Operations Management at Maruti Udyog

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

Case Details:


Case Code : OPEA001 For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges



Case Length : 18 Pages
Period : 2003
Organization : Maruti Udyog Limited
Pub Date : 2004
Teaching Note : Not Available
Countries : India
Industry : Automobile


Maruti Udyog Ltd (Maruti), a joint venture between Suzuki Motors of Japan (eleventh largest vehicle manufacturer in the world and the fourth largest manufacturer in Japan) and the Indian government, is the leader in India''s automobile market. Maruti has the widest product range among Indian car manufacturers, with ten basic models and more than 50 variants. In 2003, Maruti produced 359,960 vehicles, operating at a capacity utilisation of 103%, against the industry average of 57.8%. Even though Maruti is well ahead of its other rivals, its market share has been declining. As competition intensifies, Maruti has realised the importance of getting closer to its customers.

The company has launched various initiatives to improve customer service. Maruti has improved its operational efficiency by increasing productivity, cutting costs and launching new products. By its quality initiatives, Maruti has reduced its defects per vehicle significantly. This case discusses the important measures introduced by Maruti to achieve operational excellence.


Maruti Udyog Limited, Cutting Costs, Operational Excellence, Quality, New Product Launch


  Page No.
Introduction 1
Background Note 2
Manufacturing Process 4
Improving Operational Efficiency 8
Improving Quality 11
Vendor Management 13
Leveraging Information Technology 16
Looking Ahead 17
Exhibits 4,5,7,9,15


Maruti, Suzuki Motors, Operations management, Operational efficiency, Maruti production system, Cost reduction, Vendor management, Inventory management, Total productive maintenance (TPM), Quality, Productivity

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