One innovative Business Practice - M & M, Eicher, Maruti, Ashok Leyland, Tata Motors, Force Motors, Hyundai One innovative business practice adopted by companies such as M&M, Eicher, Maruti, Ashok Leyland, Tata Motors, Force Motors, and Hyundai is the implementation of Just-In-Time (JIT) manufacturing systems in their production processes. Summary: JIT manufacturing is a production strategy that aims to minimize inventory levels by producing goods only when they are needed, thereby reducing waste, improving efficiency, and enhancing overall productivity. In this system, components are delivered to the assembly line exactly when they are required, eliminating excess inventory and warehousing costs. By implementing JIT manufacturing, these automotive companies can respond quickly to changes in customer demand, reduce lead times, and optimize resource utilization, leading to cost savings and improved competitiveness in the market. The JIT approach underscores the importance of lean manufacturing principles and continuous process improvement, driving operational excellence and customer satisfaction for these leading automotive manufacturers.
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Project Manager | Military Leader & Corporate Strategist | Expert in Project Management, Operations Optimization, and Risk Mitigation | Delivering Excellence and Driving Organizational Success
🚗 Recently had the opportunity to attend a talk on Supply Chain Management delivered by Mr. Sunil Kakkar, Senior Executive Officer from Maruti Suzuki India Ltd at NIFM. Here's a snapshot of the enriching discussion, wherein he touched upon following:- 🔄 Delved into the intricate workings of Maruti's Supply Chain, exemplifying efficiency and reliability in automotive production. 💡 Explored the immense value addition opportunities within the supply chain, ensuring enhanced product quality and customer satisfaction. 💰 Emphasized the critical role of supply chain cost efficiency, underscoring its direct impact on bottom-line performance and market competitiveness. 🎯 Discussed the Key Result Areas (KRAs) for supply chain excellence, focusing on comprehensive excellence, risk mitigation, and sustainability, essential for a clean, green, and world-class supply chain. 🌱 Addressed the proactive measures in preparing the supply chain for the future, including compliance with safety regulations, integration of alternate fuels, and the advent of hybrid and electric vehicles (EVs). 🚀 Explored cutting-edge technologies like Advanced Driver Assistance Systems (ADAS) and vehicle communication, revolutionizing efficiency and innovation in automotive supply chains. Such practices emphasis on continued evolution and advancement of supply chain practices, driving excellence and sustainability in the automotive industry! #SupplyChainManagement #AutomotiveIndustry #Innovation #Sustainability 🌟
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What does your Purchase Department purchase from your Suppliers? Answer: Specific Supplier Outputs available at the Lowest Cost. Unfortunately, this results in multiple Chronic Problems. Recommendation: Your Purchase Department must purchase Supplier Process Capability. This can reduce your Incoming Inventory. A Cost Of Poor Quality (COPQ). As well as reduce WIP Inventory. A COPQ. In fact, your Purchase Department must partner with Key Suppliers (who in turn consider you to be an A-Category Customer) for improving Supplier Process Capability. This has been a proven WIN-WIN strategy. Maruti does it. Tata Motors does it. Bajaj Auto does it. And many more. #randomthought #copq #costofpoorquality #processcapability
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President and Director,JATO Dynamics India. Information Technology services and Consulting.Automotive
Strengths: Overall industry growth: Despite challenges for some brands, the 4.35% overall industry growth is a positive sign for the market's continued resilience. Hyundai and Tata's performance: Positive Y-O-Y growth for Hyundai and Tata indicates their ability to capitalize on market opportunities and potentially gain market share. Toyota's M-O-M success: Toyota's remarkable M-O-M success suggests effective strategies and potentially strong demand for their models. Weaknesses: Maruti Suzuki's decline: Maruti Suzuki had one week less for production for maintenance shutdown. The significant Y-O-Y and M-O-M decline for Maruti Suzuki, the market leader, requires further analysis. Understanding the reasons behind this drop will be crucial for interpreting the overall market context. KIA's M-O-M drop: KIA's notable M-O-M decline raises questions about their recent strategies and competitive position.
