industrial-training-report-on-maruti-suzuki.pdf

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1. Studocu is not sponsored or endorsed by any college or university
industrial Training Report on Maruti Suzuki
Industrial Training (Bharati Vidyapeeth University)
Studocu is not sponsored or endorsed by any college or university
industrial Training Report on Maruti Suzuki
Industrial Training (Bharati Vidyapeeth University)
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2. Table of Content
Chapter No. Chapter Name Page No.
1 Organiza�on
Structure
2-9
2
Introduc�on to
Industry
10-15
3 Company Pro�le16-29
4 Produc�on Planning30-41
5 Individual Prac�cal
Experience
42
6 Special Experience 43-45
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3. 2
Chapter 1 : Organization Structure
It is basically a subsidiary company of Japanese automaker Suzuki Motor Corpora�on which
has a market share of 44.9 of the Indian car market. Maru� o�ers a large number of cars
from the entry level Maru� car to the Sports U�lity vehicle Grand vitara. It is basically a �rst
company in India who sells more than one million cars in India. It may be renamed as in
India as Maru� Suzuki India limited. It was formed in February 1981and the original
produc�on was started mainly in 1983 with the car Maru� 800. The company basically
exports more than 50,000 cars and has the excessive selling in the domes�c market with
more than 750,000 cars per year.
The company headquarters are on Nelson Mandela Rd, New Delhi. The term Maru� is
mainly used for the compact car model as large number of compact cars is sold by Maru�. It
has manufacturing facili�es located at Gurgaon and Manesar south of Delhi.
Maru� has face some problems with the labor force as it was established 1983. There was a
one recent incidence on 18th July 2004 at Manesar plant. Manesar plant was hit by violence
as one of the worker as one of the auto factories a�acked supervisors and started a �re that
killed a company o�cial and injured 100 managers, including two Japanese expatriates.
1.1 Organization Structure Design At Maruti Suzuki
Maru� has a func�onal organiza�onal structure with horizontal linkages. The ac�vi�es are
divided based on the following func�ons �nance, marke�ng, engineering and sales, spares,
produc�on, material, parts inspec�on, quality assurance, human resource development,
informa�on technology, new business and administra�on, The centraliza�on is very low in
Maru� as the decision-making authority is quiet decentralized and disturbed across all
levels. it is a very big organiza�on and further divided into smaller divisions. There are 29
divisions in Maru� and are headed by one divisional head which is a func�onal post. These
divisions are divided into 132 departments and which are headed by one departmental head
which is again a func�onal post. In Maru� the formaliza�on is very high all the methods,
procedures, standards are wri�en down formally. All the departments have department
procedures which describe the role of work of the department as well as their
responsibili�es and work �ow. The procedures are approved by divisional head and are also
available for the concerned departments. In produc�on shops the standard opera�ng
procedures are displayed on the worksta�ons and are known as Maru� Opera�ons
standards.
1.2 Changes in structure
In view of increasing compe��on the automo�ve sector Maru� has tried to use a project
based structure to handle the problems e�ec�vely. Around two year back in mee�ng of
senior and middle level execu�ves to form teams which would focus on speci�c goals.
Around 30 teams of about 8-10 members are formed. These teams have speci�c mandates
in terms of cost reduc�on and new product development and were given resources and
authority in order to implement the project.
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4. 3
For example-
One team worked on value analysis and value engineering for speci�c
components for cost reduction. Another team worked on improving JD
power ratings that Maruti secured for IQS (initial quality service). These
teams were working on a high priority and all the departments would
likely to co-operate. Also they reported to the JDM directly and this helped
them to sort out any problems they encountered. The best performing
teams were rewarded handsomely.
1.3 Organization structure at Maruti
The organiza�on structure of Maru� is somewhat inclined towards a mechanis�c structure
but it cannot be called absolutely because of presence of high degree of decentraliza�on. It
has a func�onal structure with horizontal linkages. The func�onal divisions �nance,
marke�ng, sales focus on their respec�ve func�ons. These divisions are further divided into
29 divisions. The hierarchy consists of a divisional head and then a departmental head.
Mechanis�c structure is suitable for those organiza�ons which do not require frequent
changes in their processes and the environment is stable.
1.4 Features Of Organization Structure at Maruti
The division of employees at six func�onal levels and their further hierarchical divisions in
di�erent divisions mean that the company wants to achieve perfec�on at each func�onal
level.
Their produc�on is car and produc�on occurs on a large scale , it includes assembly line in
which parts are added to a product in a sequen�al manner using op�mally planned logis�cs
to create a �nished product.
The environment in the automobile sector is almost stable and hence the �exibility in the
structure is not required.
Each func�onal department tends to get perfec�on at its level. At horizontal level it involves
cross func�onal teams and some�mes direct contact in the form of a coordinator from each
department who can communicate the progress in their respec�ve department.
Each func�on is separate at func�onal level and communica�on and co-opera�on among
func�ons are responsibility of someone at the top hierarchy.
Communica�on is mostly ver�cal from department to division and then directors.
Main decisions are taken by directors in respec�ve func�onal divisions.
All these feature are in line with the mechanis�c structures which are economies to scale,
and are designed to induce people to behave in accountable ways.
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5. 4
1.5 Maruti has a Flat and Decentralized
structure
Structural elements
Specialization
As the Maru� have func�onal structure and division of labour so there is high degree of
specializa�on.
Centralization
Power is distributed within the hierarchy because there are various persons who play a very
crucial role in the organiza�on.
Formalization
Instruc�ons, procedures are wri�en down formally in the organiza�on and on the other
hand departments have their own formal procedures of doing work in an organiza�on so
that they can achieve their objec�ves on �me.
Span of control
The span of control is generally at the top level is 3-6, 4-8 at the middle level management
and 0-8 at the lower level management. In produc�on level at lower level the span of control
is at40-50.
Problems faced by Maruti in the organization structure
Lower level managers take decisions understanding the big picture. While the top level
managers have low informa�on about the local opera�ons as compare to lower level
managers.
In decentraliza�on organiza�on there is lack of co-ordina�on among the managers. This can
be reduced by de�ning the company policy and communica�ng throughout the organiza�on.
Lower level managers have objec�ve that are di�erent from the objec�ves of the en�re
organiza�on. For example some mangers are interested in increasing the size of
departments as compare to pro�ts. This problem can be overcome by de�ning the
performance appraisal which helps the managers in de�ning their problems.
It may be di�cult to tell about innova�ve ideas in a decentralized organiza�on. Someone in
the organiza�on have the great idea which provide bene�t to the organiza�on but without a
strong central direc�on the idea cannot be shared with and adopted by others in the
organiza�on.
Flaws in the organization structure
The main �aw is that the employees are facing inter departmental fric�on in many areas-
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6. 5
Parts inspection vs. engineering
The Parts inspec�on department would consider the quality of exis�ng and new products.
On the other hand managers in the Engineering department want to reduce cost by
localizing the resources or parts. The process of localiza�on requires the sanc�on of parts
inspec�on department and this causes a con�ict between both departments.
Marketing vs. others
The Marke�ng department mainly focuses on that the customer expecta�ons with the
company are met or not. However the recommenda�ons that it suggests are not
communicated to the other departments that is engineering. For Example- A�er analysing
the data from the customers surveys the marke�ng department suggests that the audio
systems in Maru� would be of the Blaupukt barnd. This was turned down however Suzuki
had formed a �e up with Pioneer to use its audio systems.
Quality vs. Others
The role of the quality department mainly brings this department into con�ict with other
departments mainly produc�on and engineering departments. When the quality
department declares that the certain product or process is not matching with the quality
requirements, the concerned department who has not maintains quality will always protest
against it as most of the �mes such tests are marginal.
1.6 Changes in structure
Rewards
Rewards and compensa�on should be evaluated on a regular basis so that and which leads
to greater linkage to the employee performance and which also leads to increase the
goodwill of the company.
People
Frequent interac�ons with the di�erent departments helps to resolve the problems if any in
the organiza�on.
