Operations and Supply Management

(5BU012)

Module code: - 5BU012

Student Name: - Kartik Purohit
Student UID Number: - 1823244

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Sr. No. Table of content Page no.

1 Introduction 4

2 Product Supply Chain Network 5-6

3 Review of the Products Operations 7-8

4 Conclusion and Recommendations 8

5 Bibliography 9-10

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 Declaration Form
I hereby declare that
- The submission is my own work
- All materials used has been acknowledged & appropriately referenced.
- I have not allowed another student to have access to my work.
- The work has not been submitted previously.

Name: Kartik Purohit

UID No. 1823244

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  Introduction
In this report we are going to explain about supply chain management of one of the leading
Indian Automobile Industry. Global automotive companies are constantly restricting their
business activities by outsourcing their non-core activities to low cost countries. In view of
current competitive environment automobile manufacturers are expected to innovate new
features in their products and process as well as to follow environment standards along with
economical cost. Due to this organization are forced to source more components from low-cost
countries. Operational since 1924(pre-Independence era), MG A.K.A Morris Garages was
founded in the UK (95 years old) and is known for its classic sports cars and cabriolets. MG was
acquired by China’s state-owned SAIC Motor Corporation (SAIC, formerly Shanghai Automotive
Industry Corporation) in the late 2000s.MG Hector is one of the most awaited launches of 2019
and most successful project came into existence. It’s making an entry into a very crowded
compact SUV segment at a very reasonable ex-showroom price. Hector has also managed to
garner a lot of curiosity with its entire marketing campaign focused on the best in class I-Smart
features based on voice command and connected mobility Mukherjee, S., 2020. The first
impression of MG Hector was so heart touching and up to the mark it has a very bold setup,
with abundant use of chrome around the grill with slim LED day-time running lights placed on
the front panel give it a very classy look. Although design is different and people may perceive
this slim panel variably The Economic Times. 2020. This fabulous featured car has lot many
features which include Hill Assist, Electric Adjustable Seats, Heights Adjustable Driver seat and
Electronic Multi Trip Meter. It has also high safety with up to six airbags, child safety lock, door
ajar warning system, front beams, Tyre pressure monitor, and centrally fuel tank.MG Hector has
Smartphone App. It lets you control a lot of car features from anywhere around the world like
lock/unlock, open/close sunroof, turn on the AC, and even start the car (only for Automatic).
There are a whole lot of features like geofence-based alarms that trigger if the car moves out of
a range or Smart Drive, which scores you based on your driving habits. In India it already has
around 500 customers the owners of the classic models, it will officially enter the market with
Hector SUV in July 2019 MG Motor India. 2020. MG Motor India Bought GM’s defund halol
facility and will invest north of RS2000 Crore (initial investment) over the course of time for its
Indian operations. The manufacturing plant has an initial capacity of 80,000 cars per annum.
MG has also targeted 75 percent localization with the Hector at launch. At the time of Hector’s
launch MG has around 45 dealerships running across the country and almost as many service
centers. Moreover, MG motor has also set up a brand-owned dealership in Guru Gram for those
who want a more in-depth understanding of the brand. It has dealers in Punjab, Chandigarh,
Jalandhar, Ludhiana and Amritsar. MG is certainly making big splash in the mid-size SUV
segment with its debutant product and might unsettle some rivals. MG Motor India. 2020. 

