Scorpio-the Bottom up

Programme
• India’s First Indigenously Developed SUV
• It Was Launched In June 2002.
• M&M Started Work On Project Scorpio From
1997.
• It Was Designed To Target Urban Market To
Fulfill The Demand Of Passenger Car As Well As
SUV Fans And Having Comfort And Elegance
• The UV’s Design Fall Between Passenger Car
And SUV Called “Car Plus”
 JOURNEY OF M&M
• Set up in 1945 as the manufacturer of general
purpose utility vehicles.
• Later diversified into manufacturer of Tractors and
light commercial vehicles (LCV)
• Further diversified their business into trade and
finance related services, information technology
and infrastructure development through joint
venture and alliance.
• By the end of 1960 company began manufacturing
vehicles indigenously .
• Its production unit are Mumbai, Nashik,Igatpuri
(Maharasatra) and Zaheerabad (A.P.)
 Why the project launched ?

 From the year 1992company faced tremendous

competition specially from Telco.
The sale from 1994 to 1997 was

Tata Sumo- 100000 units and M&M UV- 26321 units

 M&M’s vehicles are more suitable for rough terrain than
on urban road, works against it
 Took benefit of the small size UV market which is 15% of
total vehiclemarket compared to Assian average (40%)D
DEVELOPMENT OF
INFRASTRUCTURE
•Set up plant at Nashik at a cost of $120 million and capacity was
40000 units.
• Three new world class lines were set up at the plant of manufacture
component.
• A paint shop ,collaboration with Durr of Germany.
• Company developed integrated design and manufacturing (IDAM)
system.
•Entire system of production was fully automated and company have
well trained workers.
 Development of Scorpio
 Made survey and collect customer preference and
perception for designee and feature .
 Introduction of Quality Function
Development(QFD) Process.
 Created a benchmark according to world class
SUV’s
e) Big size
f) Latest technology
g) Affordable Price
h) Have thrill and passion in driving
i) Have Luxury
j) International vehicles define image
 How Supplier Were Involved?
• Company Involve Its Suppliers From Begning To
End.
• Company Colaborated With Suppliers On Product
Design And Development.
• Company Make Them Partners In The Scorpio
Project.
• The Most Important Contact For
Petorl Engines–With Renault Of France
Diesel Engines -With AVL Of Austria
• M&m Only Gave Specification About What They Wanted
From The Vendors & Suppliers And Responsibility For
Overall Quality It One Of The Reliable Suppliers.
• Company Decentralized Its Vendor System And Result
Better Management Resources And Higher Quality .
• Company Gave Complity Autonomy Also Allowing
Them To Employ On Conventional And Unproven Process
And Did Not Change Its Product Specification Constantly.
• Company Did Not Make Its Suppliers Wait.
• Suppliers Setup Their Facility At Companies Plant.
 The Team Development And Function
•The Team Was Having 120 Members Of Average Age 27 Years Of
19 Teams.
•Apart From Traditional Approach ,They Worked Crossfunctionaly.
•The Team Had Holistic View.
•Teams Were Made Responsible For Cost , Quality And
Performance.
•Cost Target Was Given To Each Team,called ‘Designed To Cost’.
 Testing And Validation
• 74 Vehicles Made For Testing .

• Components Were Tested With Its Combination.

• Passed Through Nova-c.

 The Success Story Of
Launching Scorpio
• It Was Launched With Three Models.
• 1000 Units Were Booked Within The Launch Of First
Week.
• In 2003 Companies Income Rose By 22%.
• Breaking The Tradition Of UV,Scorpio Is Being Used
Primarily As Personal Vehicle.
• Survey In 2004 Shows That Scorpio Byers Were Satisfied.
• It Extensively Tested,so It Has No Run Time Defect After
Launching In Market.
 Criticism
• Some Companies Said That M&M did Not Have
The Capacity To Produce Vehicles Inhouse .

• No Crash Testing.

• M&m Did Not Re-designed Its Product (Scorpio).

CONCLUSION-

 Thus ‘Scorpio’ has proved as a Milestone for M&M and the

Indian Automobile Industry.It has given a unique place To M&M
in Indian market because ,It was innovated with High quality,
Reliability,flexibility, Style , Driving Comfort etc. In short it
offered a customized product. hence, again Operation’s
components: Time, quality & technology made A Success
story.