| National Activity
SYMPOSIUM : AUTOMOTIVE ELECTRONICS & ALTERNATE ENERGY
VEHICLES: 19 - 21 NOVEMBER, 1999
ACMA supported the international symposium
organised by the Institution of Electronics and Telecommunication
Engineers, Kanpur and the Indian Institute of Technology,
Kanpur, held at IIT, Kanpur.
Mr V K Mehta, President ACMA, was invited to speak
at the valedictory on this occasion.
ACMA Seminar on Automotive Industry
material recycling: 14 December 1999
Mr. B. Bhanot addressing the delegates
ACMA Interaction with Mr. Jagdish Khattar M.D.
Mul at Hotel Taj Mahal, New Delhi 17 December
MEETING WITH MR. ANAND MAHINDRA: 11 FEBRUARY
Mr. Anand Mahindra, Managing Director
Mahindra & Mahindra Ltd, thanked ACMA for organising
a visit by its Executive Committee Members.
M & M's philosophy was to start
with changing the mindsets of people in addition to
processes. The very first change was the term "customer"
not to be seen as the "final user" only, but
include people and departments who build value - thus
vendors were also customers.
Speaking of the Tractor Division, he
said, that M & M was the largest manufacturer in
India and India was the largest tractor market in the
world. The company was also exporting Tractors to the
large US market and for the first time Korean made tractors
were being sold in America under an Indian brand name,
that of M & M.
Referring to the Automotive Division,
Mr Mahindra said that in order to survive the big global
auto-mergers, the Company had planned to get into a
niche market for automotive products in order to build
volumes and was creating new networks with component
suppliers. The company was focusing on creating "knowledge
base" for Value Addition- focus on product innovation,
product development at an "Indian cost". Hence,
a comparatively lower volume (compared to large, world
class volumes) would not present a barrier to the entry
of M & M into new automotive products.
| Benefits to M &
M would come with the Company's transformation into
e-business company. 60 % of purchase decisions taken
by US customers today, were on the internet. Benefits
would also accrue by bundling more elements of servicing
in what the company offered and providing complete
transport or service solutions rather than just
selling vehicles. This new project was making good
headway. Benefits from financial Services with KOTAK.
Benefits from joining the global Exchange Portal
of General Motors for procurement, being implemented
by Commerce One.
ACMA with Mr Anand Mahindra, Managing Director
The component industry, he suggested,
would do well to join this portal for the process of
component procurement would totally change over the
next few years with only one or two Portals emerging
successfully. Benefits from setting up a product development
centre for R&D to develop the critical mass required
in the area of engineering. This Centre was expected
to become self-sufficient. Benefits from investing in
a small but very bright organization capable of re-designing
a complete engine in 3 months through a process of reverse
The initiatives taken by the tractor
and automotive divisions on BPR (Badlo Purane Raste)
and Strategic Sourcing had amazing Results - growth
of production by 130 % (68 vehicles per day to 150),
no overtime; Inventory reduced from 64 days to 16 days;
Floor space utilization improved by 40%; direct to indirect
labour ratio improvement and reduction in the total
number of mazdoors. M & M had also focussed on QS-9000,
with TPM tie -up with Mr Yamaguchi of JIPM targetting
Zero Breakdown, Zero Defects, Zero Accidents and Kaizen
all the time. The quest for quality and progress had
M & M implementing KANBAN, Bar coding, Poka Yoke
and Web Based EDI where common vendors of the tractor
and automotive divisions were already involved. The
Company's Fast Forward work with Mckinsey was to upgrade
dealership system & processes for better customer
satisfaction. As a result of this project Dealers' business
increased by 600% and 1000% increase was seen in sales
of spare parts - Customers could get their vehicles
serviced/repaired even during after office hours between
7 pm and 6 am.
M & M is aiming for the TPM award for 2001.