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  Product Supply Chain Network: -
Upstream: - The supply chain management normally concerned with the flow of information as
well as the flow of products and services. In a supply side normally MG Motors send the
information to the first tier supplier about their needs such as quality of material required, time
limit, quantity, Cost. Based on this first tier supplier send the relative information to second tier
customer and depending on this the second tier supplier supplies the product required to the
organization via first tier supplier. Even after that to manage demand side well, organization
obtains the information from the end customer of the product directly or via second tier customer
and first tier customer and send it to its suppliers. So they can see that the information obtained
from end customer requirement reaches up to last supplier via different channels such as,
second and first tier customer, organization, first tier supplier and so on and depends on this
end customer obtains required products. To manage whole process of supply chain,
management has to consider all its stages such as supply side, product manufacturing and
demand side. The potential of any process or operation is largely depended on the receivable
inputs. Therefore supply management is a required for effective operations management .there
are three main activities involved in supply side which are selecting appropriate supplier,
planning and controlling the ongoing supply activity, developing and improving suppliers
capabilities. One of the important activities of the supply side management is selection of proper
supplier Business-standard.com. 2020. The MG Motors select their supplier first and they
have to understand the requirement of all processes within their operations as well as to
understand the capabilities of the supplier, because they are going to provide products and
services required for the ongoing operations. MG Motors have to select the right supplier most
of the firm mainly take up supplier scoring or assessment procedure which makes them able to
evaluate different supplier considering the relative importance of factors like, range of products,
quality of product, services, awareness, delivery and volume flexibility, cost, ability to supply the
required quantity as well as their potential for innovation, willingness to share link, long term
commitment to supply. Another important decision supply side management is sourcing
decision which means whether to make or design component in-house or to get them from the
suppliers the next activity of supply side management is to decide source each individual
product or service from single supplier or to use more than one supplier ETAuto.com. 2020.
Once the selection of supplier is done the next activity of supply management of MG Motors is
to plan and control the ongoing supply. Planning and control of ongoing supply is about ensure
that the suppliers are given right information and encouragement to maintain smooth supply as
well as to make sure that any internal discrepancy does not affect the suppliers ability to supply.
Therefore maintenance of ongoing process requires relative method or system setup to ensure
two-way flow of information between customer and supplier ETAuto.com. 2020. To maintain
this process well MG Motors bring degree of formality to supplier relationships by encouraging
all suppliers to agree service-level agreements. Such kind of agreement covers types of issues
which can disturb the ongoing supply which are, response time, range of services, and
dependability of service supply.

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Downstream: - MG (Morris Garage) Motor India has rolled out the production version of Hector
from its state-of-the-art facility at Halol in Gujarat. Hector, MG’s first car in India, has gone into
commercial production after one million kilometers of testing in diverse road and climate
conditions across India. With extensive localization more than 300+ India specific changes have
been carried out in MG Hector to suit the customer preferences and road conditions. MG Motor
India will also begin shipments of the Hectors SUV within the next few weeks to its wide spread
network of 64 showroom across 50 cities. The Hector SUV will make its global debut this year
and pre-orders will begin soon. MG India so far has invested INR 2,200 crores in its Gujarat
manufacturing plant to roll out the much-awaited MG Hector. Due to several reasons the
automaker was forced to stop accepting the pre-booking for the Hector SUV, in the face of the
overwhelming demand for the mid-size SUV in six weeks of launch. In fact, the booking for the
Hector presently sits at 42,000 units, about 8,000 units out of which was registered in just 10
days after the booking was reopened in late September Mukherjee, S. and Chaliawala, N.,
2020. The hector’s production reached more than 3,000 units and the carmaker is
contemplating ramping it up to 3,500 models in the upcoming months. Despite the fact that MG
confirms the average waiting period for the Hector is 3-4 months, the claimed production
numbers suggest others. As far as we know, the Chinese-owned British-Based auto company,
albeit having claimed to achieve 75 per cent localization of the Hector in India, is falling into
difficulty to produce essential parts imported from its suppliers in Europe. While carmaker
remains close-mouthed on this issue, some reports suggested that the global suppliers could
not increase the components supplies in line with initial booking units, thereby resulting in a
serious imbalanced supply chain issue. MG Motors has 153 dealers MG car dealers and
showroom locate over 153 MG dealers in Delhi, Mumbai, Chennai, Bangalore, Chennai,
Kolkata, and Pune and get Details of MG dealerships across 133 cities in India. Mukherjee, S.
and Chaliawala, N., 2020
Communication network: - Cognizant’s industry, experience design, analytics and enterprise
architecture experts developed the hyper-personalized digital channels with Adobe Experience
Cloud. It enables a consistent, high-quality experience for current as well as prospective
customers as they interact with MG Motor India representatives throughout the pre-sales, sales
and post-sales lifecycles. Cognizant also designed and developed an enterprise planning and
management platform, based on SAP technology, which optimizes key enterprise processes
including production, sales, distribution, materials management, and finance for better

