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1950 collaborated with Willys & produced the JEEP Because of the introduction of SUMO(TATA) and QUALIS(TOYOTA) the market of M&M fall down Telco introduced Sumo in 1994,and this threatened M&M. M&M realized the potential of UVs in the urban market and set up project Scorpio in 1997 .
Indias First Indigenously Developed SUV It Was Launched In June 2002. M&M Started to Work On Project Scorpio From 1997. It Was Designed To Target Urban Market To Fulfil The Demand Of Passenger Car As Well As SUV Fans And Having Comfort And Elegance The UVs 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 were in Mumbai, Nashik, Igatpuri (Maharasatra) and Zaheerabad (A.P.)
Took benefit of the small size UV market which is 15% of total vehicle market compared to Asian average (40%)
DEVELOPMENT OF INFRASTRUCTURE
Set
was 40000 units. Three new world class lines were set up at the plant of manufacture component. A paint shop ,collaboration with 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 collected customer preference and the perception for designee and feature . Introduction of Quality Function. Development(QFD) Process. Created a benchmark according to world class SUVs 1) Big size 2) Latest technology 3) Affordable Price 4)Have thrill and passion in driving 5) Have Luxury 6)International vehicles define image
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 Completely, 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.
27 Years Of 19 Teams. Apart From Traditional Approach ,They Worked Cross functionally. 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
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 Operations components: Time, quality & technology made A Success story.