Operations Management.docx

The Operation Process and Management of 1 Suzuki Philippines, Inc.

CHAPTER ONE

INTRODUCTION

I. COMPANY PROFILE Suzuki Philippines, Inc. is a Japanese multinational firm highly recognized in the vehicle manufacturing industry. The company specializes in producing distinguished brands of motorcycle and distribution of compact vehicle. Suzuki has established its reputation throughout the world and renowned for its trademark of quality that offers both versatility and innovation. Its history is epoch-making in itself and remains a significant part of the automotive revolution. We stand behind this global symbol, spearheading in creating advanced value-packed products. We strive to be the customer's brand of choice for having a name with the heritage of trust and reliability.

About Suzuki Philippines, Inc is a Japanese multinational firm highly recognized in the vehicle manufacturing industry. The company specializes in producing and distributing distinguished models of cars and motorcycles.

The Operation Process and Management of 2 Suzuki Philippines, Inc.

Company Overview From industrial looms in 1909, Suzuki now produces a full range of automobiles, including light trucks, off-road sport-utility vehicles, mini-cars, as well as racing bikes, scooters, all-terrain vehicles, and marine outboard motors. The Suzuki brand has a strong market base in Europe, particularly in Italy, Germany, the Netherlands, and England. Globally, Suzuki employs over 45,000 people, has 35 main production facilities in 23 countries, and distributors in 196 countries. Its manufacturing philosophy is grounded on providing value-packed, high-quality products offering both reliability and originality. Suzuki R&D efforts are devoted to creating products that will meet the challenges of the next generation.

Description Suzuki has established its reputation worldwide for quality, versatility and innovation and has created a heritage of trust and reliability. Suzuki is one of the pioneers in the Philippine two-wheel industry. It boasts of full barrage of motorcycle lines from business model and underbone solo and sporty to scooter lines. Suzuki takes pride in revolutionizing every Filipinos' way of ride with legacy of world-class quality and formidable strength of its product.

The Operation Process and Management of 3 Suzuki Philippines, Inc.

II. VISION Suzuki Philippines, Inc. aims to be the customer's brand of choice for having a name with a heritage of trust and reliability, and for being a continuous innovator and trendsetter in the Philippine motorcycle and compact vehicle industry.

III. MISSION We, the men and women of Suzuki Philippines, Inc., will provide this country value-packed motorcycles and compact vehicles of highest quality, affordability, safety and environment-friendliness; uphold operational efficiency and excellence; ensure the best returns to all our stakeholders, partners and employees; and strongly commit to uplifting the Filipino community's way of life by providing them the best quality vehicles that offer not just ease in transportation, but lifestyle options as well.

IV. CORPORATE PHILOSOPHY Suzuki Philippines, Incorporated is wholly owned company of Suzuki Motor Company Ltd. of Japan known for manufacturing superior quality motorcycle models in the Philippines. Suzuki takes pride in its motorcycle line-up for leisure, sport or business. Our company is the exclusive distributor of Suzuki Automobiles and genuine spare parts here in the Philippines. This is supported by a highly

The Operation Process and Management of 4 Suzuki Philippines, Inc.

competent workforce that provides service and care to each and every Suzuki vehicle. Suzuki dealers nationwide enjoy great value and attractive incentives. For motorcycles, there are currently thirty-nine (39) 3S shops that offer one stop sales and servicing and the number is still growing. Suzuki believes in "small cars for a big future" as it never ends to develop new models that excite and yet putting the environment in mind. The company also formulated the new blue print for growth as it refocuses its sights on the emerging motorcycle solo-ride and tricycle market.

V. HISTORY Since 1959, Suzuki came into the Philippine motoring scene through the able management of Rufino D. Antonio and Associates Inc wherein they handled nationwide distribution of Suzuki motorcycles. In July 10, 1975, a joint venture between Suzuki Motor Co., Ltd. (Japan) and Rufino D. Antonio and Associates, Inc was formed under the name of Antonio Suzuki Corporation and this helped in the expansion of motorcycle sales in the country.

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Due to the economic crunch experienced right after the assassination of Senator Benigno Aquino in 1984, Suzuki Motor Co., Ltd (Japan) took over the operations from Antonio Suzuki Corporation. With this, in February 1985, Suzuki Philippines, Inc. (SPH), a wholly owned company of Suzuki Motor Co., Ltd. (Japan), was formally introduced to the Philippine market. (In 1990, Suzuki Motor Co., Ltd. was changed to Suzuki Motor Corporation.) Since then, Suzuki Philippines Inc. has been at the forefront of introducing motorcycle models which enjoyed market acceptability. The steady shift of the motorcycle market from mostly tricycle models to solo-ride models like privately or company owned mopeds, scooter, and trail bikes has prompted Suzuki to continuously come out with new models to cater to this market. In 1990, SPH was the first motorcycle Company to export motorcycle outside of the country, shipping 114 units to Suzuki S.A. in Guatemala. At the peak of its motorcycle exportations in 1993, SPH shipped out 845 units to various customers such as Guatemala and others. In 1994, SPH launched the Suzuki Crystal (RC110), the first 2-stroke underbone motorcycle from Suzuki made available in the Philippine market. This model set the new standards for speed, fashionable and effortless motorcycle riding. In 1996, the off-road market welcomed the arrival of the Suzuki TSR125 with motocross spec. linkage suspension and high capacity camel-back fuel tank.