Processes
There should be more focus on quality assurance as they only focus on very stringent other
techniques.
Strategy
There strategy should be focused on more on changing needs of the customers and also the
changing scenario of the industry.
Structure
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7. 6
As the Maru� is following presently func�onal structure which has various con�icts in it so
Maru� has to change its structure according to their requirements so that there is no
con�icts in future and so that they will able to achieve organiza�onal objec�ves e�ciently
and e�ec�vely.
One major point is that there is a need of horizontal integra�on between the various
departments at departmental level is required .The hierarchical level is is to be reduced
because the level of employees are quiet diversi�ed which created a complicated hierarchy
Organiza�onal Structure
1.7 Shops
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8. 7
I.The Paint Shop
The press shop can be regarded as the star�ng point of the car manufacturing
process. Centrally located between weld 1, weld 2 and weld 3 supplies
components to all the three plants. The press shop has a batch produc�on
system whereas the plants have a line produc�on system. The press shop
maintains an inventory of at least two days. The weld shop as per the
requirements picks the �nished body parts from the press shop. These may be
divided as A, B and C. ‘A’ components are large outer components as for
example roof, door panels etc.
These components are manufactured in the press shop at Maru� due to design
secrecy and huge investment requirements. ‘B’ and ‘C’ components are
manufactured by joint ventures or bought from vendors.
SMED:
“Single Minute Exchange of Dies” new concept being adopted. This concept
helps in changing of die set up within single digit minute (below 9 minutes) this
helps us in improving machine u�liza�on & opera�ng e�ciency.
Since press machines are very high cost investment & any idle �me lost due to
die exchange will be a cost to company.
II.The Weld Shop
The body panels produced in the press shop and the other small
components are joined here to give the “white body” or “shell”. In a typical
car body 1400 di�erent components are welded together. The weld shops
have the following facili�es.
Welding jigs
Spot welding guns
Kawasaki welding robots
Hemming machines
PROCESS OUTLINE:
The shop has di�erent lines for di�erent models, each of which is further
divided into three parts:
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9. 8
UNDER BODY:
Here di�erent underbody panels are welded together. These comprise of rear
under body, central under body, and front engine room panel.
These underbodies are put on the conveyor and welded together to give the
under body.
MAIN BODY
: As the body moves on, the conveyor roof and side body panels
(Prepared on the sub lines) are welded to it to give the main body. The chassis
number is punched on the cowl top and it is welded to the front engine room
panel.
WHITE BODY:
The doors, hood and back door are a�ached on the main body with the help of
bolts and screws to make it a “white body”. The body is checked for dent, burr
and spa�er and these defects are repaired. A�er inspec�on and repairs the
body is called WBOK. It is sent to the paint shop therea�er.
III.The Paint Shop
In the paint shop following processes are carried out: -
There are �ve plants/units that provide a uniform pain�ng over the white body
coming from the weld shop. In paint shop all the models are painted on the
same line. The �ve units are: -
Pre-treatment (PT):
The body is thoroughly washed to remove the dirt and oil scales.
Then the body is treated with ZnPO4 (phosphate) to prevent corroding of the
body.
ED coat:
This is done by electric deposi�on method, at 240V-DC supply. A�er applying
the ED coat the body is baked in oven.
Sol-sealer and under coat:
Here the le� in the body (due to welding) are �lled with sol-
sealer to provide water proo�ng. Under coat is done on the surface above
wheels to prevent damage of body in that por�on.
Intermediate coat:
This is done by spray-pain�ng method using 10 Kawasaki Robots.
A�er applying the coat, the body is dried in the oven. Pain�ng done is basically
an intermediate coa�ng to provide base for the �nal coat.
Top coat:
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10. 9
This is done by spray-pain�ng method using 20 Kawasaki Robots. For metallic
coa�ng, double coats are applied and aluminium �akes are provided to shine
the metallic paints. A�er inspec�on and touch up, the PBOK, i.e. the paint body
ok is sent to the assembly shop. Inside por�on of vehicle is painted manually
and outside is by Robots.
ULTRA FILTRATION:
Ultra �ltra�on is the process in which all the rinse pipes and dip tanks will be
�ltered and cleaned, by this way water is recycled. Here Osmosis process is
used to �lter water.
IC pain�ng:
IC is intermediate coa�ng in which 3 colors are used. They are white, blue and
red. Outside por�on of vehicle is painted by robots and inside is done
manually. Paint thickness is taken care, a�er that vehicle is sent to IC oven.
Oven temperature is 198+/-5’C.
TOP COAT Pain�ng:
Top coa�ng is done a�er checking in Dry sanding II. There are 2 sub coa�ngs
Base coat and Clear coat. Here 11 colours are used; 8 metallic and 3 solid. Only
metallic colors are coated with clear coa�ng. Here also outside por�on of
vehicle is painted by robots and inside is done manually.
Next vehicle will move to �nal inspec�on and will be sent to assembly.
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11. 10
Chapter 2: Introduction to Industry
2.1 HISTORY
Maru� Suzuki India Limited, formerly known as Maru� Udyog Limited was
established through the e�orts of Dr. V Krishnamurthy in 1981. In 1982, a
license and joint venture agreement (JVA)was signed between Maru� Udyog
Ltd, and Suzuki of Japan wherein Suzuki owned 26% stake.
At �rst, Maru� Suzuki was mainly an importer of cars. In India’s closed market,
Maru� received the right to import 40,000 fully built-up Suzuki in the �rst two
years. A�er two years in December, 1983 the company went ahead and started
local produc�on with its �rst plant Gurgaon. But the early goal was to use only
33% indigenous parts as there were some concerns from Suzuki that the Indian
market was too small to absorb the compara�vely large produc�on planned by
Maru� Suzuki. But as thing gradually progressed, the company started
receiving strong demand for its vehicles “Maru� Van” and “Gypsy”. Because of
this strong growth and demand, the Japanese company raised its stake from
26% to 4o% by 1987. By 1991, 65% of the components, for all vehicles
produced, were indigenized. A�er liberalisa�on of the Indian Economy in
1991, Suzuki increased its stake in Maru� to 50% , making the company a 50–
50 Joint Venture with the Government of India the other stake holder. This
stake was further increased to 56.21% which made the Japanese manufacturer
a majority shareholder.
I.The Company Mission:
To provide a wide range of modern, high-quality fuel-e�cient vehicles in order
to meet the need of di�erent customers, both in domes�c and export markets.
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12. 11
II.The Company Vision: We must be an interna�onally compe��ve company in
terms of our products and services. We must retain our leadership in India and
should also aspire to be among the global players.
2.2 MARUTI SUZUKI
• MARUTI UDYOG LTD.
• Founda�on-1981 with Japanese Suzuki in oct 1982
• All manufacturing facili�es have a combined produc�on capacity of 2,250,000
vehicles annually (1.5 million from Maru� Suzuki's two plants and 750,000
from Suzuki Motor Gujarat).
• Loca�on: - Manesar, Gurugram, Palam.
• Outlets (year-2019) 1. 3598- sales outlets in 1861 ci�es across in India
2. 3792- service outlet across 1,861 ci�es throughout India.
2.3 PRODUCT SEGMENT
•Vehicle development
• Sales and service.
• Maru� insurance.
• Maru� Finance
• Maru� true value.
• N2N �eet management.
• Maru� accessories and parts.
• Maru� driving school Saloon / sedan/ hatchback
• SUV. (compact):- Vitara brezza.
• Mini- Ignis, S-presso.
• SUV- Grand vitara, S-cross.
• MUV/MPV
• Sta�on wagon.
• Conver�ble.
• Limsoine.
• Commercial / pick up.
2.4 MARUTI SUZUKI.
Vehicle and development types.
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13. 12
MARUTI SUZUKI Sales and Service.
• Seva Arena.
• Maru�- Suzuki vehicle e.g. Swi�, brezza
• Seva Nexa- 2015
• All premium vehicle e.g.- cross, baleno.
