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Enterprises Process Manual

2005
Commercial Vehicle Business Unit
Version : 4
CONTENTS
S.No Item Name No of Pages S.No Item Name No of Pages

A Introduction 5 C List of Process Owners 2

B CVBU Enterprise Process Model 1 D Abbreviations ?


S.No Top Level Process No of Sub-processes S.No Top Level Process No of Sub-processes

1 Leadership and Corporate Citizenship 3 10 Sales and Operations Planning 2

2 Strategic Planning 2 11 Manufacturing 6

3 Internal and External Communication 3 12 Sales Planning 4

4 Performance Improvement and 3 13 After Sales Service 4


Change Management
14 Facilities and Environment Management 5
5 Market Development 5
15 Human Resource Management 8
6 Vendor Management 5
16 Information and Knowledge Management 8
7 Channel Partner Management 3
17 Finance and Budgeting 14
8 New Product Introduction 5
18 Vehicle Financing 3
9 Service Design 4
19 Organizational Governance 3
31.3.2005
TATA Motors, CVBU Introduction

INTRODUCTION
In year 2002-03, Enterprise Process Manual comprising of 18 Enterprise Level Processes was published.

In the year 2003-04 it was reviewed and 19th process (Organisational Governance) was added. In this year
Enterprise Processes Manual - Part II, comprising Turtle diagrams of 90 + next level sub-processes was also
published.

In the year 2004-05, all the 19 Enterprise Level Processes & their sub-processes were reviewed by
respective Processes Owners and Facilitators along with the users across all the locations.

The changes recommended by the processes owners have been incorporated. This manual is a compilation
of documentation of 19 Enterprise Level Processes and their sub-processes, duly vetted by respective
process owners & facilitators. The 19 Top Level (Enterprise level) Processes have been documented
in the form of Process Maps and Process Definition Sheets, whereas all the Sub Processes have been
documented in the form of Turtle Diagram.

This manual supersedes all earlier versions of Enterprise Process Manual and Sub-process Manual

31.3.2005 A.1
TATA Motors, CVBU Introduction

Purpose of Process Documentation :


w Clarify Responsibility for the Process
w Clarify scope of the Process
w Establish Measures
w Facilitate Process Improvement
w Knowledge Sharing
Process Map indicates flow of process and responsibilities.
Output

Sub-process Sub-process
/Activity Decision /Activity End of Cycle

XXXX XXXX

Sub-process Sub-process / Activity


Inputs /Activity Responsibility
XXXX

31.3.2005 A.2
TATA Motors, CVBU Introduction

Process Definition Sheet (PDS) gives following information :


6 Process Owner
6 Process Objective
6 Inputs
6 Key Steps
6 Outputs
6 Customer of the process
6 Divisions / Depts involved
6 Efficiency / In Process Measures
6 Effectiveness / End / Output Measures
6 Core Values it supports
6 ISO / TS 16949 clause ref
6 Revision Status.

Process Identification Number


Each Process has been given unique Process Identification Number (PIN), which is mentioned on the
Process Definition Sheet. (e.g Leadership - CVBU-EL-01)

Revision Status Indicator :


Revision status of the process will be mentioned on Process Definition Sheet as under :

Version Status code


New Release 00
1st modification 01

31.3.2005 A.3
TATA Motors, CVBU Introduction

Sub Process Mapping :


Turtle Diagram methodology has been used for documenting attributes of these sub processes

Mapping of sub Processes

Key Steps in the


Inputs Outputs
Sub-Process

Method / Measures/
Practices Indicators

Identification Numbering Scheme for Sub Processes :

Each Sub-process has been assigned a unique identification number. It is derived as follow :

Sub Process ID = Main Process ID suffixed by Sr. No within the process. For example, 2 Sub processes of Strategic
Planning process (CVBU-EL-02) are numbered as CVBU-EL-02-01 and CVBU-EL-02-02

31.3.2005 A.4
TATA Motors, CVBU Introduction

Management of Processes :
Copies of the manual are being issued to the Owners / Process Chiefs of the Processes included in the
Manual and Divisional / Functional Heads at each location, for their reference for management of processes

Holder of the controlled copy is responsible for safe custody of the copy and hand over to the successor in the event of the transfer /
separation and inform BES. BES maintains a copy number wise distribution list.

A booklet, “ Enterprise Process Management Guide”, has also been prepared and circulated to provide inputs to Process / Sub-
process Owners on systematic process management

Role of Divisional / Departmental Co-coordinators and Divisional Representatives (DR) of ISO / TS :


1. In order to demonstrate alignment of divisional / departmental processes and processes in EPM the respective
department are requested to link their processes with appropriate process in the EPM.
2. Ensure that the measures and indicators of concerned Top level Process / sub Process are incorporated
appropriate in SQDCM, BSC and ISO / TS documents.
3. Communicate changes, if any, to BES Pune

Updation of Manual :
All the Process Owners are requested to review their respective processes and their Process Definition Sheets, in the month of
April or May every year and communicate the page wise changes, if any, to BES, Pune by the month end.
On receipt of changes, BES will incorporate the same in the respective pages along with revision number. BES will then send
controlled copies of the revised / additional pages to all the Holders of the Manual. The controlled copyholders responsible for
replacing revised pages in their respective copy and destroying old pages.

31.3.2005 A.5
Commercial Vehicles Business Unit Enterprise Process Model

Expectations, Statutory Requirements

Performance Improvement
VALUE CREATION PROCESSES

& Change Management Demand Creation Processes


Strategic Planning

(Employees, Investors, Govt, Society)


l Market Development l Sales Planning
Vehicle Financing
MANAGEMENT PROCESSES

l Channel Partner Management l

Other Stake Holders


CUSTOMER
Demand Fulfilment Processes
l l Production & Delivery
Design Processes Service Processes

and
Processes
Leadership & Corporate Citizenship

Internal & External Communication

l New Product l Sales & Operations


Introduction Planning l After Sales
Organisational Governance

l Vendor Management Service


l Services
l Manufacturing
Design

SUPPORT PROCESSES

l Human Resource Management l Finance


& Budgeting
l Facilities
& Environment l Information
& Knowledge
l l l
Management Management

