Stellar Auto Ltd.

Case Solution

Anshuman Tripathy, Prashant Chintapalli
Indian Institute of Management-Bangalore ()

Stellar Auto Ltd. (SAL) is upgrading its current Galaxy product to the Galaxy X. At 20% off the current Galaxy model, Galaxy X is expected to generate approximately 26,000 annual sales. To ensure financial viability, SAL plans to increase local content from the current 12% on Galaxy to 75% on Galaxy X. To meet sales requirements, SAL plans to operate its plant at a rate of 120 cars per day for 236 days. Year, which translates into a capacity of 28,320 cars / year. Feasibility studies have shown that this goal can be achieved with the current structure in body shops and paint shops, but cannot be achieved with current regulations in the final assembly area (FAA). FAA comprises 84 workstations in the three areas of Trim, Chassis and Final (assembly and test). To meet increasing production requirements, it was necessary to expand the capacity of several assemblies for which there was no space on the line. The matter was made even more difficult by the fact that since the Galaxy X was introduced in 6 variants, a lot of space was also required to store inventory. After detailed analysis and negotiations, the last open point was the assembly of the cockpit, which the supplier Instruments Sophistiques D’auto (ISD) approved. The cabin assembly will be installed at FAA Station 9 and cannot be moved to a later station. Therefore, SAL had to design a system together with ISD to manufacture the cabin assembly in ISD and deliver it to Station 9 in the correct order at the right time. The design of the system required the determination of several factors. This case study identifies and determines the various system parameters required to design such a system.

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