BY-: Amit Anand (400907031) Pranav Sood (400907018)

INTRODUCTION
In Indian market, customers see the quality of the product and simultaneously the price of that product. So, to be a winner in Indian market, quality of the product plays a major role with a peep into the different segmented customers

Total quality management (TQM) has been widely accepted as the ways and means for maintaining quality in supply chain . From design to manufacturing, from factory to retailers or dealers or to end customers MSIL is accepting TQM approach for achieving quality excellence throughout.

The products with high quality and low cost are available through out the world. This factor increased the pressure on companies around the world to improve their goods and services. Technologies and methodologies such as total quality management (TQM) have helped them to do this

TQM PHILOSOPHY AT MARUTI

At MARUTI , TQM emphasizes 1. Top management commitment. 2. Product design and manufacturing for quality. 3. Continuous Improvement 4. Focus on customer satisfaction 5. Extensive education and training of employees. 6. Employees involvement and empowerment. 7. Development and maintenance of an effective

in house quality assurance system, as well as

an effective suppliers quality management system.

TOP MANAGEMENT COMMITMENT

Top management is committed to quality by clearly stating quality objectives in mission statements and committing sufficient amount of resources for successfully accomplishing quality objectives. Top management commitment is highly collaborative throughout the business

processes for achieving competitiveness in world market place using a common

vision of quality excellence which starts with focus on total customers satisfaction.

The success of any effort targeted at changing the operational philosophy at

MARUTI is strongly linked with the top management commitment. It is the top management which decides on the various awards/rewards and recognitions for individuals thus motivating them to bring a more holistic approach in their work aimed at excellence.

At MARUTI product design translates the customer expectation data into technical specifications of the product design not only to meet the needs but also to exceed the expectations of the customers. They use design of experiments, a statistical technique for analyzing customer expectation data, and prioritizing expectations for building them into the quality of product design. They use failure mode analysis, for building reliability in the products.

PRODUCT DESIGN

Robust design techniques for designing the product to withstand any changes in
its operating environment. Value engineering is given utmost importance to reduce the cost.

CAD designing is made in PRO E WILDFIRE 5.0 and designs are deployed
Concurrent Engineering: product design and process engineering work simultaneously to speed up the process of designing the product and developing the processing instructions and tooling requirements for manufacturing.

MANUFACTURING FOR QUALITY

Producing defect free product in the first go.

5S

Kaizen

3G, 3K

MPS/ Lean

5S THE FOUNDATION FOR IMPROVEMENT

3G & 3K
3G means In case of an abnormality, all the concerned members should actually go to the place where the problem has occurred, see the actual thing & take realistic action to solve the problem. GENCHI- Actual Place GENBUTSU-Actual Timing GENJITSU- Actually 3K concept is What has been decided must be followed exactly as per the standard. These concepts are displayed prominently at work place across the company.

KIMERAREETA-What has been decided

KIHON DORI- Exactly as per standard KICHIN TO MAMORU- Must be followed

LEAN PRODUCTION SYSTEM

A business operating philosophy That accelerates speed and reduces the cost from all business processes by removing waste.

Lean focuses on the customer

Value is defined by the customer, and all activity is aligned to provide maximum value to the customer

LEAN TOOLS & SUPPORTING STRATEGIES

Kanban Manufacturing Cells Heijunka 5Ws & 1H Visual control Team building Problem solving Standardized processes Kaizen TPM SMED (setup reduction) Poka-Yoke Cycle time reduction Andon Value stream mapping Jidoka

WHY LEAN ?
There are increased cost pressures. Competition has lower-based cost structure. There are increased quality pressures. There is increased pressure for on-time delivery. There is increased competition due to global environment. Ongoing desire to improve work environment and safety. Desire to improve competitive edge.

COMPUTER AIDED MANUFACTURING

At Maruti ,production takes place through the help of sophisticated computer aided manufacturing systems which are often driven by the cad systems. This ensures 1. 2. 3. 4. 5. Product quality Shorter design time Production cost reductions Database availability New range of capabilities

VIRTUAL REALITY TECHNIQUE & VALUE ANALYSIS

Computer technology used to develop an interactive, 3-D model of a product from the basic CAD data Allows people to see the finished design before a physical model is built Very effective in large-scale designs such as plant layout

Value Analysis focuses on design improvement during production Seeks improvements leading either to a better product or a product which can be produced more economically

WORK IN PROGRESS INSPECTION

Inspection of parts are carried at various stages of the production line Inspection of works in progress may involve 100% inspection, sampling

inspection and process control.

