Shri Vile Parle Kelavani Mandal’s

Narsee Monjee College of Commerce & Economics

(Autonomous)

Bachelor of Management Studies (BMS) Programme

2020-21

FY/SY/TY BMS Semester I/III/V Division A/B

Course Name:
Project Title:

Submitted by:
Student’s Name SAP ID Roll No
Khushi Agrawal 45401190007 B005
Vanshika Agarwal 45401190005 B003
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Student Name: Khushi agrawal Sign:

Student Name: Vanshika agarwal Sign:
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 NAME: Vanshika Agarwal
SYBMS B003

TATA NANO: A TRUE VALUE ANALYSIS & ENGINEERING

On January 10th ,2008, Tata Nano, the world’s cheapest car was launched and since then Tata
Nano has evoked unprecedented interest in millions of Indians and the international Auto
market.
Consumers are familiar with the falling price of electronic products, televisions and even
passenger cars, but the launch of Tata Nano at a price of just 1 lakh rupees was a shocker was
everyone.
How can a car cost less than a good quality motor scooter in Europe?
The credit goes to implementation of indebt value analysis and engineering.
Ratan Tata explains his vision of replacing the use of two wheelers for a family of four with
the introduction of People’s Car of India for a safe, affordable, all whether form of transport
for such a family at similar price range.
There is no profit margin on the base model, a standard profit could only be derived from the
deluxe version with A.C.s, electric window, colour coded bumpers and other options.
Indeed, Nano will be inevitably be safer than a scooter or motorbike with a father driving, his
child standing in the front, and mother sitting behind holding a baby.
The car design team looked at the alternative ways of constructing a vehicle. Many concepts
were explored and inspiration has been drawn from various existing small cars all over the
world.
Grish Wagh, then the head of Small Cars project of Tata Motors headed a team of around 500
people in order to design and bring into reality “Tata Nano” over a period of 4 years.
Although some of the production processes may seem low technology but there has been
involved a great deal of digital analysis during the designing and development stage”
The cost of the car has been reduced not by compromising at the quality, performance and
safety but chiefly through design, technical innovation, reducing advertisement cost,
improving supply management and by reducing the volume of the car itself that is the
dimension of the car was 3.1 meters long,1.5 meters wide and 1.6 meters high which can
comfortably occupy 4-5 people. The compact dimension was designed in order to cut down
costs, as smaller the vehicle, fewer will be the materials required for the construction
especially at that point of time when the cost of steel and other metals were sky rocketing.
The door handle of the car itself involved 70% less parts than one of the cheapest European
cars.
Conventional engines are made from cast iron adding to the weight and the cost of the car. A
smaller light weighted car can be fitted with a light engine.
 NAME: VANSHIKA AGARWAL
SYBMS B003
The clean sheet of paper approach enabled the company to use production technologies that
were appropriate to the Nano’s specification and projected volume, it is reported that hydro-
forming is being used for tubular structure and roll forming in place of stamping.
The manufacturing team also introduced “poka-yoke”, a Japanese term for mistake proofing.
The idea of designing, developing and manufacturing along with timely completion and
delivery wouldn’t have been a reality if Tata Motors would not have switched to Digital
manufacturing processes that is automating the processes in product design and product
engineering, as it resulted in reducing time to market passenger cars by a minimum of 6
months. This strategy helped in improving performance and efficiency and reducing costs.
Another area where a critical weight was saved, both physically and dynamically was by
adopting and using tubeless tyres manufactured by MRF who are single source of suppliers to
them. Given the lack of a tube in each wheel, a total of two kilograms was saved from tyres
alone.
The car also attracted customer base of Maruti Suzuki due to its price advantage and also
since it had more inner cabin space due to its height and comfortable leg room along with
other safety features like resistant doors, seat belts, strong seats etc.

