Since 2002, growth in domestic car sales in India rose steadily for a decade. Due to this burgeoning growth, Renault Nissan Automotive Private India Ltd (RNAIPL) set up production near Chennai in 2010. The company saw the establishment of its Oragadam facility there as the perfect opportunity to take advantage of this flourishing domestic car market and ramped up capacity to produce approximately 400,000 cars a year.
In order to help achieve its ambitious volume and quality targets, RNAIPL partnered with Wallenius Wilhelmsen Logistics (WWL) in India in May 2010 on two key logistics functions: compound management (including yard space control and car movement) at the Renault-Nissan Chennai plant and inland distribution across the sub-continent.
However, during their pre-delivery inspection, cars being stored at the compound yard showed some damages. Investigations showed that this was most likely caused by the lack of long-term storage maintenance, unauthorized access at the compound and an unpaved yard. In order to address this serious issue, WWL India implemented the My Yard, My Responsibility concept (see fact box), whereby every WWL employee took ownership for a section of the yard.
By 2014, dispatch area “Not-Good” (NG) ratios – which measure damages and defects – dropped from 1.91% in January to 0.02% in September. While good collaboration between RNAIPL and WWL India was the catalyst for the reduction in yard damages, process improvements at the yard were caused by specific initiatives, such as parking the cars for export shipments by vessel to avoid additional movement. The improvements also led to increased delivery performance and reduced process time.