1 | P a g e Nishikant Rajeshirke (Roll- 45, PGDLM-IV)

A Report on Industrial Visit to FIAT India

FIAT India

Ranjangaon, Pune.

On

19th March 2014

Under the Aegis of

Garware Institute of Career Education and Development

Mumbai University

Submitted to: Submitted by:

Prof. Della Crasta Nishikant Rajeshirke (PGDLM-IV, Roll no.45)

2 | P a g e Nishikant Rajeshirke (Roll- 45, PGDLM-IV)

Table of Contents ACKNOWLEDGEMENT ................................................................................................................................... 2

INTRODUCTION to FIAT: ............................................................................................................................... 3

Introduction to Ranjangaon plant: ............................................................................................................ 3

Supply chain Management observations from the visit: .............................................................................. 4

Major observations from the session: ...................................................................................................... 4

Major observations from the Assembly floor visit: .................................................................................. 5

CONCLUSION: ................................................................................................................................................ 6

ACKNOWLEDGEMENT I hereby put my sincere thanks to Prof. Della Crasta and all FIAT employees. Special thanks

to HR Executives, Shop & Assembly floor managers, Supply Chain Head & all other staff of Fiat, Pune.

Who managed time for us from their busy schedule to discuss the intricacies of Supply Chain and

Assembly operations with us.

3 | P a g e Nishikant Rajeshirke (Roll- 45, PGDLM-IV)

INTRODUCTION to FIAT: FIAT Group Automobiles India Private Limited (FGAIPL) is a fully owned subsidiary of FIAT Group

Automobiles S.p.A, Italy. It has been started in 1899 with 203 plants, 118 Research centers, associated

with 633 companies and 198,000 employees working for FIAT. The company was incorporated in

Mumbai, India, in March 2012 and will distribute FIAT and Jeep vehicles in the country through an

independent dealer network. The company is currently selling the FIAT Linea and Punto models, which

are manufactured by the Tata-FIAT joint venture plant at Ranjangaon.

FIAT was the first automobile company to invent 3½ HP car. They have also purchased 68% shares from

Chrysler – a Jeep manufacturing company and now planning to have complete takeover.

FIAT has recently joint venture with FIAT-FIAL-TATA on 28th Dec 2007.

Introduction to Ranjangaon plant: Ranjangaon plant is manufacturing 4 types of cars, Linea, Punto, Manza and Vista. The plant is spread in

250 acres of land with the capacity of 350,000 engines, 200,000 cars. Also 186,000 cars can be

assembled within same plant.

Ranjangaon Plant structure: The Plant structure is as below

Making of one complete car takes 20-21 hours, it includes all the processes till the final quality testing.

The plant is currently working in only one shift and producing 180 cars per shift.

Body Shop

5 hrs per car

Paint Shop

4-5 hrs per car

Asembly shop

8-9 hrs per car

4 | P a g e Nishikant Rajeshirke (Roll- 45, PGDLM-IV)

Supply chain Management observations from the visit: We got opportunity meet Supply chain head of the company, he conducted a session to give us the

overview of the Supply Chain practices of the company.

Below are the major observations from the session: Vision: World class in Supply Chain Management.

Mission: World Class Manufacturing.

1. FIAT has strong supplier relationship management, currently 133 suppliers are in business with

them.

2. The plant is following ABC inventory concept where the ratio is 20%-A, 30%-B and 50%-C.

3. Just in sequence: This is the new inventory concept followed by plant. They believe JIS is as

important as JIT and reduces the manual efforts and improves the floor employee’s efficiency.

Parts should be in front of the employee so he would not need to move a lot and this reduces

unnecessary material handling.

4. Golden Zone model: FIAT follows Golden zone model in the warehouses to store their material

in racks. Below picture explains the model.

A

20% of inventory-value being 70%

B

30% of inventory- value being between 30-70%

C

30% of inventory value being between 10-30%

5 | P a g e Nishikant Rajeshirke (Roll- 45, PGDLM-IV)

5. Milk Run: FIAT’s logistics team is using Milk run concept during their distribution. This is befitting

them in maximum utilization space, fuel, and rout.

Another good part is it is perfectly aligned with ‘Green' corporate value.

6. Material Handling Equipment: Major handling equipments have been outsourced but

maintenance and cleaning is the shop floor’s responsibility.

Below are the major observations from the Assembly floor visit:

1. e-Kanban: This was the completely new concept for us. It is an electronic Kanban system where

employees use Barcode scanner device to pick the required material parts for assembling. This is

initial step of the assembly floor and all parts to be assembled into the car gets picked up by

employee. Despite of various model of the car, employee were able to pick correct material due

to e-Kanban method and it also gets refilled by their superiors.

2. Employee coordination: Despite of the huge floor and various type of assembling activities, the

entire floor was silent and yet managed to coordinate the work amongst themselves. There was

no need to shout and call anyone for getting things done. It was so organized due to the e-

Kanaban system.

3. 5 S: We were able to see the 5 S concept implemented by shop floor employees. Specially

SHINE, the floor was cleaned and it was the employee’s responsibility to clean and during and

after his shift.

4. KAIZEN: The assembly floor was full of conceptual charts and papers. KAIZEN was one of the

concept being utilized on all steps of the assembling. They also had posters of award winning

employees on the walls, this for suggesting improvements for their job process.

6 | P a g e Nishikant Rajeshirke (Roll- 45, PGDLM-IV)

5. MUDA: FIAT assembly floor also had picture posters of the MUDA concept of avoiding wastes.

6. All other manufacturing concepts like Lean manufacturing, 3 M’s, etc were actually

implemented by plant.

CONCLUSION: It was great to visit such huge manufacturing company and to understand the Supply Chain processes

which makes them successful. The Quality concepts which we learnt in our two years course are not just

theoretical concepts and these are actually gets implemented in organizations.

Most of the employees comes from the metro cities and they work in Ranjangaon which is an industrial

location. Many of them travels 80-100 KM a day and 250-300 KM in weekends to visit their home in

different cities. Despite of such travelling, they feel honor and proud to work for FIAT.

The success of FIAT in automobile sector lies in their Vision, Mission, Quality & SCM processes and

hardwork of it’s employees.

Note: All this information and numbers are noted down during the presentation session and assembly

floor visit, the numbers may vary from FIAT website.