficient Product Development b) Focus on Green Manufacturing b) Focus on Green Supply Chain Operation Sustainable Approach ② Social Perspective a) Focus on Community Development a) Focus on Road Safety ③ Economic Perspective a) Hedging of Foreign Currency & expensive raw metal b) Focus on Localization
50. Economic Perspective under Suitability Maruti Suzuki believes in Sustained business growth & in the financial well-being of its direct stakeholders !!! At MSIL, investments decisions are based on the economic viability of product & company under long term sustainable business….. MSIL has taken various measures to remain economically sustainable so that it contributes in local economy: Hedging of Foreign Currency: MSIL has received permission from RBI to hedge risks arising from foreign exchange exposure
51. Economic Perspective under Suitability Hedging of Precious Commodity MSIL has constituted joint teams of Finance & Supply Chain to explore possibilities of hedging its commodity exposure in copper, aluminum & precious metals. Aluminum Precious Metals Copper Enhanced Focus on Localization: MSIL is making focused efforts for localizing import contents to develop economically viable product & avoid foreign exchange risk Initiatives taken under Economic Sustainability, helping MSIL to enhance its revenues & profits
52. Economic Perspective under Suitability Maruti Suzuki is contributing to Indian Economy in its own way Under Economic Sustainability, The objective is to ensure that the MSIL meet or exceed the expectations of our customers, other stakeholders and regulators; and that they contribute to overall financial stability and economic opportunity.!!!!!
53. MSIL’s Sustainability Journey : Foot on the Pedal ENVIRONMENT ECONOMY SOCIETY MSIL’s goal under sustainability journey is to establish a ecosystem that are economically viable, environmentally sound and socially responsible. 
54. Contents ① Sustainability : What Does It Mean ? ② MSIL Approach For Sustainable Growth in Automotive Industry ③ Expectations From Suppliers
55. Expectations from Suppliers We are doing our best for sustainability…however…. With the unmet demands & larger business needs…. The suppliers have to play a key role !!!
56. Expectations from Suppliers Focus on implementation of “Green System”: MSIL’s Initiatives at Supplier End EMS (Environment Management System) MPS (Maruti Production System) “ A well defined system to reduce carbon footprint (ISO 14001 Compliant)” “ A system to eliminate in-process wastage and improve productivity ” More than 65% of tier 1 supplier has implemented so far……. Implementation is under process… 52 energy saving projects were implemented by 11 suppliers in FY 11~12, Resulted in 15% reduction in their energy cost !!!! Suppliers should come forward & implement such systems more in their organization for sustainable future !
57. Expectations from Suppliers Focus on enhanced quality system : Quality employment is must for sustainable growth CASE STUDY 1 CASE STUDY 2 Product Failure due to internal child part wear Fuel Adulteration in India New plants setup by supplier has poor quality level Missing India Focus (Inadequate testing under Indian condition) Enhancement in quality at supplier end is must !
58. Expectations from Suppliers Focus on optimized logistic & packaging operation: Avoid contents of disposable material in packaging Establish local automotive components hub near manufacturing facility MSIL lost 40,100 parts in 1 month due to poor transportation & packaging quality Ok Part NG Part NG Transportation & Packaging Focus on India Specific Design & Manufacturing : Enhance value chain of advance technology components by local manufacturing Support OEMs in adoption of new technology by offering India specific design Focus on India specific R&D at supplier level to reduce cost
59. Expectations from Suppliers Last but not the least……Vendor Park near Manufacturing Unit Current Supplier Base for Gurgaon/Manesar Earlier Supplier Base for MSIL,Gurgaon MSIL’s 86% (by Value) Automotive Supplier base are within 100 km range in NCR Region Supply from different region of India NCR Region Gurgaon Plant Supply to MSIL supply to MSIL Supplier base Shifting supplier near manufacturing ( Reduce Vehicular Movement) Supply to MSIL Kolkata Gurgaon Plant Mumbai Manesar Plant Pune Hyderabad Chennai Bangalore Let’s put joint effort to make supplier base near the manufacturing unit for sustainable business !!! Initiatives can help to reduce million tons of CO2 per Year
60. The greatest threat to our planet is the belief that someone else will save it - Robert Swan MSIL is committed for developing healthy & positive ecosystem for India Thank You