• Seva commercial -2016
Maru� was also involved in various businesses like manufacturing, sales and
purchasing of motor vehicles and parts of automobiles. Other ac�vi�es of
Maru� were facilita�on of pre-owned car sales, �eet management and car
�nancing. They have seven subsidiary companies in India are Insurance
Business Agency Ltd, Maru� Insurance Distribu�on Services Ltd, Maru�
Insurance agency Solu�on Ltd, Maru� Insurance Agency Network Ltd, Maru�
Insurance Agency services Ltd, Maru� Insurance Agency Logis�cs Ltd.2 all these
were a�anced with promo�on and selling motor insurance policies to
motorcycle owners and the seventh one True Value Solu�on Ltd were in
business of sales of cer��ed pre-owned motorcycles under the brand ‘Maru�
True Value’. They have four manufacturing units in di�erent areas in Haryana
state.
The �rst commercial car from the joint venture company was launched in 1983
called Maru� 800 which was very popular. In 1984 they launched Maru� Omni
which �ts one full size family. In 1985 they introduced Maru� Suzuki Gypsy. In
1997 company exposed to foreign market and imported 500 cars to Hungary. In
1990 they launched three box cars with 1000cc engine; this was the major
transforma�on in the company. In 1992 Suzuki Motor Corpora�on increased its
share value to 50% in Maru�. Later year they launched with Maru� Zen and in
1994 they introduced Maru� Esteem into the market.
Maru� has inaugurated its second plant in 1995. In 1997, Maru� started Maru�
Service Master as model workshop to take care of its sales in India. In 2002,
Suzuki Motor Corpora�on increased the share in Maru� to 54.2%. By 2002 they
established 10 �nance companies in which 8 of them were �nance companies
and two were joint ventures. They started a new business strategy for its
purchase, sales and trade of old cards is Maru� True Value. With the �rst
worlds strategic model with the help of Suzuki Motor Corpora�on they
launched ‘the SWIFT’ in 2005
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2.5 Privacy Policy
Maru� Statement of Privacy At Maru� we take your privacy seriously. Please
read the following to learn more about our terms and condi�ons.
2.6 What the terms and conditions cover
This covers Maru�'s treatment of personally iden��able informa�on that
Maru� collects when you are on Maru� Suzuki site and when you use our
services. This policy also covers Maru�'s treatment of any Personally
iden��able informa�on that Maru� shares with you. This policy does not apply
to the prac�ces of companies that Maru� does not own or control or Maru�
does not own or employ or manage.

2.7 Information Collection and Use
Maru� collects personally iden��able informa�on when you register for a
Maru� account. When you choose the services and promo�ons. Maru� may
also receive personally iden��able informa�on from our business partners.
When you register with Maru�, we ask for your name, e-mail address, birth
date, gender, occupa�on, industry and personal interest. Once you register
with Maru� and sign in to our services, you are not anonymous to us. Maru�
uses informa�on for three general purpose: to ful�ll your requests for certain
products and services and to contact you about specials and new products.
2.8 Information Sharing and Disclosure
Maru� will not sell or rent your Personally Iden��able Informa�on to anyone.
Maru� will send Personally Iden��able Informa�on about you when: We have
consent to share the informa�on We need to share your informa�on to provide
the product or service you have requested We respond to subpoenas, court
orders or legal process. When we �nd your ac�on on the web site violates the
Maru� terms and condi�on or any of your usage guidelines for speci�c
products or services.
2.9 Security
Your Maru� account informa�on is password-protected for your privacy and
security We have taken adequate measures to secure access to your personal
data.
2.10 Changes to this Policy
Maru� may edit this policy from �me to �me. If we make any substan�al
changes ,we will no�fy you by pos�ng a prominent announcement on our
pages.
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2.11 Email Disclaimer
This electronic transmission contains informa�on from Maru� Suzuki India Limited
(MSIL) which is con�den�al and proprietary, and is intended for use only by the
person named herein. In case, you are not the intended recipient, pls. don’t use
this informa�on in any manner, whatsoever, and immediately return it to Sender.
Any views or opinions presented in this email are solely those of the author and
may not necessarily re�ect the opinion of MSIL
It’s quite a
straight forward
business. The
company
manufactures
and sells
passenger
vehicles which
cons�tutes
almost 90% of
the business.
The rest 10% of the business comes from sale of spare parts, vehicle
components and other services.
So, if it is so simple then what’s the point in discussing? The point
here is to understand that how Maru� Suzuki has turned itself such
into a huge giant in the Indian Automobile sector. They own close to
50% of the market
share in India. This
means that out of 100
cars sold, half of the
cars are sold by Maru�.
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2.12 QUALITY POLICY
Quality has been of paramount importance to us. We deal with only genuine
components to ensure highest standards in quality and reliability. Our quality
policy has been designed in tune with customer requirements. Our quality
strategy is to maintain the reputation of the company by constantly meeting and
exceeding customer expectations on every occasion. We ensure that all quality
specifications are agreed to and clarified by both customers and suppliers before
proceeding further with the procurement process and ensure delivery of defect
free quality products always on time. We always commit ourselves for every
order equally to ensure total product quality and reduce variation. We strive
hard to constantly improve our quality, cost, delivery and service levels towards
obtaining customer satisfaction.
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Chapter 3: Company Profile of Maruti Suzuki
Maruti Suzuki has created history in automobile industry
through going keen on production record in 13 months. It is top
number of car manufacturer in Asia, outside Japan and
Korea having manufactured about 5 million vehicles by may
2005. It also should a remark as most booming automobile
company as joint venture and they keep on making pro�ts
since inception till 2000-01. Maturi also produced in service
pro�ts on an income of Rs 92.5 billion high reduction on new
products that have launched resulted in a book loss.
Maruti’s pro�t increase to 98% rise in its economic second
quarter net pro�ts and they are planning to invest $32.3
million. It is going to improve the Gurgaon factory to northern
state of Haryana increasing the facilities to improve 79,000 cars
in year. They are trying to modernize its factory to produce cars
faster. As the quarterly pro�t is bene�ted there is a huge
demand from local market as well as international market.
3.1 Enterprise Architecture issues:
Implementation of PLM.
Lack of Information Technology.
Reinforcing management control.
Maruti Implemented Turnaround Strategy.
Pricing Strategy followed by Maruti.
Maruti care for Customers.
Maruti commit to Motorizing India.
Relationship with the suppliers and management.
Di�erent revenue streams.
Importance of Vehicle Maintenance Service Market.
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3.2 Implementation of PLM:
Maru�’s product development aims are, necessitate for short cycle �mes is
necessary all �mes for the company to be at top posi�on. Maru�’s
management desires to launch new models as earlier as possible and try to
decrease the �me required for small modi�ca�ons and expansion of di�erent
products. Another aim is to co-development. Main goal of Maru� is to get
closer through global team and supplies to come up with new products and
stand in the market. Other aim is to reform the method of vehicle localiza�on
and improvising quality and reliability. All these aims piercing straight to
implement Product lifecycle management (PLM) answer with capabili�es for
informa�on management, knowledge capture, process management and
suppor�ng for global collabora�on.10 PLM solu�on will directly verbalize to
Maru�’s business challenges.
Informa�on management poten�al to solve the issues of di�erent pla�orms,
local variants and export des�na�ons.
Process management allows simultaneous improvement and quicker change
management and o�ers a pla�orm for other process improvements to process
faster.
Knowledge capture improves innova�on and at the same �me condenses
prices by growing part re-use.
Maru� implemented UGS PLM so�ware as “UGS leverages the business value
by o�ering a comple PLM solu�on” according to C. V. Raman, General manager,
Engineering Division, Maru� Udyog Ltd. PLM execu�on consists of Teamcenter,
NX and Tecnoma�x so�ware. Teamcenter o�ers broad range of prac�cality for
release management which includes statements of material management and
change management. NX maintains vehicle design which provides advance
tools for styling, product design and digital mockup. System based modeling
solu�on of NX make simpler for crea�ng product variants. It is also used for
tool design and the development of machining programs. Tecnomatrix
so�ware computerizes develops process planning. Maru� has won the Asia
Paci�c PLM excellence Award for 2006 by UGS Corp, which is a company for
providing worldwide provider of product lifecycle management (PLM) so�ware
and solu�ons.
