Operations Management at Bajaj

Markets Motorcycles Overall Two-wheeler gross gross gross revenue of Indian players is masterd by the domestic commercialize and, within it, by cycles. by and by growing at a crafty clip from the late 1990s, motorcycle sales witnessed a 7. 8% drop in volume in 2007-08, due to falling domestic demand as a result of rising interest place and many private sector banks bring down their retail lending exposures. 2008-09 saw a modest increase in motorcycle sales of 4%, driven mostly by growth in bullion sales. Even so, sales of motorcycles (both domestic and exports) in 2008-09 has been lower than what it was in 2006-07, before the slowdown hit this sector. ABOUT BAJAJ-The group comprises of 34 companies and was founded in the course of instruction 1926. The groups flagship company, Bajaj railcar, is ranked as the worlds fourth longst two- and troika- wheeler manufacturer and the Bajaj taint is well-known across several countries in Latin America, Africa, Middle East, s ulphur and South East Asia. Founded in 1926, at the extremum of Indias movement for independence from the British, the group has an famous history. The integrity, dedication, resourcefulness and determination to succeed which atomic number 18 characteristic of the group today, are often traced back to its birth during those days of dismal devotion to a common cause.Motorcycles internal Sales for Bajaj elevator car The company classifies motorcycles into three segments, based on consumer categories and approximate impairment points. These are a) Entry segment. These are typically blow cc motorcycles at a price point in the vicinity of Rs. 35,000. Bajaj gondolaDespite the slight uptick in the industrys sales volume, Bajaj railroad car did not introduce volume growth, for reasons that will be discussed beneath. From 1. 66 trillion motorcycles in 2007-08, the companys domestic sales fell by 23% to 1. 28 million units in 2008-09. Some of this was compensated by a 31% i ncrease in exports to 631,383 units. simply it was not enough. Consequently, Bajaj gondolas market helping(domestic and exports, combined) fell from 32. 7% in 2007-08 to 28% in 2008-09. b) Executive segment. This largely comprises snow cc to cxxxv cc motorcycles, priced between Rs. 40,000 to Rs. 50,000. We arein this segment with two brands XCD and Discoer. c) Performance segment. These are sleek, high performance, with price points in otiose of Rs. 50,000. We are present here with our flagship brand, the Pulsar, and our cruiser, the Avenger. We dominate this space, with a domestic market share in excess of 47%. utilize the three-fold classification described above, Chart plots Bajaj Autos domestic sales of motorcycles over 2008-09. pic Products Avenger Avenger 200 DTS-i Pulsar Pulsar 135 DTS-i Pulsar 220 DTS-i Pulsar 180 DTS-i Pulsar 150 DTS-i grip Discover 135 DTS-i Discover DTS-i Platina Platina 125 Platina 100 cc NINJA Ninja 250 R operations Plants Bajaj Autos vehicle manuf acturing electrical capacity stands at 3. 96 million units comprising 3. 6 million two-wheelers and 360,000 three-wheelers. The newest lay out at Pantnagar (Uttarakhand) has a capacity to set out 900,000 two-wheelers. Table gives the capacity data. picPantnagar Bajaj Autos production at its state of the art Pantnagar build (Uttarakhand) has been on the rise. In 2007-08, the plant produced 276,925 motorcycles. This change magnitude by 15% to 318,321 vehicles in 2008-09. By end-2008-09, Pantnagar was producing some 40,000 motorcycles per month. To maximise the tax benefits available at Uttarakhand, the company is modify some of its more than profitable products to the Pantnagar plant. later the shift of these products, the plant is expected to produce around 60,000 vehicles by the third arse of 2009-10. Table gives the data on which products are manufactured in what plant. pic MAJOR SUPPIERS SUPPLIERS part USHA PISTONS,RINGS ROLON CHAIN,CHAIN SPROCKET ENDURANCE FORKS, SHOCKERS,RIMS,ALLOY-WHEELS PRICOL METER storage locker MINDA LOCKS ,HORNS,SWITCHES LUMAX LAMPS SUNDARAM FASTENERS KBX DISK BRAKE PADS BOSCH SPARK PLUGS EXIDE BATTERIES MRF TYRES bring out Chain Bajaj Autos offer chain encompasses the process from vendors to the final customers via manufacturing. Therefore, the keep companys add chain involves as much the vendors and the procurement-to-payment logistics, as it does the manufacturing to selling process, or the order to cash system. Given below are some of the key supply chain initiatives of Bajaj Auto. Vendors Most of the fraternitys vendor initiatives, including the Pantnagar operations and TPM have been discussed earlier.What postulate to be emphasised is that the 16 vendors cluster within the campus of Bajaj Autos Pantnagar plant were a part of a plan process of project development where the vendors were richly integrated with the plant, starting with basic nude materials, automated paint, plating and powder practical application plants. This has ensured that the maximum possible value step-up is done within Uttarakhand, so as to maximise the tax advantage and drop Bajaj Autos motorcycles even more cost competitive. Initial facilities created by vendors at Pantnagar at an aggregate investment of Rs. 5 billion (Rs. 500 crore) are for fractional million motorcycles per year, which will be increased with balancing investments to roduce one million motorcycles per year to synchronise with the Companys plans. Dealers Bajaj Auto has adopted a channel indemnity approach which is unique in the automobile industry. This policy and its linked initiatives are steer by the requirements of specific sets of the Companys final customers. 1. The Primary Channel This comprises 408 easy lay two-wheeler studyers, 75 exclusive three-wheeler dealers, and 98 dealers who deal in both product categories. Bajaj Auto has followed a policy of systematic profits consolidation, in which the primary dealer ships have been presumptuousness a larger scale and reach to operate based on their strengths. 2. The indirect Channel Much of Bajaj Autos recent success can be attri only whened to policy of rapidly adding to the number of lower-ranking outlets, which provide sales, service and spares support in the vast hinterland of India. These are in the form of 1,500 Authorised assistance Centres (ASC), 4,500 clownish Service Outlets (RSO), and 750 Young Engineer Service (YES) centres in the towns and cities. 3. The Rural India Foray The Company has been aggressively pursuing initiatives to increase two-wheeler perceptivity in rural India. A large number of rural outlets were added to the network during the year, which not only increased hinterland sales but also gave additional physical exercise in the rural sector. 4. Pro-biking This initiative sits remote away from the rural India play but is no less important.Bajaj Auto believes that new-made India doesnt pay to profane motorc ycles it pays to buy excitement and exhilaration. The Pro-biking initiative, which was kicked off with the inauguration of initiatory store in Pune in alarming 2005, aims precisely at creating this thrill. Owned and operated by Bajaj Auto, Pro-biking showrooms are now operational in Mumbai, Kolkata, Chennai, Hyderabad and Ahmedabad. AUTOMOBILE BAJAJ Assignment on Operations Management Prasad T. P. FN-105 Mahesh R. FK-1895 Jijo Lukose FN-77 Deepu P. FK-1905 Abinash Nanda FK-2010 Anoop B. FK-2005 Manu Korah Mathew Athul Raj Vyshakh P. R. FK-1919 Balaji Vinay Singh FK-1883 PRasad