Multi-skilling is the name of the game as Maruti's workers and robots churn out an array of models for the

he burgeoning market. While soccer mania grips the world and FIFA makes the headlines go bolder by the day, Maruti Suzuki's twin plants (Gurgaon and Manesar) continue to stick to the time-tested FIFO principle. First In, First Out is more a religion than a norm at the auto major as the company's 230-odd vendors directly supply components on the line eliminating storage altogether. What Is Inventory? Inventory is defined as assets that are intended for sale, are in process of being produced for sale or are to be used in producing goods. The following equation expresses how a company's inventory is determined:

Beginning Inventory + Net Purchases - Cost of Goods Sold (COGS) = Ending Inventory In other words, you take what the company has in the beginning, add what they have purchased, subtract what they've sold and the result is what they have remaining. What Does First In, First Out - FIFO Mean? An asset-management and valuation method in which the assets produced or acquired first are sold, used or disposed of first. FIFO may be used by a individual or a corporation. Investopedia explains First In, First Out - FIFO For taxation purposes, FIFO assumes that the assets that are remaining in inventory are matched to the assets that are most recently purchased or produced. Because of this assumption, there are a number of tax minimization strategies associated with using the FIFO asset-management and valuation method.

Production Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India.

Environment Maruti Suzuki India Limited, the leader in Indian car market, has bagged the 'Golden Peacock EcoInnovation Award' for adopting environment friendly technology in its products and processes. The award was presented to the company by the World Environment Foundation during the recently organized 'Global Convention on Climate' in Palampur, Himachal Pradesh. Over the years, through sustained investment on environment friendly technology for both products and processes and inhouse innovations, Maruti Suzuki has been able to bring down the per unit consumption of precious natural resources like power and water. On every car manufactured by Maruti Suzuki, there is 20% reduction in energy (power) consumption compared to 2000-01

54% reduction in water consumption compared to 2000-01

All Maruti Suzuki production facilities at Gurgaon and Manesar are ISO 14001 certified. Maruti Suzuki was the country's first passenger car company to be certified for Environment Management Systems as per ISO 14001:1996 in 1999. The company has based its production operations on the principle of "Smaller, fewer, lighter, shorter and neater". As a shared value system with its parent company, Suzuki Motor Corporation, Japan, this principle defines the environment friendly initiatives at Maruti Suzuki India. While a full-fledged department co-ordinates environment initiatives, employees and partners contribute in promoting the 'Three R-s': Reduce, Recycle and Reuse so that stress on natural resources is minimal in the manufacturing processes. Reduce Reducing water use in Air Conditioning Plant: Water use has been eliminated by introducing air-cooled condensers and closed cycle cooling towers in compressed air plant. Reducing water wastage One of the employee-driven initiatives is relentless focus on zero water wastage by following the simple principle of just-in-

time water supply. Sensors at various water hoses, closets and wash areas have helped bring down water consumption. Reducing consumption of raw paint: Multi axes painting robot have been introduced in the Paint Shop within the factory to increase the efficiency of paint transfer and thereby reduce the raw paint consumption. This also reduces the paint sludge (industrial waste) generated from the process. Further, colour grouping technique adopted in the painting process has brought down the wastage and paint loss as well as reduced consumption of thinner for flushing out paint. This has also helped in reducing the paint sludge generation and in turn the Volatile Organic Compound emissions into the atmosphere. Reducing size of machines: 'Over sizing' is a major cause that brings in energy inefficiency. Rightsizing of equipment and tools is a critical driver in energy saving and the company has revisited the complete production processes for this initiative. Reducing energy consumption: The shop floor and offices have been designed in such a way that abundant natural light is available throughout the day. Extensive use of translucent polycarbonate sheets on the side walls and roof help to reduce the dependence on artificial light sources. Maximum use of solar energy in form of solar lamps and heaters helps in power conservation, while natural ventilators use wind energy as against electrical energy to keep the rooms cool. Other measures to reduce energy consumption: Increased use of energy efficient lighting systems (CFLs, T-5 lights) Optimization of energy efficiency by installing common pumps for electrical efficiency

Installation of automated switch boards for shop floor lights/emergency lights

Reducing Noise Pollution: By installing 'noise curtains' in certain areas and creating enclosure for compressor, noise pollution has been minimised, providing better working conditions for employees in these areas. Reuse Waste Heat Recovery: As a first-of-its-kind initiative in manufacturing, the company is reusing waste gases for steam generation and use in the manufacturing process. The company uses steam turbine to power compressors. Reuse of waste steam from these boilers has eliminated the requirement of electrical motors in the processes. Reuse of packaging material: In order to reduce the wooden and cardboard waste, almost 100 per cent of the domestic components come in dedicated reusable bins and trolleys to the factory production lines. Reuse Recycle The Maruti Suzuki plants in Gurgaon and Manesar reutilize the waste water generated. In fact, nearly 50% of the water demand of the plant is met by recycled water. Rain Water harvesting: Recharging shafts and water lagoons help in recharging rain water in to the ground. Incinerators: State-of the-art incinerators burn industrial wastes at high temperatures. The high temperature in the incinerator helps reducing environmental discharge of harmful gaseous waste Secured Landfill Pits: Special landfills have been designed for storage of hazardous waste that cannot be incinerated to ensure that no hazardous material leaks from anywhere. Furthermore, these pits have been designed keeping in mind the properties of the waste so that chemical properties do not interfere with each other. of Waste: Sewage Treatment Plant sludge is reused in horticulture as manure

maruti suzuki overview - Presentation Transcript 1. OPEN SYSTEM INPUTS: Manpower Raw materials Finances Technology R&D TRANSFORMATION PROCESS: Dimensions Strategies Structure Marketing Sales network OUTPUTS: Customer Satisfaction