31.3.2005 BB
TATA Motors, CVBU List of Top Level Process Owners

SRL Process No Name of Process Process Owner Location

Mr Ravi Kant,
1 CVBU-EL-01 - Leadership and Corporate Citizenship Mumbai
Executive Director (CVBU)

2 CVBU-EL-02 - Strategic Planning Mr Ajit Venkataraman, Mumbai


Head (Strategy Planning) - CVBU

3 CVBU-EL-03 - Internal and External Communication Head (Corporate Communications) Mumbai

Mr K C Girotra
4 CVBU-EL-04 - Performance Improvement and Change Management Lucknow
Vice President (Lucknow Works &

5 CVBU-EL-05 - Market Development Mr Shyam Mani Mumbai


Vice President (Sales & Marketing)- CVBU
Mr P G Shankar
Head (CVBU International Business)

6 CVBU-EL-06 - Vendor Management Mr P M Telang Pune


President (Pune & Dharwad)

7 CVBU-EL-07 - Channel Partner Management Mr S M Sharma Mumbai


Head (Customer Support) - CVBU

8 CVBU-EL-08 - New Product Introduction Mr R A Bijlani Pune


Head (NPI Projects) CVBU
Mr S M Sharma
9 CVBU-EL-09 - Service Design Head (Customer Support) - CVBU Mumbai
Mr S Y Deshpande
AGM (Customer Support) CVBU Thane

10 CVBU-EL-10 - Sales and Operations Planning Mr R K Ghosh Mumbai


General Manager (Non-Vehicle Business)

31.3.2005 C.1
TATA Motors, CVBU List of Top Level Process Owners

SRL Process No Name of Process Process Owner Location

11 CVBU-EL-11 - Manufacturing Mr A P Arya Jamshedpur


President (JSR & Lucknow )
Mr Shyam Mani
12 CVBU-EL-12 - Sales Planning Mumbai
Vice President (Sales & Marketing)- CVBU
Mr P G Shankar
Mr S M Sharma
13 CVBU-EL-13 - After Sales Services Head (Customer Support) - CVBU Mumbai
Mr S Y Deshpande
AGM (Customer Support) CVBU Thane

14 CVBU-EL-14 - Facilities & Environment Management Mr Z Sait Pune


General Manager (Technical Services)

15 CVBU-EL-15 Mr P P Kadle
- Human Resource Management Executive Director (Finance & Corporate Affairs) Mumbai
along with HR Team
Mr Probir Mitra Pune
16 CVBU-EL-16 - Information and Knowledge Management General Manager (Information Technology)
Mr U K Mukherjee Mumbai
Mr Rajesh Kumar Mumbai

17 CVBU-EL-17 - Finance and Budgeting Mr R S Thakur Mumbai


General Manager (Corporate Finance)
Mr P C Bandiwadekar
Head (Treasury) Tata Motors Group

- Vehicle Financing Mr A I Rebello


18 CVBU-EL-18 Chief (Tata Motors Finance) Mumbai
Mr P P Kadle
CVBU-EL-19 -Organisational Governance Executive Director (Finance & Corporate Affairs)
19 Mumbai
Mr H K Sethana
Company Secretary

31.3.2005 C.2
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

5S Tool for Work Place Improvement BMS Bill Marketing Scheme


A Matls Auto Materials Board or BOD Board of Directors
A/C Account BOM Bill of Material
ABP Annual Business Plan BPR Business Process Re-engineering
ADD Ancillary Development Department BRC Business Review Committee
Aggr Aggregate BSC Balanced Scorecard
AMC Annual Maintenance Contract BU Business Unit e.g. CVBU
AO Area Office BVQI Bureau Veritas Quality India
APC Annual Plant Capacity C0-C1-C2-C3 Codes indicating status of customers
APL Auto Planning CAC Customer Assistance Centre
APPC Auto Planning Production and Control CAD Computer Aided Design
ARAI Automotive Research Association Of India Capex Capital Expenditure
AS Accounting Standards CEC Corporate Ethics counsellor
ASO Area Service Office CET Concept Evaluation Team
Assy Assembly CFM Centralised Fund Management
Avg. Average CFT Cross Functional Team
B/O Bought out C-HRD Corporate Human Resource Division
BC Burden Centre CIF Cost Insurance Freight
BES Business Excellence Services CII Confederation of Indian Industries
BHPC Bureau of Hire Purchase & Credits CIMS Customer Issue Management system
BKY Bhavishya Kalyan Yojana CIO Chief Information Officer

31.3.2005 D.1
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

CIRO Context, Inputs, Reactions, Outcomes CSI Customer Satisfaction Index


CKD Completely Knocked Down CSMM Customer Satisfaction Management and Measurement
CLT Cross Locational Team CTR Central Tool Room ( JSR )
CMS Cash Management System CDB Customer Data Base
CMs Country Managers CV Commercial Vehicles
CMVR Central Motor Vehicle Regulation CVBU Commercial Vehicle Business Unit
COB Commencement of Business Cx Centre Of Excellence
COBIT A widely accepted IT control framework DAC Drive Away Chassis
COIN Corporate Web site DAM Dealer Account Manager
Comp Component DD Dealer Development
Const Construction DEC Divisional Ethics Counselor
COPQ Cost of Poor Quality Demo Demonstration
Corp Corporate DENIS Design and Engineering System
COSO Committee of Sponsored Organization Dept. Department
CP Channel Partners Devp or Dev Development
Cpk Process Capability DFMEA Design Failure Mode Effect Analysis
CQ Central Quality Div or Divn Division
CRDO Central Receipt Documentation Office Divl Divisional
CRM Customer Relationship Management Dlr Dealer
CRS Central Receipt Store DML Design Modification List
CS Customer Support DMR Design Modification Request

31.3.2005 D.2
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

DMS Dealer Management System ERC Engineering Research Centre


DOE Design Of Experiment ERM Environment Risk Management
DOM Domestic ES Export Specification
DR Divisional Representative ESR Executive Sanction Request
DSI Dealer Satisfaction Index ESS Early Separation Scheme
DSL Direct Supply to Line EVA Economic Value Addition
DSM Dealer Sales Manager EVR Export Vehicle Request
E& I Evaluation and Improvement EXIM Export & Import Bank of Central Government
ED Executive Director FBV Fully Built Vehicle
ED ( F & CA ) Executive Director ( Finance & Corporate Affairs) FCOD Finance Committee of Directors
EEC European Economic Committee FI Finance Module of SAP
EG Executive Grade Fact And Information Based Reverse Engineering
FIBRES Of Strategies
EL Enterprise Leve
EMD Earnest Money Deposit FLG Factory Logistic Group
EMS Environment Management System FMEA Failure Mode Effect Analysis
Engg Engineering FR Frequency Rate
Env. Mgt Environment Management GAAP Generally Accepted Accounting Practices
EPA Effective Point Advice GDP Gross Domestic Product
EPM Enterprise Process Model GEO Group Executive Office
EPM Enterprise Processes Manual GIN Goods Inward Note
Eq. Equivalent GM General Manager

