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  • Cost reduction brainstorm for European OEM manufacturing in India

    14 May 2013

    Recently Tata Steel conducted a cost reduction exercise on two vehicles built by a European OEM in India. A total of 69 ideas were generated that led to significant savings per vehicle whilst maintaining the performance of the steel structure.

    Most of the ideas are to be incorporated in the internal cost down program of the OEM. Tata Steel is in the process of material homologation with the OEM, with the expectation of sourcing material for these vehicles in the near future.

    The aim of the workshop was to generate ideas to reduce cost through localization, because the OEM currently imports the sheet steel form Europe or South Korea which is not a cost effective solution. The collected ideas enable all of the panels required to make the car to be made from locally sourced steel sheet that could be made the same and not have any reduction in performance. The brainstorming session was held amongst fifty engineers from the OEM, the main stamping contractor and engineers from Tata Steel.