Auto Component Manufacturing Research Articles

Adoption of Industrial IoT (IIoT) in Auto-Component Manufacturing SMEs in India

This article investigates the adoption of Industrial Internet-of-Things (IIoT) in Auto-Component Manufacturing SMEs (ACM SMEs) in the context of a developing country like India by using the Technology-Organization-Environment (TOE) framework. This research surveyed Information & Communication Technology (ICT) officers, managers and owners of 320 ACM SMEs in India using a structured questionnaire to understand the adoption of IIoT. The primary data was analyzed using the PLS-SEM technique. It was found that IIoT expertise, IIoT infrastructure, relative advantage, compatibility, cost, security, organizational readiness, top management support, competitive pressure, and support from technology vendors are factors that affect the adoption of IIoT. This article considered organization size as the control variable. The results show that it does not have a significant effect on the adoption of IIoT. ACM SMEs are one of the important sectors adopting IIoT. This article provides valuable insights to their managers and IIoT vendors. It also suggests key inputs to the government officials involved in the ‘Make in India' initiative of Government of India (GoI) and Ministry of Micro, Small and Medium Enterprises (MSME).

Onsite generation system sizing for manufacturing plant considering renewable sources towards sustainability

Onsite generation system with renewable sources for manufacturing plant is considered a critical alternative energy source that can improve the sustainability and resilience for manufacturers. The optimal sizing for all the components of the onsite generation system under the variations of the uncertain energy demand from manufacturing plant plays a critical role in achieving a cost-effective operational mode. In this paper, a Mixed Integer Non-Linear Programming optimization model is proposed for sizing the capacity of onsite generation system with renewable sources and battery energy storage system for the manufacturers considering the energy loads from both manufacturing system and HVAC system in a typical manufacturing plant. An integrated simulation model is used to capture the variations of the plant-level electricity demand including both manufacturing and HVAC systems so that it can be used as the input to the proposed optimization model. Both linearization and meta-heuristic solution strategies are discussed and compared when solving the proposed optimization model considering both solution quality and computational time. A case study employing the relevant data of a real auto component manufacturing plant as well as the data of the renewable sources in the Chicago area is implemented to illustrate the effectiveness of the proposed model.

Optimal sizing and planning of onsite generation system for manufacturing in Critical Peaking Pricing demand response program

Onsite electricity generation system in manufacturing has been traditionally considered an effective backup energy source to support the manufacturing operations when external power is not available due to natural disasters and/or power blackouts. Recently, with the increasing concerns of climate change and environmental protection, the contribution of using onsite generation system (OGS) to the manufacturing end use customers when they enroll in specific electricity demand response programs has also been gradually recognized. In this paper, we investigate the cost-effective OGS sizing problem for manufacturing practitioners when participating in Critical Peaking Pricing (CPP) demand response program. A Mixed Integer Non-Linear Programming (MINLP) formulation is proposed to identify the optimal size and utilization strategy of the OGS, as well as the corresponding production plan of the manufacturing system to minimize the overall energy related cost. Linearization strategy and metaheuristic algorithm are discussed for solving the proposed formulation with a reasonable computational cost and a good solution quality. A case study based on a real auto component manufacturing system and an existing CPP program is implemented to examine the effects of the proposed model. The results show that when utilizing the OGS appropriately sized, the total electricity related cost of the manufacturing system can be significantly reduced when participating in the CPP program.

Future of Electronic Vehicles in India: Review and Scope

The global automotive industry is on the verge of disruption. Digitization, increasing automation and new business models has revolutionized other industries, and the automotive industry will be no exception to such a revolution. The Indian automotive industry has started to experience the effects of this global disruption. This paper outlines the importance and imminence of the disruption, the drivers of electric vehicle penetration and the implications for all stakeholders, especially auto component manufacturers. Acknowledging the upcoming disruption and reinventing the business accordingly is the key to managing the changes that lie ahead.

