TATA MOTORS

SUBMITTED BY:ADITYA CHOUDHARY(T001)

NIRANJAN NAHAK(T021)
SOUMEN KUNDU(T028)
SOUMYA MOHAPATRA(T030)
VINAY PANDEY(T040)
MUKESH KUMAR(M8-03)
SUSHANT SASMAL(M8-09)

 Soumya

Mohapatra - Role of Operations in meeting

Organizational Goals & Matching Supply to Demand

Soumen

Kundu - Where? Facility Planning

(Location & Layout
Niranjan Nahak - How much is required? Demand
Forecasting and inventory management
Vinay Kumar Pandey - Capacity Planning
Mukesh Kumar - Production Planning and
Scheduling
Aditya Choudhary - Managing Quality
Sushant Sasmal - Planning for Maintenance

TATA MOTORS
Head

Office address
Tata Motors Limited
One Indiabulls Centre,
Tower 2A & B, 20th floor,
841, Senapati Bapat Marg,
Jupiter Mills Compound,
Elphinstone Road (West),
Mumbai 400 013.

NATURE OF BUSINESS AND

BUSINESS SEGMENT
Sector

: Automobile

Industry

: Light, Medium and Heavy Vehicles

HISTORY
Founded : 1945
Founder : JRD Tata
Headquarters : Mumbai,India
Key people : Ratan Tata,Ex-chairman; Cyrus P
Mistry, Non Executive Director & Chairman
Parent : Tata Group

IMPORTANT EVENTS
Tata

entered the commercial vehicle sector in 1954

after forming a joint venture with Daimler-Benz of
Germany.

Tata

Motors entered the passenger vehicle market

in 1991 by launching the Tata Sierra, a multi utility
vehicle.

Tata

launched the Indica in 1998, the first fully

indigenous Indian passenger car.

CONTD.
2004

Tata Motors acquired Daewoo's South Koreabased truck manufacturing unit.

2006,

Tata formed a joint venture with the Brazilbased Marcopolo.

2008,

Tata Motors acquired the British car maker

Jaguar Land Rover, manufacturer of the Jaguar,
Land Rover and Daimler luxury car brands, from
Ford Motor Company.

GLOBAL PRESENCE
Tata

Motors leverages a comprehensive global

distribution network operating in 182 countries and
over 6,600 sales and service touch points.
BRANCHES:
UK
SOUTH KOREA
RUSSIA
EUROPE
AFRICA
THE MIDDLE EAST
SOUTH EAST ASIA
SOUTH ASIA
SOUTH AMERICA

COMPETITORS

PRODUCTS
Passenger

Cars & Utility Vehicles

Commercial

Vehicles

CONTD.
Military

Vehicles

MARKET STRUCTURE
Oligopoly

Market
Few Sellers and Few Buyers
Differentiated/Undifferentiated
Products
Restriction in entry and exit
Interdependence

LEVELS OF STRATEGY
Corporate level strategy
(directional strategy)
Growth
Stability
Retrenchment

Business level strategy

(competitive strategy)
Cost leadership
Differentiation (product)

Functional level strategy

Marketing strategy (4 ps)
Financial strategy (sources of
finance)
R&D strategy (technological
leader, innovation)
Operation strategy (production
strategy)

CORPORATE LEVEL STRATEGY

Tata & Fait since 2006

Tata Motors (SA)
Tata Motors' joint venture
with Tata Africa Holdings,
has an assembly plant in
the Gauteng province of
SA.
Tata Automobile
Corporation SA
Tata Africa Holdings
through a joint venture
between Accordian
Investments and the
Imperial Group, to market
and distribute Tata
vehicles in SA.

BUSINESS LEVEL
STRATEGY

Tata

nano, the cheapest car in the

world
Swach, the cheapest water filter from
Tata Chemicals. less than Rs 1000.
Tata Motors launched the Ace truck in
May 2005 for just above Rs 200,000.
Tata Motorsnew launches like Aria and
the new 2011 Safari to regain its lost
market share.
Tata is looking at doubling SUV annual
volumes to over 70,000 units in the
next 12-18 months, including exports.
Tata Motorsis set to offer utility
vehicles at everypricepoint right
from Rs. 6.5 lakh to Rs. 15 lakh.

