Beruflich Dokumente
Kultur Dokumente
Determining
Customer
Satisfaction
Index IN MARUTI
SUZUKI
RAHUL LAKHOTIYA
2011
PREM MOTORS
PREFACE
Customer satisfaction, a term frequently used in marketing, is a measure of
how products and services supplied by a company meet or surpass customer
expectation. Customer satisfaction is defined as "the number of customers, or
percentage of total customers, whose reported experience with a firm, its
products, or its services (ratings) exceeds specified satisfaction goals."
My summer training for 40 days at Prem motors Pvt. Ltd., Jaipur was an eye
opening experience to see the impact of liberalization 90’s. It has brought the
corporate sector into global mainstream and momentous market reforms.
At Prem Motors Pvt. Ltd., I got a chance to apply my theory to the latest
technological, general management and marketing environment.
I thank my Teachers for their constant guidance. Their advice and suggestions
have been remarkable in handling various first hand situations at work.
We thank all the colleagues for providing unending support in the project.
Sincere thanks to RAJASTHAN UNIVERSITY.
Above all we thank The Almighty and our Parents for their
invincible faith in us and support that has proved to be a lethal
motivating factor.
RAHUL LAKHOTIYA
MIB 2009-11
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Maruti Suzuki
Maruti Suzuki offers 10 models, ranging from India's best selling car, Maruti
800, for less than INR 200,000 (US$ 5000) to the premium sedan Maruti SX4
and luxury SUV, Maruti Grand Vitara. Maruti 800 was the first model launched
by the company in 1983 followed by mini-van Maruti Omni in 1984. Both
models were huge success in their respective categories because of the use of
high-end technology and good fuel efficiency. Maruti Gypsy, launched in 1985,
came into widespread use with the Indian Army and Indian Police Service
becoming its primary customers. The short-lived Maruti 1000 too achieved
moderate success until it was replaced by Maruti Esteem in 1994, to counter
increasing competition in the medium-sedan category.
Maruti Zen, launched in 1993, was the company's second compact car model
and also became extremely popular in India because of its high performance.
The company went on to launch another compact car Maruti Wagon-R followed
by Maruti Baleno in 1999. However, with increasing competition from Tata,
Hyundai, Honda and Daewoo Motors, Maruti was not able to achieve the same
success with Wagon-R and Baleno as it had with its earlier models.
In 2000, Maruti Alto was launched. The launch of Tata Indica and Hyundai
Santro had affected Maruti's sales but Alto helped secure the company's
position as the auto leader in India. It is currently the largest selling car in India.
The Maruti models include Maruti Suzuki Grand Vitara, launched in 2003,
Maruti Versa, launched in 2004, Maruti Suzuki Swift, launched in 2005, Maruti
Zen Estilo and Maruti Suzuki SX4, launched in 2007. The company is expected
to launch Maruti Suzuki Liana sedan in January 2008.
Objective:
Theory:
This project leads to check whatever theory been studied about customer
satisfaction and customer satisfaction Index, does that really apply in practical
aspect.
T-test:
T-Test model is the best model to study the hypothesis, whenever the sample
size is more than 30.
Procedure:
The project has been accomplished by taking the opinions of the clients by
making them fill the questionnaires. Thus, by the help of Ms-Excel, the t-test
has been applied and the project had been accomplished.
The project flow that is the manner in which the project has been accomplished
is stated in the project flowchart stated below. The flowchart contains the
procedure that has been adopted during the completion of the project:
PROJECT FLOWCHART
TABLE OF CONTENTS
PREFACE
ACKNOWLDGEMENT
EXECUTIVE SUMMARY
I) PROJECT FLOWCHART
II) LITERATURE
III) ANALYSIS and INTERPRETATIONS
IV) CONCLUSIONS
BIBLIOGRAPHY
APPENDIX
M
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The domestic passenger car industry grew 11.8 percent in 2007-08, making
this the sixth successive year of positive growth. But, industry performance
during the year was inconsistent, with periods of high growth interspersed
by months of low demand. Growth was model-specific, driven by select
brands from different industry players.
OVERVIEW
The domestic passenger car industry grew 11.8 percent in 2007-08, making this
the sixth successive year of positive growth. But, industry performance during
the year was inconsistent, with periods of high growth interspersed by months
of low demand. Growth was model-specific, driven by select brands from
different industry players as opposed to the general buoyancy witnessed during
the previous year (2006-07). The Company's domestic sale volume grew
slightly more than the industry at 12 percent, and was the highest ever since
inception. While continuing to lead in the A2 segment (compact cars), the
Company also regained leadership of the A3 segment (sedans) after a gap of
several years.
INTRODUCTION
During 1960s and the 1970s there were only two manufacturers in the market,
Hindustan Motors and Premier Automobiles with limited production capacities.