Application of DEMATEL approach to identify the influential indicators towards sustainable supply chain adoption in the auto components manufacturing sector

The problem of industrial pollution has increased globally at presently. Countries across the globe are aware of the concept of sustainable implementation in industries from a local to the global level to reduce pollution. Recent research supported this by focusing on Small and Medium Enterprises (SMEs) rather than Multinational Corporations (MNC). Sustainability development is a key to ensure control of the hazards and pollution in traditional activities. In India, many SMEs are involved in manufacturing varied products and services for customers. The auto component manufacturing sector is playing as an important role in the Indian economy by creating numerous job opportunities. Based on this, researchers gave special attention to auto components SMEs in sustainable development (SD) because of pollution which harms the environment. Analysis of SD is an essential activity for industries to ensure environmental improvement. Analyzing the indicators for SD helps confirm the development of sustainability in industries. However, analyzing the indicators for SD is a challenge for managers and needs detailed analysis and significant effort. Indicator analysis is a vague concept for managers who lack alternatives to evaluate SD in their industry. The aim of this present paper is to develop a set of measurement indicators for SD from literature. This paper, with the help of discussions with experts and Decision-making Trial and Evaluation Laboratory (DEMATEL) methodology analyzes sustainable development indicators in the auto components sectors. Fifteen SD indicators were considered for this study from a relevant literature background. These SD indicators indicate the industries’ sustainable development. Based on their interest, a questionnaire for this study was circulated among 35 leading auto components manufacturing SMEs in North India. This study will identify the influential indicator for SD based on experts' judgments through a pairwise comparison matrix. The results from the study clearly states that Indian auto component manufacturing industries believe that among the fifteen listed indicators, carbon management indicator helps in measuring sustainable development. Due to this reason, embedded or embodied carbon (SI2) indicator plays an influential role. Finally, the study concludes with insights about the future path of sustainability performance in a developing country like India.

Examining top management commitment to TQM diffusion using institutional and upper echelon theories

Total Quality Management (TQM) is an enduring approach for enhancing firm competitiveness. Still, there is dearth of research regarding organisational diffusion (post-adoption) of TQM. To address this gap, this research proposes a theoretical model rooted in institutional and upper echelon theories that explain TQM diffusion via top management commitment. We surveyed 300 senior quality managers representing 300 auto-components manufacturers in India to collect data to test the proposed model using variance based structural equation modelling (PLS-SEM). The findings suggest that institutional pressures significantly influence top management commitment to TQM. Subsequently, top management commitment influences organisational diffusion of TQM via acceptance, routinisation and assimilation. Managers can use the findings of this research to better understand how to assimilate TQM so that anticipated benefits can be fully realised.

Performance analysis of agile manufacturing: a case study on an Indian auto component manufacturer

PurposeThe purpose of this paper is to develop a set of key performance indicators (KPIs) for agile manufacturing (AM) and to propose a methodology for its performance evaluation.Design/methodology/approachThe proposed methodology was developed using fuzzy analytic hierarchy process (FAHP) and performance value analysis (PVA) to evaluate and analyze the AM performance. The FAHP is applied to determine the importance of KPIs, and PVA is used to evaluate AM performance.FindingsThe proposed methodology is applied to an Indian auto component manufacturer, and it is observed that there is an improvement of performance along the timeline.Research limitations/implicationsThe proposed approach is generic in nature and can be applied to different agile business environments for performance evaluation.Practical implicationsThis study provides insights into the AM performance evaluation. The managers can establish the impact of each significant area (SA) on AM and each KPI on its corresponding SA by capturing their manufacturing environments.Originality/valueAlthough many issues related to AM have been widely researched, only a few studies have been carried out to quantify, analyze and evaluate the AM performance in the Indian manufacturing environment. The proposed model has the ability to capture the performance of AM along the KPIs to draw fruitful conclusions.

Identify and prioritise the critical factors in implementing the reverse logistics practices: a case of Indian auto component manufacturer

Identify and prioritise the critical factors in implementing the reverse logistics practices: a case of Indian auto component manufacturer

Identify and prioritise the critical factors in implementing the reverse logistics practices: a case of Indian auto component manufacturer

In recent years, reverse logistics (RL) practices have been perceived a great recognition among researchers/practitioners. In this paper, we intend to identify and prioritise the critical factors (CFs) in implementing the RL practices, from the industrial viewpoint. There are 13 CFs crucial in accomplishing the RL practices were recognised on the basis of critical review of literature and experts opinion. These finalised 13 CFs were then analysed to determine their priority by means of analytical hierarchy process (AHP) technique. The AHP technique assists in determining the relative importance of the identified RL implementation critical factors. The findings of the work may help managers to address the related issues in RL implementation. Inputs needed to carry out this research work are taken from an Indian automotive components manufacturing company. The results of the study may help researchers/practitioners to prioritise their efforts to implement RL practices in effective manner. In the end, sensitivity analysis is carried out to examine the proposed RL implementation CFs stability.

