MARUTI UDYOG LIMITED – Managing competition successfully
Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system. It was established with the objectives of - modernizing the Indian automobile industry, producing fuel efficient vehicles to conserve scarce resources and producing indigenous utility cars for the growing needs of the Indian population. A license and a Joint Venture agreement were signed with the Suzuki Motor Company of Japan in Oct 1983, by which Suzuki acquired 26% of the equity and agreed to provide the latest technology as well as Japanese management practices. Suzuki was
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Attendance approximated around 94-95%. The plant had an open office system and practiced on-the-job training, quality circles, kaizen activities, teamwork and job- rotation. Near-total transparency was introduced in the decision making process. There were laid-down norms, principles and procedures for group decision making. These practices were unheard of in other Indian organizations but they worked well in Maruti. During the pre- liberalization period the focus was solely on production. Employees were handsomely rewarded with increasing bonus as Maruti produced more and sold more in a seller’s market commanding an almost monopoly situation.
INDUSTRY ANALYSIS
GLOBAL FOUR WHEELER INDUSTRY
Evolution
The automobile industry has undergone significant changes since Henry Ford first introduced the assembly line technique for the mass production of cars. Production concepts, processes and the associated technologies have changed dramatically since the first cars were built. Some 70 years ago, car assembly was primarily manual work. Today, the process of car assembly is almost fully automated. In the old days, firms attached importance to the production of virtually every part in a single plant, while today, carmakers concentrate on only a few specific production stages (i.e. car assembly). Parts and module production, services and related activities have been shifted to other, specialised firms (outsourcing of production steps).Since the 1980s, it has
In the 1913’s Henry Ford invented the assembly line that was the turning point in the United States and the automobile industry. The purpose of the assembly line was to make production faster and cheaper. The assembly line was so successful that it had a tremendous effect on automobile industry because it helped save time and money. For instance before
The use of assembly line in automotive industry has improved the production of vehicles, while lowering the cost. Before the invention of assembly line, cars had to be crafted one at a time by skilled workers, which was very costly and time consuming. During this time, the demand for cars was very high. However, it was very expensive that only the rich could afford it. The production of cars increased dramatically with the installation of assembly line while the cost was reduced. The first assembly line
Customer satisfaction is co-function of every organisation, Martui Suzuki has been able to satisfy its customer expectation. Presently gaining high levels of customer satisfaction is very important to a business or any company because satisfied customers are most likely to be loyal and to make repeat orders and to use a wide range of services offered by a
Car changed human’s living style no matter what it used to be:the travel mode or work place. However the automobile industrial is profit from the Henry Ford’s invent. This technology born in the second industrial revolution, and also be the sign for this great leap. Automobile used to be the very expensive good for the rich, the reason is every vehicles are made by worker’s hand, the low production efficiency and high cost made car can’t be popularity in the society. The true inventor of assembly line is unverified, but Ford is the first acknowledged person who practical applicate the assembly line in the industrial producing in 20th century. Inventors invent things and make money form patent right,they are wealthy;innovators never invent
Ford realized that he must change his methods of production in order to decrease the price of his automobiles. His invention of the assembly line actually started before the Model T came out, but Ford did not know it at the time. The Model N was built prior to the Model T. The workers on the Model N automobiles placed the parts in order along the floor while the “under-construction” auto was on skids and moved down the line. The workers placed their respective parts on the machine as it passed by. For the Model T, Ford tried to make his process even better. He broke the assembly process into 84 small steps. On top of this, workers were trained for only one of the 84 steps. By having a machine that could make interchangeable parts faster than any human, the process accelerated quickly and there was no shortage on supplies. With the combination of the new parts machine, line of workers trained per step, and an order of parts, the assembly line was born. Figure 1 below shows the wheels and hubcaps of Model T cars being assembled using the assembly line. The excessive amounts
It remoulds the manufacturing industries with optimized productivity by making a radical departure from traditional mastery of a craft and rationalizing work, skills and routines. It is the most common strategies conducted in nowadays large scale secondary industries as its outputs are easily quantifiable and predictable. Also, other industries are adhered to the principles of assembly line (Whitfield, 2004). McDonald is one of the typical examples that demonstrates the incorporation of it into the service industries. Staff mechanically repeat the same specialized task, frying French fries, making hamburgers, filling cups with soft drinks and etc. Customers also inherently conform to the rationalized business mode of McDonald by filing forward in queues to get the meal as if on a conveyor belt. This illustrates that the influence of the assembly line is wide-ranging, profound and long-lasting.
