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VaIue CbaIn O MIS In
Hero Honda


Subm|tted by Maheshkumar Dontu|

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1ab|e of Content
LxecuLlve summary
2 lnLroducLlon of company
3 value chaln analysls
3 lnbound loglsLlcs
32 CperaLlons
33 CuLbound loglsLlcs
3 MarkeLlng and Sales
3 Servlces
ManagemenL lnformaLlon SysLem
AppllcaLlon of MlS ln Pero Ponda
ln declslon maklng
2 uaLa collecLlon
3 8esource managemenL
laclllLaLlon ueclslon Maklng aL Lhree Llers of managemenL
8L SA
MoLlvaLlon for Change
SA's 8ole
CompeLlLlve advanLage2
8ecommendaLlons3

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lmplemenLaLlon
arLners3
2 8eneflLs Lo PPML3















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1 Lxecut|ve summary
ln Loday's world markeLplace whlchever Lhe secLor ls Lo have a compeLlLlve advanLage every
company possesses some core compeLencles ln manufacLurlng secLor Ponda ls one of Lhe
companles sLrlvlng for havlng an compeLlLlve edge over lLs compeLlLors ln Lhls reporL Lhe
value chaln analysls and ManagemenL lnformaLlon SysLem of Lhe Pero Ponda LLd has been
dlscussed ln Lhe value chaln analysls prlmary acLlvlLles are Lrled Lo be dlscussed
comprehenslvely Whlle ln MlS Lhere ls a dlscusslon LhaL how lL helps Ponda ln beLLer flow
of lnformaLlon and helps ln varlous acLlvlLles llke declslon maklng resource managemenL
daLa collecLlon how lL faclllLaLes managers aL dlfferenL levels CompeLlLlve advanLage of Lhe
company regardlng MlS ls dlscussed and ln Lhe lasL some recommendaLlons are glven for
Lhe company LhaL could prove helpful

2 Introduct|on of the company
lndlan based world's largesL manufacLurer of blkes ls Pero Ponda LLd ln Lhe company
aroused as Lhe [olnL venLure of lndla's Pero Croup and Ponda Company !apan ln lndla
Company achleved lLs popularlLy as largesL Lwowheeler manufacLurlng company ln 2
And ln Lerms of unlL volume sales per year lL ls Lhe World's no Company 1he coveLed
poslLlon of belng Lhe largesL Lwowheeler manufacLurer ls sLlll reLalned by Lhe company
Across Lhe Lhree worldwlde benchmarked faclllLles Pero Ponda blkes are manufacLured
1wo of Lhese are based ln Lhe sLaLe of Paryana ln norLhern lndla aL Curgaon and uharuhera
ln Lhe hlll sLaLe of uLLrakhand Lhe Lhlrd and laLesL manufacLurlng planL ls based aL Parldwar
Pero Ponda ploneered ln lnLroduclng Lhe fuel efflclenL envlronmenL frlendly four sLroke
moLorcycles ln Loday lL conLlnues Lo be Lhe Lechnology ploneer ln !une 2 lL
launched Lhe fuel ln[ecLlon Lechnology and became Lhe flrsL company of lnLroduclng Lhls
Lechnology 1o consolldaLe lLs poslLlon ln Lhe markeL place Pero Ponda ls consLanLly
worklng Lowards lL as lL has aLLalned Lhe lnconLroverLlble poslLlon ln lndla's Lwowheeler

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markeL lL ls sLrongly belleved by Lhe company LhaL lncreaslng urbanlzaLlon changlng Lhe
demographlc proflle of lndla and empowerlng rural lndla wlll add a large number of famllles
ln economlc malnsLream
Mr 8rl[mohan Lall Mun[al Chalrman WholeLlme ulrecLor
Mr awan Mun[al Managlng ulrecLor CLC

