Cargo drone manufacturing ecosystem in India

By: Contributor(s): Material type: Computer fileComputer filePublication details: Ahmedabad Indian Institute of Management 2024Description: 14 p. : ill. ; includes referenceSubject(s): DDC classification:
  • SP2024/3897 SP003897
Summary: To understand the sequence of processes involved in making a drone, from client orders to collecting orders from the suppliers and the assembly line at the plant and final delivery to the client, we have mapped the value stream of the drone industry. Typically, it takes 41 days to complete an order, containing around 11 days of value-adding activities and around 30 days of non-value-adding activities, resulting in 26.5% efficiency for the entire process. The following are the recommendations for the assembly line based on value stream mapping: Avionics and Power Train module integration can be done simultaneously to reduce the time by one day. Part of the reason the plant operates with only 26.5% efficiency is that the inventory just stays there to get processed for the next day. This can be reduced when operating at a scale by running two shifts with additional labor. However, the above processes are managed by skilled workers, who are scarce in India. Hence, to operate at the scale of two shifts, training costs must be expected. In the long term, developing technology with automated integration of various modules and software installments will enhance the efficiency of the plant. Since the way the industry is primarily operating is an assembly line, managing the suppliers is a regular duty that a drone company should involve in. To do it systematically, we have classified the items as strategic, bottleneck, leverage, and non-critical items and identified the relative attractiveness between buyer and supplier. Using this, we mapped the relationship that needs to be maintained with each supplier. The below are our recommendations:
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Student Project Vikram Sarabhai Library Reference Students Project SP2024/3897 (Browse shelf(Opens below)) e-Book - Digital Access SP003897

Submitted by Amujuru Maheswar
Akanksh K

To understand the sequence of processes involved in making a drone, from client orders to collecting orders from the suppliers and the assembly line at the plant and final delivery to the client, we have mapped the value stream of the drone industry. Typically, it takes 41 days to complete an order, containing around 11 days of value-adding activities and around 30 days of non-value-adding activities, resulting in 26.5% efficiency for the entire process.

The following are the recommendations for the assembly line based on value stream mapping:

Avionics and Power Train module integration can be done simultaneously to reduce the time by one day.
Part of the reason the plant operates with only 26.5% efficiency is that the inventory just stays there to get processed for the next day. This can be reduced when operating at a scale by running two shifts with additional labor.
However, the above processes are managed by skilled workers, who are scarce in India. Hence, to operate at the scale of two shifts, training costs must be expected. In the long term, developing technology with automated integration of various modules and software installments will enhance the efficiency of the plant.

Since the way the industry is primarily operating is an assembly line, managing the suppliers is a regular duty that a drone company should involve in. To do it systematically, we have classified the items as strategic, bottleneck, leverage, and non-critical items and identified the relative attractiveness between buyer and supplier. Using this, we mapped the relationship that needs to be maintained with each supplier. The below are our recommendations:

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