Name: Syed Ebad Ur Rehman

Roll No: 37
Class: BBA-5th
Research Methodology

Research Problem Statement

Research Objective
To analyze how the rise of the Electric vehicle reshapes the automobile industry and its
manufacturing

Research Question
What challenges and opportunities Inbound and outbound manufacturing?

How do electric vehicles influences market dynamites and accomplishment in the automobile
industry?
How can the automobile industry adept to the evolving landscape influenced by electric vehicle
technologies?

Literature Review
The unborn shift in the automotive value chain ofe-cars will transfigure the nature and
position of logistics collaboration across dispersed shops. The elimination of traditional factors
of the combustion propulsion like combustion machine and gearbox combined with the
emergence of fully new auto modules like battery, electric motor and transmission evolve new
connections within the inbound force chain. Electrification will also mean that other factors
similar as air- exertion units, water pumps, thickets and steering systems will have to be
acclimated Valentine and Bernhart (2009). The combustion machine concentrated auto
assiduity, traditionally producing machines in- house, could lose a major part of the value
creation to electric drive suppliers. According to a request study the manufacturing depth of
vehicle manufacturers in the powertrain member will decline from 51 to 32 for cold-blooded
buses down to 0 fore-cars Klink etal (2009). This generates tremendous new value creation
eventuality for the force assiduity and induces an increased inbound transport volume for the
vehicle manufacturer. It therefore stresses the significance of controlling the costs for
transporting finished modules to the main assembly line. Especially the transport of big and
heavy modules like batteries with high value Favour,s proximate force Bennett and Klug (2012).
One pivotal determinant of unborn inbound logistics processes from a auto manufacturer
perspective is the make-or-buy decision of major modules like batteries, electric motors or
power transmissions. These aren't only precious modules and systems ofe-cars but also
according to their weight and volume the most applicable from a material inflow perspective.
Traditional inhouse modules like machines and transmissions could be outsourced in the
future, which will unnaturally transfigure the value chain in auto manufacturing. Auto
manufacturers traditionally regard the powertrain as a critical part of their inhouse
development and product base. With the appearance of new electric technology, vehicle
manufacturers need to review their core capabilities. This is particularly important as
electrical factors haven't traditionally been a focus area for auto manufacturers Valentine and
Bernhart (2009). The most important question, still, may be which part of the value chain of
batteries will take place in house or out-house.
There are different scripts, which will play a major part for unborn logistics counteraccusations
ofe-car manufacturing. Likely scripts are

• The perpendicular integration of a battery patron and an machine manufacturer in a

league- one suppliers like battery makers will try to secure the value implicit in retaining core
chops, including invention in batteries and in the new features they could make possible.
capability will resettle from the cell- position chemistry to the position of battery pack
systems, including power- and thermal- operation software, and to the electronics optimizings
a battery’s performance in a specific vehicle( Hensley etal., ). In this script cell- manufacturer
will play a pivotal part. They do have significant R&D knowledge for battery chemistries,
which is delicate to transfer to auto manufacturers. The reason is that the complicated
interplay among a battery cell’s core rudiments( similar as the cathode, electrolyte, division,
and anode) determines different aspects of the cell’s performance like power viscosity, safety,
depth of charge, cycle life and shelf life( Hensley etal., 2009). also cell manufacturing does
count for about 50 of total battery manufacturing costs( Klink etal., 2009). This gives battery
manufacturer a dominant power in the unborn value split ofe-car manufacturing. China will
together with Japan and Korea play a major part in battery product Wang and Kimble (2011).
The logistics costs, especially for the heavy and bulk batteries, will have a significant influence
on the locales and total network structure of unborne-carmanufacturing. This will concentrate
unborn force chains on Asian requests. The tremendous growth of the Chinese machine
request with the loftiest position of machine product and deals in the world, will honor China
as a centre ofe-car manufacturing. China has erected a complete value chain with a high
chance of locally produced factors being incorporated into foreign buses produced in China “
Although the electric vehicle assiduity is in its early stages, thanks to its establishment
foundations in terms of crucial raw material lines, battery product and structure for vehicle
manufacturing, China has the foundations to make a analogous value chain of electric vehicles
”Wang and Kimble (2011).
Inhouse counteraccusations of electric auto manufacturing
To bandy inhouse force chain counteraccusations ofe-car product we will define
manufacturing phenotypes

