REDUCING AN AUTOMOTIVE COMPANYS BoM COSTS BY BENCHMARKING AGAINST TATA NANOS BoM

Objective To reduce the total BoM costs for an upcoming car by benchmarking the BoM costs against Tata Nano Sector Automotive
Working Draft - Last Modified 6/20/2011 4:53:33 PM

The product was broken into smaller components to get their individual pricing

Scope

The costs of each component was compared against the clients BoM to understand the opportunity for cost-saving
The source for each component was also compared to explore alternative sourcing opportunities

Printed

Methodology Result

Interviews were conducted with production team of Tata and its suppliers to understand the product break-up Anonymous interviews were done with senior purchase and procurement officials in Tata to get the cost BoM break-up The costs were further validated through industry experts interviews The research helped the client reduce the costs as well as improve the sourcing and supply chain of materials

SOURCE: RedSeer project

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