Implementa�on of oracle applica�on in HR department:
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Workforce of maru� has grown quickly and expanded to 5,000 workers all over
the India. Maru� rapidly discovered that by incompa�ble systems to manage
human resources is insu�cient. They needed a system that runs and maintains
their employee details. Execu�ng Oracle Human Resources in the company
reported improved its HR func�ons as recruitment, compensa�on
management, leave management, payroll, competency assessments and sta�
development. Each employee par�culars are accumulated at a solitary
database and from where HR department sta� can access from the database
for complete personal and history of the employees. For example, if a new
posi�on is opened they can search the database and �nd the best match for
the opened posi�on. It also helps to �nd the employee skill levels and training
programs for be�er service and to have be�er knowledge.
Maru� organized Oracle Self-Service HR to free HR sta� as of basic du�es are
changing sta� address details and to answer doubts regarding payment details
and leave en�tlements. HR module is either necessary or compulsory
requirement for implemen�ng �nancials of the company, supply chain, CRM or
logis�cs module. Greater part of oracle applica�ons implementa�ons around
the globe doesn’t have complete HR implementa�on than func�onal areas.
Increase in the workforce excellence in last year’s the complete HR
implementa�ons are on the rise. There is a huge di�erence between
implementa�on of complete Oracle HR applica�ons and implemen�ng other
non-HR applica�on is di�erent with other modules. Implemen�ng complete HT
poten�ally might require many changes to the core HR setup compared to
implemen�ng non-HR applica�ons. The analysis and implementa�on would
impact areas befor planning complete HR implementa�on in the above
applica�ons. Oracle HR applica�ons helps employees to update their details
and apply for holiday break, checking their payrolls using the system. HR sta�
liked the Oracle applica�on because it was focused on performance
assessment and sta� development.
3.3 Lack of Information Technology:
There was no ERP vendor that supports the system in India un�l they
decided to automate their opera�ons un�l 1990. Lack of informa�on
technology e�ect the company a lot as technology is the major issue
for any company development. Maru� considered the rela�ve quality
of producing vehicles on a random, daily basis through a quality. To
improve the quality of the products they introduced di�erent
measures like talking with customers and taking surveys and
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20. 19
understand the customer problems and solve them. They planned for
long term goals for implemen�ng and giving out the best quality to
the customers and study their problems and keep on challenging
targets for the company. Maru� decided to build the ERP system by
itself with a group of 45 quali�ed engineers and taking help of Oracle
consultants and developed di�erent applica�ons are receipts,
produc�on, inventory management, sales, invoicing, �nancial
accoun�ng and payrolls. Applica�ons were developed and upgrading
was done internally and maintenance and administra�on part was
given outsourcing.
Maru� was successful with implemen�ng Oracle implementa�on
commencement of deploying oracle database and oracle real
applica�on cluster as a stable founda�on for its na�onwide dealer
management system. Oracle E-business helps the company to
improve its applica�ons and faster process in produc�on of the pre-
cuts helps in oracle implementa�ons, applica�on support
outsourcing, customiza�on & enhancements, upgrades & migra�ons,
DBA support and tes�ng services. Core HR modules will de�nitely
help employees and use other HR func�ons as a part of installa�on.
Dealer management system is developed by oracle fusion
middleware products. Selec�ng the ERP system in maru� was chosen
by oracle because of its excellent performance. They used to work
with external companies to maintain and develop oracle solu�on.
Later they decided to work with the vendors to organize and
maintain the ERP system.
3.4 Reinforcing management control:
The growing business of Maru� in India in another way proved it to be a tough
task to manage, with their exis�ng strategy. The policies they u�lized were not
scalable with the growing business and they had to look for more reliable
op�ons. Main problem with using mul�ple systems and manage �nances with
lack of control over processing and informa�on quality in the company. Each
company follows di�erent work�ows and each division in the company will
have di�erent procedures for implemen�ng the work�ow. They have di�erent
data formats which require consolida�on and preven�ng real �me access to
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the company pro�le of sales and cri�cal sta�s�cs. With the help of oracle
applica�on maru� regulated single �nancial management pla�orm. Maru�
took control over accounts payable and accounts revenue and gained complete
and assisted in the management of all �nancial informa�on. The tasks like
genera�ng reports for management review proved tedious with employees
who had to do this manually. Also their system was designed to use inputs that
were similar but did not possess ability to co-ordinate with the other en��es,
resul�ng in a redundancy in tasks being performed.
For Instance when new business units open up and the company needs to
make sure their produc�vity is not a�ected and the servers need to be
managed manually in order to make sure everything is going as expected. This
would de�nitely involve either a change in system, that is more scalable with
the growing business and reduce the manual interven�on in to the
maintenance task. Otherwise it’s a way of revising their ways of managing.
Oracle ��ed the slot in an appropriate way, which replaced the �ll then
products used by Maru�. Most of them being internal were not a best op�on,
keeping the current business scenario in view as they lacked co-ordina�on
among them and manual interven�on was imminent. Maru� wanted this
change to be as smooth as possible and hence played the responsibility with
Oracle itself which had a specialized consul�ng domain. The joint decision was
made by oracle considering the requirements of Maru�. The decision was
focused on the key factors like design; deploy the so�ware involved in the
revision of the technology and also the co-ordina�on of the teams par�cipa�ng
in the task. The a�er transforma�on support was also a prime factor to
consider during the plan was being designed.
3.5 Maruti Implemented Turnaround
Strategy:
Maru� was the leading automobile company �ll 1998, having about 84% of the
market share. With the rise in compe��on from local automobile companies
like Hindustan Motors, Telco, Mahindra & Mahindra and interna�onal
automobile companies like Daewoo, Toyota, Ford, PAL, GM, Mitsubishi has
changed the structure of whole automobile industry in India from the past
seven years and led to decrease in pro�ts and market share for Maru�. The
organiza�on learning of Maru� was moderately successful; the cost was
rela�vely inexpensive as Maru� had its strong Japanese prac�ces to fall back
upon. With the program of organiza�onal redesign, ra�onaliza�on of cost and
enhanced produc�vity, Maru� bounced back to compe��on with 50.8%
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22. 21
market share and 40% rise in pro�t. At the same �me investment in
automobile sector by foreign car manufacturers was allowed by the Indian
government and hold majority stakes.
With the loss of market share and decline in pro�ts, Maru� pioneered strategic
acts to redesign itself to face the compe��on in the Indian market and also to
deal with the India’s liberaliza�on process. During its redesign process Maru�
consulted AT Kearney & McKinsey which are the consultancy �rms, and also an
OD consultant Dr.Athreya who is interna�onally reputed for the development
of organiza�on and modes of strategy.21 In its redesign process, the strategies
followed are: to launch a new model every year sa�sfying di�erent segments of
the market, to decrease cost of produc�on by accomplishing 85-90%
indigeniza�on for new models, increasing the dealer network from 150 to 300
focusing on bulk sales to a�ain its market share back, to reduce number of
vendors and introduce compe��ve bidding. The mission statement of the
organiza�on is to come up with new models like fuel e�cient vehicle with
latest technology. Leader in domes�c market and be among global players in
the overseas market. Crea�ng customer delight and shareholders wealth. With
the redesign process the total produc�on capacity increased to over 3, 70, 000
vehicles per year with the investment of around Rs. 4000 mn for the expansion
project. Along with its redesign process, there has been a change in business
focus of Maru�. The business focus of Maru� previously when it controlled the
largest market share was to “sell what we produce”. A�er it began redesign
process business focus of whole organiza�on had a shi� from produc�on,
produc�on and produc�on to “marke�ng and customer focus”.