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Maruti Suzuki had announced that its total production increased 11.5% to 178,261 units in February 2024 as against 159,873 units recorded in February 2023. Sequentially, the auto major’s total production declined 12.99% as compared with 204,876 units produced in January 2024. The production of passenger vehicles stood at 174,543 units (up 11.57% YoY) and production of light commercial vehicles came in at 3,718 units (up 8.24% YoY) during the period under review. Maruti Suzuki India is engaged in the manufacture, purchase and sale of motor vehicles, components, and spare parts (automobiles). The auto major company reported 33.27% increase in consolidated net profit to Rs 3,206.80 crore on 14.33% rise in revenue from operations to Rs 31,844.70 crore in Q3 FY24 over Q3 FY23. Shares of Maruti Suzuki India rose 0.07% to currently trade at Rs 11,615.60 on the BSE. Powered by Capital Market – Live News Disclaimer: No Business Standard Journalist was involved in creation of this content First Published: <!-- -->Mar 02 2024 | 11:13 AM<!-- --> <!-- -->IST Source link
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Welcome to our latest video, "Inside India’s Booming Automotive Sector: Production, Exports, and Spare Parts Market." In this video, we explore the impressive growth of India's automotive industry, which in 2023 produced 5.6 million 4-wheeler commercial and passenger vehicles and exported over 700,000 units. We delve into the achievements of both international and indigenous brands, including BMW, Renault, Nissan, Hyundai, Citroen, TATA, Mahindra, Ashok Leyland, and Maruti Suzuki. These manufacturers are not only serving the domestic market but also significantly contributing to global exports. Discover how India, currently the fourth largest vehicle producer globally, is poised to challenge China's dominance in the coming decade. We also discuss the vital role of the automotive spare parts industry, highlighting India's status as home to Asia's largest wholesale auto parts market. At BP Impex, we are committed to supporting this thriving industry with high-quality automotive parts. Stay tuned for insights into the latest trends and developments in the Indian automotive parts market. Don't forget to like, comment, and subscribe for more updates! #AutomotiveIndustry #IndiaAuto #VehicleProduction #CarExports #SpareParts #BPImpex #TATA #Mahindra #Hyundai #BMW #Nissan #Renault #AshokLeyland #MarutiSuzuki #AutoPartsMarket #Tataspareparts #Indianautomotive #Indianparts #Hyundaiparts #Commercialvehicleparts #nissan #futureofautomobiles #automotiveinnovation #aftermarketparts #autoinnovation #ashokleyland #automobile #automotiveparts
Inside India’s Booming Automotive Sector: Production, Exports, and Spare Parts Industry | B P Impex
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Maruti Suzuki Financial Results #marutisuzuki Q1 FY 2023-24 PAT - Rs 24.85 billion EBITDA - Rs 29.83(Avg Estimate - 32.61) Billion EBITDA Margin - 9.23 % (Avg Estimate - 10.3) Percent The Company sold a total of 498,030 vehicles during the quarter, higher by 6.4% compared to the same period previous year. In the Quarter, the sales in the domestic market stood at 434,812 units, up by 9.1% over that in Q1FY23. The export sales were at 63,218 units as compared to 69,437 units in Q1FY23. Shortage of electronic components in this Quarter resulted in over 28,000 vehicles not being produced. Pending customer orders stood at about 355,000 vehicles at the end of the Quarter and the Company is making efforts to serve these orders fast. During the Quarter, the Company registered highest-ever quarterly Net Sales of INR 308,452 million as against INR 252,863 million in Quarter 1 of FY2022-23. The Net Profit for the Quarter rose to INR 24,851 million from INR 10,128 million in Q1FY24, a growth of 145.4% over that of Q1FY23. This was on account of larger sales volume, improved realization, cost reduction efforts and higher non-operating income.
