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Erp execution at maruti suzuki ltd

Maruti Suzuki ltd. was proven in 1981 in India as and since its establishment Maruti Suzuki ltd has been head of the Indian car market. It really is a subsidiary of its parent company Suzuki Engine Corporation of Japan. Maruti Suzuki Ltd is the most significant selling passenger car company in India and controls more than 45% of the Indian car market. The company is headquartered in New Delhi. On 17th September, 2007 Maruti Udyog Ltd was renamed to Maruti Suzuki Ltd. It offers two manufacturing plant life in India; one is in Gurgaon and the other is Manesar. Both items when put together can produce around 500000 items per annum. Right up until now the business has a portfolio of 15 traveler vehicle. It really is shown on BSE (Bombay Stock Exchange) as well as NSE (Country wide Stock Exchange).

What is ERP

Every auto company today has a very massive amount data to deal with. If the info is not included and is unavailable in consolidated form and at one place, it is very problematic for the users to access the data. ERP (Enterprise Reference Planning) is a essentially a program for integrating the business enterprise as a whole with an goal of effective use of the management resources to increase the efficiency and working of the organization. It is an instrument that integrates all the divisions and functions of the organizations into an individual computer software which runs about the same databases and facilitates information showing and communication among the various departments of the organizations.

Need for ERP

Every auto company today has a very massive amount data to deal with. If the info is not integrated and is unavailable in consolidated form and at one place, it is very problematic for the users to gain access to the data. In the current scenario, it is vital to share the info among the various divisions and departments of the business in order to enhance the efficiency and working. At every point or juncture, the info can be looked at and can be reached. ERP is also used to combine the value string activities in the auto industry. Enterprise Learning resource Planning also performs a major role in taking care of the inventory as it is one of the main aspect in the auto industry. Operational superiority is also achieved by using ERP. Thus, ERP has become a need and need in the automobile industry and in companies like Maruti Suzuki ltd.

Introduction

Maruti Suzuki Ltd. uses

Pre - Implementation

Before execution of the ERP, the business used to count upon its home cultivated, disparate systems to manage its business. But these systems were inefficient and weren't able to communicate with each other and therefore required a whole lot of manual work like stepping into data multiple times. And it was very hard for the staff to generate the results and studies. There was a lack of control over processes. The company also added four new business areas in 2002 which also required frequent attention and human intervention and therefore which makes it difficult to control the machine. Also, before employing ERP company faced problems like poor information quality and huge turnaround time. There is no real time usage of information which managed to get difficult for the business staff to access and obtains the latest, up to date and correct information.

Strategies for ERP implementation

Maruti Suzuki's Key General Manager Rajesh Uppal said that the company wanted an expandable and a adaptable system that may be easily been able. Thus this will reduce the complexity of the system (IT environment) and also would decrease the dependence on many people to handle and manage the system. By implementing ERP there will be a single standardized Oracle platform and therefore will also help the correct scaling of the system. The company implemented a phased migration strategy from its old legacy systems to the Oracle E - Business Suite.

Post Implementation

There was a clean move from the old legacy systems to the recently adopted Oracle E - Business Suite. The company selected Oracle Consulting to look for the company's requirements, to design the system, to develop the project plan, to deploy the program, to manage the parties involved and finally to supply the three months post - implementation support to the company. Working out programs were also made for the employees. Under the training programs the user manuals were provided. There is also Train the Trainer program and Coach the ultra users program under the Training programs.

Financial Insight

The company noticed that with using the old multiple systems, there was insufficient control over the data and information quality and processes. It was difficult to manage funds and the divisions lagged behind each other. But with the implementation of the E - Business Suite, Maruti Suzuki could standardize about the same financial management system. Standardization helped the business to keep and maintain small control over the Accounts payable, accounts receivable and complete general ledger. Also the efficiency better and there was less dilemma with the introduction of the standardized data types and techniques. Rajesh Uppal (Chief Director - IT) said that the completed the year end close on time with no hitch.

Hyperion

The company has been using Hyperion software for the last two years. It has been used to analyze the budgets across Maruti's nine subsidiaries. It also helped the business to perform financial reporting in compliance with the GAAP (Generally Accepted Accounting Rules) in India. The system is included with the Oracle Financial and is currently being utilized by 10 (approximately) budgeting staff in the business's finance department. They have helped the company to boost their forecasts and also empowered Maruti to quickly respond to the changes on the market conditions thus boosting their competitiveness. Hyperion can be easily integrated with the Oracle Financials Component.

Procurement

Oracle Purchasing was put in place by Maruti to take care of the procurement of the services, goods and indirect consumables. Before putting into action this Purchasing system, the business's subsidiaries either depended on spreadsheets or used the primary or important system to take care of the procedure thus leading to go up in costs and excess of inventory. The major changes this technique brought in the business was the cost decrease and better inventory management. It also helped to lessen the number of vendors thus reducing the costs. An automated workflow transmits purchase orders over the chain and maintains the staff aware of the procurement activity. It has provided working staff the capability to track the process from order to repayment.

HR Labor force Management

Maruti was quick enough to learn that the systems they were using weren't able to control the employees. Thus it sensed the necessity of an individual integrated system which could easily help them to manage the recruiting. After the execution of the Oracle Human Resouces component, Maruti observed so it had an improved control over the functions such as leave and compensation management, payroll, recruitment and training and staff development. As the information is stored in one database, the system enabled the personnel to access the whole history and the facts of the employees. Oracle self applied - Service HR was also executed which freed the HR personnel from elementary duties (like changing details and addresses of employees). Thus, it helped Maruti to employ good quality people.

Future Plans

After the success of the HR, Procurement and Financials modules, the business can put into action the Oracle Advanced Supply Chain Module and Oracle Enterprise Asset Management. The company can assimilate more of its functions with ERP systems. This might help the business to access the real time information across all the different departments and divisions of the company.

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