3.6 Pricing Strategy followed by Maruti:
Maru� has a product o�ering to all segments at all price levels. It o�ers a car
with the price of Rs.1, 87,000.00 which is the lowest o�er on road. The repeat
buyers who already owned a Maru� car makes its 70% of business. Comple�on
in the Indian passenger car industry is increasing and price emerged as an
important factor a�ec�ng the purchasing decisions for customer. Maru� has
been in the industry for more than two decades hence as a market lease
maru� adopted aggressive pricing strategy.23 Maru� focused on promo�ng
and distribu�on the products in the high compe��ve market. Maru� classi�ed
di�erent innova�ve promo�onal strategies. They came up with some interest
rates declining from 12% to as low as 8% in automobile �nance. Maru�
�nances a major toll to drive up its car sales. For every customer looking for up
grada�on in his car their pricing strategy provides an op�on. Their mo�ve of
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having di�erent product o�ering is by considering every set of car customers in
India. The following is how every price point is covered.
3.7 Maruti care for Customers:
Maru� has successfully incorporated customer-friendly approach in its
organiza�on culture by ge�ng rid of public-sector laid back image which made
it to win �ve consecu�ve J D Power CSI Awards proving that its primary focus is
on customer sa�sfac�on. Employees also incorporated customer centric
a�tude following the organiza�on culture. For each customer complain Maru�
dealers and employees are responsible. Based on customer feedback there are
cases of cancelling dealerships.
Maru� has started a number of plans in purpose of well customer service. They
have even changed their interior of showroom allowing customers to walk
minimum in the showroom and there are schedules for customer service �mes
and delivery of vehicles. The Dealer Sales Execu�ve, who is trained on gree�ng
notes, is the �rst person to interact with the customer of Maru� when he walks
into the Maru� showroom. Under CRM department Maru� has a cell to handle
customer complaints. Another e�ort by Maru� is the call center where Maru�
can closely interact with its customer. The Market Research department of
Maru� studies varying consumer behavior and needs of market. Maru�’s claim
of being customer friendly further strengthens because of seventy percent of
repeat buyers. There is a lot of investment and e�ort involved in developing
customer loyalty schemes.
3.8 Maruti commit to Motorizing India:
Maru� is now pu�ng e�orts in making Indian consumers to switch from two-
wheelers to the car without any tedious e�ort by the consumers thus showing
its commitment of motorizing India. The outcome of this e�ort is in making
small town people to buy Maru� cars for Rs. 2599 scheme because of its
associa�on with State Bank of India and its Associate Banks and organized
�nance plans.
The compact cars, which currently make up 80% of the market is the root of
growth for Maru� in the future. Strong economic growth, a�ordable �nance,
up grada�on in infrastructure, proper framework favors the growth of car
customers. The rise in income levels and low penetra�on levels at 7 per
thousand are the favourable things for development automobile industry.
Maru� while researching found that rural people had strange opinions in
having a car that EMI (Equated monthly installments) ranges between Rs 4,000
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and Rs 5,000 and along with it for the car maintenance it would be Rs 1,500-
2,000 per month, plus another Rs 1,000 for fuel. Taking their inputs Maru�
started working in developing an innova�ve idea to counter their
apprehension. Controlling the fuel bill is in consumer hands where
maintenance need not be. Kha�ar says “What the company is doing now is
saying how much you spend on fuel is in your hands anyway. As far as the
maintenance cost is concerned, if you want it that way, we will charge a li�le
extra in the EMI and o�er free maintenance.” Thus Maru� laid another
innova�on in the automobile industry.
3.9 Relationship with the suppliers and
management
Maru�’s top level direc�on of purchasing organiza�on began development of a
corporate wide Supply Management Strategy. The goal of Supply Management
Strategy is to ensure that Maru� to provide with the right product, at the right
�me, with the best quality, for the lowest possible price. He elaborated the
di�erence between the vendor and suppliers. A Vendor is going to provide a
product which is already made and that doesn’t include any crea�vity or
innova�on. Supplier is an opportunity to extend their business within the
organiza�ons that brings the new product with innova�on and crea�vity as
required for the developing to meet certain requirements to the product
development.
Supply management strategy goal is to shi� the organiza�on from a short-term
transac�on mentality to a long-term focus on supplier rela�onship. Posi�on of
suppliers with produc�on facili�es and there integra�on into Maru�’s
development process was an important part of long-term rela�onship
development. The long-term transac�on would not only achieve by purchasing
but also to develop new products for the development. Maru� recognized that
engineering and manufacturing plays equal role in achieving the vision of a
new role for supply management. Top level management argued that a slow
and steady approach was necessary to build the enthusiasm and engagement
in supply management system. He also thought that this new ways would bring
us new technology improvements and involve good strategic thinking to bring
the thing perfect at the �rst �me.
3.8 Di�erent revenue streams:
Maru� has successfully developed di�erent �nancial strategies without making
huge investments in the form of MDS, N2N, Maru� Insurance and Maru�
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Finance. These facilitate in providing the customers a hassle free experience
and in turn sa�sfying the customers.
Maru� Finance: In a market where car sales of more than 80% are �nanced,
Maru� has successfully entered and created a �nancial strategy for Maru�. This
strategy has become a crucial factor in conver�ng a Maru� car sale in certain
cases. Finance plays a key role in making decisions for car purchase. Maru� has
grouped up with 8 other �nance companies to form a consor�um. The eight
other companies are Ci�corp Maru�, Maru� Countrywide, ICICI Bank, HDFC
Bank, Kotak Mahindra, Sundaram Finance, Bank of Punjab and IndusInd Bank
Ltd. (previously-Ashok Leyland Finance).
Maru� Insurance: The major concern of car owners is the insurance. Maru�
has gathered all car insurance needs under one roof. Maru� has grouped up
with Na�onal Insurance Company, Bajaj Allianz, New India Assurance and Royal
Sundaram to make this service available for its customers. From �nding out the
most suitable car insurance policy and assis�ng in claiming insurance hassle-
free it’s the complete responsibility of the dealer. Maru� Insurance makes its
service easily available for customers at any Maru� dealer workshop in India to
have their cars repaired and processing of insurance claims.
True Value – Ini�a�ve to capture used car market: Maru�’s another important
development is its entry into the market of used cars in 2001, allowing
customers to exchange their old car with the new one by bringing their vehicle
to ‘Maru� True Value’ outlets and paying the di�erence with loyal discounts.
This helps in building sa�sfac�on and retaining the customers. With Maru�
True Value, it �lled this gap in making customer trust in Indian used car market.
In this highly unorganized and decep�ve market where biggest concern in
making a car sale is trust, Maru� could achieve this based upon its strength in
Indian market. Maru� has developed a system where dealers pick up used cars,
improve the condi�on, issue a new warranty and sell them again. Dealers make
all investments for True Value. Maru� has established 172 showrooms across
the na�on building up a strong network. The used car market is 2-3 �mes as
large as new car market in developed markets having a huge poten�al in India.
N2N: Maintenance of car consumes loads of �me, especially if you own a group
of automobiles. N2N Fleet Management Solu�ons by Maru� for companies
takes the responsibility of A-Z automobile problems. Services comprise
complete solu�ons across life of the vehicle like Leasing, Maintenance,
Convenience services and Remarke�ng.
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Maru� Driving School (MDS): Maru� has started this in order to achieve the
market where there is suppression in buying cars due to lack in car driving
skills. This strategy brings such customer to the showroom and poten�ally
learns car driving.
3.9 Importance of Vehicle Maintenance
Service Market.
In the old days, the company’s opera�ons could be boiled down to a simple
three-box �owchart. Components came from the ‘vendors’ to the ‘factory’
where they were assembled and then sent out to the ‘dealers’. In this scheme,
you know where the company’s revenues come from. The new scheme is more
complicated. It revolves around the total life�me value of a car. Work on this
began in 1999, when a MUL team, wondering about new revenue streams,
traveled across the world. Says R.S. Kalsi, general manager (new business),
MUL: “While car companies were moving from products to services, trying to
capture more of the total life�me value of a car, MUL was just making and
selling cars.” If a buyer spends Rs 100 on a car during its en�re life, one-third of
that is spent on its purchase. Another third went into fuel. And the �nal third
went into maintenance. Earlier, Maru� was ge�ng only the �rst one-third of
the overall stream.
