MANAGEMENT INFORMATION SYSTEM OF MARUTI SUZUKI LTD.

FLOW OF PRESENTATION
Introduction Information system at Maruti Suzuki Information requirement and system used by Supply Chain department. Key Challenges faced by Managers Overall Architecture Recommendations

MARUTI SUZUKI INTRODUCTION

The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. First company in India to mass-produce and sell more than a million cars. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800. Exports more than 50,000 cars annually and in India selling over 730,000 cars annually. Employees6,903 & Revenue37,522.4 crore

PRODUCT PORTFOLIO

800 (Launched 1983) Omni (Launched 1984) Gypsy (launched 1985) WagonR (Launched 1999) Alto (Launched 2000) Swift (Launched 2005) Estilo (Launched 2009) SX4 (Launched 2007) Swift DZire (Launched 2008) A-star (Launched 2008) Ritz (Launched 2009) Eeco (Launched 2010) Alto K10 (Launched 2010) Maruti Ertiga, seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande.

INFORMATION SYSTEM USED IN MARUTI SUZUKI

ORACLE E-BUSINESS SUITE

Many home-grown systems could not talk to each other, requiring staff. Standardizing on a single Oracle platform Oracle also assisted Maruti with change management. Maruti has a successful history of Oracle implementations. Dealer management system itself was developed using Oracle Fusion Middleware products.

INFORMATION REQUIREMENT AND SYSTEM USED BY SUPPLY CHAIN DEPARTMENT

INFORMATION REQUIREMENTS

Delivery by vendors: The management at MUL requires details of component requirements every 15 days for different variants of different models Management focuses on the elimination of wasteful activities in manufacturing processes. Vendors are helped in areas such as improving their productivity, reducing the number of their components that are rejected, reducing materials handling, improving their yield from materials, and reducing their inventories. This helps reduce their costs of production, and also reduces thecosts of the components required.

Vendor Quality Control Efficiency and productivity of vendors-timely delivery(including transportation and packaging) and appropriate quality and cost. Cost reduction by vendors Efficiency of dealers- focusing on two areas inventory and delivery to dealer. The management helps in their inventory management. It analyses the market, and everyday inventory, inquiry, orders and sales.

Maruti supports vendors in all possible ways, including finding technology partners, giving financial,technical and management support and bringing transparency in its dealings After sales service network- Information on sales of spare parts and the availability of high quality, reliable spare parts for its products to increase the penetration

IMPROVEMENTS IN SUPPLY CHAIN

The company has 246 local suppliers and 20 global ones they all function in a seamless manner. Of the 246 suppliers, Maruti has joint ventures with 14 of them and hold strategic equity stake to have a say in production and quality issues.

The company had adopted the Just In Time (JIT) to achieve higher operational efficiencies and reduce inventory carrying cost. The company strictly receives their supplies ordered the previous night in a two hour slot the next day. To achieve JIT material supplies, the company has given preference to locally based suppliers.

Maruti Suzuki has adopted the e-Nagare system of electronic flow which has completely transformed its supplier chain.

Over 76% of the company's 246 suppliers are located within 100 kms of radius. Maruti supports its vendors in all possible ways. This includes finding technology partners, giving financial, technical and management support and bringing transparency in its dealings. Fifty four of the top eighty component suppliers of Maruti Suzuki India compete against each other in what has been called 'Quality Circle Competition'

The idea behind the Quality Circle Competition was for the teams from different vendors to identify, discuss and resolve any one core business issue that will add value to the overall functioning of the company, thereby increasing overall efficiency.

MANAGEMENT INFORMATION SYSTEM (MIS)

It is the integration & Streamlining of business processes involving Process adherence, Structuring, storage & retrieval of data. This involves Instant generation of Business analysis report control and monitoring of Man and machine, Support operations and decision MAKING.

PROCESS FLOW
Station 1 Station 2 Station 3 Station AFTER SALES SERVICE

ENQUIRY

BOOKIN G
Positive/Negativ e

DELIVER Y
Positive/Negativ e
Water Juice Tea & Biscuit Snacks Friendly Flowers Chocolates Ganesh Ji

Positive/Negativ e

Water/ Professional

Water Cold Drink Tea & Biscuit Friendly

Positive/Negative Full technical tests Pre Advance Booking

Launch

Reminder Call

SUPPLY CHAIN MANAGEMENT:

Using a combination of Unix Shell programming, Oracle forms, .Net, and Windows FTP technology, there is transparency in the export supply chain. It covers the entire process from when a distributor orders a vehicle to production to shipment. It provides all stakeholders complete visibility of an order's progress. It also updates distributors' systems to facilitate their dispatch planning. It facilitates electronic transfer of orders and acknowledgements, and communicates the daily progress of a production plan, and dispatch status to the distributor. The entire process is IT driven and any exception during production, planning, and factory dispatch can be traced and corrective action made with no delay.

DATA MANAGEMENT SOFTWARE (D.M.S)

It can keep a record of all enquiries and can generate timely reports whenever required. At the time of enquiry feeding, it will ask for all required details. After collecting all information, it can generate a Performa Invoice/Offer Letter for the customer. DMS not only generates Performa Invoice or allot the enquiries to sales executives, but it will keep record of the enquiry until and unless the enquiry is not converted or closed. DMS generates several reports that help the management as well as the sales team. It generates reports like enquiry register, booking register, test drive register, visiting register, pending enquiry register etc.

Model of an Executive Support System (ESS)

KEY CHALLENGES
To increase the reliability and transparency of data shared. Creation of collaborative environment for suppliers . Providing single data source. To maintain compliance with ICA rules. To change behaviour of customer and internal structure of departments

SOLUTIONS & RECOMMENDATIONS

Work online in a virtual workplace. In an agile environment, improvement of services like operational & customer related. Economic Order Quantity Concept. To optimize process between operational and financial departments of organization. Inventory Management System can be a centralized. The cycle, from forecasting to production, is to be tightly integrated. Change Management.

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