The Operation Process and Management of 6 Suzuki Philippines, Inc.

1997 was the year when Suzuki ventured into the growing scooter market with its introduction of the Suzuki SS100 Frontier Scooter, which was imported from Taiwan. In 1998, Suzuki came out with another 2-stroke underbone model in the Suzuki Swing (SC110) In October 1999, SPH also marked another milestone event in its history when it took over the automobile operations of Suzuki in the country from Pilipinas Transport Industries, Inc. (PTII). The expansion greatly strengthened the company image and capability in carrying its four-wheel division. In July 2000, Suzuki Automobile launched its flagship model - the Grand Vitara - with its all-new 2.5 liter v6 engine, building on the rich heritage of the Vitara model in the Sport Utility Vehicle (SUV) market. Automobile enthusiasts can only look forward to upcoming new models, which will be launched locally after successful introduction of these models in the international market. 2001 was the year the Suzuki Crystal was replaced with the new 4-stroke underbone model Suzuki Shogun 110cc which emerged as the most powerful and yet economical model in its class with its sophisticated twin dome combustion engine design and its highly efficient internal cooling system that prevents excessive engine over-heating. In 2002, Suzuki introduced the Raider 125 - the motorcycle that will pave the way for Suzuki to lead the sporty underbone category in the Philippine market.

The Operation Process and Management of 7 Suzuki Philippines, Inc.

In the same year, Suzuki launched a fashionable, powerful yet economical underbone motorcycle – the Smash 110. In the middle of the year, Suzuki introduced the Jimny 4x4. Powered by a 1.3L 16-valve engine, it was well accepted by the market as a very affordable SUV with the price of a car. In 2003, SPH strengthened its claim in the 125cc category when it launched the Shogun R 125 with an increased 125cc engine for maximum power on the road. In the same year, SPH introduced its 4-stroke backbone model for the business category – the Suzuki Mola 125 (GS125). Also in the same year, the Grand Vitara’s big brother, the XL-7, was launched in the fourth quarter of 2003. It was powered by a class-leading 2.7L V6 24-valve engine with 5-speed automatic transmission. 2004 was the year the Philippine market saw many innovations from SPH. Suzuki made further developments on its underbone family model with the Shogun R+’s awesome display of sleek sporty styling and coloring design. And in the same year, harnessing the power of the 125cc engine, Suzuki launched the Shogun Pro with the pro-clutch manual transmission. In this year also, the flagship model of the Suzuki motorcycles came into being – the Raider R150 – which is hailed as the king of motorcycles attributing to its GSX-R inspired sporty design. 2004 was also the year when SPH increased the power of the GS125 which developed into the GS150 or more popularly known as the Mola 150.

The Operation Process and Management of 8 Suzuki Philippines, Inc.

Also in that year, Suzuki spearheaded the first Suzuki Nationwide Endurance Run. Its aim was to dispel the negative notion that motorcycle riding is unsafe and that motorcycle riders have lesser traffic rights. It was also a way of showcasing Suzuki’s widest range of motorcycle models from backbone to business models to scooters and sporty underbone models. Since then, the Suzuki Nationwide Endurance Run had become an annual nationwide two-wheel tour forwarding motorcycling as an alternative lifestyle, while demonstrating the durability, overall excellent performance and fuel efficiency of Suzuki motorcycles. May 2005 was the launch of the Suzuki APV, offering the best value-formoney van in the local market. Powered by a 1.6L, 16-valve engine and with a seating capacity of 8 passengers, the APV had a price tag similar to a passenger car, making it a popular choice for big families. A few months later, in August 2005, Suzuki launched the much anticipated Swift 1.5L hatchback and new Grand Vitara 2.0L. Both models were well accepted and unit allocations to dealers were sold out even before stocks could arrive. In 2006, SPH introduced new and fashionable decals for the Shogun Pro and Shogun R+. This was also the year when the Raider Jr. or more popularly known as the Raider J came into the scene. The Raider J is a 4-stroke sports motorcycle engineered for the Philippine roads and the Filipino rider. Also in 2006, the new Suzuki Smash Revo 110 was introduced to the market. Likewise, the Grand Vitara 2.7L V6 with 5-speed automatic transmission was brought in to cater to the luxury

