Momentum march 2014 by alarinks

momentum March 2014 | Volume 2

BharatBenz Partner Newsletter

Developing suppliers www.bharatbenz.com

Momentum_March 2014.indb 1

DICV takes the wraps off new tractors 3/11/2014 8:03:19 PM

Momentum_March 2014.indb 2

3/11/2014 8:03:20 PM

Note from the ceo Dear valued Partners of DICV Moving over from 2013 the Indian truck market is still in the throes of a very tight economic situation and the nation is expecting a very serious change in the months to come. While the events of the next months are bound to throw a lot of turbulence, we at DICV will continue our push into the market and keep our course steady. Preparing to take on other players, we will be faced with a lot of new offering from the others. However, a big boost for DICV and BharatBenz came on 14 January 2014, when at the prestigious Apollo-CV awards conducted at Mumbai, DICV won 3 important awards. BharatBenz 3128 won the “HCV Cargo Carrier of the Year (more than 25 tonnes GVW)” award. The “CV Innovation of the Year” award was won by BharatBenz 1217. Daimler India Commercial Vehicles also won the prestigious “CV Maker of the Year” award. We at DICV have every reason to feel proud. On 31 January 2014, we launched 3 Tractors and 1 Construction mining trucks enhancing the BharatBenz range. With this launch BharatBenz is now available across the spectrum of Medium & Heavy-duty truck range. BharatBenz has created a great sense of conviction and pride amongst its owners and a benchmark of expectation has been set higher than ever before. This powerful change has had its effect on the entire Indian trucking industry. On the other hand our ‘Trucks Asia’ model is gaining ground and we will move to a higher level of cooperation in 2014. As part of our strategy, we will expand into the remaining markets of our 1st wave strategy. Exports will increase in focus and our presence will expand against tough competition from other international players. It is therefore very imperative that we keep-up the tempo and deliver our customer path-leading products and services. As BharatBenz trucks keep up the positive impact in the market, DICV is gearing up to its name as a Commercial Vehicle manufacturer by foraying into the business of Buses. The foundation of our new Daimler Bus plant was laid by Dr. Wolfgang Bernhard, Member of Board of Management of Daimler AG responsible for Daimler Trucks & Daimler Buses on 06 March 2014. This marks yet another major milestone in DICV’s march forward. At DICV the excitement continues against all odds Best regards Marc Listosella CEO and Managing Director, DICV

Contents March 2014

Impact

Developing suppliers

Highlights

Recovery remains fragile Spreading out A culture of learning

World of Daimler

FUSO’s eco drive

Spotlight

Tech Talk

DICV takes the wraps off new tractors

Editorial Board Brand Communications - BharatBenz Daimler India Commercial Vehicles Pvt. Ltd. Unit 201, 2nd Floor, Campus 3B, RMZ Millennia Business Park, No. 143, Dr. M.G.R Road, Perungudi, Chennai - 600096, Tamil Nadu, India Tel: +91-44-45996000 Website: www.bharatbenz.com, E-mail: sales_dicv@daimler.com

Flashback in facts

March 2014 | Momentum | 1

Momentum_March 2014.indb 1

3/11/2014 8:03:28 PM

Impact

Developing

suppliers

How Daimler India Commercial Vehicles is helping develop world class suppliers in India

uppliers are the backbone of any manufacturing setup. Daimler India Commercial Vehicles (DICV) is no different. Today, DICV has over 200 Tier I or direct suppliers in India, and about 1,000 Tier II and III suppliers (those who supply to suppliers). These suppliers are crucial to us as we outsource most of our aggregates. A proud achievement for DICV has been to reach a localisationin Indiaof about 85 per cent in supplies by the start of production. In the next few years, the company aims to increase the localisation rate to over 90 per cent, an absolute benchmark for any global automotive company. The task to setup such an elaborate network of suppliers has indeed been challenging. It required constant work with all our suppliers to raise quality standards, learn and execute new technologies, and improve delivery efficiency. The results, of course, have been rewarding.

A philosophy of partnership DICV’s relationship with its suppliers is based on a cooperation model called the

Daimler Suppliers Network (DSN). The DSN philosophy provides the basis for all collaboration between the two. Here collaboration based on trust and open communications is very important. The emphasis is also on following sustainable business practices. The model relies on selective partnership. It pays off top performers, creates incentives for the entire supplier base, and offers potential partners an opportunity to to grow with Daimler. DICV’s strategy, as per the DSN model, has been to work with suppliers as partners and support them in various aspects. This goes in line with the company’s "Commitment to Excellence" which stands on two pillars: (1) Performance, which is measured on the basis of quality, technology, costs and on-time delivery; and (2) Partnership, which is based on trust and open communication. This also includes compliance with sustainability standards along the supply chain.

