An Approach To Design A Logical Mis Model Of Maruti Suzuki India Ltd

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Page |1 Declaration We, Nilotpal Das (08DM024), Shounak Sarkar (08DM045),Pratick Gayen(08DM070) and Soumya Patnaik(08DM098) PGDM, (2008-2009) do hereby declare that this project entitled “An approach to design a Logical MIS Model on maruti Suzuki India ltd ” submitted to Prof. Babuli Sahu, is a bonafide record of research work done by us, in partial fulfillment of the requirements for the award of Post Graduate Diploma in Management from the Institute Of Management & Information Science, Bhubaneswar and has not been published anywhere else prior to this. Date: 26th October 2009, Place: Bhubaneswar Page |2 Maruti Suzuki India LTD Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Models similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment. Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Till recently the term "Maruti", in popular Indian culture, was associated to the Maruti 800 model. Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, has been the leader of the Indian car market for over two decades. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of New Delhi. Maruti’s Gurgaon facility has an installed capacity of 350,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 100,000 units per year and a Diesel Engine plant with an annual capacity of 100,000 engines and transmissions. Manesar and Page |3 Gurgaon facilities have a combined capability to produce over 700,000 units annually. More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti cars are on Indian roads since the first car was rolled out on December 14, 1983. Maruti Suzuki offers 15 models, Maruti 800, Omni,Esteem, Baleno, Alto, Versa, Ritz, Gypsy, A Star, Wagon R, Zen Estilo, Swift, Swift Dzire, SX4, and Grand Vitara. Swift, Swift dzire, A star and SX4 are maufactured in Manesar, Grand Vitara is imported from Japan as a completely built unit (CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant. Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzuki’s technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Maruti is clearly an “employer of choice” for automotive engineers and young managers from across the country. Nearly 75,000 people are employed directly by Maruti and its partners. The company vouches for customer satisfaction. For its sincere efforts it has been rated (by customers)first in customer satisfaction among all car makers in India for nine years in a row in annual survey by J D Power Asia Pacific. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Maruti’s mission to motorise India. Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a small player in the four wheeler automobile sector and had major share in the two wheeler segment. Suzuki's bid was considered negligible. In the initial rounds of discussion the giants had their bosses present and in the later rounds related to the technical discussions executives of these automobile giants were present. Osamu Suzuki, Chairman and CEO of the company ensured that he was present in all the rounds of discussion. Osamu in an article writes that it subtly Page |4 massaged their (Indian delegation) egos and also convinced them about the sincerity of Suzuki's bid. In the initial days Suzuki took all steps to ensure the government about its sincerity on the project. Suzuki in return received a lot of help from the government in such matters as import clearances for manufacturing equipment (against the wishes of the Indian machine tool industry then and its own socialistic ideology), land purchase at government prices for setting up the factory Gurgaon and reduced or removal of excise tariffs. This helped Suzuki conscientiously nurse Maruti through its infancy to become one of its flagship ventu Page |5 Maruti Suzuki has two state-of-the-art manufacturing facilities in India. The first facility is at Gurgaon spread over 300 acres and the other facility is at Manesar, spread over 600 acres in North India. Maruti Suzuki's facility in Gurgoan houses three fully integrated plants. While the three plants have a total installed capacity of 350,000 cars per year, several productivity improvements or shop floor Kaizens over the years have enabled the company to manufacture nearly 700,000 cars/ annum at the Gurgaon facilities. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. More than 50 per cent of our shop floor employees have been trained in Japan. Gurgaon facility also houses `K' Engine plant. The `K' family engine plant has an installed annual capacity of 240,000 engines and was commissioned in 2008. Spread over an area of 20,300 m2, the `K' family engine facility is part of the Rs 9,000 crore investment plan drawn by Maruti Suzuki and Suzuki Motor Corporation. The next generation `K'engine like all Maruti Suzuki earlier technologies is highly fuel efficient, while offering the best in refinement and performance. It will take the engine technology to the next level in India. A-Star is the first car to be powered by `K' family engine. The forthcoming models will be powered by other `K' family The in-line plant layout consisting of Casting, Machining and Assembly processes has high level of automation, effective material handling and inventory reduction techniques in place, aimed for high operational efficiency. The facility employs global manufacturing best practices like cold testing, 100% on line automated checks to ensure global quality. The Manesar facility Page |6 Manesar facility has been made to suit Suzuki Motor Corporation (SMC) and Maruti Suzuki India Limited's (MSIL) global ambitions. The plant was inaugurated in February 2007. At present the plant rolls out World Strategic Models Swift , A-star & SX4 and DZire.The plant has several in-built systems and mechanisms. There is a high degree of automation and robotic control in the press shop, weld shop and paint shop to carry on manufacturing work with acute precision and high quality. The plant is designed to be flexible: diverse car models can be made here conveniently owing to automatic tool changers, centralized weld control system and numerical control