OPERATIONS STRATEGY

Tata

Group companies cumulatively spend Rs.12,500 crore on

research & development.

knowledge-based engineering application software from Tata

Technologies that speeds up results.

An engine start-stop technology developed by Jaguar Land Rover

that stops an engine when the vehicle isn't moving, thus saving on
fuel;

High standard steel for safer and fuel efficient vehicles from Tata
Steel Europe

The world's cheapest car, Nano, an innovation from Group company

Tata Motors, launched in April 2009, has 37 patents,

Swach, the cheapest water filter from Tata Chemicals, has 14.

Tata Steel, which acquired British company Corus in 2007,

meanwhile, files around 50 patents each year.

Jaguar Land Rover has re-hauled its supply chain to secure cost
savings as well as a sustainability equation that gives the company
a green edge

A re-designing of process equipment at Tata Chemicals' Haldia plant

that cut process downtime by 40%.

Plant

Locations:
Tata Motors presence cuts across
the length and breadth of India.
Over 4 million Tata vehicles ply
on Indian roads.
The company has four major
manufacturing bases in India.

1.Jamshedpur(Jharkhand):
Established in1945, the Jamshedpur unit was the company's first unit
and is spread over an area of 822 acres. It consists of two major
divisions - Truck Factory & Engine Factory.
The Truck Division boasts of two assembly lines. The main assembly
line, measuring 180m in length has 20 work stations with a vehicle
rolling out every 8 mins. The other line is dedicated to special purpose
vehicles and for meeting the requirements of the Indian Army.
2. Pune (Maharashtra):
It was established in 1966 and has a Production Engineering
Division.To cope with a diverse range of automobiles, four assembly
lines have been established, one each for MCVs and HCVs, LCVs,
Utility vehicles and one for Passenger Cars (Indica and Indigo).

4. Pantnagar (Uttarakhand):
The plant began commercial production in August 2007. The plant is
spread over 953 acres, of which 337 acres is occupied by the vendor
park. Tata Motors plans to shift the entire production of its mini truck
Ace and the passenger carrier variant of the vehicle, Magic, to
Uttarakhand.
3. Lucknow (Uttar Pradesh):
This plant was established in 1992 to meet the demand for
Commercial Vehicles in the Indian market. The state of art plant is
strongly backed by an Engineering Research Centre and Service setup to support with latest technology and cater to the complexities of
automobile manufacturing. This plant is specialized in the designing
and manufacturing of a range of modern buses which includes Lowfloor, Ultra Low-floor & CNG Buses

Production capacity:
The segment wise production is as follows :
Location, Type of vehicle manufactured, Production Capacity (Lakh/PA)
Pune Passenger Cars (Indica, Indigo, Marina, Indica Vista) 2.7 L
Pune Commercial Vehicles (MCVs and HCVs, LCVs, Utility
vehicles) 2.5 L
Jamshedpur Trucks & Special Purpose Vehicles 1.08 L
Lucknow Buses 0.6 L
Pantnagar (Uttarakhand) Mini Truck (Ace), Passenger Carrier
(Magic) 2.25 L

Inventory management
Q) Why It Is Important to Understand the Cost Relationships in
Production and Inventory Management.
Ans: They affect the economic efficiency (profits) of the firm and an
understanding of these relationships helps managers make more
effective production decisions.
Inventory Management
Reasons to hold inventory
1. Matching supply with demand
2. Prevent stockouts
3. Lower purchasing costs
. Reasons not to hold inventory
1. High maintenance cost
2. High protection cost
3. Depreciation and obsolescence
4. Taxes

Procurement
E procurement initiative.
Global Sourcing Team China , a key destination for sourcing
essential items like tires, power steering units etc., Steel procured from
Belarus

Long term relationships with a stable and loyal pool of suppliers.

Technology driven procurement SAP and VCM.

Strategic subsidiaries & JVs TACO group of companies , Tata

Cummins

Centralized Strategic Sourcing for key components FIPs, Steel etc.

Group resources Tata Steel and Tata International .
Localized supplier base at mfg. locations low inventory levels.

Facility Layout
Layout

planning is determining
the best physical arrangement of
resources within a facility.
It may be defined as a technique
of locating machines, processes
and plant services within the
factory so as to achieve the right
quantity and quality of output at
the lowest possible cost of
manufacturing.

