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    BOSCH INDIA

    INNOVATION BLOWBACK INTO EUROPE

    Some of the biggest breakthroughs are breathtakingly simple and they come from a complete reframing

    of a problem or challenge. In 1993, Apple, under its CEO John Sculley, tried creating a Personal Digital

    Assistant or PDA called Newton that could recognize human handwriting as an input device rather

    than use a keyboard. It failed miserably at the handwriting recognition. The technology was just not up

    to it. They had spent nearly $500 million trying to develop it and had failed. Other companies, too, tried

    to develop a similar handheld device that could recognize handwriting. Nearly a billion dollars spent

    overall in this endeavor went down the drain. Palm Computing was one of the other companies that

    failed. But then Jeff Hawkins, the CEO of Palm Computing, reflected on his failure and thought about

    reframing the challenge. Rather than develop complex software that could enable a machine to

    recognize all kinds of handwriting styles, why not teach people to write in a way that the machine could

    understand? He created Graffitti- a kind of writing that requires users to make modified characters with

    a single pen stroke. Its easy to learn and easy for the machine to recognize. The result was the now

    iconic Palm Pilot which was launched in 1997. It was developed at a cost of $3 million and by 2000 was

    generating revenues of over a billion dollars a year. And all because of a reframe!

    Closer home, a team from Bosch India, the Indian wing of the global engineering giant, the Bosch

    Group, broke industry norms through a similar reframe in a different context. Stringent emission norms

    for diesel engines currently require extensive engine modifications to enable them to interact with

    complex external high-pressure pump that aids in reducing emissions. The team from Bosch India

    reframed this challenge. Rather than make major and expensive engine modifications to enable it to

    interact with the high-pressure pump, why not make modifications to the pump to enable it to interact

    with the existing engine and give the same results?

    Like all great truths, it seems self-evident today but at the time, the challenge of creating a pump

    that could enable an existing traditional engine to meet the rigorous emission norms without

    modifications was seen as so far off the wall as to be almost impossible. No one thought in these terms.

    They only thought about how and when to convince engine manufacturers to modify their traditional

    diesel engines. With stricter emission norms coming in, it only seemed a matter of time. But the team at

    Bosch India began flirting with the idea of creating a pump- since it is the pump or fuel injection system

    that has the greatest impact on emission.

    The key challenge was that it was considered impossible to do this with the existing engines.

    Expensive and extensive modifications would need to be made to the engines. Could the team think

    radically and find an alternate way of doing this?

    They did, and now, existing diesel engines can move to the stringent emission norms of Euro IV,

    V and VI without expensive engine modifications that would cost anywhere from Euros () 3 million to

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    20 million. All it needs is a 20-Euro pump called the PF-45 that can be modified to fit any existing diesel

    engine. And the impact has been tremendous. It was launched in 2006 with expected sales of 70,000

    units in 2007. Instead, 160,000 units were sold according to company sales figures. And in 2010 one

    million units are expected to be sold! The impact on the industry is that many engines can continue with

    the existing design right up to Euro VI- the highest emission norms currently envisaged.

    THE CHALLENGE: THE BEGINNING

    It all began in 1989-90. Bosch India had been made the centre of competence for a particular single-

    cylinder pump called the PF pump used in diesel engines. By 2002, the realization had set in for the R&D

    group that PF pumps would soon become extinct as the world was moving to tighter emission norms

    which required a different type of fuel injection system called the common rail system. PF pumps

    catered to the older kind of engines that could only meet euro II emission norms at best. To go beyond

    would need a high-pressure pump for the common rail system.

    Moving to euro IV and higher norms would necessitate all older diesel engines shifting to

    common rail systems and making extensive modifications to existing diesel engines. The modifications

    would need to be in both the drive and the crankcase, the most expensive part of the engine. These

    modifications, especially in developed economies, could cost anything up to 20 million for the

    manufacturer, depending on the kind and size of engine. This would also mean the end of the PF pump

    In diesel engines, the key component in reducing emission and pollution is the fuel injection mechanism.

    The greater the pressure and timing of fuel injection, the more the diesel is burned off completely.

    Increasing emission norms require increasing pressure in the fuel injection system. Euro II norms could

    be met with around 500 bars of pressure. But Euro IV necessitates reaching between 1400 and 1600

    bars of pressure. Euro V would mean reaching around 2200 to 2400 bars or higher. These are

    tremendous challenges. An increase in every 100 to 200 bars often needs a relook at existing

    manufacturing practices. There are two key dimensions to this challenge: Creating a pump that can first

    generate high pressures of 1600 bars and then withstand the high pressures. The challenges were so

    radical that over the years a different kind of pump itself has been developed-the Common Rail pump.

