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Manufacturers Association of India
 
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Vol. 8 No.7 Oct/ Nov/Dec '1999 - Jan/Feb '2000



National Activity

INTERNATIONAL 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 1999

MEETING WITH MR. ANAND MAHINDRA: 11 FEBRUARY 2000, MUMBAI

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 a total
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 M&M

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 engineering.

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.