The Operation Process and Management of 9 Suzuki Philippines, Inc.

market. It was the first in its class to have a keyless entry and start system, 6 airbags, leather interior, cruise control and 17” alloy wheels. The scooter market began to expand and SPH came out with its weapon in this category in 2006 – the Suzuki Step 125. The following year (2007), another model in the scooter category was made known and this was the Hayate 125. Unlike its competitors, both the Hayate and the Step are fully equipped with an automatic transmission and a powerful 125cc engine. In that same year in April, Suzuki introduced the answer to the constant increase in fuel prices worldwide – the Suzuki Alto. Right from the start, it was a well accepted car with its very pocket friendly price and fuel efficient engine. First time car owners were the main market for this vehicle. With its commitment in bringing mobility to life, Suzuki Philippines has been promoting safety riding since early 90’s. And in 2008, Suzuki formed its Safety Riding Team conducting nationwide public safety seminars, actual training and demonstration rides to educate riders and pedestrians alike to correct the misimpression about motorcycles and improve the riding community’s knowledge about road safety. 2008 was the year when the evolution of Shogun saga continued as SPH unveiled its all-new Shogun Pro and Shogun R as it reinforces Suzuki’s presence in the highly competitive 125cc market. These models are positioned as High-Class

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Underbone motorcycles offering both “Highly Refined Craftsmanship” with “Superior yet Fuel Efficient Engine Performance” at very competitive prices. Likewise, also in 2008, the Step 125 stepped into higher level as it was enhanced with new decals & color as well as the inclusion of a DC charger and its was aptly called the Step Hi-Class 125 After three successful years of selling the 1st generation APV, Suzuki introduced in February 2008 the enhanced version, the Suzuki APV Type II. It now had a new coil spring rear suspension, bigger fuel tank, improved electronic control unit and choice of 8-seater GLX or luxury 7-seater SGX versions. SGX models were fitted with safety features such as dual airbags and ABS. In May 2008, Suzuki launched the new Suzuki SX4 Sedan. Powered by a 1.6 liter engine mated to a 4-speed automatic transmission, the SX4 Sedan is Suzuki’s very first entry in the local sedan market. Coinciding with the Philippine International Motor show held at the World Trade Center in August 2008 was Suzuki’s launch of the Swift with manual transmission and Grand Vitara 2.4L 4x2 A/T with VVT. Since the Swift’s introduction in 2005, the local market was clamoring for a manual transmission variant to boost the Swift’s sporty image. For the Grand Vitara, the 2.4L VVT variant replaced the 2.0L version as the market wanted a more powerful and fuel efficient model.

The Operation Process and Management of 11 Suzuki Philippines, Inc.

And in 2009, Suzuki Philippines again wowed the Philippine market with the unleashing of the new Raider Breed – the new Raider R150 with its new sportier bodyworks it gives the rider one step closer to riding a true Suzuki GSX-R; the allnew Raider J Pro with the evolutionary pro clutch feature for optimum riding performance. SPH has plans of expanding its localization program in line with the government's program to establish backward linkages with allied companies in the industry. Each tricycle model that Suzuki manufactures contains as much as 45% local components, although the engine is still 100% from Japan. Faced with the challenge of globalization and free trade that will allow importation of low-cost motorcycles, Suzuki is geared to formulate its new blue print for growth. Strategy is focused on increasing both the solo-ride market and the tricycle segment. With current local population of more than 80 million and as the country continues to industrialize, mobility becomes an acute necessity, and here is where the motorcycle comes to the rescue as a safe, economical, convenient and yet fashionable means of transportation. Indeed, Suzuki Philippines, Incorporated shall persist to do its share in accelerating the progress and industrialization of the country by introducing more dynamic products for both motorcycles and automobiles as well as programs for the Filipino motoring public harnessing the power of Suzuki’s Way of Life.

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CHAPTER TWO

NATURE OF PRODUCTS

I. MOTORCYCLES A. BIG BIKES

1. Bandit 650 S: STAYING AHEAD OF THE CURVE Edgy, futuristic styling that keeps the shapely 656 cm3 fuel-injected engine exposed for ready admiration. A well-tuned chassis with generous adjustability. Efficient half-fairing with handy storage bays. Stay ahead of the curve with the Bandit 650S's all-round performance.

2. GSR 750: COOL FUSION: DYNAMIC STYLE AND RIDE A blend of the modern and the futuristic. With a powerful 749cm3 four cylinder fuelinjected engine. A cool fusion of technology, performance and style. A motorcycle built for fun and excitement. Richly entertaining for proud, independent riders. Freedom calls.

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3. GSX-R 600: MTHE TOP PERFORMER IN ITS CLASS A

lightweight

compact

wheelbase

chassis and

featuring

a

race-developed

suspension. A compact, powerful 4-cylinder engine delivering a real-world demonstration of advanced race-proven technology. The GSX-R600 - designed to be The Top Performer in its class, a total package designed to Own the racetrack.