100% inspection is carried out by the operator or an inspector or by a robot at the workstation. Various Poka Yokes are also installed on different lines to rule out any chance of defect. However, at large quality for work in progress is controlled through Statistical Process Control ( SPC) in which the process is continuously monitored against the upper and lower control limits of a SPC chart predetermined for the process under control using statistical techniques.

OUTGOING INSPECTION & RECEIVING INSPECTION

For total customer satisfaction zero defect quality is assured by outgoing inspection before any product is packaged and shipped to customer. Each and every finished product is run through all possible test procedures and thoroughly inspected before it is packaged and shipped to customers. All incoming raw materials, parts and subassemblies must be inspected at the receiving inspection to insure zero defect quality or the quality requirements specified in the purchase agreement. For minimizing cost of receiving inspection, and insure high quality of incoming materials, customers prefer to choose high quality raw materials and parts suppliers using extensive quality audit of their potential suppliers' plants.

VENDOR SELECTION CRITERIA

Based on the Vendor Performance ,Supply Chain/ Engineering selects the Vendor for New Part development/ Second source A team of Supply Chain/ Engineering then visits & performs an assessment As per Marutis laid down criteria produced below After MD approval, SC issues Letter of Intent to Vendor.

CRITERIA FOR VENDOR SELECTION 1. Vendor's Past Problem on Quality, Cost & Delivery. 2. Vendor technological Capability in Designing, Manufacturing, Testing 3. Management of company wrt to professionalism, Clarity in Org structure. 4. Financial health 5. Tool making capability 6. Quality system in the Organization 7. Proximity to enable JIT deliveries 8. Loyalty

VENDOR QUALITY CONTROL

Vendors are grouped together Training them in quality management Assisting them in obtaining ISO 9000 certification

Quality management system such as ISO 9000/ QS 9000

Cluster Approach

March 31, 2013: 204 vendors-ISO 9001/2 certification, 162 vendors-QS 9000 certification 26 vendors -TS 16949 certification. Periodic vendor quality system audits to ensure that quality standards are sustained

JUST IN TIME
TO COME CLOSE TO IDEAL JIT MUL TOOK THESE STEPS

Couple of MULs major suppliers production facility in MUL compound

MUL JV with most imp. Suppliers are located near the plant

Major delivery happens from suppliers within 100 km

1992 Inventory stock -- 57 days

2013 Inventory stock -11 days

MUL developed low cost IT solution for better coordinating with suppliers

CONTINOUS IMPROVEMENT & PROBLEM SOLVING

Manufacturing Paradigm:Planning by setting a target and time-line, dividing into action plan with value to each factor/element

Doing the standardized operation as decided

Checking through gap analysis to check whether the operation is really giving the desired results

Acting to freeze if effective or correct.

KAIZEN
MARUTI is committed towards continuous improvements. Every business unit is given a target number of Kaizens which it has to achieve in a defined period of time.

There are awards/recognition to motivate the individuals.

Kaizens (shop floor improvements), has drastically reduced the consumption of power and water and the waste generation in its facilities
Kaizen is an improvement method that includes ALL EMPLOYEES:

Improvements should be made within 30 days

Small change
Changes with realistic constraints Begins with you Focus on what you can do

Some other problem solving techniques used at MSIL are:Six sigma 4M analysis

5W1H analysis
Quality circles Benchmarking

FOCUS ON CUSTOMER SATISFACTION

The customer feedback is taken after 72 hours of the sale. If any problem exists, the marketing personal meets the client directly To trace the satisfaction level of the customers, customer feedback is taken via Customer Feedback Form. If the marks in the customer feedback form are less than 7, an apology letter is sent to the client, the problem is sorted out and the client is treated with a token of gift.

The CCM Customer Care Manager takes care of the complaints and initiates corrective
and preventive actions Customer Complaints received by dealer are through E-mail Internal Feedback Forms Direct Maruti Udyog Limited Telephone Letter Consumer Forum / Legal Notices

Maruti dealer and service centre network is one of its greatest strengths and
it scores over many manufacturers due to this strength only. The company has set up a committee of directors to negotiate with the 375odd vendors on a regular basis in order to reduce costs and improve productivity, both within and outside the company. To stop imitation of its parts Maruti started the YOUR MARUTI campaign where it stressed on guaranteed outstanding performance with Maruti Genuine Parts. Performance that comes from genuine parts, made to the standards of the originals fitted in every new Maruti

CUSTOMER SATISFACTION SURVEY

120 100 80 60 40 20 0 Maruti General Motor Honda Ford Tata

In customer satisfaction Maruti Udyog Ltd. is No. 1 from last 12 yrs. Their current customer satisfaction index is 98.4%. they are trying hard to raise customer satisfaction index up to 100%.

