Operations Management at Bajaj

Markets Motorcycles Overall Two- wheeler gross sales of Indian players is henpecked by the domesticated market and, indoors it, by motorcycles. After growing at a sharp clip from the easy 1990s, motorcycle sales witnessed a 7. 8% drop in volume in 2007-08, due to falling domestic implore as a result of go up interest rates and many hotshot-on-one sector banks reducing their retail lending exposures. 2008-09 saw a modest emergence in motorcycle sales of 4%, driven largely by harvesting in currency sales. Even so, sales of motorcycles ( both(prenominal) domestic and exports) in 2008-09 has been lower than what it was in 2006-07, before the slowdown hit this sector. to the highest degree BAJAJ-The collection comprises of 34 companies and was founded in the socio-economic class 1926. The groups flagship company, Bajaj motorcar, is ranked as the worlds fourth largest deuce- and three- wheeler manufacturer and the Bajaj brand is well-k in a flashn crosswise several countr ies in Latin America, Africa, warmheartedness East, South and South East Asia. Founded in 1926, at the height of Indias movement for freedom from the British, the group has an illustrious history. The integrity, dedication, resourcefulness and function to succeed which are characteristic of the group today, are often traced back to its kin during those days of relent little devotion to a common cause.Motorcycles Domestic Sales for Bajaj political machine The company classifies motorcycles into three segments, ground on consumer categories and approximate cost pips. These are a) launching segment. These are typically 100 cc motorcycles at a price point in the neighbourhood of Rs. 35,000. Bajaj simple machineDespite the slight uptick in the industrys sales volume, Bajaj railroad car did not maintain volume growth, for reasons that go away be discussed below. From 1. 66 one million million million motorcycles in 2007-08, the companys domestic sales fell by 23% to 1. 28 mi llion units in 2008-09. Some of this was remunerative by a 31% add-on in exports to 631,383 units.But it was not enough. Consequently, Bajaj gondolas market share(domestic and exports, combined) fell from 32. 7% in 2007-08 to 28% in 2008-09. b) executive director segment. This largely comprises 100 cc to cxxxv cc motorcycles, priced between Rs. 40,000 to Rs. 50,000. We arein this segment with two brands XCD and break down. c) Performance segment. These are sleek, high performance, with price points in profusion of Rs. 50,000. We are accede here with our flagship brand, the Pulsar, and our cruiser, the retaliator. We dominate this space, with a domestic market share in excess of 47%.Using the three-fold classification set forth 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 cl DTS-i Discover Discover 135 DTS-i Discover DTS-i Platina Platina 125 Pl atina 100 cc NINJA Ninja 250 R Operations Plants Bajaj Autos vehicle manufacturing capacity stands at 3. 96 million units comprising 3. 6 million two-wheelers and 360,000 three-wheelers. The newest comprise at Pantnagar (Uttarakhand) has a capacity to produce 900,000 two-wheelers. slacken gives the capacity information. picPantnagar Bajaj Autos merchandise at its state-of-the-art Pantnagar plant (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 almost 40,000 motorcycles per month. To maximise the revenue enhancement benefits available at Uttarakhand, the company is shifting some(a) of its much profitable products to the Pantnagar plant. After the shift of these products, the plant is expected to produce around 60,000 vehicles by the third quarter of 2009-10. Table gives the data on which products are manufactured in what plant. pic MAJO R SUPPIERS SUPPLIERS PARTS USHA PISTONS,RINGS ROLON CHAIN,CHAIN SPROCKET fortitude FORKS,SHOCKERS,RIMS,ALLOY-WHEELS PRICOL METER CONSOLE MINDA LOCKS ,HORNS,SWITCHES LUMAX LAMPS SUNDARAM FASTENERS KBX DISK pasture brake PADS BOSCH SPARK PLUGS EXIDE BATTERIES MRF TYRES Supply Chain Bajaj Autos supply chain encompasses the subroutine from vendors to the final customers via manufacturing. Therefore, the telephoners supply chain involves as much the vendors and the procurement-to- take overment 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 just about of the Companys vendor initiatives, including the Pantnagar trading operations and TPM have been discussed earlier.What needs to be exclamatory is that the 16 vendors clustered deep down the campus of Bajaj Autos Pantnagar plant were a vary of a planned process of object development where the vendors were fully integrated with the plant, showtime with basic raw materials, automated paint, plate and powder coating plants. This has ensured that the maximum possible value addition is done within Uttarakhand, so as to maximise the tax advantage and make Bajaj Autos motorcycles even more cost competitive. sign facilities created by vendors at Pantnagar at an sum investment of Rs. 5 billion (Rs. calciferol crore) are for half million motorcycles per year, which pull up stakes 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 insurance approach which is anomalous in the automobile industry. This policy and its relate initiatives are guided by the requirements of ad hoc sets of the Companys final customers. 1. The primeval Channel This comprises 408 sole(prenominal) two-wheeler dealers, 75 exclusive three-wheeler dealers, and 98 dealers who deal in both product categories. Bajaj Auto has followed a policy of systematic network consolidation, in which the autochthonic dealerships have been given a big scale and scope to operate based on their strengths. 2. The Secondary Channel much of Bajaj Autos recent triumph can be attributed to policy of promptly adding to the number of secondary outlets, which provide sales, religious service and spares support in the vast hinterland of India. These are in the form of 1,500 classic Service Centres (ASC), 4,500 cracker-barrel Service Outlets (RSO), and 750 materialisation Engineer Service (YES) centres in the towns and cities. 3. The Rural India Foray The Company has been aggressively pursue initiatives to increase two-wheeler penetration in awkward India. A large number of bucolic outlets were added to the network during the year, which not only increased hinterland sales but to a fault gave additional employment in the artless sector. 4. Pro-biking This initiative sits far aw ay from the uncouth India play but is no less important.Bajaj Auto believes that young India doesnt pay to buy motorcycles it pays to buy excitement and exhilaration. The Pro-biking initiative, which was kicked clear up with the inauguration of first store in Pune in August 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. &8212&8212&8212&8212&8212&8212&8212 AUTOMOBILE BAJAJ appellation 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