4. Hayabusa: ULTIMATE SPORT, IN TIMELESS STYLING Unique, timeless styling sculpted for windcheating aerodynamics. Long distance comfort with effortless acceleration and sporty handling. A full 1340cm3 of broad, muscular torque. The Hayabusa1300. A two-wheeled legend in a class of its own, defining balanced performance, defining Ultimate Sport.

5. V-Strom 650 ABS: TOUGH, SMART FORM The new V-Strom 650 ABS styling, created with a "tough x smart" theme, reflects its upgraded adventure tourer performance. The purposeful, poised form is composed with

The Operation Process and Management of 14 Suzuki Philippines, Inc.

compactly shaped bodywork using expressive painted sections and functional black resin components - a combination that vividly accentuates the machine's sporty profile. Rider comfort is enhanced with a new windscreen, heat - and wind diverting designs and the slim bodywork.

B. UNDERBONE 1. RAIDER R 150: THE NEW RAIDER R150, RAIDER BREED, REBORN

The new Suzuki Raider R150 revolutionizes itseft as it gives the rider one step closer to riding a true Suzuki GSX-R. History repeats itself as the new Suzuki raider R150 emerges far ahead of the competition as the nation’s top-class sporty underbone motorcycle, the leader of the pack. With its inspiration drawn from the Suzuki GSX-R lineage, the new Suzuki Raider R150 once again sets high standards in design, speed, power, and performance. The new Suzuki Raider R150. A sporty motorcycle belonging to the breed that continually brings Suzuki far ahead of the competition – the Raider Breed.

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2. RAIDER J PRO The Suzuki Raider J has never failed to lead the pack in the country's 110cc motorcycle class. Premiered as the sporty and trendy motorcycle designed specifically for this country, the Suzuki Raider J has achieved all high hopes placed on it ever since it was launched years ago. It has never ceased to outshine all other motorcycles in its class. And to further strengthen Suzuki's presence in the sports bike category - from the Suzuki Raider J, a new breed is born. 3. SMASH 115

A PRACTICAL COMBINATION OF HIGH POWER AND FUEL EFFICIENCY, DETAILED WITH A HIGH QUALITY AND ROBUST FEATURES. SUPERB ENGINE PERFORMANCE WITH LOW FUEL CONSUMPTION

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At the heart of the ALL-NEW Smash 115’s smooth riding experience and easy ownership is the powerful 4-stroke 115cc engine combining accessible, responsive power with excellent fuel efficiency. C. SCOOTER 1. NEX 115

A NIMBLE AND SPORTY FEEL THAT ALL GENERATIONS WILL ENJOY. The sleek styling produces a design with a sporty impression that all generations will enjoy.

CLEAR AND SMART METER DESIGN. The display characters are large, with rich use of color, to produce a bright and highly legible meter. More than just practical, this smart design is also beautiful.

SMALL, SLEEK HEADLIGHT GIVES A TAUT AND TIDY EXPRESSION. In keeping with scooter design trends, the headlight is set in the front panel. The lens area is small and the edges of the headlight have a finned design, for a lean look.

The Operation Process and Management of 17 Suzuki Philippines, Inc.

FORM GIVES A FEELING OF COMPACT LIGHTNESS. At a glance, the form makes it clear that this is a light and compact scooter, giving an impression of lightness and easy ridability.

SIDE VIEW EXPRESSES A COMPLEX FORM AND A SENSATION OF SPEED. The styling line leaps from the front to the rear, expressing the sensation of speed. The complex surface composition gives a feeling of design character within lightness, in a rich sculpted expression.

3. HAYATE 125 FI Fuel Injection is a mechanical system that sprays atomized fuel into the cylinder of an ' internal combustion engine. It uses a computer box (Engine Control Module) to interpret the different electronic sensors that controls various operations such as ignition, timing, and fuel to air ratio.

3. SKYDRIVE 12: A TRADITION OF EXCELLENCE AND INNOVATIVE TECHNOLOGY Fascinating as the Japanese cloth “Kimono”, the New SkyDrive 125 is reminiscent of a feminine beauty in every curve and line. With its timeless beauty

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seamlessly transformed into a futuristic and sporty design, the New Sky Drive is surely to standout in every scene. Sharp as the Japanese sword “Katana”, the New SkyDrive 125 is packed with speed producing features. From its Innovative and Sleek Aerodynamic Design to its Responsive Super CVT engine, the New Sky Drive will definitely generate thrill and excitement. Energetic as the Japanese armor “Kabuto”, the New SkyDrive 125 is driven by a robust and dependable 125cc Super CVT Engine that delivers 9.3HP of raw power, which transforms into a high-torque and economical engine performance.