3 Va|ue cha|n ana|ys|s
lL ls falrly clear LhaL Pero Ponda en[oys some compeLlLlve advanLage over Lhe compeLlLlon
and for
Lh
year ln a row make Lhem largesL Lwo wheeler manufacLurer ln Lhe world ln Lhe
Lwowheeler markeL of lndla Company commands a robusL markeL share of 2 and ls
conLlnuously growlng aL a healLhy raLe of 3 8y analyzlng lLs value chaln we make an
efforL Lo ascerLaln compeLlLlve advanLage lL has
r|mary act|v|t|es
31 Inbound |og|st|cs
MaLerlal componenLs make 3 of producLlon cosL so Ponda always Lrled Lo have close
lnLegraLlon wlLh suppllers Pence when procurlng componenLs lL ls very lmporLanL Lo
conLrol LlghLly and reduce Lhe loglsLlcal cosL Moreover dlmlnuLlon of lnvenLory wlll be an
added beneflL so LhaL worklng caplLal requlremenLs wlll be less
!l1 manufacLurlng phllosophy ls belng adopLed by Lhe company and lL demands close
coordlnaLlon among manufacLurlng unlLs vendors and anclllary unlLs LfforLs are golng on Lo
broaden !l1 ahead of shop floor ln Lhe operaLlonal sLraLeglc declslons of Lhe vendors as
well llke producLlon plannlng capaclLy expanslon eLc Cnllne real Llme connecLlvlLy beLween
Lhe operaLlons and LhaL of 2 of lLs 3 plus sLrong vendor base has been esLabllshed and
lL's a success of Lhe company All Lhls has resulLed ln Lhe reducLlon of loglsLlcal
LransacLlonal cosL

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32 Cperat|ons
Cnly lndlan company LhaL has masLered Lhe arL of !l1 ls Pero Ponda 1o ensure Lhe hlgh
efflclency and low lnvenLory producLlon Pero Ponda uses hlgh degree of auLomaLlon and
pursues lean manufacLurlng wlLh Lhe usual beneflLs of lncreased cash flow reduced cash
operaLlng cycles and hence lmproved worklng caplLal condlLlons 1he unlque Langlble asseLs
LhaL Pero Ponda LLd has are Lhese fully equlpped planLs where manufacLurlng concepLs are
applled WlLh annual producLlon capaclLy of mllllon unlLs Lhe company has Lhree
manufacLurlng faclllLles aL Parldwar uharuhera and Curgaon WlLh workforce ln range of
32 producLlvlLy/employee ls hlgh 1o make Parldwar planL efflclenL Lhe concepLs of lean
manufacLurlng !l1 lnLegraLed supply chaln have been applled from very sLarL
1echnologlcal knowhow lmprovlng deslgns eLc for Lwowheelers are offered by Ponda
afLer Lhe lnlLlal deslgn requlremenLs as promoLed by cusLomers and markeL Lrends puL ln
sLrucLured appearance by Pero Ponda 8u Leam of lndla
33 Cutbound |og|st|cs
1hrough lLs well esLabllshed dellvery channels from Lhree planLs Pero Ponda ls fulfllllng Lhe
demand ln lndla ls exporLlng approxlmaLely blkes 1he efforL ls Lo provlde for
mlnlmum walLlng perlod or raLher fllllng reglons as per demand forecasLs and markeL
Lrends
34 Market|ng Sa|es
?ears ago llll lL ShuL lL lorgeL lL" campalgn was sLarLed by markeLlng deparLmenL of Pero
Ponda Lo plLch for beLLer fuel efflclency and hence lower ownlng cosL 1o aLLracL new
cusLomers reLaln prevlous cusLomers and rellablllLy of lLs producLs Lhe markeLlng
deparLmenL of Pero Ponda sLrlved consLanLly lL came up wlLh Ponda passporL program Lo
ensure Lhe loyalLy of cusLomers Company has also faced complalnLs of Lhe cusLomers llke
company don'L presenL powerful blkes llke compeLlLor 8a[a[ ls dolng Lhere ls no producL
dlfferenLlaLlon [usLlfy prlce dlfferences eLc 1o make lLs offerlngs well accepLed Pero Ponda
lmproved lLs s and pald aLLenLlon Lo cusLomers' needs uealers auLhorlzed

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represenLaLlves sLockers eLc LogeLher form dlsLrlbuLlon neLwork of Pero Ponda and use
consclous sLraLegles Lo peneLraLe new markeLs and unrepresenLed LerrlLorles lrom 2 Lo
2 company cusLomer polnLs lncreased from 2 Lo 3 ln lndla WlLhln same perlod
dealers SSs and clLy work agenLs were added 1he dlsLrlbuLlon neLwork of Pero
Ponda ls wlde deep rooLed lL ls based on muLual LrusL and relaLlonshlp beLween company
and lLs dlsLrlbuLors and lLs phllosophy Lo ensure growLh of parLners wlLh lLs own growLh lL
has unlque lnLanglble resources ln Lhe form of sLrengLhened supply chaln and dlsLrlbuLlon
neLworks And Lhe ouLcomes of lL are lLs superlor brand lmage and rellablllLy of lLs brand
3S Serv|ces
Pero Ponda comprlsed one of Lhe besL afLersales servlces neLwork ln Lhe lndusLry ln
addlLlon Lo provldlng beLLer quallLy servlce and Lroublefree avallablllLy of spare parLs
company also pald aLLenLlon Lo Lldlness and oLher aesLheLlcs of servlce sLaLlons and added
faclllLles llke alr condlLloned walLlng rooms coffee shops eLc
1o provlde servlce sLaLlons aL every nook and corner of Lhe counLry ls almosL lmposslble for
Lhe company so lL lnLroduced moblle servlce sLaLlons Lo ensure Lhe cusLomers ln rural
areas ln Lhls way lncreased loyalLy of cusLomers ls ensured


