A Case Study Report ON "Mahindra and Mahindra": Presented by
A Case Study Report ON "Mahindra and Mahindra": Presented by
ON
PRESENTED BY
Dr.G.R.Naik
2019-20
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CONTENTS
1.HISTORY
2 .MIELSTONE
4. MARKETING MIX
5.STRATEGY
6. ORGANISATIONAL
STRUCTURE
7. PRODUCTS
8.HR POLICY
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HISTORY
J C MAHINDRA:
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.
K C MAHINDRA:
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.
ANAND MAHINDRA:
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.
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VISION
The vision of the company is to be the ‘Leading independent player in the global
market&Transmission.
MISSION
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.
Industry: Automotive
Website: www.mahindra.com
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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
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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
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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.
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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.
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WEAKNESS:
PRODUCT PORTFOLIO:
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:
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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
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the premium faux leather seats, enjoy a 17.8 cm touchscreen infotainment system
and experience premium interiors designed by legendary Italian design house
Pinninfarina.
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ORGANISATIONALL STRUCTURE
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HR POLICY:
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
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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.
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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.
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
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.
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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
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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.
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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).
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:
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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.
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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.
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PILLAR 8
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.
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Logistics Management
MLL Bhiwandi 5
warehouse