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operational efficiency and agility The Economic Times. 2020. The digital solution has enabled
MG Motor India to extend its feature-rich, in-car connected vehicles experiences to all phases of
a customer’s brand experience from consideration, evaluation, purchase to use. A data driven
approach enables better customer and operational insights to provide information, experiences
and services tailored to specific customer needs. As a brand, the MG Motors has been
endeavor to look at new and innovation ways to excite their customer experience outside the
car that matches the deeply personal experience inside the car and while driving the car.
Business-standard.com. 2020.

 Review of the Products Operations: -

In the competitive automobile industry, companies are harnessing cutting-edge digital
technologies to better integrate front and back office processes and deliver meaningful
experiences to their customers, while also gaining operational efficiencies that help increase
speed-to-market. Cognizant’s customer experience and enterprise management solution is part
of MG Motor’s integrated marketing and engagement program across multiple channels. IT
major cognizant has designed and implemented a digital solution to help automotive player MG
Motor deliver a seamless experience to customers of the Hector SUV the group connected
internet car. . The MG Hector is the first car made in India which feature-rich internet car, the
MG Hector, from all-new assembly line in GujaratThe Economic Times. 2020. They have also
adopted the highest quality global manufacturing standards, this car has been specially
customized to suit Indian customer preferences and road conditions. MG hector is poised to
become a new benchmark in SUVs the President and Managing Director of MG Motor India
strongly believe that MG Hector has so many specification and so much of creativity in the
automotive industry which will take it to next level. The MG Hector comes equipped with
cutting-edge technology and it is d3esigned to deliver best-in-class performance and features.
The next-gen ISMART technology promises to deliver safe, connected, and fun experiences to
customers as India’s first internet car, with a segment0best 10.4 inch touchscreen. The SUV
comes with revolutionary Over the AIR (OTA) technology which allows customers to update
software, features, themes, and infotainment content, when the updates are available. MG
Motor India is a future-ready organization that is setting industry benchmarks in terms of young
and smart work culture and diversity – female employees already account for 31 percent of the
company’s total workforce of 1,000 employees. With a focus on four key organizational pillars-
innovation, safety, experiences and diversity; the carmaker has built as strong foundation for its
future operations MG Motor India. 2020. The company has also invested INR 150 crore
towards purchase of its brand-new corporate office in Gurgaon.
The SAIC Motor Corp Ltd-owned carmaker claims that its current order book has more than
30,000 pending bookings for the Hector SUV. It has delivered little more than 6,000 units since
the Hector’s launch. The Carmaker’s expect that the second shift will grow monthly capacity of
manufacturing from 2,500 units to up to 3,500 units. Although MG Motors average waiting
period is 3-4 months. The carmaker, which claims to be working to localize the Hector up to
75% has been struggling to procure critical components that are important from its global
supplier News, L., 2020. MG Motor India Retail Sales Rise In March 2020. Although MG
Motor remains tightlipped on the matter, sources have suggested that the supplier could not
ramp up parts supplies in tandem with the initial booking numbers conveyed by the carmaker,
thereby leading to serious supply chain. They also keep in touch with suppliers in the backend

