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Operation Management

Table of Contents

Introduction.

Background of the company.

Marketing mix.

Process flowchart

Order Qualifiers.

Order losing sensitive criteria.

Order winners.

Suggestion to reduce CT.

Conclusion.

References and bibliography.

Introduction to Maruti Suzuki Analysis

Operation management can be defined as process for any organisation by which planning, organising and supervising of project can be possible. This area is related with productivity generation and sustainability in profit can also be ensured through this. In addition, adjustment of operation is necessary for any organisation on a daily basis for meeting strategic goals in a proper manner. In this study, car manufacturing process of Maruti Suzuki is described from which it becomes possible to understand Cycle Time (CT) and its proper execution. The aim of this study is to analyse operation management scheme of the above-mentioned company and future recommendations are also enlisted for reducing CT in a potential manner.

Background of the Company

Maruti Udyog was established on 24 February, 1981 and this is one of the sustainable car manufacturing companies in India. This brand has tied knot with Japanese car manufacturer Suzuki in 1982 for providing better vehicle for all customers. This company follows customer centric business model and demands and complaints of the consumers are preferred potentially. In addition, joint venture scheme sets better profit margin for this organisation and application of digital marketing is also an innovative perspective to improve business process. Along with this, fast and flexible supply chain management follows 4.0 technologies and implication of green technology is also advantageous (Marutisuzuki.com, 2020). On the other hand, this company recruits skilled employees and unique design of car model helps to attract customers more. As a result, it becomes possible for them to acquire net profit of Rs. 950 crore in 2019 and this is quite sustainable for future upbringing of this organisation (Marutisuzuki.com, 2020).

Marketing Mix

Maruti Suzuki is a public limited company that is generally deals with car manufacturing process under joint venture scheme. This company follows 4 P’s marketing mix to establish its position in competitive market.

Product

Maruti Suzuki is one of the biggest car manufacturing in India and it occupies more than 37% market share in Indian market. Both the passenger cars as well as trade facilitated cars such as Alto, A-Star, Ritz, Swift, Celerio, WagonR, DZire etc. are made by this organisation. As per the view of Airtel & Suzuki (2020), low price products are offered by this organisation with high quality. In addition, internal members and customers are main stakeholders for this company and annual maintenance of cost is reliable in nature.

Place

Previously, Maruti imported cars outside from India but a plan was established in Gurgaon in 1983 with a capacity of manufacturing 200,000 units per year. It generally focuses on local manufacturers of North Indian cities for developing their products and sustainability. As per the opinion of Bal & Dhal (2019), currently this company has thirty service stations across India with high production rate. Moreover, 93 dealers are also conjugated with Maruti Suzuki across this country for improving business process at any situation.

Price

Penetrative and competitive pricing strategy is acquired by Maruti Suzuki and its helps to make better policy and its suitable execution. As pointed out by Choudhary et al. (2018), low cost and high-quality products help this organisation to generate more revenue in competitive market and customers also accept reasonable and affordable pricing policy. On the other hand, this company focuses on business volume in a crucial way and by incorporating franchises, it becomes possible to increase revenue with continued success.

Promotions

Both the traditional and non-traditional media are used by Maruti Suzuki to promote their brands across the globe. However, this company generally targets Indian people and give advertisement of their products in television, newspapers, social sites such as Facebook, Instagram, YouTube etc. According to the view of Dingra & Padmavathy (2019), distinctive promotional strategy is followed by this company and different seminars are organised to communicate with customers. O the other hand, this company address famous actors of India such as R. Madhavan and informational and emotional promotion is accomplished through brand ambassador.

Process Flowchart

Flowchart for four step manufacturing process of Maruti Alto 800 is forecasted below and time for each step is also projected in a relevant manner.

Cycle 1

KB CASTING SHOP

KB MACHINE SHOP

KB ENGINE SHOP

FC ENGINE MACHINE SHOP

FC ENGINE SHOP 1, 2 & 3

The above process is a primary set up of cars and their bodies and machine and engine set up is accomplished in this step for providing primary backbone of this manufacturing process. All the above-mentioned steps required to produce primary structure of the car and proper communication with vendors are required to enhance production process.

Cycle 2

WELD SHOP PLANT-2 & WELD SHOP PLANT-3

PAINT SHOP PLANT-3

ASSEMBLY SHOP PLANT-3

FINISHED VEHICLE YARD

The above three steps are accomplished at the end of car manufacturing process and it is directly related with cycle 1 for providing greater viability in car making process. This step requires near about 4 months and it is quite time consuming to accomplish entire process of finishing step. Cars are sent to assembly shop from machine shop and all the parts are assembled in a perfect order to provide better insight for this process.

Cycle 3

COIL STORAGE AREA

PRESS SHOP

PAINT SHOP PLANT-2

ASSESMBLY SHOP PLANT-3

FINISHED VEHICLE YARD

This is the third step of manufacturing and it requires more or less 5 months and this time is really high and reduction is needed for this process. Moreover, it can be accomplished within 2 months for better sustainability in business process.

