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A Case Study Report ON "Mahindra and Mahindra": Presented by

The document provides details about Mahindra & Mahindra, an Indian multinational automotive manufacturing corporation. It discusses the history of the company founded in 1945 by J.C. Mahindra and K.C. Mahindra. It profiles current chairman Anand Mahindra and outlines the company's vision, mission, milestones and organizational structure. Mahindra & Mahindra manufactures and sells a variety of automotive vehicles including cars, SUVs, trucks and buses. The case study provides an overview of the company's strategies, products, and operations.

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Sourabh Raorane
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0% found this document useful (0 votes)
1K views39 pages

A Case Study Report ON "Mahindra and Mahindra": Presented by

The document provides details about Mahindra & Mahindra, an Indian multinational automotive manufacturing corporation. It discusses the history of the company founded in 1945 by J.C. Mahindra and K.C. Mahindra. It profiles current chairman Anand Mahindra and outlines the company's vision, mission, milestones and organizational structure. Mahindra & Mahindra manufactures and sells a variety of automotive vehicles including cars, SUVs, trucks and buses. The case study provides an overview of the company's strategies, products, and operations.

Uploaded by

Sourabh Raorane
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 39

CASE STUDY on MAHINDRA&MAHINDRA 1

CASE STUDY REPORT

ON

“MAHINDRA AND MAHINDRA”

PRESENTED BY

Mr. MALI SOMNATH BALKRUSHNA

Under the Guidance of

Dr.G.R.Naik

DEPARTMENT OF PRODUCTION ENGINEERING,

KOLHAPUR INSTITUTE OF TECHNOLOGY’S

COLLEGE OF ENGINEERING, KOLHAPUR.

2019-20
CASE STUDY on MAHINDRA&MAHINDRA 2
CASE STUDY on MAHINDRA&MAHINDRA 3

CONTENTS

TITLE PAGE NO.

1.HISTORY

2 .MIELSTONE

3.VISION AND MISSION

4. MARKETING MIX

5.STRATEGY

6. ORGANISATIONAL
STRUCTURE

7. PRODUCTS

8.HR POLICY
CASE STUDY on MAHINDRA&MAHINDRA 4

HISTORY

J C MAHINDRA:

Founder, 1892 - 1951

Jagdish Chandra Mahindra, better known by his moniker JC, was born in 1892 in
Ludhiana, Punjab. The loss of his father at an early age thrust the responsibility of
his family’s welfare on his young shoulders. The eldest of nine, JC strongly
believed in the power of education and ensured all his brothers and sisters studied
hard.

After receiving an engineering degree from Veermata Jijabai Technological


Institute (VJTI), Mumbai - one of India’s premier Engineering and Technical
Institute - he began his career at Tata Steel, serving as the Senior Sales Manager
from 1929 to 1940. Recognition of his excellence arrived when the Government of
India appointed him as India’s first Steel Controller during the Second World War.
CASE STUDY on MAHINDRA&MAHINDRA 5

K C MAHINDRA:

Founder, 1894 - 1963

Kailash Chandra Mahindra, known to all as KC, was born in 1894 in Ludhiana,
Punjab, the second of nine children. When their father died at an early age, his
older brother JC became head of the family, and KC his best friend and future
business partner.

KC attended Government College, Lahore, where his scholastic aptitude shone


through. At Cambridge, he earned Honours, played hockey, and took a keen
interest in rowing. After graduating, he joined Messrs. Martin & Company, where
he edited the monthly magazine INDIA and, briefly, the Hindustan Review.
CASE STUDY on MAHINDRA&MAHINDRA 6

ANAND MAHINDRA:

Anand Mahindra (born 1 May 1955) is the chairman of Mahindra Group, a


Mumbai-based business conglomerate. The group operates in aerospace,
agribusiness, aftermarket, automotive, components, construction equipment,
defence, energy, farm equipment, finance and insurance, industrial equipment,
information technology, leisure and hospitality, logistics, real estate and retail. As of
September 2017, his net worth is estimated to be $1.55 billion.

