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  • 5/28/2018 Maruti case


  • 5/28/2018 Maruti case



    In 1982 with the help of govt. of India,Maruti entered into a joint venture withSuzuki motors of Japan.

    Plant was established at gurgaon inharyana.

    The entire supply chain needs to be

    monitored to get the best quality, so thatthey establish Maruti Center ForExcellence(MACE)

  • 5/28/2018 Maruti case


    As much as 80% of an average maruti

    suzuki vehicle is made of vendor supplied


    Maruti Suzuki has 300 odd vendors.

    Maruti Suzuki established MACE in 2004with the company and 21 vendors pooling

    funds for seed money.

  • 5/28/2018 Maruti case


    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

    components to the Tier-1 vendors.

    Certain child parts are got from Tier-3 vendors.

    Maruti has a 500 employees strong department tomanage relationship with its suppliers includinglooking at function such as supply chainmanagement, engineering, quality control, humanresource etc.

  • 5/28/2018 Maruti case


    Quality check process

    Although the quality check at the

    Maruti plant, it is impossible for

    manufacturers to check all the

    components going to assembly line.

    So, the importance given to

    monitoring facilities of the vendorsincreases.

  • 5/28/2018 Maruti case


    Steps for quality

    improvement. There is two steps process at the

    maruti plant to improve the quality.

    1 Marutisown shop floor.

    2 vendors end.

  • 5/28/2018 Maruti case


    Marutisown shop floor.

    Marutisproduction system in the country drawsthe best practices of parent company SUZUKI


    Lean manufacturing:it stands for man, machines, materials, and

    methods. 4Ms.

    For the improvement of yield.

    1 altering stamping technique.

    2 maximise steel sheet utilisation

  • 5/28/2018 Maruti case


    In last five years MACE has channelized all

    its efforts in upgrading Tier-I and Tier-II

    vendors, it was noticed that both were not

    getting similar initiatives.

    MACE counselors provide suggestions onmanufacturing process upgradation.

  • 5/28/2018 Maruti case


    MACE arranges knowledge session for

    both Tier-I & Tier-II, and this cluster

    approach was very effective.

    When the solution is implemented, MACE

    counselors visit the vendorsfactory again.

    With the relationship between Maruti and

    its vendors has reduced the rejection rate.

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    Motherson Sumi system started its

    association with Maruti company for

    supplying wiring harness and now it is

    supplying grills, door handles, mirrors,lighting system and cutting tool used in

    machine shop.

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    If maruti were to bring a new hatchback in thecar market within the next few months.

    Tier-I vendors and tier- II vender run their

    factories for high-volume production trials,that problems arising on each assembly linecan be identified.

    Becauseeverybody in the chain work closely,all of us are well-prepared to meet deadlines.Now we set targets for next three to fiveyears.

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    Support of manufacturers and tire 1 suppliersare indispensable to the existence of tier 2suppliers.

    Started with MACE it annul rejection rate was

    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.

    The focus then shifts to using low-cost

    automation. The company runs two drill machines on one


  • 5/28/2018 Maruti case


    This initiative resulted in a 50 per cut in the

    factoryselectricity consumption.

    Today close to 22 Tire=II suppliers maintain0 PPM) rejection.

    Improving your bottom line while enhancinglong term customer satisfaction and the

    lifetime value your customer.

  • 5/28/2018 Maruti case