INTRODUCTION

In 1982 with the help of govt. of India,

Maruti entered into a joint venture with
Suzuki motors of Japan.

Plant was established at gurgaon in
haryana.

The entire supply chain needs to be
monitored to get the best quality, so that
they establish Maruti Center For
Excellence(MACE)
As much as 80% of an average maruti
suzuki vehicle is made of vendor supplied
part.

Maruti Suzuki has 300 odd vendors.

Maruti Suzuki established MACE in 2004
with the company and 21 vendors pooling
funds for seed money.
Maruti classifies its vendors as Tier-1 and Tier-2
while around 300 Tier-1 vendors supply
components a directly to the company, a handful
of Tier-2 vendors supply assembly parts of various
components to the Tier-1 vendors.

Certain child parts are got from Tier-3 vendors.

Maruti has a 500 employees strong department to
manage relationship with its suppliers including
looking at function such as supply chain
management, engineering, quality control, human
resource etc.
Quality check process
Although the quality check at the
Maruti plant, it is impossible for
manufacturers to check all the
components going to assembly line.

So, the importance given to
monitoring facilities of the vendors
increases.

Steps for quality
improvement.
There is two steps process at the
maruti plant to improve the quality.

1 Marutis own shop floor.
2 vendors end.


Marutis own shop floor.
Marutis production system in the country draws
the best practices of parent company SUZUKI
motors.

Lean manufacturing:
it stands for man, machines, materials, and
methods. 4Ms.

For the improvement of yield.
1 altering stamping technique.
2 maximise steel sheet utilisation
In last five years MACE has channelized all
its efforts in upgrading Tier-I and Tier-II
vendors, it was noticed that both were not
getting similar initiatives.


MACE counselors provide suggestions on
manufacturing process upgradation.


MACE arranges knowledge session for
both Tier-I & Tier-II, and this cluster
approach was very effective.

When the solution is implemented, MACE
counselors visit the vendors factory again.

With the relationship between Maruti and
its vendors has reduced the rejection rate.
Motherson Sumi system started its
association with Maruti company for
supplying wiring harness and now it is
supplying grills, door handles, mirrors,
lighting system and cutting tool used in
machine shop.


If maruti were to bring a new hatchback in the
car market within the next few months.

Tier-I vendors and tier- II vender run their
factories for high-volume production trials,
that problems arising on each assembly line
can be identified.

Because everybody in the chain work closely,
all of us are well-prepared to meet deadlines.
Now we set targets for next three to five
years.
Support of manufacturers and tire 1 suppliers
are indispensable to the existence of tier 2
suppliers.
Started with MACE it annul rejection rate was
4 % . This translated in parts per millions of
0.0004 and the company kick-started its 0
PPM drive by implementing Marutis Qualitiy
Circle (QC) in its factory.
The focus then shifts to using low-cost
automation.
The company runs two drill machines on one
motors.
This initiative resulted in a 50 per cut in the
factorys electricity consumption.

Today close to 22 Tire=II suppliers maintain
0 PPM) rejection.

Improving your bottom line while enhancing
long term customer satisfaction and the
lifetime value your customer.