Before 1907 when Henry Ford installed the first assembly line, the early 20th century provided automobiles for mostly the rich as a showing of “keeping up with the Jonseses.” The car models were mostly complicated machines which mostly required a chauffeur knowledgeable on how to operate the complex automobile. The invention helped reduce a four men work to a one men power. It first took around more than 12 hours to build one car to 2 hours and about 30 minutes. Henry Ford said that “by the aid of scientific study one man is now able to do somewhat more than four did only a comparatively few years ago. That line established the efficiency of the method and we now use it everywhere. The assembling of the motor, formerly done by one man, is now
Ans: Tata Motors was a leading player in the segment of commercial vehicle market. In 1954 Tata Motors in collaboration with Daimler Benz started manufacturing heavy commercial vehicles like excavators and earth moving equipment’s. When Japanese firms Toyota, Mitsubishi and Nissan entered the Indian market through joint ventures for manufacturing light motor vehicles, Tata Motors took this opportunity and developed light motor vehicles (TATA 407, TATA 608, and TATA 709) that went ahead of the Japanese firms due to low cost, adaptable to Indian road conditions and good after sales service.
Although a major drawback of this method is the initial investment required to establish a production facility. This may result in capital is for a considerable time have a large amount of bound until it profitable factory. The assembly line is still the most important in the 20th century.Production technological progress with lines wiped out many of the disadvantages of the prior methods.There are three main factors that result from the assembly line a great success. First, there is no special training in the assembly line, which means that it jobs that almost anyone can make it necessary. Before the assembly line was invented, people who had worked in a group to wait for someone who can not deliver their part of the work on time. Once someone does not do
Hero Honda CBZ - Indian bikers were subjected to 100 cc bikes, until Hero Honda launched the CBZ in 1999. At that time, there was nothing in India which was as powerful on 2-wheels as the CBZ. The Hero Honda CBZ was way ahead of other bikes at that time.
Ford Motor Company began a relentless drive to increase production and lower costs. Henry and his team borrowed concepts from watch makers, gun makers, bicycle makers, and meat packers, mixed them with their own ideas and by late 1913 they had developed a moving assembly line for automobiles. The assembly line is a series of workers and machines in a factory by which a succession of identical items is progressively assembled. This idea has been in every automotive factory for many
The very first cars were made by hand. Modern automobile manufacturing techniques are more advanced. It is easier to have multiple people to work on a vehicle then to have one person work on it. This way the vehicle can go down a conveyor belt and have people work on it as it passes them. They have specific task they have to complete. They do this because this way the vehicle can get done quickly and efficiently. Many workers specialize in several special tasks and become more skilled and faster in the completion. This is also another way that many vehicles can be made alot faster. Henry Ford is the person who created the assembly line just to manufacture the cars more efficiently. At the first factory he ever had he could make a vehicle from
Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners.
According to National academies press, the U.S. automotive industry is composed of three major U.S.-based manufacturers (Chrysler, Ford, and General Motors), several non-U.S.-based (transplant) vehicle assemblers, and a vast network of parts and components suppliers. Collectively, the industry produces and sells approximately 15 million cars and light trucks each year. And that manufacturing facilities include small specialty-parts plants, large foundries and engine and transmission plants, and vehicle assembly plants, which employ thousands of people and produce several hundred thousand vehicles per year. (1999, p52)
Tata Motors is India’s largest passenger automobile and commercial vehicle established in 1945 Listed on the New York Stock Exchange in 2004. TATA Motors is best example that has a number of Acquisition, subsidiaries, Associate Companies and Strategic Tie-up. One can attribute the difference in the outcomes to the differences in approaches to acquisition process. TATA employed a method which is directly opposite to Daimler. The essence of this method lay in respecting the existing culture rather than imposing a foreign culture. The expansion continues with the Acquisition of Jaguar Land Rover, the world’s most respectable and iconic brands.