machines that ensure high quality. The plant at Manesar is the company's fourth car assembly plant and started with an initial capacity of 100,000 cars per year. This will be scaled up to 300,000 cars per year by October 2008. Diesel Engine Plant- Suzuki Powertrain India Limited Suzuki Powertrain India Limited the diesel engine plant at Manesar is SMC's & Maruti's first and perhaps the only plant designed to produce world class diesel engine and transmissions for cars. The plant is under a joint venture company, called Suzuki Powertrain India Limited (SPIL) in which SMC holds 70 per cent equity the rest is held by MSIL. This facility has an initial capacity to manufacture 100,000 diesel engines a year. This will be scaled up to 300,000 engines/annum by 2010. Page |7 NEW INITIATIVES IN MARUTI SUZUKI LIMITED (one stop shop to meet all your needs) In an effort to become a complete car company, Maruti has entered the car insurance business as well. It offers the customer all the advantages of settling insurance claims directly with any of the company’s authorized dealers. This business provides complete fleet solutions to corporate and institutions. Branded Maruti N2N, this service includes the following: customized car policies, economical car leasing, maintenance, servicing, registration, insurance, emergency assistance, accident management and eventual re-sale of cars. MARUTI FINANCE Maruti Finance offers the best finance packages to consumers across the entire Maruti range. The service is being extended across the country in a phased manner. MARUTI GENUINE ACCESSORIES A single point of contact,Hassle-free transactions,Emergency Assistance ,Virtually Cashless Repairs Post accident repairs and insurance support at any dealer workshop MARUTI TRUE VALUE Maruti has taken its first steps in the pre-owned car business under the brand name of Maruti True Value. Using their technological expertise, network support and the experience they have gained in the last 18 years, the company ensures the customers gets great value and completes the transaction zero hassles. Page |8 EXTENDED WARRANTY 4 years or 80,000 kms. Can be bought anytime during primary warranty, best at time of purchase. ANYTIME MARUTI Maruti Suzuki has also set up state-of-the-art call centers (operational in Delhi, Gurgaon, Mumbai, Chennai, Bangalore and Hyderabad) Branded Anytime Maruti, this 24 hour help-line clarifies all doubts and queries regarding Suzuki any time of the day or night Page |9 PRODUCT PROFILE OF MARUTI SUZUKI INDIA LIMITED LTD. ALTO - LET’S GOS The alto is a great combination of economy, practicality and styling. A runaway success on the roads of Europe, it exemplifies the benchmark in build, quality and reliability in a compact car. This is testified by the 24 hour endurance record set on August 3, 2003 of covering 3082 kms in 24 hours at an average speed of 128 kmph. P a g e | 10 BALENO – SURPRISING PERFORMANCE India’s true performance sedan is upwardly mobility, redefined. The 13 advanced noise reduction technologies ensure the cabin is quiet and peaceful. The flat torques of 132 Nm allows one to enjoy 94 bhp of refine power. Enjoying a cult following among those who appreciate technology as an art form, the Baleno is a truly awesome performer. GRAND VITARA XL – 7 - LIVE THE GRAND LIFE Live the grand life with the new GRAND VITARA XL –7. This luxurious 7 seater, 4 wheel drive sports utility vehicle comes equipped with a powerful V6 engine, 166 bhp of power and 236 Nm of torque. Which enables you to conquer any terrain with utmost ease? Enjoyed by both the adventurous and successful, the new restyled Grand Vitara XL –7 is now available in India directly imported from Suzuki, Japan. GYPSY – ADVENTURES UNLIMITED Be it the wild outdoors or the urban jungle, the Gypsy King glide by with ease. The adventurous streak runs through all the gypsy siblings. This 1300 cc off – road vehicle combines the raw of 80 bhp (at 6000rpm) with superb 4 – wheel drive maneuverability and a rugged frame (it’s available in both soft and hard top versions). It’s useful fifth gear, of course, delivers over drive for on – road cruising. OMNI – FITS ALL The Omni is truly India’s Original Multipurpose Vehicle. Today it is available in six avatars – 5 seater, 8 seater, cargo, ambulance, CNG and LPG. It meets diverse needs across different user segments and can double up both as a people carrier and a goods carrier. This faithful workhouse is easy on the pocket, yet tough on the job. VERSA - THE JOY OF TRAVELLING TOGETHER Equipped with twin AC, large sliding doors and flexible seating, the Versa encourages families and friends to enjoy long drives and gateways together. In spite of being so spacious, its design allows for easy maneuverability in the city. MARUTI 800 - CHANGE YOUR LIFE It has gone beyond being just a car; it has actually changed the lifestyles of countless people, by bringing the joy of motoring to millions across the length and the breadth of the country. Standing testimony to this claim is the fact that more than 2 millions Maruti 800s have been sold till date. Today, India best selling continues to be the final word on value and economy at the entry-level segment. WAGON R-INSPIRIED ENGINEERING The Wagon R’S original tall body design, spaciousness, ergonomically designed interior and flexible seating all set it apart from other cars. It complements the P a g e | 11 buyers unique personality enables him to live a multi-dimensional life by the sheer excellence of its engineering and its versatility. ZEN –SURRENDER TO THE NEW ZEN If you are looking for a car with drop – dad looks and unmatched performances, then you need look beyond the Zen. With its new contemporary and aggressive look, the Zen preserves its core values of driver appeal, unmatched reliability and economy. 