31.3.2005 D.3
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

Govt. Government JSR Jamshedpur


GR Goods Receipt KAIZEN Continuous Improvement Tool

HDFC Housing Development Finance Corporation - Bank Kg Kilogram

Head ( TS / STDI ) Head ( Technical Specification / Standards I) KPAs Key Performance Areas
FS Free Service KPI Key Performance Indicators
HQ Head Quarter KPM Key Performance Measure
HR Human Resource KRA Key Result Area
HRA House Rent Allowance L&L Listening & Learning
Hrs Hours LEC Locational Ethics counsellor
HVAL Heavy Vehicle Axles Limited LIC Life Insurance of Corporation
HVTL Heavy Vehicle Transmission Limited LKO Lucknow
IB International Business LL Lot By Lot
IBM Global Software Company LOB Line OF Business
Ind Industrial Loc Locational
IR Industrial Relations LOI Letter of Intent
IRC Industrial Relations Committee LT Long Term
IRR Internal Return Ratio MAP Moving Average Price
IS Institutional Sales or Indian Standards MASOP Material Accounting System for Outside Processing
ISO International Organization for Standardization Matls Materials
IT Information Technology MBE Management By Ethics
JDC Joint Development Council MBPA Modification Break Point Advice
JIT Just In Time MC Management Committee

31.3.2005 D.4
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

MCCC Maha Customer Care Campaign No. or No Number


MD Material Defect NOC No objection certificate
MEPA Modification Effective Point Advice NPA Non Performing Assets
Mfg or MFG Manufacturing NPI New Product Introduction
Mgmt or Mgt Management NVB Non Vehicular Business
Mgr Manager OC Operations Committee
MIDC Maharashtra Industrial Development Corporation ODMR Over Due to Maturity Ratio
MIS Management Information System OE Original Equipment
MM Materials Management Module of SAP OFI Opportunity for Improvement
MPA Measure Performance Areas OHS Organizational Health Survey
MPC Material Pricing Committee OJT On the Job Training
MPL&P Material Planning and Purchase Oprns Operations
MR Market Research Org Organization
MRP Material Requirement Planning P&L Profit & Loss
MT Mid Term P0 (P Zero ) First Batch of New Product
MTBF Mean Time Between Failure PC Personal Computer
Mths Months PCR Product Complaint Reports
MTR Mid Term Review PDI Pre Delivery Inspection
MTTR Mean Time To Repair PDS Process Definition Sheet
NC Non Conformity PE Production Engineering
NCRs Non Conformity Reports PF Provident Fund

31.3.2005 D.5
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

PFMEA Process Failure Mode Effect Analysis PSY Pariwar Suraksha Yojana
PHQ Parts Head Quarter Q&A Questions and Answers
PI Perpetual Inventory QA Quality Assurance
PIN Process Identification Number QC Quality Control
PL Pre launch Production Batch of New Product QCD Quality, Cost , Delivery
PLA Personal Ledger Account ( Type of Excise Account) QFD Quality Function Deployment
Plng or Plg Planning QI Quality Index
PM Plant Maintenance QMS Quality Management System
PM Fund Prime Minister's Fund QP Quality Plan
PMS Performance Management System R&D Research & Development
PMs Product Managers in IB RECON (Engine) Reconditioning (Cell), Sub unit of Tata Motors
PO Purchase Order Repro Reprocessing List generated in SAP
PP Pre Production Batch of New Product Resp Respective
PPAP Product Planning Approval Of Parts RG 23 Excise Register 23
PPC Production Planning and Control RM Regional Manager
PPM Parts Per Millions RMCSA Risk Management through Control Self Assessment
PPR Product Performance Report RO Regional Office
Proc Process ROI Return on Investments
Prodn or Prod Production RPM Regional Parts Manager
PSD Productivity Services Department Rs Rupees
PSG Product Strategy Group RSM Regional Sales Manager

31.3.2005 D.6
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

RSO Regional Sales Office Specs Specifications


RUPD A name of vehicle component SPP Strategic Planning Process
RWH Regional Warehouse SQA Supplier Quality Audit
R-Y-G Red-Yellow-Green Safety, Quality, Delivery, Cost , Morale
SQDCM
S Supervisory Grade Employees (Measurement System)
S&OP Sales and Operations Planning SQIG Supplier Quality Improvement Group
SAP An ERP Package Sr Senior
SC Steering Committee SR Severity Rate
SDT Self Directed Team SRM Supplier Relationship Management
SEBI Security and Exchange Board of India SSG Strategic Sourcing Group
Serv Service SSI Supplier Satisfaction Index
SGA Small Group Activity ST Short Term
SHQ Sales Headquarters STU State Transport Undertakings
SIAM Society of Indian Automobile Manufacturers Skill-Versatility-Cross-Versatility-Performance
SVCVP
SLA Service Level Agreement (benefit Scheme for Operatives)
SMH Standard Man Hours SWOT Strengths Weaknesses Opportunities and Threats
SO Sales Office TASS Tata Authorised Service Station
SOB Share Of Business TB Trial Balance
SP Strategic Planning TBEM Tata Business Excellence Model
SE Service Engineer TCCI Tata Council for Community Initiative
SPD Spares Parts Division TCG Tata Motors Certified Garage

