introduction to “sustainability in the automotive industry”

Introduction To

“Sustainability In The Automotive Industry”

C.V. RamanExecutive Director – Engineering Division

Maruti Suzuki India Ltd., India

©2013 Maruti Suzuki India Limited

① Sustainability : What Does It Mean ?

② MSIL Approach For Sustainable Growth in Automotive Industry

③ Expectations From Suppliers

Contents


Sustainability : What Does It Mean ?

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 .

def . “ .. Sustainability


Sustainability : What Does It Mean ?

ECO

NOM

YSOCIETY

ENVIRONMENT

Each one relies on thestability of the other

Anyone can have adverse effects on the other two

Balance of environmental resource conservation, economic prosperity & social well being is key for Sustainable

Development


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)

ECONOMYSOCIETY

Direct & Indirect Impact

OEMs must take care Environmental , Social & Economic issues for sustainable growth

(Everything within the environment is cyclical and connected)




③ Expectations From Suppliers & Policy Makers

Contents


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)

Commitment for Sustainability

Committed to improve the performance of Environment, Society & Economy while doing business


MSIL’s Key Focus area under Sustainability① Environmental Perspective (CO2 Footprint)

② Social Perspective

③ Economic Perspective

a) Focus on Efficient Development Process & Product

b) Focus on Green Manufacturing

b) Focus on Green Supply Chain Operation

a) Focus on Community Development

a) Focus on Road Safety

a) Hedging of Foreign Currency & expensive raw metal

b) Focus on Localization

Foot

on

the

Peda

l(S

usta

inab

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ppro

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Efficient Process & Product to Reduce CO2

MSIL’s Focus Area to Improve Carbon Footprint

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Full Vehicle Virtual Validation Capability

Aerodynamics Analysis

Ergonomics & Layout Analysis

Structural Rigidity Analysis

Crash Worthiness Analysis

Maruti Suzuki has developed the full vehicle virtual validation capability which enables efficient design & process product development

Virtual validation technique helps to reduce carbon footprint

This helps in reducing physical testing



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Vehicle Weight Reduction : Maruti Suzuki’s InitiativeONE COMPONENT ONE GRAM WEIGHT REDUCTION CAMPAIGN

Ultra high-strength steel (980,1180DP)

Bake Hardened steel

Dual Phase steel

High-strength steel (for structural parts)

Hot-stamping( 1500 MPa& above)

Bake Hardened steel

WEIGHT REDUCTION IS A PRIME FOCUS AREA FOR NEW MODELS

This Special Drive has resulted in Weight Reduction of MSIL’s Existing Model

# Review all new & Existing Parts at Design Stage

# Use of Bake Hardened Steel, High Strength Steel, Hot Stamping etc.

http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_c8eRhUxK4As/SubLphafXSI/AAAAAAAAAcc/NmzGoTZKUvI/s400/Maruti+SX4.jpg&imgrefurl=http://maruticarsinindia.blogspot.com/2009/10/new-maruti-sx4-unveiled-in-india.html&usg=__bZOuzlnJaL4F5XCFaCroNOlZbhM=&h=203&w=372&sz=12&hl=en&start=51&sig2=HXwrWI5cBAgBF9g2jnS5XQ&um=1&itbs=1&tbnid=Or07Fq4BcZTfPM:&tbnh=67&tbnw=122&prev=/images?q=maruti+sx4&start=36&um=1&hl=en&safe=active&sa=N&rlz=1G1GGLQ_ENDE365&ndsp=18&tbs=isch:1&ei=nMwVTKmXGMW4rAe6_JCACA


Maruti Suzuki’s Commitment Towards Weight Reduction

Weight Reduction in New Swift…Though it is bigger in Size

Old Swift

Full Model Change

New Swift

Weight: 1010 Weight: 990

Length: 3760Width: 1690Height: 1530

Length: 3850Width: 1695Height: 1530

~ 2 % Reduction in Weight

New Swift is Bigger in Size

Vehicle Weight Reduction : Maruti Suzuki’s Initiative



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FE Improvement

10 % CR

F.E. 2%↑

Powertrain Efficiency

MSIL achieved 2% Low Fuel Consumption If Compression Ratio increased by 10%

Source: MSIL’s Internal Test Result

Focus on Increasing CR (Compression Ratio) to enhance Thermal Efficiency


BSFC

Performance

FE

~10% friction reduction

F.E. 2%↑

~10% friction reduction

MSIL’s Internal Test Result

Focus on Friction Reduction

MSIL achieved 2% lower fuel consumption by 10% Friction Reduction




Improvement in fuel consumption from faster warm up of Coolant & Oil

-20.0%

-18.0%

-16.0%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

% F.E Loss w.r.t fully warmed up

Coolant Temp.

Coolant Temp. T.M. strategy

Oil Temp.