He is an alumnus of Harvard University and Harvard Business School.[10] In 1996,


he established Nanhi Kali, a non-government organisation that supports education
for underprivileged girls in India. He is included by Fortune Magazine among the
'World's 50 Greatest Leaders'. and featured in the magazine's 2011 listing of Asia's
25 most powerful business people. Anand was noted by Forbes (India) as their
'Entrepreneur of the Year' for 2013.
CASE STUDY on MAHINDRA&MAHINDRA 7

In 1981, Anand joined Mahindra Ugine Steel Company Ltd (MUSCO) as an


Executive Assistant to the Finance Director.In 1989 he was appointed as President
and Deputy Managing Director of the MUSCO. he initiated the Mahindra Group's
diversification into the new business areas of real estate development and hospitality
management.

On 4 April 1991, he took the role of Deputy Managing Director of Mahindra &
Mahindra Ltd., a producer of off-road vehicles and agricultural tractors in India. In
April 1997, Anand was appointed as the Managing Director and then in 2001 as the
Vice Chairman of Mahindra & Mahindra Ltd. In August 2012, he took on the role
of Chairman of the board and Managing Director of the Mahindra Group from his
uncle, Keshub Mahindra. In November 2016, Anand was re-designated as Executive
Chairman of Mahindra & Mahindra Ltd and continued to be the Chairman
of Mahindra Group. Anand was a co-promoter of Kotak Mahindra Bank (formally
known as Kotak Mahindra Finance Ltd,.) In 2013, he ceased to be a promoter and
stayed on as a non-executive director. Today, the Mahindra Group is a US$19 billion
organisation, and one of India's top 10 industrial houses. Anand Mahindra has been
tagged as the face of Indian capitalism by The Economist. Forbes India Magazine
has recognised him as their 'Entrepreneur of the Year' for the year 2013.
CASE STUDY on MAHINDRA&MAHINDRA 8

VISION

The vision of the company is to be the ‘Leading independent player in the global
market&Transmission.

This we wish to achieve through a two pronged approach of developing a portfolio


of products thereby being able to provide a differentiated product offering to our
customers and extensive focus on operational excellence thereby improving internal
efficiencies in the system.
CASE STUDY on MAHINDRA&MAHINDRA 9

MISSION

 Good Corporate Citizenship: We will continue to seek long term success in


alignment with the needs of the communities we serve. We will do this without
compromising on ethical business standards.
 Professionalism: We have always sought the best people for the job and given them
the freedom and the opportunity to grow. We will continue to do so. We will support
innovation and well-reasoned risk taking, but will demand performance.
 Customer first: We exist and prosper only because of the customer. We will
respond to the changing needs and expectations of our customers speedily,
courteously and effectively.
 Quality focus: Quality is the key to delivering value for money to our customers.
We will make quality a driving value in our work, in our products and in our
interactions with others. We will do it 'First Time Right.'
 Dignity of the individual: We will value individual dignity, uphold the right to
express disagreement and respect the time and efforts of others. Through our actions,
we will nurture fairness, trust, and transparency.
CASE STUDY on MAHINDRA&MAHINDRA 10

MILESTONE
Mahindra & Mahindra Ltd., a part of the US $19 billion Mahindra Group, today
crossed the milestone of 100 retail outlets for an exclusive retail outlet that
stocks and sells Mahindra Genuine Spare Parts.

According to Hemant Sikka, President – CPO, Powerol & Spares Business,


"For automakers, the biggest concern is that counterfeit parts make vehicles
unsafe. Today, spurious parts reportedly make up a third of the total supplies
in the market which only puts into context the magnitude of the problem.
Having said that, customer awareness and ready availability of genuine spare
parts is the key to curb the sale of these counterfeit products. At Mahindr a, we
recognize this growing menace and have hence, set up these, across the
country, which are first of their kind retail outlets for genuine Mahindra spare
parts. Going forward, we will set up many such outlets, making genuine parts
easily available and adding to the convenience of our customers."

The Mahindra Group is a USD 19 billion federation of companies that enables


people to rise through innovative mobility solutions, driving rural prosperity,
enhancing urban living, nurturing new businesses and fostering communities.
It has a leadership position in utility vehicles, information technology,
financial services and vacation ownership in India and is the world’s largest
tractor company, by volume. It also enjoys a strong presence in agribusiness,
aerospace, commercial vehicles, components, defence, logistics, real estate,
renewable energy, speedboats and steel, amongst other businesses.
Headquartered in India, Mahindra employs over 2, 40,000 people across 100
countries
CASE STUDY on MAHINDRA&MAHINDRA 11

 Company Name: Mahindra & Mahindra Limited

 Representative Executive Officer, CEO: Anand Gopal Mahindra

 Business Outline: Manufacturing, sales and related business of


automotive products.