600000 satisfied customers in India and around the world bear testimony to this fact. ESTEEM – PERFORMANCE, QUALITY AND FUEL EFFICIENCY Undoubtedly one of India’s favorite entry – level “C” class vehicles, the esteem is the perfect combination of power, comfort and economy. It’s also the preferred choice of rally drivers across the country for its performance and reliability. The Esteem offers the option of an 85 bhp petrol engine for those who desire power and a 57 bhp diesel for those who value economy. Not surprisingly, it tops its class in quality surveys. SWIFT- YOU ARE THE FUEL The hot looks, sexy interiors, the automatic climate control, the air bags, the power steering. …………………Moreover, all so affordable. The wait is over. Swift has entered MUL’s portfolio. What are you waiting for? A-STAR-STOP @ NOTHING Powered by state of art 998 cc engine, it’s the best fuel efficient car in its category with, mileage coming around 20km per liter. SX-4 – MEN ARE BACK Revolutionary European design, world class “drive by wire” .Most spacious in its class, Steering mounted audio controls; with maximum ground clearance, high on safety with dual airbags. SWIT DZIRE- THE HEART CAR A car having everything you desire stunning looks, luxurious interiors, enough power to capture your heart. Just slide in desire and take it for a spin. Its sure steal many of hearts including yours. Prepare a Flow Diagram of Company Processes P a g e | 12 COMPLETE DEALERSHIP INVOLVEMENT: CUSTOMER APPROCHES Showroom Lobby Manager Guard GUARD Sales person Manager, GM, Sales sales Customer Care As we can see from the above pictorial, there are several touch points for a customer at a dealership. All touch points have their roles and responsibilities defined. Right from the moment when the guard opens the door of the showroom and the customer walks in, to the time when the customer drives away with the car after the delivery process, the customer interacts with several people in the showroom. It is very important that everybody in the showroom performs to the best of his/her ability in order to make the customer feel completely satisfied with the showroom experience. P a g e | 13 PROCESS FLOW There are three broad processes at a showroom.  Pre-sales  Sales  Post –sales All these are inter-related to each other. The pre-sales process is very important because if a customer has a satisfying experience during this process, it greatly increases the chances of him purchasing the car from your showroom. At this stage, the customer is indecisive as to which car to buy and from where to buy. Walk in Enquiry Telephonic Enquiry . Product Demonstration Test Drive The pre-sales activities include: • • Cold Calling and Identification of Prospects Creation of Customer Card P a g e | 14 • • • Acquire Knowledge about MUL ‘s range of cars, competitor cars Knowledge about other allied services like finance, insurance, pre owned cars, extended warranty etc. Knowledge about accessories, range offered, prices etc. and about preventive maintenance of the car. THE SALES ACTIVITIES INCLUDE: • • • • • • • • • • Visit the prospects Understanding needs of the prospects Give a proposition to the customer. Create interest and preference for MUL Give a detailed demonstration and test drive Provide clarification to queries and handle objections Follow-up with the customer Secure order from customer Offer allied services like finance, insurance, accessories etc. Advice customer on all matters related to his car. In case there are too many Sales cases, a special focus is required to serve these customers since ultimately, the customers are also the showroom’s customers and there are suggested ways to handle them. Pre Delivery Process The thumb rule says, “ Promise your customers a little less than what you are capable of delivering and deliver a little more than what you promised to your customers.” There are certain procedures such as the sales executive should ensure that the details of his cars planned for delivery should be given to the PDI-in charge on the previous day, he should act as a single point interface to complete all formalities and should be present at the time of delivery and actively take part in the delivery process. The Delivery Day This is the time when the dealership has to go an extra mile to ensure a memorable experience for the customer. There are certain prescribed rules such as each dealership should have a Vehicle Delivery schedule board such as the following: S.N o Customer’s Name Vehicle Details/ Chassis No. Delive ry Time Salespers on Name Status P a g e | 15 The Delivery Process & Ceremony A service advisor is called and all operations as per the Delivery Checklist (such as basic operations, warranty policy & free coupons, feedback forms etc) are explained. A photograph of the customer along with the vehicle is taken and delivered to the customer’s residence. The CCM should do a brief ceremony and hand over the gift/bouquet to the customer. GM/Sales Manager should meet each customer and thank him/her. Customers are generally inquisitive about the engine, AC and fuel economy of the vehicle, Warranty and service policy and tips to maintain their car better. There are formats for the sheets to explain the above queries. The delivery timing is also important, as there are instances when customers want to take delivery of their car only on a particular auspicious day/time. This causes ‘bunching’ of deliveries and the chances of not being able to provide adequate customer care are high. This affects the SSI score. The DSE should remember the following points: • • • • • • Ensure timely delivery of the vehicle. Advise on service and warranty Gives tips on preventive maintenance of the car. Ensure that the entire delivery process is hassle free Make the delivery a memorable experience for the customer. Maintain relationships with the customer Post Sales Follow UP (PSF) P a g e | 16 PSF should be done in order to get first hand feedback from the customer about the experience they had during the sales & delivery process. Before staring the PSF process, there is a PSF sheet for each customer. The first PSF is obtained within 72 hours. All dissatisfied customers’ PSF sheets should be flagged with red color flags, customers not contacted with yellow. Format for Reporting the Post Sales Follow-Up (PSF) Parameter A Number of cars sold B Number of customers contacted C PSF percentage (B/A *100) D Number of satisfied customers E Number of Dissatisfied Customers F Satisfaction % (D/B * 100) G Number of dissatisfied customers attended & complaints resolved List down top five reasons for dissatisfaction: 1. 