You are on page 1of 19

Tata Nano

VIHANG DEDHIA
SHRUTI CHEBOLU
SHASHANK BIRUA
Introduction
The Cheapest Car in the world
Mr. Ratan Tata calls it the Peoples Car
Result of a five year research and
development project.
The Supply Chain Members constantly
made efforts to reduce cost
Idea conceived by Rattan Tata.
Cost of development - 1700 crores.
Manufacturing cost (excluding dealer margin and taxes) -
Rs 65,000per unit.
Development of Design India.
Time for designing the car - 4 years.
Team - A team of 150 engineers, everyone below age 28.
Biggest hurdle - To make a car cheap car without
Compromising design.
Tata Nano - ONE LAKH CAR
PROJECT Peoples Car
Details of Nano Specs:
Engine: 624 cc / 33 bhp4 door.
5 setter (and yes 4 Wheeled too)
Rear Engine
Weight: 600 kgs
Mileage - 22-23 km/liter

Variants:
Standard
Deluxe (with AC)

Future:
Diesel Variant
Exports outside India or assembly plants
outside

Tata Nano The Complete Supply Chain
Suppliers
100
suppliers
Vendor
Park
Third
Party
Logistics
Local 3PL
institutions.
Tata Motors
Leading auto
manufacturer
Nano plant in
Sanand, Gujarat
3PL
Leveraged
existing
distribution
network.
Modular
approach

Customer
Largest
distribution
network
Middle Class
families
Drivers of Supply Chain
Facility Location
Transportation
Sourcing
Inventory
Information
Pricing
Facility Location
Gujarat Industrial Development
Corporation (GIDC)
Land
Gujarat Agriculture University (GAU)
DMIC
SIR
Multi modal connectivity
MICT
Infrastructure and
Connectivity
Rajkot
Land for supplier parks
Supplier proximity and
convenience
GM
Industrial and Labor environ.
Ahmadabad
Business Environment
Gujarat Industrial Development Corporation (GIDC)
Land
Government Regulation
and Support
Gujarat Agriculture University (GAU)
Land
Delhi-Mumbai Industrial Corridor (DMIC)
Special Investment Region (SIR)
Future Prospects
Transportation
97% local vendors
Almost half located in
Vendor Park
Most of the suppliers
are located across
India.
JIT and JIS
requirements
Truck optimization
softwares
Lead Time Map
Increased modularity
Local 3PL leveraged
Open
Distribution
Optimal
transportati
on network
Shorter
Lead
TImes
Distributed
Assembly
Model
Sourcing
Suppliers divided into Proprietary
and Non-proprietary.
97% parts sourced from local
suppliers.
Innovation in mfg. processes done
locally to avoid extra costs
Long term volume contracts rather
than annual contracts
75% single source components
Inventory
Just in time
Inventory
Leveraging the proximity of suppliers
Less number of suppliers
Multi-purpose
components
Innovative but not too much complexity in
design
Less number of total components
Seamless
Integration
Accurate data on forecast
Early Capture of design issues
NANO IT strategy
Tata Motors investment in IT for efficient
supply chain
Implementation of SAP 3.1 and 4.6c (Asias
largest implementation)
SAP SRM (Supplier Relationship Management)
for end to end supply chain integration)
SAP WM (Warehouse Management) combined
with barcodes to automate warehouse
operations)
Knowledge based Engineering (KBE) in design
NANO IT strategy
SRM platform used for sustainable
savings and value generation
Benefits
Reduction in procurement cycle time
Improve process by e-procurement
Real time supplier integration with business
Knowledge sharing
NANO IT strategy
SAP WM with mobile data entry is
combined with RF Technology (barcodes)
to automate warehouse operations
Benefits
Improved throughput at warehouses by RF
enabled processes
Capability enhancement to handle more parts
and team size
Real time inventory tracking

NANO IT strategy
Knowledge based engineering in CAD/CAM
with help of KNEXT in house software
Benefits of KBE
30% reduction in cycle time
Designers knowledge and companys best
practices retained



Reducing Inventory
Eliminating waiting time and delays
Increasing utilization of warehouses & trucks
Optimizing location of warehouses and plants
Optimizing transportation networks
Pricing
NANO supply chain strategy

Pricing:
Cost of the supply chain
Conventional Strategy
Calculate Production costs
+ Margin = Price
Tata Nanos strategy
Set price => Work
backwards & Challenge
Suppliers to lower costs

Pricing:
Cost of the supply chain
70% of the cost of the supply chain is
fixed at the design stage
Upstream Supply chain time
Lead Time map
Downstream: Functional Collaboration
with Suppliers at an early stage
Bosch & Delphi low cost components
CONCLUSION

Tata Nano achieves what most people deemed impossible through originality and
ingenuity. It is a no frills car that serves the needs of the general public and India's
bad road conditions and heavy traffic. In this sense, the production and launch of Tata
Nano can be called a revolution - not only to the consumers but also to industry
players. The great wonder car by Tatas has stunned the entire world. Critics who
often said that it was not possible to make a car at a price below $3000 were taken to
a back sit when Ratan Tata the chairman of Tata Motors unveiled this car in New
Delhi at a price of $2500. Since then it has been in lime light and has been making
news in the auto sector throughout the world

Thank You