Assessing suppliers At Daimler, the relationship with suppliers assumes increased significance due to the global nature of the organisation. Since

the organisation is present in several geographies, the decision to source locally versus from legacy suppliers is a crucial one. A big challenge before deciding on setting up a manufacturing facility in India was to assess and understand if Indian suppliers would be able to supply us parts with requisite quality. “In the beginning, we had some doubts whether we should localise. There were some commodities we doubted we can localise in India because it had never been done before. This was a big challenge,” says Erich Nesselhauf – VP Supply Chain and Logistics. For such commodities, the company did a complete risk assessment, and assessed several suppliers if they would be able to deliver those parts. In fact, a thorough risk assessment was carried out for all suppliers and parts. A heavy and medium duty truck feasibility study was conducted years before the decision for India was taken. This was a technical as well as commercial feasibility study. Daimler had a tear down centre in Delhi where we invited Indian suppliers to study the parts and provide us with approximate

cost. Another issue was whether to produce tools in India or to import them from another part of the world.

Developing a supplier ecosystem After our assessments, we decided to go with the strategy to “develop” the suppliers we collaborate with in India. To our advantage was the fact that India had large number of suppliers for commodities available, especially for heavy duty applications. However, the challenge was that some of the suppliers’ quality standards were below than those at Daimler. Also, many of the components were based on new technologies introduced by Daimler. For these, the company had to develop completely new supply assets. The focus at DICV is on the assembly of trucks, transmissions and engines. All other parts are being outsourced, which also means outsourcing the entire machining of all components. This was a huge challenge in the beginning because the company had to teach respective suppliers how to machine these components. This entailed transferring in-house knowhow to

2 | Momentum | March 2014

Momentum_March 2014.indb 2

3/11/2014 8:03:32 PM

A drop in quality at one level can affect the quality at the other. A control and monitoring is thus necessary at all levels of the supply chain Erich Nesselhauf VP Supply Chain and Logistics

March 2014â&#x20AC;&#x201A;| Momentum | 3

Momentum_March 2014.indb 3

3/11/2014 8:03:39 PM

Impact suppliers. The company worked on a detailed plan to achieve this. DICV provided the training to our partners not only in processes and systems but also in new technologies. The company invited the suppliers to Germany where they were shown how parts are produced in-house. It also showed them how to produce the parts at its machine makers. It weresent some of the suppliers to Japan to learn about special technologies. The focus while developing suppliers is not only on Tier I or direct suppliers but also on Tier II and III suppliers . “We want to establish and ensure sustainability of entire process chain. Ascertaining the highest quality standards at all levels is necessary. A drop in quality at one level can affect the quality at the other,” says Nesselhauf. For instance, an engine block must not only have superior machine components but also high quality casting parts, which are made by Tier II/III suppliers. A control and monitoring is thus necessary at all levels of the supply chain. “If you don't monitor your suppliers you may end up with some quality issues, so we monitor

key performance indicators (KPI) from the supplier in terms of PPM (parts per million), parts delivery on time, over delivery, under delivery and so on a regular basis. We have a very fast responding system where we see immediately if some supplier has negative trend,” says Nesselhauf. Today, suppliers in India have reached a level of compatibility that matches suppliers in Europe when it comes to technology and quality levels. The division of work is clearly demarcated. First it is Procurement which searches for suitable suppliers and do the first techno-commercial evaluations. Then a cross-functional team goes to the shortlisted suppliers for an On Site Assessment. Once the supplier is decided, Supplier Management and Logistics work together with the supplier for part and tooling development as well as the packaging definition.

Location matters During the awarding process, the company discusses with every supplier the possible locations and the advantages of co-location. It is important that the suppliers are co-located, especially for bulky

commodities and where parts have to be procured in a short span. For instance, the company procures cabin and body parts from suppliers which are colocated 500 meters away from the production area. This is not only convenient in terms of supply but also important because in India parts have to be protected from dust. A huge chunk of those suppliers -- both Tier I and II/ III -- are located in the Chennai region. They provide 50 per cent of all the parts by value directly to the Oragadam plant. A “just-intime” delivery from suppliers is ensured by what is called a “milk

Indian suppliers can now match suppliers in Europe when it comes to technology and quality levels.

Case study – A successful alliance AAM India Manufacturing Corporation, a regional unit of Detroit-based automotive supplier AAM, is a well-established player in axle manufacturing. The company’s leadership in technology and processes has helped it deliver high quality axles to DICV. AAM has established a greenfield facility in Chennai exclusively for DICV which delivers best-in-class axles as per Daimler’s global specifications. Frequent workshops have been conducted by AAM and the DICV team with a management focus in order to resolve complex launch issues to meet customers’ expectations and achieve a flawless vehicle launch. Issues are addressed with on-time escalations to top management for quick resolution and necessary action is taken by the team. During the development phase there was a strong collaborative approach at all levels, including the working level which resulted in fast issue resolution to meet vehicle tryout/SOP

milestones as per Daimler quality and it is transforming the Indian standards. With the help of DAG/ trucking industry. The challenges DICV experts, AAM has established of future can only be overcome an excellent axle assembly with collaboration and cooperation manufacturing line which can of likeminded partners like DICV meet Daimler’s stringent quality and AAM. ” requirements. During this process Capacity planning is a AAM has learnt and implemented key factor for achieving steep manufacturing best practices for ramp-up phase for DICV drive head and axle assembly for vehicle production. AAM has heavy and light duty application. demonstrated increase in Says AnandGanguly, capacity by addition of manpower, Managing Director, AAM India, and improvement of cycle time Anand Ganguly “Many processes and techniques for bottleneck operations for axle MD, AAM India have been developed jointly to and drive head assembly. AAM ensure quality and timeliness. Our has achieved a rapid ramp-up relationship with DIVC is very important step. A curve starting from four vehicle sets per day to world leader like Daimler is known for providing 55 vehicle sets per day in a short span and thus high quality and reliability through its products supported the DICV vehicle production plan.

