INTRODUCTION

In 1982 with the help of govt. of India, Maruti entered into a joint venture with Suzuki motors of Japan. Plant was established at gurgaon in haryana. The entire supply chain needs to be monitored to get the best quality, so that they establish Maruti Center For Excellence(MACE)

As much as 80% of an average maruti suzuki vehicle is made of vendor supplied part.

Maruti Suzuki has 300 odd vendors.

Maruti Suzuki established MACE in 2004 with the company and 21 vendors pooling funds for seed money.

Maruti classifies its vendors as Tier-1 and Tier-2 while around 300 Tier-1 vendors supply components a directly to the company, a handful of Tier-2 vendors supply assembly parts of various components to the Tier-1 vendors. Certain child parts are got from Tier-3 vendors. Maruti has a 500 employees strong department to manage relationship with its suppliers including looking at function such as supply chain management, engineering, quality control, human resource etc.

Quality check process

Although the quality check at the Maruti plant, it is impossible for manufacturers to check all the components going to assembly line. So, the importance given to monitoring facilities of the vendors increases.

Steps for quality improvement.

There is two steps process at the maruti plant to improve the quality.

1 Marutis own shop floor. 2 vendors end.

Marutis own shop floor.

Marutis production system in the country draws the best practices of parent company SUZUKI motors. Lean manufacturing: it stands for man, machines, materials, and methods. 4Ms. For the improvement of yield. 1 altering stamping technique. 2 maximise steel sheet utilisation

In last five years MACE has channelized all its efforts in upgrading Tier-I and Tier-II vendors, it was noticed that both were not getting similar initiatives.

MACE counselors provide suggestions on manufacturing process upgradation.

MACE arranges knowledge session for both Tier-I & Tier-II, and this cluster approach was very effective.

When the solution is implemented, MACE counselors visit the vendors factory again. With the relationship between Maruti and its vendors has reduced the rejection rate.

Motherson Sumi system started its association with Maruti company for supplying wiring harness and now it is supplying grills, door handles, mirrors, lighting system and cutting tool used in machine shop.

If maruti were to bring a new hatchback in the car market within the next few months. Tier-I vendors and tier- II vender run their factories for high-volume production trials, that problems arising on each assembly line can be identified. Because everybody in the chain work closely, all of us are well-prepared to meet deadlines. Now we set targets for next three to five years.

Support of manufacturers and tire 1 suppliers are indispensable to the existence of tier 2 suppliers. Started with MACE it annul rejection rate was 4 % . This translated in parts per millions of 0.0004 and the company kick-started its 0 PPM drive by implementing Marutis Qualitiy Circle (QC) in its factory. The focus then shifts to using low-cost automation. The company runs two drill machines on one motors.

This initiative resulted in a 50 per cut in the factorys electricity consumption. Today close to 22 Tire=II suppliers maintain 0 PPM) rejection. Improving your bottom line while enhancing long term customer satisfaction and the lifetime value your customer.