Professional Documents
Culture Documents
ID
Name
14P095
Pulkit Jain
14P122
Abhijit Pradhan
14P135
Ashwini Jawale
14P136
Atul P Mishra
14P149
Mohit Maheshwari
14P150
Naman Singhal
14P160
Sachin Prasad
Agenda
Introduction
Objectives
JIT
E-Nagare System
Supplier/ Vendor Relationship Management
Green Initiatives
Logistics & Visual Cargo tracking
Insights from The Maruti Story
Introduction
1981- MARUTI UDYOG LTD was incorporated. The
company is engaged in the business of
manufacturing, purchase and sale of motor vehicles
and automobile spare parts
1982- License and Joint Venture agreement signed
between Maruti Udyog Ltd. & Suzuki Motor
Corporation Japan(SMC)
1983- Rolled out the first Maruti 800
Objectives
Maruti Suzuki India Limited has a
nationwide dealer sales and service
network.
The innovations in Supply Chain &
Logistics management have given positive
results in terms of Enhancement of operational efficiencies
Cost reductions
Attaining customer satisfaction
Sustainable logistics operations
Value Chain
PRIMARY
ACTIVITIES
INBOUND
LOGISTICS
Just-In-Time (pioneered
by Toyota)
Huge savings on
inventory management
costs
Sound demand
management system
Implementation of
Logistics improvement
systems
OUTBOUND
LOGISTICS
OPERATIONS
Eliminates unnecessary
costs using Lean
Manufacturing
Maintains constant prices
by using Value Added
Value Engineering
K-Engine (fuel efficient)
Plant used in many
models & well received by
customers
MARKETING &
SALES
Anytime Maruti - 24*7 tollfree helpline to attend to
customer grievances
Maruti On roadMaintenance & Repair
services
Maruti Finance Car
finance in 166 cities in
partnership with SBI
Free test drive to
customers
SERVICE
Excellent after-sales
service- 1600+ centers with
detailed information on
website
Motor training schools
Cashless insuranceInception of two subsidiariesMaruti Insurance Distributors
Services Pvt. Ltd. & Maruti
Insurance Brokers Pvt. Ltd.
E-Nagare
Visual Cargo Tracking
HUMAN
RESOURCE
MANAGEMENT
FIRM
INFRASTRUCTU
RE
PROCUREMENT
TECHNOLOGY
DEVELOPMENT
JIT at MSIL
The Company has adopted the Japanese System, JIT to achieve higher
operational efficiencies and reduce inventory carrying cost.
JIT improves the return on investment of a business by reducing inprocess inventory and its associated carrying costs.
To achieve JIT material supplies, the company gives preference to locally
based suppliers and encourages far distance suppliers to set up base
close to Maruti Suzuki`s facilities.
Over 76% of the company's 246 suppliers are located within 100 kms of
radius.
Have strategically located the suppliers of bulky components such as
instrument panels, fuel tanks, bumpers, seats, etc. adjacent to the
company's manufacturing facilities in the Suppliers' Park
E-Nagare System
Electronic Flow
Transformed the supply chain
Sequence of production plans from
the vendor to Maruti's shop floor,
which now sits at a two hour cycle
from 30 days in the past
Reduced the inventory hold up
Green Initiatives
All
packing
has been
converted
into
Reusable
packing
Check the
pollution
level of
trucks
getting
into
Maruti
Kaizen
theme &
conserve
usage of
Material
and yield
improvem
ent
Help
suppliers
get ISO
14000
certificati
on
Shikhar Initiative
Poor vendors were identified & eliminated
MACE-SPIDER CHART
Audit Points
Audit Score
Achieved Max.
Achieved
Score
Score
1 Production Preparation
10
16
63%
13
46%
11
73%
12
19
63%
16
16
100%
6 Quality audit
15
15
100%
7 Supplier control
10
10
100%
100%
10
13
77%
10 Operation Standard
11
12
92%
100%
100%
100%
89%
11
11
100%
16 Statistical method
Prevention of missing process/ wrong
17
assembling
18 Control of non conforming product
17%
100%
83%
19 Storage of product
100%
20 First-in , First-out
40%
100%
22 Implementation of inspection
33%
168
209
80%
Total Score
Achieved
Audit Score
22
100%
21
73%
46% 63% 100%
100%
40% 33%
20
63%
19
100%
83%
100%
18
100%
17%
17
16
100%
8
77%
100%
89%
92%
100% 100%
15
14
10
13
100%
12
WEAK AREAS
11
Rail Transport:
A-Star
Sea Transport:
Via Mundra Port
for domestic
supplies
Via JNPT for
import
Hub & Spoke model for distribution of vehicle & spare parts
Focus: Inventory Management & Delivery to dealer
It has the
largest dealer
network in
India
Its service
station
network is
also largest in
India
High focus on
adherence to
schedules
(when there
was waiting
for car
booking)
One example stated by Mr. R.C Bharagava in his book the Maruti
Story
So high was the focus on customers that once due to sweltering
summer in Delhi cars started facing the issue of vapour locks on fuel
tank which made them come to halt due to overheating.
To rectify the issue , Maruti got 30000 pumps from Japan and
replaced them free of cost. This was first case of recall in India.
Notable thing was that all pumps were flown which threw the foreign
exchange budget out of gear due to airfare paid in foreign currency
but priority was customer focus
Similarly vendors
have been selected
whose goals align with
Maruti.
Focus on punctuality,
quality
and
optimization