4 | Momentum | March 2014

Momentum_March 2014.indb 4

3/11/2014 8:03:40 PM

after Chennai is Pune where the second major batch of suppliers is located. There too the company operates milk runs from and to the cross docks. It is not as elaborate as the one in Chennai but helps to immediately know if a part is in short supply or missing.

Promoting Indian suppliers

run”. A logistics provider takes a certain route and picks up parts from various suppliers. While from some suppliers he picks up parts four times a day, from some others only once a week. For its Chennai suppliers the company has an elaborate and efficient milk run system that works well. The company sources most of the bulky parts and expensive parts from around Chennai. It also has three cross docks across India, in Bangalore, Pune and Delhi. Sourcing from Delhi was restricted to keep transport costs low -- it is a four-day haul, or roughly 100 hours from Delhi to Chennai. The next big hub

To be sure, in the beginning it was difficult to promote Indian suppliers. However, with time the company has been able to convince Daimler in Germany and Japan about the quality of supplies from India. “Today, they are quite interested and keen on supplies from India. That said, I still feel there is a need to ‘promote’ suppliers because it is a different story if you want to supply parts for a local plant versus if you want to export parts to different locations in the world because there we have to develop trust, and there is also the language barrier,” says Nesselhauf. Indeed, it is easier for the team in Germany to order parts from a German supplier than to order parts from India. That is why on-site supplier management is a key because if there has to be a system to export parts in the long run, the company has to take care of all local issues.

Supplier management A Supplier Management system at DICV plays a key role in developing suppliers. It helps provide suppliers with technical expertise from local Supplier Managers who have years of experience in the automotive industry. Technical support is also provided from German experts who come to India and work with the suppliers. Joint workshops in India and Germany are regularly held in this regard. With regard to areas of cooperation, primarily the

company provides suppliers with technical support. Then there is process support and training in all Daimler systems. Suppliers can now even participate in lean management projects. The company’s top management meets on this on a regular basis. Besides, there are annual Supplier Meets where suppliers are updated about upcoming projects. There is a detailed Supplier Reliability Tracking and Form Task Force where Supplier Managers are stationed at the suppliers’ end for implementing improvements.

Supplier meets The company holds supplier meets on an annual basis. The supplier meet is important because it is here that information relating not only to what has been achieved thus far but also future plans are discussed. The annual supplier meet is called “Winning Alliance”, to stress the importance of the supplier network. On their part, suppliers gain immensely from the partnership. They experience operative improvement, gain new businesses and achieve overall business growth, and have better

brand recognition and improved market positioning. Besides, Daimler prepares and promotes its suppliers for export business. The company has already started with the new Asian Business model together with its Daimler partner company MFTBC. For the first time trucks under the FUSO brand are being manufactured in India and exported to African and other Asian countries. To consolidate all commercial vehicles business in India, DICV took over the production of MB Actros trucks as well as sales and after sales of MB buses from MB India. As a case in point, one of Daimler’s suppliers, Craftsman Automation, won the Global Daimler Supplier Award in 2012. Some other suppliers are already successfully exporting to other Daimler Trucks plants outside India. Looking ahead, DICV seeks to provide more opportunities to its suppliers by providing not only local business but global opportunities as well by introducing them to locations worldwide, especially for the Asian business model under the Daimler Truck Asia strategy. yz March 2014 | Momentum | 5

Momentum_March 2014.indb 5

3/11/2014 8:03:41 PM

Highlights

Recovery remains fragile India’s recovery from the longest-ever economic slowdown in the post-1991 period remains slow and fragile. A look at the key economic indicators Index of Industrial Production Growth Rate

Index of Industrial Production Growth

Industrial production

Contraction in manufacturing activity dampens industrial output though core sector output grows marginally

he Index of Industrial Production (IIP) contracted by 0.6 per cent in December 2013. The IIP declined for the third month in a row mainly on account of poor performance in manufacturing activity. In November 2013, the IIP had contracted by 2.1 per cent while a month ago in October it had dropped by 1.8 per cent. The manufacturing sector, which constitutes about 75 per cent of industrial production, contracted 1.6 per cent in December 2013 against a negative growth of 0.8 per cent in December 2012. Eight out of the 22 industry groups in the manufacturing sector showed negative growth in December. The industry group ‘radio, TV and communication equipment’ reported the highest negative growth of 35.7 per cent. The mining sector grew marginally by 0.4 per cent in December. This growth can be attributed to lower base effect. Electrical generation grew moderately by 7.5 per cent in the same month. Core Sector Index: The output of the core sector, comprising eight crucial industries, grew marginally by 2.1 per cent in December 2013 against a growth of 7.5 per cent in December 2012. The high base effect of 7.5 per cent in December 2012 depressed the numbers to some extent. The cement and steel industry reeled under pressure, expanding marginally by 1.1 per cent and 3.1 per cent respectively. While fertilisers did well to grow at 4.1 per cent, electricity generation expanded the fastest at 6.7 per cent in December 2013. Crude oil production registered a positive growth of 1.6 per cent compared to 1 per cent in December 2012. Natural gas production continued the downward trend contracting by 9.9 per cent in December 2013. (Source: Economic Advisor to Industries, Govt of India)

