Scorpio Case Study

1854 words - 8 pages

CASE STUDY

THE MAKING OF SCORPIO
Rajesh Jejurikar

A group of young managers working in a cross-functional team seven years back had a critical objective. To evolve the new generation product for Mahindra. They needed to anticipate customer trends, emerging competition and determine the Mahindra response. The ability to have foresight is a key success factor in the automotive industry. The team came up with a concept of what they thought would win. This got presented to the MD - a dream with a price tag of Rs. 600 Crores. And the rest, as they say is history. The story started with a vision. A vision to continue the domination of the utility vehicle (UV) market in India. To be a global ...view middle of the document...

This enables us to create a vehicle that is contemporary and truly world class.

The Scorpio Brand Promise:
Functional benefit: A World - Class new generation SUV with excellent styling, superior performance, car like comfort at a "Value" price. Emotional Benefit: An ownership experience full of Thrill, Excitement and "Power" Relationship: Young, Premium, City Companion Moder n,

A young lean team:
The project Scorpio had just 120 people and their average age was 27. A global major would deploy around 500 people for a completely ground up project of this kind. It also meant that there was very little "baggage" to worry about. Open minds are the prerequisites for innovation.

To deliver a unique and differentiated "promise" to the customers needed us to evolve an innovative Business model.

Low Project Cost:
A project cost of 12 million US Dollars may seem like a lot. But it's a fifth of what a world major would have spent on a like sized project. A typical ground up, new platform project would have cost 500 million dollars. This low cost was achieved by a series of innovative decisions, some of which are as follows: a) The project team was involved in defining the project and customer needs. b) A team of 20 people (designers and manufacturers) were sent to UK to work with the styling consultants The pay back was that, rework on dies was reduced to just 10%. c) The entire team comprising marketing, manufacturing, purchase, quality, design, testing and service were located at one place. d) The vehicle was "designed to Cost". The senior management approved additional cost on any material only if the team compensated by reducing the cost somewhere else. e) We innovated on the relationship with suppliers. Eg : in designing the air-conditioning system, instead of telling the supplier the number of vents required, we conveyed the
27

The Scorpio Business Model:
The Business Model consisted of the following

M M M M

The IDAM process A young, lean team A low project cost Alliances with world leaders

The IDAM process:
IDAM stands for Integrated Design and Manufacturing. It was conceived, working hand in hand with CSC, UK (formerly Lucas Engg.) to streamline the delivery of a world class, zero defect, trouble-free product. A result of our continued customer focus, IDAM gives the customer, the product he wants. To achieve this, we questioned the conventional idea of 'each one specialises in one'. Then turning it upside down, we created teams of people with cross-functional strengths that cover every aspect of product development. From 'Design & Development, Testing & Validation and Manufacturing' to 'Vendor Development

Scorpio Objectives:
To provide the best product package at an affordable price To achieve 20% of the premium UV market in year 1.
BMA REVIEW Mar. - April 2003

temperature drop required over time. f) In sourcing the dies instead of going to one supplier, the company went to multiple suppliers. Critical dies...

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