SUPPLY

CHAIN
MANAGEMEN
T
Name:
Rahul Singhal 36
Shashank Garg 43
Shitanshu Garg 44
Shorya Gupta 45
Tushar Bansal 49
Vaibhav Agarwal 52

INTRODUCTION
Founded in 1981, headquartered in Delhi.
Originally owned by Government of India.
Entered in JV with Suzuki Motor Company.
Most trusted and accepted
Need of effective supply chain

Supply Chain Ecosystem

Location

Plants located at Gurgaon Haryana at Manesar Industrial Town.

Company has 246 local Tire-1 suppliers and 20 global ones
Capacity of three lakh units in 2013.
1265 dealers across India
16 warehouses
Service network of 3013 service stations.

Typical Supply Chain

Integrated Supply chain

Upstream
suppliers

Suppliers

Your
Company

Distribution
channels

Customers

Information flow sharing

VENDOR SELECTION PROCEDURE

Based on the Vendor Performance ,Supply Chain/ Engineering
selects the Vendor for New Part development/ Second source
A team of Supply Chain/ Engineering then visits & performs an
assessment
As per Marutis laid down criteria produced below

After MD approval, SC issues Letter of Intent to Vendor.

CRITERIA FOR VENDOR SELECTION

1.
2.
3.
4.
5.
6.
7.
8.

Vendor's Past Problem on Quality, Cost & Delivery.

Vendor technological Capability in Designing, Manufacturing, Testing
Management of company wrt to professionalism, Clarity in Org structure.
Financial health
Tool making capability
Quality system in the Org
Proximity to enable JIT deliveries
Loyalty

Vendor Management
Sources 70-80% of its component requirements form locally
developed vendors.
Primary raw material- Steel coils and paint.
Yield Improvement Program.
The company has 246 local suppliers and 20 global ones which
function in a seamless manner.
Automated Material Receipt System and Wi-Fi enabled handheld
devices.
Over 76 per cent of the company's 246 suppliers are located within
100 kilometers of radius, who supply 86 per cent of the components
by value to Maruti.
Suppliers compete against each other in what has been called
'Quality Circle Competition.
An initiative called 'Shikhar' was introduced along with the suppliers'
quality team. They have a moving monthly average of 500 defective
parts in a million

Best Practices - Manufacturing Quality

5S

Kaiz
en

Lean

3G

Kaizen Good Change

What is & Why 5S ?

A place for everything necessary and everything necessary
in its place, clean and ready for use

5S Promotes:
Well laid out and
organized work areas
Good process flow
Safety
Standard Work

3G
3G
3Gmeans
meansIn
Incase
caseofofan
anabnormality,
abnormality,all
allthe
the
concerned
concernedmembers
membersshould
shouldactually
actuallygo
gototothe
the
place
placewhere
wherethe
theproblem
problemhas
hasoccurred,
occurred,see
seethe
the
actual
actualthing
thing&&take
takerealistic
realisticaction
actiontotosolve
solvethe
the
problem
problem
GENCHI Actual Place
GENCHI Actual Place
GENBUTSU Actual Thing
GENBUTSU Actual Thing
GENJITSU Actually
GENJITSU Actually

What is Lean?
Leanisisboth:
both:
Lean
businessoperating
operatingphilosophy
philosophy
AAbusiness
setofofproven
proventools
toolsand
andsolutions
solutions
AAset
Thataccelerates
acceleratesspeed
speed
That
andreduces
reducesthe
thecost
costfrom
fromall
allbusiness
business
and
processesby
byremoving
removingwaste
waste
processes

Leanfocuses
focuseson
onthe
thecustomer
customer
Lean
Valueisisdefined
definedby
bythe
thecustomer,
customer,and
andall
all
Value
activityisisaligned
alignedtotoprovide
providemaximum
maximum
activity
valuetotothe
thecustomer
customer
value
14

Production Lead Times (days)

Capacity Utilization
60
50

Traditional
Manufacturing

40
30
20

JIT
Manufacturing

10
% Capacity
10 20 30 40 50 60 70 80 90 100 Utilization

Milk Run System

Resource Optimization :
Initiative of Koiltainer

Forward Journey -> Export Cars

Return Journey -> Steel Coils

Forward Journey: Exports Cars from

stockyard to Port

Return Journey: Steel Coils from port to

Stockyard

Multi Purpose Container - KOILTAINER

5 Cars

3 Coils

Benefits - Optimal Rake Utilization, Reduction in Truck Load

KEY FACTS OF NEW SCM (it Operations)

The entire process is IT driven and any exception during

production, planning, and factory dispatch can be traced and
corrective action made with no delay.

The new supply chain has helped it achieve substantial cost

reduction, from production to distribution.

Prime driver with the supply chain project was to increase

customer base in the current economic downturn.

THANK YOU