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 Korea-

based truck manufacturing unit.

2006, Tata formed a joint venture with the Brazil-

based 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 p’s)

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.

Jaguar Land Rover is a

subsidiary of the Indian

carmaker Tata Motors since

2008

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 Motors new 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 Motors is set to offer utility vehicles at every price point right from Rs. 6.5 lakh to Rs. 15 lakh.

OPERATION’S 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' Haldiaplant 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 set-up

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 Low-

floor, 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 & JV’s – TACO group of companies , Tata

Cummins

• Centralized Strategic Sourcing for key components – FIP’s, 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.

Principlesa) 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. That’s 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 latest CAD facilities

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 fell0.37% to 639,806 units. Tata Motors’ sales in themedium and heavy vehiclesegment, however, contracted 29% to 117,682units in the same period.

The Pune unit is spread over two geographicalregions- Pimpri (800 acres) and Chinch wad (130acres). It was established in 1966 and has aProduction Engineering Division, which has oneof the most versatile tool making facilities in theIndian 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 Company’s 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

The administrative process that takes place within a manufacturing business and which involves making sure that sufficient raw materials, staff and other necessary items are procured and ready to create finished products

the schedule specified.

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

a plan of procedure, usually written, for a proposed objective, especially with reference to thesequence of and time allotted for each item or operation necessary to its completion

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

Webster’s dictionary defines quality as "a degree or grade of

excellence or worth". For the best companies in today’s 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.

India’s 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 cost-

cutting 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 near-flawless 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 company’s 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

company’s thinking and the thinking of our people," says Atam P

Arya, Tata Engineering’s 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 customer’s expectations.

Customer-desired service

Tata Motors Service rests on three core customer-desired

service promises:-

Responsive: Tata Motors Service will bring speedy

assistance through five responsive service offerings.

1) Doorstep service, 2) Online service, 3) Speed-O-

service,

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 system’s

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 sulphurcontent less than 0.25%.

For petrol car use only Unleaded Petrol with octane rating of atleast87%.

Do’s

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.

Don’t

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.

4 Always start moving the vehicle in first gear.

5Don't adjust the seat belt while driving.

6 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 industry’s 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