2. 3. Value P a g e | 17 4. 5. Counter measures taken to address the above reasons of dissatisfaction: A second PSF call is made 15 days after the delivery with a suggested script. Feedback Form System The feedback form system is a very important tool to obtain customer’s feedback on the experience that they had during the purchase of their car. It has a defined format. There is a lucky draw to get high percentage response. Customer Complaint Handling System. Complaints are an opportunity to strengthen relationships with the customers and even enhance their confidence. There are specified some rules to handle them. Customer Complaints received by dealer are through         E-mail Internal Feedback Forms Direct Maruti Udyog Limited Telephone PSF Letter Consumer Forum / Legal Notices P a g e | 18 Steps to be followed after receiving a customer complaint. CCM should give a control number to all complaints received & record the same in the customer complaints control register. CCM should get in touch with the customer on the phone & express regret on the inconvenience faced by the customer Take immediate action to ensure that the customer complaint is resolved. Write a letter of apology to the customer The concerned DSE should visit the customer, hand over the letter and take satisfaction note from the customer. Send a copy of the letter & the satisfaction note to MUL and also file a copy of the same in Customer complaints Register/File(for complaints received from MARUTI.) Discuss all customer complaints in the weekly meeting of GM (Sales) on SSI with the entire showroom staff. Necessary counter measures should be taken to ensure that such complaints are not repeated. Review of Customer Care Activities. The review of customer care activities is done through morning meetings and weekly meetings on customer care. The documents that are necessary during the P a g e | 19 weekly review are: PSR related, Internal SSI forms related, MUL related and other information related. Customers for Life A week after the delivery, the concerned sales person must fix an appointment with the customer and visit him along with the service advisor. He should personally hand over the photographs clicked also the vehicle’s registration certificate and try to become the customer’s car advisor for life and never lose touch with the customer. Show Room Ambience The hours of operation, outside and insides of the showroom along with reception, car display area, selling area, customer lounge and delivery area should be taken care of. Customer Meets Organizing customer meets helps in improving SSI, helps in introducing the workshop staff to the customers and in getting referrals and there are guidelines for the same. Marketing Activities: Marketing is based on target. Maruti gives the targets, which are equally distributed to the marketing teams. To achieve the targets, different marketing activities are planned and followed. The targets are easily achieved and to encourage the employees different incentive schemes are placed like spot incentive, slab incentives etc. The following activities are done to achieve the targets:  Road Shows: 2-3 times a month. The marketing personals are involved in the road shows as per the nomination (one from each team but not more than four)  Tele-calling  Direct Sales  Personal Reference  Advertisement  Leads from Maruti P a g e | 20 Presently as per the targets, efforts are made in different areas of activity to capture the data and to generate the leads. Further efforts are made to convert the leads into prospective customer. This is how effort estimation is done. Activities Road Shows Tele-calling Direct Sales Personal Reference Advertisement Corporate Sales Targ et Lea ds Actual Sale Conversion Ratio The marketing department is divided into 5 Teams. For all the different marketing teams, one Team Leader is assigned. The team leaders take care of their team’s activities and report to the marketing manager that is further reported to the vice president. The marketing is totally target based and based on targets given by MUL, the task is distributed to different teams. The customers are handled by the same personnel from the beginning to the end. Spot incentive Schemes etc is placed in the system to motivate the employees. The conversion and Target fulfillment is traced out via the software. Corporate Sales The team of four people is actively working for this area. The data is given by Maruti and the rest is generated by self-effort. Finance Process:  The executive completes all the formalities related to the Finance and verifies the documents.  The FI form is filled by the Executive. P a g e | 21  With the verification checklist the verification is done  When the Cheque and other documents are found correct the Disbursal Advice Form is filled which is tallied by the Accounts Department. To track the verification record, a verification status register is maintained. Reception and Lobby Manager The lobby manager takes care of the customers coming to the showroom.  She asks the purpose of their coming and sends them to the concerned executive.  Gets the DSA’s forms filled up.  Takes care of the car polishing & showroom decorating.  Updates the magazines regularly.  Records the enquires and distributes them to the concerned persons.  Displays car delivery schedule on daily basis.  