ZOOM MOTORS

CAPSTONE PROJECT

SUBMISSION BY:
AKSHAY KUMAR PATI B 07
AMAANI DEWAN B 08
ISHITA RAI B 23
NIKITA NEGI B 34
SMRITI DUREHA C 52
ARUN KUMAR B 74
SUBMISSION TO: SOHAM B 60
PROF. NAVIN VERMA SHUBHAM B 55
TANISHA MALHOTRA B 79
MAYURI BADE B 82
 ZOOM MOTORS
◦ Owned by Mr.VM Lal
◦ Sells “Arrow” brand motor bikes
◦ Based out of Bangalore
◦ GROWTH :20 Bikes per day in 2010 to 4000 Bikes per day in FY
2018-19
◦ Plant Location: Bangalore. Only assembly, painting and testing of
bikes. Receives assembled Engine from subsidiary
◦ Gets the Bike frame, shock absorbers and hardware from suppliers.
◦ Kanti fabrications :Supplier of bike frames which has a small and
rather unprofessional setup. Long History
◦ Supplier of shock absorber: upcoming and rapidly growing
technology-centric startup, good professional leadership.
◦ Warehouse: Export shipments by sea, import shipments by road
 UNIQUE SELLING POINT OF ZOOM
MOTORS
◦ North America
Highly Customized
Excellent Margins.
◦ Europe
Highly Customized
Excellent Margins
◦ Africa
Low Price
Low HP
◦ India
Low end Bikes- High Demand
High end bikes- medium demand
 US AND EUROPEAN SALES TEAM
Issue: Unacceptable delivery time of 4 weeks to Europe and US

Causes
 Unprofessional setup of M/S Kanti Fabrications
 Warehousing
 Only one sales and service facility in entire US market

Effects
 Improved product quality
 Reduced lead time
 Smoother operations

Recommendations
Long Term
Short Term
 Apply lean thinking  Synchronizing ordering, manufacturing and
 Value stream mapping shipping
 Design a future state map  Levelling the demand.
 Allowing suppliers to order materials against
your forecast
 Get the supplier to create a dedicated line.
 Issue: A better service support in terms of spare part availability

Causes
Improper demand forecasting
Small and unprofessional setup of the suppliers
Combined Procurement and Inventory Management
limited supply chain visibility
 No advanced analytics support to maintain the balance between cost, service level, and
profitability.

Effects
Difficulty in assessing optimal inventory levels
Trading partner collaboration challenges
Delay in customer service

Recommendations
Demand Forecasting
Critical and high value spare parts to be made available in a nearby warehousing location to reach the site in a fastest and quickest time
 Proper coordination and problem solving along with logistics arrangements
Repositioning and paying special attention to balancing cost, service levels, and profitability
 Issue: Customers expects a Zero Defect Quality in US and European countries
Cause Analysis
 Customers demand for high customizability
 Smaller and unprofessional setup of M/S Kanti Fabrications
 Shock Absorber company is in start-up mode

Zero Defect Quality

 Zero defect along with zero wastage
 Six Sigma Standard
 Higher Customer satisfaction and loyalty

Recommendations
Short term
 Enhance quality control to detect failures Long term
  Initiate Six Sigma techniques for reducing wastage and Improving
Provide extended warranty support for 1yr
Quality
 Outsource the bike frame from a better supplier  Training of employees for TQM
 Increase the Quality standard for the shock absorber  Enhanced quality standard for the suppliers
 Introduce Kaizen (Continual Improvement) in Quality Control Unit
 Issue: Dissatisfaction with the use of wooden pallets amongst European customers

Challenges
 With 670 million new pallets entering the supply chain each year, selecting the one that’s right can be a
challenge
 Knowing the environment through which the product will travel is essential to making the right pallet
decision.
 What kinds of vehicles will be moving the pallet load will play a major role in its selection.
Cause Analysis
 Due to the shape and form of a wooden pallet, it's the perfect raw material to make a straightforward and cheap bike rack.
 Ease of Assembling.
 There are 5 basic interactive parameters that determine pallet suitability for a given application (Strength, Stiffness, Durability, Functionality & Purchase
Price).
 These parameters are interactive, and optimizing just one (i.e. minimizing price) will impact the others. The proper balance of these 5 parameters will vary,
depending on your specific product and distribution environments.
Recommendation
Long term Short Term
 Metal, particularly aluminum, pallets have been around for a long time.
 Use of plastic wallets instead of wooden pallets.
 Al or Metal Composite Pallets are used for shipping specialty items.  Presswood pallets are particularly attractive for
For Expensive materials transport Metal Based Pallets should be used. shipping overseas but are relatively cheaper than
CM (1).potx
metal composite pallets
 AFRICAN SALES LEADER
Issues

 Fluctuating Demand
 Pre Established European Brands

Need

 Cost effective Supply chain network.

