Maruti case

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<ul><li><p>5/28/2018 Maruti case</p><p> 1/14</p></li><li><p>5/28/2018 Maruti case</p><p> 2/14</p><p>INTRODUCTION</p><p> In 1982 with the help of govt. of India,Maruti entered into a joint venture withSuzuki motors of Japan.</p><p> Plant was established at gurgaon inharyana.</p><p> The entire supply chain needs to be</p><p>monitored to get the best quality, so thatthey establish Maruti Center ForExcellence(MACE)</p></li><li><p>5/28/2018 Maruti case</p><p> 3/14</p><p> As much as 80% of an average maruti</p><p>suzuki vehicle is made of vendor supplied</p><p>part.</p><p> Maruti Suzuki has 300 odd vendors.</p><p> Maruti Suzuki established MACE in 2004with the company and 21 vendors pooling</p><p>funds for seed money.</p></li><li><p>5/28/2018 Maruti case</p><p> 4/14</p><p> Maruti classifies its vendors as Tier-1 and Tier-2while around 300 Tier-1 vendors supplycomponents a directly to the company, a handfulof Tier-2 vendors supply assembly parts of various</p><p>components to the Tier-1 vendors.</p><p> Certain child parts are got from Tier-3 vendors.</p><p> Maruti has a 500 employees strong department tomanage relationship with its suppliers includinglooking at function such as supply chainmanagement, engineering, quality control, humanresource etc.</p></li><li><p>5/28/2018 Maruti case</p><p> 5/14</p><p>Quality check process</p><p>Although the quality check at the</p><p>Maruti plant, it is impossible for</p><p>manufacturers to check all the</p><p>components going to assembly line.</p><p> So, the importance given to</p><p>monitoring facilities of the vendorsincreases.</p></li><li><p>5/28/2018 Maruti case</p><p> 6/14</p><p>Steps for quality</p><p>improvement. There is two steps process at the</p><p>maruti plant to improve the quality.</p><p>1 Marutisown shop floor.</p><p>2 vendors end.</p></li><li><p>5/28/2018 Maruti case</p><p> 7/14</p><p>Marutisown shop floor.</p><p>Marutisproduction system in the country drawsthe best practices of parent company SUZUKI</p><p>motors.</p><p>Lean manufacturing:it stands for man, machines, materials, and</p><p>methods. 4Ms.</p><p>For the improvement of yield.</p><p>1 altering stamping technique.</p><p>2 maximise steel sheet utilisation</p></li><li><p>5/28/2018 Maruti case</p><p> 8/14</p><p> In last five years MACE has channelized all</p><p>its efforts in upgrading Tier-I and Tier-II</p><p>vendors, it was noticed that both were not</p><p>getting similar initiatives.</p><p>MACE counselors provide suggestions onmanufacturing process upgradation.</p></li><li><p>5/28/2018 Maruti case</p><p> 9/14</p><p> MACE arranges knowledge session for</p><p>both Tier-I &amp; Tier-II, and this cluster</p><p>approach was very effective.</p><p> When the solution is implemented, MACE</p><p>counselors visit the vendorsfactory again.</p><p> With the relationship between Maruti and</p><p>its vendors has reduced the rejection rate.</p></li><li><p>5/28/2018 Maruti case</p><p> 10/14</p><p> Motherson Sumi system started its</p><p>association with Maruti company for</p><p>supplying wiring harness and now it is</p><p>supplying grills, door handles, mirrors,lighting system and cutting tool used in</p><p>machine shop.</p></li><li><p>5/28/2018 Maruti case</p><p> 11/14</p><p> If maruti were to bring a new hatchback in thecar market within the next few months.</p><p> Tier-I vendors and tier- II vender run their</p><p>factories for high-volume production trials,that problems arising on each assembly linecan be identified.</p><p> Becauseeverybody in the chain work closely,all of us are well-prepared to meet deadlines.Now we set targets for next three to fiveyears.</p></li><li><p>5/28/2018 Maruti case</p><p> 12/14</p><p> Support of manufacturers and tire 1 suppliersare indispensable to the existence of tier 2suppliers.</p><p> Started with MACE it annul rejection rate was</p><p>4 % . This translated in parts per millions of0.0004 and the company kick-started its 0PPM drive by implementing Marutis QualitiyCircle (QC) in its factory.</p><p> The focus then shifts to using low-cost</p><p>automation. The company runs two drill machines on one</p><p>motors.</p></li><li><p>5/28/2018 Maruti case</p><p> 13/14</p><p> This initiative resulted in a 50 per cut in the</p><p>factoryselectricity consumption.</p><p> Today close to 22 Tire=II suppliers maintain0 PPM) rejection.</p><p> Improving your bottom line while enhancinglong term customer satisfaction and the</p><p>lifetime value your customer.</p></li><li><p>5/28/2018 Maruti case</p><p> 14/14</p></li></ul>