Published in PM World Today - February 2008 (Vol.

X, Issue II)

REGIONAL REPORT – INDIA – FEBRUARY 2008

The Tata ‘Nano’

Lessons and Issues in Project Management

By Raju Rao
International Correspondent for PMForum & PM World Today
Chennai, India

Never before has a single project in India generated so much of interest at the
global level. The recent launch of the Rs 1 lakh (about $2500) car from the
house of Tatas has indeed received rave reviews both in India and around the
world. Unveiled by Mr. Ratan N. Tata, Chairman of the Tata Group and Tata
Motors, ‘NANO’, the People’s Car signifies a first for the global automobile
industry.

Small is beautiful ! Tata Group Chairman Ratan Tata unveiling the Rs. 1 lakh car ‘Tata Nano’ at the
9th Auto Expo in New Delhi on 10 Jan 2008 .

“The vision was to give the people of India a car which is not produced anywhere
else in the world. Through Nano, which denotes high technology and small size,
I have tried to provide a reliable mode of transport to every Indian family,” Mr.
Tata told an overflowing press conference attended by Indian as well as
international media at the inaugural day of the Auto Expo 2008 here.

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Executive Support and the Role of the Champion

This is a project where the Chairman of the Tata group – Ratan Tata had shown
direct and personal interest all along. It is no small wonder that it was able to
weather many storms not the least being managing stakeholders while locating
the plant . This supports the well known doctrine identified by various studies
and surveys that for a project to succeed executive support is of utmost
importance. We can also identify the crucial role of the Project Champion here .

Stakeholder Management

Referring to the choice of Singur as the location for this greenfield car plant, the
Tata Group Chairman said: “East India has been industrially ignored. Therefore I
decided to locate the plant in West Bengal so more investment could flow in the
region. It was a big leap of faith for us. This project will definitely improve the
quality of life in the entire Hooghly district where the new plant is located.”
Construction work on the 250,000 unit plant, which is expandable to 350,000, is
going on in full swing, he added.

However, the issue of location has created considerable political turmoil and
violence with political parties taking sides . The issue was also taken into court .
The dust has now settled with courts accepting the location though one cannot
rule out some more issues to come up before the plant goes into stream .

Working with Teams

Girish Wagh: Man behind the machine.

The man behind building the ‘Nano’ is 37 yr old Girish Wagh . Ratan Tata
acknowledged the contribution of Wagh and his team of 500 engineers, calling
him over to the dais near the car and introducing him at the unveiling ceremony.
Girish Wagh, the leader of the Tata Motors engineers who built the Nano,
repeatedly used two words to describe how they helped turn Ratan Tata’s dream
into reality. “Team work... team work ... team work,”

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Product development

The ‘team work’ could be considered as a combination of innovation in design

and development, component engineering, and the skilful management of
vendors who are supplying components for the Nano. Tata Motors has filed 34
patents on various design innovations that went into building the car, some of
them relating to its engine, said Wagh, the head of the Small Car Project. More
than 100 vendors are contributing to the Nano, and Wagh indicated that some
vendors are playing a role in reducing the cost of the car. “About 80 per cent of
the cost is outsourced,” he said.

Beyond the project – Issues and concerns

The Nano is expected to bring pressures on the automotive industry world wide
to achieve an equivalent low price model . Some car manufacturers have already
announced plans e.g Volkswagen and India based Bajaj Auto. Two wheeler
manufactures in India expect that the Nano will affect their sales significantly.

According to Hormazd Sorabjee, one of the country's best known automobile

writers this is probably the most politically correct car every launched in
India.With its compact size, it addresses the issue of urban congestion, and with
its decent fuel consumption, it addresses the issue of oil at a hundred dollars a
barrel. The problem isn't too many cars but too few roads.

The Nano has its share of criticism – for one the large numbers that it is
targeted at could create infrastructure bottlenecks – an area which is woefully
behind in India as of now. The large numbers can also create environmental
problems and this is being pointed by many.

Nothwithstanding the criticism and indeed, more than just cheap transportation,
Tata has given India another symbol of its growing economic power and
achievement. The Nano is as much about national accomplishment as it is about
engineering efficiency.

Sources and References

Financial Express 14 Jan 2008 http://www.financialexpress.com/news/Tata-Nanos-

design-price-wow-foreigners/261017/

Tata Motors – Media Centre

http://www.tatamotors.com/our_world/press_releases.php?ID=340&action=Pull

CTV News
http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20080118/india_nano_080118/2
0080118/

The Hindu – 11 Jan 2008

http://www.hindu.com/2008/01/11/stories/2008011161870100.htm/

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The Telegraph Calcutta 11 Jan 2008

http://www.telegraphindia.com/1080111/jsp/nation/story_8769282.jsp

Raju Rao
International Correspondent, India

Raju Rao, PMP, is an International Correspondent for

PMForum.org in Chennai, India. Mr. Rao is also principal
consultant for Xtraplus Solutions, a PM consulting and
training company based in Chennai. Mr. Rao has a B.Tech degree in
Chemical Engineering from the University of Madras, India; a Diploma in
Management from the University of Bombay; an Advanced PM certificate
from Stanford University; and a certificate from IIM Calcutta. Mr. Rao has
over 30 years’ experience in engineering, process and project management
and has been an active member of PMI for several years. He is currently a
member of PMI’s OPM3 2008 Update project, and was a team member for
development of several recent PMI standards. A founding member and vice
president for the PMI Chennai Chapter, Raju is also a member of the PMI
Pharmaceutical SIG, member and Chair of the Advisory Committee for the
South India chapter of AACE International, and founder of the Indian Project
Management Forum. Raju Rao lives in Chennai, India and can be contacted
at rao.raju@gmail.com.
Additional information about Mr. Rao can be found at
http://www.pmforum.org/pm%20forum%20team/index.htm#5

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