1. MARUTI SUZUKI
Operations Management
Prof. Suresh Dadlani
- Kishan Gupta
- Sourabh Gupta
- Anant Harichandan
- Shardul Ingle
- Prasoon Jadhav
- Mansi Jain
- Prathamesh Juwale
- Prashant Keswani
- Onkar Khamkar
- Mohammad Mudassir Khan

4. Maruti Suzuki
Pegasus

5. Dimensions
Length (mm)
4610
Width (mm)
1850
Height (mm)
1890
Wheelbase (mm)
2750
Ground Clearance (mm)
200
Kerb Weight (kg)
1980

7. Performance
Engine size (L)
2.2
Power (BHP@rpm)
135@6000
Torque (NM@rpm)
250@1750-2000
Power/Weight (BHP/ton)
68
Torque/Weight (NM/ton)
126
0-100 kmph
4 sec
Top speed
247 kmph (Unverified)

8. Process Recommendations

9. Line Process
• Very high volume and efficiency
• 3000 cars per month in single shift
• Kaizen Technique
• Transformation to automation

10. Make to Stock Strategy
Customer
Order
Chassis
Components
Mate
Body
Paint
Interior
Assembly
Delivery

14. Capacity Recommendations
• Indian SUV segment is on the rise
• Sales rising up 59% to 3,63,000 in 2012
• 1M by 2019
• Our car targets both SUV’s and MUV’s
• Plant capacity is 6000 units/month in 2 shifts
• Line has to be setup @ 15 JPH

15. Site Recommendations
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Site recommended-Pantnagar,Uttrakhand
Developed by-SIDCUL
Area -3300 sq acre
Population-3,50,00
Location-Located at National Highway no. NH-87. 235 Km
from National Capital Delhi and 300 Km from State Capital
Dehradun.
Connectivity-Nearest Rail Yard: 10 Kms
Nearest National Highway: Situated on National Highway NH87
Nearest Domestic Airport: Pantnagar
Nearest International Airport: Delhi 235 Kms

16. Factors for our site selection
• Proximity to source of supply:
– Reduce transportation costs of perishable or bulky raw
materials
• Proximity to labor:
– Local wage rates, availability of special skills
Factors Related to Resources
• Land availability, Land suitability, Land cost
• Energy availability, energy cost
• Water availability, water quality, water cost

17. Factors Related to the Infrastructure
• Government Stability and Availability of Financial
Institutions, Strength of Financial Institutions
• Government taxes
• Transportation availability, Transportation cost
• Equipment availability, Equipment Cost
• And finally, Competitors’ size, strength and
attitude in that region.
• Other considerations:
– Options for future expansion

18. Layout Recommendations

19. Layout Recommendations
LINE LAYOUT
• Large volume of production.
• Low variety.
• Low flow time required.
• Higher utilization of equipment.
• Lower degree of man power will suffice
• Low material handling.

20. Plant Layout (S-Flow)

21. Scheduling
Objectives
• Minimize completion time
• Minimize overall costs
• Maximize resource utilization.

22. Scheduling (cont)…

23. Flow production scheduling
• Sales of some products are subject to
seasonal fluctuations
• Have a fluctuating production
programme, to cater to changing demand

24. Critical Success Factors
• Cash Flows
• Vendor Management
• Inventory Management

25. Critical Success Factors
• Industrial Relations & Compliance
• Labour Relations
• Distribution & Service
Network
• Company Image

26. Strategy
Marketing
Product
Pricing
Distribution
Place
Promotion

27. SWOT Analysis
STRENGTH
1.Brand loyalty & trust
2.Service & Distribution
Network
3.Japanese Technology
4.Market leader
5.Great Dealership
WEAKNESS
1.Changing customer
preferences
2.Appears Daddy’s Brand
3.Exports are not that
good.
4.Lesser diesel models
5.Global image is not that
big
OPPORTUNITIES
1.Attraction of youth
2.Increasing Middle class
income
3.Export small cars
4.Overseas Market
THREATS
1.Foreign brands
2.Fuel Price

28. Competitive Advantages
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Image
Cost leadership
Revenue Stream Generation
Maruti True Value
Sales Network
Resale Value
Green Approach
Distribution Channel
One stop shop
Maruti Accessories
Authorized service stations
Maruti Driving School

29. High Risk Areas Examined

30. High Risk Areas Examined
• Macro Factors (Out of Direct Control)
1. Political
2. Economic
3. Socio – Cultural
4. Technological
5. Legal
• Micro Factors (Management Change)
Vendor Reliability, Distribution Channels, Union
Strikes, Emission control etc..

31. Macro Factors
Political Factors
• Continuous Fuel Price Revisions
• 34% increase since 2010
• Inflationary Pressures
• Rise in lending rates

32. Macro Factors (cont)..
Economic Factors
“Car sales can only increase when people have more
income, people need money to run their car. This is
only possible when there is economic growth” – RC
Bhargava, Chairman, Maruti Suzuki India
• Credit Financing
• Low Per Capita Income
• Rising Prices

33. Macro Factors (cont)..
Socio-Cultural Factors

34. Macro Factors (cont)..
Technological Factors
• Automobile design
• Manufacture
• Internet ??
Legal Factors
• Acceptable Safety Standards
• Emission Control

35. Micro Factors
• Vendor Reliability
• Distribution Channels
• Union Strikes
• Emission control
• Fuel Efficiency

36. Any other important highlights
• Sales are slump
• It’s a niche segment  Aggressive pricing 
Minimum Investment
• Export options

37. THANK YOU