The import of passenger cars was restricted to the State Trading Corporation
(STC) and foreign diplomats.
During that period the passenger car industry in India grew at a nominal CAGR
of approximately 3.6%. The rate of customs duty levied on cars was 225%.
Key players in the Indian auto industry - Passenger Cars and CVs
The third largest passenger car manufacturer in India and one of the largest
exporters of vehicles. Has established India as one of its manufacturing
bases in the world. Is planning to invest heavily to boost exports from India.
The largest player in the Indian industry. Plans to launch new and exciting
products in the Indian markets, including the ‘100,000’car.
Other global players who are in India / have plans for India
include -
In 1909, Michio Suzuki founded the Suzuki Loom Company in the small
seacoast village of Hamamatsu, Japan. Business boomed as Suzuki built
weaving looms for Japan's giant silk industry. Suzuki's only desire was to build
better, more user-friendly looms. In 1929, Michio Suzuki invented a new type
of weaving machine, which was exported overseas. Suzuki filed as many as 120
patents and utility model rights. For the first 30 years of the company's
existence, its focus was on the development and production of these
exceptionally complex machines.
Despite the success of his looms, Suzuki realized his company had to diversify
and he began to look at other products. Based on consumer demand, he decided
that building a small car would be the most practical new venture. The project
began in 1937, and within two years Suzuki had completed several compact
prototype cars. These first Suzuki motor vehicles were powered by a then-
innovative, liquid-cooled, four-stroke, four-cylinder engine. It featured a cast
aluminum crankcase and gearbox and generated 13 horsepower from a
displacement of less than 800cc.
With the onset of World War II, production plans for Suzuki's new vehicles
were halted when the government declared civilian passenger cars a "non-
essential commodity." At the conclusion of the war, Suzuki went back to
producing looms. Loom production was given a boost when the U.S.
government approved the shipping of cotton to Japan. Suzuki's fortunes
brightened as orders began to increase from domestic textile manufacturers. But
the joy was short-lived as the cotton market collapsed in 1951.
Faced with this colossal challenge, Suzuki's thoughts went back to motor
vehicles. After the war, the Japanese had a great need for affordable, reliable
personal transportation. A number of firms began offering "clip-on" gas-
powered engines that could be attached to the typical bicycle. Suzuki's first two-
wheel ingenuity came in the form of a motorized bicycle called, the "Power
Free." Designed to be inexpensive and simple to build and maintain, the 1952
Power Free featured a 36cc two-stroke engine. An unprecedented feature was
the double-sprocket gear system, enabling the rider to either pedal with the
engine assisting, pedal without engine assist, or simply disconnect the pedals
and run on engine power alone. The system was so ingenious that the patent
office of the new democratic government granted Suzuki a financial subsidy to
continue research in motorcycle engineering, and so was born Suzuki Motor
Corporation.
In 1953, Suzuki scored the first of countless racing victories when the tiny 60cc
"Diamond Free" won its class in the Mount Fuji Hill Climb.
By 1954, Suzuki was producing 6,000 motorcycles per month and had officially
changed its name to Suzuki Motor Co., Ltd. Following the success of its first
motorcycles, Suzuki created an even more successful automobile: the 1955
Suzulight. Suzuki showcased its penchant for innovation from the beginning.
The Suzulight included front-wheel drive, four-wheel independent suspension
and rack-and-pinion steering -- features common on cars half a century later.
MUL was the result of the joint venture created in February 1981 between
Japan's Suzuki Motor Company and the Indian Government when the latter
decided to produce small, economical cars for the masses.
The intention of the venture was to produce a 'people's car'. To get the project
off the ground MUL took over the assets of the erstwhile Maruti Ltd., which
was set up in 1971 and closed in 1978.It was on December 14, 1983 that MUL
launched the first Maruti vehicle - the Maruti 800. The first model was the
SS80, a 796cc hatchback car priced at Rs. 47,500.
Subsequently, in spite of price hikes, the car has remained within the reach of
the Indian middle class and has been a runaway success. Available in vibrant
colures when India's passenger car population comprised mainly Ambassadors
and Fiats in black and white, M800 gave Indians the first taste of global quality
and reliability.
In late1980s, Suzuki increased its equity stake in MUL from 26% to 40% and
further to 50% in 1992, converting Maruti into a non-government company.In
the years that followed, MUL consolidated its position with a line of Indian
classics, such as the eight-seat Omni, the rough-terrain Gypsy, and, in October
1990, a 3-box Maruti 1000. MUL took the lead in the green drive by launching
its CNG-run Omni and Maruti 800 in 1999.