Base Year - 2004

2 per. Mov. Avg ( Index of Industrial Production Growth Rate )

20%

15%

10%

5% -0.6%

J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N -5%

2008

2009

2010

2011

2012

2013

-10%

Core Sector Index Growth Base Year - 2004-05

CSI Growth Rate 2 per. Mov. Avg ( CSI Growth Rate )

10% 8% 6% 4% 2.1% 2% 0%

Mining*

Manufacturing

Electricity

December 2013

0.40%

-1.60%

7.50%

December 2012

-3.10%

-0.80%

5.20%

* Mining = Metal and mineral mining ; YTD = Year to date

-2%

J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N J M M J S N 2009 2010 2011 2012 2013 2008

-4% Market & Economic Intellignece - India/MS

6 | Momentum | March 2014

Momentum_March 2014.indb 6

3/11/2014 8:03:42 PM

Foreign trade

Foreign trade declines though trade deficit narrows driven by fall in imports

oreign trade declined by 6.8 per cent in December 2013 against a positive growth of 4.7 per cent in December 2012. Exports grew by 3.49 per cent to $26.34 billion in December 2013 as compared to $25.45 billion in the same month a year ago. Imports fell by 15.2 per cent to $36.49 billion in December 2013 over the same period in 2012. India’s trade

Yearly Exports

244

2006

159

Ytd Nov ‘13

163

2012

2008

2009

126

103

2011

2007

Export Import Growth 155

In $ billion 160

Yearly Balance of Trade

2010

191

2007

292

304 216

249

2009

185

2008

149 2006

313

468

In $ billion

335

483

In $ billion 464

Yearly Imports

deficit in December 2013 narrowed to $10.14 billion versus $17.19 billion in the same month a year ago driven by the fall in imports. Exports of textiles, leather products and chemicals grew benefitting from a weak rupee. Crude oil import was 1.1 per cent higher than the corresponding period a year ago while non-oil import was 22.9 per cent lower compared to December 2012.

2010

2011

Ytd Nov ‘13

2012

In %age

119

J F M A M J J A S O N D J F M A M J J A S O N D -10

-20 2012 2006

2007

2008

2009

2010

2011

2012

Ytd Nov ‘13

2013

-30

March 2014 | Momentum | 7

Momentum_March 2014.indb 7

3/11/2014 8:03:42 PM

Highlights

Key end-user industries perform moderately (Monthly growth trend)

Steel production Indiaâ&#x20AC;&#x2122;s finished steel production grew marginally by 3.1 per cent in December 2013 against a moderate growth of 8.3 per cent a year ago. Steel output had grown by 3.9 per cent in November and 3.5 per cent in October. While the production in December stood at 72.1 lakh tonnes, the cumulative production for January-December 2013 stood at 803.3 lakh tonnes compared to 733.2 lakh tonnes in the same period in 2012. Steel consumption grew marginally by 2.8 per cent in December 2013 against the same month a year ago. Demand for finished steel still remains low due to poor demand from automotive, white goods, machinery and infrastructure sectors. The prices of steel products like hot rolled coil and cold rolled sheet increased by 2.6 per cent and 2.4 per cent respectively in December 2013 against the same period a year ago.

Production Growth

Consumption growth In %age

In %age

% Growth

Avg 4-5%

J F M A M J J A S O N D J F M A M J J A S O N D

-5

2012

-10

2013

J F M A M J J A S O N D J F M A M J J A S O N D

2012

-10

2013

Cement production Cement production rose marginally by 1.1 per cent to 222 lakh tonnes in December 2013 against a 9.5 per cent growth in December 2012. The cumulative production for January-December 2013 stood at 2,547 lakh tonnes as against 2,435 lakh tonnes in the same period a year ago. With limestone reserves running out, the centre is dithering on fresh licenses. The average pan-India price of cement dropped by 0.5 per cent in December 2013. Cement prices have been oscillating every other month. The next quarter may witness uptick in cement prices but that is only because January and February are peak months for construction activity. The performance of Indian cement companies remained dour in the December quarter as sluggish demand for the commodity took a toll on sales volumes.

Production Growth

Price Change

In %age

15 Avg 7-8%

Avg 19-20% 20

5 10 0

J F M A M J J A S O N D J F M A M J J A S O N D

-5

-10 2012

-10

2013

2012

2013

-20

8 | Momentum | March 2014

Momentum_March 2014.indb 8

3/11/2014 8:03:43 PM

Mining and coal output Mining output grew marginally by 0.4 per cent in December 2013 against a negative growth of 3.1 per cent in December 2012. The mining sector, with a weight of about 14 per cent in the IIP, contracted over the year mainly due to low iron ore and coal output. Even though Karnataka has lifted the ban on mining, the Supreme Court kept the ban intact in Goa. All hopes are now pinned on the Supreme Court Committee report on the fate of iron ore mining. Coal production contracted by 0.6 per cent in December 2013 against a negative growth of 1.8 per cent in December 2012. The drop can be attributed mainly to the poor performance of the state-owned coal mining company, Coal India Limited (CIL). Cumulative production over January-December 2013 stood at 559.4 million tonnes per annum (mtpa) against 557.8 mtpa for the same period last year. Coal production in December 2013 stood at 53.7 mtpa. At least 41 coal blocks can be de-allocated after review as informed by Government of India to the Supreme Court.

