Jaipuria Institute of Management,

Vineet Khand, Gomti Nagar

Lucknow – 226 010
Academic Year 2019-20
Batch 2019-2021
Trimester 2nd
Programme
PGDM (Retail Management)
(PGDM / PGDM-FS / PGDM-RM)
Name of Course Operation Management
Section E
Name of Faculty Prof. Anupam Saxena
Nature of submission
Project
(Assignment / Project Report)
The topic of Assignment / Project
Automobile Workshop - Mahindra

Deadline for submission

December 28th, 2019

Group/ Learning Team Number Learning Team – E 02

Submitted by:
Sl.
No Name of Student Enrollment No. Signature
.
1 Gunit Kaur Arora JL19RM017
2 Manshi Verma JL19RM022
3 Shahjahan Khatoon JL19RM043
4 Shashank Sahu JL19RM045
5 Shivam Singh JL19RM049
6 Suryansh Agrahari JL19RM056

Date of Receiving at PMC Signature of PMC Staff

ACKNOWLEDGEMENT

We wish to express our sincere gratitude to Prof. Anupam Saxena, faculty of Operations
Management of Jaipuria Institute of Management, Lucknow for providing us an opportunity
to do our project work on “Automobile Workshop – Mahindra” This project bears an
imprint of support of many peoples. I sincerely thank to our project guide Prof. Anupam
Saxena for his guidance and encouragement in carrying out this project work.

I also wish to express my gratitude to the officials and other staff members of Jaipuria
Institute of Management, Lucknow who rendered their help during the period of our project
work. Last but not the least, we wish to avail ourselves of this opportunity, express a sense of
gratitude and love to our friends and our beloved parents for their manual support, strength,
help and for everything.

1. Gunit Kaur Arora [JL19RM017]

2. Manshi Verma [JL19RM022]

3. Shahjahan Khatoon [JL19RM043]

4. Shashank Sahu [JL19RM045]

5. Shivam Singh [JL19RM049]

4. Suryansh Agrahari [JL19RM056]

TABLE OF CONTENTS

CHAPTER TITLE PAGE NO.

Acknowledgement

Table of Contents

1 INTRODUCTION 1

2 COMPETITOR 2

3 PROCESS MAPPING 3

4 QUALITY PARAMETERS 6

5 FIVE LEAN APPLICATION 7

6 SWOT ANALYSIS 11

7 CONCLUSION 12

INTRODUCTION ABOUT AUTOMOBILE WORKSHOP SECTOR:

In the past few years there has been sustained growth in the Indian auto workshop industry.
In FY 2017-2018, the Indian Automobiles workshop market grew by 18.3% to cross US$
51.2 billion. The automobile parts sector accounts for 2.3% of India's GDP and hires 1,5
million directly and indirectly. India is an attractive investment destination due to a stable
government environment, enhanced purchasing power, large national markets and ever-
growing infrastructure developments.
The development of the Indian car parts workshop industry depends largely on the growth of
operations and demand in the aftermarket. The OE demand accounts for ~80% of overall
product production; the remainder of the 20% is primarily through the substitution / post
market segment. In 2016, the Indian automotive component industry was valued at US$ 39
billion, which increased by more than 8.5% year-on-year and contributed more than 2% of
India's GDP. The market is mostly unorganized with more than 10,000 companies, who are
primarily in the non-organized catering field, which accounts for about 0.5% of overall
industry sales. Off-late replacement competition has decreased and tier 3 and 4 games have
become strained.
The coordinated market involves major players that directly supply components to OEs. In
this section, more than 700 players comprising of Tier 1 and 2 players were controlled. 85%
of the market revenue is contributed by them. And the sophistication of the management of
headwinds resulting from interruptions in the EV system transition, vehicle communication
and autonomous functionalities growth. The Indian auto sector's production output in 2016-
17 was 25.32 mn of cars, including PVs, CVs, 3Ws and 2Ws, compared to the 2015-16
outputs of 24.0 mn vehicles with 5.4 percent increase. The car industry is viewed as a labour
force for India and India is also improving its current exposure to the international
automotive value chains (GVC) to offer increased economic benefits. High-value operations
are generally high-quality and low-value tasks concentrated. As India has become the main
source of sustainability – many of our GVC activity in vehicles is intensive work assembly,
parts and fundamental manufacturing.