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ey Cha||enges were the fo||ow|ng
% Suppller order processlng noL well synchronlzed wlLh producLlon plannlng
% roprleLary suppller porLal provlded no LransacLlons only lnformaLlon
ro[ecL Cb[ecLlves were
%Speed up and auLomaLe suppller order processlng
%Synchronlze cusLomer orders wlLh suppller schedules
PlghllghLs of lmplemenLaLlon of MlS
% 1hreemonLh lnlLlal rollouL covered of Lhe Lop 2 sLraLeglc suppllers over suppllers
have slnce been covered
% lmplemenLaLlon lncluded Lralnlng Pero Ponda suppllers as well as buyers
ey 8enef|ts
%lasLer supply chaln order processlng cuL Lhree days from old schedule
% lmproved accuracy of dellverles from Lo
%8eLLer responslveness Lo cusLomer changes
% Cnllne communlcaLlon wlLh suppllers lnLegraLed and Lraceable
% lnvenLory plannlng lmproved reducLlon ln lnvenLory carrylng cosL
% 1ransacLlon cosLs reduced because of fewer dlscrepancles Lo handle
%Cverall lower process and LransacLlon cosLs
4 Management Informat|on System
1o run organlzaLlons efflclenLly Lhe flow of lnformaLlon has Lo be qulck and efflclenL
managemenL lnformaLlon sysLem provldes help ln dolng Lhls lor solvlng Lhe buslness

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processes llke prlclng cosLlng eLc of producLs or servlces a subseL of Lhe whole lnLernal
conLrol processes ln an organlzaLlon whlch conslsLs of Lhe documenLs appllcaLlons of
people Lechnologles and processes ls used by Lhe managemenL accounLanLs LhaL can be
regarded as ManagemenL lnformaLlon sysLem (MlS) (8ldgoll 2) As MlS ls applled ln
analyzlng Lhe operaLlonal acLlvlLles ln Lhe organlzaLlons lL's Lhls feaLure make lL dlfferenL
from Lhe oLher lnformaLlon sysLems (Lucey 2) Slnghal (nd) reporLed LhaL an asLonlshlng
amounL of lnformaLlon ls generaLed as Ponda ls progresslng ln Lhe manufacLurlng secLor
lor reduclng cosLs enhance producLlvlLy and maxlmlzaLlon of proflLs lL ls very lmporLanL for
Ponda Lo geL Lhe rlghL klnd of lnformaLlon qulckly and efflclenLlyulrecLory of ManagemenL
1o lnLegraLe varlous funcLlons and conLrol operaLlons L8 was lmplemenLed ln Lhe
company A hlgh level of lnLegraLlon of daLa was presenLed Lhrough Lhe lmplemenLaLlon of
L8 L8 has helped Lhe company lmmensely 1oday nobody asks any oLher deparLmenL
for lnformaLlon Cne can log ln and see reporLs onllne" says Mukesh MalhoLra depuLy
general manager Pero Ponda lL enabled Lhem Lo lmplemenL beLLer cosL conLrolllng
measures (1erm paper of lnformaLlon managemenL ln buslness on hero Ponda lnformaLlon
managemenL nd)

S App||cat|on of MIS |n nonda
S1 In dec|s|on mak|ng
As Lhls era ls regarded as era of Lechnology so lL ls very hard for any organlzaLlon Lo escape
from Lhe use of l1 sysLems as compuLers are presenL everywhere 1here are some
deparLmenLs ln Ponda where MlS have lncalculable value 1hough compuLers can'L make
Lhe sLraLegles of Lhelr own however Lhese can help ln efflclenL declslon maklng process and
ln undersLandlng Lhe usefulness of sLraLegles Lo Lhe manager of Lhe organlzaLlons uaLa can
be converLed lnLo useful lnformaLlon wlLh Lhe help of MlS LhaL can be used ln declslon
maklng lor plannlng supervlslng and lmplemenLaLlon of plans Ponda ls asslsLed by MlS as
lL provldes performance reporLs flnanclal sLaLemenLs eLc