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so that if there are more number of demand they can fulfill it. Some of their suppliers are global
which is European based. Even as they expand their operations, this has to be supported with
hiring of new workforce on ground for training. Once they got the clarity and assurance they can
expand on time. The ongoing automobile industry slowdown due to which there is massive job
losses in India in the months though, the SAIC-owned British company, MG Motor continues to
employ many workers for expanding its operation in India Businesstoday.in. 2020.
The production schedules for BSVI Hector MG Motor India is going through lot many challenges
around its supply chain and production ramp up of its first car in the domestic market, the
Hector, a Sports Utility Vehicle (SUV), MG Motor India PVT LTD is still evaluating the start of
production of its BS VI compliant SUV. MG Motor India have customer bookings to cater and
they are continuously reviewing the manufacturing plans. They are still evaluating the
production schedules for BSVI compliant Hector as they are yet to take a decision. The
company is also planning to start its second batch at its Halol-based manufacturing unit. Due to
competitive environment automobile companies are getting engage in mergers and acquisitions.
They are facing challenges in improving their quality, cost reduction and developing time to
market. Because of the reason, the automobile industry has been passed through major
structural and other changes in few months. The relationship between automobile assembler
and their supplier is changed due to globalization, implementation of lean production and
development of modularization Businesstoday.in. 2020. The carmaker’s technologically
advanced plant in Gujarat which deploys advanced robotic spot welding, robotic roller hemming
and robotic brazing facilities to achieve superior weld quality and dimensional consistency. The
paint shop uses robotic application at all stages off coating to achieve superior paint finish
quality and colour harmony. The new assembly line operates with the help of advanced
Automated Guided Vehicles (AGV) for various assembly process. A first industry, touchscreen
pads are available at ach assembly work station, enabling MG employees to connect and alert
the system centrally to avoid errors, following the “first time right build” philosophy. The plant
operates conforming to world-class manufacturing standards following production parameters
beyond the current norm, with the vehicles undergoing various stringent quality tests. Further
underlining its commitment to creating products especially for India, they had also set up a
captive vendor park at its plant. MG Motor has started hiring as many as 500 workers in India as
it’s preparing for the second shift at its Halol manufacturing facility in Gujarat, all the ways to
meeting the soaring demand for the newly-arrived MG Hector. The company has setup new
assembly line, new press shop, new body shop, new parts distribution center, testing track and
state-of-the-art training facility in the plant, within a short span of time. MG’s Halol Plant
currently has a capacity of 80,000 units per annum and has the provision to increase the
capacity going forward depending upon the requirement. News, L., 2020. MG Motor India
Retail Sales Rise In March 2020 Lean management is an approach to managing an
organization that supports the concept of continuos improvement, a long-term approach to work
that systematically seeks to achieve small, incremental changes in processes in order to
improve efficiency and quality. Lean management facilitates shared leadership and
responsibility; continuous improvement ensures that very employee contributes to the
improvement process. The management method acts as guide to building a successful and
solid organization that is constantly progressing, identifying real problems and resolving them.
Recommendation and Conclusion: -
Hector is the best luxurious car which MG Motors have brought in the Indian market with the
best features and they also took care of its safety and even the quality is being analyzed it so

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well and moreover this car is designed for Indian road and the catchy look makes it more better
and looking forward MG Motor may get affected in February due to China’s Coronavirus
outbreak in supply chain. Talking about the supply chain the MG Motors supply chain is not that
good due to which they have pending orders around 16,000 units of the MG Hector SUV. Which
is why the people have to wait for the product which results into loss of their customers and
through which the company can face a big loss so to overcome from that problem the author
recommend them they should also start working like TATA Motors A large reason their supply
chain helps them succeed is it allows them to keep their costs down by spending on the
essentials. One of their primary objectives has always been achieving the highest operational
efficiencies at the lowest cost. They believe in lean and just-in-time manufacturing systems,
because they are very cost conscious about fixed expenses such as overhead or extra
inventory costs and therefore manufacturing strictly against actual customer orders. After doing
such things the author expects that the MG Motors will be improved in its supply chain Tata
Communications. 2020.

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