Visit to Tata Motors, Lucknow 17th May 2006

Mr A.K.Sarkar, DGM/BEX Mr P.N.Karmokar, AGM/BEX Mr Ishwar Din, AGM/TUM Md Akbar,AGM/Bl-4
Business Excellence, HEEP, Haridwar 1

Tata Motors: The Journey….
• • • • • • • • • • • • • • • • 1983: Land identified by Late Mr S.Moolgaonkar 1992: 1st Vehicle Rolled 1994: Crown Wheel & Pinion Production 1995: Sumo Rolled 2001: CNG Chassis Rolled 2002: RE Bus (Rare Engine) Rolled 2003: FBV (Fully Built Vehicle) Business 2003: TBEM Internal Assessment – 1st Position 2003: ISO 14001, TS 16949 2005: 19 Bus Models Launched ( Including ultra low floor bus for handicapped) 2005: OHSAS 2005: JRDQV Award 2005: CII-EXIM Bank Award 2005: Acquisition of Hispano, Spain 2005: Launch of 4 wheeler commercial vehicle “Ace” 2006: Reconditioning Business
Business Excellence, HEEP, Haridwar 2

Tata Motors: The Visual Impact…. Haridwar 3 . Total Land Area: 600 Acres .70% Green. HEEP. 30% Concrete Excellent Landscaping having Artificial Lakes – Used for Special Meetings. Lunch The entire factory area has an Institutional Look No movement of people seen outside the shops /offices Vehicles are not allowed after certain point Roof-less Car for visitors Business Excellence.

Haridwar 4 .Tata Motors: Products & Manpower Products: –Light Commercial Vehicles –Medium Commercial Vehicles –Heavy Commercial Vehicles –Bus Chassis –FBV Coordination –Spare Parts •Focus on Bus Chassis •40% Vehicles are sold in North India •73% Market share in Commercial vehicles & 50% in Bus Manpower: 846 Officers: 238 Supervisors: 42 Worker : 566 Average Age: Officers: 32 yrs Supervisors: 37 yrs Workers: 38 yrs Young Work-force Business Excellence. HEEP.

ASEAN & SAARC Countries. Pune. Lko)* 18000+ 130+ 750kg-40T 190000+ Domestic:6400+ Intl: 260+ Best Competitor (India) 12000+ 20+ 9T-35T 60000+ 415 n. HEEP. Middle East.Journey to Performance Excellence BM Parameters Employees Active Models Range Vehicles sold Customer Touch Points CVBU (Jamshedpur. Haridwar 5 . Africa Business Excellence.a * Market in Europe. Russia.

Haridwar 6 .Piagio. Toyota etc ) Customer Expectation: “German Quality in Chinese Price” The Worst Phase . Eicher. Bajaj. HEEP. Business Excellence.. Isuzu.Tata Motors came under loss of Rs 500Cr in yr 2000 – Employee unrest Turnaround Begins…. Ford.Journey to Performance Excellence National Scenario: Early road development stage Golden Quadrilateral Truck Market to go up Competitors: 1997: 2 Players 2005: 12 Players ( Ashok Leyland.

International Business. New Product Introduction. Sales Planning. Global Benchmarking Adoption of TBEM Model New initiatives on Cost Reduction.Environment / Market Scan Data Compilation Process ( Fact & Information Based Reverse Engineering Strategy) Business Excellence. BPR FIBRES. 6 Sigma.Journey to Performance Excellence Three Phase Strategic Direction: Turnaround through cost reduction Domestic Growth by strengthening sales & services International Growth (As now): World-class products. HEEP. Haridwar 7 . EPM.

HEEP.Business Excellence. Haridwar 8 .

procurement (ARIBA) Kanban System CII-Cluster Approach Corporate Social Responsibility Energy Conservation Environment Management Knowledge Management CoP –Communities of Practices Business Excellence. Haridwar 9 .Journey to Performance Excellence Excellence Initiatives • • • • Balanced Score Card Leadership Excellence Model Enterprise Process Model CSS & Employee Engagement Survey ( by M/s Gallop) • Self Directed Teams (SDT)SQDCM Concept • SAP • Kaizen with Japanese Consultants • • • • • • • • e. HEEP.

Strong Integration through cascading structure Cascading of BSC down the line can be interlinked BSC of each section / work-centre is displayed at the shop with latest status 300+ BSC in all the three units Software ( Strategist) is under development Tata Motors is a part of “BSC Hall of Fame” ( by Norton & Kaplan) Business Excellence. HEEP. Haridwar BSC at Shop Floor 10 .Journey to Performance Excellence Strategic Deployment ThroughBalanced Score Card Strong means of Strategic Deployment Balanced Score Card driven Performance Review at all level.

HEEP. Haridwar 11 .Business Excellence.

Haridwar World Class 12 .Journey to Performance Excellence Leadership Model My XL Plan Leadership Effectiveness Approach – Survey through Employee Engagement Survey Tata Code of Conduct – widely communicated (Poster. Booklet etc) Leadership System ( Next Slide) Leadership System Evaluation 13 Points 4 Level Maturity: Innocence Awakening Commitment Business Excellence. HEEP.

