INSTITUTE OF PROFESSIONAL EDUATIONAL AND RESEARCH

PGDM TRIM 2nd BATCH 4th (2012-2014) OPERATIONS MANAGEMENT-I Operational strategy of Hero MotoCorp Limited and Punjab National Bank.

Hero MotoCorp Limited

Hero MotoCorp Limited (HMCL), formerly Hero Honda Motors Limited, is the worlds largest two-wheeler (2W) company in terms of sales volume, a position that it has been holding for the last nine consecutive years. HMCL was promoted as a joint venture (JV) between the Hero Group of the Munjal family and Honda Motor Company (HMC, Japan), with each holding around 26% equity stake in the company. HMCL has three manufacturing facilities located at Gurgaon (Haryana), Dharuhera (Haryana) and Haridwar (Uttarakhand) with an aggregate capacity to produce 6.15 million vehicles per annum as of March 31, 2011.

 HMCL offers motorcycles in all the three 2W segments: CD Dawn and CD Deluxe in the Entry segment; Splendor, Passion and Glamour in the Executive segment; and Hunk, CBZ Xtreme, and Karizma in the Premium segment.

Splendor and Passion are the two largest selling 2W brands in the country. The company made its debut in the scooters segment in January 2006 with the launch of Pleasure in the ungeared scooters segment.
Overall, HMCL has consistently outperformed its domestic 2W peers in the past, making steady gains in market share.

Key Strategies
To build a strong product portfolio. Explore growth opportunities globally. Improve its operational efficiency continuously.

Aggressively expand its reach to customers.

Continue to invest in brand building activities. Ensure customer and shareholder delight.

Green Supply Chain Management

(Green Vender Development Programme)
Hero MotoCorp is continuously striving for synergy between technology, system and human resources, to provide products and services, to meet the aspiration of our valued customers that too, demonstrating our "WE CARE" philosophy. Hero MotoCorp is maintaining the highest standards of ethics and societal responsibility, constantly innovate the products and process and work in partnership with their supply vendors to take the organization to new excellences. Green Vendor Development Programme refers to the way in which organizational innovations in industrial supply chain management may be considered in the context of the environment.

 Six pillars have been assigned to GVDP model which are Energy management, Water management, Waste minimization, Prevention of Pollution, Substitution of hazardous chemical and Environmental compliance management.

Partner vendors are given specific training on all six pillars of GVDP and mapping of processes/equipments

Quality Policy of Hero MotoCorp

Excellence in quality is the core value of Hero MotoCorp philosophy. Every raw material and chemical is thoroughly evaluated for its environmental impact before it is introduced into our production process.

Over the last few years, Hero MotoCorp has proactively eliminated the use of harmful substance like Asbestos Hexavalent Chromium Phenolic Substances

Distribution Channel of Hero MotoCorp

Over the years, Hero MotoCorp has built its distribution network of 700 dealers and 3,700 service centers.

More than 2,000 rural channel partners work on the rural vertical through the Har Gaon Har Aangan program.

 Over the past four years, its distribution network has grown nearly 2x compared to peers. The distribution network is fairly spread across the rural and semiurban areas, leading to a strong growth of 23.6% in sales volumes in FY10 The rural sector contributed 45% to Hero MotoCorps total sales volumes in FY11 (up from 38% in FY08). Hero MotoCorp has the best distribution network in India with over 4,500 touch points (as of date), 45-50% of which are in rural areas.

Punjab National Bank

Parent Company: Government of India Sector: Banking and finance Segment: Urban and rural banking Target Group: International Banking Positioning: Complete Banking solutions

PNB operation management

In Banking Sector Value of Operations depend upon the productquality as well as the service quality model In PNB Homeostatic approach is being over the past few years and it has yielded a huge amount of profit. Thus reducing the error

Also collaboration with foreign firm, made PNB the most High Tech Bank in India following a very secured as well as a better performance matrix model than other banks.

Operational Process
Debit / credit cards Mobile banking I banking ATM based process (tech)

Supply Chain Finance

PNB offer two products on the supply chain to cater to the needs of both vendors and dealers: Electronic Vendor Financing Scheme (e-VFS) Electronic Dealer Financing Scheme (e-DFS)

BENEFITS ACROSS THE SUPPLY CHAIN: Buyer Seller Bank Reduce the cost of capital through improved Days Reduce the cost of goods Sales Outstanding (DSO) Build stronger, collaborative purchased and lower finance costs. relationships with customers.

Reduce working capital requirements through improved Days Payable Generate flexible, Outstanding (DPO) predictable cash flow Enhance customer retention Increase bottom line by supporting customers entire Enjoy a more stable Gain access to low-cost supply chain from end to supply base finance rates. end.

THANK YOU