MANAGEMENT in Maruti Udyog Ltd

By:Arushi Mahanti D. Sunil Kumar Ayush Dhanuka Aditya Verma Ankit Dugar Ankit Mehta

Introduction Maruti

Udyog Ltd (Maruti), a joint venture

between Suzuki Motors of Japan (eleventh largest vehicle manufacturer in the world and the fourth largest manufacturer in Japan) and the Indian government, is the leader in India's automobile market. Maruti

has the widest product range among

Indian car manufacturers, with ten basic models and more than 50 variants.

Manufacturing Facility

Its manufacturing facilities are located at two facilitiesGurgaonandManesarsouth ofDelhi. Maruti Suzukis Gurgaon facility has an installed capacity of 350,000 units per annum.

The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions.

Manesar and Gurgaon facilities have a combined

Gurgaon facility The

Gurgaon Manufacturing Facility has three fully

integrated manufacturing plants and is spread over 300 acres (1.2km2). All

three plants have an installed capacity of

350,000 vehicles annually but productivity improvements have enabled it to manufacture 700,000 vehicles annually. The

Gurgaon facilities also manufacture 240,000

K-Series engines annually. The entire facility is equipped with more than 150 robots, out of which

Manesar Facility The

Manesar Manufacturing Plant was

inaugurated in February 2007 and is spread over 600 acres (2.4km2). Initially

it had a production capacity of

100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008.

The production capacity was further increased by 250,000 vehicles taking total

Quality management

Maruti measured the relative quality of dispatched vehicles on a random, daily basis through a quality index audit. To improve quality, Maruti had introduced various measures: Tracking surveys and direct customer contact in order to understand the problems faced by customers. Full-time task forces for improvement in initial quality study problems and departmental cross-

Productivity Maruti

turned around from a loss of Rs.2690

million in 2001 to a net profit of Rs.1045 million, in 2002. This turnaround had been facilitated by sharp improvements in quality and productivity, both in-house and at the vendors' end. In 2002, Maruti started a program "Challenge 50 initiative" to improve productivity by 50 % and reduce cost by 30 % by 2004-05. Maruti involved various component suppliers in Challenge 50. Productivity improvement programs were

Vendor management Maruti

was working on a 3.5% per annum

reduction in vendor prices by 2004-2005. Maruti

streamlined the sourcing and stocking of

materials and components through its Delivery Instruction system , one of Suzuki's best practices. This

system provided details of Maruti's

component requirements for every 15 days, across the different variants of the various models, to its vendors.

Vendor management

Vendor management became an important area as Maruti attempted to improve operational efficiency.

Maruti procured components worth about Rs.5,000 crores every year.

The company's top 10 vendors accounted for about 34 % of its aggregate purchases of components from vendors in India.

Sales Network As

of 31 March 2011 Maruti Suzuki has 933

dealerships across 666 towns and cities in all states and union territories of India. It

has 2,946 service stations (inclusive of dealer

workshops and Maruti Authorized Service Stations) in 1,395 towns and cities throughout India. It

has 30 Express Service Stations on 30 National

Highways across 1,314 cities in India.

Service sector

Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff.

Other automobile companies have not been able to match this benchmark set by Maruti Suzuki.

The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle

Maruti Insurance

Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram.

The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited

ConclusionEven

though Maruti was well

ahead of its other rivals, it realized competition could not be underestimated. Hyundai, Tata Motors and Ford were all formidable rivals.

Thank-You