Objective of a good
Layout
Provide

enough production
capacity.
Reduce material handling costs.
Reduce congestion that impedes the
movement of people or material.
Reduce hazards to personnel.
Increase employee morale.
Reduce accidents.
Utilize available space effectively &
efficiently.

Product Layout
Involves

the arrangement of
machines in one line, depending
upon the sequence of operations.
Materials are fed into the first
machines and finished products
come out of the last machine.

Principles
a) All the machine tools or other items of
equipments must be placed at the point
demanded by the sequence of operations
b) There should no points where one line
crossed another line.
c) Materials may be fed where they are
required for assembly but not necessarily at
one point.
d) All the operations including assembly,
testing packing must be included in the line.

Advantages:
a) Low cost of material handling, due to straight and
short route and absence of backtracking
b) Smooth and uninterrupted operations
c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Less congestion of work in the process
h) Simple and effective inspection of work and simplified
production control
i) Lower cost of manufacturing per unit

Disadvantages:
a. High initial capital investment in
special purpose machine
b. Heavy overhead charges
c. Breakdown of one machine will
hamper the whole production process
d. Lesser flexibility as specially laid out
for particular product.

Capacity planning of Tata motors

The TATA formed part of an overall plan to rejig production at
Ranjangaon, Pune and Sanand Gujarat plants and comes at a time
when the automaker posted its second-lowest wholesale
dispatches of 948 trucks in April, in a clear under utilization of
its 2.5 lakh units capacity.

Forecasting of TATA motors

Tata

Motors, is now looking to set up a

truck manufacturing plant in Myanmar.

technology
The

Tata Technologies Manufacturing

Automation and Control Systems
group (MACS) provides solutions to
consolidate and streamline
manufacturers operations. MACS
tightly integrates the supply chain and
enables integration between
enterprise and plant-floor systems.
Thats better on the shop floor and
better in the marketplace.

Cont..
Over

the years, this division has designed

and manufactured automated dies, fixtures
and welding equipment. Its large design
group has some of the latestCADfacilities
and manufacturing facilities consisting of
light and heavy CNC machine shops, jig
boring room, plastic template shop, wood
pattern and model pattern shop, five axis
precision machine tools and laser control
machines. To cope with such a diverse
range, four assembly lines have been
established, three for commercial vehicles.

Capacity production
The

Jamshedpur factory, which can

produce as many as 11,000 commercial
vehicles a month, is running at half its
capacity, according to two plant
officials who declined to be identified.
As the market is down, there has to be
some adjustments made in promotion
systems. So we have brought in a
rotation system where a set of workers
will work in the first month and the rest
in the following month

Cont.
Tata

Motors commercial vehicle sales rose 3% to

432,597 units, while overall industry sales fell
0.37% to 639,806 units. Tata Motors sales in the
medium and heavy vehicle segment, however,
contracted 29% to 117,682 units in the same period.
The Pune unit is spread over two geographical
regions- Pimpri (800 acres) and Chinch wad (130
acres). It was established in 1966 and has a
Production Engineering Division, which has one of
the most versatile tool making facilities in the
Indian sub-continent.

Cont.
It

houses a vehicle manufacturing complex which is

one of the most integrated automotive manufacturing
centers in India; producing a large variety of
individual items and aggregates. It is engaged in the
design and manufacture of sophisticated press tools,
jigs, fixtures, gauges, metal pattern and special tools,
as well as models for the development of new ranges
of automobile products. Its capabilities have enabled
Tata Motors to introduce new products and improve
existing ones without resorting to imports of dies or
fixtures.

Cont.
With

a growth of 28% in 2006-07, Tata

Motors recorded its highest ever sales of
580,280
(334,238 commercial; 246,042 passenger)
vehicles. The Companys exports witnessed a
growth
of 6.5% to 53,474 numbers. The approximate
indirect economic impact generated by the
company in 2006-07 is summarised below

INDIRECT

ECONOMIC IMPACT
Worldwide, Transport sector has emerged as the
biggest employer *
1 Commercial Vehicle - employment for 13.3
people
1 Car - employment for 5.3 people
1 Three Wheeler - employment for 3.9 people
1 Two Wheeler - employment for 0.5 people
* Source: Automotive Mission Plan 2006-16,
Includes: Direct and Indirect Employment

Theadministrativeprocessthattakes

placewithin
amanufacturingbusinessandwhich
involvesmakingsure
thatsufficientrawmaterials,staffand
othernecessaryitemsareprocured
andreadytocreatefinishedproducts
theschedulespecified.