Total Mining Production Growth

Coal Production Growth

(Pending) In %age

In %age

Avg 1-2%

0 Avg 10-11% J

-5 0 J F M A M J J A S O N D J F M A M J J A S O N D 2012

2013

-10

2012

-10

2013

Consumer goods Consumer goods production contracted by 5.3 per cent in December 2013 against a negative growth of 3.6 per cent a year ago. Factors like high inflation and interest rates have eroded disposable income of consumers across the country, forcing them to cut back on their discretionary spending. This, in turn, has affected the production of consumer goods. Consumer durables registered a negative growth of 16.2 per cent in December 2013 against a de-growth of 8.1 per cent in December 2012. This was the eleventh consecutive month of contraction mainly due to falling production numbers of computers (-25.9 per cent), telephone instruments (-39 per cent), gems and jewelry (-303.3 per cent) and so on. Consumer non-durables output expanded marginally by 1.6 per cent in December 2013 against a negative growth of 0.6 per cent a year ago.

Consumer Goods Growth

Consumer Durables Growth

In %age

Consumer Non Durables Growth

In %age

5 Avg: 3-4%

Avg: 2-3%

-5 J F M A M J J A S O N D J F M A M J J A S O N D

-5

-10

J F M A M J J A S O N D J F M A M J J A S O N D

-15 2012

2013

2012

-25

J F M A M J J A S O N D J F M A M J J A S O N D 2012 2013

2013

-5

Analysts expect a slow economic recovery in the second half of 2014. A lot will depend on how the global economy expands and the outcome of India’s general elections. A stable new government would be positive for the economy. yz

March 2014 | Momentum | 9

Momentum_March 2014.indb 9

3/11/2014 8:03:43 PM

Highlights

Spreading out BharatBenz dealer network to cross 100 locations in 2014

aimler India Commercial Vehicles (DICV) is targeting to expand its fully operational dealer network. This will make DICV’s dealer network the most modern and robust among truck manufacturers in the country. Already, 71 dealership facilities across the country are operational. “We have been rapidly expanding our network across the length and breadth of the country. Our philosophy is to provide the customer with state-of-the-art aftersales service that ensures not just easy reach but proactive service. Our dealerships,

while providing focused sales consultancy will ensure that the customer’s trucks are delivering maximum value to his business. Our goal is to ensure that our customers feel empowered by associating with BharatBenz," says V R V Sriprasad, Vice President, Marketing, Sales & After-Sales, DICV. A well-trained sales consulting team at all dealerships provide the customer with the right choice of trucks, finance and service packages. The dealerships offer fast service with well-trained service personnel, advanced equipment and diagnostic processes. This is also strengthened by the

availability of 24/7 mobile service vans (see box) that ensure the reach of service to any point within a four-hour period. The importance of the driver is clearly

recognised and to make drivers comfortable while their trucks are being looked-after, there are "driver stay rooms" (see box) at every dealership. yz

Special services Mobile service vans

Driver stay room

Every BharatBenz dealership is equipped with a Mobile Service Van or MSV to attend on-road breakdowns and perform on-site jobs. MSVs are targeted to reach a breakdown site at the maximum of 4 hours and put the vehicle back on the road as soon as possible. BharatBenz uses light duty trucks — either the Tempo Traveler or BB 914R (proposed for new dealerships) — for the purpose of MSVs that are transformed into mobile workshops fully equipped for all sorts repair work. All MSVs are completely standardised in terms of design and branding. Self-contained for repair needs, MSVs have all major equipment, including air compressor, workbench, 2T crane, generator for power supply, grinder and all other necessary hand tools with tools rack. They are fully equipped to change the heavy parts like the engine on the breakdown location if required. They also have a water wash pump to service the vehicle/ aggregate on site to proceed with inspection. All MSVs are fitted with a foldable canopy and flood light to take on repair tasks in hot sun as well as during night. MSVs can accommodate one technician cum driver and two other technicians in the front cabin. For productivity purpose, an MSV is considered as a work bay in the Daimler Mobility Services (DMS) system.

The concept of a driver stay facility at dealerships was developed at BharatBenz as the driver needs to rest while the repair job is in progress. He also needs a place to stay the night if the job is not completed the same day. Thus, BharatBenz has equipped all its dealerships with a driver stay room that is air conditioned and furnished with beds, cots and pillows where drivers can rest and relax while the repair work is on. The stay rooms are located along with a customer lounge that has a waiting hall with comfortable couches where drivers can read magazines and watch TV. The lounge has a viewing gallery too, from where drivers can watch their trucks being attended to by service technicians. The facility is attached with a wash room. Such stay rooms save the lodging expenses of drivers who can directly access the stay facility irrespective of working hours of the dealership.