 Industry: Automotive

 Date of Establishment: 2 DECEMBER 1945

 Area served: Worldwide

 Products: Automobiles, luxury vehicles, commercial vehicles,outboard


motors.

 Number of employees: 138,910 (FY2017)

 Revenue: 105,806 crores (US$15 billion) (2019)

 Operating income: 8,870 crores (US$1.3 billion) (2019)

 Net Income: 6,016 crores (US$870 million) (2019

 Total Assets: 163,391 crores (US$24 billion) (2019)


163,391crore (US$24 billion) (2019)

 Website: www.mahindra.com
CASE STUDY on MAHINDRA&MAHINDRA 12

STRATEGIES ADOPTED BY COMPANY

4PS
Product:
Vehicles, electric vehicles, application trucks, trucks, light trucks and buses. In
the personal cars category, Mahindra & Mahindra has a wide range of Utility
vehicles, Multi-utility vehicles, Sports utility vehicles and sedans. Mahindra Bolero
has been the one of the best UVs in India. Mahindra & Mahindra trucks are known
to be powerful, durable and reliable. Cars such as Scorpio Mahindra & Mahindra
has a huge product mix with product lines of personal vehicles, commercial,
KUV100, XUV 500, Quanto, Xylo, Rexton, Korando, Kyron offer a lot of modern
features with the toughness that Mahindra promises. This gives an insight in the
product strategy in the marketing mix of Mahindra & Mahindra. They come in
vibrant colors ranging from dazzling silver, fiery orange to flamboyant red and
midnight black. Being an environment conscious company Mahindra & Mahindra is
trying to find environment friendly alternatives, e2o and eSupro are proof of such
commitments. These are the electric cars that Mahindra & Mahindra is currently
offering. E2o is a car whereas eSupro is a cargo van with zero emissions.

Price:
Mahindra & Mahindra has targeted different market segments with their
different vehicles. XUV 500 is for the cosmopolitan population with international
quality car and advance technology and style. Bolero is more for more price
conscious, middle class consumers in smaller towns. Therefore, the pricing strategy
in the marketing mix of the automobiles is done keeping the market segment and the
competitors in mind. The automobiles in the product portfolio ranges from as low as
CASE STUDY on MAHINDRA&MAHINDRA 13

4.54 lakhs to 40 lakhs. Mahindra Scorpio ranges from Rs.8.11 lakhs to Rs.15.05
lakhs. Different versions of XUV500 can be bought from Rs.12 lakhs to Rs. 17.9
lakhs. Mahindra Thar ranges from 5.22 lakhs to 8.38 lakhs. Mahindra Rexton is the
premium range SUV with superior features in the price range from 20.94 lakhs to
24.74 lakhs. Mahindra & Mahindra’s commercial vehicles are very popular for their
ruggedness and toughness. Mahindra Truxo ranges from 17 lakhs to 22 lakhs.
Mahindra & Mahindra follows competitive pricing as its price range is very similar
to its competitors. In fact, some commercial vehicles are priced marginally lower
than the competitors.

Place:

Mahindra & Mahindra has a distribution network spanning the length and
breadth of India. Mahindra & Mahindra has 300 dealerships spread across 240 cities.
Around 1300 up-country outlets have been set up to serve the rural and semi-urban
areas in the country. Mahindra & Mahindra has an efficient and effective warehouse
and clearing and forwarding facility. SRP group supports Mahindra in logistics and
warehousing. Mahindra & Mahindra has dealerships across the country which are
equipped to handle sales and service for personal and commercial vehicles both.
Their network reaches the remotest of places like Kargil, Port Blair, Barmer and
Jaisalmer to name a few. Mahindra & Mahindra has further broadened its horizon
by collaborating with ecommerce platforms giving further boost to the sales for
online customers.

Mahindra & Mahindra has a large customer base in the rural areas but due to poor
infrastructure and lack of facilities it is hard to penetrate the rural market. Therefore,
Mahindra & Mahindra came up with an innovative idea and helped in developing
CASE STUDY on MAHINDRA&MAHINDRA 14

dealership’s infrastructure in the rural areas through its “Samriddhi Centres”.


Through these centres farmers got valuable information on weather, crops and farm
productivity which attracted the farmers to these dealerships and turned them into
loyal customers.