Oil Temp. T.M. strategy

Improvement opportunity

Urban Driving Cycle

Predicted % loss

Actual % loss


Powertrain EfficiencyFocus on Thermal Management of Coolant & Oil


MSIL’s Focus Area for Efficiency Improvement

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Maruti Suzuki saved 157 K ton of CO2 from Alternate Fuel Vehicles till Mar’12

Maruti Suzuki’s Commitment For Lower CO2

0

20000

40000

60000

80000

100000

120000

140000

160000

180000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2006-07 2007-08 2008-09 2009-10 2009-10 2010-11 2011-12

Cum

ulat

ive

CO

2 Red

uctio

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)

Cum

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Sale

s of

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(No.

of U

nits

)

Cumulative CO2 Reduction From Maruti’s Alternate Fuel Vehicles (CNG)

http://www.google.co.in/imgres?imgurl=http://2.bp.blogspot.com/_c8eRhUxK4As/SubLphafXSI/AAAAAAAAAcc/NmzGoTZKUvI/s400/Maruti+SX4.jpg&imgrefurl=http://maruticarsinindia.blogspot.com/2009/10/new-maruti-sx4-unveiled-in-india.html&usg=__bZOuzlnJaL4F5XCFaCroNOlZbhM=&h=203&w=372&sz=12&hl=en&start=51&sig2=HXwrWI5cBAgBF9g2jnS5XQ&um=1&itbs=1&tbnid=Or07Fq4BcZTfPM:&tbnh=67&tbnw=122&prev=/images?q=maruti+sx4&start=36&um=1&hl=en&safe=active&sa=N&rlz=1G1GGLQ_ENDE365&ndsp=18&tbs=isch:1&ei=nMwVTKmXGMW4rAe6_JCACA


Hybrid Technology – MSIL Test Result

Upto 25% reduction in CO2 achieved in Sedan Class Vehicle



MSIL’s Focus Area for Efficiency Improvement

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End Life of Vehicle (ELV)

Design for RRR (Reduce Reuse Recycle) Focus on removal of

Hazardous Elements

Use of Recyclable Materials

ELV Compliance Product Development

MSIL is committed for developing ELV compliance product; though regulation mandate is not formalized in India


Reduction of Hazardous Substances

• 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

What is Hazardous?

MSIL’s Initiative for Removal of hazardous chemical:• 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


Extensive use of Recyclable materials

Headlamp Lens PC

Housing PP

Rear CombinationLamps

Lens PMMA

Housing ASA

Wheel Cap Full cover & Center cover

PC+ABS

Bumper Front PP+EPM

Rear PP+EPM

Grille ABS

Cowl Top Garnish PP

Door Mirrors Housing & Mirror cover

AEPDS

Visor mirror cover ABS

Mirror holder PP

Door Handle PC+PBT

Back Door Handle

Handle PC+PBT

Case PC+PBT

Fender Lining PE

Use of recyclable material is part of MSIL’s core design philosophy

MaterialDescription


• A-Star has received RRR certification– Recyclable rate : 86.9%– Recoverable rate : 96.0%

Product Design for RRR compliancy

By Jan’2015 : 85% or more95% or more

• MSIL’s Internal Design Target For RRR Compliance:

Reuse- Recycle RateReuse- Recovery Rate

MSIL’s Initiative For RRR Compliancy:

SIAM / NATRIP / MoHI Initiative :

Dismantling Unit in Chennai for 4-W & 2-W Vehicles

With Govt.’s Support, OEMs will be able to achieve RRR compliancy for all models in Future

MSIL was part of this Initiative


Full Vehicle Virtual Validation

Vehicle Light Weighting


Improvement

Alternate Fuel Technology

Alternate Fuel Technology

Efficient Process

Efficient & Sustainable Product

MSIL reducing carbon footprint by adopting efficient process & products



MSIL’s Key Focus area under Sustainability

Sust

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① Environmental Perspective (CO2 Footprint)



a) Focus on Efficient Product Development








Manufacturing

Plant Related

Manufacturing Process Related

Focus on Green Manufacturing

A Step Towards Green Manufacturing…………


Promote RRR (Reduce Reuse Recycle) In Bumper shop

To grind, recycle & reuse the rejected molded bumpers or instrument panels

Manufacturing Process Related Initiatives

Granulator is installed.

No waste or scrap generation is carried out for any plastic component.

Rejected Bumper is Granulated, Melted & Reused again in MSIL


Waste Thinner Collection system in Paint shop

1.VOC Reduction by 20%. 2.Less sludge generation & less load on incinerator

Thinner collection

unit


Thinner used to clean robot Nozzles in Paint Shop

MSIL achieved following result after installing thinner collectors:

Earlier thinner used to get mixed with Water & generate VOC-volatile organic compound emission by evaporation into atmosphere

Now thinner is recycled after collection; Less waste or Emission


Installation of friction conveyor at weld, paint & assembly shop

• Reduction of noise level from 95 dB to 85 dB

• Reduction of power consumption by 60% 0

20

40

60

80

100

Noise level Energy Cons.dB

& k

W/v

ehItems

Comparison Chain Vs Friction conveyor

chain

Friction


Chain Conveyor Friction Conveyor

Helped in energy saving & elimination of noise level

Implemented in Manesar Plants & Paint Shops


Advancements in the Features of Casting Shop

Energy Efficient Melting F/c

Waste flue gases used to preheat the ingots entering into the furnace

Two process Decoring m/c99.5% 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


Manufacturing

Plant Related

Manufacturing Process Related

Focus on Green Manufacturing

A Step Towards Greener Manufacturing…………


Maximum utilization of natural resources

• Use of natural lighting

• Use of solar energy• Use of natural

exhaust

Plant Related

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


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.