D. BACKBONE 1. THUNDER 125

SUZUKI INTRODUCES TRENDSETTING BACKBONE CITY SPORTS BIKE A trendsetting backbone city-sports bike has been introduced recently by Suzuki Philippines, Inc., one of the key players in the local motorcycle industry.

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Developed with superlative features at a competitive price range, the new Suzuki Thunder 125 combines the sportiness of a street bike with the durability and comfort of a backbone motorcycle — thus carving out a new niche, the backbone city-sports bike category. Due to the combination of its powerful 125cc engine, convenient handling and stylish form, the new Suzuki Thunder 125 is perfect as an on-road street bike for leisure/club riding. It is targeted at experienced male riders between 30-40 years old, who have the riding maturity to handle the Suzuki Thunder 125’s relatively larger size, and is expected to appeal to solo riders who wish to upgrade from a standard underbone model. The new Suzuki Thunder’s 125cc engine delivers a well-balanced combination of torque and power. Its PAIR (Pulsed Secondary Air Injection) System delivers environment-friendly and fuel-efficient performance. Its backbone set-up ensures a comfortable riding position as well as optimum handling stability and maneuverability. Other superlative features include lightweight aluminum mag wheels, integrated lower engine cowling, dependable front disc brake, dynamic speedometer with gear indicator, a sporty muffler, and an electric/kick starter. With the increasing popularity of backbone recreation models and sporty street bikes in the Asian region, the new Suzuki Thunder 125 is slated to be a very strategic model which will help establish Suzuki as a class-leading brand. Its topof-the-line features, high-torque 125cc engine, and sporty styling in a backbone

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chassis make the Suzuki Thunder 125 the perfect machine for city streets, where riding is an everyday adventure for motorcycle users in the urban setting. 2. MOLA 125: Usually used in public transportation.

3. GD 110: THE ADVANCED COMMUTER BIKE

Ready to meet your daily riding needs efficiently, economically and comfortably. NEW 4-STROKE 113CM3 SOHC. Efficiency and economy for you. The GD110's 4stroke SOHC engine, created with a close attention to delivering high combustion efficiency and low mechanical losses, is a new standard-setter for economical, fuel-efficient performance and user-friendly, low-environmental-impact operation.

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FEATURES FOR LOW ENVIRONMETAL IMPACT. Inside the muffler, a metal honeycomb oxidation catalyzer efficiently cuts down on carbon monoxide (CO) and hydrocarbon (HC) emissions. Emissions are also reduced by the Suzuki PAIR (Pulsed-secondary AIR-injection) system that injects air into the exhaust port to ignite unburned gases.

HIGH EFFICIENCY DESIGNS. The new power plant’s high efficiency designs bring you years of economical use. A digital DC-CDI system delivers highly optimized ignition timing, enhancing fuel efficiency. Efficiency is further heightened by a BStype carburetor featuring smooth response to throttle action and a large-capacity air cleaner box.

DURABLE AND EASY TO MAINTAIN. The GD110 shares with the rest of the Suzuki lineup the renowned quality ensuring years of dependable service. Equipment that contribute to the ease of maintenance include drum brakes which are not easily affected by water or mud, a cassette-type oil filter, and easy-to-repair, easy-toreplace 17-inch tube tires.

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II. AUTOMOBILES

1. SUZUKI GRAND VITARA: URBAN CROSS COUNTRY VEHICLE Since its debut in 1988, the Suzuki Vitara

has

remained

true

to

its

development concept as an “urban crosscountry vehicle.” The

Suzuki

Grand

Vitara

configuration is a 2.4L 4x2 AT model CBU from Japan, this sports utility vehicle features a front-engine rear-wheel drive configuration mated to a 4-speed automatic transmission drive train. It is powered by a fuel-efficient, 2.4L 16-valve gasoline engine that delivers maximum power of 164hp @ 600rpm and maximum torque of 225Nm @ 4000rpm.

2. SUZUKI APV TYPE II SGX: ALL PURPOSE FUN The Suzuki APV Type II SGX features and

performance

have

the

unique

ability to keep all occupants sage and sound until it reaches its destination, thus making it all paragon of allpurpose fun.

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When it comes to people carriers, they should be all things to all people. Many have been called and many have answered, but there is only one that answers all of their needs – the Suzuki APV Type II SGX.

3. SUZUKI JIMMY: HIGH PERFORMANCE OFF-ROADER The

Suzuki

Jimmy

is

often

described as an off-road icon,

and is

recognized

global

as

Suzuki’s

first

success, allowing the Japanese vehicle manufacturer to carve out a niche among 4X4 enthusiasts.