10 | Momentum | March 2014

Momentum_March 2014.indb 10

3/11/2014 8:03:44 PM

A culture of

learning Q

uality training of employees and various stakeholders is a critical component of business development at BharatBenz. World class training programmes developed at Daimler serve not only as catalysts in improving performance but also take service standards to a newlevel. A key focus is to impart training to the various stakeholders at all levels. For instance, field sales team at the employee level; sales staff, body building experts (exclusive persons for body building) and master drivers at the dealer level; and customers’ drivers, local body builders, financiers and insurance companies at the market level. Training of such diverse stakeholders groups had previously been nonexistent in the country. Body builders at the dealer and market levels had never received such

formal industry training and are unfamiliar with many standard practices. Similarly, training of drivers in understanding the vehicles, leveraging vehicle features to enhance performance, enhancing fuel economy on different terrains and so on is unheard of in the Indian context. In 2013, BharatBenz conducted 90 sales training programmes. These included 35 field training programmes called emPower, 15 induction training programmes at the DICV plant, 21 refresher programmes for dealers and 19 wholesale training programmes. While 490 salespersons were trained across the country through the emPowerprogrammes, 249 and 235 salespersons were trained through the refresher and induction training programmes respectively. The wholesale training programme trained 264 professionals.

Training is at the heart of BharatBenz’s corporate philosophy. Here’s how various stakeholders at different levels are trained

In the field of body building, 13 training programmes were conducted in 2013 which trained 200 people. These included 149 body builders from across the country and 30 exclusive body building experts at various dealerships. Twenty-one sales persons at DICV were also trained about the different aspects of body building. The guidelines for body building training have been developed jointly with the R&D team of Daimler. The trainers for the programme themselves go through exhaustive training which is specially given by the R&D/ product team. At the market level, body builders are identified from the field and invited to various dealerships and properly trained. Dealership principles were also trained about the products to drive their sales team with passion and conviction. Twenty-

five dealer principles were trained over the year. Exhaustive training sessions for drivers, too, have been going on at a brisk pace. BharatBenz introduced the concept of “Master-drivers” to establish the vehicles’ performance from a maiden trip and parallelly train customer drivers on correct driving practices for BharatBenz trucks. BharatBenz trained a total of 2,337 drivers at different levels. These include 315 master drivers at both DICV and the dealership level. These master drivers along with expert trainers then trained 2,202 customer drivers. Effective training of all stakeholders is an integral part of Daimler’s corporate philosophy. These programmes will continue to gain momentum as the company expands its network far and wide across the country. yz March 2014 | Momentum | 11

Momentum_March 2014.indb 11

3/11/2014 8:03:47 PM

World of Daimler

FUSO’s

eco drive Mitsubishi Fuso Truck and Bus Corporation showcased its latest fuelefficient and environment-friendly vehicles at the Tokyo Motor Show

itsubishi Fuso Truck and Bus Corporation (MFTBC), an integral part of Daimler Trucks, took the wraps off its new Canter Eco Hybrid ‘Canna’ light-duty truck at the 43rd

Tokyo Motor Show recently. The new fuel-efficient truck features cutting-edge hybrid technology and a design concept that will appeal women professionals in the transportation business. MFTBC, one of Asia’s

leading commercial vehicle manufacturers, participated at the Tokyo Motor Show under the theme “Building Together” and highlighted FUSO’s latest innovations in fuel efficiency and advanced environmental

technology. Speaking at the event, Dr. Albert Kirchmann, President & CEO, MFTBC, said, “Our 80-year FUSO heritage and the core of our business have been closely tied to the quality of interaction with our customers and society, and thus, we want to bring further focus on people — building our future together with customers, partners, and everyone connected to FUSO.” MFTBC showcased seven state-of-the-art vehicles at the show, including the all-new FI FUSO light-medium-duty truck, the popular Aero Queen ‘Premium Cruiser’ touring coach, the Canter Eco Hybrid ‘Moving Pit’ service maintenance vehicles, the “Fighter Black Chrome” mediumduty dump truck, and the “Super Great” heavy-duty ‘Fuel Efficient’ truck.

12 | Momentum | February 2014

Momentum_March 2014.indb 12

3/11/2014 8:03:54 PM

Canter Eco Hybrid ‘Canna’ Developed by a project team consisting of nine women core members, the Canter Eco Hybrid ‘Canna’ is designed to appeal women professionals in the transportation business. Canna, a derivative word from “Kannazuki” refers to October — the month of its birth — in the traditional Japanese calendar. The final design of this concept model truck went through an intensive internal selection process by female workers at FUSO looking at a number of design proposals from around the company. Its interior and exterior design both are based on the concept of making trucks more colourful in terms of cleanliness and attractiveness. The interior incorporates more “cute” and “comfort” elements in its inner panel and seat covers targeted at women drivers.