Why do Indian SMEs fail and succeed?: insights from auto-component industry

A cursory look at data on small and medium enterprises (SME) in India shows that large numbers of SMEs are failing. This study found fundamental reasons behind this failure besides providing insights into what makes few SMEs successfully manage competition. The data was collected from 517 auto-component manufacturing units in large automotive SME clusters of India. The research highlighted the key role of business planning in Indian SMEs. The SMEs need to proactively manage innovation and quality, improve financial agility, navigate change process and assess global impact. The study also looks at the role of benchmarking, negative attribution and buyer-supplier relationship in sustaining competitiveness by SMEs in post-WTO (World Trade Organization) era.

Prioritization of Tools in Joint Production–Maintenance Environment of Auto Component Manufacturer Using AHP–Fuzzy–TOPSIS

Maintenance of tools is one of the areas of maintenance which has been less explored. While maintenance of machinery has a number of research works to its cause, the same cannot be said for tools. In this paper we have identified the unique maintenance needs of the tools and the challenges it present in case of joint production–maintenance environment especially with regard to efficient allocation of resources. Various methods of maintenance planning are reviewed and their suitability is studied. Due to the resources constraint, prioritization of tools for maintenance becomes important. In this work, we have considered the environment of an auto component manufacturer, where there are a number of tools which needs to be serviced on the basis of time and counter. The approach proposed for prioritization is AHP–Fuzzy–TOPSIS as it provides the best combination of quantitative as well as qualitative parameters. Through the use of this methodology we have presented a final ranking which can be used by management for deciding on the optimum allocation of resources.

Mapping the linkage between Organizational Culture and TQM

Purpose– The purpose of this paper is to examine the impact of Organisational Culture (OC) on total quality management (TQM) implementation in Indian small and medium enterprises (SMEs) in the auto component sector. Specifically; it attempts to propose a model linking OC and TQM for this sector.Design/methodology/approach– Survey method was used for data collection by targeting the whole population of 482 Indian auto component SMEs drawn from Auto Component Manufacturers Association members’ database. Out of 482, 150 completely filled questionnaires were taken for data analysis. Proposed relationships among identified dimensions of OC and TQM interventions have been validated through parameter estimation statistics and goodness-of-fit statistics using path analysis technique of structural equation modelling using AMOS 18.0.Findings– Based on the results, a culture influenced TQM model has been developed. The model demonstrates a linkage between cultural dimensions and TQM interventions, thereby suggesting that OC characterised by “openness”, “confrontation”, “trust”, “authenticity”, “proaction”, “autonomy”, “collaboration” and “experimentation” has a significant and positive impact on TQM implementation.Practical implications– The study presents many practical implications, specifically for quality managers in Indian auto component SMEs. The study has developed a culture influenced TQM model which identifies dimensions of OC that promote TQM implementation. The study also identifies various interventions of TQM in their order of significance, which can be used by SMEs in mapping the critical links between OC and TQM through this model. Thus, findings of the present study will help SMEs in this sector to move up the value chain and sustain their global competitiveness.Originality/value– The study provides a culture influenced TQM model which would assist managers in quality implementation in Indian auto component SMEs.