We assume that the logistics counteraccusations are told by the configuration and the
collaboration of the phenotype itself. Logistics is thus contingent upon how manufacturing
operations are configured in terms of the coffers, technology and sequence of operations. This
operations-specific ideal is used to bandy force chain counteraccusations of each phenotype.
Each manufacturing phenotype can be distinguished grounded on the number of buses
produced and the degree of e-car isolation in relation to the classic “ none-car ” types.
Generally, the number of buses produced of a specific model substantially depends on the
positioning of the auto in a low-, medium- or high- volume member. The primary issue that has
challenged the relinquishment ofe-cars, and that continues to be the topmost hedge for a
growing volume affair, is the high purchase price. Yete-cars haven't been suitable to offer a
nicely priced volition to an internal combustion machine machine with a similar driving range.
Heretofore galvanized vehicles are easily deposited in a niche request(e.g. sports buses or
megacity vehicles). The used split in high, medium and low volumes can not be compared to
the mainstream requests where the maturity of motorcars are vended. So the volume of our
delved systems ranges from lower than hundred over to knockouts of thousands produced
buses per time, which is far down from traditional volume buses produced on a large scale.
Government is going to play a pivotal part in prostrating the being ‘ Catch 22 ’ problem of
costs and product volume while product volumes are small, costs remain high, and while costs
are high, the request remains small Wang and Kimble (2011). Besides specialized
restrictions(e.g. limited battery range), political opinions to encourage consumers to acquiree-
cars(e.g. government subventions) will determine unborn product volumes. The degree ofe-
car isolation in relation to standard buses is grounded on the design principle of thee-car.
Generally there are two contrary generalities – conversion and purpose design Kampker
(2012). Conversion design is grounded on conventional auto generalities. Petrol machines are
replaced by an electric motor without changing of the current machine armature. factors
which characterise the look and shape of the auto model remain retained. Being body
structures are also used to modify the powertrain. One great advantage is that the frugality of
scale ofe-cars in design and manufacturing is linked to the mass- pronounced conventional
vehicles. utmost auto manufacturers favoured titillating being models as an original request
entry strategy. This contrasts starkly with purpose design, which develops and constructs a
radical new vehicle, generating a auto that's purpose- erected to the requirements of electro-
mobility. This freedom of design allows more radical inventions and offers new functionalities
and possibilities Freyssenet (2011) Completely- integrated manufacturing Then, all type of
buses (e-cars and none-cars) are produced on the same high variety manufacturing line. factors
and modules can be manufactured at separate side lines, which are also fed into the main line,
to perform the mixed final vehicle manufacturing. The large- scale product system of the
automotive assiduity favours the uninterrupted product of buses with low cycle time
grounded on being technologies. As a consequence reiteration of processes increases
dramatically and reduces manufacturing costs Shingo (1981). A pivotal logistics thing is to
optimise assembly utilisation. In the auto assiduity, capacity utilisation of a plant poses the
topmost fiscal threat and the topmost functional challenge. Logistics thus primarily
concentrate on operating assembly lines at an optimal position, so long as client demand
equals product force. Completely- integrated manufacturing is grounded on the conversion
design conception. Well finagled, large volume none-cars can be intermingled withe-cars,
grounded on the same conventional auto conception. The maximisation of husbandry of scale
in product is frequently combined with husbandry of compass in R&D and support functions(
Abele etal., ). A completely- integrated manufacturing line, in body, makeup and assembly
shop, for all types of buses improves the vacuity of critical labor force and know- how,
further ferocious knowledge exchange, and shortens delivery times between the auto
processing stages. This effectiveness is linked with advanced cost inflexibility where different
auto models can be produced on the same line. The conventional large- scale request vehicle
offers huge sunk costs in product outfit at the machine assembly factory. The full integration
ofe-cars at a single assembly line leads to an increase in the different part figures needed and
therefore has an impact on the force programs of auto manufacturers and the general need
to maintain force inflexibility to remain competitive Berry and Cooper (1999). A completely-
integrated manufacturing phenotype requires late configuration and demands that suppliers