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As lL ls almosL lmposslble Lo manage volumes of daLa manually MlS faclllLaLes Ponda ln
collecLlon of lmporLanL lnformaLlon and converLs lL lnLo raLlonal reporLs 1rends and
paLLerns ln lnformaLlon can be recognlzed wlLh Lhe help of Lhese reporLs 1o answer
a varleLy of LheoreLlcal quesLlons such as 'whaL lf' regardlng alLeraLlon ln sLraLegles
and Lo run repllcaLlon MlS sysLem makes use of raw daLa lor example MlS can
lnform Ponda abouL Lhe consequence of alLeraLlons ln prlce on Lhe sales of Lhelr
cars Ponda has become capable of maklng more lnformed declslons due Lo Lhe use
of ueclslon SupporL SysLems
S2 Data Co||ect|on
MlS has made qulLe easy Lhe collecLlon of numerable amounLs of buslness lnformaLlon as
well as has provlded Lhe employees wlLh Lhe beneflL of Llme savlng AfLer enLerlng Lhe daLa
lnLo compuLer Lhrough Lhe compuLer process MlS can qulckly examlne Lhe large amounL of
daLa 1herefore lL has resulLed ln efflclenL worklng by enhanclng fasLer declslon maklng aL
Ponda
S3 kesource management
MlS of Pero Ponda also asslsL lL ln looklng aL Lhe uLlllzaLlon of resources lf Lhe resources are
belng used ln apposlLe and efflclenL manner 1he examples of Lhe managemenL resources
LhaL are requlred Lo be monlLored regularly by Lhe company are LqulpmenLs raw maLerlals
asseLs labour eLc
S4 Iac|||tat|on Dec|s|on mak|ng at three t|ers of management
ueclslons are made aL fundamenLal levels sLraLeglc programs operaLlons and acLlvlLy
levels ln Ponda MlS aL dlfferenL levels of Ponda
O Sen|or Management MlS provldes dlrecLlon Lo senlors managemenL aL Ponda
for poslLlonlng of Lhe buslness plannlng sLraLeglc buslness plan compeLlLors'
analysls and Lhe all Lhe oLher facLors whlch have lmpacL over Lhe sLraLeglc plannlng
O M|dd|e Management for Lhe performance of operaLlonal and organlzaLlonal
funcLlons MlS asslsLs Lhe mlddle managers by glvlng Lhem daLa for operaLlonal

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plannlng dellvery procedures synchronlzaLlon of work unlLs and by helplng ln
ldenLlfylng dlfferenL ways of budgeL conLrol and problem solvlng
O |ne management lL faclllLaLes Lhe llne managers by provldlng Lhem wlLh daLa
for declslon maklng lnformaLlon for problem solvlng and rouLlne servlces eLc
6 kL SA
PPML had legacy sysLems worklng on dlfferenL plaLformswhlch were developed lnhouse
and Lallormade Lo Lhelr meLhod of worklng Slnce Lhe legacy sysLems Look care of daLa
processlng only some operaLlonal reporLs goL generaLed by Lhe sysLem 8eal MlS reslded on
Lxcel sheeLs along wlLh dlfferenL klnds of analysls lnformaLlon Lherefore was fragmenLed
and Lhe auLhenLlclLy was quesLlonable
Cver a perlod of Llme Lhe sysLems underwenL changes and represenLed a paLchwork of
several addlLlons and modlflcaLlons 1hey were loosely lnLegraLed across funcLlonal areas
1here was dupllcaLlon and lnformaLlon lnconslsLency as happens wlLh mosL legacy
appllcaLlons lL was Lherefore lmporLanL Lo mlgraLe from Lhls plaLform Lo someLhlng more
sLable and fuLurlsLlc
7 MC1IVA1ICN ICk CnANGL
1he managemenL's vlslon was Lo allgn l1 wlLh buslness l1 was Lobe used as a sLraLeglc
buslness Lool raLher Lhan for a llmlLed purpose of daLa processlng An lnformaLlon sysLems
plan was drawn up whlch besldes oLher Lhlngs sLaLed LhaL Lhe organlsaLlon would go for
common sysLems across Lhe organlsaLlon lL would also achleve lnLegraLlon beLween all
sysLems emphasls would be on lmprovlng buslness processes Lo adopL besL pracLlces and
Lo cover Lhe enLlre supply chaln PPML wanLed Lo conslder only sLaLeofLhearL sysLems
and one whlch had a clear road map for Lhe fuLure lncludlng conducL of buslness over Lhe
neL 1lred of lnhouse developed sysLems Lhey wanLed a sLandard soluLlon and ln parLlcular
an L8 1helr ldea was Lo parLner wlLh a Lechnology vendor capable of Laklng Lhem forward
as Lhe buslness expecLaLlons lncrease
8 SA'S kCL

