BPR of Mahindra and

Mahindra Limited
Devarsh Raval
Enroll no. 1725006, LY MECH A
For BPR Elective IA-1
Under guidance of Prof. NS Chandrashekhar
Introduction
• Started in 1945 by J C Mahindra & K C Mahindra
• In Oct. 1947 first batch of 75 jeeps released for Indian market
• Diversified business in other segments viz. hotels, financial services,
auto components, information technology etc.
• In 1994 a major restructuring exercise was initiated as part of a BPR
program.
• The company was regrouped in six distinct clusters of related
businesses.
• Current Price in the stock market at Rs 472
• Automotive divisions ( UVs & LCVs)
• Farm equipment division (tractors and farm implements)
• In 1996, Nagpur and Kandivali plants received ISO 9001
• In 2001 it was 4th largest manufacturer of tractors in the world
• Tractors were exported to countries viz. US, SA, Zimbabwe, Nepal, Sri
Lanka and most of the European countries
• Fig- Indian Auto market share
Need of BPR
• Highly under-productive, militantly unionized, and bloated workforces.
• The company had over the years been rather lenient towards running
the plants and had frequently crumbled under the pressure of union
demands.
• The work culture was also reportedly very unhealthy and corruption was
widespread in various departments.
• Decision to focus on enhancing productivity and delivering world-class
quality at the least possible cost.
• Ambition to become the largest tractor manufacturer in the world.
• The three C’s (customers, competition, change)
Barriers
Fig. Relationship between potential types of barriers and potential
causes of barriers
Barriers by labor unions
• M&M's management was not surprised to learn that the unions went
on a strike.
• However, the management made it clear that it would not succumb
to union demands.
• Soon, the workers were surprised to see the company's senior staff
come down to the plant and work in their place.
• After five months the workers ended the strike and began work in
exchange of 30% wage hike and BPR gained momentum.
 Implementation
Stage 1:- Restructuring of M&M Group
Regrouped in six distinct clusters of related businesses as SBU each
headed by a President
• Infrastructure
• Trade & Financial services
• Tele communication
• Automotive components
• Automotive Div (UV, LCV, 3 wheelers)
• Farm Equipment division (Tractors)
Stage 2:- Re-engineering the entire layout & processes ofworking
1. Cellular Manufacturing
• Multi-tasking through Multi-machine manning
• Reduction in non-productive Activities
2. Implementation of TQM and Kaizen
3.Formation of 3 cross functional teams
• Horizon 1: Improvement in existing Product
• Horizon 2: Upgradation of existing Product
• Horizon 3: Development of new Product
Results
• Around 100 officers produced 35 engines a day as compared to the
1200 employees producing 70 engines in the pre-BPR days.
• Igatpuri Plant: Employees declined by 400 but productivity went up by
125 engines per day
• Nasik Plant: 125% improvement in productivity
• Reduction in employee costs • 1994: 12.4% • 1996: 10.1%
• Improve plant’s capacity utilization from 45% to 55%.
• Value added per employee increased from 0.3 million to 0.46 million
i.e., increase of 53.33 % per employee.
• The programs implemented saved 20-30% on business redesign, 10-
15% on process redesign and 5-10% on engineering redesign.
Conclusion
• Thus, BPR implementation in M&M had seen radical change for the
better not only in its functions but also in its results.
• This can be summed up with the statement of Anand Mahindra:
• “Today the atmosphere is so different that every morning
all the workers recite the company oath, which is a sea
change from the situation 10 years ago when workers used
to play cards on shop floor during working hours.”
References
• 1. ‘BPR EXPERIENCES IN INDIAN INDUSTRY’ By Kristin Koshy,
Academia.edu
• 2. Mahindra and Mahindra – Implementing BPR By Kartikeya Sharma,
Scribd.com
• 3. Mahindra and Mahindra: Implementing BPR, BY A.Mukund, CASE-
Reference no. 602-063-1
• 4. Mahindra and Mahindra, Wikipedia.org.