FI FUSO light-medium-duty truck

Super-luxury Aero Queen ‘Premium Cruiser’ coach

This modern, robust and fuelefficient truck, manufactured at the state-of-the-art Daimler India Commercial Vehicles (DICV) facility in Chennai, reinforces FUSO’s leadership in the growth markets of Asia and Africa. Launched in May 2013, the custom-tailored truck is already proving its robust payload and industry-leading fuel efficiency in Kenya, Sri Lanka and Zambia. The truck will be sold through MFTBC’s global network to a total of 15 markets in Asia and Africa in the first phase with further markets being evaluated. The light-medium-duty FI truck is based on Daimler Trucks’ technical platform — it is built on the chassis of a Mitsubishi FUSO’s Fighter medium-duty truck and sports a cabin of a Canter light-duty truck.

The Aero Queen ‘Premium Cruiser’ super-luxury bus manufactured by MFTBCseeks to change the game in terms of comfort on board a touring coach. Compared to its traditional model with 55 passenger seats, the Premium Cruiser with 13 super-luxury seats incorporates a planetarium-like atmosphere with first-class visual-audio comfort. Aero Queen is MFTBC’s flagship product in the bus segment. All its models incorporate the latest safety technologies such as the collision impact reduction ‘Active Mitigation Brake’ system and driver’s attention warning system ‘MDASIII’ as standard.

Canter Eco Hybrid ‘Moving Pit’ FUSO’s so-called ‘Moving Pit’ service maintenance vehicles are always ready for dispatch whenever and wherever help is needed. The eco-friendly hybrid model of ‘Moving Pit’ are fit to deliver whatever help is required in carrying various instruments on board, such as air compressors, generators, welding machines, and engine oil changers. BharatBenz dealerships in India are provided with similar mobile service vans capable of on-road servicing. These vans are not only armed with advanced

tools and spares to carry out difficult repairs, but also with the wherewithal to overhaul the engine and replace the transmission if need be.

Super Great ‘Fuel Efficient Truck’ The newly developed FUSO “Fuel Efficient Truck” realises more than 10 per cent better fuel efficiency compared to the conventional heavy-duty truck model. The improvements in fuel efficiency are through advances other than from power train technologies, such as optimisation of vehicle aerodynamics, lightweight body design, optimised electricity management including solar power generation and lowresistance tires. Selected technologies are being adopted in series production models of the Super Great Fuel Efficient heavyduty trucks.

Fighter ‘Black Chrome’ medium-duty dump truck The Fighter ‘Black Chrome’ incorporates a high performance 6-cylinder, 7.5-litre intercooler turbo engine delivering a robust output for any required application. Incorporating the proven BlueTec® emissions after-treatment system, the vehicle achieves both fuelefficiency and low emissions at the same time. yz

March 2014 | Momentum | 13

Momentum_March 2014.indb 13

3/11/2014 8:03:59 PM

Spotlight

DICV takes the wraps off

new tractors The fuel-efficient tractors deliver top performance in tough Indian conditions

aimler India Commercial Vehicles (DICV) on 31st January, 2014 in Mumbai launched four new BharatBenz models, three tractors and one mining vehicle in the31 to 49 tonnes GVW (gross vehicle weight) segments. These strong and sturdy tractors, namely, the 4023, 4028 and 4928, are highly fuel efficient and designed for superior performance in the toughest of Indian conditions. They are built to stay on the road and work relentlessly, and require negligible maintenance, allowing more trips and better earnings. The tractors are now available through BharatBenz’s fast-growing dealership network across the country. Marc Llistosella, Managing Director & CEO, DICV says, “The tractors with their superior all-round performance and TCO

(total cost of ownership) benefit, enjoy a much greater advantage. The complete experience that the BharatBenz range provides has triggered a substantial transformation in Indian trucking.” With this launch, BharatBenz is now present in all major medium and heavy duty trucking segments. Says VRV Sriprasad, Vice-President, Marketing, Sales & Aftersales, DICV: “Tractortrailers are at the very top of the value-chain in trucking. Hauling heavy goods over long distances, the qualitative aspects in terms of efficiency, reliability, economy and overall TCO benefits become most important and imperative. With all the promised parameters established, the tractor-trailer operators would benefit most with BharatBenz.” A glance into the key features of the new tractors.

More mileage The tractors boast a slew of innovative features and a smart exterior design that ensure more mileage out of each fueling. They have a unitised fuel injection pump system which comes with six individual fuel pumps, one for each cylinder, that inject a precise quantity of fuel at a high pressure of 1800 bar. This ensures better combustion of fuel, delivering unmatched fuel efficiency. The tractors feature a peak torque over a wide range of engine speeds — even at lower speeds torque is high — which reduces the need for frequent gear shifts and thus improves fuel efficiency. A smart Electronic Control Unit (ECU) senses when the engine brake in on and cuts fuel injection into the engine. This prevents the engine from overrunning and helps save fuel.

A turbo charger with a high 1.8 bar boost pressure increases volumetric efficiency and power output. The tractors’ cabins are designed to reduce aerodynamic resistance which helps in lower fuel burning and maintaining the vehicle’s momentum. The engine rpm indicator on the instrument panel features a variable green band which intelligently senses the optimal operating band and gives constant indication to the driver about economical driving. This ensures that the vehicle operates in the most fuel efficient rpm range and is driven at the right speed and gear.