As the Indian market matured, customers began to change cars faster. Says
Kalsi: “So the ques�on was, if a car is going to see three users in, say, a life span
of 10 years, So Maru� has changed gears to take a big share of this �nal one-
third spent on maintenance. Maintenance market has a huge market poten�al.
Even a�er having ��y lakh vehicles on road Maru� is only catering to
approximately 20000 vehicles through its service sta�ons every day.
For this they are conduc�ng free service workshops to encourage consumers to
come to their service sta�ons. Maru� has increased its authorized service
sta�ons to 1567 across 1036 ci�es. Every regional o�ce is having a separate
services and maintenance department which look a�er the growth of this
revenue stream.
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3.10 THE INCEPTION OF MARUTI AND
SUZUKI AND THE GROWTH:
Maru� Udyog ini�ally started as Surya Ram Maru� Technical Services Private
Limited on 16 November 1970. MSTPL was ini�ally into ge�ng the technical
know-how of the perfect automobile since the demand in India was much too
scarce.
In 1971, India’s �rst lady Prime Minister Indira Priyadarshini Gandhi’s Cabinet
proposed a plan for the manufacturing of a “common men’s car”: a car that most
Indian families could a�ord. In the same year, the Company MSTPL registered
itself as Maru� Limited under the Indian Companies Act. His son Sanjay Gandhi
became its First MD, and that was the start of an impending revolu�on.
While Maru� had no previous experience, in design, manufacturing, or links with
an established automobile company, but s�ll he has received a contract to
manufacture an a�ordable car. Till 1975 company didn’t produce any cars, and
From 1975 to 1977 when Prime Minister Indira Gandhi declared
an emergency across the country, Sanjay Gandhi started ac�vely taking part in
poli�cs, and the “people’s car” project went on backburner.
In 1981, a�er the death of Sanjay Gandhi during the Aircra� accident on 23
June 1980, the Central government started searching for ac�ve collabora�on.
Maru� Udyog Ltd. was come into existence in the same year by the e�orts of
industrialist V. Krishnamurthy.
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In 1982, a Joint Venture Agreement was signed with the Japanese automobile
manufacturer named Suzuki Motor Corpora�on. Dr. Venkataraman
Krishnamurthy spearheaded this deal and was therefore roped in as the �rst
Chairman and CEO of the newly formed Maru� Suzuki.
Finally, a�er 1 year, the Maru� 800 was released which was a 796cc hatchback,
and was India’s �rst a�ordable car, which broke a number of records. In
December 1983 an iconic car Maru� 800 key was delivered to its �rst Customer
Mr. Harpal Singh by Prime Minister Mrs. Indira Gandhi. Local produc�on
started in December 1983 in the Gurgaon plant. Maru� only imported cars at
�rst. This automobile was in produc�on from 1983 �ll it breathed its last in
2013 and it was considered to be the most in�uen�al car ever.
In 1987, Maru� Suzuki started expor�ng to the European country Hungary. In
1989, the Company introduced Maru� 1000 which was India’s very �rst sedan
and it ran in produc�on for about 2 years a�er the Indian economy was
liberalized in 1991.
1993 and 1994 were the era of Zen and Esteem which became household
names in the country. Maru� produced its millionth vehicle in the same era,
therefore, comple�ng an important milestone in their successful run as a
company. They released their very �rst Customer Care o�ce for the consumers
following which they released their newest model called Maru� Alto. The
Company then released three models which are,
1.Maru� Versa – 2001
2.Esteem Diesel – 2002
3.Suzuki Grand Vitara – XL 7 – 2003
And so many more.
Maru� and Suzuki then entered into a partnership with the State Bank of India
a�er the produc�on of their four millionth vehicle in the country. They were
also listed in the Na�onal and the Bombay Stock Exchange a�er the public
issue which had increased by ten �mes.
A�er nearly 20 years, Alto overtook Maru� 800 as the bestselling car in the
Indian market and by 2003-04, the Company had sold its 5 millionth vehicle
and became the most pro�table Indian automobile brand. As of May 2007, the
Government of India sold its all share of Maru� Suzuki to the Indian �nancial
ins�tu�ons.
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3.11 MANUFACTURING FACILITIES:
2006 marked the beginning of a separate automobile division called “Maru�
Suzuki Automobiles India”. This venture laid the founda�on for beginning two
new manufacturing plants. One plant was solely dedicated to the
manufacturing of automobiles and the other one was for engines.
The Company has three full-�edged automobile manufacturing facili�es in
India. Maru� Suzuki has ensured that there would be no compromise in terms
of technology and also in terms of quality.
Gurugram has a manufacturing facility spread across a kilometer and a half and
they produce the Alto 800, Vitara Brezza, Ignis, Er�ga, and Eeco. The facility at
Manesar is about two and a half kilometers and has an overall produc�on
capacity of more than 100,000. This plant produces Alto K10, Swi�, Ciaz,
Baleno, and Celerio.
The Gujarat facility is a more recent one and the plant has a produc�on
capacity of about 250,000 units every year but there are plans to double the
produc�on rate in the coming years.
3.12 SERVICE PROVIDED:
Sales network: Maru� Suzuki has about 2000 outlets across the city that caters
to every need of the customers in their �mes of need.
NEXA: The Company
launched NEXA for
premium Maru�
customers. Maru� Suzuki
S-Cross was the �rst car to
be released through NEXA
and the company plans to
introduce many more
models in the future.
Currently, Maru� Suzuki
sells Baleno, Baleno RS, S-
Cross, Ciaz, Vitara brezza,
and Ignis through it.
Maru� Insurance and Finance: Maru� Suzuki provides vehicular insurance and
�nancial services through mul�ple companies that it has �ed up with. Some of
the clients include the ABN AMRO Bank, HDFC, ICICI, Kotak Mahindra, Bajaj
Allianz, New India Insurance, and Royal Sundaram, etc.
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Maru� True Value: A one-stop shop for all Maru� and Suzuki vehicles.
Customers would be able to inquire, buy, sell, and also exchange company
vehicles or other brands as well. As of now, True Value has over 1200 outlets
throughout mul�ple ci�es in the country
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Chapter 4: Production Planning
4.1 PRODUCTION PROCESS IN MARUTI
SUZUKI
Mar� Suzuki launched the Swi� Dzire as its o�ering in the compact sedan
segment, driven by the government's excise duty cuts for sub-4 meter vehicles
back in 2008. The rest, as they say, is history. Over the past 9 years, the Dzire
has been a mega Success for Maru� Suzuki. As you would assume, though, for
a car that has more than 30,000 parts and sells ion enormous numbers, it's a
challenge to keep
spinning the
numbers without
compromising
quality on any
count. The
manufacturing
process has to be
fast, economical,
e�cient and glitch
free - all at the same
�me. So how does
Maru� Suzuki
achieve the feat of
crea�ng cars which cater to almost 50 percent new car buyers in India, while
also maintaining very high degrees of precision and reliability? We had a
chance to visit Maru� Suzuki's Manesar factory where the new Dzire is being
manufactured to observe and understand the process very closely. Here is how
it works.
At this point, Maru� Suzuki has two func�onal plants in India – the one in
Gurgaon was established in 1982 and churned out the original SS80 in 1983
while the second one came up in 2006 in Manesar. I had personally seen
Gurgaon facility several �mes back in 2005-2006 but the new plant in Manesar
is really state of the art. It has a total of 1,100 robots, most of which are used
for precision welding of the chassis.
These robots are all made for very speci�c purposes. As for workers, there are
a total of 7,000 pairs of hands who work in the factory with high precision to
produce these cars. These workers, along with the robots produce 3,100 cars
per day – about 2.15 cars per minute. They are able to do this while
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maintaining 98% e�ciency with less than 1.8 minutes of assembly line
stoppage in a 480 min shi�. If you add 2,700 cars produced in Gurgaon plant,
MSIL produces one car every 10 secs.