To

achieve its design goals, Tata

refined the manufacturing process,
emphasized innovation and
sought new design approaches from
suppliers. Many components of the
Nano are made in
Germany by Bosch, such as Fuel
Injection, brake system, Value
Motronic ECU, ABS and other
technologies.

The

Nano was originally to have

been manufactured at a new
factory in:
Singur- but increasingly violent
protests forced Tata to pull out
Tata Motors is
reportedly manufacturing Nano
at its existing plant in:
Pantnagar

Cost cutting features

The Nano's trunk does not open.

Instead, the rear seats can be folded
down to access.
It has a single windscreen wiper
instead of the usual pair.
It has no power steering.
It has no ABS.
In Base model it has three lug nuts
on the wheels instead of four.
It has only one side view mirror.

Cotn
introducing

the car with an artificially low

price through government subsidies and
taxbreaks.
forgoing profit on the car.
using vertical-integration to artificially
boost profits on cars at the expense of their
materials industries.
partially using inexpensive polymers or
biodegradable plastics instead of a full
metalbody
raising the price of the car.

Tata

motors makes it production

planning in such a way that sufficient
raw material , staff and other necessary
items are available in proper way to
produce and make a product in finished
goods during a given time period
without making any delay in production.
Company makes aplann about its
production in advance keeping in mind
the availability of the resources and the
ordered recived is ful filled

schedule
aplanofprocedure,usuallywritten,fo

raproposedobjective,especiallywith
referencetothesequenceofandtime
allottedforeachitemoroperationne
cessarytoitscompletion

Tata

motors used to do scheduling in

such a way so that it minimize the
production time and costs, by telling a
production facility when to make, with
which staff, and on which equipment.
It aims to maximize the efficiency of
the operation and reduce costs.

Tata

motors uses Production scheduling

tools which greatly outperform older manual
scheduling methods.
These provide the production scheduler with
powerful graphical interfaces which can be
used to visually optimize real-time work
loads in various stages of production, and
pattern recognition allows the software to
automatically create scheduling
opportunities which might not be apparent
without this view into the data.

Tata

motors uses backward and

forward scheduling to allocate plant
and machinery resources, plan human
resources, plan production
processes and purchase materials.

Forward

scheduling is done to plan the

tasks from the date resources become
available to determine the shipping date
or the due date.

Backward

scheduling is done to plan the

tasks from the due date or required-by
date to determine the start date and/or
any changes in capacity required.

The

benefits of scheduling to tata

motors
Process change-over reduction
Inventory reduction, leveling
Reduced scheduling effort
Increased production efficiency
Labor load leveling
Accurate delivery date quotes

 Websters dictionary

defines quality as "a degree or grade of

excellence or worth". For the best companies in todays global
business environment, the term means much, much more.
They see quality as the cornerstone of their enterprise, and the
ability to enhance it as the defining principle of profitability.
Tata Engineering, which turned the corner recently, has come to
understand this better than most.
Indias top automotive manufacturer is now reaping the rewards of
a comprehensive quality improvement initiative that it embarked
upon in September 2000.
The quality initiative has played an important role in the costcutting measures undertaken by Tata Engineering

 Six

Sigma under TBEM: The quality improvement project at Tata Engineering operates under the
umbrella of the Tata Business Excellence Model.
But the main component of the quality undertaking is Six Sigma, a
disciplined, precise and widely proven methodology that aims for nearflawless products and services.
Developed by Motorola in 1986, Six Sigma employs a range of
strategies and tools to eliminate defects in processes.
Sigma, a letter in the Greek alphabet, is used by statisticians to denote
the standard deviation of a process.
To achieve Six Sigma quality, a process must produce no more than 3.4
defects per million opportunities (an opportunity is defined as a chance
for non-conformance, or not meeting the required specifications).