Promotion:
Mahindra & Mahindra advertises very smartly and adequately. Mahindra &
Mahindra’s “Live young, Live free “campaign became popular in 2012. Mahindra
& Mahindra follows an aggressive promotional strategy in its marketing mix. It
showed Mahindra’s portfolio of vehicles in tough terrains of different parts of India.
They made Varun Dhawan as their brand ambassador to target the younger audience.
The advertisement made with the actor had great content and complimentary music.
Their advertising strategy is not confined to just television. Mahindra & Mahindra
do a lot of print, digital and media advertising as well. They host on ground events
like the Mahindra adventure initiative. Mahindra & Mahindra has a huge fan base
on social media. Various events and contests like the Dubsmash & win KUV100
contest are played on the social media to create buzz and for customer engagement.
It has around 17 million fans across various brands and over 40 million views on
different videos on YouTube.Mahindra & Mahindra does a lot of promotion through
road show. It is a great platform in terms of customer engagement and creating an
extraordinary experience. Mahindra organized a multiple city road show to promote
Quanto. It helped the audience relate to the holiday theme of the car. Hence, this
covers the entire marketing mix of Mahindra & Mahindra.
CASE STUDY on MAHINDRA&MAHINDRA 15

STRENGTHS:

 Strong Research & Development (R&D): M&M has a highly focused R&D
department constantly focusing on developing new products and
technologies. M&M majorly focuses on Value addition and Value
engineering (VAVE) approach, designing modularity, use of alternate
materials etc.
 Excellent products according to Indian road conditions: Mahindra &
Mahindra’s SUVs are suited perfectly to Indian road conditions especially,
Mahindra Scorpio which has been an outstanding performer for many years.
 Low after sale cost: M&M has a competitive advantage on after sale cost
since it is lower than the industry average and also have high availability of
spare parts to different parts of the country.
CASE STUDY on MAHINDRA&MAHINDRA 16

WEAKNESS:

 Geographic dependence: M&M is depended for the majority of its


revenue (over 60%) from India, which would affect its business in case of
any economic slowdown or high inflation.
 Overdependence on Automotive industry: M&M’s major part of
revenues come from its automotive business which makes it vulnerable to
any breakthrough in the industry or slowdown in the market.
 Product Recalls affects brand image: M&M has had to recall many of
its products in the recent past. For instance, In February 2015, M&M
recalled XUV500 manufactured before July 2014. Such incidents affect
the brand image of the company and consequently affect sales.
CASE STUDY on MAHINDRA&MAHINDRA 17

PRODUCT PORTFOLIO:

Mahindra XUV 300:

Presenting the stylish and thrilling new Mahindra XUV300. An amalgamation of


luxury, safety and performance, the compact SUV is the first in its segment to offer
features like 7 airbags, heated ORVMS and dual-zone fully-automatic temperature
control. In keeping with the Mahindra legacy of rugged and high-on-performance
vehicles, the SUV offers four disc brakes for easier handling, as well as best-in-
segment torque that makes acceleration and maneuverability better.
CASE STUDY on MAHINDRA&MAHINDRA 18

ALTURAS G4:

Get set to rediscover the SUV experience. The Alturas G4 is the perfect
amalgamation of beauty, comfort and strength. Exclusive features like Memory
Profile for Driver Seat and ORVM ensure you do not have to adjust your seat
every time you get in. At the same time, the 3D Around View Camera and 9
Airbags (including side, curtain & driver knee airbags) ensure provision for safety
is at its optimum. With Mercedes Benz- sourced 7 speed Automatic Transmission
adding the finishing touch, the Alturas G4 is royalty.

MAHINDRA MARAZZO:
CASE STUDY on MAHINDRA&MAHINDRA 19

Globally-developed and engineered for excellence, the Marazzo is as robust as a


shark, as it is swift, smooth, and silent. The exquisitely-crafted interiors, spacious
and quiet cabin, and rapid cooling let you enjoy the dual benefit of comfort and
luxury. At the same time, our next-gen engine manoeuvres towards a more
unconventional route, giving you greater performance with less noise. Co-designed
by Mahindra Design Studio and the legendary Italian Design House, Pininfarina, the
Marazzo is engineered in collaboration with Mahindra North American Technical
Centre and Mahindra Research Valley, Chennai.

