Process followed in Mahindra and Mahindra

1. Knowledge Management
SUBMITTED TO :-
MR SUPRATIK GHATAK
SUBMITTED BY:-
NAVEEN RAMESH YADAV (C-15)
(PRN-15020441150)

2. Objectives
 Understand Business process reengineering and Six
Sigma Process adopted by Mahindra and Mahindra
 To understand the improvement in the production
process of Mahindra and Mahindra after the adoption
of Business Process Reengineering and Six Sigma
process
 To understand the difficulties in the implementing the
process so that it gets inculcated in the work culture of
organization

3. Introduction
 Mahindra and Mahindra is one of the few companies where the
launch of six sigma process is very successful. Almost 99% of the
products manufactured by the company are defect free. It is
estimated that the company incurs a defect of 3.4 products per
million of products manufactured. This has been possible due to
company’s adoption of six sigma process.
 Also the company is ISO certified. The company got this certification
for the tractor division and R&D Division in 1990s

4. Problem in mid 1990s
 In the mid 1990s, Mahindra & Mahindra was facing problems such
as inefficiencies, production issues, not getting desired output level
and poor quality. The problem occurred at their plants in Igatpuri
and Kandivilli in Maharashtra
 The reason for the above problem were as follows :
 Unproductive work force
 The management was not abreast of how to improve the quality of
products it manufactured

5. Solution for the problem
 The first problem was addressed by adopting the process – Business
Process Reengineering
 The second problem was addressed by adopting six sigma process

6. Standard Industrial process used
 What does Business Process Reengineering mean?
- It involves redesigning of the core operational process of organization
in order to bolster production and quality, reduce cycle time.
- In this process the company follows five major steps:
1) Align its goals as per the needs of customer
2) Redesign operational process
3) Segregate business into different functional team
4) Consider basic organizational & people issues which may arise any
5) Implement the process so that it gets inculclated in the
organizations work culture

7. Standard Industrial process used

8. Standard Industrial process used
 What does Six Sigma Process mean?
- Six Sigma means a measure of quality that strives near zero defects.
- The process involves the usage of two six sigma sub methodologies
1) DMAIC (define, measure, analyse, improve, control) – It is a system
used in case the current system is falling below specification and is
failing to meet its output objective.
2) DMADV (define, measure, analyse , design , verify) – It is a system
used in case we are developing a new product or process at six
sigma quality levels

9. Challenges faced in implementing Business
Process Reengineering :
 Labour union Resistance to change in organization policy
 Fear of downsizing
 Change in organization culture and employees adaptability to new
culture
 Several job roles merged into 1 job role
 Fear of losing jobs
 Finding critical resource from the organization
 Integration of the different systems in IT

10. Challenges faced during implementation of
Six Sigma Program:
 Execution of projects : It is very important to execute the project in
alignment with the organization goals .
 Finding the correct talent to be trained: As training is a costly affair to the
company. So finding the right employee and retaining the employee for a
good duration was a great challenge for the Mahindra and Mahindra.
 Finding the right mentors for the job : In 1990s the talent for six sigma
process was very scarce in the market and hence having such a mentor and
training the talent in the organization was huge task.
 Imbibing the six sigma process in the organizations work culture : It took
time to implement the process in each and every section of company so
that it becomes a part of its work culture
 Time frame : The results of Six Sigma program implementation cannot be
seen overnight. It takes time to train and conduct the activities of business
in line with the process.

11. Benefits of Business process
reengineering :-
- Reduce Cost
- Reduced Cycle time
- Reduction in management layers
- Acceleration in information flow
- Eliminates error and rework caused by multiple handoffs
- Reduction in fragmentation of work
- Establish clear ownership of process
- Workers take the responsibility of the output they produced
- It helps the management to measure their performance with prompt feedback
- Reduction in employee costs from 12.4% in 1994 to 10.1% in 1996
- Value added per employee increased from 0.3 million in 1994 to 0.46 million in 1996
- Reduction in Inventory cost and better ordering distribution across the plant

12. Benefits of Six Sigma Process:-
 Reduction in the defects in the automobile by 75% in Mahindra
and Mahindra
 Customer satisfaction with respect to usage and durability of
company’s products increased
 Cost of rework reduced by 32%
 Reduction in cycle time reduced from 15% to 4%
 There has been reduction in the waste produced due to the
above followed process
 Cost of maintenance done to the newly manufactured cars
dropped from 10% to 2%

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