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Global Footprint
OTHER COLLABORATIONS/M&A &
JVs
Tata Daewoo Commercial
Vehicle
Hispano in Spain & Marcopolo
In Brazil
JV with Jardine Matheson for
ConcordeMotorsNorth Africa
Technology Tie Ups
at
Egypt
Spain,Italy
West Europe
U.K.
Italy
Russia*
Ukraine*
Central Asia
Afghanistan East Asia
Uzbekistan
China
South Korea*
South Asia
Bangladesh *
Nepal, Sri Lanka
West Africa
Senegal
LATAM
Brazil
West Asia
Saudi Arabia
Iraq, Iran
South Africa
South Africa*
East Africa
Kenya*
Product Range
TATA Motors: Commercial Vehicles
Technological Resources
R & D establishments at Jamshedpur, Pune &
Lucknow over 1400 engineers.
Indias only certified crash test facility for cars and
hemi anechoic chamber for testing of noise and
vibration.
Tata Motors European Technical Centre (TMETC) set
up in 2005 primarily involved in design
engineering and development of products,
supporting Tata Motors skill sets.
Tata Daewoo Commercial Vehicle Co. has its R&D
Organizational Resources
Process Approach EPM (derived from APQC
processes and TBEM model.
Financial Resources
Stable cash flows for the past five years
Cash rich corporate parent Tata Sons
Strong reputation access to capital markets
Dealer Network,
Marketing Research
Firms, Vehicle
Financing
SAP , VCM
Inbou
nd
Logist
ics
Operatio
ns
Outbou
nd
Marketing Servi
ce
Logisti
cs
SAP , CRM - DMS
Suppliers , Contractors
Regional Warehouses,
Dealer Workshops,
Distributors, TASS
Strategic Alliances
9
Inbound Logistics
Long term contract with service providers
transporters and agents.
Personnel at regional offices for over seeing the
smooth transit of goods.
Transparency and monitoring through deployment
of IT all transactions through SAP.
DTL supplies for critical high value items.
Efficient storage facilities easy storage and
retrieval.
10
Operations
Outbound Logistics
12
Marketing
&
Sales
Service
Easy availability of spare parts.
Efficient collection of data from field and
communication to the respective plants.
Pan India presence, as well as global presence.
Large network of workshops Dealer workshops
and TASS.
Training facilities for dealer end and TASS
personnel.
14
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 .
15
Localized supplier base at mfg. locations
low
Technology Development
Approximately 2% of the annual profits of the
company invested in research and development.
Knowledge portal helps employees keep abreast
with the latest technologies.
Extensive prototype building and testing facilities.
Strategic partnerships MDI (France), Fiat etc.
Formal benchmarking process.
Technology Day organized across all plant
locations.
16
Human Resource
Vast pool of technically competent engineers and
managers.
Focus on development of technical capabilities
Technical Training Centers, Alliance with technical
Institutes
Focus on development of managerial capabilities
MTCs , TMTC, executive training programs at premier
business schools
Career advancement schemes ESS, FTSS
17
Firm Infrastructure
Multi Location facilities
Strong leadership under the aegis of Tata Sons
Best in class prototype building facilities
Technology SAP
Large product portfolio
18
Dynamic Capabilities
NPI Process reduced time to market
Tata Motors Vehicle NPI Process Conceptual Overview
Project
Initiation
PIPI
Concept
Development
Phase
Concept
alternatives
QFD
Styling themes
Packaging
Manf. Feasibility
Cost targeting
DR0
DR0
Product
Product
Strategy
Strategy
Review
Review
9BOX &
supporting
docs
Performance &
Weight analysis
Style & Spec
devmt. & Freeze
Vehicle &
Aggregate plans
Product costing
Financial analys
DR1
DR1
Concept
Concept
Selection
Selection
DR1 Sign-offs
Product Profile &
tech targets
Recommended
style theme
Prelim. Cost / wt
targets
Prelim. Biz case
Product
Design and
development
Phase
Design Validation
&
Productionisation
Phase
PreProduction
Phase
Ramp-up
Phase
Design analysis
& simulation
Alpha proto
tests
Aggregate tests
Crash tests
Manf. Planning
Detail costing
Full design
validation
Beta proto tests
Production tooling
Vendor parts dev.
Install & comm.
Facilities
Quality Proving
& Process
validation
P0 & PP Builds
Vendor parts
approval
Homologation
Ramp-up
PL Build
DR2
DR2
Concept
Conceptand
and
Project
Project
Approval
Approval
DR2 Sign-offs
Product spec &
Features list
Vehicle Test Plan
Style & packaging
sign off
Time & res. plan
Full Biz. case
DR3
DR3
Design
Design
Release
Release
DR3 Sign-offs
Design release
Long lead tooling
signed off
Component
reliability plan
Biz. Case
validation
DR4
DR4
Production
Production
Release
Release
DR4 Sign-offs
Critical issues
brochure
Vehicle test
requirements met
Control plans
signoff
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DR5
DR5
Project
Project
Review
Review
LL
Launch
(Indicative)
Concept
Evaluation
Phase
Market
analysis
Competitor
assessment
Explore Prod.
