MARUTI SUZUKIOperations Management

Prof. Suresh Dadlani

- Kishan Gupta- Sourabh Gupta- Anant Harichandan- Shardul Ingle- Prasoon Jadhav- Mansi Jain- Prathamesh Juwale- Prashant Keswani- Onkar Khamkar- Mohammad Mudassir Khan

Maruti SuzukiPegasus

DimensionsLength (mm) 4610

Width (mm) 1850

Height (mm) 1890

Wheelbase (mm) 2750

Ground Clearance (mm) 200

Kerb Weight (kg) 1980

PerformanceEngine size (L) 2.2

Power (BHP@rpm) 135@6000

Torque (NM@rpm) 250@1750-2000

Power/Weight (BHP/ton) 68

Torque/Weight (NM/ton) 126

0-100 kmph 4 sec

Top speed 247 kmph (Unverified)

Process Recommendations

Line Process

• Very high volume and efficiency

• 3000 cars per month in single shift

• Kaizen Technique

• Transformation to automation

Make to Stock Strategy

Components

Chassis

Body

Paint

Interior Assembly

Mate

Delivery

Customer Order

Capacity Recommendations• Indian SUV segment is on the rise

• Sales rising up 59% to 3,63,000 in 2012 • 1M by 2019

• Our car targets both SUV’s and MUV’s

• Plant capacity is 6000 units/month in 2 shifts

• Line has to be setup @ 15 JPH

Site Recommendations• Site recommended-Pantnagar,Uttrakhand• Developed by-SIDCUL• Area -3300 sq acre• Population-3,50,00• Location-Located at National Highway no. NH-87. 235 Km

from National Capital Delhi and 300 Km from State Capital Dehradun.

• Connectivity-Nearest Rail Yard: 10 Kms• Nearest National Highway: Situated on National Highway NH-

87• Nearest Domestic Airport: Pantnagar• Nearest International Airport: Delhi 235 Kms

Factors for our site selection

• Proximity to source of supply:– Reduce transportation costs of perishable or bulky raw

materials

• Proximity to labor:– Local wage rates, availability of special skills

Factors Related to Resources • Land availability, Land suitability, Land cost• Energy availability, energy cost• Water availability, water quality, water cost

Factors Related to the Infrastructure

• Government Stability and Availability of Financial Institutions, Strength of Financial Institutions

• Government taxes• Transportation availability, Transportation cost• Equipment availability, Equipment Cost• And finally, Competitors’ size, strength and

attitude in that region.• Other considerations:

– Options for future expansion

Layout Recommendations

Layout RecommendationsLINE LAYOUT• Large volume of production.• Low variety.• Low flow time required.• Higher utilization of equipment.• Lower degree of man power will suffice• Low material handling.

Plant Layout (S-Flow)

Scheduling

Objectives• Minimize completion time• Minimize overall costs• Maximize resource utilization.

Scheduling (cont)…

Flow production scheduling

• Sales of some products are subject to seasonal fluctuations

• Have a fluctuating production programme, to cater to changing demand

Critical Success Factors

• Cash Flows • Vendor Management• Inventory Management

Critical Success Factors

• Industrial Relations & Compliance• Labour Relations • Distribution & Service Network • Company Image

StrategyMarketing

Product

Pricing

Distribution

Place

Promotion

SWOT Analysis

STRENGTH1.Brand loyalty & trust

2.Service & Distribution Network

3.Japanese Technology4.Market leader

5.Great Dealership

OPPORTUNITIES1.Attraction of youth

2.Increasing Middle class income

3.Export small cars4.Overseas Market

THREATS1.Foreign brands

2.Fuel Price

WEAKNESS1.Changing customer

preferences2.Appears Daddy’s Brand

3.Exports are not that good.

4.Lesser diesel models5.Global image is not that

big

• Image• Cost leadership• Revenue Stream Generation• Maruti True Value• Sales Network• Resale Value• Green Approach• Distribution Channel• One stop shop• Maruti Accessories• Authorized service stations• Maruti Driving School

Competitive Advantages

High Risk Areas Examined

High Risk Areas Examined• Macro Factors (Out of Direct Control)1. Political2. Economic3. Socio – Cultural4. Technological5. Legal• Micro Factors (Management Change)Vendor Reliability, Distribution Channels, Union Strikes, Emission control etc..

Macro Factors

Political Factors• Continuous Fuel Price Revisions

• 34% increase since 2010

• Inflationary Pressures

• Rise in lending rates

Macro Factors (cont)..Economic Factors“Car sales can only increase when people have more income, people need money to run their car. This is only possible when there is economic growth” – RC Bhargava, Chairman, Maruti Suzuki India• Credit Financing• Low Per Capita Income• Rising Prices

Macro Factors (cont)..

Socio-Cultural Factors

Macro Factors (cont)..

Technological Factors• Automobile design• Manufacture• Internet ??Legal Factors• Acceptable Safety Standards• Emission Control

Micro Factors

• Vendor Reliability

• Distribution Channels

• Union Strikes

• Emission control

• Fuel Efficiency

Any other important highlights

• Sales are slump

• It’s a niche segment Aggressive pricing Minimum Investment

• Export options

THANK YOU