Achieving this is no mean feat and requires a well oiled machinery func�oning
like clockwork, round the clock. So there is about 10 km of running conveyor
belts in this plant carrying the car body and parts as workers a�ach various
components. The �ow of the produc�on is – Press Shop - > Weld Shop -> Paint
Shop -> Assembly Shop -> Vehicle Inspec�on. The Press Shop and Weld Shop
are mostly automated. The Press Shop presses sheets of metals into shapes
which form part of the chassis and door. These pieces are then welded
together in the weld shop. The Weld shop was a treat to watch with robots
working on 3D and 3K guiding principal reaching out in narrow gaps to do spot
welding which welds together di�erent parts of the chassis.
Talking about the Chassis, the new Dzire is based on what Maru� Suzuki calls
the ‘HEARTECT Pla�orm. It uses ultra high tensile and high tensile steel which
provides enhanced safety while also keeping the weight rela�vely light. The
new Dzire also gets front airbags as standard feature which enhances the safety
quo�ent.
Coming back to the making of the Dzire, once the body shell is painted, the
doors are removed and they are assembled separately at a later point. This
allows be�er cabin access for workers working on the body. Each component is
then a�ached by a team of workers. We could see the en�re dashboard being
put in place by a robo�c arm and workers pu�ng the screws on the �x the
dashboard..
Most parts are all pre-assembled and only need to be bolted onto the car body.
While just seeing the cars being assembled was fascina�ng, what is even more
interes�ng is the level of planning which goes in having the right assembly at
the right �me and right place. More than one car model is made on each
assembly line and that adds to the complexity of the parts availability. The
parts have to be just-in �me and properly sequenced.
Let me give you an example. Let’s say the produc�on
•Plan for the assembly line is in this sequence Dzire VDi, followed by the
Baleno Petrol Delta followed by the Dzire LXI. Now we know that several
components of these cars would be di�erent. For example, the dashboard
of the two Dzires is di�erent due to tachometers in Petrol and Diesel Dzire
are di�erent and the complete dashboard assembly comes pre-assembled
to the produc�on line. The produc�on planning is so detailed to the.
Kudos to Maru� Suzuki for having achieved such a high degree of precision,
and for taking car manufacturing to truly global standards in India. Not
without reason are they country’s Number One car manufacturers.
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4.2 Classi�ca�on of Vehicles:
According to purpose of vehicle
•1. Passenger vehicle:- Bus, car, taxi.
•2. Good vehicle:- Truck, container, tempo.
•3. Special purpose vehicle:- Ambulance, �re brigade.
According to load carrying capacity
•1. Light motor vehicle:- Cars and jeep.
•2. Medium motor vehicle:- temp0, van.
•3. Heavy duty vehicle:- Tractors and truck.
According to No. of wheels
•1. Two wheels:- Motor cycle , scooters.
•2. Three wheels:- Auto.
•3. Four wheels:- Jeep, cars, vans.
•4. Six wheels:- Truck..
4.3 MPFI
system:-
A separate injector nozzle to
each cylinder, right outside its
intake port, which is why the
system is some�mes called
port injec�on. Shoo�ng the
fuel vapor this close to the
intake port almost ensures
that it will be drawn
completely into the cylinder.
The main advantage is that
MPFI meters fuel more
precisely than do TBI designs, be�er achieving the desired air-fuel ra�o and
improving all related aspects. Also, it virtually eliminates the possibility that
fuel will condense or collect in the intake manifold. With TBI and carburetors,
the intake manifold must be designed to conduct the engine’s heat, a measure
to vaporize liquid fuel. This is unnecessary on engines equipped with MPFI, so
the intake manifold can be formed from lighter-weight material, even plas�c.
Incremental fuel-economy improvements result. Also, where conven�onal
metal intake manifolds must be located atop the engine to conduct heat, those
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used in MPFI can be placed more crea�vely, gran�ng engineers design
�exibility.
Advantages of MPFI system:-
•Engine with MPFI system generate more power with lesser pollu�on as
compared to that engine having carburetor.
Bene�ts of MPFI system:-
•Ba�ery fuel economy.
•Ba�ery accelera�on.
• Cleaner environment
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4.3 Product Portfolio
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So, how did Maru� managed to achieve this.
The �rst point is the joint venture with Japanese Car and Motorcycle “Suzuki”.
The biggest bene�ciary was Maru� as Suzuki at that �me was the front runner
in Research and Development. Introduc�on of any new/ innova�ve technology
by Suzuki, would directly reach to Maru� due to their JV. Maru�, therefore
used to get early access to these technologies.
Maru� being an
Indian Company,
was very much
aware about the
Indian automobile
market, therefore
it used to
customize these
technologies
according to
Indian market and
would use it in the
Indian
Maru� Suzuki
Swi�
The second point
is “Value
Migra�on”. In
2000, cars were viewed as a luxury more than a necessity. The whole
automobile sector’s value was derived from the two-wheeler market. There
was not much emphasis on the four-wheeler market. Four-wheeler was not
looked as a mass market product. However, post 2003–05, things started
changing. India started emerging as one of the fastest developing
economy. Investments/ started pouring into the Indian Market. People started
developing a higher purchasing power. Maru� sensed an opportunity here and
introduced its most successful car �ll date. We all know this vehicle by the
name of “Maru� Suzuki Swi�”. This vehicle changed the landscape in the
Indian automobile Sector. The vehicle instantly struck a chord with the Indian
consumers and it became a hot selling product.
The last and most important point for any automobile company is the
penetra�on level in the country. This is important to understand because if the
company doesn’t have enough penetra�on across di�erent ci�es, they won’t
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be able to sell cars well. Let us understand how Maru� planned its expansion
strategy and penetrated into every corner of India.
As you can see, they have four
sales channels. The �rst one is
“Maru� Suzuki Arena” wherein
the company provides a
dynamic, trendy, social and
connected new-age car buying
experience. They have 2,264
outlets with presence across
1,859 ci�es.
The next is the “True Value”, this is a
place wherein people can buy
preowned Maru� Cars at a fair and
transparent value. This is a huge
market for Maru�, as many people
cannot a�ord to buy a new car,
therefore Maru� with their true
value tries to help consumers to buy
a used car which �ts into the budget
of everyone. Here, they have
presence across 942 ci�es with
1,252 outlets.
The newest entrant in its sales channel is the “NEXA”. The biggest problem for
Maru� was the percep�on problem amongst the consumers. People regarded
Maru� has a mass product and not a class product. Whenever, Maru�
launched a premium product, it was always perceived as a cheap car. This is
where Mr. Ayukawa strategy came into picture. When Mr. Ayukawa came on
board, he realised this problem and bought in the “NEXA” sales channel. It was
targeted at new customer segments o�ering global buying experience,
innova�ve technology and enhanced hospitality.
When it launched NEXA, many industry observers had ques�oned the ra�onale
behind Maru� Suzuki selling products through a new and niche distribu�on
channel, rather than the expansive network it already had. But the decision has
paid o�. The premium models helped Maru� Suzuki retain its old customers
who wanted to upgrade to a higher segment, as well as en�ce new buyers.
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Maru� Suzuki’s dogged persistence in providing upgrade op�ons to its broad
customer base in the past three-four years has helped it corner around 50% of
sales in the market. Currently Maru� has presence across 204 ci�es with 360
outlets for Nexa.
4.4 N2N Fleet Management
N2N is the short form of End to End Fleet Management and provides lease and
�eet management to corporates. Clients who have signed up of this service
include Gas Authority of India Ltd, DuPont, Recki� Benckiser, Doordarshan,
Singer India, Na�onal Stock Exchange of India and Transworld. This �eet
management service include Leasing, Maintenance, Convenience services and
Remarke�ng.
4.5 Maruti Accessories
Many of the auto component companies except than Maru� Suzuki started to
o�er compa�ble components and accessories. This caused a serious threat and
loss of revenue to Maru� Suzuki. Maru� Suzuki started a new ini�a�ve under
the brand name Maru� Genuine Accessories to o�er accessories like alloy
wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers
and other car care products. These products are sold through dealer outlets
and authorized service sta�ons throughout India.