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Accountability Social responsibility VISION: To be the leader in the Indian Automobile Industry, creating customer delight and increasing shareholders wealth; A pride of India. CORE VALUES INPUTS Raw materials Raw materials primarily comprises steel coils , aluminum and paints. Imported components are mainly purchased from Suzuki Buy more parts locally to offset any adverse impact of foreign currency fluctuations vendors work in close coordination with MSIL MSIL has a delivery instruction system INPUTS Manpower It contains 7525 employees 4,000 service technicians 730 engineers in R & D

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FINANCE

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As of May 10 2007, Govt. of India sold its complete share to Indian financial

MSIL has a good network of internal resources to finance the companys operations, expansion plans as well as capital investments. 5. 6. INPUTS Technology The IT applications of MSIL runs are mostly enterprise wide. Systems at the shop floor is connected to the central database . To ensure reliability, MSIL chose a meshed network. MSIL has also implemented an enterprise management system, called Unicenter TNG. CRM provides centralized access to the dealers and provides the best service network. 7. INPUTS Research and development

The basic objective of the R&D facility is to provide for full vehicle development and designing of vehicles to suit the specific needs of the Indian customer and component durability testing and performance evaluation. o R & D centre is getting ready to develop the first dual fuel engine. o The test course would provide for high-speed evaluation and will also be used for conducting acceleration tests. 8. Dimensions of organizational design Size Maruti has half of the market share in passenger car market It has 600 outlets spread over 393 towns and cities. It has 500 dealers with strong network. 2,744 workshops across 1,139 cities. Culture Japanese culture imbibed in the employees like same uniform, common canteen etc., Unique identity to its employees, equal rights for decision making. 9. Dimensions of organization design Environment

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Technology

Threats from the new players Threat from substitutes: Low to medium Government policies

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Suzuki A-star.

Recently, the company has introduced a peppy k series engine for its new car, Maruti It is planning to develop hybrid, electrical, and multi-fuel engines. Manufacturing Global cars that is fuel-efficient and lower on CO2 emissions. TRANSFORMATION PROCESS SRATEGIES FOLLOWED BY MSIL Pricing strategy - catering to all segments Offering one stop shop to customers or creating different revenue streams Repositioning of maruti products Customer centric approach Committed to motorizing India Organization structure STRUCTURE Management

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The Company has a multi-tier management structure, comprising the Board of Directors at the top and followed by Managing Executive Officers, Executive Officers and Divisional Heads. MSIL divided management into three levels they are Division Department Section

Japanese management techniques and cooperation with Suzuki motor corporation provides a different platform and exposure altogether. o Fun element in MSIL 14. Transformation process Marketing Marutis marketing objective is To continually offer the customer new products and services that Reduce the customers cost of ownership of our cars; and Anticipate and address the customers needs and preferences in all aspects and stages of car ownership, to provide what MSIL refer to as the 360 degree customer experience. 15. Transformation process Sales network Dealer distribution network MSIL has the largest network of dealers amongst car manufacturers in India more than 3,500 sales executives . Sales network is linked through the secure extranet-based information network. Dealers agreement Enhancing dealer performance After sales service network 16. Transformation process 17. PRODUCTS

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Maruti 800: Launched - 1983 Maruti Omni: Launched - 1984 Maruti Gypsy: Launched - 1985 Maruti Alto: Launched - 2000 Maruti Wagon-R: Launched - 2002 Maruti Versa: Launched - 2003 Maruti Grand Vitara Launched - 2004 Maruti Suzuki Swift: Launched - 2005 Maruti Suzuki SX4: Launched - 2007 Maruti Swift Dzire: Launched - 2008 Maruti Suzuki A-STAR: Launched - 2008 Maruti Suzuki Ritz: Launched - 2009 Maruti Suzuki Estilo: Launched - 2009 18. Creating value to each of the customers

Authorized Service StationsService is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. o Maruti Insurance Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram 19. Creating value to each of the customers

Maruti Finance

Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan

Maruti True Value

One can buy, sell or exchange used Maruti vehicles with the help of this service in India.

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Accessories Maruti Driving School 20. social responsibility National Road Safety Mission launched - a nation-wide Social responsibility (CSR) initiative to train 500,000 people in safe driving in three years. Targets reducing fresh water consumption and implement rain water harvesting. The company is moving towards making its entire fleet of cars green with advanced and efficient technologies. Promoting energy conservation. 21.

22. Accolades : A-star as the "Car of the year" A-star as the "Best small car of the year" K10B Engine as the "Automotive technology of the year" Maruti Suzuki as the "Manufacturer of the year"