MUL redefined the premium compact segment with the launch of the Zen in
October 1993. It was the company's first 'world car, selling across multiple
markets. A year later, the Zen had won several awards, including 'No. 1 car in
Europe' (Auto Week, 1994), 'No.1 import in Europe' (1997) and 'most fuel-
efficient car' (ADAC).In 1999, MUL launched Baleno and WagonR. Baleno
targeted the premium mid-segment while WagonR was positioned as a multi-
activity vehicle.In1999, to improve customer satisfaction, it even established a
chain of model workshops and soon after, set up customer call centers in the
metros.
In 2000, Maruti Suzuki introduced Alto - a premium small car targeting the
export market - and in October 2001, Versa, a multipurpose vehicle.In May
2002, Suzuki took management control of Maruti.
In April 2003, MUL rolled out its latest offering, the Grand Vitara XL-7, a
luxury SUV imported from Suzuki Motor Corporation. The Grand Vitara was a
concept that was radically different from the models that comprised the bulk of
MUL's sales.
Since 1980 with its product excellence, operational efficiency and customer
intimacy Maruti Suzuki has been the leader in Indian passenger car market.
1. To acquire and take over from GoI the right, title, and interest in relation to
the undertakings of Maruti Ltd. As Provided for in the appropriate enactment of
GoI together with the liabilities of GoI so far as they are Related to the
Undertakings of the Company.
Maruti Udyog Limited (MUL) was established in February 1981, though the
actual production commenced in 1983 with the Maruti 800, based on the Suzuki
Alto kei car which at the time was the only modern car available in India, its'
only competitors- the Hindustan Ambassador and Premier Padmini were both
around 25 years out of date at that point. Through 2004, Maruti has produced
over 5 Million vehicles. Maruti’s are sold in India and various several other
countries, depending upon export orders. Cars similar to Maruti’s (but not
manufactured by Maruti Udyog) are sold by Suzuki and manufactured in
Pakistan and other South Asian countries.
The company annually exports more than 50,000 cars and has an extremely
large domestic market in India selling over 730,000 cars annually. Maruti 800,
till 2004, was the India's largest selling compact car ever since it was launched
in 1983. More than a million units of this car have been sold worldwide so far.
Currently, Maruti Alto tops the sales charts.
Due to the large number of Maruti 800s sold in the Indian market, the term
"Maruti" is commonly used to refer to this compact car model. Till recently the
term "Maruti", in popular Indian culture, was associated to the Maruti 800
model.
Its manufacturing facilities are located at two facilities Gurgaon and Manesar
south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of
350,000 units per annum.
More than half the cars sold in India are Maruti cars. The company is a
subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of
Maruti. The rest is owned by the public and financial institutions. It is listed on
the Bombay Stock Exchange and National Stock Exchange in India.
During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were
exported. In all, over six million Maruti cars are on Indian roads since the first
car was rolled out on December 14, 1983.
Maruti Suzuki offers 12 models, Maruti 800, Omni, Alto, Versa, Gypsy, A Star,
Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift
dzire, A star and SX4 are manufactured in Manesar, Grand Vitara is imported
from Japan as a completely built unit (CBU), remaining all models are
manufactured in Maruti Suzuki's Gurgaon Plant.
Suzuki Motor Corporation, the parent company, is a global leader in mini and
compact cars for three decades. Suzuki’s technical superiority lies in its ability
to pack power and performance into a compact, lightweight engine that is clean
and fuel efficient.
The company vouches for customer satisfaction. For its sincere efforts it has
been rated (by customers) first in customer satisfaction among all car makers in
India for nine years in a row in annual survey by J D Power Asia Pacific.
Pressure started mounting on Indira and Sanjay Gandhi to share the details of
the progress on the Maruti Project. Since country's resources were made
available by mother to her son's pet project. A delegation of Indian technocrats
was assigned to hunt a collaborator for the project. Initial rounds of discussion
were held with the giants of the automobile industry in Japan including Toyota,
Nissan and Honda. Suzuki Motor Corporation was at that time a small player in
the four wheeler automobile sector and had major share in the two wheeler
segment. Suzuki's bid was considered negligible.
In the initial rounds of discussion the giants had their bosses present and in the
later rounds related to the technical discussions executives of these automobile
giants were present. Osamu Suzuki, Chairman and CEO of the company
ensured that he was present in all the rounds of discussion. Osamu in an article
writes that it subtly massaged their (Indian delegation) egos and also convinced
them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps
to ensure the government about its sincerity on the project. Suzuki in return
received a lot of help from the government in such matters as import clearances
for manufacturing equipment (against the wishes of the Indian machine tool
industry then and its own socialistic ideology), land purchase at government
prices for setting up the factory Gurgaon and reduced or removal of excise
tariffs. This helped Suzuki conscientiously nurse Maruti through its infancy to
become one of its flagship ventures.