Offers test-drive. Delivery The daily delivery schedule is displayed on the board. At the time of delivery the discount detail sheet and delivery checklist is filled to avoid the problems. The barriers in delivery are bank approval and Client’s personal problems. Customer Care The customer feedback is taken after 72 hours of the sale. If any problem exists, the marketing personal meets the client directly. The problem is sorted out to make the client satisfied. When the client is satisfied, a letter of satisfaction is got signed by the client. To trace the satisfactory level of the customers, customer feedback is taken via Customer Feedback Form. If the marks in the customer feedback form are less than 7, an apology letter is sent to the client, the problem is sorted out and the client is treated with a token of gift. When the client is satisfied, a satisfactory note is got signed by the client. P a g e | 22 A customer feedback form by the Maruti is also filled. To maintain relationships with clients: gifts, bouquets and greetings are sent occasionally and schemes are introduced. The source of customer complaints are: Complaints from Maruti, Direct complaint, Compliant from the customer feedback form and via calls. To keep track on them, a customer compliant register is maintained. The complaints are logged-in the register. Customer Care Manager (CCM) The CCM takes care of the complaints and initiates corrective and preventive actions. The CCM makes the respective person know about the Complaint and when the problem is solved, the compliant register is updated. The lucky draw system is placed to encourage the customer to give feedback. The CCM is responsible for the Delivery Ceremony, sends the snaps of the ceremony to the clients, and makes the client know about the feedback form. If the client has any, compliant he can directly meet the director. Accounts     Reconciliation is done once in 7 days. Sales tax on quarterly basis. Sales (Suppliers Maruti & Accessories) Analysis Daily Basis. A retention period of 45 days is given for payment. EDP(Electronic Data processing) In the EDP Department following are managed:  Post Sale Process is managed.  Sales Analysis is done.  Backup is taken time to time. P a g e | 23 HR The HR manager sets the KRA’s for the managers. She is responsible for the employee details and their training needs. She also monitors the satisfaction level of the employees. Training Maruti arranges the training at several intervals. The training is mandatory for all the employees. The training schedule of all employees is maintained by the HR manager. DMS (DATA MANAGEMENT SOFTWARE) Today’s market is a customer-oriented one, where the customer is the king. If a person wants to purchase something, he would like to make enquiries at all reachable sources. Now it depends upon the seller that how efficiently he manages these enquiries and makes efforts to convert the same into productive ones. It is very important to keep track of each and every enquiry until and unless it is not converted or closed. It is also important to keep an eye on the marketing team; so that you know what they are doing in market and what response, they are getting from the market. DMS can keep a record of all enquiries and can generate timely reports whenever required. At the time of enquiry feeding, it will ask for all required details. After collecting all information, it can generate a Performa Invoice/Offer Letter for the customer. DMS not only generates Performa Invoice or allot the enquiries to sales executives, but it will keep record of the enquiry until and unless the enquiry is not converted or closed. DMS generates several reports that help the management as well as the sales team. It generates reports like enquiry register, booking register, test drive register, visiting register, pending enquiry register, enquiry lost with reason, per day enquiry list, closed enquiry register, conversion ratio, expenses per enquiry, target v/s achievement report (executive wise/overall) and many more that will definitely help Maruti who believe in customer care and 100% conversion of enquiry. P a g e | 24 The minimum system specifications for using DMS are: o o o o o Pentium PC (with CD ROM Drive to install the s/w) 80 Column DOT MATRIX PRINTER (can be shared within the network) Windows 95/98/Me or Windows NT/2000/XP 64 MB RAM 200 MB free hard disk space There are several DMS Forms, which are described below: Model Details This section is categorized into three options. They are: Basic Models As the name itself suggests, the information about all the basic models have to be entered using this form. An important thing is the availability of the color option. That means within each & every basic model, there is an option to allow/disallow the color’s availability. Suppose, if you select the non-metallic option for a particular basic model then you can see only non-metallic colors to select/deselect in the model variant detail form. P a g e | 25 Model Variant To make an entry for a variant model, it is necessary to select its basic model. Now, you have automatically got the information of the colors availability. If it is “Metallic” then there you have two frames (one is price detail & the second is colors detail for the metallic) to specify the information regarding that option. The other frame (which belongs to non-metallic option) is disabled. If you have allowed both color types in the color availability box of the Basic Model Master, then you are free to make entries into the “Metallic” and “Non-Metallic” frames. There are options to enter sale price, booking price, RTO amount, and insurance amount & handling charges. After this, select (put ticks) the colors from the frames that are available with the model. Only the selected colors will be displayed in the enquiry form with this model. There is an option - “Active” - to make you free from the burden to select the models from the bunch, in the enquiry form. If you select “No”, then the variant model will not be displayed in the enquiry form, but still it will remain in the database. P a g e | 26 Accessories Details In this form, you can specify the details of the accessories and basic models on which these are applicable. You can specify the rates of the accessories along with the associated model. According to your selection, you will have the list of accessories in the booking form with their sale & purchase price. You can change the price of the accessory in the booking form, which is applicable to that sale only. Please note that the accessories specified here are free and hence their prices will not be added in the vehicle’s cost. Color Details In this form, you are having the options to add or modify the model colors. According to your specification of the colors, you will have the list of the colors in the Model Variant Details form (In Metallic frame you will