Reconnoitering the Relationship between the Quality of Work-Life and Organizational Commitment among the Employees Working in Automotive Industries, Ambattur Industrial Estate, Chennai

Chennai city is the hub of Automobile industries, it gives direct and indirect employment to several thousands of people. The prime aim of this study is to discover the relationship between the quality of work-life and organizational commitment among the employees working in Automotive industries, Ambattur industrial estate, Chennai. This study is descriptive and exploratory in nature. The population or universe of the study is restricted to the shop floor employees working in 27 companies having membership in Ambattur Industrial Estate Manufacturers” Association (AIEMA) as Auto components manufacturers. The quota sampling technique is used to select the proportionate number of employees from each auto component manufacturing organization using convenience sampling technique. Only the workers in working in shop floor was included for the survey. The sample size of the survey is 522. The primary data collected was entered and coding, editing was performed to clean the data and avoid the missing values. The data was analyzed through the IBM SPSS 22.0 and IBM AMOS 23.0 software packages. The IBM AMOS23.0 software is used to perform the Structural equation Modeling (SEM), in order to explore the relationship between Quality of work-life and Organizational commitment. The results of the SEM indicates that there is a strong relationship between the quality of work-life and organizational commitment among the employees working in Automotive industries, Ambattur industrial estate, Chennai.

Long-Term Implications of the Burgeoning Informal Labour Hiring in Indian Manufacturing Sector: A System Dynamics Analysis

The manufacturing sector in India, in the last few decades, has witnessed a burgeoning informal labour hiring. The rigidities of the labour laws, the growing global competitiveness, risk of future business downturn and the desire of taming the aggressive trade unions might have encouraged the Indian industries in adopting the path of labour informalisation. The perceived advantages of low wages and high retrenchment flexibility from informal labour hiring may be a myopic view. The deteriorating industrial relation climate in Indian industries and not exploiting full advantage of economies of scale may also be due to the increasing informal labour component in the total workforce. A system dynamics model has been developed in the paper to simulate scenarios with flexible formal:informal labour-mix ratios to analyze the long-term policy implications in the Indian manufacturing sector. Recommendations to prevent a potential disaster due to the abnormal growth in informal labour component in the manufacturing sector have also been made. The paper is likely to provide useful insights to the industry leaders and policy makers in the manufacturing sector and an optimal flexibility mix of formal–informal labour component for a healthy operation. An experiential validation of recommendations is included from an auto-component manufacturing unit.

Redesigning an assembly line through Lean-Kaizen: an Indian case

Purpose – The purpose of this paper is to address the adoption of Lean-Kaizen approach to process improvement by the largest manufacturer of steering systems for passenger car and utility vehicle market in India. The company was facing severe liquidity crunch due to falling customer demand (25 percent lower than forecasted), rising cost of raw material and bank borrowing rates. In order to survive in such stiff scenario, the company systematically deployed Kaizen events and drastically improved their internal efficiency. Design/methodology/approach – The study categorically illustrates the employment of value stream mapping (VSM) to target the areas for Kaizen improvement events. Current state VSM was developed to display the non-value-added activities in the existing assembly process. Future state VSM was proposed. After identifying root cause of wastes using 5 Why, three Kaizen events were proposed. Findings – The current state VSM revealed cumulative inventory of 61 days in the entire process, long distances travelled by subassembly for final assembly (294 meters) and a high defect rate (879 parts per million). After modifying the assembly line using lean strategies, the company reduced its inventory levels by 66 percent, defect rate reduced by 32 percent and achieved other benefits such as reduced equipment, production staff and storage space. These reductions helped the company in saving the working capital and also contributed significantly to its profitability. Originality/value – The study exhibits implementation of Lean-Kaizen approach for redesigning assembly line in an auto component manufacturing unit. The proposed lean strategies are considered to be highly valuable for manufacturer of steering for passenger cars and utility vehicles market.

The Growing Incidents of Labour Unrest, Inter-Union Rivalry and Violence: A Case Study of Veicol

Productive labor force plays a significant role in contributing to economy of a country. This case is a study is about labor unrest in a major auto component manufacturing unit in south India VEICOL. Liberalization had its impact on this industry and company which adopted major ways to cut costs by deploying contract labor. For almost over more than 2 years there was resentment among workers and the Unions had protested against management’s strategy to employ contract labor. The workers resorted to work stoppages, vandalized company property and resorted to violence resulting in the death of the executive of HR in 2009. This is not a single isolated incident as such incidents have become quite common and this case study is an attempt to focus on this issue and identify potential responses to prevent such incidents in future. Incidents like this will certainly send wrong signals to investors across the globe, especially at a time, when the economy is showing signs of early revival and the country is trying to attract FDI. This unprecedented scenario demands that stakeholders gain a better understanding of the ground situation and make far-reaching changes.