31.3.2005 D.7
TATA Motors, CVBU Abbreviations

Abbreviation Expansion Abbreviation Expansion

TCOC or Coc Tata Code Of Conduct VD Vehicle Despatch


TDS Tax Deduction at Source Veh Vehicle
TEPS Telco Employee Pension Scheme VF Vehicle Financing
TKSP Telco Karmachari Sahakari Patpedhi VFJ Vehicle Factory Jabalpur
TM or M Tata Motors Managerial (Grade) V-M-V Vision - Mission - Values
TMF Tata Motors Finance VOC Voice of Customer
TML or TM Tata Motors Limited VOR Vehicles Off Road
TPL Technical Parts List VP Vice President
TQMS Tata Quality Management Services VQA Vendor Quality Audit
TS Technical Specifications VQR Vendor Quality Rating
TS 16949 Technical Specifications 16949 w.r.t. with respect to
TSS Tata Service Stations WBS Works Breakdown Structure
TTL Tata Technologies Limited WIP Work-in-Progress
TV Television WO Work Order
TWL Tata Work Level Y-O-Y Year-on-Year
US United States CARO Companies (Auditors Report ) Order, 2003.
VC Vehicle Combination DIN A name of German Standard
VCM Value Chain Management EN A name of British Standard

31.3.2005 D.8
TATA Motors, CVBU Leadership and Corporate Citizenship

Leadership and Corporate Citizenship

EPM Process No: CVBU - EL - 01

EPM Process Name: Leadership and Corporate Citizenship

Principal Process Owner: Mr Ravi Kant ED (CVBU)

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-01-01 Revisit Vision & Mission & Set Direction ED (CVBU)

CVBU-EL-01-02 Empowering employees ED (CVBU)

CVBU-EL-01-03 Manage Social Responsibilities Head Corporate HR / Locational HR Heads

31.3.2005 1.1
TATA Motors, CVBU Leadership and Corporate Citizenship

PROCESS DEFINITION SHEET


Process Identification No. ( PIN) : CVBU - EL - 01 Higher Level Linkage-
Process Title Leadership and Corporate Citizenship Process Owner Mr. Ravi Kant (ED CVBU)
Process Objective Incorporating Effective Leadership System
INPUT KEY STEPS OUTPUT
§ Vision, Mission & Core Values of TATA Ø Capture Stake holders expectations through stakeholders' engagement ü Revised CVBU Vision &
Group, CVBU V/M/V Ø Derive overall Business Direction Mission Statement
§ Global / Indian Automobile and Ø Formulate Long Term & Short Term Business Plans and initiatives ü Achievement of Financial,
Transportation Industry Scenario/ Domain incorporating Financial, Environmental and Social objectives and seek Social and Environmental
Knowledge commitment of team members. objectives
§ Stakeholders Expectations Ø Create supporting organisation Structure and allocate resources ü Employee Satisfaction
§ Findings of TBEM Assurance process
and TBEM Internal & External Assessments, Ø Development and Empowerment of Employees ü Satisfaction of other
corporate assurance feedback Ø Encourage learning and sharing. Recognise and reward team members' stakeholders
§ OHS, CSI and DSI findings performance
§ TCOC, TCCI, Agenda Ø Seek periodic feed back and review plans and targets

In-Process/ Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to stakeholders’ engagement plan Percentage Corporate Citizenship Index, Community Index Index
Adherence to SPP process, Adherence to Percentage CSI, DSI, Employee Satisfaction (OHS) Index
Action Plan
TBEM Assessment Score No
ROCE Percentage
Divisions Involved EDs and Plant & Functional Heads
End Customer All Stakeholders
Core Values Embedded Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 5.1
Process Revision / Modification History
Date of Modifn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Revised Process Owners / Facilitators

31.3.2005 1.2
TATA Motors, CVBU Leadership and Corporate Citizenship

Process Owner : Mr. Ravi Kant ED (CVBU)


Process objective : Incorporating Effective Leadership System

Derive Mission
Understand Set Direction Formulate LT/ST Organise
Strategy Build, Motivate, Review and
stakeholder and Plan align and
Identify Initiatives & Empower adjust to
needs financial, social allocate
Champions Teams for achieve plan
and higher and resources
Communicate and accelerated Adapt to new
level environmental Create Matrix
build change challenges
objectives objectives Org structure
commitment.

Encourage /
Organise Internal / Encourage Create a
participate / Develop, reward
External Assessment Innovation, culture of high
Implement CSR and recognize
/ Surveys analyse & Sharing and performance
Initiatives , Be employees
Improve Learning
a Role Model

Inputs- Inputs- Inputs - Inputs- Outputs-


Vision, -Global, Indian - OHS findings - Training needs - CVBU V/M
Mission & automobile and - TBEM corporate - Individual MPAs - Achievement of
Core Values transportation industry Assurance Process - Career needs Financial, Social,
for Tata scenario feedback - Competencies Environmental
Group -Stakeholders - TBEM internal & objectives
CVBU Vision/ exceptions External - Employee
Mission / -TCCI Agenda Inputs Assessment Satisfaction
Values -Internal & External findings Other stakeholder
TCOC challenges satisfaction
-BRC review

31.3.2005 1.3
TATA Motors, CVBU Revisit Vision & Mission & Set Direction

Inputs Key Steps in –


'Revisit Vision & Mission and Set direction' Outputs
w Present Core Values , Purpose, 1. Review vision and mission and propose
Vision and Mission of CVBU changes ,if required w Core Values and Purpose of CVBU
w Core Values , Purpose, Vision and 2. Approval of SC and MC w Vision and Mission statements of
Mission of Tata Motors and Tata 3. Set long term and short term goals CVBU
Group 4. Communication to all the units and w Short term and long term goals
w Stake Holder’ expectations employees of CVBU w Vision & Mission Statements of
w Global and National 5. Alignment of Vision & Mission Plants/ Functions/ Divisions
Industry and Economic environment statements of all the units with CVBU

