Weekly Progress Report

5th MAY-

Joining and registration process in the company followed by department allocation. An

orientation lecture was also organized by the company.

7th MAY- reported at the supply chain management deptt. Reporting authority Mr. Rajeev Budhiraja
(DDVM-MT2). MT-2 is the materials department which deals with materials of chasis. These are classified as: 1. 2. 3. 4. 5. Fasteners Wheel and wheel hub Tyres Breaking system Pipes(CNG and fuel pipes)

Organizational structure of the deptt. :

R. Budhiraja(DDVM)

Vivek Arora(Mgr.)

1. Deepan Tuteja 2. Sandeep Dattan 3. Ankur saluja 4. Pranav Gupta

8th MAY:

I was supposed to undergo an orientation session with the deptt under every engineer

looking after various parts. Mr. Sandeep Dattan who is currently the direct buyer for fasteners. Key learnings: 1. Understood the working of the deptt and the part development process for finalizing new vendors in the market. 2. A general overview of the part (fasteners) with a study on the important aspects such as: manufacturing, quality issues, designing issues, etc.

9th MAY: repoted to Mr. Ankur Saluja- Tyre division Key learnings: 1. Basically all the suppliers are top shots in the market and are proprietory suppliers to MSIL. Thus have a kind of monopoly in supply. 2. Here the suppliers are generally the trend setters and negotiating on the basis of costs are very difficult. 3. Manufacturers prefer to sell tyres in the market as the same part is sold to the company at almost 1/3 of the price but as there are prospective of market growth and business expansion, they have to supply tyres to the company. 4. This is mainly because according to a survey being conducted in the market most of the customers prefer to buy tires of the brand which is fitted in the car when it was bought from the showroom. So, this way the supplier has an opportunity for increasing its market share. 5. Buying in the tires division accounts for 41% of the total buying in the supply chain deptt.

10th MAY:
Key learnings: 1. 2. 3. 4.

Reported to Mr. Pranav Gupta- looks after the buying of brakes

Deals with the suppliers of brakes, calipers, Tandem Master cylinder and the actuation system. There are only 3 main suppliers of the brakes in the company. MT-2 has a total annual buying of 2107 crores. There are various critical parts involved and thats why the suppliers are very limited in case of the braking system.

11th MAY: Reported to Mr. Swadeep tuteja- delas in fuel pipes,CNG pipes
Key learnings: 1. Pipes are being used in various stages and engine parts also. Hoses are also used their procurement also comes under this deptt only. 2. Part development technique are generally the same for every parts starting with the issue of drawing by the engineering and RRFQs issued to the SPC and then followed by the issuance of RFQs to the vendors. Quotes are received and then compared and further way to negotiations is done by tech valuation meetings to reduce the cost further and fresh quotes are received from the supplier. Further the supplier is finalized and the letter of intent is issued by the supply chain deptt. Part development is carried out followed by trial runs of the parts and finally the production is started.

12th MAY: had an off at the plant as the deptt people had gone for the vendor conference held at
Bangkok, Thailand.

14th MAY: started with the normal working with the deptt.
Key learnings: 1. Recently, as a measure undertook by MSIL on cost reduction some 6-8 months earlier, Inner Part Localization was started. The project under which I was supposed to work was Inner Part Localization of the imported fasteners. 2. Under the localization drive, all those parts which were earlier imported from Japan were costing heavily to the company, so as a measure to bring down the costs of the parts, their localization was initiated. 3. Currently the localization is done on a large scale in the fasteners diuvision. 4. Reasons for not localizing these parts were technological constraints and the capacity issues involved. 5. In the first phase, 300(approx) RFQs were issued and till date localization for 200(approx) has been done.

15th MAY: key learnings:

1. I got a chance to go through the feedback forms of the vendor conference being held at Bangkok and the database was generated to evaluate the responses of various vendors. 2. It was seen that the company continuously evaluates and compares the ratings given by its vendors and integerates all the possible improvements in its working procedure. 3. Accompanied my industrial guide Mr. Sandeep Dattan to a new supplier SCD meeting where a ppt was made by a new supplier called Metal One which is a Japanese supplier(manufacturer) and routes the material through various countries like Taiwan, China, Japan and Canada to other countries of the world. The proposition was that Japanese parts have almost zero defects whereas the current supplier of the same component i.e, Pooja Forge has 300 defects in a million(300ppm). The new supplier proposes to give 5ppm quality with an increased cost which will still be lower than the Japanese part. 4. Cost and critical analysis of the part is being done, keeping in view the time constraints, to develop a plan that whether further progress should be made in this direction or not.

16th MAY:

Key learnings:

1. 2. 3. 4.

Got real time chance to peek into the current data. RFQs of 350 have been raised out of which the source selection has been made for 306 parts. An estimated saving of 200 crores is expected by following this localization drive. I.R= L-1 supplier price/current FOB price) and it has to be less than 0.45 only then the supplier can be selected as a source. 5. Caparo isnt the current supplier as it hasnt got substantial business from Maruti. 6. Regarding the money flow, it flows in batches e.g : daily invoicing is done w.r.t the materials being received on daily basis and after a week, the payment is cleared. The invoice goes to the accounts deptt and then gets cleared in 7-10 days.

17th may: Key learnings

1. A vendor conference which was held at Bangkok, a feedback form was made to be filled by the vendors and the remarks received were analysed quantitatively by assigning various numerical values against each option and then the total score was evaluated on various aspects like business profitability, communication, adherence to agreements, etc. all the results was plotted on the excel sheets/graphs individually on a frequency distribution curve. Top 10 scorers and the least 10 scorers were analysed to know the conditions and the reasons for these and apply any improvement techniques.

18th MAY: Sundram Fasteners Limited having a substantial business with Maruti, had come to the
plant to discuss the resource planning of some of the critical parts. 1. Accompanied my industrial guide and witnessed the necessary issues that were to be addressed. A cognizance was done of the day to day working of the company especially of the SCM deptt. Inspite of the ERP in place which looks after the planning of the resource, a follow up at the personal level is always in place to expedite the receiving of the material at the right time. At present, Maruti is dealing with only 5-6 major suppliers which are supplying different parts to the company. Daily working of the company includes the data management, supplier feedback, follow-up , integration with the planning and production control department, looking after the daily schedule system. Final approval sheet has a format called ringi approval. RFQs are to be issued for only L1 suppliers . Child parts known as L2 parts do not have any RFQ to be issued.