Initiatives for cleaner & efficient Power Generations1 MW Solar Power Plant will be commissioned in Manesar Plant soon !!!


Plant Related

Maruti Suzuki has achieved zero waste water discharge status (Outside factory premises)

Domestic Use

ProcessINDUSTRIAL

AND dm WATER

STP

ETP

ETP & STP treated water

ET RO

Fresh Water

Waste water Treatment

In 2011~12, 41% of total water requirement was achieved from recycling

STP: Sewage treatment plantETP: Effluent treatment plant


Plant RelatedWater 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


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 !!!


Green Manufacturing

MSIL has achieved reduction in power & Water consumption due to waste minimization & process innovation under Sustainability

Program

Electricity Consumption Per Car

Water Consumption Per Car

Power Consumption per car has reduced by ~30% in the last decade

Water Consumption per car has reduced by ~60% in the last decade



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Green Supply Chain OperationMSIL 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

Plastic Tank is 30% lighter in weight & 100% recyclable

Optimization of Logistic Operation:

• 1st Company in India to manufacture plastic fuel tank

• Already introduced in Swift & Dzire, others are under implementation

• 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 yearContinuous Focus on Optimization; 86%(by Value) of the

Components sourced by the company are located within 100 km radius


Green Supply Chain OperationRail 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

Packing Improvement for Components:

• Parts come in 100% reusable bins

• Paper & Cardboard Packing for butyl tape were replaced with recyclable plastic spools

Similar to these initiatives, MSIL is also exploring various other options to make supply chain operation more

greener

In 2011-12, ~23 Ton of polythene were eliminated & ~20 ton of cardboard were saved

Switch from Road to Rail can reduce emission by 40%


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……….



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Focus on Community Development

Create Heath Awareness in Communities Foundation day celebration At Kasan School, Manesar Maruti employees participating in volunteering program

• Since 2007, MSIL has adopted four neighboring communities in Manesar

• 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.

• MSIL made large investment to improve basic infrastructure & health awareness

Community development is part of MSIL’s CSR Policy. Stakeholder engagement is given utmost importance in the CSR Policy


Educate Driver

Focus on Road Safety

MD with truck drivers for road safety campaignSet 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 !!!


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……

Social Perspective under Sustainability



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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



Hedging of Precious Commodity

Copper Aluminum Precious Metals

MSIL has constituted joint teams of Finance & Supply Chain to explore possibilities of hedging its commodity exposure in copper, aluminum & precious metals.

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



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.!!!!!

Maruti Suzuki is contributing to Indian Economy in its own way


MSIL’s goal under sustainability journey is to establish a ecosystem that are economically viable, environmentally sound and socially responsible.

MSIL’s Sustainability Journey : Foot on the Pedal

ECO

NOM

YSOCIETY

ENVIRONMENT




③ Expectations From Suppliers

Contents


With the unmet demands & larger business needs….

The suppliers have to play a key role !!!

We are doing our best for sustainability…however….

Expectations from Suppliers



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 !

MSIL’s Initiatives at Supplier End

Focus on implementation of “Green System”:


Expectations from SuppliersFocus on enhanced quality system :

QUA

LITY

LEVE

L

Quality Level at different plants of a Supplier

New PlantExisting Plant

Better

GAP

Quality employment is must for sustainable growth

Product Failure due to internal child part wear

Fuel Adulteration in India

CASE STUDY 1 CASE STUDY 2

Missing India Focus(Inadequate testing under Indian condition)

New plants setup by supplier has poor quality level

Enhancement in quality at supplier end is must !


Focus on optimized logistic & packaging operation:

MSIL lost 40,100 parts in 1 month due to poor transportation & packaging quality


• Avoid contents of disposable material in packaging• Establish local automotive components hub near manufacturing facility

Focus on India Specific Design & 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

• Enhance value chain of advance technology components by local manufacturing

Ok Part

NG Part

NG Transportation & Packaging


NCR Region

Kolkata

Hyderabad

Mumbai

Pune

Gurgaon Plant

Manesar Plant Gurgaon Plant

MSIL’s 86% (by Value) Automotive Supplier base are within 100 km range in NCR Region

Current Supplier Base for Gurgaon/Manesar

Last but not the least……Vendor Park near Manufacturing Unit

Shifting supplier near manufacturing( Reduce Vehicular Movement)

Earlier Supplier Base for MSIL,Gurgaon

Supply from different region of India

Supplier base

Bangalore

Chennai

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

Supply to MSIL

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The greatest threat to our planet is the belief that someone else will save it - Robert Swan

Thank YouMSIL is committed for developing healthy & positive ecosystem for India

introduction to “sustainability in the automotive industry”

Documents

green manufacturingb

community developmenta

co2msils focus area

major focus points

talk6maruti suzuki

sustainable development

talk2 sustainability

social economic issues