    The pump is large, has three pumping chambers (pressuring units), a metering unit and a drive.

    Fundamentally, it was a question of survival for the team and production unit.

    Internally, there was also the feeling that Common Rail (CR) is the present and PF is the past.The CR team in India looked at the PF team as a relic from the past. Even the organization was focused

    towards CR, while PF was just about tolerated. There were also questions about the contribution of the

    product development team internally. After all, they were just modifying and tweaking Bosch Germanys

    products. What was their contribution at all?

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    The R&D team of the PF pump group in India, headed by R. Baskaran, deputy general manager,

    product engineering, decided to do something about this. If they could find ways to make the PF pump

    as effective as the conventional Common Rail pump, perhaps extensive engine block modifications

    would not be required. And engine manufacturers could use existing engines but with higher emission

    norm capability, thus saving millions of dollars in development costs. This was especially true for India,

    where were currently on Euro III equivalent emission norms. Once India moves to Euro IV for

    commercial vehicles, extensive engine modifications would need to take place, perhaps leading to

    increased vehicle costs.

    To give an analogy about the scope of the challenge: Look at propeller and jet planes. In the first half of

    the 20th century, propeller aircraft kept improving and getting better and better. They began to fly

    higher, farther and faster. But there was always a limit they could not go beyond in terms of speed,

    distance and height. It needed a jet engine to do this. Similarly, in terms of pressure, there was always a

    limit the PF pump couldnt go beyond. It needed a Common Rail pump to reach there. What the PF

    pump team at Bosch India was trying to do in a way was to make the propeller plane perform at the

    same levels as a jet plane, without the additional costs that a jet plane would entail

    THE ROAD FROM IDEA TO IMPLEMENTATION

    In principle, the PF group had an idea that they could create such a pump. But they would need a

    customer willing to go along with the idea and give it a try. This would also allow Bosch to put in the

    resources required to develop such a pump. They found a customer not in India but in Germany: the

    Deutz group that manufactures diesel engines for customers like Volvo and Renault.

    Deutz was entering a new product category and didnt have a history of using Common Rail

    systems. The trigger was an order that they got from Volvo for medium-duty trucks. They decided to

    give this a try. As Dr Thiemann of Deutz says, they didnt want to make extensive design modifications to

    the existing engine. And when they decided to go with Bosch to co-develop this new pump, there were a

    lot of concerns within Deutz. First, Common Rail systems were new to the company and they had no

    experience in this. Second, they were trying to create an exotic system that was unique. Would it work

    at all? Were they just wasting time and money?

    The Bosch team from both Germany and India managed to convince Deutz that they would be

    able to develop such an exotic system. The R&D, of course, would happen in India as the centre of

    competence for PF pumps was based here. Deutz decided to go ahead and commit to the developmentand also share developmental costs. A development timetable and budget

    Whats fascinating about this team is that they didnt shrug their shoulders and say that its inevitable

    that the world moves from PF to CR as emission norms tighten. They didnt wait for events to overtake

    them and instead decided to take control and do something within their sphere of influence. And by the

    way, how much of a sphere of influence do you think a small group in a category out of fashion would

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    have? They may not have realized at the time, but they had the influence to impact the entire diesel

    industry across the world. How much of an influence do most of us think we have? Many of us feel fairly

    helpless and limited in our ability to make an impact. In reality, we may have far more influence and

    ability to impact the world than we realize.

    was chalked out. The pump would need to be developed by 2005. It was 2002.

    While the developmental timetable had been chalked out, there were organizational, human

    and technical challenges that the team faced. One organizational challenge was that internally across

    Bosch there was a great degree of skepticism and also resistance to the idea of new pump. And as Dr

    Gerhard Ziegler, the VP of engineering application, says, the project had to be kept under the radar in

    the beginning. If it had been very visible, it could have run into internal hurdles. Once the team

    demonstrated that the pump was viable and actually emerged with one, it was brought out into public

    view and the accolades followed, as this was the time at Bosch that a new-to-the world product had

    been developed in India.

    In our experience, when internal hierarchical gravities and turfs are very strong, many innovators go

    under the radar until they can emerge with a tangible success, rather than risk remote organizational

    heavyweights putting a spanner in the works.

