ABV Indian Institute of Information Technology and Management, Gwalior
MIS PROJECT REPORT (MIS Employed in Maruti Suzuki India Ltd.)
Submitted to: Submitted by: Dr. Vinay Singh Pooja Karmakar (2016MBA-20) Sh rahi Singh Karanwal
1 | Page
(2016MBA-28)
Acknowledgement We are thankful to the prestigious campus of ABV IIITM Gwalior for providing us the esteemed platform for enhancing our knowledge and skills of management discipline. We are also thankful to our mentor Dr. Vinay Singh for his time to time guidance for the improvement of project work. This unique way of making the MIS concepts seems really interesting and without his guidance project would have been gone off the track. We hope the project work is up to the expectations. Last but not the least, we are thankful to our parents and friends for their cooperation and also to our group members for working as a very cooperative team and putting in the best efforts to make the project successful.
2 | Page
INTRODUCTION................................................................................................... 5 Profile.................................................................................................................. 5 Industrial relations............................................................................................... 10 INFORMATION SYSTEM USED IN MARUTI SUZUKI...................................................12 ORACLE................................................................................................................ 13 SALE PROCESS OF MARUTI SUZUKI........................................................................19 CUSTOMER INTERACTION SYSTEM (C.I.S.)..............................................................19 DEALER MANAGEMENT SYSTEM (D.M.S.)...............................................................21 PROCESS FLOW..................................................................................................... 21 DMS (DATA MANAGEMENT SOFTWARE)..................................................................24 The Maruti System Architecture..........................................................................29 BACKGROUND...................................................................................................... 30
Design Goals............................................................................................... 30
Design Approach and Principles.......................................................................31
Customer Relationship Management:............................................................................. 34 Maruti and CRM....................................................................................................... 34 Key Initiatives................................................................................................... 34 Setting up "Express Service Bays" & "2 - Technician Bays"...........................................34 Service at Door Step through Maruti Mobile Support...................................................35 Maruti Auto Card................................................................................................ 35 Maruti Call Center.............................................................................................. 35 Maruti on Road Services....................................................................................... 35 N2N................................................................................................................ 36 Market Research Department................................................................................. 36 Types of CRM.................................................................................................... 36 Operational CRM............................................................................................... 36 Analytical customer relationship management................................................36
3 | Page
Collaborative CRM............................................................................................ 37 Other advantage: which help in CRM............................................................................. 37 A Buying Experience like No Other...................................................................37 Quality Service across 1036 Cities...................................................................37 One Stop Shop.................................................................................................. 38 The Low Cost Maintenance Advantage.............................................................38 SUPPLY CHAIN MANAGEMENT:.............................................................................. 39 COMPUTER INTEGRATED MANUFACTURING(CIM):..................................................40 Model of an Executive Support System...........................................................................41 ESS is used for decision making functions at the highest level...............................................42 RECOMMENDATIONS:............................................................................................ 43 CONCLUSION....................................................................................................... 44
4 | Page
INTRODUCTION
ज क इइंतडियमा तलितमटट डि) a partial subsidiary of Maruti Suzuki India Limited (Hindi: ममारुतत ससजक Suzuki Motor Corporation of Japan, is India's largest passenger car company, accounting for over 45% of the domestic car market. The company offers a complete range of cars from entry level Maruti 800 and Alto, to stylish hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle Grand Vitara. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog Limited was renamed Maruti Suzuki India Limited. The company's headquarters are located in Delhi.
Profile
Maruti Suzuki is India's number one leading automobile manufacturer and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The BJP-led government held an initial public offering of 25% of the company in June 2003. As of 10 May 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog.
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 5 | Page
Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation 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 Suzuki Alto tops the sales charts and Maruti Suzuki Swift is the largest selling in A2 segment. 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 ("Maruti" is another name of the Hindu god, Hanuman). Maruti Suzuki has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzuki’s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by 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 Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800, Alto, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, 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. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific.
6 | Page
Partner for the joint venture Sanjay Gandhi owned the Maruti Technical Services Limited, which ran into trouble and was liquidated. After the death of Sanjay Gandhi, the Indira Gandhi government assigned a delegation of Indian technocrats to hunt for 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. While the major companies were personally represented in the initial rounds of discussion, 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's) egos and also convinced them about the sincerity of Suzuki's bid. 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 ensured that Suzuki conscientiously nursed Maruti Suzuki through its infancy to become one of its flagship ventures.
Joint venture related issues
Maruti Suzuki's A-Star vehicle during its unveiling in Pragati Maidan, Delhi. A-Star, Suzuki's fifth global car model, was designed and is made only in India. Besides being Suzuki's largest subsidiary in terms of car sales, Maruti Suzuki is also Suzuki's leading research and development arm outside Japan Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint 7 | Page
venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987 and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have tenure of five years. 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 Suzuki. 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 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki 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, 1988 as Director, Productions and Projects, 1989 Director, Materials and in 1993 as Joint Managing Director. 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 Suzuki 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 Suzuki would have been able to indigenise gear boxes then Maruti Suzuki 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-ofcourt settlement and both the parties agreed that R S S L N Bhaskarudu would serve up to 31 December 1999, and from 1 January 2000, Jagdish Khattar, Executive Director of Maruti Udyog Limited would assume charges as the Managing Director. 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.