Initially R.C.Bhargava was the managing director of the company since the
inception of the joint venture. Till today he is regarded as instrumental for the
success of Maruti Udyog. Joining in 1982 he held several key positions in the
company before heading the company as Managing Director. Currently he is on
the Board of Directors. After completing his five year tenure, Mr. Bhargava
later assumed the office of Part-Time Chairman. The Government nominated
Mr. S.S.L.N. Bhaskarudu as the Managing Director on August 27, 1997. Mr.
Bhaskarudu had joined Maruti in 1983 after spending 21 years in the Public
sector undertaking Bharat Heavy Electricals Limited as General Manager. Later
in 1987 he was promoted as Chief General Manager, 1998 as Director,
Productions and Projects, 1989 Director, Materials and in 1993 as Joint
Managing Director.
The Suzuki Motor Corporation didn't attend the Annual General Meeting of the
Board with the reason of it being called on a short notice. Later Suzuki Motor
Corporation went on record to state that Mr. Bhaskarudu was "incompetent"
and wanted someone else. However, the Ministry of Industries, Government of
India refuted the charges. Media stated from the Maruti sources that
Bhaskarudu was interested to indigenise most of components for the models
including gear boxes especially for Maruti 800. Suzuki also felt that
Bhaskarudu was a proxy for the Government and would not let it increase its
stake in the venture. If Maruti would have been able to indigenise gear boxes
then Maruti would have been able to manufacture all the models without the
technical assistance from Suzuki. Till today the issue of localization of gear
boxes is highlighted in the press.
The relation strained when Suzuki Motor Corporation moved to Delhi High
Court to bring a stay order against the appointment of Mr. Bhaskarudu. The
issue was resolved in an out-of-court settlement and both the parties agreed that
R S S L N Bhaskarudu would serve up to December 31, 1999, and from January
1, 2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited would
assume charges as the Managing Director.[10] Many politicians believed, and
had stated in parliament that the Suzuki Motor Corporation is unwilling to
localize manufacturing and reduce imports. This remains true, even today the
gear boxes are still imported from Japan and are assembled at the Gurgaon
facility.
INDUSTRIAL RELATIONS
For most of its history, Maruti Udyog had relatively few problems with its
labour force. Its emphasis of a Japanese work culture and the modern
manufacturing process, first instituted in Japan in the 1970s, was accepted by
the workforce of the company without any difficulty. But with the change in
management in 1997, when it became predominantly government controlled for
a while, and the conflict between the United Front Government and Suzuki may
have been the cause of unrest among employees. A major row broke out in
September 2000 when employees of Maruti Udyog Ltd (MUL) went on an
indefinite strike, demanding among other things, revision of the incentive
scheme offered and implementation of a pension scheme. Employees struck
work for six hours in October 2000, irked over the suspension of nine
employees, going on a six-hour tools-down strike at its Gurgaon plant,
demanding revision of the incentive-linked pay and threatened to fast to death if
the suspended employees were not reinstated. About this time, the NDA
government, following a disinvestments policy, proposed to sell part of its stake
in Maruti in a public offering. The Staff union opposed this sell-off plan on the
grounds that the company will lose a major business advantage of being
subsidised by the Government.
• MSIL has over 2800 service centers, Approximately ‘7’ times its nearest
competitor.
• MSIL’S used car showrooms alone, exceed the new car showrooms of
Hyundai & Tata Motors.
No. of Cities with Sales outlets 410 (243+167)
2. Maruti insurance
Launched in 2002 Maruti provides vehicle insurance to its customers with the
help of the National Insurance Company, Bajaj Allianz, New India Assurance
and Royal Sundaram. The service was set up the company with the inception of
two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti
Insurance Brokers Pvt. Limited
This service started as a benefit or value addition to customers and was able to
ramp up easily. By December 2005 they were able to sell more than two million
insurance policies since its inception.
Benefits of Maruti Insurance (USP)
All Maruti dealers and a select group of Maruti Authorized Service Stations
(MASSs) will provide the customer with near cash-less repairs in their claim
settlement. This means that the customer would not have to pay to the dealer for
the repair charges to the extent it is payable by Insurance Co. Customer will just
pay for the compulsory excess (fixed as per tariff according to the cubic
capacity (cc) of the car) and applicable depreciation, which varies depending on
the age of the vehicle and the type of the replaced parts. The rates at which the
depreciation is charged are mentioned on the face of the policy. Rest of the
amount will be settled directly between the dealer and the Insurance Company.
3. Maruti Finance
To promote its bottom line growth, Maruti launched Maruti Finance in January
2002. Prior to the start of this service Maruti had started two joint ventures
Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide
respectively to assist its client in securing loan. Maruti tied up with ABN Amro
Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank,
and Sundaram to start this venture including its strategic partners in car finance.