Options
Product
planning
(Partial)
Gateway
Deliverables
Gateways
Activities
Phases
Product
Strategy &
Planning
Phase
DR5 Sign-offs
Launch volumes
QP build
completion
Vendor parts
fully approved
Ramp up plan
INSTITUTIONS
R&D
Strategic
partnerships
Joint ventures
Acquisitions
Intensive
management
development
Government support
(10Year
Plan) for
New
institutions
trade promotion,
technology upgradation, quality
enhancement (ACMA:
Automotive
Component
Manufacturers
Association, SIAM:
Society of Indian
Automobile
20
Manufacturers
)
Key Strategies
International strategy based on the competitive
advantage:
New product (eg. Tata Nano, the cheapest car in the World).
Acquisitions (eg. Land Rover and Jaguar brands from Ford
Motors).
Partnership with established companies (eg. Alliance with Fiat
since 2006) to enhance the product portfolio and knowledge
exchange.
Facilities for learning from other companies.
Developing programmes for intensive management development.
21
Process Benchmarking
Optimize the value chain using distributed
Manufacturing
The power of IT has been extensively leveraged
State-of-the-art CAD and CAM services integrated
design across multiple disciplines
IT helped the company shrink the design cycle time
BSM tools from BMC Software played a key role
TML decided to adopt IT service management
concepts outlined in the ISO 20000:05 international
standards, as well as best practices outlined in the
IT Infrastructure Library (ITIL) Version 3
22
Process Benchmarking
service-oriented management architecture that
treated services as assets and managed them on
a life cycle basis.
In-house manufacturing capability with CNC
manufacturing operations
have implemented Six-sigma, Kaizen & TPM.
23
Strategic Benchmarking
24
Strategic Benchmarking
Objective:
Achievements
The sole winner of the JRD QV Award 2005 was
the commercial vehicle business unit, or CVBU, of
Tata Motors
PCBU's business excellence initiative has come
into its own.
Serious Adoption Award in 2004
Active Promotion Award in 2005
Tata Motors have crossed the level of 60% to win
the JRD-QV award in 2001, 2004 & 2005
respectively
26
Technological Framework
Attribute:
Innovation around cost
globally recognized technological
capabilities
'50s and '60s technical collaboration with
Mercedes Benz to design and manufacture
its chosen line of projects
Strong R&D at ERC
Possess capability to develop and test
durability, engine performance, emission,
safety, design and style, noise, hydraulics,
tracks, and instrumentation.
Opportunity to experiment and learn
from
31
Technology Capability
Hierarchy
32
Achievements
The company has the only world-class
crash facility in Asia outside Korea and
Japan
Developed an A-ECU (Electronic Control
Unit) and low-cost accessories that would
effectively manage critical engine and
vehicle systems without calling for a fullfledged and expensive conventional ECU
Striding towards new emission standards
Equipping vehicles of the future with
technologies for improving
communication, navigation and
entertainment- OneCat conceptual car
33
with fiber glass powered by air and
Diversification
1977 First CV from Pune plant.
1983 First HCV rolled out.
1986 First LCV (Tata 407) launched
followed by Tata 608.
1991 First passenger car Tata Sierra
launched.
1992 Tata Estate launched.
1994 Launch of Tata Sumo.
34
Diversification
1995 Mercedes Benz car E220 launched
1997 Tata Sierra Turbo launched.
1998 Indias first SUV launched.
1998 Indias first indigenous Passenger
Car Indica launched.
2001 Second Generation Indica v2
launched.
2008 Launch of Suma Grande
2008 Launch of Nano at ninth Auto Expo
35
The Preparations
Proper utilization of assets
Motivating people to work hard
Selective hiring
Job fitting
Training program
Better working environment
37
To create.
Firms
Resource
s
Rent
Generati
ng
Potential
Resource
Gaps
Strategy
to best
use the
capabiliti
es
38
HR Philosophy
Caring, show respect, compassion and
humanity for colleagues
Work cohesively with colleagues across the
group
Encourages self-sufficiency
Employees' relatives at Pune have been
encouraged to form various industrial cooperatives
The Tata Motors Grihini Social Welfare Society
caters to employees' women dependents'
39
HR Policies
Executive Selection Scheme (ESS) fast track programme for accelerated
growth
In-house vocational training and
apprenticeship programme trains the
technicians
Rotational assignments and crossfunctional mobility allow employees
to grow
40
41
Blue Ocean
Strategy
Red Ocean
Blue Ocean
43
Tata
Motor
TCS
Tata
Cummins
Tata
Cummins
Core
Competence
TAML
TACO
46
Thank
you
47