MARKET SIZE

The Indian automotive workshop industry can be primarily classified into organized and
unorganized sectors. The structured sector comprises Original Equipment Manufacturers
(OEMs) which contains high-value specific tools, whereas the unorganized sector consists of
low-valuation products which primarily encompasses the aftermarket. India's exports of cars
totalled USD 13.5 billion in 2017-18 compared to USD 10.9 billion in 2016-17. It has been
driven by strong domestic development in many Indian suppliers and the increasing
globalization (including exports). The worldwide scenario for development in FY19 is
projected to speed up to 8-10 percent. The Indian Auto-components workshop market is

forecast to report $100 billion in sales by 2020 assisted by high exports of US$ 80-100 billion
by 2026 as per the Automotive Component Manufacturers Association of India (ACMA).

The rise in duty on specified items, including engine and transmission sections, braking and
components, gearboxes and components thereof, airbags, etc., from 7.5-10% to 15% would
improve domestic output. Since most component units are small and medium-sized
businesses. This will support India's car product sector, reducing the tax rate to 25% for small
and medium-sized companies with revenue of less than USD 38.46 million.
COMPETITOR

There are many competitors in the market. customer initially prefer to go authorise service
centre for servicing or repairing their car, after a couple of year they prefer other automobile
workshop for their repairing and servicing their car. Following are the major competitors of
the authorise service centre:

 Toyota U Trust
 Tata Motors Assured
 CarXpert
 First choice
 Bosch car service
 Motherson Sumi Systems Limited (MSSL)

 Bharat Forge

 Local servicing workshop

CUSTOMER MANAGEMENT

In this organization, the customers are given the required services in the best way to give the
quality output. They assist the customers mainly in the accidental cases of their cars wherein,
either the customer brings the car to the service station or the service renders go themselves
to fetch the car from the respective customer’s place.
Further, the supervisor firstly checks and monitors the cars so as to ascertain, how much
damage or what repairs are needed. Thereafter, they give a detailed description of each and
every maintenance work which will be done by them and accordingly the cost is also told to
them with the tentative time period it will take to repair the car. Once the work is done, the
customers are told to first check the car on their own and tell if something is still pending.
Once they are satisfied the car give back to them
PROCESS MAPPING OF MAHINDRA SERVICE CENTRE

LINE OF INTERACTION

Customer Meets the Customer tells

Enters surveyor the problem

Paper work Surveyor give

is done his inputs
BACK OFFICE (EVEN A LINE OF VISIBILTY IN
WORKSTATION)

Car enters the Denting &

service centre Painting
Pa

Painting Process
Clean
 Bhatmetals
 Degreaser  Feather edging
 Body Filler  Primer Application
 Cutting  Putti Application
 Putti Sanding
 Levelling  Surface application
 Dry cote paint
 Top Cote Paint
 After this car is repaired and ready to be delivered to the customer but the car is only
delivered to the customer once they have received the money by the customer or if it
is the case of insurance only when the money is received by the service centre it
delivers the car to respected customer

Study Layout Design of the Workshop

As it is the service centre so this the fixed position kind of layout all the products
equipment and labours come to service centre to work. In Mahindra Service centre
Customers comes to service centre or if called at the service centre the car is towed to
the service centre. Then all the paper work is done and checking of the parts is done,
if new parts are required then the call is done to Pune headquarters, further it takes a
week to bring the parts of major products.