Again the company entered into a strategic partnership with SBI in March 2003
Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti
Finance. SBI-Maruti Finance is currently available in 166 cities across India.
"Maruti Finance marks the coming together of the biggest players in the car
finance business. They are the benchmarks in quality and efficiency. Combined
with Maruti volumes and networked dealerships, this will enable Maruti
Finance to offer superior service and competitive rates in the marketplace".
— Jagdish Khattar, Managing director of Maruti Udyog Limited in a press
conference announcing the launch of Maruti Finance on January 7, 2002
Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance
India and Maruti Udyog Limited its primary business stated by the company is
"hire-purchase financing of Maruti vehicles". Citi Finance India Limited is a
wholly owned subsidiary of Citibank Overseas Investment Corporation,
Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A.
Citi Finance India Limited holds 74% of the stake and Maruti Udyog holds the
remaining 26%. GE Capital, HDFC and Maruti Udyog Limited came together
in 1995 to form Maruti Countrywide.Maruti claims that its finance program
offers most competitive interest rates to its customers, which are lower by
0.25% to 0.5% from the market rates.
Benefits of MGA
CUSTOMERS
• MSIL assurance
• All types of accessories are available under the same roof
• Accessories tailor made for the vehicles
• Skilled manpower to fit the accessories
• Better resale value
"We are very concerned about mounting 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 Maruti should first do something in this
regard and hence this initiative of Maruti Driving Schools."
— Jagdish Khattar, at the launch ceremony of Maruti Driving School,
Bangalore
N2N is the short form of End to End Fleet Management and provides lease and
fleet management solution to corporates. Their impressive lists of clients who
have signed up of this service include Gas Authority of India Ltd, DuPont,
Reckitt Benckiser, Sona Steering, Doordarshan, Singer India, National Stock
Exchange and Transworld. This fleet management service includes end-to-end
solutions across the vehicle's life, which includes Leasing, Maintenance,
Convenience services and Remarketing.
Fleet Sales Has gained all-the-more importance in recent times since large
Corporates, Such as in the IT sector have started providing their employees with
Company Cars and Cabs.
1) Fleet Acquisition:
• Fleet Policy for Maruti-action
Recommending a fleet composition suiting company’s budget, range of cars
& requirements.
• Fleet Financing
Attractive Financial & Operating leasing schemes. Vehicles are delivered at
door-step after registration, Insurance, fitment of MGA chosen and through
inspection.
2) Fleet Operation
Vehicle Servicing
Emergency Assistance
N2N offers on-the-spot emergency repairs, towing service, pick-up & drop
service for stranded customers in case of accident & vehicle breakdown
supported by 24 hrs call centre.
4) Insurance Management
Complete accident management services from attending the vehicle at site to
processing from Insurance Company.
5) Fleet Resale
Assistance in selling existing fleet in transparent & hassle free manner through
Maruti True Value.
MANUFACTURING PROCESS
Press Shop: Press shop has five transfer presses and two blanking lines. In the
press shop, steel coils are cut to the required size and panels are prepared by
pressing them between various die sets such as doors, roofs and bonnet. An
anti-rust coat is applied at this stage.
Weld Shop: There are three welding shops with 122 six-axis robots and 25 in-
house manufactured two-to-four axis robots. In this shop, various press metal
components manufactured in the previous stage are spot-welded together to
form the body shell. Various parts such as the floor panel, side panel, doors and
bonnet are sub assembled in this shop. Subsequently, the assembled parts
undergo final welding. The welded body is sent to the paint shop through a
conveyor.
Paint Shop: There are three paint shops, within one of which the final outer
body is fully painted by robots. In the paint shop, the body undergoes various
pre-treatment and electro deposition painting processes to provide a high
corrosion resistance to the body. The car body is given an intermediate or
primer coat before applying the storing 32 topcoat paint. The intermediate and
the final coat are applied by using automatic electrostatic spray-painting
machines (micro bells) and robots, followed by a baking process.
Assembly Shop: Maruti has highly flexible assembly lines, which can
simultaneously handle a large number of variants as well as adapt to sequence
changes. The painted bodies proceed for final assembly in three stages. The first
stage is the trim line wherein various components such as roof head lining,
windshield glass and interior trim components are fitted. Thereafter, the car is
transferred to an overhead conveyor, the chassis line, wherein components such
as the engine, gearbox and front and rear axles are assembled on the underbody.
The vehicle is then lowered to the final line on its own wheels and here
components and parts such as seats, the steering wheel and the battery are fitted.
The completely assembled vehicle finally rolls out of the assembly lines to the
final inspection stages.
Machine and engine shops: Assembling and testing of engines takes place at
engine shops and carry out precision machining of engine components in our
machine shops.
