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Maruti suzuki - Operations Management New Product Launch .

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Maruti suzuki - Operations Management New Product Launch .

  1. 1. MARUTI SUZUKI Operations 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
  2. 2. Maruti Suzuki Pegasus
  3. 3. Dimensions Length (mm) 4610 Width (mm) 1850 Height (mm) 1890 Wheelbase (mm) 2750 Ground Clearance (mm) 200 Kerb Weight (kg) 1980
  4. 4. Performance Engine 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)
  5. 5. Process Recommendations
  6. 6. Line Process • Very high volume and efficiency • 3000 cars per month in single shift • Kaizen Technique • Transformation to automation
  7. 7. Make to Stock Strategy Customer Order Chassis Components Mate Body Paint Interior Assembly Delivery
  8. 8. 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
  9. 9. 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 NH87 Nearest Domestic Airport: Pantnagar Nearest International Airport: Delhi 235 Kms
  10. 10. 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
  11. 11. 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
  12. 12. Layout Recommendations
  13. 13. Layout Recommendations LINE 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.
  14. 14. Plant Layout (S-Flow)
  15. 15. Scheduling Objectives • Minimize completion time • Minimize overall costs • Maximize resource utilization.
  16. 16. Scheduling (cont)…
  17. 17. Flow production scheduling • Sales of some products are subject to seasonal fluctuations • Have a fluctuating production programme, to cater to changing demand
  18. 18. Critical Success Factors • Cash Flows • Vendor Management • Inventory Management
  19. 19. Critical Success Factors • Industrial Relations & Compliance • Labour Relations • Distribution & Service Network • Company Image
  20. 20. Strategy Marketing Product Pricing Distribution Place Promotion
  21. 21. SWOT Analysis STRENGTH 1.Brand loyalty & trust 2.Service & Distribution Network 3.Japanese Technology 4.Market leader 5.Great Dealership WEAKNESS 1.Changing customer preferences 2.Appears Daddy’s Brand 3.Exports are not that good. 4.Lesser diesel models 5.Global image is not that big OPPORTUNITIES 1.Attraction of youth 2.Increasing Middle class income 3.Export small cars 4.Overseas Market THREATS 1.Foreign brands 2.Fuel Price
  22. 22. Competitive Advantages • • • • • • • • • • • • 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
  23. 23. High Risk Areas Examined
  24. 24. High Risk Areas Examined • Macro Factors (Out of Direct Control) 1. Political 2. Economic 3. Socio – Cultural 4. Technological 5. Legal • Micro Factors (Management Change) Vendor Reliability, Distribution Channels, Union Strikes, Emission control etc..
  25. 25. Macro Factors Political Factors • Continuous Fuel Price Revisions • 34% increase since 2010 • Inflationary Pressures • Rise in lending rates
  26. 26. 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
  27. 27. Macro Factors (cont).. Socio-Cultural Factors
  28. 28. Macro Factors (cont).. Technological Factors • Automobile design • Manufacture • Internet ?? Legal Factors • Acceptable Safety Standards • Emission Control
  29. 29. Micro Factors • Vendor Reliability • Distribution Channels • Union Strikes • Emission control • Fuel Efficiency
  30. 30. Any other important highlights • Sales are slump • It’s a niche segment  Aggressive pricing  Minimum Investment • Export options
  31. 31. THANK YOU

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