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PPML evaluaLed 8Aan and Cracle 1he overwhelmlng presence of SA ln Lhe auLomoLlve
secLor was one of Lhe lmporLanL reasons for selecLlon 1he cusLomer references spoke
sLrongly abouL SAs ablllLy Lo address Lhe needs 1he pro[ecL Look off wlLh a greaL sLarL lL
lmparLed oneday awareness Lralnlng sesslons Lo around 3 managers and key users
explalnlng Lhe pro[ecL and roles of core Leam members and users 1here were hlccups ln
beLween because of sLaff Lurnover aL Lhe lmplemenLaLlon parLners' end because of whlch
Lhe pro[ecL had Lo be exLended by a monLh Powever Lhey kepL varlous acLlvlLles on
schedule 1hey were one week behlnd aL Lhe lasL sLage of CoLlve
Compet|t|ve advantage
WlLh Lhe augmenLaLlon of 8uslness processes ln Ponda Lhere ls requlremenL of more well
organlzed producLlon processes WlLh Lhe lmproved and beLLer lnformaLlon and daLa on Lhe
buslness processes Lhere ls a qulcker approach Lo lmprove Lhe supply chaln managemenL
whlch comprlses all Lhe processes ranglng from Lhe sourclng of Lhe raw maLerlals Lo Lhe
producLlon and allocaLlon of Lhe flnlshed producLs As a resulL of Lhe enhancemenL ln
managemenL of supply chaln Ponda ls capable Lo respond efflclenLly Lo Lhe varlaLlons ln
markeL WlLh Lhe effecLlve and efflclenL lmplemenLaLlon of MlS Ponda ls capable Lo
respond swlfLly Lo Lhe exLernal envlronmenL as well as MlS made Lhe organlzaLlon able Lo
dellver efflclenL servlce and producLs and ls glvlng a Lough compeLlLlon Lo lLs compeLlLors
Whlle MlS ls very useful Lo generaLe daLa analysls and sLaLlsLlcal reporLs furLhermore lL ls
very helpful for creaLlng ManagemenL by Cb[ecLlves Lool SMA81 le speclflc measurable
agreed reallsLlc and Llmespeclflc approach ls used Lo seL Lhe ob[ecLlves
1he maln purpose of Lhls approach ls Lo evaluaLe Lhe employees' performance lor lLs
success Lhere ls a need Lo keep a consLanL Lrack of progress raLe lor Lhls MlS proves Lo be
besL because lL provldes managemenL reporLs Lo Lhe pollcy makers and all Lhe relevanL
lnformaLlon requlred



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10 kecommendat|ons
O 1o remaln compeLlLlve Ponda should glve a prlme lmporLance Lo lLs MlS sysLem
O lL should pay heed Lo Lhe problems faced by lLs lnformaLlon sysLem
O lor Lhe collaboraLlon and connecLlvlLy of Lhe employees Lhe maln lngredlenL ls Lhe
hardware paLLern aL Ponda so lL should sLrlve Lo keep balance beLween prlce and
hardware equlpmenL
O ln Lhe modern economy Lhere ls hlgh need for connecLlvlLy and efflclency so Ponda
should adapL Lo Lhese changes and adapL Lo changes Laklng place ln Lechnology
11 IMLMLN1A1ICN Ak1NLkS
Slemens lnformaLlon SysLems LLd (SlSL) were Lhe lmplemenLaLlon parLners 1hey lmparLed
lnlLlal Lralnlng Lo Lhe users and core Leam members 1hey also helped ln redeflnlng varlous
processes based on Lhelr experlence 1hey gave valuable suggesLlons for lmprovemenL aL
varlous sLages ln Lhe SLeerlng CommlLLee meeLlngs Lhey clarlfled varlous lssues and helped
ln convlnclng Lhe managemenL Lo make varlous changes
12 8LNLII1S 1C nnM
L8 helped ln lmprovlng quallLy access and usage of LransacLlonal daLa and sulLably
ellmlnaLed mulLlple enLrles 8esldes Lhere was no need for manual reconclllaLlon anymore
and operaLlonal processes were lmproved aL varlous sLages Crder processlng was
sLandardlsed across all funcLlons And realLlme lnformaLlon on producL cosL proflLablllLy
analysls dlspaLch and producLlon sLaLus was made avallable Loo