SELLING PROCESS
POST SALES FOLLOW-UP
ATTEMPTED CLOSING
PRODUCT PRESENTATION
NEED ASSESMENT
OPENING
PREPARATION
1. Preparation:
High 5 of each product should be on your finger tips
2. Greeting:
Greet people with smile on your face
3. Identify needs:
Which vehicle are you using presently?
What will be the purpose of your new car & who will use it?
What are your expectations (like comfort, features, performance, mileage,
looks,etc)from this car?
Highlight the High 5 and talk about the benefits with passion
6. Test drive:
Offer test drive to every customer
Use document check list & follow up regularly for loan disbursement
8. Delivery:
Be alert and active with the customers throughout the deal
The Company produced 777,017 cars during the year, and achieved a
production of 1 million in the 16 months ending March 2008. This translates
into the Company rolling out a car every 22 seconds during the two-shift
operation. The entire effort of Japanese best practices and Indian innovation is
to ensure that manufacturing at this scale is achieved with high quality,
productivity, safety and optimal cost.
A new software based system, Multi- Level Production System (MLPS), was
introduced to build flexibility in operations. In-house automation continued to
be a key driver of productivity. As the Company expanded manpower in line
with new capacity, the technical training centre, started last year, helped
technicians and new joiners shorten their learning curve.
At present, the plant rolls out World Strategic Models such as Swift (diesel &
petrol), SX4 and DZire (diesel & petrol). These models have seen buoyant
market demand.
In addition, the fifth World Strategic Model derived from Concept A-Star
would also roll out from the Manesar facility later this year. The next fiscal year
is also critical as the Company targets to export 200,000 units by 2010.
In view of these developments, the plant's capacity was enhanced from an initial
100,000 units per annum to 170,000 units per annum during the year 2007-08.
The Company is committed to achieve a capacity of 300,000 units per annum
by October this year.
CAPABILITY BUILDING
This year, the Company actively deployed the latest tools like Digital
Engineering in the areas of jigs and die design; manufacturing feasibility
simulations, automatic line balancing and validating factories and material flow
in a virtual environment.
PROCUREMENT
About three fourth of the car, by value, is outsourced. Any improvement in the
car in terms of technology and design, quality or cost has to essentially include
the Company's vendors and their support.
In the year 2007-08, the Company signed two joint venture agreements with
global component manufacturers for cost reduction through localisation of
components for Maruti Suzuki cars. The first was with Magneti Marelli, aimed
at the production of electronic control units (ECU) for diesel engines and the
second with Futaba Industrial Company, Japan for production of exhaust
system parts.
The Company is setting up a Suppliers Park in Manesar, close to its car plant on
an area of 100 acres for Just-In-Time supplies. Both the above joint ventures are
located in this Suppliers Park.
An informal Suppliers' Club has been formed by the Company's vendors and it
gives a good forum for building personal relationships, understanding key
issues and exchanging best practices at the CEO level. The Company organized
a visit of the members to Japan for some plant visits and the Tokyo Motor
Show.
FUTURE AGENDA
In the early eighties, the Company made significant efforts in trying to develop
a component industry from ground zero. Over the next two decades, about 110
foreign technology collaborations were facilitated and Maruti Suzuki engineers
worked closely with the vendors' engineers to enable to deliver cars which are
both high quality and cost competitive. Now, the relationship has matured and
most direct vendors or Tier 1 vendors are competent enough to work on their
improvement, but there is major scope for modernization of some sections of
Tier 2 vendors. The Company has identified this as an opportunity for further
quality, up gradation and cost reduction.The second focus area for component
cost reduction is raw material yield improvement across all manufacturing
processes, like sheet metal, castings, forgings and machining. Every component
is studied in detail and innovative ideas are tried, to reduce the input material
weight for the same component output. The total cost of raw material as a
percentage of net sales ranges from 15% to 20%.
BUSINESS PERFORMANCE
The Company held on to its share in the entire passenger vehicle market at
46% and was able to increase it marginally from 51% to 51.4% in
passenger cars. The Company's share in the A2 segment (compact cars)
remained above 58%. In the A3 segment, the Company's share increased
to 21.9 percent, from 15.1 percent in the previous year.
DOMESTIC MARKET
The Company launched three new models during the year, including premium
sedan SX4, a luxury Sports Utility Vehicle Grand Vitara and an entry level
sedan Swift DZire (in both petrol and diesel versions). With this, the Company
has launched seven models in three years. During the year, the Company
discontinued production of Esteem, its entry sedan launched in 1994, which
enjoyed a huge customer following for its combination of unmatched
performance and low cost of ownership.
Both the SX4 and Swift DZire have been received well from the start, and have
contributed to the Company regaining the leadership position in the A3 segment
(sedans). In turn, this has catalysed efforts to expand the Company's image from
being a leader in small cars to a manufacturer offering the full range of models
to customers.
