Final Ow

OPERATION WORKOUT OUTSOURCING AT BAJAJ AUTO LTD. GUIDED BY- MS SWAPNA

What Is Outsourcing ? Contracting with a vendor to provide a service rather than providing it yourself. •Widespread in the corporate sector. •Functions related to IT •Business Processes impacting IT. •Purchase of an externally produced good or service (often previously internally produced)

Outsourcing: Why To Do It? • Focus on Core Competencies – Production, sales, finance/accounting

• Realization of Greater Economies (Lower Costs) – Vendors argue they can recapture scale because they specialize in ISO and have lower costs because of volume discounts, sharing of resources and expertise, etc. – Savings are partly passed on to customers (theoretically, at least!)

Possible Reasons To Outsource •Higher quality service •Expertise / experience •More cost effective or efficient (more up to date and sophisticated technologies, for instance) •More qualified personnel (with career track)

•May not have been able to successfully manage function •Operating expense may be less •Limited or no capital investment •Less attention is required •Shifts some accountability

What’s Being Outsourced?

What are the opportunities for outsourcing? Endowment Management Food Services Legal Services Payroll Pension Administration Security Telecommunications Vending Services

BAJAJ AUTO LTD. 2ND Largest manufacturer in Two wheelers in India

BAJAJ Is An Assembling Industry.

It is not possible for them to manufacture each and every Part in the company itself so they have to out source

Bajaj at Waluj Plant

Three wheelers Auto Rikshaw -CNG Auto Rikshaw -LPG

Two wheelers Bajaj CT 100 Bajaj Platina Bajaj Wind

Percentage Of Outsourcing Carried Out At BAJAJ AUTO 11%

89%

Outsourcing Offshoring MFG inhouse

How is outsourcing helping the industry?

Let’s take a short view.

Direct Vendors •Varroc Engineering Pvt Ltd. •Badve Engineering Pvt Ltd. •Laxmi Metals •Metalman Pune •Dhanesh Engineerings •Aurangabad Electricals Ltd •Dhoot Teransmission Pvt Ltd •Endurance Systems Pvt Ltd •Rucha Engineering •Sanjeev Auto Pvt Ltd •MRF Tyres •Lumax Bulbs •Minda Components

Varroc Engineering Pvt Ltd • Electrical parts • Plastic components Badve Engineering Pvt Ltd. • Muffler • Chassis Metalman – Pune • Chassis Laxmi Metals • Muffler • Chassis

Laxmi Pressings

MINDA Switches

•Steel Components •Engine Related Parts

•All switches assembly

LUMAX BULBS •Head light Bulb assembly •Breaklight Bulb assembly

Dhoot Transmission Pvt. Ltd. •All type of wiring harness •All electrical wirings

Aurangabad Electricals Ltd. •Magnatos •PCB for switches •Regulator for battery charging

MRF, TVS, DUNLOPE •Tyres

Endurance Systems •Clutch plate assembly •Front shock absorbers •Rear shock absorbers •Disc Break

Rucha Engineerings Pvt. Ltd. •Sheet metal components •Petrol Tank components

Sanjeev Auto Pvt. Ltd •Machining Components

Tokisaki Japan •Steel sheet metals •Steel engine components

45 40 35 30 25 20 15 10 5 0 AEL

Varroc

ESPL

Badve

Dhoot

Lumax

PRESENTED BY

Niranjan Chaitanya

Santosh Mandal

Vaishali Miniyar

Prachi Kothavale

Poonam Khabiya

Sandeep Khandelwal

Sarabjit Kaur

Amit Kulkarni

Aditya Laddha

Divya Nair

Deepak Modi

Harshal Khadkikar