Lucas TVS 2011
Technology development
Technology development has been slow in the initial years and improved pace after 1990. The in house R&D set up way back in 1978. Lucas TVS has continuously evolved and ventured into new technology and product domains from time to time.
Technology Management
LUCAS TVS had more than 250 qualified and experienced staff in the Research and Development Division. The New Product Development Process of Lucas TVS is carried out on the basis of concurrent engineering, design for manufacture and assembly, design to target cost, design for reliability, meeting the requirements of TS16949. This NPD process has been developed with the help of Japanese consultants. The requirements of customers are transformed into new products by the Engineering R&D teams.
Product design is carried out using 3D software such as Pro/E, Catia, Unigraphics as required by the customers for easy interaction and on-line design reviews, while designing Lucas TVS products for the engine and vehicle systems of the customers. Computer aided engineering is extensively used for product design and development, through computerized electromagnetic design, motor design, stress and fatigue analysis, optimization of design, reliability engineering, etc. Techniques like FMEA (failure mode and effect analysis) are used extensively to detect potential failures in design and process. Test facilities have been set up in-house. Lucas TVS has set up an extensive benchmarking area for benchmarking of its products with competitors. This helps R&D engineers to keep track of latest techniques being used by competitors and continuously update product technology and quality.
The Head (R&D) is primarily responsible for technology management function. He reports directly to the CEO. The role is at a higher level plays a crucial role in the decision making process. He is responsible for strategic technology planning, initiating new ventures, product upgradation and improvements and new product developments. He looks after the engineering & design function, new developments, tool design. This helps to have an overall control over the major activities in a new product introduction set up.
Lucas TVS employs the autonomous cross-functional team structure called- NPIT (New Product Introduction Teams) for new projects. In the NPIT, people from different functional areas form the team and the team is headed by a General manager designated for the new projects. The team is disbanded after successful implementation of the project. Technology absorption from TA/JV partners is done through short-term visits of Lucas TVS engineers to technology partners.
The industry Lucas TVS operates being technology intensive, technology forms a part of the strategic plan. Both medium term and long term technology plans are prepared for product, process and businesses. Head (Business planning) is responsible for strategic planning & business development.
He works in close coordination with Head (R&D), Head (Marketing) & Head (operations). This helps in integrating the business strategy, technology development strategy and operations strategy in a seamless manner. Specific targets for parameters such as Localization, Quality improvement productivity improvements etc are fixed up on yearly basis.
Business Performance
Lucas TVS has been showing impressing sales performance over the years. Lucas TVS ranks 2nd among the auto electrical component manufacturers in India. Exports contribute about 8% of sales as on 2007-08; it has grown by about 4 times in the last 5 years. Lucas TVS intends to improve it further by 2010.
Lucas TVS has been able to develop several new products simultaneously (distributor, starters, alternators, sensors) for all the MPFI models for major customers within a short time span. The productivity has increased after the single piece flow concept was introduced by Lucas TVS.
Over 70% of the current sales turnover is realized from new products developed by in-house R&D. Lucas TVS was awarded the Golden Trophy for Technology Excellence by Automotive Component Manufacturers Association of India in 2007, among the automotive component manufacturers.
SAP-LAP analysis
Context
Technical collaboration on a select basis and emphasis on creation of a strong manufacturing base
Situation
Lucas TVS is a leader in auto electrical segment and has expanded its product portfolio gradually
A strong manufacturing base and has been able to achieve economies of scale
Emphasis on In-house R&D, to achieve core competency in key technology areas
Process of Technology management
Impressive track record in technology transfer, adoption and adaptation
Emphasis of technology management in corporate strategy
Strong In-house R&D and manufacturing facilities provide the strength for bargaining
TA/JV has been a preferred route for acquisition of new product technology
Cost control by effective implementation of localization programs within specified time frame
Successful project management by forming NPIT (New product Introduction Teams)
Continuous improvement of manufacturing technology by adopting techniques of TPM, TQM
Learning Issues:
Lucas TVS has been able to achieve tremendous growth after forming strategic alliances / joint ventures in different areas
It has been able to plan its Technology strategy well and has been able to align its technology strategy and business strategy.
Technology forecasting and timely implementation of plans has helped Lucas TVS to stay ahead of the competition.
Setting up of green field projects has also helped Lucas TVS to bring in new technology and induce a new culture for betterment of the company.
A highly skilled and motivated workforce has contributed in a big way for success of Lucas TVS.
Parallel strategy of TA/JV and in-house R&D has helped Lucas TVS to address varied customer expectations like low cost (optimized performance) or higher reliability and high performance
Investing in R&D at an early stage has helped Lucas TVS to be able to benefit in terms of garnering high chunk of revenue from indigenously developed products
Recommended actions:
Lucas TVS may explore the option of technology acquisition to develop capability in new technology areas
With increasing demand in the automotive sectors, Lucas TVS may need to look at higher capacity production lines with minimum investment.
Need to continue to invest in R&D for traditional as well as future technologies Expected performance:
With sustained focus, Lucas TVS can become an Indian multinational in next decade.
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Analysis of Technology Management Using the Example of the Production Enterprise from the SME Sector☆
Elżbieta Krawczyk-Dembicka
Procedia Engineering
Volume 182, 2017, Pages 359-365
https://www.sciencedirect.com/science/article/pii/S1877705817312481
Technology Management - Case Studies
https://www.macmillanihe.com/companion/Cetindamar-Phaal-And-Probert-Technology-Management/learning-resources/Case-studies/
Part of the book
Technology Management: Activities and Tools
Dilek Cetindamar, Rob Phaal, David Probert
Macmillan International Higher Education, 20-Jan-2016 - Business & Economics - 256 pages
The Technology Management (TM) discipline has a history of more than 50 years. It is inherently interdisciplinary and multifunctional, and when managed correctly it can deliver a decisive competitive advantage.
https://books.google.co.in/books?id=gG2eCwAAQBAJ
A simple case study on core concepts of technology management. HP is the firm under study.
Jul 24, 2009
https://www.slideshare.net/divi.lekha/a-case-study-on-technology-management
2005
https://pubsonline.informs.org/doi/pdf/10.1287/ited.6.1.13
Phaal, R., Farrukh, C.J.P. and Probert, D.R. (2001), "Technology management process assessment: a case study", International Journal of Operations & Production Management, Vol. 21 No. 8, pp. 1116-1132. https://doi.org/10.1108/EUM0000000005588