How it operates (Methods/ Practices) Performance Measure Unit


1 A team of Steering Committee members and other invitees collates all inputs and discusses all
factors recommends changes in Vision , Mission and Purpose statement to reflect aspirations and Efficiency
intents of CVBU leadership. w Timeliness of review R-Y-G
2 The proposal is first presented to CVBU Steering Committee for concurrence. Then these are taken w % Internalization of Core Values %
to Operations and Management Committee for their approval. Finally the Values & Purpose, Vision
& Mission are presented to the Board members for final approval Effectiveness
3 Core Values & Purpose, Vision & Mission are then communicated to employees through display w Clarity of Mission Statement
boards and pocket cards of Values & Purpose, Vision & Mission. In the Town Hall communications w Achievement of goals %
by the ED and CVBU Steering Committee members to cross sections of employees. Training
modules are designed to communicate Core Values & Purpose, Vision & Mission
4 The team working on Strategy Planning Process gets inputs by scanning the global, Indian, Industry Sub process : Revisit Vision & Mission & Set
situation and collate the data. This team also take inputs from society/community, government direction
agencies, regulatory bodies and various committee reports and prepares business plan proposal. Process Ref : CVBU-EL-01- 01 (version 1.1)
Business Review Committee reviews and approves long term & short term goals. These form input f o r Process Owner : ED - CVBU
SPP EPM Linkage – CVBU-EL-01 (Leadership)
5 Plan/Functional/ Divisional SCs review their respective Vision and Mission Statement and align it Preparation Date : 31/03/04
with CVBU. Modification Date : 31/03/05

31.3.2005 1.4
TATA Motors, CVBU Empowering Employees

Inputs Key Steps in -


'Empowering Employees’ Outputs
w OHS Feed back 1. Review/ define expectations and empowerment
w Feed back through Skip level channels
meetings, One-on-one w Empowered and motivated
2. Define roles, responsibilities & authorities employees
discussions with employees by 3. Organise Training/ coaching and provide resources.
leaders w Empowerment schemes
Encourage out of box/ innovative thinking w New Ideas and patents
w Business risks identified through 4. Recognize achievements / advise on improvement
audits 5. Take feedback from employees

How it operates (Methods/ Practices) Performance Measure Unit


1 CVBU Leadership reviews the status of empowerment based on feed back receive from
employees and audit reports and defines/redefines channels for empowerment ( Delegated Efficiency
Powers, CLT, CFT, SDT, Quality circles etc)to cover employees at different levels. w No. of employees in CFT’s Nos.
2 Roles, responsibilities and authorities are defined and communicated through formal circulars or w No. of employees in SDT’s Nos.
through face to face communications
3 Manager/Supervisor/ Team Leader organises training and coaching to bridge the Effectiveness
competency gaps. Employees are also nominated to attend seminars, exhibitions and w OHS indicators
professional meets. Manager/Supervisor/ Team Leader reviews the resource requirement w Suggestions received / awarded Nos.
along with concerned person and provides adequate resources. New implemented ideas are w Areas covered under self certification Nos.
awarded on their merits through suggestion box scheme. Exceptional ideas are taken up for
patenting
4 Manager/ Supervisor/ Team Leader monitors the performance of his team members , Sub process : Empowering Employees
encourages them to share achievements with others and makes suggestions for Sub Process Ref : CVBU-EL-01- 02 (version 1.1)
improvement. The critical areas are audited through formal internal audits to ensure a d e q u a c y Process Owner : ED CVBU
of controls EPM Linkage – CVBU-EL-01 (Leadership System)
5 Employee feed back is collected through OHS, Skip level meetings and one to one interaction Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 1.5
TATA Motors, CVBU Managing Social Responsibility

Key Steps in –
'Managing Social responsibility’
1. Define and communicate policies to address Quality,
Environmental and Community Development aspects Outputs
Inputs 2. Select Key communities ,decide focus areas, w Policy Statements
w National & International laws and assign responsibly and provide budget w Community Devp initiatives
requirements for products 3. Encourage participation from employees at all the w Compliance with legal/ regulatory
w National and state legislations on levels and seek participation of community requirements
Pollution and factory operations members in implementation of initiatives w Improvement in Employee
w Expectations of key communities 4. Ensure compliance with legal and regulatory satisfaction
w TCCI Agenda requirements w Enhanced CVBU’s image in public
5. Collect and review feed back to ascertain Attainment of
objectives

How it operates (Methods/ Practices) Performance Measure Unit


1 Quality policy, and Environmental Policy statements are issued by Chairman of Tata Motors and
communicated to all the Divisional/ Departmental Heads and employees through circulars, Efficiency
booklets , posters etc Areas for Community Development are decided on the basis of TCCI w % improvement in OHS indicators %
agenda ( Health, water, education)
2 Location HR ( Community Devp) head selects community and areas for assistance based on local Effectiveness
needs and seeks budget approval. As a business need CVBU has selected ‘drivers’ as key w Corporate Community Initiative Index Nos.
community at CVBU level
3 Employees as well as members of respective communities are are encouraged to invest their
personal time and competencies for social cause. CVBU provides support by donating materials , Sub process : Managing Social Responsibility
equipments and other facilities.Incase of natural calamities of high magnitude like earthquake Sub Process Ref : CVBU-EL-01- 03 (version 1.1)
both employees and CVBU to PM Fund / TATA fund to provide relief to affected people Process Owner : Head Corporate HR/Locational
4 Respective Functional/ Departmental Head ensures that all the legal and regulatory requirements HR Heads
are addressed in the product and process design, reviews and monitors the same to ensure the EPM Linkage – CVBU-EL-01 ( Leadership
compliance and surpass them where ever possible System)
5 Feed back is collected through satisfaction surveys, meetings and other informal ways and Preparation Date : 31/03/04
reviewed in steering committee. Modification Date : 31/03/05

31.3.2005 1.6
TATA Motors, CVBU Strategic Planning

STRATEGIC PLANNING

EPM Process No: CVBU-EL-02

Principal Process Owner: Mr Ajit Venkatraman (Head Strategic Planning)

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-02-01 Strategy Development Mr Ajit Venkatraman (Head -SP)


CVBU-EL-02-02 Strategy Deployment Mr Ajit Venkatraman (Head -SP)