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Toyota Indus, the second-largest automaker in Pakistan, has revealed plans to shut down its facility there. Due to inflation and a tax increase, the plant has been shut down. Toyota Indus Motors has reportedly announced a plant closure from August 25 to September 6. According to the company's statement, the country's high taxes had an impact on purchasing power and contributed to the challenges the car sector encountered during the fiscal year 2022–2023. The documents state that the automobiles are pricey and there is little demand, prompting businesses like Toyota Pakistan to reconsider their production methods. The production schedule for Indus Motor Company Limited will be suspended from Friday, August 25, 2023, until Wednesday, September 6, 2023. #Toyota #ToyotaNews #toyotaupdates #toyotashutdown #toyotaplantclosure #ToyotaPakistan #toyotaimpact
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Maruti owns nearly 40-45% of India’s Passenger Vehicles market. It can choose to pay its suppliers as late as it wants. But it does not do that. Why? Instead, it does something different. It asks suppliers to setup shop near their factories. Nearly 85% of Maruti’s suppliers are within a 100 km radius of its factories. This allows Maruti to operate with minimal inventory, and it rewards the suppliers by paying their dues early. In the process, it manages to operate on a negative working capital (WC). Not by increasing Payables, but by reducing Inventory. To understand this better – Consider 2 companies – A & B Both with sales of Rs 2000 crore Company A – CA 100, CL 100 Company B – CA 2000, CL 2000 (CA = Current Assets; CL = Current Liabilities) Both have Zero Working Capital, and both have the same Current Ratio. Yet, most of us will prefer A over B. Why? Because in the event of a business downturn, or any problem in managing working capital, Company A has to deal with a smaller amount. Efficient companies try to reduce WC by managing Current Assets better, and reducing both CA and CL. Inefficient companies just increase Current Liabilities (Payables) when they can. For Maruti, payables are about 10% of sales. Some companies just delay payments because they can. A good company would try to create a win-win for all stakeholders, to maximize long term advantage. A not so good one, will try to maximize short term advantage. Once again, a careful analysis of Working Capital can give interesting insights into the business. ---- I help #finance professionals enhance their learning and #career by my writing and courses Follow me (Peeyush) and do go through some of my earlier posts.
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Maruti owns about 40% of India’s Passenger Vehicles market. It can choose to pay its suppliers as late as it wants. But it does not do that. Why? Instead, it does something different. It asks suppliers to setup shop near their factories. Nearly 85% of Maruti’s suppliers are within a 100 km radius of its factories. This allows Maruti to operate with minimal inventory, and it rewards the suppliers by paying their dues early. In the process, it manages to operate on a negative working capital (WC). Not by increasing Payables, but by reducing Inventory. To understand this better – Consider 2 companies – A & B Both with sales of Rs 2000 crore Company A – CA 100, CL 100 Company B – CA 2000, CL 2000 (CA = Current Assets; CL = Current Liabilities) Both have Zero Working Capital, and both have the same Current Ratio. Yet, most of us will prefer A over B. Why? Because in the event of a business downturn, or any problem in managing working capital, Company A has to deal with a smaller amount. Efficient companies try to reduce WC by managing Current Assets better, and reducing both CA and CL. Inefficient companies just increase Current Liabilities (read Payables) when they can. A good company would try to create a win-win for all stakeholders, to maximize long term advantage. A not so good one, will try to maximize short term advantage. Once again, a careful analysis of Working Capital can give interesting insights into the business. ----- I help students build a career in #finance through my writing and courses. Follow me (Peeyush) and do go through some of my earlier posts - you may find them useful.
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Did you know that India is the world's fourth-largest automobile producer, and its auto parts industry is one of the largest and most diversified in the world? Here are the top automobile parts manufacturers in India, leading the way in innovation and production: Samvardhana Motherson International Limited Tata AutoComp Systems Limited Bharat Forge Limited Bosch Limited TVS Motor Company Limited Varroc Engineering Limited Endurance Technologies Limited Uno Minda Limited Jamna Auto Industries Limited Munjal Showa Limited https://lnkd.in/dip4d9HA Which of these companies are you most familiar with? Let us know in the comments below! #IndianAutoParts #AutomobileManufacturers #AutomotiveIndustry #Innovation #Production #Technology
Top 10 Automobile Parts Manufacturers in India - A Detailed Guide by KOMPASS India
https://in.solutions.kompass.com/blog
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