The Grand Vitara, imported in small numbers as a Completely Built Unit from
Japan, further showcases the Company's ability to offer a complete portfolio of
products.
The year witnessed two new model launches by competitors in the A2 segment,
which accounts for the bulk of the Company's business. There was a new
competitor model in the A3 segment as well. Besides, there were several new
variants by competitors. While the new offerings have taken some share away
from the existing ones, they have helped expand the market overall.
• Passenger Cars
• Utility Vehicles (UV)
• Multi Purpose Vehicles (MPV)
The share of each industry segment and share of the Company in each segment
are shown in the chart above. The Company held on to its share in the entire
passenger vehicle market at 46% and was able to increase it marginally from
51% to 51.4% in passenger cars. The Company's share in the A2 segment
(compact cars) remained above 58%. In the A3 segment, the Company's share
increased to 21.9 percent, from 15.1 percent in the previous year.
The Company's success in the market can be attributed, broadly, to the new
product design philosophy emerging from Suzuki Motor Corporation, a
disciplined approach to cost that enables more features at less price, and market
initiatives.
The new design philosophy at Suzuki Motor Corporation, witnessed first in the
Swift, is bold, aggressive and distinctly European. This philosophy is reflected
in the Group's other World Strategic Models, such as SX4, Grand Vitara, A-Star
and Splash. The success of the Company's new models is an indication that this
new design philosophy has been well accepted by Indian customers.
In addition, the Company's new models have consistently offered more features
than comparable competitor offerings, and are very competitively priced. This
has been made possible by a disciplined target cost approach towards new
models, followed within the Company and at our suppliers.
In recent years, the Company has also undertaken a series of market initiatives,
notably the expansion of the sales network, offering the entire range of car-
related services in a convenient and transparent manner and implementing
standards to improve customer service.
The success of the Company's new models, such as Swift and SX4, has
strengthened the profitability of dealerships. In addition, car-related products
and services like insurance, finance, extended warranty, spares and accessories
have further boosted the bottom-line of the network. Further, with a car
population of nearly 6.5 million Maruti Suzuki cars, service maintenance and
repairs make a healthy contribution to profitability of dealerships. These factors
are encouraging channel partners to reinvest in sales outlets, workshops and
increasing their sales force.
The Company has in place robust systems to aid dealers in monitoring and
improving performance. These include Balanced Score Card, Customer
Satisfaction Surveys and Dealer Profitability models. With the rollout of the
Dealer Management System, an IT-based national network, dealer's
management can access a wealth of data to enable them to monitor diverse
facets of their operations including customer satisfaction indices.
Exports
Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its
major focus on exports and it does not operate in the domestic Indian market.
The first commercial consignment of 480 cars was sent to Hungary. By sending
a consignment of 571 cars to the same country Maruti crossed the benchmark of
300,000 cars. Since its inception export was one of the aspects government was
keen to encourage. Every political party expected Maruti to earn foreign
currency.
Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Sri Lanka,
Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets
served by Maruti Exports Maruti Suzuki have helped India emerge as the fourth
largest exporter of automobiles in Asia. Shown here is Maruti Gypsy in Malta.
The Company sold 53,024 units during 2007-08. This is the highest ever export
volume in a year for the Company, and marked a growth of 35 percent over the
previous year. The Company's contribution towards total exports by the
industry increased to 25% from 20% last year. Cumulative exports made by the
Company crossed the milestone of 500,000 vehicles. Using A-Star, a Euro V
compliant model in the “A” segment, the Company plans to re-launch itself in
the European markets which it had left two years earlier for want of a suitable
model. The Company is targeting a yearly volume of 100,000 in Europe and
other parts of the world. This model is likely to be launched overseas in the last
quarter of 2008-09. The Company has decided that while focusing on volume
growth, it will enhance efforts to improve profitability from export operations.
Exports will enable the Company to be at the frontier of technology, quality and
manufacturing excellence.
SPARE PARTS AND ACCESSORIES
The Company draws competitive advantage from the fact that its car parts are
priced competitively and are affordable. In recent years, the focus has been to
improve access and availability by setting up a national network of spare parts
distributors. In the Accessories business, enterprising dealers have used Maruti
Genuine Accessories to create customized versions of the Company's existing
models. In many cases, these special edition cars have enhanced sales,
improved margins and enable the Company to address younger customer
profiles. Although at a nascent stage, these dealer initiatives signify the
potential offered by this business.
During the year, the Company achieved a new milestone: a gross turnover of Rs
10 billion in the spares and accessories business. This marked a growth of 19
percent over the previous year. The business is supported by a robust back end
operation, which employs technology and competence in logistics to deliver on
time to customers across the country.