Requirement ----------- Pune ------------- Comes to Lucknow

(Urgent) ( 5-6 days)

Then further the assembling of part is done and then all denting and painting procedure is
done. And after a proper servicing, the car is ready to be delivered to the customer.
INVENTORY MANAGEMENT

The dealers maintain stocks and inventories keeping only limited items/parts to prevent
overstocking. The main inventory store is situated in Pune and all the stocks are distributed to
all places from this inventory store. It takes 5-6 days for the cargo to reach Lucknow from
Pune and a minimum order of Rs 25000-30000 should be ordered for the orders to dispatch
from the origin place. The dealers maintain their stocks by keeping the products/parts of the
vehicles which are running in a large number on the road. The dealers decide this on the basis
of surveys conducted in different places and on different vehicles. The vehicles which are in
high demand or are present in large numbers on the road, their stocks are well maintained by
the inventories. There are various products such as windows, bumpers etc which are
considerably the basic parts are available at the dealerships whereas parts such as engine
subparts , chassis etc are not in high demand and are only needed in case of accidents and in
such cases the orders are placed at the inventory store in Pune and they are dispatched as
soon as possible. All these measures are taken by the dealers in order to prevent overstocking.
The products if they are urgently needed the availability of these products is checked from
the nearby dealers.
QUALITY PARAMETERS
Mahindra believes in providing their customers products and services that are of high quality,
so they also use good quality materials/products for making of their parts. For example the
paint which is used for their cars is from "Asian Paints" and it not only it ends by using good
quality paints for their cars but also they have multiple levels of rigorous painting stages
where everything is predefined to maintain the same great quality for each cars that rolls out
of the workshop. The workers are well trained and complete their tasks as per the guidelines
maintained by the company. All the mechanisms are well regulated and are done in such a
way that they are completed on time.

For paints they use best quality that is “Asian Paints”

FIVE LEAN PRINCIPLES APPLICATION EXPLAIN
DEFINE VALUE

The first principle of understanding value of customer, it is significant to understand that

what value is. Customer is willing to pay is called value. The main objective is to discover
the actual and the customer needs. Even they herself or himself don’t know what to take or
they are unable to articulate what to take or what’s the need. It’s mainly occurs when it comes
to technologies product or novel product. There are many ways by which you can decipher
and discover what customer find valuable such as interviews, survey, demographic
information and web analysis. By these Quantitative and Qualitative techniques what
customer want how they want the service and product to be delivered .

VALUE STREAM MAPPING CHAIN

It is the second lean operation and it is also known as material and information mapping flow.
It starts from beginning to the end customer. It analysed the current state and a future state of
the series of product that take part from its beginning to the reach of the end customer .This
stage of mapping also displays the critical steps of the product and also how much time has
been taken for that product .It also shows the material and the information taken in the
process.

CREATE FLOW

It is the third lean operation in which flow is the major concept. There is no waiting because
it’s a waste, so a clear flow of value should be there which ensure a smooth flow of work
from the second you receive than to end delivery of the customer.

ESTABLISH PULL

In this fourth lean operation, when you already created a flow of work than you have to
establish a pull system. The new way is to start a new work on demand for it and also your
team is willing to do it. Your main goal is to produce value not overproduction but a limited
quantity of production which is required or needed.

PURSUE PERFECTION
There are four steps by which wastes are prevented through the achievement
1) Identify the customer’s needs.
2) Identify the value chain mapping
3) Flow to eliminate waste
4) Pull based system analysis.

The fifth steps is the most important amongst all for pursuing perfection in all .It improves a
part of the organisational culture of lean thinking and continuous process .Every employee
should prefer perfection while delivering product of a customer need based . The company
culture should be a learning organisation always which finds a better product or service to
each and every day for customer.

APPLYING THE PRINCIPLES

These five lean principles provide an effective and efficient framework for creating an
organisation. Lean allows managers to allows and discover an inefficiency in organisation
and provide a better service and product to a customer. It also creates a better flow in work
and also creates a better improvement in the culture of the organisation processes. By
practising all lean principles in an organisation, it helps them to be competitive, increase the
value product and effectiveness and efficiency towards customer, it also helps increase the
profitability of the organisation and decrease the cost of doing business
OPERATIONAL CHALLENGES.