    The human challenges were around belief in capability. If you think about it, product innovation

    often flows from the developed world into India. It rarely flows the other way. The belief we have

    managed to create for ourselves is that we are good at replication and re-engineering. We take

    anything developed anywhere in the world and create a damned good version of that within a fewweeks. For years, we have actually been taking pride in this. But create something new to the world,

    especially something highly engineered? Forget about it. We dont have the capability. We dont believe

    we have the capability, and by extension, we create the perception internationally too that we dont

    have the capability.

    It is no different at MNCs in India. Indian arms of MNCs are often seen as minor operations that

    tinker around at the margins. In many cases the Indian arm just makes modifications to products

    developed in the West. Too often in the Indian arm of an MNC, R&D is a misnomer. More tweak and

    modify takes place than true research and development. The R&D department just tinkers with an

    existing product to adapt it to Indian conditions.

    This was true of Bosch India as well. A team member says that he was very afraid when he took

    up the project. Earlier he had worked only on the mechanical pumps and there too just tweaking

    existing products. Here, for the first time, he was expected to develop from scratch. There was a great

    sense of fear about whether he would be able to do so. Adding to his anxiety was the knowledge that

    this was a very important project for Bosch India.

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    The technical challenges were also tremendous. The key constraint was that it would have to be

    a single-cylinder pump that fitted into the existing engine block and created no changes or modifications

    in the existing engine. In shape, it would have to look a lot like the existing PF pumps, but in

    performance it would have to deliver in terms of a conventional Common Rail pump.

    The key challenge is to deliver the required fuel quantity at 1600 bar pressure with the single-

    cylinder PF pump. This was possible with the three pumping units in case of conventional Common Rail

    (CR) pump, but considered impossible with the single-cylinder pump. The maximum a single-cylinder

    pump could reach was pressures of around 750 bars. To reach Euro IV norms, the pump would need to

    withstand a pressure of at least 1600 bars.

    THE INNOVATIONS

    Now the innovations began. The team was working in a sphere of uncertainty. They didnt know

    whether this was even possible. To begin with, they decided to challenge every part of the existing

    Common Rail pump. The conventional CR pump has three key components: a driving unit, three

    pumping units, and a built-in fuel quantity regulating unit. The key reframe the team attempted here

    was to unbundle the bundled. They separated the bundled components and decided to challenge

    each component, beginning with the driving unit. They challenged the fact that the pump required an

    external drive. Why couldnt it be attached to the engine cam shaft and use that to drive the pump and

    generate pressure? They did away with the drive unit and the pump is now inside the engine block.

    The next challenge was to do away with the three sections of the conventional CR pump. The

    three sections aided in generating pressure. They did this by using the cam lobe in the shape of triangle

    that really gave a 3-time lift so that as the engine camshaft drove the pump, one revolution in effect

    lifted and dropped the plunger 3 times. This created the same effect as the 3 sections of a conventional

    CR pump.

    The shift they made here was to utilize unutilized assets like the engine cam shaft. If you think

    about it, what are some unutilized assets in your organization? There are often tremendous assts lying

    around unutilized which often need just a reframe to utilize them in completely new ways.

    Some challenges that seemed very minor took up a huge time and effort. For instance, during trials they

    found that there were huge stresses on the guide pin at the cam. It took them nearly a year just to find away to deal with those immense stresses and then to test it. Testing meant making the section go

    through 107 trials-ten million trials. And that took time and effort. The pump had to work perfectly. One

    challenge they had committed to was that it would last for 500,000 hours of usage up from the existing

    150,000 hours for the conventional CR pump. So nothing could be allowed to go wrong there. Five

    hundred thousand hours really means a lifespan of twenty years.

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    The fuel quantity regulating unit of the conventional CR pump was separated and placed

    elsewhere so that it didnt take up precious space in the engine block.

    The next challenge was to create an external body that could withstand tremendous pressures

    and temperatures. This was done using a monoblock, but then the team found that the plunger seized

    because the temperature was so high that the body became deformed. They needed to work on this

    further. One solution was to coat the interior with anti-friction and anti-wear carbon-impregnated

    coating.

    Finally, the radical pump was created. It was developed within budget and within time. Deutz

    got the pump in the time frame they had wanted it. It collected a patent along the way and took

    constant innovations at every level and in every part of the pump as each new challenge required an

    innovation to crack it.

    The biggest constraints to a product are those that enable it to succeed. For instance, the biggest

    enabler to propeller planes was the propeller. And until that was removed, the jet didnt happen.

    Similarly, the biggest enablers to the usual CR pump were the external drive and the three pressure

    chambers. Once these were removed, the innovative PF-45 pump happened.

    What are some key enablers ofyourproduct that you can eliminate?

