Operations Management TOPIC : HERO MOTOCORP

Presented BySr. no Name Roll No.

1 Keval Chaudhari 65

2 Suraj Mishra 88

3 Pratik Pradhan 73

4 Vijendra Goswami 77

5 Kaustubh Khairnar 84

6 Vivek Tambe (Absent) 111

Presentation Flow

SR. NO TOPIC

1 Introduction of HERO Motocorp

2 Plant location & Policies

3 Hero Motocorp products

4 Manufacturing Process

5 Output and Logistics

6 Quality Control

Introduction to Hero Motocorp

Industry

Type

Automotive

Public Company

Founded 19 January 1984

Founder(s) Brijmohan Lall MunjalHeadquarters New Delhi, India

Area served India, Sri Lanka

Key people Deya Varadh Sens (Chairman)Pawan Munjal (MD & CEO)

Products Motorcycles, scooters, three-wheeler vehicles

History & Background

• Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest manufacturer of two - wheelers, based in India.

• In 2001, the 'World No.1' two-wheeler company.

• In 1984 as a joint venture between Hero Cycles of India and Honda of Japan.

• one of the most successful joint ventures worldwide.

• In December 2010, the board of directors terminate the joint venture.

• Since the beginning, the Hero Group relied on their Japanese partner Honda for the technology in their bikes.

• Honda will continue to provide technology to Hero Honda motorbikes until 2014 for existing as well as future models.

• In August 2011 the company was renamed Hero MotoCorp with a new corporate identity.

Environment PolicyEnvironmental performance on a continuous basis, as an intrinsic element of our

corporate philosophy

Quality PolicyExcellence in quality is the core value of Hero MotoCorp philosophy.

Safety Policy

We believe that safe work practices lead to better business performance, motivated workforce and higher productivity

Products By

Gear-less Scooters

Hero Maestro :

• 2nd Scooter by Hero(2012)• It’s a boy thing• 109CC• TG: YOUNG RIDERS & STUDENTS

Hero Pleasure :

• 1st scooter by hero(2008)• “why should boys have all the fun?”• 102cc,4stroke engine,• Max speed :77kmph• TG: Girls & working women

All New Hero DUET :

• 3rd scooter by hero(2015)• 110cc• Unisex “Family scooters• Developed by hero R&D• All metal body i.e. more durability• USB socket

Commuters BikesThe iconic Hero Splendor :

• World’s highest selling single model• First Launched in 1994 as a commuter bike• Powered by 97cc engine• Most fuel efficient commuter• 90 kmpl by Arai

• The first ever bike with intuitive i3S Technology

• Automatically switches off the engine when idle & on as soon as you press the clutch

New Hero Ignitor :

• The new generation 125cc ATFT engine• Powerful bike • Better fuel economy

New age Hero Super Splendor :

• New generation ASFS engine• Deliver better millage via swirling

combustion of, air and fuel

• World’s highest selling single model after splendor

First Launched in 2001 as a commuter bike

Powered by 97cc engineMost fuel efficient commuter84 kmpl by Arai

• With fuel injection sensor• Temperature control technology

• Hunk launched in 2007 150cc

• Launched in 1999• 156cc• Discont. In sep.2005• Relaunched in 2006 with• Expensive 150cc bike• Highest price amongst all 150cc

Launched in 2014Cafe racersingle seatersingle hood representer

• Impulse• First bike after dissolution of

joint venture in 2011• 150cc off road bike• TG: professional rider

Premium Bikes Hero Karizma R :

• Powerful engine which churns out 19.2 BHP• Air cooled 223cc engine• Max speed of 126 kmph

Hero Karizma ZMR :

• Programmed fi engine with oil cooler• 16 bit ECU processor• Max speed of 129 kmph

Hero Practises 5S Approach

1.Seiri - Put things in order2.Seiton - Proper Arrangement3.Seiso - Clean4.Seiketsu - Purity5.Shitsuke - Commitment

The Manufacturing Process1. Procurement of raw material – from almost 117 vendors – It consists of bolts, tyres, springs etc– LUCAS-TVS, MRF, LUMAX, etc. are their providers

2. Inventory of raw material – Inventory holding period is reduced substancialy because of JIT– Earlier it was 20-25 days & now its 5 days

3. Time lead and time lag• As hero is an assembling unit there is no

–Time lag –Lead time between the two processes

4. Warehousing • Capacity of keeping 6000 bikes in total

Production & Operations

• Hero-motocorp manufactures only Fuel Tanks, do the Paint job, Prepare the Chassis

• Production of fuel tanks in batch production process• Assembly of engine • Engine & other parts are collected in basket• Parts are installed on the chassis in the assembly line

Philosophy Of Operations & Supply

• Flexibility in manufacturing• Focus on new technology and innovation• Benchmark with the best manufacturing process• Continuous focus on resource conservation• Energy efficient plants and shops • Focus on automation

Adoption Of New Technology

Use Of Solar Energy

Approach Towards New Technology

Output and Logistics

Output• Highest selling bike is Splendor• Is a favourite in sub-urban and rural India• Every 30 seconds, someone in India buys Hero Splendor• The company produces up to 1200 units a day of Hero Splendor• Extensive sales and service network spans over 5000 customer

touch points• There is also strong demand for the Splendor in markets outside

India

Logistics

• The company has been pushing for more rail transport in India• Hero Motocorp has collaborated with BLG Parekh Logistics for

transportation of its products• BLG Parekh has brought in its patented ‘clamped version’ of

two-wheeler movement in India•  It is a simple process with absolutely nil transit damage• Turnaround time at the time of loading and unloading is slashed

drastically

Logistics

• Each vehicle is clamped on both sides from footrest

• These clamps are mounted on the floor

• Though carrying capacity remains the same as in the conventional transportation, efficiency level has shot up

Quality Control and Testing

• Quality Management Systems as per ISO-9001

• Innovation in products, processes and services

• Continuous improvement in total quality management systems

• Teamwork and responsibility

• Machines with impeccable quality and a build to last character

Quality Control and Testing

• Tracking inventory cost efficiently and effectively

• Cost leadership is the company’s prime focus area about Splendor

• Considerable attention is given to managing component inventory

• More than 30 quality improvement projects with supply chain partners