Group 7

1
EXECUTIVE OVERVIEW

2
 BARRIERS

Hard Barriers
Soft Barriers
• These are
• These are
technology
employee
and
related
operation
issues
related
issues

3
 HARD BARRIERS

• Lack of data integration between departments

and businesses – Islands of data problem
• Lack of centralized I.T. infrastructure
• Manufacturing Inefficiencies
• Long production cycle
• Inability to keep-up global best-practices

4
 SOFT BARRIERS

These are People Problems

1. Employee and union Resistance
 Fear of downsizing
 Inflexible of Trade-unions
 Decreasing Worker productivity
2. Management Issues
 Lenient Approach
 Management accepting union demands everytime Management skepticism
about BPR
 Management lacking commitment
 Bureaucratic work system

5
 The First Steps towards change …

 1994 – Major Restructuring Program was initiated as a part of BPR

 Program was Developed by UK based Lucas Engineering System
 People involved in corrupt practices were sacked
 Voluntary Retirement Schemes were introduced
 But the unions refused to co-operate and the workforce could not be reduced

6
 IMPLEMENTATION OF BPR

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) 7
 Stage 2: Re-engineering the entire layout

 Cellular Manufacturing
– Multi-tasking through Multi-machine manning
– Reduction in non-productive Activities
 Implementation of TQM and Kaizen approach
 Formation of 3 cross functional teams
– Horizon 1 : Improvement in existing Product
– Horizon 2 : Upgradation of existing Product
– Horizon 3 : Development of new Product

8
9
10
 Results of E-Business Adoption

• Electronic procurement of materials

• Improved Inventory control
• Reduced production and administrative Costs
• Better internal and external communication
• Data-driven decision making leading to better results
• Better customer insight through data analytics tools

11
 M&M SWOT Analysis

Strengths Weakness Opportunities Threats

`
• Focus on • Slowdown in Fast growing • Environmental
innovation auto-sector automobile measures to
• Strong brand • 2-Wheeler industry curb pollution
position in the segment not Rising demand for • Introduction of
domestic market doing well power and BS-VI fuels
• Product portfolio • Tractor sales infrastructure norms
• Number one equipment • Increase in
and rural
tractor brand • Hybrid cars a demand for
agricultural
globally by growing market Bio-fuel
sector
volume in India and vehicles
• High market globally • Competition
share in tractors • Electric Vehicles from global
domestically • Autonomous brands
vehicles
12
 3-Point Action Plan
• Leverage technologies like
Robotic Process Automation
(RPA), IoT, AI, ML, etc. to
drive growth
• Inorganic expansion through
mergers, acquisitions & joint-
ventures
• Divest non-core loss-making
business
• ‘’E-Business can be an
effective tool in building and
maintaining a sustainable
competitive advantage, and is
helping the Mahindra group
forge new relationships with
its stakeholders.”
• Ulhas Yargop, President,
Telecom and Software Sector,
M&M
13
Thank You!

14