4. SUZUKI SX4 CROSSOVER: 0. The new Suzuki SX4 Crossover gives the feeling of heft and bulk of an SUV in a compact body of a hatchback. With its high ground clearance, huge 16 inch alloy wheels, and roof rails, the Suzuki SX4 Crossover looks like a compact SUV more than a hatchback. Its headlights follow the curves of the car, giving it a fierce front fascia, with the

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honeycomb grille and the chrome Suzuki logo. It also has black fenders, front and rear bumpers, giving it a more sporty feel, and ready for rough roads. 5. SUZUKI SWIFT: RALLY-PROVEN GLOBAL APPEAL This global car is produced at seven plants around the world and is sold in more than 100 countries and regions. Adding up to its laurels, the Suzuki Swift has also earned international accolades including 63 Car of the Year awards in 19 countries. Since its international market launch in 2004, the Swift has been Suzuki’s highest-selling compact car. With worldwide sales exceeding 1.8 million units, it has become Suzuki’s highest-profile world strategic model.

6. SUZUKI CELERIO: COUTURE URBAN VEHICLE The Suzuki Celerio is powered by a newly-developed

K10B,

12-valve,

3-

cylinder with 996cc engine displacement. Not common among one-liter cars, the Suzuki Celerio has a 4-speed gate-type

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automatic transmission variant, in addition to the 5-speed manual transmission model. The Suzuki Celerio driving experience is characterized by linear response, gentle roll movements, light steering feel, and good shock or vibration absorption.

7. SUZUKI ALTO: MORE THAN 30 YEARS OF PROVEN FUEL ECONOMY One

of

the

most

popular

compact cars worldwide, the Suzuki Alto

is

recognized

for

its

fuel

efficiency, stability and affordability. In its over 30-year history, the Suzuki Alto has sold over 10-million units worldwide – the testament to its solid performance and universal appeal.

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CHAPTER THREE

PRODUCT ORGANIZATION

Suzuki Philippines, Inc. has been one of the most successful dealers of automobiles and manufacturers of motorcycles locally. Aside from topnotch materials and groundbreaking strategy in processing these products, what is there to consider is the infallible role of the operations manager.

I. ROLE OF PRODUCTION AND OPERATIONS MANAGER

A production manager is involved with the planning, coordination and control of manufacturing processes. They ensure that goods and services are produced efficiently and that the correct amount is produced at the right cost and level of quality. The scope of the job depends on the nature of the production system: jobbing, mass, process, or batch production. Many companies are involved in several types of production, adding to the complexity of the job. Most production managers are responsible for both human and material resources. The job role is also referred to as operations manager.

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II. ORGANIZATIONAL CHART PRODUCTION

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CHAPTER FOUR

PRODUCTION PROCESS I. PROCESS CHART BLANKING In this process steel coils are cut into blanks of various shapes and sizes by blanking machine. PRESSING In this process blanks are pressed to various panels by presses.

WELDING Pressed pannels are welded together to form body shells.

PAINTING Body shells are painted in various shades using automatic painting machine and robots.

MACHINING Various raw material for engine components are machined using automatic machining center. ENGINE ASSEMBLING The machined parts & various components of engine are assemble together to make engine. ASSEMBLY Various components like,harness,glass, instrument panel,suspension,engine,wheels,seat, are assembled in the painted body to make complete vehicles.

INSPECTION Assembled vehicles are tested for their functionality and road worthiness.

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CHAPTER FIVE

LAYOUT I. LOCATION LAYOUT

Suzuki Philippines, Inc. recently inaugurated its manufacturing plant in the Philippines at the Carmelray Industrial Park, Canlubang, Laguna. The new factory not only allows the motoring giant a better opportunity to produce more affordable motorcycles locally, with locally-sourced parts, it it will also provide employment for about a thousand people living in the area.

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II. PLANT LAYOUT

The new manufacturing plant, which stands on a 126,599 sq. meters land area, started full operation last May of this year – two weeks ahead of schedule. It has an annual production capacity of 200,000 units a year and is expected to support Suzuki’s motorcycle production by 2013.

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KEY PLAN

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CHAPTER SIX

PRODUCTION CAPACITY The Company enforces a “Different Model, Different Standard Time” System of production. For example, one model of motorcycle (the GD 110) has a standard time of 69 seconds. Meaning, for every one minute and nine seconds, one unit of this model is completed and is ready for quality check. On the other hand, the GSX-R 600 model has a standard time of 1 minute and 25 seconds, which is the longest standard time among all of the assembly line. Therefore, for every 240 working hours (1 month of production): 240 hours = 864,000 seconds 864,000 69 seconds

= 12,522 units of GD110

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CHAPTER SEVEN

SUPPLY CHAIN ANALYSIS I. SUPPLY CHAIN PROCESS THIRD TIER SUPPLIERS Companies provide basic products like rubber, glass, steel,plastic and aluminium to the second tier suppliers

SECOND TIER SUPPLIERS These companies design vehicle systems or bodies for FirstTier Suppliers and OEMs. & Services which include welding, fabrication, shearing,etc.

