Page 60 - DMGT501_OPERATIONS_MANAGEMENT

Operations Management

Notes 2. Around 15-20 per cent more fuel-efficient than the medium cars of the same
manufacturer.

3. Around 25 per cent less expensive than the medium car of the same manufacturer.
We need to look at subcompacts and not compacts. Sub-compacts have further advantages
in terms of fuel efficiency and price over the compacts. Compacts have traditionally been
manufactured by high production volume technology. The manufacturing cost of this
type of vehicle is highly dependent upon the volumes that can in order to reach BEP and
start generating surplus be generated. Sub-compacts do not need to be manufactured in
very large numbers; the sub-compact is, therefore, less sensitive to volume requirements
than other categories of passenger cars.
If volume is not the predominant criteria in the manufacture of sub-compacts, export of
these vehicles is not a very important requirement. An inexpensive, fuel-efficient and
modern car catering to the needs of the middle and upper-middle class can, therefore, be
designed with specifications relating to Indian needs.
It is possible for Maruti to manufacture a small car more closely related to a sub-compact
rather than a compact, which will meet the aspirations of the general public. Specifications
for such a car need to be drawn up in detail so as to incorporate the desirable characteristics
that one is looking for. The buying price should be less than 40,000 for a consumer.
Keeping in view these objectives, draft specifications have been described in the Box
below:

Box 1: General Specifications of a Suitable Sub-compact Vehicle
General description
1. Five seater, four door/five door car with front wheel drive;
2. Kerb weight less than 650 kg. ;
3. Carrying capacity above 380 kg. ;
4. Independent suspension on all wheels;
5. Drag coeff. Less than 0.40.
Performance
1. Specific fuel consumption 180-200 gms/hp/hr.
2. Max. torque of engine (min.) 5.0 kgm.
3. Compression ratio (min.) 9.1 with 83 octane fuel.
4. Power weight ratios (min.)
5. Laden 28 kg. /h.p.
6. Unladen 20 kg. /h.p.
7. Max. speed 10 kmph.
8. Acceleration standing ¼ mile (secs) 22 secs.
9. Fuel efficiency 4.5L x 100 approx. at 90km/h with
83 octane.
Desirable Options
1. Diesel engine, transversely mounted
2. Electronic Engine control.
Contd...

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