Management of Operational Efficiency: Can Indian SMEs Afford Overseeing It

In present era of throat-cut competitiveness, the earning and growth of Indian SMEs has been deteriorating continuously and such companies are bleeding out of financial crunch. This paper examines the influence of evaluating, implementing, and accounting for the various operational efficiencies in an organization which can bring turnarounds in improving the firm’s commercial and financial performances. Fifty companies were scanned for this study using well structured questionnaire as well personal contact program at various levels of organization. The results show that there is a significant correlation between the roles of various operational efficiencies within the organization that can prove to be a turnaround in enriching the commerce of the business entity. Type of corporate culture and organizational commitment do influence on the financial performance of Indian SMEs especially in densely populated auto component manufacturing companies. The propositions of the study have also been addressed. Furthermore, an attempt has also been made to improve agility, visibility, and operational performance across manufacturing. This paper is unique in dealing with the ways and means for applying six-sigma, lean-manufacturing,QMS, TQM culture for assessing business efficiency especially in SMEs in Indian Auto Component manufacturing units. Keywords : SMEs, Operational Efficiency, Financial Performance, Turnaround, Lean-Manufacturing.

Innovation and competitiveness among the firms in the Indian automobile cluster

Automobile original equipment manufacturers are expanding their production bases to emerging economies to expand their market reach and leverage the existing capacity for auto-component manufacturing and provide opportunities for suppliers and subcontractors to build innovation capabilities leading to better performance. The innovation systems perspective and global value chain perspective contributes to develop important framework for evaluating innovation performance and maintain competitiveness of firms. These firms utilize external source of innovation and knowledge spillover externalities at cluster. This study explores firm's innovation capabilities and economic performance in the Indian automobile cluster. Empirical evidence shows that how firms can interact with Innovation Systems and Global Value Chains to build innovation capabilities (technological capability, manufacturing capability, organizational capability, strategic planning capability and marketing capability). The structured equation modeling has been performed to test hypotheses and our analysis shows that how firms' utilize external source of innovation and enhance their innovation capabilities and achieve global competitiveness.

Analysis of the influential pressures for green supply chain management adoption—an Indian perspective using interpretive structural modeling

Presently, industries face tremendous pressure from customer’s environmental awareness and stricter environmental regulations to incorporate ethical and environmental considerations in all facets of traditional supply chain management (TSCM). Green supply chain management (GSCM) is a well-known and established concept to incorporate ethical, environmental considerations in TSCM which satisfies the needs of environmental policies and customers and restricts hazards. The objective of this paper is to identify the key pressures of motivation for adoption of GSCM in TSCM. This paper, initially identified 25 pressures from previous literature sources, secondly influential pressure was determined with help of interpretive structural modeling technique through expert’s opinion. This technique identified five level of influential pressures from recommended 25 pressures based on the impact. The result of this paper inferred that Indian auto component manufacturing industries are facing pressure from government and regulation policies categories. The study result is helpful to visualize which pressure provides more motivation to GSCM practices and which pressure is motivation-less to engage GSCM in traditional activities, especially to maintain environmental regulation policies. This approach was conducted with 16 auto components manufacturing industries in Tamilnadu, South India.

A collaborative framework to minimise knowledge loss in new product development

In today's consumer era, of rapidly shortened product life cycles, new product development has become essential for both growth and survival of organisations. The agility of new product development is governed by the effectiveness and efficiency of an organisation's intelligence and knowledge-management skills. In this rapidly changing dynamic and multi-layered environment, recognising, managing and preventing Knowledge Loss can be a key determinant of success of an organisation. In this paper, we argue for a collaborative network structure within the organisation to prevent knowledge loss in new product development. Based on our first-hand observations via an in-depth case study of six Indian auto-component manufacturing companies, we identify the sources of K-loss. We recommend ways to create collaboration pools that increase flow of information and communication and help mitigate knowledge loss throughout the value chain. We summarise our finding as usable rules-of-thumb for helping senior and middle-level managers develop and leverage collaborative networks for effectively managing knowledge loss for their organisations.