Mahindra TUV300 PLUS:

With the All-New TUV300 PLUS, get the plus out of every drive. Experience the
powerful 2.2 liter mHAWKD120engine generating 88.26 kW (120 BHP) of power and
280 Nm of torque. Get more legroom, headroom and luxurious space to seat 9. Make
a powerful and stylish statement with its bold design and imposing stance. Sink into
CASE STUDY on MAHINDRA&MAHINDRA 20

the premium faux leather seats, enjoy a 17.8 cm touchscreen infotainment system
and experience premium interiors designed by legendary Italian design house
Pinninfarina.
CASE STUDY on MAHINDRA&MAHINDRA 21

ORGANISATIONALL STRUCTURE
CASE STUDY on MAHINDRA&MAHINDRA 22

HR POLICY:

1. Background This is an overarching policy in line with the nine principles of


the National Voluntary Guidelines proposed by the Ministry Of Corporate
Affairs and required under clause 34(2)(f) of the Listing Agreement with
SEBI. This policy is supported by a series of existing policies, and the
principles set out in this document will be reflected in new policies that would
be put in place from time to time, and as relevant to each business.
2. Objective The objective of this policy is to ensure a unified and common
approach to the dimensions of Business Responsibility across M&M and
Group companies, act as a strategic driver that will help all Group Companies
respond to the complexities and challenges that keep emerging and be abreast
with changes in regulation.
3. Scope and Applicability This policy is designed to ensure a unified and
common approach across M&M and Group companies, and shall be
applicable to all employees of M&M, as well as its Group Companies.
4. .Policy Statements At Mahindra we believe that, the Group Aspiration of
being one of the top 50 most admired global brands, can be achieved only by
doing businesses on sound sustainability principles that address the
dimensions of good governance as well as environmental and social
responsibility. Our Business Practices would therefore be governed by the
following guiding principles.
CASE STUDY on MAHINDRA&MAHINDRA 23

TOTAL PRODUCTIVE MAINTENANCE (TPM) - PRODUCTION AND


OPERATIONS MANAGEMENT AND PPC

PILLAR 1
TPM starts with 5S. Problems cannot be clearly seen when the work place is
unorganized. Cleaning and organizing the workplace helps the team to uncover
problems. Making problems visible is the first step of improvement.

SEIRI—Sort out
This means sorting and organizing the items as critical, important, frequently used
items, useless, or items that are not need as of now. Unwanted items can be
salvaged. Critical items should be kept for use nearby and items that are not be
CASE STUDY on MAHINDRA&MAHINDRA 24

used in near future, should be stored in some place. For this step, the worth of the
item should be decided based on utility and not cost. As a result of this step, the
search time is reduced.

SEITON—Organize
The concept here is that “Each item has a place and only one place”. The items
should be placed back after usage at the same place. To identify items easily, name
plates and colored tags has to be used. Vertical racks can be used for this purpose,
and heavy items occupy the bottom position in the racks.
SEISO—Shine the Workplace
This involves cleaning the work place free of burrs, grease, oil, waste, scrap etc.
No loosely hanging wires or oil leakage from machines.
SEIKETSU—Standardization
Employees has to discuss together and decide on standards for keeping the work
place/machines/pathways neat and clean. These standards are implemented for
whole organization and are tested/inspected randomly.
SHITSUKE—Self-discipline
Considering 5S as a way of life and bring about self-discipline among the
employees of the organization. This includes wearing badges, following work
procedures, punctuality, dedication to the organization etc.
CASE STUDY on MAHINDRA&MAHINDRA 25

PILLAR 2
JISHU HOZEN (AUTONOMOUS MAINTENANCE)
This pillar is geared towards developing operators to be able to take care of small
maintenance tasks, thus freeing up the skilled maintenance people to spend time on
more value added activity and technical repairs. The operators are responsible for
upkeep of their equipment to prevent it from deteriorating.

Steps in JISHU HOZEN


1. Train the employees:
Educate the employees about TPM, its advantages, JH advantages and steps in
JH. Educate the employees about abnormalities in equipments.
2. Initial cleanup of machines

 Supervisor and technician should discuss and set a date for implementing step
1.
 Arrange all items needed for cleaning.
 On the arranged date, employees should clean the equipment completely with
the help of maintenance department.
 Dust, stains, oils and grease has to be removed.
 Following are the things that have to be taken care while cleaning. They are
oil leakage, loose wires, unfastened nits and bolts and worn out parts.
 After clean up problems are categorized and suitably tagged. White tags are
place where operators can solve problems. Pink tag is placed where the aid of
maintenance department is needed.
 Contents of tag are transferred to a register.
 Make note of area, which were inaccessible.
 Finally close the open parts of the machine and run the machine.
3. Counter measures

 Inaccessible regions had to be reached easily, e.g., if there are many screw to
open a flywheel door, hinge door can be used. Instead of opening a door for
inspecting the machine, acrylic sheets can be used.
 To prevent work out of machine parts necessary action must be taken.
 Machine parts should be modified to prevent accumulation of dirt and dust.
4. Tentative standard

 JH schedule has to be made and followed strictly.