have the list of the metallic colors and in Non-Metallic frame you will have the list of the Non-Metallic colors). Executive Details P a g e | 27 This form is used to create an executive profile. You can make a new entry as well as change an existing entry. A photograph of the executive can also be scanned into the system and can be saved with the profile. A username and password must be provided if you are making a new entry. This is because DMS considers each executive as a user with the operator level rights. He has to feed his entries and alter them on his own. In some companies, the executives may not be directly using the software. For them, we have provided a User Manager with the help of which you can create a new user with manager level rights. Financer Details In the financer master form, we are maintaining all the information related with the finance company. Only the company name & the city in which it is situated have to be entered. Insurance Details Here you can maintain the information regarding the insurance companies. Only insurance company name & its working city are necessary to make the alteration in to that form. Status Details The status details are one of the most important features of AutoSoft. The status that is being entered defines the exact position of an enquiry. Hence, it is very important to select an appropriate name for the status, so that it can be selfdefining. The ‘Close’ field is used to determine whether an enquiry with the given status is active or not. We are providing a list of most commonly used status names and we think that these may fulfill all your needs. However, in case if you want to enter or alter a status you can do it with the Status Details form. Some predefined status is related with report generations are locked from changes. The others can be altered as your requirement. Area Details This form can be used to manage various work areas in your dealership. The enquiries can be categorized into various areas, so that in future you can pay more attention on a specific region where your market is strong and maybe you can arrange a camp in that area. Mode Details P a g e | 28 There can be various ways through which an enquiry can be made. These are the enquiry modes, which can be specified using this form. Mode is basically used in the Enquiry Details form to maintain the customer communication with our company. Training Details The strength of any organization is its manpower. Each organization would like to have executives who are well trained so that they can be more productive. The vehicle manufacturers conduct several trainings so that they can achieve their goals. In the Training master form, you can enter the information about the training, which have been conducted during a particular time period. We are also maintaining the information regarding the attendance of the executives in a specific training. That is, how many executives out of the given list have attended the training? With the help of these training details we are generating various MIS reports. The details provided here can help the management to find out an efficient person for a special task. Searching facility is also available, so you can find out the total information of a particular training with just one click over there. Offer Details In today’s market, each dealer is facing very tough competition and to overcome this competition, he may have to put on some attractive offers for the customers to enhance the overall sales. The Offer Details form is used just to maintain such special offers that are applicable to various basic models . Transaction Forms Mainly there are three daily transaction forms available for the users of DMS. They are: Enquiries Form Status Updating Form Bookings Form Apart from these, a target setting option and enquiry allotment option for the executives is also included in the Daily Transaction Section. Let us discuss them in detail: - Enquiry Form: This form can be used to enter the details of a new enquiry as well as to update the details of an existing enquiry. As being an enquiry P a g e | 29 tracking system, this form is the most important input interface. The details furnished here are displayed in the reports related with the customers. This form consists of some mandatory and non-mandatory fields. As in the other forms, all mandatory fields are marked with a red star. If the executive is not allotted, the enquiry will be treated as DIRECT ENQUIRY. The user can select the basic model from the list and the model variants will be displayed accordingly. Colors can be metallic or non-metallic, depending on the specifications of the basic model. The colors displayed in the list are filtered according to the model variant and the metallic/non-metallic property. The quotation can be printed from the same form. If the customer is interested in more than one model, he can be given more than one quotation and the details of all these models will be saved in the database. The user can specify the next meeting date on the enquiry form so that he can get a reminder on the particular day. To minimize the duplicate entries, we have made it compulsory to enter at least one address or phone number along with the name of the customer. If any other entry is found which have the same set of Information, an alert is generated. P a g e | 30 Status Updating form: This form is used to update the status of an existing enquiry. The status can be updated via the telemarketing form. Remarks can also be saved along with the status each time. The user can directly call the customer from the system just by clicking on the Call icon. This feature requires that you have a modem installed with the computer. Also the phone dialer provided in the operating system must be installed. You can do this by selecting the Add-Remove Programs option from the Control Panel. Select the Windows Setup page from the window. Click Communications -> Phone Dialer. Select install. This will install the phone dialer. To update the status of an enquiry, open the form from the menu by selecting ‘Daily Processing’ -> ‘Status Updation’ or by clicking the button given on the toolbar. After