 The

higher the number of defects, the lower is your Sigma

score.
There were many Sigma defects that Tata Engineering had to
eliminate to get back on track.
The weight of competition, ever-increasing customer
expectations and shifting market conditions made change an
absolute imperative.
The companys older vehicles were getting obsolete, and its
newer ones were lagging behind in terms of customer
satisfaction.
The focus of the Six Sigma programme at Tata Engineering
was, and remains, the customer.

 Winning

strategy
"We realised that to succeed we had to completely reorient the
companys thinking and the thinking of our people," says Atam P
Arya, Tata Engineerings senior vice president overseeing the quality
initiative.
"We had to stop treating quality as a burden and start accepting it as
the main purpose of our existence. Quality became, for us, the
strategy for survival and for winning."
An important challenge for Tata Engineering was in changing the
mindset of its people. "Initially our people were very skeptical; they
thought this was some new fad that would soon go away.
To ensure it did not, the company conducted a blanket
communication and training exercise across the organization.

The company took its products and analysed what customers

would want from them, and the critical-to-quality (CTQ)
characteristics they would be looking for.
For instance, a customer buying a truck will consider whether
it measures up in terms of load, speed, fuel efficiency,
operational smoothness, etc. These are his CTQ
characteristics.
As long as a CTQ attribute can be defined, it can be
incorporated in the Six Sigma model.
These attributes can then be linked to the manufacturing
parameters that must be achieved under the Six Sigma process
to meet a customers expectations.

Customer-desired service
Tata

Motors Service rests on three core customerdesired service promises: Responsive: Tata Motors Service will bring speedy
assistance through five responsive service offerings.
1) Doorstep service, 2) Online service, 3) Speed-Oservice,
4) Quick repairs, 5) 24X7 on-road assistance
programme
Reliable: Quality service is a key deliverable across all
Tata Motors Service stations. Nearly 20,000 technicians
and 20,000 staff members, which includes workshop
supervisors and front office staff, have been trained and
certified by Tata Motors. There are two service offerings
under this promise.

Best

value: Tata Motors is known for delivering

best value products which give value for years. Service

products are also designed on the same philosophy. This
promise has four offerings.
1)Rapid Repair, 2)Value Care, 3)Tata Motors Original
Parts, 4)Extended Warranty.

Other steps
To streamline its supply chain, Tata Motors Ltd plans
to reduce the number of parts suppliers by one-third in
three-four years as it gears up to introduce new cars.
The auto maker, which has seen domestic market share
fall in recent times, aims to have only one supplier for
each part that goes into making a car to ensure
consistent quality and reduce costs.
It is a strategy, Slym said. Instead of eight suppliers
for one product, we will have one.

Maintenance
Maintenance is all activities
involved in keeping a systems
equipment in working order

Maintenance Management
Systematic approach to
planning the maintenance
activities, using decision
making tools to improve
overall efficiency and
effectiveness of the operating
system.

Tata

motors uses regular maintenance check

up for its various machinery so that production
can be done in a systematic and smooth way.
Greecing , lubricating of its equipment is done
at regular interval.
Company uses spare parts for its machines
which is original and its quality is standard so
that it runs for a longer period of time and the
maintenance cost can be reduced. Some times
company stopped its production for a few days
so that proper maintenance of the equipment
can be done and what ever replacement is
required can be made

Method
Engine

oil
Engine oil reduces friction & thus reduces wear in pistons,
bearings & other moving parts.
Engine oil also helps in better sealing during combustion of
fuel.
Engine oil also cools high temperature zones in engine through
heat transfer to oil cooler & engine sump.
Oil also helps in flushing & cleaning carbon & soot deposited
during combustion within the engine.
Some amount of oil is lost or consumed in process of all of the
above. The oil consumption may vary from engine to engine &
may also depend on driving condition & usage. It is thus
necessary to periodically check & top up the engine oil level.
Engine oil gradually loses its said properties with use & is to be
periodically changed to restore its effectiveness & improve
engine performance & life.

