Increasing Capacity and Yet Saving Rs.1700 crores

Source : Forbes India

Demand of cars in India has been increasing, but Maruti didn’t anticipate such a spurt in demand and hence couldn’t invest in capacity building.  But M.M. Singh came to the rescue and with marginal investment into existing capacity was able to significantly add the production Gurgaon plant, which has an installed capacity of 850,000 to about a million cars and Manesar, which has a 250,000 capacity will make 350,000 cars.
All in all, these process improvements cost Rs. 150 crore. No external help was taken and everything was done within the company with a high contribution by the production team. Maruti ended up saving almost Rs. 1,700 crore — the cost of a new line — for the company.

So how did M.M.Singh achieve this ?

Read more on Forbes India

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