DATA MANAGEMENT SOFTWARE (DMS)

DMS keeps a record of all enquiries and generates timely reports whenever required. At the time of enquiry feeding, it asks for all required details. After

collecting all information, it generates a Performa Invoice/Offer Letter for the customer. DMS not only generates Performa Invoice or allots the enquiries to sales executives, but it keeps record of the enquiry until and unless the enquiry is not converted or closed. This enables Maruti who believe in customer care and 100% conversion of enquiry.

Screen shot of the DMS software

Screen shot of the DMS software

EMPLOYEE INVOLVEMENT & TRAINING

Transfer of basic work dispositions concerned three things

Commitment and discipline

Cleanliness and quality awareness

Co-operation and communication

( Stressing the taking of responsibility, punctuality and attendance)

Quality circle
Group discussions among employees in different departments are conducted on a monthly basis in order to discuss and resolve problems relating to their areas of operation..

Suggestion scheme
Based on the belief that individuals contribute to improvement in growth, MUL has a suggestion scheme in which MUL promotes participation of all employees at all levels. The average number of suggestions made per employee has improved by approximately 24% in fiscal 2013, when it received 98,000+ suggestions. MUL has won "Excellence in Suggestion Scheme" award instituted by the Indian National Saving Scheme Association regularly for four years and 15 trophies in quality circle competitions organized by the Confederation of Indian Industries.

CULTURE BUILDING INITIATIVES

Japanese Management philosophy of Team Spirit
Common uniform Open office Common Canteen Open Office Easy accessibility, Speedy Communication and decision making Morning Meetings Morning Exercises

JAPANESE WORKING METHODS

Plant managers actually spend lot of time on the shop floor, and remain with supervisors rest of the time.

Management by walking around.

Supervisors will always be with workers all the day

MUL has fostered environment of trust, and team work by transferring Japanese work practices

Four apparently innocuous innovationscommon uniforms, toilets, canteens, and open office spaces for all level of employees

Avoiding formal wear, separate offices, dining rooms and toilets for executives. This has reduced the differentiation among workers.

The teamwork on the shop floor involved a wide scope of job enrichment and job rotation scale

ENTERPRISE UNION MANAGEMENT

By establishing company union MUEU(Maruti Udyog employee union), for various shop floor decisions Established for consultation and co-operation rather than strikes and agitation

A paternalistic relationship has ensured job security, high wages and some decision making authority in exchange for industrial piece
Every body signs a good conduct undertaking MUL has de regulated MUEU and now it has regulated MUKU (MARUTI UDYOG KAMGAR UNION)

COST SAVINGS
Total energy consumption per vehicle is down by 26 % over the last six years.

Power Consumption has come down by 31 % over the last six years.

Water Consumption per vehicle has dropped by 63% over the last six years.

Landfill waste has come down by 67 % over the last six years.
Carbon Dioxide emissions per vehicle (produced during manufacturing) are down by over 39% in last five years.

FINANCIAL RESULTS
2011-12 (in millions Rs) Total Revenue Profit before tax Tax expenses Profit after tax Balance brought forward 371272 21462 5110 16352 118578 2012-13 (in million Rs) 364139 31088 8202 22886 100499

Profit available for appropriation

Balance carried forward

134930
130777

123385
118578

Crisil Ratings
The Company has been awarded the highest financial credit rating of AAA/stable (long term) and A1+ (short term) on its bank facilities by CRISIL. The rating underscores the financial strength of the Company in terms of the

highest safety with regard to timely fulfillment of its financial obligations.

FEW AWARDS
DEMING PRIZE to Sona Koyo Steerings Ltd. In 2003 D Power Customer Satisfaction Index (CSI) Study ranked the Company highest for the 12th time in a row. J D Power Asia Pacific 2012 India Vehicle Dependability Study ranked Zen Estilo and Swift DZire as the most dependable cars. JD Power IQS ranked Zen Estilo and Swift DZire highest in the compact and entry

midsize segment respectively .

CNBC TV 18 Overdrive awarded Compact Car of the year 2012 to new Swift. NDTV CNBs Premium hatchback of the year awarded to new Swift. BBC India Top Gears Small car of the year 2012 awarded to new Swift. ICOTY 2013 Indian Car of the Year 2012 awarded to new Swift. Bloomberg UTVis Compact Car of the Year awarded to new Swift. The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki

in the seventh position in 2012 and the sixth position in 2013 among the brands
researched in India

THANK YOU