 Timing

Belt
Timing belt becomes worn, elongated & hardened with
usage
In case of any teeth damage / uprooting the valve
timing would get disturbed with major damages to
valve train, camshaft & pistons
Thus timing belts are to be periodically checked &
replaced as per TML recommendations
Valve Clearance
Valve contact with their seats should be air tight for
optimum engine performance
With use the contact surface of valve with seat &
camshaft wears off increasing the clearance
The increased clearance results in leakage of
compression & thus inefficient engine operation
Valve clearance thus is to be periodically adjusted as
per TML recommendations

Drive

Belts
Drive belts drive engine auxiliaries like alternator, AC compressor, Power
steering pump & radiator fan (in some models).
With usage, the drive belt wears out, elongates & hardens. This leads to belt
slip which affects the performance of these auxiliaries viz. Battery draining,
less AC cooling, engine overheating etc.
The belt tension is thus to be periodically adjusted & belts to be replaced, if
damaged.
Snapping of belt during drive could be potentially dangerous due to sudden
loss of brake & power steering efficiency.
Cooling system
The cooling system is sealed & pressurised to improve cooling.
Coolant is used for prevention of rust & scaling, which reduces space in
cooling water passages in engine & radiator
The coolant loses its properties gradually due to heat & chemical changes.
The coolant is thus to be periodically replaced as per TM recommendation for
better efficiency.
The rubber hoses in cooling system harden over a period of time, thereby
losing flexibility in connections or develop cracks. This leads to water leakage,
which can overheat & damage the engine.
The hose clips are therefore to be tightened periodically & hoses replaced for
crack & hardness complaints.

Exhaust

Pipe & Catalytic Converters

Exhaust pipe & silencer can corrode due to moisture & sulphides in
exhaust gases.
Damage to exhaust pipe can also take place due to flying stones hitting
the underside of the same.
Leakage of exhaust gases lead to air & noise pollution.
The noble metal present in Catalytic Converter has fine passages for
chemical reaction to reduce emission. The passages can get choked
gradually with carbon / soot, especially if fuel system is defective & fuel
is adulterated. This reduces engine pickup, increases pollution & fuel
consumption.
The exhaust pipe & catalytic converter are to be periodically cleaned by
blowing compressed air through them..
Catalytic Converter
To reduce exhaust pollution, your car is fitted with Catalytic Converter,
which removes harmful pollutants. For its proper functioning, we
recommend the following fuels to be used:
For diesel version it is mandatory to use diesel fuel with sulphur content
less than 0.25%.
For petrol car use only Unleaded Petrol with octane rating of atleast 87%.

Dos
Always

make sure that the tyres of your vehicle are filled

with recommended air pressure. Both low and high
pressure will hamper smooth driving and tyre life.
Maintain correct tyre pressure to ensure better tyre life.
2Check and maintain electrolyte level in the battery.
3Daily maintenance is to be regularly performed
especially on coolant level and engine oil level.
4Ensure periodic servicing as per maintenance schedule.
5For any adjustments or repairs please contact or go to
Tata Motors dealership and authorised service stations
only.
6Use only recommended oils and lubricants. Check and
replace oil in engine, gear box, rear axles and brake
master cylinder periodically as per schedule.

Dont
Do

not keep the engine at full throttle during engine

cranking. Keep the engine idling till the oil pressure builds
up.
2Don't allow the engine to be idle for long periods.
3Don't come down the gradient in top gear. Always
change into a lower gear.
4Don't run the vehicle without a battery in its electrical
circuit, as the life of alternator will be reduced.
5Do not mask head lamp lens (top 1/3 or top 1/2 portions)
with black paint. If done, this will reduce head lamp light
intensity.
6Don't use any other than approved brands/grades of
fuels and lubricants.
7Don't tamper with any adjustment made by Tata Motors
dealerships and workshops.

Driving Tips
While

driving the vehicle, always use seat belt for your safety.
Same is applicable for all passengers.
2 Avoid cranking of engine for more than 30 seconds. A gap of 2
minutes should be observed between successive attempts.
3Don't start the vehicle by pushing it.

Always start moving the vehicle in first gear.

5Don't

adjust the seat belt while driving.

Always keep the vehicle in neutral gear while engaging and

disengaging the reverse gear.
7 On bad surfaces reduce your driving speed and drive cautiously.
8 While travelling on inclines, change into a lower gear to get the
required pick-up

CONCLUSION
Tata

Motors has been at the forefront of the

Indian automobile industrys anti-pollution
efforts by introducing cleaner engines.
Therefore Tata Motors Limited is always
commited to understanding customers needs.
The name of TATA itself says it all
Trust
Acceptability
Transparency
Accountability

THANK
YOU