Operations Management

1. 1
GROUP 1:
Sagar Bondre (B010), Abhishek Juriani (B073), Shreyash Kadam (B027), Bhagyashree Salvi (B057), Mansi Sawant
(A017), Amod Patel (B051), Sahaj Desai (A031), Shiv Safi (B055), Akshay More (B045), Ria Kalghatgi (B028)

2. • Hero MotoCorp Limited, popularly known as Hero
Motorcycles, is an Indian two-wheeler manufacturer,
producing motorbikes and scooters. Originally known
as Hero Honda Motors Limited, it was an amalgamation
of Hero (an Indian company) and Honda (a Japanese
company).
• Hero MotoCorp has manufacturing facilities located at
five locations in India. The five manufacturing plants of
Hero MotoCorp have a combined production capacity
of more than 9 million vehicles annually.
• Hero MotoCorp has over 7,000 dealership and service
center units in 29 states and four union territories of
India.
Introduction
2

3. Manufacturing Unit Overview Flowchart
Demand Forecast & Planning
Procurement (RM Purchase)
Planning
Production Inventory Dispatch
Distribution
Sales & Marketing
3

4. Key IT Initiatives:
▪ Strengthening Channel Partner capabilities using Integrated
Learning Management System (iLMS)
▪ The Company has conceptualized smart & connected factory using
industrial Internet of Things (IoT) for their Chittoor Plant
connecting shop floor to top floor.
▪ Streamlining Operations & Supply Chain by implementation of a
procurement platform which is integrated to the Enterprise
Resource Planning (ERP) system to minimize manual intervention.
▪ Enhancing Customer Experience & Engagement with launch of e-
commerce platform: www.hgpmart.com
▪ Functional Business Processes Automation by introducing digital
signature setup which has led to the reduction of invoice printing.
To improve customer satisfaction, the firm launched a ‘Job Card
Creation’ app using which Job Card at the service station can be
opened through the mobile.
IT INFRA
ECOSYSTEM
Consultants
& System
Integrators
Siemens
(SISL)
Data
Management
& Storage
Oracle
Computer
Hardware
Platforms
Dell
Enterprise
Software
Applications
SAP
Oracle
Operating
Systems
Platforms
Linux
Networking
/Telecom
Cisco
IBM
IT Infra Ecosystem
4

5. SAP BI Data Solution
ERP
SYSTEM
PURCHASING
DISTRIBUTIO
N
FINANCE
CRM & SALES
STORES &
INVENTORY
CUSTOMER
WEB
PORTALS & I-
LMS
DASHBOARDS
PRODUCTION
➢ Already using SAP Business Suite as part of its strategy
➢ Empowers decision makers through delivery of right
information which is timely, reliable and actionable
➢ As of today, 700+ BI users work on this system
➢ Dealers wanted to reap the benefits of BI such as real-
time analysis
➢ Hero MotoCorp augmented its existing systems with
Oracle Business Intelligence Enterprise Edition (OBIEE)
since Oracle Siebel CRM was already used by its
customer-facing teams and dealers
5

6. Business Process Architecture
▪ Prototyping model is used for analyzing and designing the system.
▪ Design ->Simulate ->Test & Validate
▪ Process of design and prototyping is repeated till the company is
satisfied that it should go for mass production.
6
Requirement Identification by
customer
Prototype Design
Prototype Implementation
Prototype Evaluation
Requirements
Fulfilled
System Conversion
Modifications & Corrections
System Operations & Maintenance
NO
YES

7. Demand Analysis (1/3)
7

8. Demand Analysis (2/3)
8

9. Demand Analysis (3/3)
9

10. Procurement Process
10

11. 11
Inventory Planning
Inventory Control Process:
1. Factors
• Cost of holding
• Cost of placing order
• Cost of Shortage
2. Inventory Types
• Raw Materials
• Finished Goods
• Work in Progress
• Cyclic inventory
3. Inventory Analysis
• ABC analysis
• Fixation of stock levels
4. MIS reports
RAW MATERIALS
AUTO COMPONENTS
FINISHED GOODS
PURCHASE
DEPARTMENT
PRODUCTION
DEPARTMENT
DISTRIBUTION
MIS System
Suppliers
Input Stock
Output Stock
Database

12. 12
Inventory Process

13. Production Process (1/2)
Overview of Production Process:
 Market demand is forecasted.
 Plant capacity & Production o/p is planned.
 Material is requisitioned
 Material is purchased from suppliers.
 Bikes are manufactured.
 After inspection, bikes are dispatched to Warehouse.
 Distributed to dealer network for last mile delivery to customers.
Supply
Chain
Module
Vehicle Assembly
Wielding
Body
Assembly
Chassis
Assembly
Axle
Assembly
Transmisson
Assembly
Painting
Engine
Assembly
PDI
Dispatch to
Warehouse
Dealer
network
Sr.no Plant Location (India) Plant Capacity
(Mn)
1 Halol-GJ 1.8
2 Gurgaon-HR 6.2
3 Daruhera-HR
4 Neemrana-RJ 0.75
5 Haridwar-UK 0.5
Total Capacity 9.25 Mn
13

14. Production Process (2/2)
Role of IT in production process:
• Smart Manufacturing
• Quality Control
• Automation
• Predictive Analysis
• Artificial Intelligence
SIPOC Model
Suppliers
• Auto part
components
• Paints
• Tyres
Inputs
• Raw Materials
Steel,
Aluminium
• Crude oil
derived plastics
Process
• Process
confirmation &
traceability
implementation
• Quality control
& Zero defects
Output
• Finished Goods
• Bikes
• Moped
Customers
• Dealers
• Channel
Partners
14

15. Distribution Process
Factory
Carry
&
Forward Agent
Depot
Dealer
Authorised Service
Centre
Dealer Branch
Rural Sales Outlet
Multi / Sub-Dealer
Customer
Customer
Customer
Customer
15

16. Value Chain
SUPPORTIVEACTIVITIES
FIRM
INFRASTRUCTURE
Administrative, legal and accounting task, general management
HR MANAGEMENT Recruiting, training, development
TECHNOLOGY
DEVELOPMENT
R&D, product and process improvement
PROCUREMENT Purchasing of raw materials, machines, supplies
PRIMARY ACTIVITIES
Inbound
logistics
Operations Outbound
logistics
Marketing
and sales
After sales
/ service
16

17. The Way Forward
17
Garden Factory at Chittoor (Andhra Pradesh):
- Green and sustainable manufacturing.
- Total installed capacity will increase to ~11 million units and generate around 15,000 jobs
Reduced Carbon Emission:
- In FY’19, energy intensity reduced by 4%
- e-signatures / low dependence on paper
Massive transformation in April 2020:
- Implementation of BS-VI emission norms (eco-friendly regulations)
Strong IT Infrastructure:
- Increase in operational efficiency
Value-added Services to Customers:
- Technologically connected
- Enhanced safety measures