8 | Page
Industrial relations For most of its history, Maruti Udyog Limited 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 Suzuki 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. The standoff with the management continued to December with a proposal by the management to end the two-month long agitation rejected with a demand for reinstatement of 92 dismissed workers, with four MUL employees going on a fast-unto-death. In December the company's shareholders met in New Delhi in an AGM that lasted 30 minutes. At the same time around 1500 plant workers from the MUL's Gurgaon facility were agitating outside the company's corporate office demanding commencement of production linked incentives, a better pension scheme and other benefits. The management has refused to pass on the benefits citing increased competition and lower margins.
9 | Page
INFORMATION SYSTEM USED IN MARUTI SUZUKI
MANAGEMENT INFORMATION SYSTEM (MIS):
It is the integration & Streamlining of business processes involving Process adherence, Structuring, storage & retrieval of data. This involves Instant generation of Business analysis report control and monitoring of Man and machine, Support operations and decision MAKING.
10 | P a g e
11 | P a g e
rHyOpioCnEf-mhFgR5.1dSPcvutl&eas
ORACLE
Oracle Full Stack:
“The open interfaces of Oracle E-Business Suite offered the best integration with our legacy systems. Standardizing on Oracle technology and applications would also lower support costs and ensure easy upgrades in the future.”
Rajesh Uppal, Chief General Manager, Information Technology, Maruti Suzuki India Limited
Maruti Suzuki India Limited has led India’s car market for more than a quarter of a century. First established in 1981, the company is now a fully-fledged subsidiary of the Suzuki Motor Corporation. Its principal activities include the manufacture and sale of motor vehicles and spare parts via a 300-strong dealer network scattered across India. 12 | P a g e
The year 2002 saw Maruti add finance, leasing, insurance, and pre-owned car businesses to its portfolio, increasing the scale of its operations and prompting a review of its processes and systems. Oracle Consulting was engaged to install a number of Oracle E-Business Suite modules and integrate them with Maruti existing systems. The eight-month project involved managing up to 50 people, including Maruti staff, Oracle consultants, and employees of third-party organizations. Oracle also assisted Maruti with change management, a critical part of the process to ensure quick user acceptance. By standardizing on a single Oracle platform, the company achieved better control of its finance, procurement, and human resources functions. It also gained a more manageable and scalable platform to support its rapidly expanding business.
The Need to Strengthen Management Control Prior to employing Oracle, Maruti used a number of home-grown systems to manage its various lines of business. Many of these disparate systems could not talk to each other, requiring staff.
Why Oracle? Maruti has a successful history of Oracle implementations, beginning with the deployment of Oracle Database and Oracle Real Application Clusters as a stable foundation for its nationwide dealer management system. The dealer management system itself was developed using Oracle Fusion Middleware products. When it came to selecting a solution for the ERP system, Maruti again turned to Oracle. “We evaluated several packages but found that the open interfaces of Oracle E-Business Suite offered the best integration with our legacy systems,” said Uppal. “Standardizing on Oracle technology and applications would also lower support costs and ensure easy upgrades in the future.” Maruti had previously used external parties to develop and deploy its Oracle solutions. This time, the company decided to work directly with the vendor to deploy the ERP system. “We found that many of the systems integrators did not have sufficient knowledge of Oracle E-Business Suite to guarantee a smooth deployment,” said Uppal. “By engaging Oracle Consulting, we would have easy access to technicians with an in-depth understanding of the product and consultants with extensive project management experience and business understanding. “Oracle Consulting were exemplary in their conduct throughout the project.”
13 | P a g e
Implementation Process In addition to designing the system and providing advice on business process reengineering, Oracle Consulting was responsible for managing the different parties involved in the implementation. These included Oracle Certified Advantage Partner IBM, who completed part of the functional work (writing custom extensions code and installing Oracle Financials and Oracle Procurement). Oracle Consulting deployed the Oracle Human Resources modules. Oracle Consulting provided three months of post-implementation support, and also assisted Maruti for one month in the lead-up to the company’s year-end closing.
Key Benefits
Strengthened management by consolidating on a single financial platform Gained deep insight into financial performance by using Hyperion to analyze budgets and consolidated accounts Lowered procurement costs by streamlining purchasing process Provided HR staff with greater control over recruitment, payroll, compensation management, leave management, competency assessments, and staff development Ensured a smooth rollout by engaging Oracle Consulting to supervise the design and deployment of the solution, and manage the implementation team Achieved seamless integration with legacy systems, ensuring senior managers have visibility into business performance Promoted user acceptance by developing extensive training programs to help staff transition to the new system
Maruti serves within India. To support this growth and improve efficiency, the company decided to revamp its information technology systems to provide end-to-end visibility into the organization. To minimize the impact of the system change on its business, Maruti decided on a phased migration to Oracle E-Business Suite. As a first step, the company decided to replace its financial, purchasing, and human resources systems with Oracle Financials, Oracle Procurement, and a range of Oracle Human Resources applications. Oracle Consulting was selected to supervise the implementation, including determining Maruti’s requirements and developing a project plan, designing the system, deploying the software, managing the various parties involved, and providing post-implementation support.
14 | P a g e
Standardization Improves Financial Insight The problem with using multiple systems to manage finances was the lack of control over processes and information quality. Each office followed different workflows, which often meant one division lagged behind another in delivering information. Differing data formats required tedious consolidation, preventing real-time access to critical statistics. With Oracle Financials, Maruti was able to standardize on a single financial management platform. According to Uppal, the company achieved tight control over accounts payable and accounts receivable, and gained a comprehensive general ledger that assists in the management of all financial information.