    THE IMPACT

    The impact has been tremendous. Business has boomed. And since the pump is now so incredibly

    simple, the assembly, installation and maintenance costs have crashed. A large part of servicing costs in

    Common Rail pumps has always been pump servicing by highly trained technicians. This has been all but

    eliminated. The pump needs no servicing and lasts more than three times as long as a conventional CR.

    And at around 20 Euros, at a fourth the cost of a conventional CR pump, its really great value for

    money.

    The impact on Bosch India has been incredible. There has always

    Really, if you think about it, talent is like capital. It flows to the place of highest utilization. At Bosch

    India, every year, around thirty new engineering graduates join and they get to choose which

    department they want to join. Usually, only about five or six join R&D. but last year, twenty-four out

    of thirty graduates wanted to join R&D! Once the R&D team began producing breakthroughinnovations, it began attracting talent. A similar story is found at Titan after it created the worlds

    slimmest water resistant watch and at Tata Motors after the Nano challenge. A new kind of talent is

    seeking out these companies. The newspapers are full of the reverse brain-drain or brain-gain with

    Indians who had migrated to the US coming back home. This really is a manifestation of talent going to

    the place of highest utilization. So really, if you are not satisfied with your in-house talent, the catch is

    that you are not going to attract new talent without demonstrating fundamental breakthroughs with

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    your existing talent. And these breakthroughs will largely come from an orbit-shifting challenge like

    the one the Bosch team took up.

    been a fear that manufacturing and development could shift to China to take advantage of costs. With

    nothing to differentiate between Indian and China, the fear was that this would just be a matter of

    time. Today, with the innovations that India is producing around the pump, this fear has, for the time

    being at least, reduced.

    The potential impact on the diesel engine industry is huge. Engine manufacturers and

    commercial vehicle buyers have got a new lease of life as they dont have to go in for expensive engine

    modifications to meets the next level of emission norms. Instead, they can get the same benefit for a

    fraction of the cost. This pump can also be upgraded to meet Euro VI norms that will come into force

    in 2013 in Europe and 2020 in India (India lags behind Euro norms by around eight years).

    The impact on the internal team has been awesome. The India competency centre has suddenly

    become extremely visible not only to the Bosch world, but to the entire diesel world. The R&D

    department is attracting talent. Last year, 80 per cent of new engineering trainees at Bosch India

    wanted to join R&D, up from 20 per cent in previous years.

    Internal motivation and confidence have skyrocketed. As a team member said, I feel like a boy

    whos won a gold medal. Another said, I now feel confident about taking on any challenge. The PF-45

    experience has really motivated us and boosted our confidence. There is a deep sense of pride. As a

    team member said, We have always felt that we Indians cannot do any development. Everything can

    only be developed in Europe and brought to India a decade later when the world has shifted to other

    products and technologies. We get the hand-me-downs to lead.

    The usual block to innovation in a developing country like India is the question: Has anyone done it

    before? If no one has done it before how can we do it? This often leads to fitting -in and modifying

    rather than creating new-to-the-world innovations.

    Today we have shown the world that we can conceive, develop and manufacture terrific

    innovations. The mindset shift has been from we are just applicators for Bosch Germanys products,

    therefore make minimal tweaks after extensive permission-seeking to we create technology that

    nobody in the world has done. We are thought leaders. The team has overcome the traditionaldeveloping country mindset of deference to the West or Japan.

    The same team has now developed the next-generation pump called PF-51 which is a much

    smaller version of the current one. As Amarnath from sample manufacturing said, the pump is the

    epitome of simplicity and performance. It does what a PF-45 does at one-fourth its dimensions and

    weight. And the fascinating factor, according to the project champion Baskaran, is that now, new

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    engine manufacturers are designing their engines around the pump rather than the usual pump

    manufacturers designing the pump around the engine. This next generation pump has created

    tremendous breakthroughs in design, cost reduction and size.

    But perhaps the greatest impact is the innovation blowback effect. A pump originally conceived

    for India, keeping in mind the reluctance of most Indian commercial vehicle customers to spend

    anything extra on vehicle costs, is now sweeping the European continent. What began as an idea to

    make a painless transition to higher emission norms in India has now impacted the Western

    hemisphere. Increasingly, innovations from India, developed to meet the uniquely Indian challenges of

    extreme low-cost solutions along with great quality are impacting the West. The PF-45 pump is one

    such innovation.

    And it all began when one powerless team decided to take control of its own destiny and

    began by reframing something the whole diesel world had begun to take for granted.