FIRST TIER SUPPLIERS These companies provide major systems directly toassemblers.First tier suppliers are responsible management of second-tier suppliers.

AUTOMAKERS/VEHICLE MANUFACTURERS/ORIGINAL EQUIPMENT MANUFACTURERS (OEMS) Researching consumers’ wants and needs, automakers begin designing models.

DEALERS Vehicles after ready are shipped to the authorised dealers of thecompanies. The dealers then sell the vehicles to the end customers.

PARTS AND ACCESSORIES These companies provide products like tires,windshields, and air bags etc. to automakers and dealers or directly tocustomers

SERVICE PROVIDERS Services to the customers include servicing of vehicles,repairing parts, or financing of vehicles. Many dealers provide theseservices but, customers can also choose to go to independent serviceproviders.

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II. SUPPLY CHAIN MANAGEMENT The company works jointly with its suppliers to develop new products, achieve high localization levels, and reduce cost and ensuring quality of products by their vendors. Lean manufacturing and zero inventory are its goals. They achieved this by forecasting for demand; taking an order; giving an accurate promise date; sourcing and manufacturing the right goods; most important is that there is neither a pillions of parts at manufacturing sites nor of finished product to their warehouse or sellers. The company has adopted the Japanese system, Just In Time (JIT) to achieve higher operational efficiencies and reduce inventory carrying cost. To achieve JIT material supplies, the company has given preference to locally based suppliers. Over 76% of the company's 246 suppliers are located within 100 kilometers of radius. Suzuki supports its vendors in all possible ways: finding technology partners, giving financial, technical and management support.

III. NEW SUPPLY CHAIN MANAGEMENT The new supply chain has helped it achieve substantial cost reduction, from production to distribution. The entire process is IT driven and any exception during production, planning, and factory dispatch can be traced and corrective action made with no delay Prime driver with the supply chain project was to increase customer base in the current economic downturn.

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CHAPTER EIGHT

TOTAL QUALITY MANAGEMENT

Total Quality Management (TQM) means consistently and predictably producing what the customer wants. TQM is not just an outcome, but a never ending process of continually improving the delivery of what the customer wants.

I. ATTRIBUTES OF TQM AT SUZUKI PHILIPPINES

A. Kaizen Japanese

for

"improvement"

or

"change

for

the

better” refers to philosophy or practices that focus upon continuous improvement of processes in manufacturing, engineering, supporting business processes, and management. Improving standardized activities and processes, kaizen aims to eliminate waste. B. Continuous Improvement It starts with "Which procedures can be done better or more efficiently?” Continuous development of managers and employees along with process improvement. When everyone in the company accepts a degree of ownership , innovative ideas are developed and ongoing improvements are able to be made with valuable organizational input.

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C. Customer orientation Customers are the heart of a successful business, employee’s commitment for providing the best customer service possible and always looking for better techniques for better customer satisfaction.

D. Strict work discipline for individuals and the organization Defining rules for individuals and follow of the manufacturing protocol, to produce homogenous product every time.

E. Integrity Strong ethics are deeply entwined with TQM principles. Organizations which embrace these concepts tend to make ethically sound decisions and the right choices. As a result, solid business practices result and this adds significant value to an organization. F. Constant efforts to increase the productivity of labor and capital Training and simulation and solving real time queries are some of the methods of improving the productivity. G. Team Work Good relations among the employee and harmonic working condition are handy in maintaining quality at Suzuki.

The Operation Process and Management of 37 Suzuki Philippines, Inc.

II. JAPANESE PRINCIPLES OF 5S FOR TQM In order to bring an improvement in the overall processes and systems in production and operations, Suzuki adopted the basic Japanese principles of 5S. Also, efficient work and quality require clean environment, safety and disciplines. The 5S are prerequisites for any improvement program. As waste is potential gain, so eliminating waste is a gain. 5S Philosophy focuses on effective work place organization, simplifies work environment, reduces waste while improving quality and safety. There is no hope for efficiency or quality improvement with dirty work place, waste of time and scrap. The five S stand for the five first letters of these Japanese words: A. Seiri – sorting out B. Seiton – systematic arrangement C. Seiso – spic and span D. Seiketsu – standardizing E. Shitsuke – self-discipline A. Seiri

Sorting, keep the necessary in work area, dispose or keep in a distant storage area less frequently used items, unneeded items are discarded.

The Operation Process and Management of 38 Suzuki Philippines, Inc.