Drilling Down to Details with Hyperion Maruti has used Hyperion business performance management software for the past two years to analyze budgets, consolidate accounts across nine subsidiaries, and conduct financial reporting in compliance with generally accepted accounting principles (GAAP) in India. The system is integrated with Oracle Financials and is currently used by around 10 budgeting staff in Maruti’s finance department. “We use Hyperion to complete scenario- and project-based analytics,” said Uppal. “The system supports all types of reporting and analysis, giving staff and senior management deeper insight into our performance as and when they need it. It alerts us to possible problems before they impact our operations and has helped improve the accuracy of our forecasts. We are able to respond faster to changing market conditions, which boosts our competitiveness.” Oracle’s acquisition of Hyperion in April 2007 is good news for Maruti. “When we implemented Oracle Financials, we found that the application integrated easily with the Hyperion system, so there were no interruptions to the business when we cut over to Oracle from our legacy financial system,” Uppal said. “Now that
Streamlined Procurement Lowers Costs Maruti implemented Oracle Purchasing to manage procurement of capital goods, services, and indirect consumables. Prior to implementing Oracle Purchasing, some subsidiaries had a rudimentary system, while others relied on basic spreadsheets to manage the process. This made it difficult for the organization as a whole to have control over capital and services purchasing, leading to escalating costs and excess inventory. With Oracle, Maruti now has a standardized platform to oversee procurement. The company has set up a list of preferred suppliers to cut down on the number of vendors it deals with and ensure it has control over costs. An automated workflow sends purchase orders along the approvals chain and keeps staff in the accounts payable department aware of all procurement activity.
15 | P a g e
While moving to an electronic system was a major change for most staff, Uppal said it was adopted quickly after an intensive period of training. “We have a good system that has streamlined procurement and given staff the ability to track the entire process, from the initial order to receipt of goods and payment,” said Uppal. “Staff are happier, efficiency has improved, and costs have been reduced.”
Integrated HR System Smartens Workforce Management A period of rapid growth saw Maruti’s workforce expand to 5,000 people across India, and the company quickly discovered that using mismatched systems to manage human resources was inadequate. What the company needed was a single, integrated system to manage its employees. After implementing a range of Oracle Human Resources applications, Maruti reported better control over HR functions such as recruitment, payroll, compensation management, leave management, competency assessments, and staff development. The details of each employee are stored into a single database, from which HR staff can access a complete personal and work history. If a new position needs to be filled, they can search the database and run reports to determine the best candidate for the job. Staff can also run reports to determine the skill level of various employees, and ensure there are proper training programs in place to advance their knowledge. Maruti deployed Oracle Self-Service HR to free HR staff from basic duties such as changing staff address details and answering queries about payment details and leave entitlements. Staff are encouraged to update their details and apply for vacation time using the system. Their managers can then approve the request online. “Our HR staff love the system because it has released them from mundane tasks and allowed them to focus their energies on value-adding activities such as performance assessment and staff development,” said Uppal. “This helps us attract and retain high-quality people, a major asset for any organization.”
Tight Project Management Ensures Swift Deployment As with all Oracle Consulting-led deployments, consultants sat down with Maruti managers and key business users to scope out their requirements. A steering committee was set up to guide the implementation and ensure consultants had recourse to senior executives for advice. The project plan delineated the responsibilities of each party and incorporated monthly milestones and testing deadlines. Oracle Consulting ensured a fast, problem-free installation by employing Oracle’s Business Flow Accelerators—an implementation approach that leverages predefined business flow templates to reduce the time and cost associated with application deployments. A key project challenge was interfacing the Oracle modules with Maruti’s legacy systems, including direct item procurement, dispatch systems, the time card system for attendance, and 16 | P a g e
the Hyperion business intelligence platform. The integration had to be completed without any impact on the company’s business, which frequently deals in large volumes. For example, Maruti generates more than 2,000 invoices each day and any lengthy interruptions could have disastrous impacts on cash flow further down the line. The open, modular structure of Oracle E-Business Suite ensured the technical side of the integration was relatively painless. Process-wise, Oracle Consulting helped ensure tight integration for real-time performance, enabling budget and credit checks to be completed online in the legacy system.
Ensuring a Smooth Transition While Oracle Consulting was not actively involved in change management, the team contributed indirectly to Maruti’s efforts to transition users to the new modules. The Oracle team advised Maruti on process changes and contributed to training programs. “Oracle Consulting developed the user manuals, helped us design a train-the-trainer program, and provided additional training for our super users,” said Uppal. “Their assistance was a huge help in overcoming resistance among users and adjusting them to the new system. Once they understood how it worked and the benefits it generated, they were happy to adopt the Oracle applications. “With Oracle Consulting, we got a total solution—a partner with end-to-end responsibility for developing, installing, and supporting the solution.”
Future Plans After the success of the financials, procurement, and human resources deployment, Maruti is considering expanding its Oracle footprint. The company is evaluating Oracle Advanced Supply Chain Management and Oracle Enterprise Asset Management. “We would like to further automate supply chain management and integrate more processes with the Oracle ERP system,” said Uppal. “We are also looking at integrating more systems with Oracle, so we can access real-time information across all our businesses. I expect Oracle Consulting to play a role in future projects.”
17 | P a g e
SALE PROCESS OF MARUTI SUZUKI Maruti Suzuki sells its car through showroom across India. Apart from selling car it also provide services facility to its car owner like – Insurance, Finance, Exchange, True Value, and Driving School.
