maruti suzuki - operations management new product launch
DESCRIPTION
TRANSCRIPT
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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
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Maruti SuzukiPegasus
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DimensionsLength (mm) 4610
Width (mm) 1850
Height (mm) 1890
Wheelbase (mm) 2750
Ground Clearance (mm) 200
Kerb Weight (kg) 1980
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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)
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Process Recommendations
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Line Process
• Very high volume and efficiency
• 3000 cars per month in single shift
• Kaizen Technique
• Transformation to automation
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Make to Stock Strategy
Components
Chassis
Body
Paint
Interior Assembly
Mate
Delivery
Customer Order
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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
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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
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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
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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
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Layout Recommendations
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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.
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Plant Layout (S-Flow)
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Scheduling
Objectives• Minimize completion time• Minimize overall costs• Maximize resource utilization.
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Scheduling (cont)…
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Flow production scheduling
• Sales of some products are subject to seasonal fluctuations
• Have a fluctuating production programme, to cater to changing demand
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Critical Success Factors
• Cash Flows • Vendor Management• Inventory Management
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Critical Success Factors
• Industrial Relations & Compliance• Labour Relations • Distribution & Service Network • Company Image
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StrategyMarketing
Product
Pricing
Distribution
Place
Promotion
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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
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• 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
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High Risk Areas Examined
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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..
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Macro Factors
Political Factors• Continuous Fuel Price Revisions
• 34% increase since 2010
• Inflationary Pressures
• Rise in lending rates
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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
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Macro Factors (cont)..
Socio-Cultural Factors
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Macro Factors (cont)..
Technological Factors• Automobile design• Manufacture• Internet ??Legal Factors• Acceptable Safety Standards• Emission Control
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Micro Factors
• Vendor Reliability
• Distribution Channels
• Union Strikes
• Emission control
• Fuel Efficiency
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Any other important highlights
• Sales are slump
• It’s a niche segment Aggressive pricing Minimum Investment
• Export options
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THANK YOU