 Cater the growing market for low hp bikes.

Recommendation

 Setting up of strategic distribution centres

1.) South Africa - Sekondi-Takoradi - West Africa
2.) Kenya - Mombasa- East Africa
3.) Ghana - PORT OF Durban - South and Centre of Africa
 Adopt Assemble to order Philosophy
 Buying of certain parts from African market to save on shipment cost
 INDIAN OPERATIONS TEAM
Issue: Off the Mark Accuracy of Sales Forecast
Cause Analysis
No formalized individual deal or funnel reviews
Poor CRM adoption and analytics
A lack of documented actions of sales process
Assumption that past trends will continue

Effects of Accurate Sales forecast

 Inventory Management

forward planning of financial needs, warehousing, transport facility.

Prevents production overtime and idle time in manufacturing
Master plan or budget-based sales forecast

Recommendation
Long term Short Term
 A Cross- functional team
 Document the forecast changes each month over a 1-2-year horizon.
 Ensure Sales Reps Maintain Accurate CRM Data
 Use of predictive analysis instead of descriptive analysis  Understanding of marketing funnel
 CRM as the system of record for pipeline data  KPIs and compensation linked
 Use of data science to augment human effort
 Issue: Unable to absorb changes in plan within 8 weeks.

Cause Analysis
Lousy delivery schedule of spare parts ( Kanti Fabrications)
Poor CRM adoption and analytics.
Poor asset management ( number of machines)
Inaccurate sales forecast.
Outdated planning software( Legacy Planning.)

Effects
Unable to meet an increase in demand. Losing revenue.
Long delivery time leading to irate customers.

Recommendations
Short Term
Long term  Need for Buffer Inventory: For times when the customer
Use of CRM to increase process flexibility. demand pattern changes
 Need for Safety Inventory: For times when internal
Integrate Concurrent planning in the company in order to streamline the OP
constraints and inefficiencies derail delivery schedule.
and S process.  Use software like NetSuite, Sum tracker to manage
 Document the forecast changes each month over a 1-2-year horizon inventory.

Finish to order: Pull strategy should be applied.  Have tie ups with both the companies to provide a standard
number of frames and shock absorbers .
 Issue: Resolve the reliability issues in shock absorber once and for all

Cause Analysis
 Due to the uncontrolled flow of fluid caused by worn out piston seal inside the cylinder, even slight braking and turning can cause the shocks to overreact,
posing a threat of losing control.
 Nose diving leads to additional weight being shifted to the front of the car which keeps the
vehicle in motion.
 The seals can become brittle or torn, shock bent from an impact, wear out of smaller
parts inside the shock
 Faulty dampers

Effects
 Significant wear to the wheel suspension, wheel bearings and springs 
 Longer stopping distance, earlier aquaplaning 
 Increased risk of skidding in corners or avoidance maneuvers 
 Lack of road grip on rough roads and cambers 

Recommendation Long term

Short term  Improve quality standards for the suppliers
 Auto service center for inspection
 Shock absorbers must be replaced in pairs axle by axle. 
 Regular quality checks and testing
 Regular chassis tests in the garage
 ISSUE: On-time Delivery And Quality Of Frames Concerns

Cause Analysis
 Unprofessional
 Contract does not include a penalty clause
 Lack of supervision/monitoring
 Environmental, Technical, Manpower issues

Effects
 Increase reputation and broaden relationships
 Cost-effective
 Smooth Connectivity between business processes
 Minimizes waste and operates at high levels of productivity

OTD Graph
Recommendation
On-time delivery performance Improve quality of frames
 Improvement in Communication Matrix of Company  Quality standards to be given to supplier

 Frequent Supply of Product  Give alternate action plan to suppliers

 Shipping Product on off-peak days  Supplier development projects to be taken
 On-time delivery metric to measure efficiency of SCM by the company