SOURCES OF CUSTOMER Walk In Reference
Telephone
CUSTOMER IDENTIFICATION Identification of customer is done according to •
Usage
•
Requirement
•
Repayment option
•
Year of repayment
• Mid class
CUSTOMER INTERACTION SYSTEM (C.I.S.) All data collected by the agent is processed in a system called C.I.S. All daily inquires are feed in the system and Appointments are taken accordingly.
18 | P a g e
DEALER MANAGEMENT SYSTEM (D.M.S.) All the data collected by the various dealers and showrooms is processed in D.M.S.
DEALER
Connection
DATA
SHOWROOM
PROCESS FLOW There are three broad processes at a showroom. Pre-sales Sales Post –sales All these are inter-related to each other
19 | P a g e
Process
D.M.S.
Positive/Negative Full technical tests Pre Advance -Booking
Launch
Pre-Sales The pre-sales process is very important because if a customer has a satisfying experience during this process, it greatly increases the chances of him purchasing the car from your showroom. At this stage, the customer is indecisive as to which car to buy and from where to buy The customer acquires Knowledge about
MUL ‘s range of cars Allied services like finance, insurance, pre owned cars, extended warranty etc. Accessories, range offered, prices etc. Preventive maintenance of the car
The Sales Activities Include: •
Visit the prospects
•
Understanding needs of the prospects
•
Give a proposition to the customer.
•
Create interest and preference for MUL
•
Give a detailed demonstration and test drive
•
Provide clarification to queries and handle objections
20 | P a g e
•
Follow-up with the customer
•
Secure order from customer
•
Offer allied services like finance, insurance, accessories etc.
•
Advice customer on all matters related to his car.
•
In case there are too many Sales cases, a special focus is required to serve these
Post Sales Follow UP (PSF) Parameters A. Number of cars sold B. Number of customers contacted
21 | P a g e
C. PSF percentage (B/A *100) D. Number of satisfied customers E. Number of dissatisfied customers F. Satisfaction % (D/B * 100)
A database is complied which includes the above said parameters. •
Customer Complaints received by dealer are through : E-mail Internet survey forms Telephone Letter Consumer Forum / Legal Notices This data is compiled in software database.
DMS (DATA MANAGEMENT SOFTWARE) According to Maruti “Today’s market is a customer-oriented one, where the customer is the king. If a person wants to purchase something, he would like to make enquiries at all reachable sources. Now it depends upon the seller that how efficiently he manages these enquiries and makes efforts to convert the same into productive ones. It is very important to keep track of each and every enquiry until and unless it is not converted or closed. It is also important to keep an eye on the marketing team; so that you know what they are doing in market and what response, they are getting from the market.” DMS does the following: a) It can keep a record of all enquiries and can generate timely reports whenever required. b) At the time of enquiry feeding, it will ask for all required details. c) After collecting all information, it can generate a Performa Invoice/Offer Letter for the customer. d) DMS not only generates Performa Invoice or allot the enquiries to sales executives, but it will keep record of the enquiry until and unless the enquiry is not converted or closed. 22 | P a g e
e) DMS generates several reports that help the management as well as the sales team. f) It generates reports like enquiry register, booking register, test drive register, visiting register, pending enquiry register, enquiry lost with reason, per day enquiry list, closed enquiry register, conversion ratio, expenses per enquiry, target v/s achievement report (executive wise/overall) and many more that will definitely help Maruti which believes in customer care and 100% conversion of enquiry
The minimum system specifications for using DMS are: • • • • •
Pentium PC (with CD ROM Drive to install the s/w) 80 Column DOT MATRIX PRINTER (can be shared within the network) Windows 95/98/Me or Windows NT/2000/XP 64 MB RAM 200 MB free hard disk space
There are several DMS Forms:
Model Details
Basic Models •
The information about all the basic models have to be entered using this form. An important thing is the availability of the color option. That means within each & every basic model, there is an option to allow/disallow the color’s availability.
23 | P a g e
24 | P a g e
•
Model Variant To make an entry for a variant model, it is necessary to select its basic model. Now, you have automatically got the information of the colors availability. If it is “Metallic” then there you have two frames (one is price detail & the second is colors detail for the metallic) to specify the information regarding that option. The other frame (which belongs to non-metallic option) is disabled. If you have allowed both color types in the color availability box of the Basic Model Master, then you are free to make entries into the “Metallic” and “Non-Metallic” frames. There are options to enter sale price, booking price, RTO amount, and insurance amount & handling charges
•
After, this, select (put ticks) the colors from the frames that are available with the model. Only the selected colors will be displayed in the enquiry form with this model
•
There is an option - “Active” - to make you free from the burden to select the models from the bunch, in the enquiry form. If you select “No”, then the variant model will not be displayed in the enquiry form, but still it will remain in the database
25 | P a g e
•
Accessories Details In this form, you can specify the details of the accessories and basic models on which these are applicable. You can specify the rates of the accessories along with the associated model. According to your selection, you will have the list of accessories in the booking form with their sale & purchase price. You can change the price of the accessory in the booking form, which is applicable to that sale only.
•
Color Details In this form, you are having the options to add or modify the model colors. According to your specification of the colors, you will have the list of the colors in the Model Variant Details form Executive details
•
This form is used to create an executive profile. You can make a new entry as well as change an existing entry. A photograph of the executive can also be scanned into the system and can be saved with the profile. A username and password must be provided if you are making a new entry. This is because DMS considers each executive as a user with the operator level rights. He has to feed his entries and alter them on his own. In some companies, the executives may not be directly using the software. For them, we have provided a User Manager with the help of which you can create a new user with manager level rights.
