Launch of a Next Generation 7-ton Excavator Accelerated by LTTS

By Sharada Prahladrao

Project Success Story

Client’s Background and Requirements: LTTS’ (L&T Technology Services) client is a leading Japanese construction equipment OEM.  The client wanted to design and develop a highly durable, productive, fuel next generation 7-ton excavatorefficient, next generation 7-ton excavator.  The time-to-market of this product had to be accelerated to gain the winning edge over their competitors.  Further, the client also wanted design innovation to reduce CO2 emissions and running costs and incorporate proven technologies to reduce environmental impact on its equipment.   The client partnered with LTTS for vendor identification and qualification to launch a cost-effective product and to:

  • Assess market requirements
  • Define product specifications
  • Design and validate
  • Accelerate the launch of excavator for the APAC market

Solution: LTTS conducted a market study and VOC (voice of customer) research to understand macro and micro economic scenarios, opportunities, and challenges.  This was done by interviewing over 500 customers and the general public that included end users, rental agencies, infrastructure companies, dealers, senior executives, etc.  LTTS provided end-to-end product design based on product specification and cost targets.  Product testing for performance benchmarking and complete tear down analysis with competitor’s product was done to ensure a superior product.  Other solution highlights include:

  • Value Analysis and Value Engineering (VAVE) for product localization
  • Cost engineering and benchmarking for cost reduction
  • Supplier sourcing for critical components, such as structures, hydraulics etc.

Business Benefits: The client saw visible benefits of partnering with LTTS:

  • Bill of Material (BOM) cost reduction: 16 percent
  • Component Localization: 30 percent
  • Faster turn-around-time helped reduce design and development cycle time
  • Reduced GHG emissions by approximately 23 percent






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