deliver in sequence to the assembly factory. Sequenced in- line force( SILS) is a standard
delivery approach in coetaneous force. In this conception, the entire vehicle assembly process
is dependent upon the timely delivery of factors. product and delivery according to SILS
arrangements puts trustability in focus in such a way that temporal and spatial propinquity
between supplier and vehicle manufacturer becomes of strategic significance Bennett and
Klug (2012). propinquity enables low force, late configuration and also last- nanosecond
variations in the sequencing to manage with planning failures Sako (2006). Where short order
cycle time is only a matter of hours, the supplier must be located in close propinquity to give
the correct modules within tight time constraints Fredriksson (2006). piecemeal from the
conversion design conception one pivotal success factor of a completely integrated
manufacturing is the modularisation of the auto. Vehicle manufacturers can alleviate the
negative impact of product variety on operations performance by using modularity( Salvador
etal., 2002). Modularity means that a auto is divided into lower complex modules with specific
interfaces( Baldwin and Clark, 2000). The use of the modular principle in auto design is nearly
linked to the modularity in manufacturing processes, where functionalsub-systems of the
vehicle can be manufactured singly. The decoupling of manufacturing conditioning through
modularisation has been reported in the automotive assiduity to lead to both effectiveness
and inflexibility earnings van Hoek and Weken (1998). Modularity in assembly implies a
dispersed assembly system, in which some conditioning arepre-assembly done ( of factors into
modules) and other conditioning are final assembly( of factors and modules into vehicles)
Fredriksson (2006). A completely- integrated manufacturing phenotype requires a modularised
auto armature grounded on the conversion design conception. An issue then's the total
integration of electro- related manufacturing operations into final assembly line. E-car
assembly requires specific time- ferocious operations like battery assembly, charging and
control. These technological constraints occasionally complicate a completely integrated
system and favour a incompletely integrated bypass manufacturing.
Contract manufacturing Contract manufacturing is used if the anticipatede-car affair position
doesn't presently meet the conditions for integration in one’s own manufacturing processes
and the degree ofe-car isolation in relation to standard buses is high. Contract
manufacturers( frequently called “ Little OEM ” or “ Tier0.5 ”) produce low- volume and
specialised auto models likee-cars for and under the brand name of the established auto
makers. Traditionally, these companies developed from their engineering business to come
niche auto manufacturers. Contract manufacturers not only fulfil design and development
processes but also take over manufacturing and logistics processes for low- volume vehicles
not only concentrated one-cars(e.g., convertibles, roadsters and sport mileage vehicles). As
flexible and technology experts, contract manufacturers manage niche vehicles and volume
models in peak or decline phases of their lifecycle, generally for several auto manufacturers.
Due to their inflexibility and know- how they can manufacture at this low position more cost-
effectively than the vehicle manufacturers themselves. As a consequence, auto manufacturers
responsiveness increases according to the capability of the manufacturing system to respond
to client requests in the business Holweg (2005). Whereas this advanced inflexibility is
combined with simpler logistics processes for the auto manufacturer this product type causes
a number of logistics conditions for the contract manufacturer. Generally, contract
manufacturers have to deal with different vehicle manufacturers and high figures of
differente-car and none-car models. They've to manage numerous suppliers, part figures,
holders and packaging instructions, which leads to advanced material inflow complexity. In
addition, different auto makers have different communication systems. Each auto maker thus
has his distinctive logistics operation system with certain requirements, which must be
fulfilled on a neutral base. On the other hand, contract manufacturers have to standardise
logistics processes to manage with cost structures. speeding in all material overflows ensures
cost effectiveness. 8 resemblant manufacturing This phenotype is grounded on the purpose
design conception, which develops and constructs a radical new vehicle. This freedom of
design generatese-specific factors and modules withe-specific operations in manufacturing
and logistics. resemblant manufacturing splits up operations betweene-cars and none-cars,
which avoids hindrance between value aqueducts queuing up to use participated coffers.
resemblant manufacturing colorful gradationally from assembly up to body shop. A completely
fractured manufacturing system where assembly, oil and body shop is separated between e
