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Maruti Udyog Limited Case Study Ppt Sample

Working with pride in India

Maruti Udyog Ltd., a subsidiary of Suzuki Motor Corporation of Japan, has been the leading Indian passenger car maker for about two decades. The company has a diverse portfolio that includes: the Maruti ; the Omni; a premium small car, Zen; the international brands, Alto and WagonR; an off-roader, Gypsy; the mid-size Esteem; a luxury car, Baleno; an MPV,Versa; a premium subcompact car, Swift; and a luxury SUV, GrandVitara XL7. The company’s 11 base platforms encompass variants for export destinations.

According to Maruti’s vision statement, its goals include maintaining leadership in the Indian automobile industry, creating customer delight, increasing shareholder wealth and being “a pride of India.” Customers have shown their approval, ranking Maruti high in customer satisfaction for six years in a row according to the J.D. Power Asia Pacific India Customer Satisfaction Index (CSI) Study. The company has also ranked highest in the India Sales Satisfaction Study.

The need for PLM

Among the company’s product development challenges, the need for shorter cycle times is always at the top. Management wants to be able to launch new models faster and reduce the time required for minor changes and development of product variants. Another challenge is co-development. Maruti’s goal is to collaborate closely with its global teams and suppliers on the development of new platforms and product freshening. Other challenges include streamlining the process of vehicle localization and enhancing quality and reliability.

These challenges pointed directly to a product lifecycle management (PLM) solution with capabilities for information management, process management, knowledge capture and support for global collaboration; a PLM solution directly addressing Maruti’s business challenges. For example, PLM’s information management capabilities address the issue of the many platforms, local variants and export destinations. Process management permits concurrent development and faster change management and provides a platform for other process improvements for faster vehicle development. Knowledge capture increases innovation and also reduces costs by increasing part re-use. PLM’s collaboration capabilities permit global development by ensuring fast and accurate dissemination of product information.

Implementation profile

Maruti selected the Siemens PLM Software solution because “Siemens leverages the business value by offering a complete PLM solution,” according to C.V. Raman, general manager, Engineering Division, Maruti Udyog Ltd. Maruti’s PLM implementation includes Teamcenter®, NX™ and Tecnomatix® software.

Teamcenter provides a wide range of functionality for release management, including bills of material management and change management. Teamcenter also handles the vehicle localization process, coordinates the part approval process and integrates design and engineering information with the company’s ERP system. In addition, Teamcenter provides the infrastructure for global collaboration. It does this by permitting real-time data sharing with suppliers in India and the global Suzuki team.

NX supports vehicle design by providing advanced tools for styling, product design and digital mockup. Its system-based modeling solution (WAVE) simplifies the creation of product variants. NX is also used for tool design and the development of machining programs.

Tecnomatix automates manufacturing process planning (final assembly and body-in-white) and allows for assembly feasibility studies, ergonomic analyses, welding cell simulations and so on.

PLM delivers results

Since implementing the Siemens PLM solution, engineering change notice (ECN) time at Maruti has decreased by 50 percent. The number of ECN errors has also been cut in half. Cost reduction, which had been occurring to some extent before the PLM implementation, is even more effective now, an improvement of 54 percent.

With 3D parametric models now representing all elements of a vehicle, design reviews include digital mockups, which people find much easier to understand than drawings. On a recent program, digital design reviews revealed 36 issues that previously would not have been detected until the prototype stage, resulting in program woaknb.wz.sk the Siemens PLM implementation, such delays are now avoided. Factory simulation functionality has had equally beneficial results. Digital 3D plant layouts reduce errors and have cut personnel costs for accommodating new product introductions. In addition, Maruti has seen a 50 percent reduction in assembly/build issues.

From the business perspective, all this means vehicles get to market sooner. The company has experienced a reduction in design-to-launch time of 25 percent, and expects a further reduction of 15 percent as more of the collaboration with Suzuki and suppliers is done electronically in real time. From the customers’ perspective, the move to the Siemens PLM solution is seen in lower prices. Since the implementation of Teamcenter, NX and Tecnomatix, Maruti has reduced prices for five car models.

 

Relations

Since its founding in , Maruti Udyog Limited experienced few problems with its labourforce. TheIndian labourit hired readily accepted Japanese work culture and the modernmanufacturing process. In , there was a change in ownership, and Maruti becamepredominantly government controlled. Shortly thereafter, conflict between theUnited FrontGovernmentand Suzuki started. Labour unrest started under management of Indian centralgovernment. In , a major industrial relations issue began and employees of Maruti went onan indefinite strike, demanding among other things, major revisions to their wages, incentivesand woaknb.wz.skees usedslowdownin October , to press a revision to their incentive-linked pay. Inparallel, after elections and a new central government led byNDA alliance,India pursued adisinvestments policy. Along with many other government owned companies, the newadministration proposed to sell part of its stake in Maruti Suzuki in a public offering. Theworker's union opposed this sell-off plan on the grounds that the company will lose a majorbusiness advantage of being subsidised by the Government, and the union has better protectionwhile the company remains in control of the woaknb.wz.sk standoff between the union and themanagement continued through The management refused union demands citing increasedcompetition and lower margins. The central government prevailed and privatized Maruti in Suzuki became the majority owner of Maruti Udyog Limited.

Hurdles

On 24 February , Maruti Suzuki India announced recalling of , A-Star hatchbacks tofix a fuel leakage problem. the company will replace the gaskets for all , A-Star woaknb.wz.sk Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and itdoes not operate in the domestic Indian market. The first commercial consignment of carswere sent woaknb.wz.sk sending a consignment of cars to the same country Maruti Suzukicrossed the benchmark of , cars. Since its inception export was one of the aspectsgovernment was keen to encourage.s

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Every political party expected Maruti Suzuki to earnforeign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka,Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by woaknb.wz.sk Brand Trust Reportpublished by Trust Research Advisory has ranked Maruti Suzuki in theseventh position in and the sixth position in among the brands researched in woaknb.wz.sktes Newsa news research agency, rated Maruti Suzuki as India's Most Reputed Car

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