this, you can select the desired enquiry shown in the table by clicking on it and you will be taken to a different interface with the help of which you can change the status. Many search options are provided in the form so that you can select the desired enquiry. A list of closed enquiries can also be displayed in the table by checking the box in the top left corner (‘Show Closed Enquiry’). After selecting the enquiry from the table, the ‘Enquiry Remarks’ form is displayed. If you want, you can contact the customer at his contact number using the dial facility provided in the software itself. You just have to click on the ‘Call’ button next to the phone number to be dialed. After contacting the customer you can select a status from the list and enter some remarks in the ‘Remarks Detail’ table. A contact mode can also be specified along with the remarks. Booking Form: If customers booked with us, you can enter the booking details into the database using this form. The user can feed the finance, insurance and accessories details so P a g e | 31 that he can facilitate from the data. If the birth and marriage dates are entered, the entries are saved separately to display reminders. A printed output of the booking form can be obtained by clicking the Print button. Enquiry Allotment Form: This form is very useful for those dealerships in which the enquiries are allotted to different executives in a bulk. All the enquiries are displayed in the table and the user can allot an enquiry to any other executive. He also can change the area of the enquiry. Many details apart from the name of the customer are shown in the table, like model, address etc. so that proper allotment can be made. The existence of this form has eliminated the need of searching each enquiry through the enquiry form and changing the executive/area one by one. Executive Monthly Targets: The management can set some targets for its working executives, so that they can be more productive. DMS can help you to set some targets for the executives and generate several reports to find whether the targets were achieved or not along with any deviation. There are two different options to set the targets, which are described below: Test Drive and Cold Calls Target: With the help of this form, the user can set a target number of test drives and cold calls (enquiries generated by the executive) for each executive for a specific month. Conversion Target: This option opens the monthly planner for the executives. Using this form the user can set various monthly targets in bookings, accessories, discount, payout percentage etc. These targets can be set separately for each basic model. The targets are set for a single booking. An overall finance target can also be set for each executive. The target achievement reports based on these information’s helps the management to make a judgments about an executive’s performance. The reports that DMS can generate are:     Executive reports such as action plans, reminders etc Reports for registers such as Enquiry, booking, mode wise, Area wise etc Transaction reports such as per day enquiry, model wise enquiry etc MIS reports such as expenses per enquiry, conversion ratios etc P a g e | 32   Analysis reports such as Target vs. Achievement Training reports and other general reports SALES AND TRAINING DEPARTMENT Vision “Equipping MUL with the requisite mindset, knowledge and skills, and enhance the business value of our associates to sustain our position of leadership and build customer loyalty to MUL” Objectives      To ensure multiple knowledge and skill development of DSEs required selling cars and handling competition Consultative Selling Approach. Continuous Feedback and Performance monitoring. To employ training as a tool to achieve customer delight and customer loyalty Make DSEs as Car Advisors and be a single window interface with the customer Organization structure DDVM (MSD) DPM (DD1) DPM (SAT) DPM (DD2) FSDMs in RO Executive (SAT) FSDMs in RO Functions of the Sales Training Department P a g e | 33 The Functions include: Training and Development of dealer Sales Executives Recruitment of Sales Executives III.CD Based E-learning Training and Development of dealer Sales Executives Development and Updating of Training Modules The Sales Training Department develops new modules along with training agencies based on market requirements, specific needs identified and feedback received Conducting Training Annual Training Calendar is fixed based on: Number of Sales Executives in the sales network • Training path requirement of Sales Executives Review of training programs done in the previous year • Market Share/ Market situation/Focus areas and new product launches • • Training conducted regionally based on fixed monthly calendar. Training Path /Norms for all Dealer Sales persons are as follows:  All Dealer Sales Executives need to attend Induction Training before or within a month of joining the dealership (depending on when the program is scheduled in the region)  After Induction then the Sales executives needs to attend a segment B program.  They also should attend ‘ Car Advisor for life Program’ which trains him to be a one point contact with the customers handling all his car related needs like finance, insurance, extended warranty, MGA etc and how to develop and maintain relationship with customers P a g e | 34  After gaining experience, he can attend other courses like segment C etc. 1. Monitoring and feedback: Monitoring and Evaluation of Sales force is done on a continuous basis. Pretests and post-tests are conducted during training. Feedback is taken from participants on trainers and from trainers on participants. Monitoring is also done through tests and audits at the dealerships. 2. Communication:  Sales Training Department sends monthly Newsletter “Creating Winners” to all DSE’s. It is a monthly communication containing articles on various aspects of product knowledge, selling skills, market etc. It is a forum for effective communication of new ideas and strategies. It also provides two-way communication.  