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Rediff.com  » Business » Maruti plans to shave 1gm off each part

Maruti plans to shave 1gm off each part

By BS Reporter in Kolkata
Last updated on: July 15, 2008 10:34 IST
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As a part of the ongoing effort towards adopting more efficient production systems as well as continuous cost reduction drives, Maruti Suzuki India has recently launched the 'one component one gram' drive that will reduce the weight of each Maruti car by 2.5 kilograms and will spell into a net savings of Rs 10 crore (Rs 100 million) for the company.

With everything else remaining same, lighter cars would mean more fuel-efficient ones, a Maruti spokesperson told Business Standard.

The programme was initially launched by O Suzuki, chairman and chief executive officer, Suzuki Motor Corporation in Japan about a month back and has been replicated in the Indian operations as well.

Each Maruti car has around 10,000 components and subcomponents that can be classified into 1500 categories.

A reduction in weight by one gram in each component would make the cars lighter by 2.5 kilograms, which when worked out at the rate of Rs 50 per kilogram would mean a savings of Rs 130 per car to Maruti Suzuki India, said the company spokesperson.

Maruti produced over 7.5 lakh cars last fiscal, and the net savings thereby could add up to Rs10 crore.

However, a point of caution was that the target weight reduction could not be at a higher cost, the spokesperson added.

Moreover, the drive would mean suppliers having to revisit their design and manufacturing processes. The policy was conveyed to the vendors at the annual supplier summit by S Nakanishi, managing director, Maruti Suzuki India less than a month back.

The response has been positive, claimed company officials. The company had 215 direct suppliers, who, in turn, employed tier-II suppliers.

Maruti will do monitoring at the level of the 1500 components.

Steel was the major raw material in the components. 

Earlier efforts by Maruti had seen the productivity across the value-chain go up by 45 per cent in three years.

The company had sought to discard wasteful practices in the manufacturing process at its own shop floors and eventually it was extended to the shop floors of its suppliers as well.

The 'Challenge 50' drive between 2003-06 had seen major improvements in the lines of lean management in the manufacturing process.

The Maruti Saga

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BS Reporter in Kolkata
Source: source
 

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