4.6 Maruti Driving School
As part of its corporate social
responsibility Maru� Suzuki launched the
Maru� Driving School in Delhi. Later the
services were extended to other ci�es of
India as well. These schools are modelled
on interna�onal standards, where
learners go through classroom and
prac�cal sessions. Many interna�onal
prac�ces like road behaviour and a�tudes
are also taught in these schools. Before
driving actual vehicles par�cipants are trained on simulators.
[87]
At the launch ceremony for the school Jagdish Kha�ar stated "We are very
concerned about moun�ng deaths on Indian roads. These can be brought
down if government, industry and the voluntary sector work together in an
integrated manner. But we felt that Maru� should �rst do something in this
regard and hence this ini�a�ve of Maru� Driving Schools."
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4.7 Sales and service network

Maru� Suzuki has 3,598 sales outlets across 1,861 ci�es in India. The company
aims to increase its sales network to 4,000 outlets by 2020.
[69]
It has 3,792
service sta�ons across 1,861 ci�es throughout India.
[70]
Maru�'s dealership
network is larger than that of enough known companies combined.
[71]
Service is
a major revenue generator of the company. Most of the service sta�ons are
managed on franchise basis, where Maru� Suzuki trains the local sta�. Also,
The Express Service sta�ons exist, sending across their repair man to the
vehicle if it is away from a normal service center
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4.8 Service Centers
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Chapter 5: Individual Experience at Industry
In the Present Scenario, manufacturing is approaching to become more
�exible, agile and e�cient under the changing environment of global
compe��on, increased product variety, high renewal rate of product and
shorter product life cycle in technology. New materials and their advanced
processing are evolving. Product quality and maintain ability are the key issues
to be addressed on priority. We should learn about equipment, machines,
processed and other industrial prac�ces in industry.
A�er collec�ng the informa�on, he should prepare a comprehensive training
report a�er comple�on of our training period to indicate what we have
observed and learn in the training period. We get to learn about jobs
performed and processes and machines. We also learn about how compe��ve
company is the maru� in terms of our products and service. In the beginning
when we were learning about the maru� Suzuki we got to know about the
Maru� Udyog Limited and it was established through the e�orts of Dr. V
Krishnamurthy in 1981.
In 1982, a license and joint venture agreement (JVA) was signed between
Maru� Udyog Ltd, and Suzuki of Japan wherein Suzuki owned 26% stake. The
company’s mission is to provide a wide range of modern, high quality feel-
e�cient vehicles in order to meet the need of di�erent customers, both in
domes�c and export markets. The essen�al elements in any commercial
enterprise are material, equipment and human resource. Training allied to the
other human specializa�on within management, ensures a pool of manpower
of the required level of exper�se at the right �me.
MARUTI SUZUKI understands it very well and trains its employees accordingly
so that they are always ahead of their compe�tors. In our study we have tried
to understand methods adopted by Maru� Suzuki.
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Chapter 6: Special Experience.
Have you ever taken a step back and looked at your business, your job, or even
your personal life, and thought: What am I not doing right?!
The bright young minds at the Japan-India Ins�tute of Manufacturing (JIM)
may have some answers. At this state-of-the-art Industrial Training Ins�tute
(ITI), established by Maru� Suzuki at Ganpat University in Mehsana, Gujarat,
the students have perfected the Japanese art of discipline.
At JIM, students are exposed to an environment that mimics the factory where
they will eventually work. One of the core focus areas at the JIM is so� skills
training. Beginning with basics like grooming and dietary habits, the training
covers English communica�on, and the history of Japanese Technology.
Every year, Japanese trainers are invited to provide students with training in
the latest technical developments, and Japanese best business prac�ces. These
principles o�er four unique perspec�ves to the students:
Principle No.1 – Kaizen
Kaizen means con�nuous improvement. Mehul Waghela, who graduated from
JIM with �ying colours and now works at the Suzuki Motors plant in Hansalpur
says, “I have been working here only for 2 months, but I’ve already managed to
submit 3 sugges�ons for improvement.”
Iden�fying wastage and poten�al losses becomes second nature for someone
who is commi�ed to this principle.
Principle No.2 – 5S
While this may sound like the new model of the Maru� Suzuki Swi�, for
students at JIM, 5S is a philosophy to live by. Simply put, it consists of:
• Seiri (sor�ng): To dis�nguish between what is and isn’t needed;
• Seiton (se�ng in order): To get ready to pick what you need when you need
it at once;
• Seiso (cleanliness): To keep your workplace clean by removing rubbish, dust
or dirt;
• Seiketsu (standardising): To repeat Seiri-Seiton-Seiso according to a
predetermined schedule and improve & maintain the workplace environment.
• Shitsuke (sustaining the discipline): To observe what has been decided; To
train people to observe it;
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On the shop�oor, 5S helps to improve produc�vity, promote behavioural
change, and exposes problems. Siddharth Sonvar, Manager of Skill
Development at Maru� Suzuki says, “Before, there would be complete chaos
when the students were leaving the ins�tute for the day. We created a system
where the punching out could be done in an organised manner using the 5S
principles. In all the classrooms, you will never �nd a single thing out of place.”
Principle No.3 – 3G
While this sounds like a form of internet technology, 3G is a very important
Japanese management technique.
3G is made up of 3 simple rules: Genchi: Go to the actual place; Genbutsu: See
the actual thing; Genjitsu: Take necessary ac�on.
According to G.S Bairwa, a trade expert with over 3 decades of experience at
Maru� Suzuki, the 3G principle allowed him to iden�fy a problem that saved
the company an en�re day’s worth of produc�on- i.e, 500 cars.
Principle No.4 – Ho-Ren-So
At JIM, there is a strong emphasis on teamwork. And this is where the principle
of Ho-Ren-So comes in. It is an acronym made up of 3 Japanese words:
• Hokoku, which means to always report to your supervisor to ensure
transparency.
• Renraku, which means to inform your supervisor and teammates. Sharing of
informa�on is crucial in an organisa�on.
• Sodan, which means to consult. It is not necessary that even as a supervisor,
you will have the answer to everything.
The skills imparted to the students by these principles allows for a smooth
transi�on from learning in a classroom to working in a professional capacity.
For Mayur, an aspiring automobile technician, his training in keeping his
workplace neat and �dy using the principles of 5S translates into an
unclu�ered living environment where he is able to be at peace.
Armed with a strong syllabus developed by the Associa�on for Overseas
Technical Scholarship (AOTS), Japan, under the guidance of the Ministry of
Economy, Trade and Industry (METI), Japan, JIM provides a holis�c learning
environment. It transforms students into industry-ready, global workers. And
thus they are prepared to take on any challenges that the outside world throws
at them!
With an objec�ve to promote innova�on in the mobility space, Maru� Suzuki
India Limited has shortlisted three new startups as part of the 4th cohort of the
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MAIL (Mobility & Automobile Innova�on Lab) programme. These startups
include: Nable IT, Redbot and Sleave.
Commenced with an aim to nurture innova�on in the automobile and mobility
sector, Maru� Suzuki had launched the MAIL ini�a�ve in partnership with GHV
Accelerator in January 2019. The MAIL ini�a�ve is more than just a startup
accelerator. It aims to create a suitable environment to nurture, foster and
guide the early-stage startups. With the latest addi�on of three startups,
Maru� Suzuki is now engaged with 17 startups under the MAIL programme in
the last 2 years.
Explaining the Company’s e�orts towards mentoring startups, Mr. Kenichi
Ayukawa, Managing Director & CEO, Maru� Suzuki India said, “The startups
are poised to disrupt the consumer technology world. The Company's
MAIL initiative supports them by co-creating innovative business
solutions. The three new startups will now engage with Maruti Suzuki for
paid projects. In the end, the solutions offered by these innovative minds
will help delight customers.”
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