OPERATION COST

MANAGEMENTHYUNDAI MOTOR
INDIA

TEAM SIGMA
CHRIST UNIVERISTY INSTITUTE OF MANAGEMENT

 This is a case of Hyundai Motor India(HMI),which revolves around operation

cost management.
Some key points

HMI known for operating efficiency of almost 100%

Constant innovation and improvement company's philosophy
Major operating costs includes
Material handling cost
AIR FREIGHT COST
Contract expenses
Equipment maintenances

AIR FREIGHT
Regular air freight turned out be

matter of concern.
HMIs material management team were

looking for new alternatives to reduce

COST INCURRED

airfreight.
DR frame tape is a typical raw material that

30%

falls under regular air freight from

South Korea.
It is a thin film component adhesive in nature

70%
regular air freight parts

rest

SUGGESTIONS-SHORT TERM
Forecasting the seasonal demand by using predictive
analysis

Improving inventory management techniques

IN THE LONG TERM

Implement KEIRETSU model so that local vendors will be
empowered with latest technology available
BUSINESS PARTNERS

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