•
Financer Details In the financer master form, all the information is maintained related with the finance company. Only the company name & the city in which it is situated have to be entered.
•
Insurance Details Here you can maintain the information regarding the insurance companies. Only insurance company name & its working city are necessary to make the alteration in to that form.
•
Status Details The status details are one of the most important features of AutoSoft. The status that is being entered defines the exact position of an enquiry. Hence, it is very important to select an appropriate name for the status, so that it can be self- defining. The ‘Close’ field is used to determine whether an enquiry with the given status is active or not. We are providing a list of most commonly used status names and we think that these may fulfill all your needs. However, in case if you want to enter or alter a status you can do it with the Status Details form. Some predefined status is related with report generations are locked from changes. The others can be altered as your requirement.
26 | P a g e
•
Area Details This form can be used to manage various work areas in your dealership. The enquiries can be categorized into various areas, so that in future you can pay more attention on a specific region where your market is strong and maybe you can arrange a camp in that area.
•
Mode Details There can be various ways through which an enquiry can be made. These are the enquiry modes, which can be specified using this form. Mode is basically used in the Enquiry Details form to maintain the customer communication with our company.
•
Training Details In the Training master form, you can enter the information about the training, which have been conducted during a particular time period. We are also maintaining the information regarding the attendance of the executives in a specific training. That is, how many executives out of the given list have attended the training? With the help of these training details we are generating various MIS reports. The details provided here can help the management to find out an efficient person for a special task. Searching facility is also available, so you can find out the total information of a particular training with just one click over there.
•
Offer Details It is used just to maintain such special offers that are applicable to various basic models
27 | P a g e
The Maruti System Architecture
28 | P a g e
BACKGROUND The Maruti project started in 1988. The first version of the system was designed as an objectoriented system with suitable extensions for objects to support real-time operation.
The proof-of-concept version of this design was implemented to run on top of the UNIX operating system and supported hard and non-real-time applications running in a distributed, heterogeneous environment.
The feasibility of the fault-tolerant concepts incorporated in the design of Maruti system was also demonstrated. No changes to the UNIX kernel were made in that implementation, which was operational in 1990. Unix was not a very hospitable host for real-time applications, as very little control over the use of resources can be exercised in that system without extensive modifications to the kernel. Therefore, based on the lessons learned from the first design, they proceeded with the design of the current version of Maruti and changed the implementation base to CMU Mach which permitted more direct control of resources.
HARDWARE: Most recently, they have implemented Maruti directly on 486 PC hardware, providing Maruti applications total control over resources. The initial version of the distributed Maruti has also been implemented, allowing Maruti applications to run across a network in a synchronized, hard real-time manner.
Design Goals The design of a real-time system must take into consideration the primary characteristics of the applications which are to be supported. The design of Maruti has been guided by the following application characteristics and requirements:
Real-Time Requirements The most important requirement for real-time systems is the capability to support the timely execution of applications.
Fault Tolerance Many of the mission-critical systems are safety-critical, and therefore have fault tolerance requirements. In this context, fault tolerance is the ability of a system to support continuous operation in the presence of faults.
29 | P a g e
30 | P a g e
Distributivity The inherent characteristics of many systems require that multiple autonomous computers, connected through a local area network, cooperate in a distributed manner. The computers and other resources in the system may be homogeneous or heterogeneous. Due to the autonomous operation of the components which cooperate, system control and coordination becomes a much more difficult task than if the system were implemented in a centralized manner. The techniques learned in the design and implementations of centralized systems do not always extend to distributed systems in a straightforward manner.
Scenarios Many real-time applications undergo different modes of operation during their life cycle. A scenario defines the set of jobs executing in the system at any given time. A hard real-time system must be capable of switching from one scenario to another, maintaining the system in a safe and stable state at all times, without violating the timing constraints.
Integration of Multiple Requirements The major challenge in building operating systems for mission-critical computing is the integration of multiple requirements. Because of the conflicting nature of some of the requirements and the solutions developed to date, integration of all the requirements in a single system is a formidable task. For example, the real-time requirements preclude the use of many of the fault handling techniques used in other fault-tolerant systems.
Design Approach and Principles Maruti is a time-based system in which the resources are reserved prior to execution. The resource reservation is done on the time line, thus allowing for reasoning about real-time properties in a natural way. The time-driven architecture provides predictable execution for real-time systems, a necessary requirement for critical applications requiring hard real-time performance. The basic design approach is outlined below:
Resource Reservation for Hard Real-Time Jobs Hard real-time applications in Maruti have advance resource reservation resulting in a priori guarantees about the timely execution of hard real-time jobs. This is achieved through a calendar data structure which keeps track of all resource reservations and the assigned time intervals. The resource requirements are specified as early as
31 | P a g e
possible in the development stage of an application and are manipulated, analyzed, and refined through all phases of application development.
32 | P a g e
•
Predictability through Reduction of Resource Contention Hard real-time jobs are scheduled using a time-driven scheduling paradigm in which the resource contention between jobs is eliminated through scheduling. This results in reduced run time overheads and leads to a high degree of predictability. However, not all jobs can be pre-scheduled. Since resources may be shared between jobs in the calendar and other jobs in the system, such as non-real-time activities, there may be resource contention leading to lack of predictability. This is countered by eliminating as much of resource contention as possible and reducing it whenever it is not possible to eliminate it entirely. The lack of predictability is compensated by allowing enough slack in the schedule.