An Annual Selling Skill Contest is organized to test the selling skills of the sales executives. It is conducted at regional levels and culminates in an all India level contest. RECRUITMENT OF SALES EXECUTIVES: SAT has developed a CD based Test for recruitment as a part of Maruti Recruitment System (MARS). The test checks sales aptitude and reasoning and is a pre- interview shortlist device. It helps dealers recruit the right profile of people for their dealership. The Regional Office will be involved throughout the implementation of the MARS while recruiting Sales Persons. All Sales Executives need to be registered with Maruti after recruitment through extranet. A unique ‘Maruti Suzuki Personal Identification Number (MSPIN) is being issued which the DSEs have to remember and use in all communications like Trainings, reward schemes etc CD Based E-learning SAT is now looking at reinforcing classroom training through CD and E- learning modules. This module would help executives refresh and update their knowledge they would have gathered in classroom trainings. P a g e | 35 Sales Operation Standards (SOS) In order to ensure 100% satisfaction of customers during the sales and delivery process, certain basic minimum standards have been laid down, which have been named as “Sales Operation Standards.” These are a set of requirements in terms of infrastructure and workflow processes that should be met at a dealership. By adhering to SOS, Maruti have a much higher chance of ensuring customer satisfaction and hence retention. A satisfied customer is the most valuable asset for any organization since it is this satisfaction which will decide the customer’s future intention of the 3Rs i.e. Recommendation, Revisit, and Repurchase; 3 very important tools which help MUL in increasing their business. Therefore satisfying customers 100% of the time should be an obsession and is achieved by ensuring that the SOS are in place all the time. CEO ORGANISATIONAL STRUCTURE: Manage r Accesso Manage Manage r HR r MI & Call Centre riesAamir M. GM (Sales) Manager DSA Sales Manager Sales Manager Corporat e Sales Khan Manager Loan Deliver y Manag er Lobby Manage IT Support Staff CCE Team Leader Manag er Auto Loan rVinee ta Sales Consult ant Sales Consult ant Sales Consult ant Sales Consult ant MI staff: Field Execs, Telesales Accessorie s sales staff: Counter Support staff: Billing, Service Advisor etc. Support staff: Drivers, Peons etc. P a g e | 36 FISHBONE DIAGRAM (Tools for generating ideas ) P a g e | 37 Cause and Effect Diagram and Situation Analysis: From the above diagram we can analyze that the main problems leading to customer dissatisfaction are placed on fish bone diagram. The four attribute as shown above are responsible for their own causes thus known as cause and effect analysis: Customer himself is responsible for dissatisfaction if he could not explain his faults or becomes impatient. Employees working in the organization are also responsible as can’t understand the customer, may be lacking general knowledge on job or work not completed on given time. Again the working system plays a major role if they are not satisfying the given standard and required machines and tools may not be available, absenteeism of workers can also taken into consideration. PARETO CHART (Tools to organize data) Problems Faced High price Employee experience Poor Service Equipment Problem Delivery Time Billing Problems Frequency 9 6 5 5 3 2 Cumulative Percentage 0.30 0.50 0.66 0.82 0.92 1.00 P a g e | 38 Table 1 Table 2 P a g e | 39 Analysis of Pareto chart: Here we are focusing on critical issues by ranking them in terms of importance and frequency the problems faced by customers as shown here the major problem is the price and according to the priority the problems are arranged. Standard Unit of Measurement and the Time Period is studied. The time period studied is to be of a reasonable length of time to collect the data. As shown in table one the problems are arranged in decreasing order so from the graph it is clears that which is a major problem in customer point of view. Then on the second table we are making a line chart where cumulative frequencies of the problem occurrence are shown. On the vertical axis we are taking the cumulative frequency and on the horizontal axis we are taking the problems faced by the customers in maruti Suzuki. CONTROL CHART: Here control charts are used for measuring the CUSTOMER SATISFACTION INDEX (CSI) Here Q4 08 CSI TARGETWAS = 803 P a g e | 40 CSI Factor wise ScoresC I fac r S to Q -0 4 8 CI S 76 8 75 8 72 9 79 8 72 9 72 9 72 9 79 3 L test F FC I(D te:a 2 S a 2 -1 -0 8 2 8 ) Ag v^ CI S 79 6 73 7 70 7 75 7 74 7 74 7 76 9 72 5 S ic D ery (1 % erv e eliv 0 ) In S ic E erien e (9 ) - erv e xp c % U er frien ly S ic (1 % s d erv e 4 ) s ic e in erv itiatio n S ic A v o (1 % erv e d is r 1 ) S ic Q ality (1 % erv e u 8 ) V ic P eh le erfo an e (2 % rm c 8 ) O E A LC I VRL S 71 5 76 6 70 6 74 6 76 5 77 5 80 0 75 6 ANALYSIS OF THE WEAK AREAS AND ACTION TAKEN: Weak CSI attributes taken Service delivery (768) M of the customer are given same ost delivery time of 5:30 Service advisor not free at the time of delivery as he is occupied w other ith customer Fairness of charges w hile Job card opening and delivery Inconvinient operation hrs (Car delivered till 7:00) Delivery time is staggered so that he can give time to all customer as per job to accompany at the time of delivery Transperency of all charges to be carried at the time of estimation and explaning it to customer on recieving and delivery Car delivery tim extended till e 8:00Pm and informed to customer at job card opening Separate family lounge and smoking zone made Peon instructed to offer tea every hour Tracking Sheet M ade Observations Measures 1 2 U ser friendly service (770) 3 Inservice experience (773) N fam lounge and sm o ily oking zone Peon w not offering tea very hour as P a g e | 41 Role of MIS:Collection of Appropria te data Appropria te destinatio n processe d Dealer management system and the proposed MIS model Dealer Processed Collection Data D.M.S Showroo m A Appointm Public ent B C 1 Requiremen Team t Corporation CIS Persona Bank l visit 2 P a g e | 42 1 Requirement Yes No 2 Order Booki ng Yes No Sell Formali ty Delivery DMS 1