31.3.2005 2.1
TATA Motors, CVBU Strategic Planning

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU - EL - 02 Higher Level Linkage -
Process Title Strategic Planning Process Owner Mr Ajit Venkatraman (Head Strategic Planning)
Process Objective Develop and deploy short term and long term action plan to achieve business goals
INPUT KEY STEPS OUTPUT
§ Global Auto Industry Study Ø Environment Scanning ü Operating plans for Product,
§ Macro Economic Analysis Ø Revisit Vision / Mission / Values Marketing, Manufacturing, HR,
§ Situation Analysis Ø List out Key challenges for Short term & Long term Sourcing
§ CVBU Vision and Mission Ø Determine Strategic Path- 3 Phase Strategy ü CAPEX and Revenue Budgets
§ Market Trends and Opportunities Ø Conduct Business environment analysis & Capability analysis BSCs for CVBU , Plant/ functional
§ Customer requirements Heads and their reports
Ø Finalise Strategic Objectives
§ Needs of Suppliers, Channel Partners and Employees
§ Emerging Technologies Ø Finalise Operating Plans, CAPEX, Revenue Budgets & CVBU BSC
§ Competitive Data Ø Obtain Approval from OC, MC, BRC & Board
§ Enterprise Risks Ø Develop next level BSCs & Initiatives for Functions & Plants
§ Regulatory requirements Review (and update if required) BSCs and Initiatives monthly
§ Operational Capabilities of CVBU
In-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to process time lines Percentage Achievements of targets as specified in BSC Unique as per BSC
Adherence to pro-rata targets mentioned in BSCs Percentage
Divisions Involved - MC, OC, BOD, SC, ED, BRC, Strategy Planning, Domestic & International Sales & Mktg,
NPI, Finance, HR, ERC, Manufacturing, Materials, Internal Audit
End Customer- Stakeholders of CVBU
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS 16949 (2002) clause Ref. 5.4
Process Revision / Modification History
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
08/02/05 01 Inputs, Steps, Outputs & measures modified Strategy Planning

31.3.2005 2.2
TATA Motors, CVBU Strategic Planning

THINK DEVELOP and DEPLOY REVIEW


Once in 3 Years-Annual Review Annual Monthly

Conduct Finalise
Business Operating Develop
environment & next Review
Plans (and
List out key Determine capability Finalise CAPEX level
Environm Revisit analysis BSCs & update if
challenges Strategic strategic Revenue
ent Vision Initiatives required)
for Path-3 Objectives Budgets,
Scanning / Mission / Strategy for BSCs and
Short term & Phase CVBU BSC
Values Planning, IB / Dom. Functions Initiatives
Long term Strategy and
MKT, NPI, & Plants monthly
Strategic
Finance, HR, Initiatives
Strategy Board, ERC, MFG, All SCs All SCs
SC, OC SC, MC, SC
Planning BRC Materials, Int. Audit
OC, BRC SC, MC, OC,
Auto planning Board

Evaluation &
Improvement
Inputs business environment analysis -
- International/ domestic manufactures and
their products
- Volumes and Market share treds Inputs Capability analysis-
- Customer needs and preferences - Manpower
- Competition strategies in terms of new - Manufacturing facilities
products, marketing schemes suppliers and dealers
- Regulatory requirements - design and development
- Likely Technological advancements in
products
- Benchmarks and competitor information on
product performance
- Enterprise Risks
- Domestic & International economics

31.3.2005 2.3
TATA Motors, CVBU Strategic Planning

Inputs Key Steps in –


w Global Auto Industry Study Outputs
'Strategic Planning Process: Strategy Development'
w Macro Economic Analysis 1. Environment Scanning
w Situation Analysis w Operating plans for Product,
2. Visioning Marketing, Manufacturing, HR,
w CVBU Vision and Mission 3. Strategic Challenges
statements Sourcing
4. Strategic Direction setting w CAPEX and Revenue Budgets
w Feedback from previous SPP 5. Strategic Analysis
for CVBU (Annual Operating Plan)
6. Strategic Focus / Objectives w CVBU Balanced Scorecard
w Business Environment Studies 7. Target setting & Resource allocation
w Internal Capability Studies w Strategic Initiatives

How it operates (Methods/ Practices) Performance Measures Unit


1. Strategic Planning dept. scans the external environment in terms of Global Auto Industry
Efficiency
scenario, Macro Economic Analysis and conducts a Situation Analysis
w Adherence to Time line %
2. Leadership team revisits CVBU Vision and Mission statements. Feedback from previous SPP is
incorporated. Effectiveness
3. Next, the Key challenges for Short & Long term are identified against this broad direction w Accuracy of projections %
4. The SC then determines Strategic Path i.e the 3 Phase Strategy for CVBU and gets this
approved from the MC, OC and BRC
5. Inputs on volumes and market share trends, competitor strategies and product performance,
regulatory requirements, technological advances, benchmarks, internal manpower
competencies, design, development and manufacturing facilities, supplier and dealer’s SWOT Name of Sub process : Strategy Development
are collected and analysed by the respective Functions. Sub Process Ref : CVBU-EL-02-01 (Version 1.1)
6. Strategic objectives are then determined to address the key challenges Process Owner : Mr Ajit Venkatraman, Head SP
7. Based on the above analyses, Operating plans for Product, Marketing, Manufacturing, HR, Linkage with EPM – CVBU-EL-02 (STRATEGIC
Sourcing along with CAPEX and Revenue Budgets and CVBU BSC & Strategic Initiatives are t h e n PLANNING )
Preparation Date : 31/03/04
developed. Subsequently these are approved by MC, OC and the Board
Modification Date : 31/03/05

31.3.2005 2.4
TATA Motors, CVBU Strategy Deployment

Key Steps in – Outputs


Inputs 'Strategy Deployment' w Cascaded BSCs & Initiatives for
w CVBU Balanced Scorecard 1. BSC Deployment Functions & Plants
w CVBU Strategic Initiatives 2. Review w SC Reviews
3. Evaluation and Improvement w Review of the achievements and
drawbacks of the current SPP

Performance Measures Unit

How it operates (Methods/ Practices) Efficiency


w Adherence to Time line %
1. BSCs are developed for all functions and plants upto CX
level in Plants and Area office level in Sales & Marketing Effectiveness
by respective Steering Committees in line with the CVBU w Attainment of stated targets %
objectives. Assessments are carried out to ensure alignment of
all divisions / departments / functions/ plants with the overall
CVBU goals. Name of Sub Process : Strategy Deployment
2. Monthly reviews of BSCs and Initiatives are held by the Sub Process Ref : CVBU-EL-02-02
(Version 1.1)
respective Steering committees to track the progress against Process Owner : Mr Ajit Venkatraman,
plans. During the Mid term review, if required, changes and Head SP
updates are made to the BSC. Linkage with EPM – CVBU-EL-02
3. The strategic planning process is reviewed and improvements/ (STRATEGIC PLANNING )
changes are made in the next year’s SPP. Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 2.5
TATA Motors, CVBU Internal & External Communication