CUSTOMER DELIGHT
In recent years, there are clear trends that customer expectations from a
car have evolved considerably. Car customers now seek contemporary
styling, international quality and latest features that enhance their safety
and convenience, while expecting performance and fuel efficiency, like
their parents did before them.
During the year, the Company took forward several initiatives to retain its top
position in the area of customer satisfaction. These initiatives ranged from
product design and quality to network expansion, and included new service
programmes to meet latent needs of customers.
In recent years, there are clear trends that customer expectations from a car
have evolved considerably. Car customers now seek contemporary styling,
international quality and latest features that enhance their safety and
convenience, while expecting performance and fuel efficiency, like their parents
did before them.
These changing preferences are reflected in the sales data for existing segments
in the car market: models and variants that promise only economy and low
acquisition cost are increasingly losing out to models and variants that are rich
in features, style and safety. This trend holds true across segments, including
among entry level cars.
In the field, the products were supported by rapidly expanding networks. The
Company has diverse networks for new cars, spares, service, pre-owned cars
and so on, and all of them were in expansion mode last year to enable the
Company to get closer to the customer.
The Company ranked first in the Customer Satisfaction for the 8 successive
year in the annual survey by J D Power Asia Pacific. It was the only player
above industry average, despite the much higher number of customers it has to
serve.
The Company dealers and authorized service stations serviced more than 10
million cars in the year.
Another innovation was Maruti Mobile Support - a special version of Versa that
has been suitably modified to function as a service station. It is able to cover
areas where a service station is not viable or where customers want service at
their doorstep. At present, 120 Maruti Mobile Service vans are plying in more
than 80 cities.
The Company used technology to meet customer needs and even delight them.
Following feedback that the Company's cars were more prone to theft owing to
their resale value, the Company worked on an anti-theft immobilizer or i-CATS
system for all its new cars.
The Company has also ensured that the entire fleet of trucks, carrying new cars
from the factory to dealerships, is GPRS-enabled. This allows dealerships to
give customers a more accurate picture of when their car is likely to be
delivered, and to some extent addresses a major source of dissatisfaction among
customers.
The Company's efforts to satisfy all car-related needs -- from learning to drive a
car at Maruti Driving Schools to car insurance, extended warranty and
eventually exchanging the existing car for a new one --- under one roof at
dealerships also enhance customer satisfaction.
LITERATURE
Customer Satisfaction Index
One of the measurements of the performance of the Quality Management
System, the organizations shall monitor information relating to customer
perception as to whether the organization has met customer requirements. The
methods for obtaining and using this information shall be determined"
• Product Quality
• Product Packaging
• Keeping delivery commitments
• Price
• Responsiveness and ability to resolve complaints
• Overall communication, accessibility and attitude
What are the Tools?
Depending upon the customer base and available resources, we can choose a
method that is most effective in measuring the customers' perceptions. The
purpose of the exercise is to identify priorities for improvement through a
feedback mechanism.
Formal survey has emerged as by far the best method of periodically assessing
the customer satisfaction. The surveys are not marketing tools but an
information-gaining tool. Enough homework needs to be done before
embarking on the actual survey. This includes:
Hypothesis of project
The hypotheses are a proposition that states checking for definite, exact
relationship between two variables. That is, it states that the population’s
correlation between two variables is equal to zero, that the difference in the
means of two groups in the population is equal to zero.
The hypothesis has been framed keeping 95% to be the confidence level.
The Null and the Alternate Hypothesis of the project has been made as under:
Null Hypothesis:
H0: there is no association of the company performance (using the 7 factors) and
the customer satisfaction
Alternate Hypothesis:
35 respondents have been taken and 7 factors have been used to judge the
company performance.
RESPONSIVENESS
PROFESSIONALISM
TECHNICAL SUPPORT
PRODUCT QUALITY
DELIVERY
COMPETITIVENESS
QUALITY
OVERALL
The response of the 100 questionnaires related to the above factors is run in MS
EXCEL under t-test and the following p-values of the respective factors are as
follows:
FACTORS P-VALUE
A .000
B .000
C .000
D .000
E .000
F .000
G .000
H .000
Here, the p-values are less than .05, therefore null hypothesis
is rejected. THUS, THERE IS SOME RELATION BETWEEN
COMPANY PERFORMANCE and THE CUSTOMER SATISFACTION.
CONCLUSION
From the above analysis and interpretations, it can be concluded that:
BIBLIOGRAPHY
The entire literature portion has been taken wikepedia.com.
As it was asked to keep the names of the client confidential that’s why the list is
not attached here.
APPENDIX
The questionnaire is as follows:
PROFESSIONALISM
TECHNICAL SUPPORT
PRODUCT QUALITY
DELIVERY
COMPETITIVENESS
QUALITY
OVERALL