Along with this, its safety performance exceeds regulatory requirements in India. Its emission
performance as well exceeds regulatory requirements since it has a lower pollution level than
a two-wheeler being manufactured in India.
The high fuel efficiency also ensures that the car has lower carbon emission thereby
providing the twin benefits of an affordable transport with lower carbon footprint. Along with
this there is no wing mirror on the other side since people usually drive on the right side in
left – handed car, therefore mirror only at the driver’s side. There is Only one wiper which is
essential for the driver instead of 2. Also ,there is absence of ventilation system or an
integrated sound system. None of the models of the Tata Nano has rear AC vents.
A modular design revolution:Tata Nano is constructed of components and parts that can be
built and shipped separately to be assembled in variety of locations.
 NAME- Khushi Agrawal
SYBMS B005

The company implemented various other innovative designs and changes in order to achieve
its objective of low costs and high value car such as:
• No hatch: The non-opening hatch provides cost reduction as no costs in terms of beading,
hinges and locks were incurred.
• Small wheels with 3 lug nuts mounted: Small wheels are lighter, which positively impacts
economy. Further, these wheels were mounted with only three lugs nuts instead of 4 lugs.
They also introduced the concept of stylien steel wheels which gave its wheels a
differentiated look without using the expensive alloy wheels
• unassisted breaks with remote locks , no crash safety settings, glove box and airbags.

Tata nano interior and exterior

• lighter engine and its placement: engine is made from aluminium instead of conventional
iron thus making it lighter and cheaper, also it being placed at the back puts less pressure on
the steering systems.
• usage of regular bulbs instead of conventional lifelong bulbs • the ribbed (or swaged) roof
structure of tata nano allowed it use metal sheets of thinner gauge with an added benefit of
stiffness reducing both weight and cost of steel.
• Without compromising on the driveability, major gains on the fuel efficiency were
achieved, a multi-point fuelling system and also the electronic management system was
developed which ensured consistent and precise fuel delivery along with optimized spark
control, resulting in
 NAME- KHUSHI AGRAWAL
SYBMS B005

the consumption of 623.6cc engine. The engine displaced the earlier 580cc engine which was
inadequate in driveability and fuel efficiency
• Position of battery under the driver’s seat helped in balancing the weight and the radiator
placement at the right side of the rear end ensured good placement of the ancillaries from an
ease of operation point of view.
• Usage of right amount of plastic for covering the surface area in the cabin which saved the
cost of welding and screws and the architecture of the seats with optimised cushioning also
aided in reducing costs
• Adding to that, the air intake manifolds which supply the engine with the air it needs for
combustion was traditionally made from aluminium, it was however replaced with Ultramid
which leads to 40% weight saving leading to better fuel efficiency and lesser emission.
• The speedometer is placed in the centre of the dashboard over the air vents, not behind the
steering wheel, due which it’s possible to build it with fewer parts.
• Tata engineers also redesigned the suspension to eliminate actuators in the headlights which
are used to adjust the angle of the beam depending on how the car is loaded in order to save
$10.
• In place of the solid steel beam that connects steering wheels to axles, a hollow tube or
steering shafts was used.
• Furthermore, in order to minimise the tooling and production costs they eliminated power
window.
• It has a strong wheel bearing which is enough to drive the car at 72kmph and would wear
out quickly in case of crossing the limit
• Plastic exterior parts such as door handles and bumper of the standard model are not painted
• Also, around 90% of the car components were outsourced with around 75% to a single –
source supplier which received high-volume commitments and long-term contacts in return
for even lower component prices
Conclusion: While developing tata nano the team had three main objectives, first it had to
make it economically feasible, second it had to meet all the cohort of safety legislations along
with emission protocol and finally it had to meet accepted norms. Good design played an
imperative role in making this cost-effective automobile a reality. Its design was aimed at
reducing cost and weight, maintaining speed and ensuring safety.

Value analysis
After the failure of tata nano, tata motor tried to give new life to the nano by bringing it back
on the car buyers’ radar after implementing certain changes.
 NAME- KHUSHI AGRAWAL
SYBMS B005

The Tata Motors’ GenX Nano which was its third attempt after nano twist has the most
affordable AMT surpassing Maruti’s alto K10 with a fully functional boot at the rear end and
an openable tailgate. The boot is around 110 litres in the manual version while 95 litres in the
automated version. This was done after the company realised that the customers were let
down by the small luggage compartment in the bonnet, which only had essentials such as
spare wheel and fuel cap
The Nano GenX also revamped its interiors with new digital instrument. The music system
has a Bluetooth support for phones and essential like AC was installed in the car. The cabin
quality and features are also said to be improved as well as the seat material.
One of the limitations of the earlier model was the obvious noises it produced interior as well
as exterior. The Tata Motors have worked on this prospect and made improvement in order to
facilitate vibration free cabin.
Tata Nano will also open with an all-new power steering. Tata offered the power steering in
the nano twist for the first time but the responses were slow, therefore tata gave this model a
more smooth and responsive steering
Apart from this the nano will also give better mileage, better engine refinement and will come
wit improved structural rigidity.