Professional Documents
Culture Documents
Chitvan
Udhai
Jatin
Sampreet
AGENDA
1. General Environmental Analysis
2. Industry Environment Analysis
3. Indian Automobile Industry
4. Competitor Analysis
5. Value Chain Analysis
6. Operations
7. Conclusion
GENERAL ENVIRONMENTAL ANALYSIS
PESTLE
Political • Government promoting foreign investment (FDI‟s)
• Stable political environment
(Attractive)
Economic • Good access of funds due to availability of cheap loans
• Persistent high growth rates for past few years
(Attractive)
Social • Rise of middle class leading to improved purchasing power
• Mass transportation due to increase environment consciousness
(Moderate)
Technology • Capital intensive
• Huge investment required to achieve economy of scales
(Unattractive)
Legal • Need to comply with ever evolving emissions standards
• Need to comply various safety and technical standards
(Unattractive)
INDUSTRY ANALYSIS
PORTER‟S FIVE FORCES
• Not very high due to proprietary knowledge, patents and
Threat of New Entrants government policies
(Low) • Huge investment required hence not easy to enter into
automobile market
Hyundai Tata
Volkswagen Chevrolet
HUMAN
RESOURCE
MANAGEMENT
Team building activities Variable- pay e-learning
MARGIN
TECHNOLOGY Electronic Data Processing Data Management Software
DEVELOPMENT
Product Life Cycle Management Solution
PROCUREMENT Vendor quality system audits Maruti Center for Excellence Supplier Club
Lean
Manufact-
uring Maruti
Presence in Sales operating Standards
500 cities Finance
Value
JIT Added with 1500+ Anytime MARGIN
Value distributors Maruti Motor training
Effective Engg. Schools
Material (VAVE) Maruti on
Handling road
True Value
Focus on Cashless
model
Cost, insurance
Quality &
Safety
• Greater customer
• Pioneer in latest • Alliances with
satisfaction
technology suppliers
• Lean Mfg • Alliances with
• PMS STRONG dealers
DISTRIBUTOR
• Quality Control NETWORK
FORWARD AND
MANUFACTURIN BACKWARD
G EXCELLENCE • True Value INTEGRATION
• Anytime Maruti
• Authorized service
centers
• Insurance
OTHER CRM
INITIATIVES
GURGAON FACILITY
The Gurgaon facility spread over 300 acres is located around 25 kms south
of Delhi. This facility houses three fully integrated plants. Together the three
plants churn out around 9 lakh units annually.
K- series Plant
The Gurgaon premises also houses the 'K Engine' Plant. Commissioned in
2008, the K-series engine plant has an installed capacity of over 7.7 lakh
units per annum. Since the launch of the engine cumulatively, over 10 lakh K-
series engines have been rolled out.
K-series engines are available in 1 litre, 1.2 litre and 1.4 litre capacities. The
highly fuel efficient, technologically advanced K-series engines have been
very well appreciated by our customers for their performance.
Several Maruti Suzuki cars such as the Alto K10, A-star, Estilo, WagonR,
Swift, Swift Dzire, Ritz and Ertiga are powered by the K-series engines.
MANESAR FACILITY
Safety Index-
Safety is of the paramount importance in a workshop. To
meet the desired safety standards various training programs
are started so as to give proper knowledge to workers
regarding safety precautions. Safety Index represents the
overall percentage of number of points received by an
assembly shop to improve safety to number of points
available for improving the safety of the department.
SAFETY AUDITS:
Direct Pass
Rejection Cost
Warranty cost
Cost of Repair
Cost Savings
PRODUCTIVITY:
HPV
Line Efficiency
Analytics
Reduce
Recycle
Reuse policy
REDUCE
Reducing water usage in its air-conditioning plant: Water use is eliminated by
introducing air-cooled air-conditioners and closed cycle cooling towers.
Reducing consumption of raw paints: Company has started using automation in paint
shop, increasing efficiency and thus reducing raw paint consumption. This has also
reduced paint-sludge (industrial waste) generated from the plant.
Rightsizing of equipments: In its new facility, Maruti has ensured to use right sizes of
equipments, saving a lot on energy front.
Three-coat-one-bake painting system: This state of art system uses only one baking
step as compared to conventional system of having two baking steps, thus reducing the
consumption of energy levels and increase efficiency.
Use of solar energy in form of solar lamps and heaters helps in reducing power
consumptions.
Use of natural ventilators: These ventilators use wind energy as against electrical energy
to keep the rooms cool, thereby saving on power consumption.
Reducing noise pollution: Company has installed many noise curtains in its
facilities, creating enclosure for high noise generation equipments and hence providing a
safer working condition to its employees.
REUSE
Waste Heat Recovery: Company is reusing the waste gases,
generated during power generation, in its manufacturing process,
resulting in a saving of almost 4225 MWH per year.
Over 76% of the company's 246 suppliers are located within 100
kms of radius. Have strategically located the suppliers of bulky
components such as instrument panels, fuel tanks, bumpers, seats,
etc. adjacent to the company's manufacturing facilities in the
Suppliers' Park.
CONT……..
The JIT system has evolved over the last 25 years in
the company from monthly scheduling to daily
scheduling of parts orders and finally, in 2003, to e-
nagare system i.e. the release of schedules on hourly
systems, a practice that aids in maintaining less than
two hours inventory of components within the
company.
The e-nagare system is successfully running today at
the company and helps in maintaining the right
material inventory, at the right time, at the right place
and in the exact amount without the safety net of
excess inventory, thus reducing high inventory
carrying cost.
MARUTI – SUSTAINABLE OPERATIONS
THROUGH INTERNAL EFFICIENCY
Maruti Suzuki using best practices such as Just in Time (JIT), Kaizen
(continuous improvements), Pika Pika and Poka Yoke (mistake proof
operations). The best practices are replicated in the business process of
business partners to make their operations lean and error free.