Its a presentation on MBA MIS lecture under a topic of operational excellence with an example of bajaj

1. Presentation by Group-10
 Srenik
Aastha
Monisha
Aakash
Pooja
Remo

2. Operation Excellence
Of
Bajaj Automobiles

3. Operation Excellence
Operational Excellence is not easy to define.
It can be defined by answering the question : “Where will our journey of continuous
improvement take us?” the answer leads us to Operation Excellence
“Each and every employee can see the flow of value to the customer,
and fix that flow before it breaks down.”
---- It seems to be simple but MAGIC lies

4. INCEPTION, GROWTH OF THE COMPANY:
•The Bajaj Group was founded in 1926
•By Jamnalal Bajaj and now consists of 27 companies.
•The company acquired a license from the government in 1959 to manufacture
vehicles and went public the next year, upto then its just a company of
imported vehicles
•By 1977, the company saw its plant rolling out 100,000 vehicles in a single
year. In another nine years, Bajaj Auto could produce 500,000 vehicles in a
year.

5. INCEPTION, GROWTH OF THE COMPANY:
•The present Chairman of the Bajaj group, Rahul Bajaj, took charge of the
business in 1965. He was the first licensee for the Indian make of the Italian
Vespa scooter. Japanese and Italian scooter companies began entering the
Indian market in the early 1980s.
•Around 1,400 rural outlets have been created in towns with populations of
25,000 and below.
•During the year 2008-09, twenty new rural dealers became operational.

6. Key Products: Two Wheelers and Three wheelers

7. Value Chain Analysis Of Bajaj Auto
Suppliers:
•Bajaj selects those suppliers who provides majority of the required raw materials together.
• Bajaj Auto has 198 key suppliers for their raw materials . Some key Suppliers are:
Suppliers Materials
JBM Frames
MRF & Dunlop Tires
Minda Locks and Ignition Systems
Reinder Headlamps and Lights
Endurance Brakes ,clutch and Cast vehicles
Varroc Digital Meter and Plastic parts
Max Auto Components Ignition system and switches
Silico Cable Wires and cables
Makino Industry Brake shoes, Brake lining and Clutch Centre

8. Process of ordering: Bajaj follows a systematic
process in selecting suppliers and deal with them
Application
of supplier
Invitation by
manager for
meeting
Decision for
time period of
raw material
Email for
material in
advance

9. Maintaining Relation:
Bajaj auto pay them regularly.
Bajaj also pay advance for bulky consumption.
Rewards those suppliers who were with the company for
whole year and survive company without any problems.
The suppliers gets up-to date information on purchase order,
contracts and material schedule

10. Inventory policy-
•Bajaj auto maintains seven days inventory .
•Demand Estimations are based on Panel Regression, which takes into
account both time series and cross section variation in data .
•All the Mediators are connected with each other through IT linkage to know
exact status of delivery of goods

11. Manufacturing:
•With operations spanning to such vast geographies, managing
a value chain globally becomes more and more complex.
• In countries where Bajaj perceives a strong market potential,
they establish a tie up with one major industrial establishment
eager to invest in the project.
•This investment may include setting up strategic
manufacturing, assembly units, technology transfer,
distribution and after sales services.

12. Manufacturing Overview of Bajaj Auto:

13. Infrastructure facilities:
•Bajaj Auto Ltd. has well designed infrastructure facilities with highly care of clarity and
arrangement.
• The whole plant has divisional area like, offices, operation house, godown, and packing
department.
•Bajaj Auto Ltd. l has modern technological machines arranged in operation department
systematically.
• Bajaj provide all the best facilities to their employees, like parking, canteen, rest room, and
also proper working conditions.
•They greatly care of their employees. They pay on monthly basis and also give bonus on
special occasions.

14. Distribution:-
•For distribution of Bajaj auto it uses mix of depots and carrying & forward agents
•This is completely dependent on the distance of manufacturing location from dealer
point .
•For example due to extensive distance from manufacturing plant from west Bengal to
north-east India, there exist a depot in Khadakpur with capacity of housing
800vehicles.
•There are similar depots in Punjab, Rajasthan and southern India.

15. Dealers:
• Company Owned &
• Company Operated showroomsCoCo
• Company Owned &
• Dealer Operated showroomsCoDo
• Dealer Owned &
• Dealer OperatedDoDo

16. Transport & Logistics:
 This function of distribution is not owned by the company in any form.
 This is outsourced to the third party vendors.
 The third party here is Transport Corporation of India (TCI) and a few other private vendors.
 There are twenty vendors all across
India
- Jamuna Transport
- Sumit Transport

17. New Product Launch:
•Information is percolated around a month before the product is to
be launched
•The date of launch can be rescheduled in case the current stocks of
the dealer are not getting cleared

18. Key Role & Deliverables
•The most important loop that is the outcome of the dealer
management is the feedback loop.
•Dealer need to fill in the required form provided by the company
and update it to the company on monthly basis.

19. Order Tracking:
Taking a daily account of the order received from various dealers
and Regional Offices (RO).
Orders from dealers are punched in by dealer themselves.
Orders are followed up in the system only if the credit limit is not
crossed.
This credit limit is preset into the system depending upon the dealer
and his/her track record.

21. Queries