Cycle 4

WELD SHOP PLANT-1

PAINT SHOP PLANT-1

ASSEMBLY SHOP PLANT-1

FINAL YARD

DISTRIBUTION

Distribution is the final step of this project and it is needed to reduce the time of product supply for the customers. Moreover, this step will allow to improve business propagation and stakeholder’s management can also be ensured in a correct order.

Order Qualifiers

An order qualifier is a component of a service or service that is required in order for a consumer to even receive the product / service. An order winner is a functionality that will win the purchasing of the deal or client. In order to get into or remain in a market, companies must then have the qualifiers. For starters, for most businesses, quality is considered an order prerequisite. The automotive industry, for instance, faces customers who expect consistency as a guaranteed and do not regard it as an order winner (Navaneetha, Padmasri & Pavithira, 2018). The corporation becomes unacceptable when car producers have records of product failures or recalls, which is not accepted as part of the option collection of a customer.

In order to be a successful competitor in the market arena, order qualifiers are the valuable concept that an organisation must show. For example, if Pear Goods, an engineering works, does not meet the minimum requirements for order qualifiers, clients may disregard or deny their goods and services. In case of Maruti Suzuki unique design of cars and their proper execution in Indian automobile market can help to provide better insight in business process and development in future process can also be ensured (Lata & Singh, 2017). On the other hand, digital marketing and brand ambassador based promotional criteria is a potential order qualifier for this company to make it viable in global business environment.

Order Losing Sensitive Criteria

If the expense of selling at such a high-quality level causes the cost of the product to surpass a certain price amount (which is an order-qualifying criterion), the end result could be decreased revenues, making "quality" a characteristic of order-losing. Both market-specific and time-specific are order-winners and qualifiers. In case of Maruti Suzuki, order losing can be occurred due to improper communication with customers and misbehaviour. On the other hand, dilemma in product supply can also be another major fact that in turn can effects on customer communication and future development can also be acquired in a better way (Leykun, 2019).

Order Winners

Order winners are the strategic advantages that allow a firm's clients to buy the goods or services of that company, such as efficiency, distribution speed, durability, product style, durability, and logo. It is the primary reason why clients buy a commodity from a firm (Ramya & Bharathi, 2018). For example, for prestige and efficiency, the Shine family vacations at Lake Tahoe, while they order all of their goods from Pramazon for fast delivery time. Teenage children of the Shine family are faithful to Pear Products for model design of technology products and, for their durability, buy Big John backpacks. Moreover, technological accumulation is needed for firms to manage business process in a correct order.

In case of Maruti Suzuki, operation management process itself is an order winner for this firm as it enables proper distribution of goods across national and international levels. On the other hand, location selection is also another major advantage for this organisation for this company and future development can be acquired in a perfect manner (Saini, 2016). Apart from this, 4.0 technology implementation in inventory management is another major facility for this company to determine success criteria at any situation. On the other hand, proper communication channel is also acquired by this firm through campaign and understanding and execution of public demand can also help to increase profitability in a proper manner.

Suggestion to Reduce CT

  • It can be recommended for this organisation to avoid multi-tasking and this can help to reduce cycle type for each production process and development of future sustainability can also be acquired. On the other hand, it can be tempting, particularly if they seem small or simple, to want to take care of a few tasks at once (SHRESTHA, 2019). But it just doesn't work. When we suggest that we can comfortably juggle conference calls, interviews, and lunch, we're fooling ourselves. Focus on one job at a time, and you'll end up doing it quicker.
  • It can be suggested for Maruti Suzuki to give breaks for employees and this can help to ensure better sustainability in business process. Apart from this, it will be helpful to encourage communication within work process and understanding of value in communication can also be ensured in a better way. We may assume that working more hours means that we get more done, but when we are stressed out, we just work as well (Sharma & Jain, 2019). Studies suggest that taking occasional breaks improves focus and enhances the mood. Take a stroll around the building for five minutes, or waste 15 minutes grabbing the mid-afternoon cup.
  • It can be recommended to set small goals for this organisation and proper monitoring of all the steps are needed for reducing cycle timing in operation management process and this can also help to provide better justifications in working process (Sudan, 2020). Often, it can be daunting to look at our priorities. It can be daunting to have a handful of major assignments on our schedule. Yet if you split it apart into smaller activities, you'll feel more in charge and be much more efficient. Instead of writing down the "finish job," split it into all the assignments it will take. In the day-to-day, this will keep you on board and make larger projects feel less harmful.

Conclusion on Maruti Suzuki Analysis

It can be concluded from this study that operation management is an integra part for any business entity and this helps to develop productivity as well as profitability for any organisation. In case of Maruti Suzuki, establishment of proper marketing mix is necessary to deliver accurate car manufacturing process. On the other hand, distinctive promotional strategy as well as penetrative pricing scheme is helpful to gain trust and confidence from customers. Four steps process flow is followed by this organisation and by this scheme, the company is able to control production and distribution time of cars. However, time for car manufacturing process is really high for this company development of technology can be needed for reducing this dilemma. Apart from this, order from external stakeholders can be lost for this company because of inequality in monetary transactions. Therefore, development of organisational transparency is needed to gain regular profit in competitive automobile market.

