MARUTI UDYOG: SUPPLY

SCHEDULING AND SYSTEM

IMPROVEMENT

By Group 1(Part time 2015-18)

Abhay Kumar
Avik Dutta
Bhanu singh
Divya Bhandari
Harsh Agrawal
Ramesh chandra
 Largest Manufacturer of cars in India.
Started operation in 1982 in collaboration with Suzuki
Motor Corp Japan.
Originally, 74% of the company was owned by the
Indian government, and 26% by Suzuki of Japan.
As of May 2007, the government of India sold its complete
share to Indian financial institutions and no longer has any
stake in Maruti Udyog.
In 2007 Maruti Udyog was renamed Maruti Suzuki India
Limited.
Manufacturing Unit in Gurgaon and Manesar.

As of January 2016, it had a market share of 47% of the

Indian passenger car market in India.
The Need of SCM Initiatives.
In 2003 Maruti ratio of components to raw material was 69%.
Maruti Objective of cost leadership and volume of scale depends on its
vendor management.
Although Maruti has worked hard in development of its vendors base
within periphery of 100km.Equity shares in 14 companies having supply of
30 % still there was ample of gaps in terms scale of defects , quality.
Maruti was following monthly scheduling system and supply from
vendors were not in synergy resulting in :
Piling of stocks.
Loss of market of high Demand.
Extra Manpower for inventory management/critical items.
Market changing from supplier driven to customer driven.
INITIATIVES OF MARUTI
Advanced Scheduling system based on One piece flow
concept which later in advance stage became DI
system.
Issue to be resolved
Scheduling frequency.
Processing Schedules. DI PDCA Nagara
Date specific schedules.
Location wise schedules
No ambiguity between suppliers.
Inventory control.

Lacuna of DI system.
Work well in ideal condition.
In condition of production behind
schedule inventory piled up.
INITIATIVES OF MARUTI
Implementation of Nagare System
Area allocation, Fixed no of trolley with card
allocation. Visual control.
Limitation of Nagare system

Nagare was tedious process with re calculation

of production as per cards availability and lots of

manual intervention.
Cards sometime left or lost in Transit.

FIFO not strictly followed.

With same assembly for different product variant

non adherence to consistency by suppliers led to

stock outs.
INITIATIVES OF MARUTI
After PDCA Maruti implemented e-Nagare system.
Benefits of e- Nagre System
System triggered dispatch schedule to the
suppliers in the form of electronic message.
Saving over inventory cost.

Reduced Manpower.

Reduced Line outage.

Space saving.

Reduced manual intervention and FIFO being

followed.
Huge benefit to suppliers.
CONCLUSION
Lean supply chain and logistics management are critical
success factors and just-in-time (JIT) in supply chain
and logistics are powerful strategies.
e-Nagare has increased clarity on an hourly basis

resulting in better capacity utilization at the vendors

end
On the inventory front, they assist the dealers in

inventory management by reducing the inventories,

which means lesser working capital financing cost for
the dealers.
Maruti focuses on two areas: inventory and delivery to

dealer, as reducing working capital is very important

because it reduces the dealers costs, for which proper
and timely delivery is essential
CONCLUSION

E-
DI Nagara TVC
Nagara