Integrated Support for Fault Tolerance Fault tolerance objectives are achieved by integrating the support for fault tolerance at all levels in the system design. Fault tolerance is supported by early fault detection and handling, resilient application structures through redundancy, and the capability to switch modes of operation. Fault detection capabilities are integrated with the application during its development, permitting the use of application-specific fault detection and fault handling. As fault handling may result in violation of temporal constraints, replication is used to make the application resilient. Failure of a replica may not affect the timely execution of other replicas and thereby the operation of the system it may be controlling. Under anticipated load and failure conditions, it may become necessary for the system to revoke the guarantees given to the hard real-time applications and change its mode of operation dynamically so that an acceptable degraded mode of operation may continue.
Separation of Mechanism and Policy In the design of Maruti, an emphasis has been placed on separating mechanism from policy. Thus, for instance, the system provides basic dispatching mechanisms for a time-driven system, keeping the design of specific scheduling policies separate. The same approach is followed in other aspects of the system. By separating the mechanism from the policy, the system can be tailored and optimized to different environments.
Portability and Extensibility Unlike many other real-time systems, the aim of the Maruti project has been to develop a system which can be tailored to use in a wide variety of situations-from small embedded systems to complex mission critical systems. With the rapid change in hardware technology, it is imperative that the design be such that it is portable to different platforms and makes minimal assumptions about the underlying hardware platform. Portability and extensibility is also enhanced by using modular design with
33 | P a g e
well defined interfaces. This allows for integration of new techniques into the design with relative ease.
Support of Hard, Soft, and Non-Real-Time in the Same Environment Many critical systems consist of applications with a mix of hard, soft, and non-realtime requirements. Since they may be sharing data and resources, they must execute within the same environment. The approach taken in Maruti is to support the integrated execution of applications with multiple requirements by reducing and bounding the unpredictable interaction between them.
Support for Distributed Operation Many embedded systems need several processors to carry out their computations. When multiple processors function autonomously, their use in hard real-time applications requires operating system support for coordinated resource management. Maruti provides coordinated, time-based resource management of all resources in a distributed environment including the processors and the communication channels.
Support for Multiple Execution Environments Maruti provides support for multiple execution environments to facilitate program development as well as execution. Real-time applications may execute in the Maruti/Mach or Maruti/Standalone environments and maintain a high degree of temporal determinacy. The Maruti/Standalone environment is best suited for the embedded applications while Maruti/Mach permits the concurrent execution of hard real-time and non-real-time UNIX applications. In addition, the Maruti/Virtual environment has been designed to aid the development of real-time applications. In this environment the same code which runs in the other two environments can execute while access to all UNIX debugging tools is available. In this environment temporal accuracy is maintained with respect to a virtual real-time.
Support for Temporal Debugging When an application executes in the Maruti/Virtual environment its interactions are carried out with respect to virtual real-time which is under the control of the user. The user may speed it up with respect to actual time or slow it down. The virtual time may be paused at any instant and the debugging tools used to examine the state of the execution. In this way we may debug an application while maintaining all temporal relationships, a process we call temporal debugging.
34 | P a g e
Customer Relationship Management: In these competitive times the challenge is to keep inventing newer ways of doing things to keep the customers in your fold. Over the last few years, the company strengthened the existing practices and experimented with many new initiatives by way of kaizens (continuous improvements) to delight its customers. These initiatives ranged from product design and quality to network expansion, and included new service programs to meet unsaid needs of customers. The company has retained its competitive edge by offering high quality products. In the field, the products are 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 get closer to the customer. The company takes great pride in sharing that customers have rated Maruti Suzuki first once again in Customer Satisfaction Survey conducted by independent body, J. D. Power Maruti and CRM Post 1998, the market structure changed drastically. As a result of the internal turmoil and the changes in the external environment, Maruti faced a depleting market share, reducing profits, and increase in inventory levels, which it had not faced in the last 18 years. This forced Maruti to create the land-mark in CRM by launching a website for the customers in the year 1998. Maruti is investing a lot of money and effort in building customer loyalty programmes.
Key Initiatives Setting up "Express Service Bays" & "2 - Technician Bays" As the name suggests the company set out to delight its customers by offering them faster car service by introducing new concepts such as Express Service Bays & 2- Technicians Bays. These are done for customers who are hard pressed for time. 35 | P a g e
Both the initiatives undertaken in this direction have helped improve customer interface and also helped increase the productivity and capacity of existing workshops.
Service at Door Step through Maruti Mobile Support Another unique initiative is the door step service facility through Maruti Mobile Support. Maruti Mobile Support is a first of its kind initiative and is expected not only to help the company reach out customers in metro cities but also as a mean to reach semi urban /rural areas where setting up of new workshop may not be viable
Maruti Auto Card Maruti Auto Card in association with Master Card, brings the customer all the advantages of an international credit card in addition to bringing the customer an opportunity of earning valuable Auto points for his next Maruti car.
Maruti Call Center Maruti has proper customer complain handling cell under the CRM dept. The CIC will help MUL rapidly build an information pool of over 3 million Maruti owners as well as that of its prospective customers.
Maruti on Road Services The MOS ensures: Round-the-clock services in most of the cities
A computerized call-monitoring system dispatches a mobile MOS van to the customer at the earliest
All MOS vans are managed by qualified Maruti Authorized Dealers / MASS technicians who are trained by Maruti in problem diagnosis
36 | P a g e
The customer are charged only Rs.100 on labour and spares
N2N Maruti’s N2N Fleet Management Solutions for companies, takes care of the A-Z of automobile problems. Services include end-to-end backups/solutions across the vehicle’s life: Leasing, Maintenance, Convenience services and Remarketing.