CASE STUDY on MAHINDRA&MAHINDRA 26

 Schedule should be made regarding cleaning, inspection and lubrication and


it also should include details like when, what and how.
5. General inspection

 The employees a re trained in disciplines like pneumatics, electrical,


hydraulics, lubricant and coolant, drives, bolts, nuts and safety.
 This is necessary to improve the technical skills of employees and to use
inspection manuals correctly.
 After acquiring this new knowledge the employees should share this with
others.
 By acquiring this new technical knowledge, the operators are now well aware
of machine parts.
6. Autonomous inspection

 New methods of cleaning and lubricating are used.


 Each employee prepares his own autonomous chart/schedule in consultation
with supervisor.
 Parts which have never given any problem or part which don’t need any
inspection are removed from list permanently based on experience.
 Including good quality machine parts. This avoids defects due to poor JH.
 Inspection that is made in preventive maintenance is included in JH.
 The frequency of cleanup and inspection is reduced based on experience.
7. Standardization

 Up to the previous stem only the machinery/equipment was the concentration.


However, in this step the surroundings of machinery are organized. Necessary
items should be organized, such that there is no searching and searching time
is reduced.
 Work environment is modified such that there is no difficulty in getting any
item.
 Everybody should follow the work instructions strictly.
 Necessary spares for equipments is planned and procured.
8. Autonomous management

 OEE and OPE and other TPM targets must be achieved by continuous
improve through Kaizen.
 PDCA (Plan, Do, Check and Act) cycle must be implemented for Kaizen.
CASE STUDY on MAHINDRA&MAHINDRA 27

PILLAR 3
KAIZEN
‘Kai’ means change, and ‘Zen’ means good (for the better). Basically Kaizen is for
small improvements, but carried out on a continual basis and involve all people in
the organization. Kaizen is opposite to big spectacular innovations. Kaizen requires
no or little investment. The principle behind is that “a very large number of small
improvements are more effective in an organizational environment than a few
improvements of large value.” This pillar is aimed at reducing losses in the
workplace that affect our efficiencies. By using a detailed and thorough procedure
we eliminate losses in a systematic method using various Kaizen tools. These
activities are not limited to production areas and can be implemented in
administrative areas as well.
Kaizen Policy
1. Practice concepts of zero losses in every sphere of activity.
2. Relentless pursuit to achieve cost reduction targets in all resources.
3. Relentless pursuit to improve overall plant equipment effectiveness.
4. Extensive use of PM analysis as a tool for eliminating losses.
5. Focus of easy handling of operators.
Kaizen Target
Achieve and sustain zero loses with respect to minor stops, measurement and
adjustments, defects and unavoidable downtimes. It also aims to achieve 30%
manufacturing cost reduction.
Tools used in Kaizen
1. PM analysis
2. Why-Why analysis
3. Summary of losses
4. Kaizen register
5. Kaizen summary sheet.
The objective of TPM is maximization of equipment effectiveness. TPM aims at
maximization of machine utilization and not merely machine availability
maximization. As one of the pillars of TPM activities, Kaizen pursues efficient
CASE STUDY on MAHINDRA&MAHINDRA 28

equipment, operator and material and energy utilization, which is extremes of


productivity and aims at achieving substantial effects. Kaizen activities try to
thoroughly eliminate 16 major losses.

16 Major Losses in an Organization


CASE STUDY on MAHINDRA&MAHINDRA 29

PILLAR 4

PLANNED MAINTENANCE
It is aimed to have trouble free machines and equipments producing defect free
products for total customer satisfaction. This breaks maintenance down into 4
‘families’ or groups, which was defined earlier.
1. Preventive maintenance
2. Breakdown maintenance
3. Corrective maintenance
4. Maintenance prevention
With planned maintenance, we evolve our efforts from a reactive to a proactive
method and use trained maintenance staff to help train the operators to better
maintain their equipment.

