State of Digital Transformation : Spotlight on ZF Group ZF Commercial Vehicle Control System India Ltd

State of Digital Transformation at Indian Auto Ancillaries (H1'26)

My quick take on what they are doing very well:-

👉 One of the strongest performers in my assessment especially on the digital design and digital manufacturing nuances (Advanced MES deployments)

👉 One of the few auto-ancillaries which is implementing digitization initiatives basis a structured framework and not haphazard POC implementations. Their ZF Production System (ZF PS) is a 360 framework focusing on all the engineering value chain levers

👉 Hand-in-hand deployment of IT framework to secure digital MES and cloud deployments

👉 Recent deployment of Vision-AI and ~25% reported gains in productivity on shopfloor manufacturing cells is appluadable though OEE still has a strong improvement space!

👉 While waste management is taken care off well, other after-sales initiatives for sub-vendor and CX management can be improved significantly 

Strong Case : Deployment of digital manufacturing platform at Ambattur plant is one of the strong cases to enable real-time condition monitoring of CNC machines

Outsourcing opportunities in ongoing initiatives:-

1. As mentioned above, OEE levels still have room for improvement as multiple initiatives are yet to deliver as per expectation. This is visible as even with comparably less set of comprehensive initiatives at JBM and Bosch, the OEE levels are comparable

2. While digital design solutions are majorly in-house, my understanding suggests digital manufacturing implementation has space for external vendors across both consulting and implementation

3. Current tracking for cost-accounting, CAPEX management is nascently digital based on Power Apps. Scope for outsourcing vendors to enter account!

4. TQM projects are running strong with ~300 quality control circle projects. Having said that, as per ZF PS framework, the implementation is still nascent

5. See diagram 2, moving from step 6 to step 7 (sustainable manufacturing) is a key priority where consulting and SI partners can enter

 Congratulations to key stakeholders (leadership and Independent Directors) for continuous Industry 4.0 initiatives - Passey, Akash Kaniappan. P Paramjit Singh Chadha Mahesh Chhabria Dr. Christian Brenneke Philippe Colpron

Independent analysis by Ankur Jain, check my website for details : https://lnkd.in/gnnFtq7S

For any queries or licensing needs, please write to me at analystankur@house-of-analyst-ankur.com

ZF Group JBM Group Bosch India Motherson Group Uno Minda Lumax World Gabriel India Limited Amara Raja Group Asahi India Glass Limited (AIS) Schaeffler Bharat Forge Ltd Tenneco Exide Group Exide Industries Limited Endurance Technologies Ltd. Sansera Engineering Limited CIE Automotive India Ltd. Belrise Industries (formerly Badve Engineering) Belrise Industries Limited - After-Market Shriram Pistons & Rings Ltd.