There are top Five challenges facing by Automotive industry.

Possible risk and chance

The only risk for the global automakers is not competing with china. China is itself a one-
way winner since last 15 years in an automotive industry. The challenges are to increase the
growth of the volume and the structural competitive challenges.
Industry conversion or development

To showcase or represent the transformational forces of the automotive industry the

connected cars are the main sources of greatest unknowns. To receive data and informational
form of its surroundings the greatest players is the connected cars which serves as a
communicational hub

How can automotive industry can find growth?

Mass production and a perfect assembly line which is enhanced by the henry ford can
increased the productivity and also helps in the growth of the Mahindra. Indian automotive
industry is the 4th position in the world by the sales increasing by 9.5% year by year to
4.02million units.

Managing the difficulties of government and technologies

Trying to balance the demands placed on global development has never been impossible. All-
important global automotive industry in market have placed increasing their focused on the
control of carbon dioxide and gas emission – such as nitric oxide and their particulates and
enhances their fuel usage. The main key factors for the automobile industries is to make right
technology and changing the needs and preferences of the customer based on the changing
environment.

Welcome to the face of mega platform

In the leading world, all automotive industry are now days are redeveloping and improving
the strategies in response of the competition are facing in the current world, new state
regulators and consumers are.
The new methods of mega platform come with a developed approach to the aim of
consolidation, this is leading to different sectors to encompass the basis architecture of a type
of a vehicles-for e.g. hatchback cars, sedan and crossover.
SWOT ANALYSIS OF MAHINDRA

 STRENGTH: - Mahindra leads the market for automotive sectors. They hare
leading in the share market in tractors. In commercial and passenger vehicle company
has strong market which provides the advantage to company and motivates them to
innovate new things. Mahindra focus in new innovations so they are focused for R&D
department. They focus on the Value addition and Value engineering (VAVE)
approach. Even they excel in product which are suitable for Indian roads like
Mahindra SUV’S are the best example is Mahindra Scorpio. Mahindra has an upper
hand on after deal cost since it is lower than the business average and furthermore
have high accessibility of extra parts to various pieces of the nation.

 WEAKNESS: - Mahindra is mostly dependent approximately 60% for its revenue on

Indian market which can affect its business if there is a slow down or inflation in an
economy. Company is only dependant on automotive market for their revenue and if
there is breakdown in an economy there will be major losses.

 OPPORTUNITIES: - There is a growing enthusiasm for Hybrid Electric Vehicles

(HEVs) around the world. The enthusiasm for HEVs is required to create at a CAGR
of 19% in the accompanying 3 years. Mahindra has a strong plan of HCVs and is
ready to get the advantage for creating interest.

 THREATS: - Mahindra faces a huge competition from various another automobile

sector such as Tata Motors, Volvo, Ford etc. This can affect Mahindra shares and can
make pressure for new innovations.
CONCLUSION

Mahindra has implemented the best customer relation to maintain the market and the
satisfaction of the customers. And company provides the after sales services with the low-
cost strategy to maintain the market and provide best from other competitors like A auto
movers and Narayan Ford. Mahindra has taken some strategic decisions to follow their
operations. They have maintained a quality standard by using quality product in the process
of catering to the customers. For e.g., they use Asian Paints for denting and painting
processes and the parts used are manufactured by Mahindra only. Their inventory
management was planned accordingly by the company heavy parts of the cars are ordered
from the headquarters then it comes to various services centres and small parts are available
in the service centre for the emergencies or services to be done. They have done the proper
capacity planning and maintain their quality by providing their original parts. Mahindra
works on making the product which are suitable for driving on Indian roads. Majority of
customers are satisfied with the design of the cars so they work on the strategy of after sales
services to maintain the customer satisfaction and goodwill of the company.