References and Bibliography for Maruti Suzuki Analysis

Airtel, B., & Suzuki, M. (2020). Today’s top research idea Market snapshot. Retrieved from: https://www.dsij.in/productAttachment/premarketreports/Premarket_MORNING_INDIA_MOSL_06.02.2020.pdf

Bal, T., & Dhal, S. K. (2019). Integrated Reporting: A Case Study of Maruti Suzuki India Ltd. Srusti Management Review, 12(2), 108-109. Retrieved from: http://srustimanagementreview.ac.in/paperfile/2086673545_10Integrated%20Reporting%20%20A%20Case%20Study.pdf

Choudhary, S., Nayak, S. K., Malik, A., & Singh, D. K. (2018). Important Issues in Supply Chain Management and Development. Retrieved from: http://ijrra.net/Vol5issue1/IJRRA-05-01-10.pdf

Dingra, R., & Padmavathy, G. (2019). Green Human Resource Management–A leap towards sustainability. International Journal for Advance Research and Development, 4(1), 50-57. Retrieved from: https://www.ijarnd.com/manuscripts/v4i1/V4I1-1166.pdf

Kalaivani, P., & Jothi, K. (2017). Impact of working capital management on profitability of the select car manufacturing companies in India. International Journal of Pure and Applied Mathematics, 116(24), 13-21. Retrieved from: https://acadpubl.eu/jsi/2017-116-23-24/articles/24/2.pdf

Kansal, K. K., & Singh, A. (2016). Impact Of Organization Change On Employees Performance In Maruti Suzuki. International Journal Of Research in IT and Management, 6(11). Retrieved from: http://www.academia.edu/download/50900608/2IMNov-4215.pdf

Lata, H., & Singh, A. (2017). Customer Satisfaction Towards Maruti Suzuki Cars: A Case Study of Solan City, Himachal Pradesh. International Journal of Advance Research and Innovative Ideas in Education, 3(4), 493. Retrieved from: http://www.academia.edu/download/61685862/CUSTOMER_SATISFACTION_TOWARDS_MARUTI_SUZUKI_CARS__A_CASE_STUDY_OF_SOLAN_CITY__HIMACHAL_PRADESH_ijariie599920200105-20631-q90j0i.pdf

Leykun, F. (2019). MARUTI SUZUKI INDIA LIMITED STRATEGIC MANAGEMENT:(A CASE STUDY). International Journal of Research In Commerce and Management Studies (ISSN: 2582-2292), 1(3), 16-43. Retrieved from: https://ijrcms.com/index.php/ijrcms/article/download/24/20

Navaneetha, B., Padmasri, R., & Pavithira, A. (2018). A ratio analysis of Maruti Suzuki India Ltd. IJAR, 4(3), 06-10. Retrieved from: https://pdfs.semanticscholar.org/dc28/71308e182125893ebcb2dec868eecaac0ba6.pdf

Ramya, K., & Bharathi, C. K. (2018). CUSTOMER PERCEPTI ON MODEL FASHI ONED WI TH REFERENCE TO THE MARUTI SUZUKI BRAND. SELP JOURNAL OF SOCIAL SCIENCE, 41. Retrieved from: https://iaraindia.com/wp-content/uploads/2018/12/SELP-Journal-previous-isses.pdf#page=43

Saini, D. S. (2016). A popular HR chief burned to death: People management dynamics at the Indian subsidiary of Suzuki Ltd. Hong Kong: Asia Case Research Centre, University of Hong Kong (Ref. 15/566C). Retrieved from: https://www.researchgate.net/profile/Debi_Saini/publication/301357210_Teaching_Note_of_Case_A_POPULAR_HR_CHIEF_BURNED_TO_DEATH_PEOPLE_MANAGEMENT_DYNAMICS_AT_THE_INDIAN_SUBSIDIARY_OF_SUZUKI_LTD/links/5716368f08ae5925760c8316

Sharma, P., & Jain, A. (2019). Case Study on Tata Motors and Maruti Suzuki. Journal of the Gujarat Research Society, 21(11), 254-261. Retrieved from: http://gujaratresearchsociety.in/index.php/JGRS/article/download/855/707

SHRESTHA, S. (2019). Supplier development in Indian auto industry: Case of Maruti Suzuki India Limited. The bulletin of the Graduate School, Soka University, (39), 1-15. Retrieved from: https://soka.repo.nii.ac.jp/index.php?action=pages_view_main&active_action=repository_action_common_download&item_id=39856&item_no=1&attribute_id=15&file_no=1&page_id=13&block_id=68

Sudan, F. K. (2020). Leveraging the Participation of Small, and Medium-Sized Enterprises in Global Value Chains of the Automotive Industry: Insights from Maruti Suzuki India Limited. Retrieved from: https://www.think-asia.org/bitstream/handle/11540/12361/adbi-wp1167.pdf?sequence=1

Website

Marutisuzuki.com, (2020). Retrieved from: www.marutisuzuki.com. [Retrieved on: 16.09.2020]

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