PowerPoint PresentationMercedes-Benz StrategyMotivations for ChangeImpact on Design GoalsThe New Mercedes-Benz: MaterialsAdvantages of the New Mercedes-BenzBase Case ComparisonChange in BIW Profit by Case NumberCost Savings versus RecyclabilityCost Savings versus Fuel EconomyRecyclability versus MPGELI Results by Case NumberExperience and ChallengesDesign Conclusions: the Future of Mercedes-BenzSlide 15Slide 16Graph explanationMercedes-Benz: A Greener Luxury SedanStephanie DalquistSeward MatwickBill Nickerson13 May 2002Mercedes-Benz Strategy•Manufacture world-class luxury cars•Maintain industry leadership in technology and design•Maximize profits, delivering consumer and environmental benefits•“Resource management” value system–Free market: get the prices right–Earth as a closed system–Technology is the answer: improved efficiency, recyclabilityMotivations for Change•Maintain profitability•Meet environmental mandates–Recycling laws–Fuel efficiency•Balance the competing mandates while still achieving profitabilityImpact on Design Goals •Profitability first–A corporation, above all•Deliberate material selection–Aim to meet new EU mandates–Improve fuel efficiency–Provide return on perceived customer value•EPS to confirm design choicesThe New Mercedes-Benz: MaterialsAluminum RoofSteel QPISMC QPOSMC Floor•Production 50,000•BIW Cost $1996•81% recyclable•22.9 mpgAdvantages of the New Mercedes-Benz•Increased profit margin, savings on BIW•Meet EU recycling mandate•Lighter total weight–Greater fuel economy–Lower emissionsBase Case ComparisonNew Model ChangeCost $1996 -$353Weight 2748 lbs -241.2 lbsRecyclability 81% +6.3%ELI 10324 -561.33Fuel efficiency 22.8 MPG +1.3 MPGChange in BIW Profit by Case Number-1400-1200-1000-800-600-400-20002004006008000 10 20 30 40 50 60Case numberChange in profit ($)Cost Savings versus Recyclability0.00100.00200.00300.00400.00500.00600.0070.00 75.00 80.00 85.00 90.00Recycle %Savings ($)161323294131344952141732355053Cost Savings versus Fuel Economy0.00100.00200.00300.00400.00500.00600.0021.6 21.8 22 22.2 22.4 22.6 22.8 23 23.2 23.4Fuel economy (mpg)Savings ($)294123164913523134141750533532Recyclability versus MPG21.621.82222.222.422.622.82323.223.470.00 75.00 80.00 85.00 90.00Recycle %Fuel economy (mpg)131631344952291417233235415053ELI Results by Case Number131416172329313234354149505253101001020010300104001050010600107001080010900110000 10 20 30 40 50 60Case numberELI52Experience and Challenges•Diversify product line with new materials•Changeover will be smoothed by years of manufacturing experience•Meet future mandates, look forward to more improvementsDesign Conclusions: the Future of Mercedes-Benz•New materials selected to reach manufacturing goals•Meet 2006 recyclability mandates of the EU•Improved fuel efficiency•Stay on the cutting edge of technology and profitability9800100001020010400106001080011000112000 2 4 6 8 10 12 14Change #Total ELU for CarMin ELUMax ELUAvg ELUELU SensitivityGraph explanation•Legend: ELUs of all 54 options•Change #–1: original ELU–2: -10% ELUs–3: -30% ELUs–4: -50% ELUs–5: 50% ELUs–6: 30% ELUs–7: 10% ELUs–8: - biodiversity ELUs–9 - production ELUs–10 - energy ELUs–11 - health ELUs–12 – biodiversity/production ELUs–13– energy/health