Seiri fights the habit to keep things because they may be useful someday. Seiri helps to keep work area tidy, improves searching and fetching efficiency, and generally clears much space. Seiri is also excellent way to gain valuable floor space and eliminate old broken tools, obsolete jigs and fixtures, scrap and excess raw material. B. Seiton Systematic arrangement for the most efficient and effective retrieval. A good example of Seiton is the tool panel. Effective Seiton can be achieved by painting floors to visualize the dirt, outlining work areas and locations, shadow tool boards. For improving changeover time with SMED or reduce machine downtime throught Total Productive Maintenance (TPM) it is necessary to have tools at hand. So a specific mobile tool cart was designed. An other example of Seiton are "broom carts". As cleaning is a major part of 5S we custom made carts to hold brooms, mops and buckets. Several carts have specific locations and all employees can find them. Seiton saying would be: "A place for everything and everything on its place." C. Seiso Cleaning. After the first thorough cleaning when implementing 5S, daily follow-up cleaning is necessary in order to sustain this improvement. Cleanliness is

The Operation Process and Management of 39 Suzuki Philippines, Inc.

also helpful to notice damages on equipment such as leaks, breakage and misalignment. These minor damages, if left unattended, could lead to equipment failure and loss of production. Regular cleaning is a type of inspection. Seiso is an important part of basic TPM; Total Productive Maintenance and Safety matter through cleanliness is obvious. D. Seiketsu Standardizing. Once the first three S have been implemented, it should be set as a standard so to keep these good practice work area. Without it, the situation will deteriorate right back to old habits. Have an easy-to-follow standards and develop a structure to support it. Allow employees to join the development of such standards. The 3 firts S are often executed by order. Seiketsu helps to turn it into natural, standard behaviour. E. Shitsuke Finally, to keep first 4S alive, it is necessary to keep educating people maintaining standards. By setting up a formal system; with display of results, follow-up, the now complete 5S get insured to live, and be expanded beyond their initial limits, in an ongoing improvement way; the Kaizen way. The effect of continuous improvement leads to less waste, better quality and faster lead times.

The Operation Process and Management of 40 Suzuki Philippines, Inc.

CHAPTER NINE

CONCLUSION From Japan to the Philippines, Suzuki has been one of the leading brands when it comes to manufacturing motor vehicles. All sorts of lifestyle can be deemed fit in the vast collection of products that they offer: from motorbikes to four by four heavy duty vehicles, from business, to leisure, to style. That is what Suzuki has imprinted on the minds of their consumers. Suzuki Philippines, Inc., the Filipino-oriented subsidiary of Global Suzuki, is the only “Auto-Moto” company that runs here in the country. “Auto-Moto” meaning that they manufacture motorcycles and automobiles under only one specific management. This only proves that they provide an excellent system of managing their production processes – from the handling of raw materials up to testing the final product. They have an infallible structure of systematic processes and hierarchy of competitive workforce that provides service and care to each and every Suzuki vehicle that comes as a product of this process. They use various systems of quality management, because they know that in their industry, the safety of the people who use their products is really an essential factor in getting the consumers’ trust. For almost 28 years of being in the business, they have accomplished quite a lot of impressive awards that goes to prove that not only do they make a good business but also, they know how fulfill their responsibilities to their consumers –

The Operation Process and Management of 41 Suzuki Philippines, Inc.

from giving them the value that they deserve and also by giving back in various means. The company also formulated the new blue print for growth as it refocuses its sights on the emerging motorcycle solo-ride and tricycle market, and it does not plan to stop where it is today.

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CHAPTER TEN

GALLERY

The Operation Process and Management of 43 Suzuki Philippines, Inc.

The Operation Process and Management of 44 Suzuki Philippines, Inc.

APPENDIX

COMPANY DIRECTORY

Suzuki Philippines Head Office 126 Progress Avenue, Carmelray Industrial Park I, Carmeltown, Canlubang, Calamba City, Laguna, Philippines

Trunkline:

Toll Free Number:

(02) 902-1000

1-800-100-SUZUKI (789854)

SUZUKI DEALERS LIST

Suzuki Auto Manila Bay

Exarich Commercial Multicab dealer

Diosdado Macapagal Boulevard Corner Sen. Gil J.,

Amang Rodriguez Ave, Pasig City 1600

Puyat Avenue, Pasay City

Exarich Commercial- Mulitcab dealer Fairview B148 L 25 Mindanao Ext., Brgy Lagro, Quezon City

Suzuki - Kapasigan, Pasig City Branch Kapasigan, Pasig City, Metro Manila

Suzuki Auto- Laguna Areza Town Center, National Highway, Bgy.

Motortrade Suzuki 3S

Canlalay, Binan, Laguna, Arreza Compound Inner

289 Suarez Street, Palatiw, Pasig City

Rd, Biñan City

Suzuki Auto Quezon Avenue

Suzuki - Poblacion Caloocan City Branch

1142 Quezon Avenue, Quezon City

337 A. Mabini Street, Poblacion, Caloocan City, Metro Manila