Policy
1. Achieve and sustain availability of machines;
2. Optimum maintenance cost;
3. Reduces spares inventory; and
4. Improve reliability and maintainability of machines.
Target
1. Zero equipment failure and breakdown;
2. Improve reliability and maintainability by 50%;
3. Reduce maintenance cost by 20%; and
4. Ensure availability of spares all the time.
Six Steps in Planned Maintenance
1. Equipment evaluation and recoding present status;
2. Restore deterioration and improve weakness;
3. Building up information management system;
4. Prepare time based information system, select equipment, parts and members
and map out plan;
5. Prepare predictive maintenance system by introducing equipment diagnostic
techniques; and
6. Evaluation of planned maintenance.
CASE STUDY on MAHINDRA&MAHINDRA 30

PILLAR 5

QUALITY MAINTENANCE
It is aimed towards customer delight through highest quality through defect free
manufacturing. Focus is on eliminating non-conformances in a systematic manner,
much like Focused Improvement.
We gain understanding of what parts of the equipment affect product quality and
begin to eliminate current quality concerns, then move to potential quality
concerns. Transition is from reactive to proactive (Quality Control to Quality
Assurance).

QM activities is to set equipment conditions that preclude quality defects, based on


the basic concept of maintaining perfect equipment to maintain perfect quality of
products. The conditions are checked and measure in time series to very that
measure values are within standard values to prevent defects. The transition of
measured values is watched to predict possibilities of defects occurring and to take
counter measures before hand.

Policy
1. Defect free conditions and control of equipments;
2. QM activities to support quality assurance;
3. Focus of prevention of defects at source;
4. Focus on poka-yoke (fool proof system);
5. In-line detection and segregation of defects; and
6. Effective implementation of operator quality assurance.
Target
1. Achieve and sustain customer complaints at zero;
2. Reduce in-process defects by 50%; and
3. Reduce cost of quality by 50%.
Data Requirements
Quality defects are classified as customer end defects and in house defects. For
customer- end data, we have to get data on:
CASE STUDY on MAHINDRA&MAHINDRA 31

1. Customer end line rejection; and


2. Field complaints.
In-house, data include data related to products and data related to process.

Data Related to Product


1. Product-wise defects;
2. Severity of the defect and its contribution—major/minor;
3. Location of the defect with reference to the layout;
4. Magnitude and frequency of its occurrence at each stage of measurement;
5. Occurrence trend in beginning and the end of each production/process/changes
(like pattern change, ladle/furnace lining etc.); and
6. Occurrence trend with respect to restoration of
breakdown/modifications/periodical replacement of quality components.
Data Related to Processes
1. The operating condition for individual sub-process related to men, method,
material and machine;
2. The standard settings/conditions of the sub-process; and
3. The actual record of the settings/conditions during the defect occurrence.
CASE STUDY on MAHINDRA&MAHINDRA 32

PILLAR 6

TRAINING
It is aimed to have multi-skilled revitalized employees whose morale is high and
who has eager to come to work and perform all required functions effectively and
independently. Education is given to operators to upgrade their skill. It is not
sufficient know only ‘Know-How’ by they should also learn ‘Know-Why’. By
experience they gain, ‘Know-How’ to overcome a problem what to be done. This
they do without knowing the root cause of the problem and why they are doing so.
Hence, it becomes necessary to train them on knowing ‘Know-Why’. The
employees should be trained to achieve the four phases of skill. The goal is to
create a factory full of experts. The different phase of skills is:
Phase 1: Do not know.
Phase 2: Know the theory but cannot do.
Phase 3: Can do but cannot teach.
Phase 4: Can do and also teach.

Policy
1. Focus on improvement of knowledge, skills and techniques;
2. Creating a training environment for self-learning based on felt needs;
3. Training curriculum/tools/assessment etc. conducive to employee revitalization;
and
4. Training to remove employee fatigue and make work enjoyable.