Market Research Department Their Market Research department remains on its toes to study the changing consumer behaviour and market needs. They capture the CRM data throughout the customer buying cycle through their CRM softwares and analyse the changing customer trends. Maruti enjoys 70% repeat buyers which further bolsters their claim of being customer friendly Types of CRM There are three main parts of the CRM process in Maruti: analytical, operational, and collaborative. Operational CRM Operational CRM refers to the customer facing business processes such as sales, marketing and service. Interactions with customers are generally stored in customers’ contact histories, and staff can retrieve customer information as necessary. This provides staff members with immediate access to important information on customer products and prior calls etc. eliminating the need to individually obtain this information directly from the customer. The tasks that come from these processes are then passed on to the employees responsible for them, along with the information necessary for carrying out the tasks.
Managing Campaigns Enterprise marketing Automation Sales force Automation Sales Management System
Analytical customer relationship management In this aspect of CRM, data is gathered from various CRM efforts and analyzed to identify cross- and up-selling opportunities. This data gathering is a ongoing process which allows for business decisions to be continually refined over time based on feedback from earlier analysis. It makes heavy use of data mining and other techniques to produce useful results for decision making. It is at the analytical stage that the more information that the analytical software has available for analysis, the better its predictions and recommendations will be. 37 | P a g e
Sales intelligence CRM Sales intelligence CRM is similar to analytical CRM but is intended as a more direct sales tool Features include alerts sent to sales staff regarding:
Designing and executing targeted marketing campaigns.eg customer acquisition and cross selling. Analyzing customer behaviour in order to take decisions regarding products and services. Management information system (Forecasting or Budgeting).
Collaborative CRM Collaborative CRM streamlines interactions with customers through all channels – email, phone, letter, and fax – by supporting ease of interaction and coordinating employee teams and customers. It’s a customer relationship management solution that brings customers, employees, processes, and data together to allow companies to better serve and retain their customers. Other advantage: which help in CRM A Buying Experience like No Other Maruti Suzuki has a sales network of 307 state-of -the-art showrooms across 189 cities, with a workforce of over 6000 trained sales personnel to guide MUL customers in finding the right car. Quality Service across 1036 Cities In the J.D. Power CSI Study Maruti Suzuki scored the highest across all 7 parameters: 1. 2. 3. 4. 5. 6. 7.
Least problems experienced with vehicle serviced, highest service quality, best in-service experience, best service delivery, best service advisor experience, most user-friendly service and best service initiation experience.
92% of Maruti Suzuki owners feel that work gets done right the first time during service. The J.D. Power CSI study also reveals that 97% of Maruti Suzuki owners would probably recommend the same make of vehicle, while 90% owners would probably repurchase the same make of vehicle. One Stop Shop 38 | P a g e
At Maruti Suzuki, customers will find all car related needs met under one roof. Whether it is easy finance, insurance, fleet management services, exchange- Maruti Suzuki is set to provide a single-window solution for all car related needs. The Low Cost Maintenance Advantage The acquisition cost is unfortunately not the only cost customers face when buying a car. Not so in the case of a Maruti Suzuki. It is in the economy segment that the affordability of spares is most competitive, and it is here where Maruti Suzuki shines.
Following diagram summarizes the role of CRM in MARUTI SUZUKI:
39 | P a g e
SUPPLY CHAIN MANAGEMENT: Using a combination of Unix Shell programming, Oracle forms, .Net, and Windows FTP technology, there is transparency in the export supply chain. It covers the entire process from when a distributor orders a vehicle to production to shipment. It provides all stakeholders complete visibility of an order's progress. It also updates distributors' systems to facilitate their dispatch planning. It facilitates electronic transfer of orders and acknowledgements, and communicates the daily progress of a production plan, and dispatch status to the distributor. 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.
These are the various processes which are involved in the Supply Chain Management. All of the above processes are detailed in databases which are maintained under high security and accuracy.
40 | P a g e
Following is the Distribution Network followed in Maruti:
COMPUTER INTEGRATED MANUFACTURING(CIM): •
(CIM) is the manufacturing approach of using computers to control the entire production process.
•
This integration allows individual processes to exchange information with each other and initiate actions. Through the integration of computers, manufacturing can be faster and less error-prone, although the main advantage is the ability to create automated manufacturing processes. Typically CIM relies on closed-loop control processes, based on real-time input from sensors. It is also known as flexible design and manufacturing
•
CIM is most useful where a high level of ICT is used in the company or facility, such as CAD/CAM systems, the availability of process planning and its data.
