Maruti Suzuki Introduction

8/3/2019 Maruti Suzuki Introduction

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MANAGEMENT INFORMATION SYSTEMOF

MARUTI SUZUKI LTD.


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FLOW OF PRESENTATION

Introduction

Information system at Maruti Suzuki

Information requirement and system used bySupply Chain department.

Key Challenges faced by Managers

Overall ArchitectureRecommendations


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MARUTI SUZUKI INTRODUCTION

The company is a subsidiary of Suzuki MotorCorporation, Japan, which owns 54.2 per cent ofMaruti Suzuki.

First company in India to mass-produce and sellmore than a million cars.

Maruti Udyog Limited (MUL) was established inFebruary 1981, though the actual productioncommenced in 1983 with the Maruti 800.

Exports more than 50,000 cars annually and in Indiaselling over 730,000 cars annually.

Employees6,903 & Revenue37,522.4 crore


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PRODUCT PORTFOLIO

800 (Launched 1983) Omni (Launched 1984)

Gypsy (launched 1985) WagonR (Launched 1999)

Alto (Launched 2000) Swift (Launched 2005)

Estilo (Launched 2009) SX4 (Launched 2007) Swift DZire (Launched 2008) A-star (Launched 2008)

Ritz (Launched 2009) Eeco (Launched 2010)

Alto K10 (Launched 2010)

Maruti Ertiga, seven seater MPV R3 designed anddeveloped in India, will compete with Toyota Innova,Mahindra Xylo, and Tata Sumo Grande.


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INFORMATION SYSTEM USED IN MARUTI SUZUKI


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ORACLE E-BUSINESS SUITE Many home-grown systems could not talk to

each other, requiring staff.

Standardizing on a single Oracle platform

Oracle also assisted Maruti with changemanagement.

Maruti has a successful history of Oracleimplementations.

Dealer management system itself wasdeveloped using Oracle Fusion Middlewareproducts.


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INFORMATION REQUIREMENT AND SYSTEMUSED BY SUPPLY CHAIN DEPARTMENT


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INFORMATION REQUIREMENTS Delivery by vendors: The management at MUL

requires details of component requirementsevery 15 days for different variants of differentmodels

Management focuses on the elimination ofwasteful activities in manufacturing processes.Vendors are helped in areas such as improvingtheir productivity, reducing the number of their

components that are rejected, reducingmaterials handling, improving their yield frommaterials, and reducing their inventories. Thishelps reduce their costs of production, and also

reduces thecosts of the components required.


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Vendor Quality Control

Efficiency and productivity of vendors-timelydelivery(including transportation and packaging)and appropriate quality and cost.

Cost reduction by vendors

Efficiency of dealers- focusing on two areasinventory and delivery to dealer. The managementhelps in their inventory management. It analysesthe market, and everyday inventory, inquiry, ordersand sales.


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Maruti supports vendors in all possible ways,

including finding technology partners, givingfinancial,technical and management support andbringing transparency in its dealings

After sales service network- Information onsales of spare parts and the availability of highquality, reliable spare parts for its products toincrease the penetration


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IMPROVEMENTS IN SUPPLY CHAIN

The company has 246 local suppliers and 20 globalones they all function in a seamless manner.

Of the 246 suppliers, Maruti has joint ventures with

14 of them and hold strategic equity stake to have asay in production and quality issues.


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The company had adopted the Just In Time (JIT) toachieve higher operational efficiencies and reduceinventory carrying cost. The company strictly

receives their supplies ordered the previous night ina two hour slot the next day. To achieve JITmaterial supplies, the company has givenpreference to locally based suppliers.

Maruti Suzuki has adopted the e-Nagare system ofelectronic flow which has completely transformed

its supplier chain.


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Over 76% of the company's 246 suppliers arelocated within 100 kms of radius. Maruti supportsits vendors in all possible ways. This includes

finding technology partners, giving financial,technical and management support and bringingtransparency in its dealings.

Fifty four of the top eighty component suppliers of

Maruti Suzuki India compete against each other inwhat has been called 'Quality Circle Competition'


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The idea behind the Quality Circle Competition

was for the teams from different vendors toidentify, discuss and resolve any one corebusiness issue that will add value to the overallfunctioning of the company, thereby increasing

overall efficiency.


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MANAGEMENT INFORMATION SYSTEM (MIS) It is the integration & Streamlining of

business processes involving Processadherence, Structuring, storage & retrieval of

data.

This involves Instant generation of Businessanalysis report control and monitoring of Man

and machine, Support operations anddecision MAKING.


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PROCESS FLOW

ENQUIRY BOOKING

DELIVERY

AFTERSALES

SERVICE

Reminder Call

Positive/Negativ

e

Water/Professional

Positive/Negativ

eWaterJuice

Tea & BiscuitSnacksFriendly

FlowersChocolatesGanesh Ji

Positive/Negativ

e

WaterCold Drink

Tea & BiscuitFriendly

Station 1 Station 2 Station 3 Station

Positive/NegativeFull technical tests

Pre Advance -

Booking

Launch


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SUPPLY CHAIN MANAGEMENT: Using a combination of Unix Shell programming, Oracle forms,

.Net, and Windows FTP technology, there is transparency in theexport supply chain.

It covers the entire process from when a distributor orders avehicle to production to shipment.

It provides all stakeholders complete visibility of an order'sprogress. It also updates distributors' systems to facilitate their dispatch

planning. It facilitates electronic transfer of orders and acknowledgements,

and communicates the daily progress of a production plan, anddispatch status to the distributor.

The entire process is IT driven and any exception duringproduction, planning, and factory dispatch can be traced andcorrective action made with no delay.


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DATA MANAGEMENT SOFTWARE (D.M.S) It can keep a record of all enquiries and can generate timely reports

whenever required.

At the time of enquiry feeding, it will ask for all required details.

After collecting all information, it can generate a Performa Invoice/OfferLetter for the customer.

DMS not only generates Performa Invoice or allot the enquiries to salesexecutives, but it will keep record of the enquiry until and unless theenquiry is not converted or closed.

DMS generates several reports that help the management as well as the

sales team. It generates reports like enquiry register, booking register, test drive

register, visiting register, pending enquiry register etc.

M d l f E ti S t S t (ESS)


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Model of an Executive Support System (ESS)


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KEY CHALLENGES

To increase the reliability and transparency of

data shared.

Creation of collaborative environment for

suppliers .

Providing single data source.

To maintain compliance with ICA rules.

To change behaviour of customer and internal

structure of departments


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SOLUTIONS & RECOMMENDATIONS Work online in a virtual workplace.

In an agile environment, improvement of services likeoperational & customer related.

Economic Order Quantity Concept.

To optimize process between operational and financialdepartments of organization.

Inventory Management System can be a centralized.

The cycle, from forecasting to production, is to be tightlyintegrated.

Change Management.


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THANK YOU

Maruti Suzuki Introduction

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