Internal and External Communication

EPM Process No: CVBU-EL-03

Principal Process Owner: Head - Corporate Communication

Sub_Proc No Sub Process Name Sub_Process Owner

Manage Internal Communication Head of Corporate Communication /


CVBU-EL-03-01
Locational HR Heads

Manage External Communication Head of Corporate Communication /


CVBU-EL-03-02
Locational HR Heads

Manage Communication Survey Head of Corporate Communication /


CVBU-EL-03-03
Locational HR Heads

31.3.2005 3.1
TATA Motors, CVBU Internal & External Communication

PROCESS DEFINITION SHEET


Process Identification No. ( PIN) : CVBU - EL - 03 Higher Level Linkage -
Process Title Internal and External Communication Process Owner Head Corporate Communication
Process Objective Satisfy Communication needs of Stakeholders and build Company Image
INPUT KEY STEPS OUTPUT

§ Vision, Mission, Core Values Ø Determine communication needs and set objectives for [ Improved Stakeholders'
and Directions of CVBU communication to various Stakeholders confidence
Ø Determine media, frequency and Stakeholder/Location wise [ Enhance Company Image.
§ Past Performance and Future Plans
responsibility
§ Product and Service Standards Ø Manage Internal communication
§ Quality, Environment and other Ø Manage External communication
Policies Ø Collect and analyse feedback
§ Tata Code of Conduct Ø Measure effectiveness

In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to communication schedule % No of Employees covered, No of Communication meetings No
Actual Vs Budget % Communication Effectiveness Index OHS Index
Actual Vs Budget Percentage
Divisions Involved - Corporate Communication, Locational HR, Plant / Functional Heads
End Customer- All Stakeholders
Core Values Embedded- Integrity, Passion for Engineering, Corporate Citizenship, Customer Focus
ISO / TS16949 (2002) Clause Ref. 5.5.3
Process Revision / Modification History-
Date of Modfn. Modification No. Details of Modification Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Review trough process team. Process Team

31.3.2005 3.2
TATA Motors, CVBU Internal & External Communication

Internal Communication (Employee)


E-mail based communication Process Owner : Head of Corporate Communications
- external press release and Process objective : Satisfy communication need of
employee related Stakeholder and Build Company Image
Publish in house journals (for
internal and external
audiences)
Determine the -Determine key messaging
Theme based campaigns
communication needs for the Company
Conduct communication
and set objective for
meetings at respective
communication to -Determine stakeholder wise
location
media for communication
Conduct town hall meetings
- Employees and frequency Collect and Measure
at respective plants
- Customers (through analyse Feedback Effectiveness of
Event based circulars and
Media) -Assign stakeholder / Communication
letters from senior leaders to
-Suppliers / partners location wise responsibilities
employees and their families
-Investors /
Provide employees direct
Shareholders -Seek budget approval HR / Corp Corporate
access to senior leaders
-Community Communication Communication
(Hotmails, share café, etc)
Head (Corporate
SC Comm)
Loc HR /communications

Press release
Press conferences, interviews
External Communication

with senior leaders by media,


investor, opinion leaders and Inputs-
govt. -OHS
Inputs- -Surveys
Participation in seminars /
- Company’s strategic - Direct employee
goals and objectives exhibition
Product launches and Contact
- Business plans of - Appreciation
Business Units corporate events
Programs
- Products / service Feature stories (corporate) on -Eikona press
standards Tata motors review
- Company / product Corporate advertising
Related information Campaigns
Corporate communications

31.3.2005 3.1
3.3
TATA Motors, CVBU Manage Internal Communication

Inputs
w Corporate Communication Key Steps in –
Outputs
Guidelines / Policies 'Internal Communication Process'
w House Magazines
w Data and analysis from the 1- Determine communication needs
w Wall Posters
Business Units, Finance and 2- Analyze and design communication
w E mails
employees 3- Approval from concerned agencies/EDs/VPs
w Updation on Intranets
w SIAM reports 4- Release the communication
w Town Hall and communication
w Employee needs and expectations 5- Follow-up with Employees
meetings
w OHS 6- Monitor and Review
w External sources – media/events

How it operates (Methods/ Practices) Performance Measure Unit


1. Determine communication needs – Inputs as shown are collected from timely Efficiency
interactions with BUs/ Employees / Finance and aggregated for further use w Timeliness of communication
2. Analyze and design communication – These requirements are analyzed and the w No. of Wall Posters released No
communications are designed according to the media and its purpose. House w No. of House Journals released No
magazines, Wall posters, e mails, Town Hall communications, Intranets such as HR Effectiveness
info net, Vibes etc are designed based on this w OHS feedback on communication Score
3. Approval – After designing the communication mode, it is approved from the w Communication Satisfaction Survey Index
concerned agencies and finalized with Presidents / Vps and EDs
4. Release the communication – House Magazines, Wall posters are distributed, e Name of Sub process : Manage Internal
mails are sent to the focused groups by the Corporate and Locational Communication Communications
Departments. Intranets are updated by the Core groups. Sub Process Ref : CVBU-EL-03- 01 (version 1.1)
5. Follow-up - After the release, follow up is done with employees for their feedback on Process Owner : Head of Corporate
yearly basis through OHS and Communication survey Communications
6. Monitor and review: The internal communication is revisited on yearly basis and / LOC HR Heads
improvements are done on media, variety, contents and clarity Linkage with EPM – CVBU-EL-03 ( Internal and
External Communication )
Preparation Date : 31\03\04
Modification Date : 31\03\05

31.3.2005 3.1
3.4
TATA Motors, CVBU Manage Internal Communication

Inputs Key Steps in –


w Corporate Communication 'Manage External Communication Process'
1. Determine communication needs Outputs
Guidelines / Policies
w Data and analysis from the 2. Analyze and design communication
3. Approval from concerned agencies/EDs/VPs w Press and media release
Business Units and Finance
4. Release the communication w Articles
w SIAM reports
5. Follow up with the users w Interviews
w Media needs and expectations
w Employee feedback/OHS 6. Monitor and Review the process of releasing