Haridwar 13 . HEEP.Business Excellence.

Journey to Performance Excellence Enterprise Process Model (EPM) 19 Top Level Processes: 90+ Sub Processes ( For All the Units) Value Creation Process Marketing Process (4 Processes) Market development. HEEP. Haridwar 14 . Partner Management. Sales Planning. Services design Production & delivery : Sales & Operations Planning. Vendor management. Vehicle Financing Demand Fulfillment Process Production & Delivery Process (6 Processes) Design : New Product Introduction. Manufacturing Service process :After sales service Business Excellence.

•It defines each main process and has process mapping. Performance Improvement & Change Management •EPM Manual exists. Information & Knowledge Management Management Process (5 Processes) Leadership & Corporate citizenship. Organisational governance. Facilities & Environment Management. Strategic planning. HEEP. Internal & external communication. •Each sub-process has written down methods and measures (Turtle Map) •Measures are linked to BSC Business Excellence. Finance & Budgeting.Journey to Performance Excellence Enterprise Process Model (EPM) Support Process (4 Processes) HRM. Haridwar 15 .

HEEP. Haridwar 16 .Business Excellence.

HEEP.Business Excellence. Haridwar 17 .

Business Excellence. HEEP. Haridwar 18 .

Haridwar 19 . Injury ) Q: Quality ( eg % Rejection. HEEP. Mfg Cycle time) C: Cost ( eg Reduction in cost of machinery spares) M: Moral ( eg Attendance. % Defect etc) D: Delivery ( eg Response time. of suggestions given) Business Excellence.Journey to Performance Excellence Self Directed Teams (SDT) – SQDCM Concept SDTs are at operators level SDTs monitor SQDCM parameters daily Charts of SQDCM parameters are displayed at respective work-centers Monthly SDT presentation There are 900+ SDTs in all units of Tata Motors S: Safety ( eg Accident. No.

HEEP. Business Excellence. 2 bins at store and 2 bins at vendor’s end Placement of order is controlled by kanban and order is placed through computer This system is made applicable to local vendors for 800+ items A material pull system means that downstream processes fetch from upstream processes only the goods that are needed. Haridwar 20 .Journey to Performance Excellence Kanban System of Inventory Control Kanban System of inventory control at shop floor (since last one year) Two Bin system ( Pull System): 2 bins at shop. and only in the required amounts. only when they are needed.

Journey to Performance Excellence E-Procurement: ARIBA System • ARIBA is a software organisation dealing with eprocurement • The sources are identified and the details are given to ARIBA • On-line bidding and negotiation with vendors • ARIBA runs the session for full source items • Tata Motors run the session for quick source items • 20-30% reduction in rate due to e-bidding and negotiation Business Excellence. Haridwar 21 . HEEP.

Apna bazar.. news. Deptt sites etc) CoP (Communities of Practices): Video conferencing among the units to share the good practices Manthan: Leading Speakers talk on latest topics Business Excellence. VPs concern corner. information hub. company overview.Journey to Performance Excellence Sharing & Communication KM Site – VIBES (Employee enquiries. HEEP. Haridwar 22 . circulars. learning lab.

School & Infrastructure • Green environment. HEEP. Effluent Treatment Plant Business Excellence. Co-operatives) . Haridwar 23 . Regular Tree Plantation.Journey to Performance Excellence Society & Environment • TCCI (Tata Community center) has evolved Human Development Index in collaboration with CII-UNDP India • Samaj Vikas Kendra for rural development • Jan Parivar Kalyan Sansthan – For health care • Community Empowerment Programme • Adult Education. Economic Development Programme (Vocational Trg. Landscaping. Artificial Lakes • Sewage Treatment Plant.

Haridwar 24 .Journey to Performance Excellence Other Initiatives • TPM ( Just started on about 50 machines) • Good 5s system. 5s index is monitored in every work center (Best Index is 5) • Dealership / Spare parts Survey by M/s METRICS • Vendor Meet / Best Vendor Award by VP ( For Lko based vendors) • Computer Kiosk in different parts of the factory • Benchmarking: Around 100 projects have been taken (Inter-unit BM and Visiting good companies on learning missions). Member of Indian Benchmarking Center Business Excellence. HEEP.

EFQM Model • 600-650 • Cr 1. HEEP. 2. 3.8.Journey to Performance Excellence BE Score • TBEM ( Based on Malcom Baldrige Model): • World Class: 876-1000 • TISCO: 707 • Tata Motors: 620 • CII-EXIM Bank (2005). 5: 60-70 • Cr 4 : 50-60 • Cr 7 : 50-60 • Cr 6. Haridwar 25 .9: 60-70 Business Excellence.

Haridwar 26 .Benchmarking with Tata Motors Proposed • Enterprise Process Module: To make Process Manual • Cascading Balanced Score Card up to Sectional Level and its display along with status • Employee Engagement Survey by M/s Gallop Business Excellence. HEEP.

BHEL Team at Tata Motors. HEEP. Lucknow Business Excellence. Haridwar 27 .

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