Mahindra and Mahindra

Nashik Plant Visit20th January 2015

Presented ByAnkesh Dhengre 006Naveen T. 023Nikhil Dungarwal 024Prashant Vhatkar 029Nikhil Patil 050Saurabh Bane 087

Mahindra and Mahindra Group

The Mahindra Group is an Indian multinational conglomerate headquartered at Mahindra Towers in Mumbai, India, with operations in over 100 countries around the globe.

• Headquarters: Mumbai, India

• Industry Type: Private conglomerate

• Founders: J.C. Mahindra and K.C. Mahindra

• Current CEO: Mr. Anand Mahindra

• Current Chairman: Mr. Keshub Mahindra

• Number of employees: 180000+ (Mar-2013)

M & M Group Subsidiaries

Mahindra & Mahindra Ltd

• Mahindra & Mahindra Limited (M&M), an integral part of Mahindra Group, is an Indian multinational automobile manufacturing corporation headquartered in Mumbai, Maharashtra, India.

• It is one of the largest vehicle manufacturers by production in India and the largest seller of tractors across the world.

• Manufacturing plants • Maharashtra – Mumbai, Nashik and Igatpuri• Uttarakhand - Haridwar• Andhra Pradesh - Zaheerabad

• Managing director - Mr. Anand Mahindra• Products: Automobiles (Scorpio, Pick-up, Bolero, Quanto, Xylo, Verito,

XUV), commercial vehicles, two-wheelers

M&M Nashik Plant• Established in 1981

• Manufactures Scorpio, Bolero, Verito, XUV and spares for these vehicles

• The plant is spread over 47,000 sq meter area where 6500+ employees work together to build the brand of Mahindra.

• Major Achievements:

• M&M Nashik plant received Quality system certificate ISO TS 16949 in the year 2003 & EMS certification ISO 14001 in the year 2004.

• Plant has also received OHSAS’s Safety certificate ISO 18001:1999 in Feb -07. Business standard motoring in the year 2003.

• Scorpio is declared “Car of the year” by CNBC Auto Car, BBC wheels and business standard motoring in the year 2003.

Suppliers Press Shop Body Shop Paint Shop TCF shop Customers

Mahindra & Mahindra Supply Chain -Nashik

• Core focus: People, Passion and Performance• 70% suppliers based in Nashik and 30% from other areas• Important factors consideration:

(1) Vendor selection(2) Technology selection(3) Logistics selection(4) Procurement strategy(5) Dealer selection

• 5-10% of the total cost is the Logistics cost• Quality is given first priority followed by delivery, even if that means

trading-off with some opportunity profit.

• Two modes of delivery scheme is followed by M&M, Nashik plant:-1. Free Delivery- Here the materials are brought right upto the plant.2. EXW (Ex-Works)- In this case, Mahindra Logistics takes care of the duty to bring the goods to the plant.

• EN (Engineering note) is maintained to cross-check if any improvement is needed for a vehicle.

• For the Nashik plant, the foundry (for engines, gearbox and axles) is located at Kandivali.• The internal auditing is done through the Mahindra Quality Standards.• The APQP (Advanced Product Quality Planning) has also been incorporated in the Nashik

plant "to produce a product quality plan which will support development of a product or service that will satisfy the customer.“

• MSEA (Mahindra Supplier Evaluation System) for Risk analysis and Strategic Sourcing; “1 part ==> 1 vendor” strategy

• Milk run model for collecting small quantity raw material from local suppliers• Truck capacity utilization practices for interplant logistics

Mahindra & Mahindra – Nashik Plant facts

TCF Shop - Chassis Assembly • Components of chassis like transmission system, gearbox,

engine, axels, brake and wheel assembly are mounted onchassis frame.

• After operations on one chassis is completed and beforeanother chassis came in, worker needs to be ready with set ofspares needed for next chassis.

• Inventory at assembly line is replenished periodically.• ANDON system is installed at strategic workstation so that in

case of any emergency, assembly line could be stopped andcorrective action can be taken.

• Engine is mounted on chassis as assembly comes towards theend of line.

• Once the assembly is complete, one worker carries the qualitycheck by checking all nuts and bolts secured in proper places.

• At the end of chassis assembly, engine was checked at varyingspeeds for 45 seconds and performance is noted down.

• Then chassis is lifted by overhead crane and taken to TCF shop.

TCF Shop – Finish Line• Bodies from paint shops and chassis for chassis

assembly are received at the beginning of assemblylines with the help of overhead cranes.

• Here, all engine and suspension parts, electrical parts,under the body parts are fitted into the car.

• The movement of cranes is scheduled such that bodyof a car and chassis are exact match.

• The workers need to follow TAKT time for each activitythey carry out.

• Two bin system for storage of materials is followed. Onsome stations, kits of inventory for each car aremaintained.

• On the same line, seats, steering wheel, headlightsand other accessories are assembled with the body.

• In the end, logo of Mahindra is pasted and then car isrolled out to test drive after final quality check.

TCF assembly line

Nashik Plant – Performance (output)

• Manufacturing lead time – 6 min

• Cars produced in 1 shift – 240 cars

• Maximum capacity – 800 cars/day

Wheel and axel assembly Press shop

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