Target
1. Achieve and sustain downtime due to want men at zero on critical machines;
2. Achieve and sustain zero losses due to lack of knowledge/skills/techniques; and
3. Aim for 100% participation in suggestion scheme.
CASE STUDY on MAHINDRA&MAHINDRA 33

Steps in Educating and Training Activities


1. Setting policies and priorities and checking present status of education and
training;
2. Establish of training system for operation and maintenance skill upgradation;
3. Training the employees for upgrading the operation and maintenance skills;
4. Preparation of training calendar;
5. Kick-off of the system for training; and
6. Evaluation of activities and study of future approach.
7.
CASE STUDY on MAHINDRA&MAHINDRA 34

PILLAR 7

OFFICE TPM
Office TPM should be started after activating four other pillars of TPM (JH, KK,
QM, PM). Office TPM must be followed to improve productivity, efficiency in the
administrative functions and identify and eliminate losses. This includes analyzing
processes and procedures towards increased office automation. Office TPM
addresses twelve major losses. They are:
1. Processing loss;
2. Cost loss including in areas such as, procurement, accounts, marketing, sales
leading to high inventories;
3. Communication loss;
4. Idle loss;
5. Set-up loss;
6. Accuracy loss;
7. Office equipment breakdown;
8. Communication channel breakdown, telephone and fax lines;
9. Time spent on retrieval of information;
10. Non availability of correct on-line stock status;
11. Customer complaints due to logistics; and
12. Expenses on emergency dispatches/purchases.
Office TPM and its Benefits
1. Involvement of all people in support functions for focusing on better plant
performance;
2. Better utilized work area;
3. Reduce repetitive work;
4. Reduced inventory levels in all parts of the supply chain;
5. Reduced administrative costs;
6. Reduced inventory carrying cost;
7. Reduction in number of files;
8. Reduction of overhead costs (to include cost of non-production/non-capital
equipment);
9. Productivity of people in support functions;
10. Reduction in breakdown of office equipment;
11. Reduction of customer complaints due to logistics;
12. Reduction in expenses due to emergency dispatches/purchases;
13. Reduced manpower; and Clean and pleasant work environment.
CASE STUDY on MAHINDRA&MAHINDRA 35

PILLAR 8

SAFETY, HEALTH AND ENVIRONMENT


Target
1. Zero accident,
2. Zero health damage, and
3. Zero fires.
In this area focus is on to create a safe workplace and a surrounding area that is not
damaged by our process or procedures. This pillar will play an active role in each
of the other pillars on a regular basis.

A committee is constituted for this pillar, which comprises representative of


officers as well as workers. The committee is headed by senior vice President
(Technical). Utmost importance to safety is given in the plant. Manager (safety) is
looking after functions related to safety. To create awareness among employees
various competitions like safety slogans, quiz, drama, posters, etc. related to safety
can be organized at regular intervals.

Today, with competition in industry at an all time high, TPM may be the only thing
that stands between success and total failure for some companies. It has been
proven to be a program that works. It can be adapted to work not only in industrial
plants, but also in construction, building maintenance, transportation, and in a
variety of other situations. Employees must be educated and convinced that TPM is
not just another ‘program of the month’ and that management is totally committed
to the program and the extended time frame necessary for full implementation. If
everyone involved in a TPM program does his or her part, an unusually high rate
of return compared to resources invested may be expected.
CASE STUDY on MAHINDRA&MAHINDRA 36

SUPPLY CHAIN MANAGEMENT

Supply Chain Management (SCM)

Fulfillment State Sort End


Vendor State City Store custome
s Centre Centre(SC Centre
Distribution
(FC) FC ) r
(DC)/SC
CASE STUDY on MAHINDRA&MAHINDRA 37

Logistics Management

One of India’s largest


INR 26+ revenue
1,900+
Bnwork force across
470
3 client and operating
India
+ locations
Divisions
Supply: Chain
People Transport
Management
Solutions
Subsidiaries
Lords :Freight (India) Pvt. Ltd.
2 x2 Logistics Pvt.
Ltd.

MLL Bhiwandi 5
warehouse

Mahindra Logistics provides third-party logistics services that includes people


transportation, warehousing, distribution, brokerage and supply chain. Mahindra
Logistics was founded in 2000. Mahindra Logistics' headquarters is located in
Mumbai, Maharashtra, IN 400062. It has raised 33.1M in 1 round. The latest round
was in Mar 2014. Mahindra Logistics' primary investor is Kedaara Capital
CASE STUDY on MAHINDRA&MAHINDRA 38

Investment Managers Limited. Mahindra Logistics' CEO, Pirojshaw Sarkari,


currently has an approval rating of 69%. Mahindra Logistics has an estimated 5.0K
employees and an estimated annual revenue of 1.0B.
CASE STUDY on MAHINDRA&MAHINDRA 39

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