All-terrain specialists The true test of a tractor’s performance lies in its ability to carry heavy loads over steep inclines at optimum speeds with

14 | Momentum | March 2014

Momentum_March 2014.indb 14

3/11/2014 8:04:14 PM

Model and Specifications

4928 TT (6x4)

4028 TT (4x2)

4023 TT (4x2)

Gross Combination Weight

49 t

40.2 t

Model

DE 205 BS3

DE 170 BS3

Max Power

280 Hp (205kW) @ 2200 rpm

230 Hp (170kW) @ 2200 rpm

Max Torque

1100 Nm @ 1200 to 1600 rpm

810 Nm @ 1200 to 1600 rpm

No. of cylinders, Displacement

6 nos., 6373 cc

Model, Type

G131, 9F + 1R, Mechanical, Synchromesh gears

Clutch Type, Diameter

Dry Single plate, 430mm with clutch booster

Chassis Type

'C' section with cross members

Depth x Flange Width x Thickness

288 x 70 x 9 mm

Front Suspension

Parabolic type leaf spring with hydraulic shock absorbers

Rear Suspension

Inverted Semi elliptic (Tandem Bogie) with hydraulic shock absorbers

Semi elliptic type leaf spring with auxillary spring and shock absorbers

Anti-roll Bar

Standard fitment in Front

7.5" x 20" & 11.00 R 20 - 16 PR (Standard)

7.5" x 20" & 11.00 x 20 - 16 PR (Option)

380 / 200 Litres (Additional as option)

Maximum Gradeability

24.5%

26.0%

24.0%

Maximum Geared Speed

90 kmph

Minimum Turning Circle Diameter

16.1 m

13.1 m

5th Wheel Coupling

Suitable for 2" (Standard) / 3.5" (Option) king pin dia

Option Pack

Comfort Pack (A/c)

Suitable Applications

Flat Bed / Skeletal Trailer

Side wall trailer

Flat Bed / Skeletal Trailer

Side wall trailer

Bulker

Side wall trailer

Bulker

Tip Trailer

Truck chassis / Car Carrier

Tip Trailer

Tanker Trailer

Bulker

Wheel Base 3975 mm Tractor

Wheel Base 3600 mm Tractor

Engine

Gearbox

Built to last

Chassis Frame & Suspension

Wheel Rims & Tyres

Fuel Tank Performance

Unique Features

higher fuel efficiency. A much higher power to weight ratio gives the tractors outstanding performance oninclines,thus enabling effortless navigation in hilly terrains even with full load. Their constant throttle valve engine brake ensures better control of the loaded vehicle during downhill operations. The vehicle can easily navigate sharp turns, hairpin bends and narrow lanes thanks to the 45 degree wheel lock angle which ensures the turning diameter is very short.

Low Bed Trailer

Tanker Trailer

High low end torque and Flat torque engine

Constant throttle valve engine brake

Unit Injection Pump

Inter-wheel and Inter-Axle differential lock

Inter-wheel differential lock

ABS as standard fitment

Every component of the tractors is built to bear severe strain. Innovative engineering and design ensure high productivity and reliability as well as comfort for drivers. The engines are designed for higher efficiency and longer life. The fuel injection system with sixindependent unitised injection pumps provides more durability, while features such as inductive hardening at crankshaft journals, noise optimal crankcase and electronic control unit make the engine more reliable. The high power engines enable better pickup and smooth acceleration. The chassis with a higher frame thickness is stiff and built to improve vehicle stability and load bearing ability. The shot-blasted and powder coated chassis frame helps increase surface strength and ensures longer life. While the 40 tonne tractors have a simple balancer type rear suspension that helps to transfer higher reaction on the drive axle, ensuring better traction and hence minimal slippage, the 49 tonne tractors have been provided with multi-leaf tandem bogie suspension that improves stability and load carrying ability of the vehicle. Further, a heavyduty banjo type rear axle ensures strength and durability.â&#x20AC;&#x201A; yz March 2014â&#x20AC;&#x201A;| Momentum | 15

Momentum_March 2014.indb 15

3/11/2014 8:04:15 PM

Tech Talk

1974: The New Generation heavyduty trucks from Mercedes-Benz make their debut

1959: The first short-nosed trucks (L 322) were introduced

September 1959: First crash test at Mercedes-Benz

1972: The first MBtrac 65/70 was displayed at the German Agricultural Association

A universal joint is a joint or coupling in a rigid rod that allows the rod to 'bend' in any direction, and is commonly used in shafts that transmit rotary motion. It consists of a pair of hinges located close together, oriented at 90° to each other, connected by a cross shaft. A typical design of such joint contains a hinge with rollers or balls. These rollers or balls transfer rotational moments and force from one rod to other, but allow for relative angular movements of the shafts. Universal joints are widely used in vehicle propeller shafts andaxles joints, steering column joints and Cardan shafts for industrial applications. Universal joints can be basically classified in threetypes based on design: »» Cross & roller »» Ball &trunnion »» Constant velocity

16 | Momentum | March 2014

Momentum_March 2014.indb 16

3/11/2014 8:04:18 PM

Momentum_March 2014.indb 3

3/11/2014 8:04:20 PM

Momentum_March 2014.indb 4

3/11/2014 8:04:21 PM