MBA 206 - PRODUCTION MANAGEMENT - 2nd SEM

MBA 2020
VU 2nd Semester Examination
Paper Code: MBA- 206
Subject: Production Management
Total Marks: 100
Read the following case study and answer the questions given below in your
own words.
The automobile sector of India is one of the largest in the world and accounts for over 7.1%
of India’s GDP. It also contributes to nearly 22% of the country’s manufacturing GDP. If we
consider the location of automobile factories in India there are five major automobile hubs:
 Patnagar
 NCR
 Gujarat
 Pune
 Chennai
Driving the most luxurious car has been made possible by the stiff competition in the
automobile industry in India, with overseas players gathering the same momentum as the
domestic participants.
Segments of Indian Automobile Market
Two-wheeler automobile segment

In this segment, motorcycles accounts for major Indian Automobile market share. The chief
players in this segment is Hero Honda which delivers 50% motorbikes to the Indian market
besides sharing 46% in scooter market and TVS for 82% in moped market.
Three-wheeler automobile segment
Around 41% of the three-wheelers in India are utilized for merchandise transfer purpose. In
this segment Piaggio and Bajaj are the leading players with 40% and 68% of market share
respectively.
Car segment
Accounting to 79%, Cars rule the passenger automobile in India. The chief players in this
segment are Maruti Suzuki and Mahindra. While Maruti Suzuki enjoys full-fledged
monopoly in multi-purpose automobiles sector with 52% of market share, Mahindra have
42% market share in utility vehicles. However in the area of commercial automobiles, Tata
Motors rule the Automobile Industry of India with 60% of market share besides being the
fifth biggest producer in the world of medium & heavy marketable vehicles.
Top Automobile Companies in India
Tata Motors
Tata Motors is the largest automobile manufacturing companies in India. Established way
back in 1945 Tata Motors is a multinational automobile company with its headquarters in
Mumbai. Previously known as Telco TATA Engineering and Locomotive Company Tata
Motors belongs to Tata Group. This company manufactures compact medium sized utility
vehicles. Over the last few decades it has stood as the undisputed leader in the commercial
vehicles segment. It is also the third largest producer of passenger cars in India. This
automobile company in India is listed on both the Bombay Stock Exchange and the New
York Stock Exchange. The revenues earned by Tata Motors in 2010 accounted to $20.572
billion. Some of the well known cars manufactured by Tata Motors are: Tata Indigo, Tata
Indica, Tata Sumo Tata Indigo Marina and Tata safari.
Hindustan Motors Limited

Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is an operative
subsidy of the Birla Technical Services group. This company held the title of the biggest
manufacturer of cars in India before Maruti Udyog. Hindustan Motors was the pioneer in
manufacturing automobiles in India. The company accounted for a sales turnover of Rs
150.66 crore in 2010. Some of the important cars and multi utility vehicles manufactured by
Hindustan Motors Limited include; Mitsubishi Lancer, Trekker, Contessa, Ambassador,
Porter, Pushpak and the Mitsubishi.
Mahindra and Mahindra

Established in the year 1945, this company has given a cutting-edge dimension to the Indian
automobile industry. It began as a general-purpose utility vehicle manufacturing unit and
expanded its business to automotive, tractor, MSL and inter trade. Presently, the largest
company in the private sector, this company boasts of an advanced technological
infrastructure and manpower.
Ashoke Leyland
Ashoke Leyland is a leading commercial vehicle manufacturer in India. It was established in
1948. The company over the years has become synonymous with the production of trucks,
passenger buses and emergency military vehicles. It happens to be the second largest
commercial vehicle producer in India holding a market share of almost 30 percent. The
company holds a record for selling almost 60, 000 vehicles and almost 7000 engines per
years. Ashok Leyland accounted for consolidated revenues of US$ 1.4 billion in 2009. Some
of the popular products by this company are; Panther BS-II Multi-axle Vehicles, Cheetah
Bus-III, Tractors and Ecomet, Lynx BS-II, Diesel and Natural Gas gensets from 15KVA to
250KVA.
Maruti Suzuki India Limited

Maruti Suzuki India Limited was established in 1981. A part of this company is owned by
Suzuki Motor Corporation of Japan. It is the country's largest passenger car manufacturing
company. Credited for having brought in the automobile revolution in the country Maruti
Suzuki India Limited was known as Maruti Udyog Limited till 2007. With its headquarters in
Delhi this automobile company in India happens to be the largest producer and market share
holder of cars. The company accounted for consolidated revenues of US$4.8 billion in 2010.
Maruti Suzuki India Limited is credited for manufactures a variety of passenger cars SUVs,
and Sedans. Some of Maruti's most popular cars are: Alto, Gypsy, Omni, Wagon R, Maruti
800, Versa, Zen, Esteem, Baleno and Swift.
Hyundai Motor India Limited

Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors of South Korea.
Hyundai Motors happens to be the largest car manufacturer in South Korea and the sixth
largest in the world. This automobile company in India is also the largest passenger cars
exporter in India. Established on May 6 1996 this company in a short span of time has taken
the Indian automobile industry by storm. Some of the popular cars manufactured by this
company are; Santro, Getz Prime, Hyundai i10, Hyundai i20 Accent and the Verna and
Sonata.
Bajaj Auto
Bajaj Auto is another important automobile manufacturing company in India. It is one of the
India's most trusted car manufacturers. It is an operative subsidy of the Bajaj Group. Bajaj
Auto happens to be the largest two and three wheeler manufacturer in India and also ranks in
this field across the globe. This automobile company was established on 2 November 1945.
The company was then known as M/s Bachraj Trading Corporation Private Limited. The
company made a modest beginning by importing and then selling two and three wheelers in
India. Today Bajaj Auto has become synonymous with two and three wheelers in the country.
Some of its popular two wheelers are; Pulsar 220DTS and Kawasaki Ninja 250R.
Line of Balancing
Increasing productivity has become a buzz word nowadays on the basis of industry. There are
several methods for increasing productivity and Line Balancing is one of them. Increase in
production volume by decreasing cycle time is the main task of line balancing. Tasks related
to the motor bike assembly of ABC Bikes are given below:
Operation Description Duration(sec) Immediate predecessor

number
PA 1 Unpacking & placing 190 -------

of all parts
PA 2 Joining hydraulic plate 55 PA 1
to wheel
PA 3 Blowing air to wheel. 32 PA 1,PA 2
PA 4 Joining rubber to the 145 PA 1

mat-guard
PA 5 Joining light to the 150 PA 1,PA 4
mat-guard
PA 6 Joining parts of handle 137 PA 1
bar
PA 7 Joining parts of 90 PA 1
speedometer
PA 8 Joining light to head 100 PA 1
PA 9 Preparation of chassis 180 PA 1
PA 10 Assembling engine to 196 PA 1,PA 9

chassis
A1 Assembling shock 210 PA 1,PA2,PA 3
absorber & front wheel
A2 Assembling chain & 60 PA 1

chain guard
A3 Assembling back 120 PA 1,PA 2, PA 3
wheel
A4 Assembling mat-guard 118 PA 1,PA 4,PA 5
Screw tightening
A5 Assembling handle bar 140 PA 1,PA 6
A6 Assembling muffler 215 PA 1
A7 Assembling gear lever 160 PA 1
A8 Assembling 180 PA 1,PA 7

speedometer
A9 Assembling electric 193 PA 1
wire
A10 Assembling Head & 222 PA 1,PA 8
pumping point
A11 Assembling seat lock 167 PA 1
and saree guard
A12 Assembling fuel tank 130 PA 1

cover
A13 Assembling side cover 109 PA 1
and seat
PA = Pre Assembly A = Assembly
Answer any EIGHT of the following questions. (Each carry 10 Marks –

8 x10=80 Marks)
Q.1.For any business its location plays a very big role in profitability and sustainability.
Discuss.
Q.2.Analyse the locations of above mentioned five major automobile hubs and hence discuss
the important factors which influence the location of an automobile plant.
Q.3.Select three major automobile plants in India of your choice and compare their locations
based on the important influencing factors.
Q.4.Discuss the type of layout used by an automobile plant. Discuss the factory layout of any
one of the plant of your choice.
Q.5.Compare and contrast between the layouts of automobile plant with that of an automobile
service station.
Q.6.In modern time industries are moving towards cellular layout. With appropriate example
discuss the benefit of cellular layout over two basic layouts.
Q.7.From the data of ABC Bikes given above find out the cycle time and number of work
stations required to perform the assembling activities.
Q.8. Draw the line of balance and find the efficiency of the production system of ABC Bikes.
Q.9.Seven major automobile brands of India have been mentioned above. Find out the
production capacity and current production in units. Based on the data calculate the capacity
utilization of each of them and arrange them from highest to lowest.
Q.10.What is the function of demand forecasting in production planning? Discuss the various
techniques of demand forecasting.
Q.11.Based on past ten year’s data forecast the demand of automobiles (any two segments)
for the year 2021. You can use linear trend for forecasting the demand.
Q.12.Discuss the quality measures taken by automobile companies across the world.
[Internal Assessment: 20 Marks]

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MBA 2020

VU 2nd Semester Examination

Paper Code: MBA- 206

Subject: Production Management

Total Marks: 100

Segments of Indian Automobile Market

Two-wheeler automobile segment

Top Automobile Companies in India

Hindustan Motors Limited

Mahindra and Mahindra

Maruti Suzuki India Limited

Hyundai Motor India Limited

Operation Description Duration(sec) Immediate predecessor

PA 1 Unpacking & placing 190 -------

PA 4 Joining rubber to the 145 PA 1

PA 9 Preparation of chassis 180 PA 1

PA 10 Assembling engine to 196 PA 1,PA 9

A2 Assembling chain & 60 PA 1

A5 Assembling handle bar 140 PA 1,PA 6

A6 Assembling muffler 215 PA 1

A7 Assembling gear lever 160 PA 1

A8 Assembling 180 PA 1,PA 7

A12 Assembling fuel tank 130 PA 1

PA = Pre Assembly A = Assembly

Answer any EIGHT of the following questions. (Each carry 10 Marks –

[Internal Assessment: 20 Marks]

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