buses and none-cars is according to the low volume of none-cars doubtful to be adaptable. As
long ase-cars remain a niche request, high investment in body and makeup shop lead to
resemblant manufacturing only in the assembly shop. In this casee-car assembly lines are
separate and completely concentrated one-technologies. Investing in a separate assembly line
with separate force processes implies high investment combined with a advanced threat of
capacity utilisation. On the other hand, erecting up product- driven manufacturing layouts
enables more promised and streamlined material and information overflows. Specialised
assembly lines employ common accoutrements , set- up procedures, labour chops, cycle times,
tool and institution conditions, and, especially, work inflow or routing( Schonberger, 1986).
also, speciale-car conditions, like safety instruction for battery running, can be more fulfilled(
Wittek etal., 2012). If the number of producede-cars exceeds a farther profitable threshold in
the future a multi-site product is possible. In amulti-site resemblant product, multiple shops
make the samee-car model. Although this dispersed manufacturing conception decreases
husbandry of scale, it achieves a high position of client propinquity with high request
inflexibility and low delivery times. public conditions on electro- mobility, which can vary
extensively between different countries, can be more fulfilled. constantly, a broader product
footmark enables the auto manufacturer to share in low- cost series product in a low- pay
envelope position. Vacuity of original coffers, similar as social and artificial structures, easy
access to logistics and communication networks and professed workers also play a major part
in position opinions. Another consideration in choosing a position is the actuality of
automotive clusters. They enable propinquity to an established supplier base as well as design,
engineering, operations and logistics know how. In addition, lesser inflexibility in capacity
planning is achieved. Demand variations can be more compensated, contrary to a single- point
product conception where demand oscillations incontinently lead to capacity variations with
negative employment goods. still, auto allocation to shops is confined for specialized reasons,
by the labor force chops available at every position, and because of general policy(
Fleischmann etal., ). The position of ane-car model can change stoutly according to its lifecycle
position. Whilst ane-car can start with a low- volume manufacturing type(e.g., contract
manufacturing) the operations model can transfigure to a middle- and high- volume
phenotype. This implies a flexible split of capacity demand on different product spots. By
analogy to McDonald’s (1986) idea of floating manufactories where factory locales are not
inertly fixed, so that each factory can be dislocated as the request situation changes, amulti-
site resemblant product generates a capacity floating without the high relocation costs of
floating manufactories. Outbound counteraccusations of electric auto manufacturing
Outbound driven aspects bandy the need to set up a network to recharge or change the
batteries and to install an electronic billing system Freyssenet (2011). Concerning the
recharging strategies the installation of a charging structure for supplying the electric vehicles
with power- and the metering structure – to guarantee a devoted 9 billing – requires a high
investment( Ernst etal., 2011). Especially the question of battery recharge versus change
strategy will have a tremendous influence on the logistic structures. swapping heavy and
precious batteries at special service points involves high running, transport and storehouse
costs. The predictable change of technology from internal combustion machine to electric
mobility will further have a high impact on the whole automotive aftermarket. The new
diapason of corridor, which comes on withe-cars, will change the after deals logistics
significantly. Automotive manufacturers and suppliers, which have traditional core capabilities
in machines, clutches and gearboxes have to realign their strategy and identify new business
openings. Extra corridor like exhaust systems with mufflers and centre mufflers are obsolete
ine-cars. likewise electronic factors similar as starters, alternators and energy pumps,
including its detectors aren't demanded ine-cars (Dombrowski etal., 2011). This combined with
longer service intervals induce a massive depression in the trade of spare corridor, which
reduces the profit perimeters in the spare corridor business. The main change motorists are a
dwindling share of mechanical and moving corridor, longservice intervals, an immature battery
technology, lower fresh units and limited occasion for tone- service (Dombrowski etal.,
2011). Auto manufacturers will face radical changes in deals and distribution so that dealer and
service networks must be made ready for the broader product portfolio (Valentine and
Bernhart (2009).