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WMS Implementation Case Study

At

Maruti Udyog Limited

U.S.A. Office:

7Hills Global Systems LLC 1725, 1 Street NW, Suite 300, Washington DC 20006, USA

Tel:

+1-202-349 1107 Fax: +1-202-349 1108 Email: sgeddam@7hillsbiz.com

+1-202-349 1106

India Office:

Seven Hills Business Solutions Limited Q1 A1, 10 th Floor, Cyber Towers, HITEC City, Madhapur, Hyderabad – 500033 Andhra Pradesh, INDIA Ph: +91-40-55664545 Fax: +91-40-55662211 Email: sales@7hillsbiz.com Web: www.7hillsbiz.com

Maruti Udyog Limited (MUL) was estab lished in Feb 1981 through an Act of Parliament,
Maruti Udyog Limited (MUL) was estab lished in Feb 1981 through an Act of Parliament,

Maruti Udyog Limited (MUL) was established in Feb 1981 through an Act of Parliament, to meet the growing demand of a personal mode of transport caused by the lack of an efficient public transport system.

Suzuki Motor Company was chosen from seven prospective partners worldwide. This was due not only

to their undisputed leadership in small cars but also to their commitment to actively bring to MUL

contemporary technology and Japanese management practices (which had catapulted Japan over USA

to the status of the top auto manufacturing country in the world).

A license and a Joint Venture agreement were signed between Govt. of India and Suzuki Motor

Company (now Suzuki Motor Corporation of Japan) in Oct 1982.

The objectives of MUL then were:

Modernization of the Indian Automobile Industry

Production of fuel-efficient vehicles to conserve scarce resources

Production of large number of motor vehicles which was necessary for economic growth

of moto r vehicles which was necessary for economic growth Maruti Udyog Limited is the largest

Maruti Udyog Limited is the largest passenger car manufacturer in India with an annual capacity of 470,000 cars. Turnover of $2.2 billion and with an incredible ability to rollout a car in 45 min.

Exporting Cars to various countries

Single Spares Distribution Center for the entire country- Annual spares turnover of $130 million

Heavy Inbound and Outbound material flow

In-house developed ERP System

Dedicated Systems Maintenance Dept

Initial Study

Needed a system to manage their end to end spares supply chain execution

Highly scalable supply chain to meet the peaks in market demand

scalable supply chain to meet the peaks in market demand • Sub optimal Warehouse Layout •

Sub optimal Warehouse Layout

Long Process to bin a material

Order level Picking

High rate of Inventory discrepancies

One Part-one Location

Operator Driven Processing

Not having any systematic Process in Material Handling

High rate of Manual errors

Discrepancy between items ordered and items shipped to dealers

Absence of real time data during binning and picking operations

Packlist not available – content of shipping carton not verifiable

Long Order execution time (5.5 days for a REG order, 2 days for a VOR order)

MUL decided to revamp its spares distribution operations and chose 7Hills to re-engineer the warehousing process and implement MARC™ Warehouse Management System

Solution Implementation

Floor Wise Implementation

Fast-break Approach for initial phase

Thin Client Installation

Barcode and Dot Matrix Printers

Re-printing option for all the reports on a specified printer using MARC Run SQL Procedures

One Hub and one print server for each floor

Wedge Scanners to scan Barcodes

MARC Global Implementation Methodology

- Confidential -

Benefit/Value-addition

Well organized Warehouse Layout

Systematic Process to bin a material

Group Picking

Accurate Inventory Control

One Part-one Location (Fixed Bin) along with Dynamic Location allocation and Replenishment concepts

System Driven Processing/Material Handling/Containerization

Quick Order execution time (6-8 hrs for a REG & 2-3 hrs for a VOR order)

Minimal scope of Manual errors & Inventory discrepancies

Real time inventory status

visibility

discrepancies • Real time inventory status visibility Top Top elevation elevation plan plan of of II

TopTop elevationelevation planplan ofof IIII FloorFloor

TopTop elevationelevation planplan ofof IIII FloorFloor

SlotsSlots (Overflow(Overflow Zone)Zone) SlotsSlots (Overflow(Overflow Zone)Zone) Bin Code 5 – Bin Code 5 – Bin
SlotsSlots (Overflow(Overflow Zone)Zone)
SlotsSlots (Overflow(Overflow Zone)Zone)
Bin Code 5 –
Bin Code 5 –
Bin Code 5 – (Metal, Non Metal)
Bin Code 5 – (Metal, Non Metal)
Bin Code 5 – (Metal, Non Metal)
Bin Code 5 – (Metal, Non Metal)
Replenishment
Replenishment
Second Floor QC Area (Inspection Area
Second Floor QC Area (Inspection Area
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
Zone
Zone
Bin Code 4 –
Bin Code 4 –
Bin Code 4 – (Metal, Non Metal)
Bin Code 4 – (Metal, Non Metal)
Bin Code 4 – (Metal, Non Metal)
Bin Code 4 – (Metal, Non Metal)
Replenishment
Replenishment
Empty Area for Future Usage
Empty Area for Future Usage
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
Zone
Zone
Bin Code 3 –
Bin Code 3 –
Bin Code 3 – (Metal, Non Metal)
Bin Code 3 – (Metal, Non Metal)
Bin Code 3 – (Metal, Non Metal)
Bin Code 3 – (Metal, Non Metal)
Replenishment
Replenishment
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
Zone
Zone
LiftLift forfor
LiftLift forfor
incomingincoming
incomingincoming
materialmaterial
materialmaterial
Bin Code 2 –
Bin Code 2 –
Bin Code 2 – (Metal, Non Metal)
Bin Code 2 – (Metal, Non Metal)
Bin Code 2 – (Metal, Non Metal)
Bin Code 2 – (Metal, Non Metal)
Empty Area for
Empty Area for
Replenishment
Replenishment
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
Future Usage
Future Usage
Zone
Zone
Bin Code 1 –
Bin Code 1 –
Bin Code 1 – (Metal, Non Metal)
Bin Code 1 – (Metal, Non Metal)
Bin Code 1 – (Metal, Non Metal)
Bin Code 1 – (Metal, Non Metal)
Replenishment
Replenishment
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
(All Movement Codes)
Zone
Zone
forLift
forLift
forLift
Lift for
Lift for
Lift for
outgoingoutgoing
outgoingoutgoing
outgoingoutgoing
materialmaterial
materialmaterial
materialmaterial
Bin Code 6 Bin Zone (Metal,
Bin Code 6 Bin Zone (Metal,
Non-Metal) (High Scale Parts
Non-Metal) (High Scale Parts
Bin Code 6 Replenishment
Bin Code 6 Replenishment
Zone (High
Zone (High
(Metal,
(Metal,
Non-Metal)
Non-Metal)
Scale
Scale
Parts
Parts
Zone)Rejections
Zone)Rejections
Rejections
Rejections
Slots
Slots
Slots (Overflow
Slots (Overflow
(Overflow Zone)
(Overflow Zone)

High accuracy in order shipping

Scope for increase in sales turnover (push method of sales)

- Confidential -