Hence Maruti uses this system which assists in designing the automobiles which bring about innovation in the product line of Maruti. CAD SOFTWARES:
Solid Edge Unigraphics(NX-5) Autocad Tecnomatix Teamcenter(CAM)
41 | P a g e
In nutshell, The Information management, process management and global collaboration supported by Teamcenter® software More efficient and innovative design and manufacturing with NX™ software Ability to simulate manufacturing processes using Tecnomatix® software
42 | P a g e
PRODUCT LIFECYCLE MANAGEMENT: It has PLM solution with capabilities for information management, process management, knowledge capture and support for global collaboration. PLM’s information management capabilities address the issue of the many platforms, local variants and export destinations. Process management permits concurrent development and faster change management and provides a platform for other process improvements Since implementing the UGS PLM solution, engineering change notice (ECN) time at Maruti has decreased by 50 percent. The number of ECN errors has also been cut in half. Cost reduction, which had been occurring to some extent before the PLM implementation, is even more effective now, an improvement of 54 percent. With 3D parametric models now representing all elements of a vehicle, design reviews include digital mockups, which people find much easier to understand than drawings. On a recent program, digital design reviews revealed 36 issues that previously would not have been detected until the prototype stage, resulting in program delays. With the UGS PLM implementation, such delays are now avoided. Factory simulation functionality has had equally beneficial results. Digital 3D plant layouts reduce errors and have cut personnel costs for accommodating new product introductions. In addition, Maruti has seen a 50 percent reduction in assembly/build issues. From the business perspective, all this means vehicles get to market sooner. The company has Experienced a reduction in design-to-launch time of 25 percent, and expects a further reduction of 15 percent as more of the collaboration with Suzuki and suppliers is done electronically in real time. From the customers’ perspective, the move to the UGS PLM solution is seen in lower prices. Since the implementation of Teamcenter, NX and Tecnomatix, Maruti has reduced prices for five car models
43 | P a g e
Model of an Executive Support System
ESS is used for decision making functions at the highest level.
44 | P a g e
This shows that Enterprise system incorporates every aspect of an organisation.
RECOMMENDATIONS: 1. Selection of SAP as ERP Package because of the following reasons: 45 | P a g e
Manages the complete vehicle order to delivery process. Manufacture and deliver components Handle warranty claims with efficiency and accuracy Enhance dealership management Improves relationship with customers and partners Improves logistics, Resource Planning, etc.
Developers of Information Systems Must Comply with ILM Policy Requirements. System, applications, infrastructure, and other information technology components must be created or acquired using a development methodology that ensures that Maruti Records are created, maintained and disposed of in accordance with the ILM Policies.
Retention of Information. All Information System content must be retained in accordance with the Record Retention Policy and Schedule. Each Information System must have a process to ensure the regular and systematic review and compliance with applicable retention requirements.
Maruti Information Systems Must Meet ISP&P Requirements. Information Systems must also meet the following information security requirements set forth in the GM ISP&P:
2.
o Availability ensures that Maruti Information is accessible when and where it is needed. o Integrity ensures that Information is correct or accurate to the degree anticipated by those who use it. It also ensures that Information has not been changed and has not been exposed to unauthorized modification, or disposal. o Confidentiality ensures that Information is not disclosed to anyone who is not authorized to access it. In support of this is the idea of needto-know, authorizing the sharing of Information only among those who can demonstrate a legitimate business need.
3. Economic Order Quantity Concept Traditionally, buyers purchased based on the Economic Order Quantity concept. This model encourages buyers to place large orders to achieve price breaks. Orders are then delivered to a receiving area, inspected, and moved to a warehouse. Later, orders are moved to a manufacturing floor where they are reconditioned. With this system, orders are very standard and late deliveries are not a problem because a backlog of inventory is available. 46 | P a g e
4. The alternate approach to the adversarial model used in the past is the partnership model. This model is characterized by the following:
A high frequency of both formal and informal communications
Cooperative attitudes
A trusting relationship
Problem-solving, ‘win-win’ negotiating styles, with an emphasis on managing total costs
Long-term business agreements
Open sharing of information by multi-functional teams
Vendor certification and defect prevention approaches
5. A strategy of “leaning” the supply chain through internet technology which involves using the Web to design, build, and buy innovative new vehicles 6. Development of a network with experts in the fields of Benchmarking, Six Sigma, Lean Enterprise and Supply Chain Management 7. E-procurement process which is the reverse auction process where vendors bid online to supply requirements. 8. As a part of Inventory Management System, there can be a centralized, Web-based system which tracks what parts are used each day out of a dealer's inventory, collecting data as ebXML through an automated polling system. If any part falls below five units, the system informs the parts manager and forwards an order to any of part distribution centers. The system compares a dealer's daily sales to its inventory list. It knows national averages for dealership parts use, as well as local usage data, and can account for regional discrepancies
47 | P a g e
CONCLUSION From all the above information and data collected , it can be concluded that Maruti Suzuki has eventually developed its infrastructure from non-IT based to simple computerization of its internal data base and employee work track and then to networking the whole organization via LANS,MANS and WANS. When IT sector flourished and attracted the whole world to its functionality, Maruti Suzuki too realised its importance and started adapting IT at various levels from apex level to executive level to operational level. First of all the systems used were CAD/CAM at operational level and TELNET (Black and white Unix based) at all levels. Eventually, the organization has implemented ERP ORACLE for all its operations like
DMS ( Data Management System) CRM (Customer Relationship Management) MOS (Maruti on road services) SFA (Sales Force Automation) SMS (Sales Management System) SCM ( Supply Chain Management) DN (Distribution Network) CIM ( Computer Integrated Manufacturing) PLM (Product Life-cycle Management) ESS (Executive Support System) CCS (Customer Care System) Currently Maruti Suzuki is successfully reaping the benefits of its MIS . The total investment of Rs. 100 crores per annum is not an expenditure but an asset because ROI increased by 34% in the early years of implementation of IT infrastructure. For future SAP ERM is recommended so that company has a competitive edge in the
sector.
48 | P a g e
BIBILIOGRAPHY: 1. 2. 3. 4. 5.
49 | P a g e
http://www.marutisuzuki.com/company-profiles.aspx http://www.marutisuzuki.com/n2n-leasing.aspx http://www.marutisuzuki.com/Information.aspx http://www.marutisuzuki.com/company-at-a-glance.aspx http://www.marutisuzuki.com/technology.aspx
