Zoom away into the future that seems to be the motto of the Automobile manufacturers of India today. With the advent of technology, rapid changes are being made in the automobile industries which have lead to tremendous increase in the profits of these organizations. Updating outdated management system can reap significant benefits for the Automotive Industry. With the implementation of e-resource ERP, the most reliable, low-cost ERP solution available in the Indian market today, companies are producing products which can effectively compete in the International market and at the same time eliminating problems that occur in the areas of management, administration, production and operations.
The agility of the newer methods allows the company to customize their products from time to time and at the same time maintaining mass-production speed and efficiency. An example of this is Maruti Udyog Limited (MUL). Maruti Suzuki India limited is a subsidiary of the Suzuki motor corporation of Japan. It is India’s number 1 automobile company. Maruti is the highest volume car manufacturer in Asia, outside Japan and Korea, having produced over 3.5 million vehicles by December 2001. Maruti currently holds about 60 percent of the total market share in the Indian passenger car market. In the year 2005, after a prolonged battle, Oracle beat out SAP to sign up MUL for ERP implementation in the company. Prior to implementing oracle, Maruti faced a number of problems with its existing management systems. Many of these systems could not communicate with one another and the users had to enter the data a number of times and consolidate information in order to generate reports.
The newer methods incorporated by MUL with the help of its Oracle-based IT infrastructure increased the customers satisfaction and the amount of employee interactions with in the company. Maruti carried out this IT implementation project last year. The project uses Oracle Applications on top of Oracle Database and Oracle Fusion Middleware.
Another need for the company was to decrease the amount of time it faced in order to carry out changes in the product, streamlining vehicle distribution and enhancing quality and reliability. These challenges prompted Maruti to implement SIEMENS PLM (product lifecycle management). Since implementing the SIEMENS 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 has also been improving effectively. Simulation models of the cars and their operations have helped in reducing the layout errors and reduced personnel costs. From the business point of view, this means that the market will get the vehicles sooner.
With continuous advancements in these fields and the swiftness with Maruti is implementing changes in its production and distribution lines, it seems that the number of years of Maruti dominance in the Indian automobile industry is increasing.
yes i totally agree with Mayank...The dominance will continue to remain with proactive approach of MUL especially on technology implementation side.
ReplyDeletei totally agree with Mayank....to maintain the dominance company is taking very proactive approach especially on technology side...insightful reading ....keep writing...
ReplyDeleteThe Indian Automobile manufacturers have been tremendously benefitted by favourable govt. regulations towards the sector. The FDI cap of 100% is one of them. Favourable business evt coupled with the huge demand of the consumption driven Indian Economy has made India a hub for production of vehicles for major world co's. This has directly propelled the improvement in the operations processes of these co's. Maruti, being an early mover has exploited it favourably as discussed by Mayank in his blog.
ReplyDeletewell written .....however does implementation of ERP which isnt new to any of the companies competing for MUL's market share ensure its dominance? What about the changes in the market share of VW,AUDI,HYUNDAI over the years(keeping in mind their older stint with ERP)?
ReplyDeleteThe dominance of maruti in the automobile sector is due to its products. despite being a JV with suzuki maruti is still an Indian company and this way it has been able to efficiently gauge the needs of the Indian customer...so that helps in it maintaining a good hold over the Indian market...
ReplyDeleteA well written article.....Also the dominance of maruti in the Indian automobile sector is predominantly because of the ability of the firm to identify the needs of the consumer and formulating its operational strategies to complement its marketing pull making it a market leader in the sector.
ReplyDeletegot your(authors) point,,,
ReplyDelete