How it operates (Methods/ Practices) Performance Measure Unit


1. Determine communication needs – Requirements are collected from newspapers, Efficiency
business magazines, TV channels from timely interactions with them and w No. of Press Releases No.
aggregated for further use w No. of Press conferences No.
2. Analyze and design communication – User requirement is analyzed and the w No of appearances of features in Magazines No.
communication is designed according to the media and its purpose. Monthly Press
Release, Interviews to newspapers, magazines, TV channels, etc are designed Effectiveness
based on this w Communication Satisfaction Index Index
3. Approval – After designing the communication, it is approved from the concerned w Eikona Press Review
agencies and finalized with Presidents / VPs and EDs
4. Release the communication – Press release is forwarded by the Corporate and Sub process : Manage External Communications
Locational Communication Departments Sub Process Ref : CVBU-EL-03- 02 (version 1.1)
5. Follow-up – After the press release, follow up is done for publishing and press Process Owner : Head of Corporate Communications
cuttings for records /LOC HR Heads
6. Monitor and review: The external communication process is revisited on quarterly basis EPM Linkage – CVBU-EL-03 ( Internal and External
and modifications are done on distribution pattern, contents and clarity Communication )
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 3.5
TATA Motors, CVBU Manage Internal Communication

Key Steps in –
Inputs
'Manage Communication Survey'
w Corporate Communication
1. Determine communication survey needs Outputs
Guidelines / Policies
2. Analyze and design survey questionnaire w Survey Questionnaire
w Data from the Business Units and
3. Prototype testing with few employees w Survey findings
employees
4. After modifications, Conduct the survey w Action Plan
w Employee needs and expectations
5. Analyze and put up findings to SC
w OHS and
6. Prepare action plan to tackle concerns
w Communication Index findings
7. Monitor and review the process of survey

Performance Measure Unit


How it operates (Methods/ Practices)
1. Determine communication needs – Inputs as shown are collected from timely Efficiency
interactions with BUs and Employees and aggregated for further use w % Completion of Action plans %
2. Analyze and design questionnaire – The questionnaire is designed with the help of w Survey findings on attributes Nos.
external experts and internal communications team
Effectiveness
3. Prototype testing – This questionnaire is then tested with few employees from all w Communication Index Index
levels and improved, if any suggestions are there
4. The questionnaire is distributed as per random sample to all levels of employees – in
Hindi, Marathi and English
5. The filled up questionnaires are analyzed and findings are put up to Steering Name of Sub process : Manage Communication Survey
Committees Sub Process Ref : CVBU-EL-03-03 (version 1.1)
6. Action Plans are made to tackle the concerns and overcome gaps in the existing system Process Owner : Head of Corporate
Communications/LOC HR Heads
7. The survey process is reviewed once in a year in Communication Steering Committee
EPM Linkage – CVBU-EL-03 ( Internal and
External Communication )
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 3.6
TATA Motors, CVBU Performance Improvement and Change Management

Performance Improvement and Change Management

EPM Process No: CVBU- EL- 04

Principal Process Owner: Mr K C Girotra - VP (Lucknow Works & FBV)

Sub_Proc No Sub Process Name Sub_Process Owner

Head CVBU /
CVBU-EL-04-01 Process Design & Improvement
Head Respective Plant

CVBU-EL-04-02 Conduct Internal Assessment Respective Steering Committee

CVBU-EL-04-03 Performance Improvement Through Initiatives Respective Steering Committee

31.3.2005 4.1
TATA Motors, CVBU Performance Improvement and Change Management

PROCESS DEFINITION SHEET


Process Identification No. ( PIN) : CVBU - EL - 04 Higher Level Linkage -
Process Title PERFORMANCE IMPROVEMENT AND CHANGE MANAGEMENT Process Owner Mr. Ravi Kant (ED CVBU)
Process Objective Continuous Improvement of Organisational Performance
INPUT KEY STEPS OUTPUT
w Strategic Objectives Ø Ascertain whether need is for A) Establishing systematic process. OR [ Improvement of
w Internal and External Audit and assessment B) Quantum / Break through Improvement in performance Organisational performance
findings Ø Identify and drive initiatives for achieving quantum/breakthrough [ Process Improvement
w Customer / stakeholder feedback / requirement performance improvements
w Benchmarks/ Competition data on factors Ø For continuous improvements manage process systematically :
affecting the business and corresponding o Evaluate requirements and Define and establish process
CVBU status o Set targets , monitor performance
w Recommendations from Consultants o Seek stake holder feed back Review process performance
w National/ International Standards through self assessment/audit
applicable to CVBU o Identify scope for improvement and prioritize
w Statutory requirements o Simplify & improve process by improving Sub-processes
w TBEM assessment finding
w Best Practices

In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to Audit/Assessment schedule % TBEM Score, No of certified Auditors/ Assessors No.
Initiatives planned Vs achieved No Performance Improvement achieved vis-à-vis Target %
Adherence to review schedule % Reduction in NCs No.
Divisions Involved - SC, All the Plant / Functional/Divisional Heads, Certified Assessors
End Customer- Process Owners, Stake holders
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 8.5.1, 7.1.4
Process Revision / Modification History-
Date of Modfn. Modification No. Details of Modification Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification process review Process Team

31.3.2005 4.2
TATA Motors, CVBU Performance Improvement and Change Management

Process Owner : Mr K C Girotra (Luknow Works & FBV)


Process objective : Continuous improvement of Organizational Performance and Processes

Assessment & Proposal on improvement Development and deployment

Ascertain whether Study Define process/ Review


need is for A) requirements, procedures &
Establishing evaluate measures,
systematic process. OR acquire resources, Seek customer/
alternatives, other stake
select best conduct pilot Run,
B) Quantum / Break train users and Set targets, ,monitor holders, feed
possible way and performance and back. Review
through Seek acceptance implement
Improvement in A process/ changes controls process
of all the performance. Get
performance A or B concerned process assessed/
SC / resp Process Owner/ Process Owner, audited
Resp Agency/ Team Divl/Dept Head
Process Owner Resp Agency

B Process Owner
Div/Dept Head

Define Initiative & Owner

Minor change/
simplification
SC / resp Process Owner
Inputs-
- Strategic Objectives Statutory Changes
- Comparison of Performance with
Drive Initiative to get
Competition/Benchmark on key Factors
desired result
- TBEM Assessment Feed back Study findings
- Audit feedback and prioritize OFI
Initiative Owner
- Feedback from Statutory audits
- Best practices from other Minor/
organizations. urgent
- Recommendations from changes Process Owner
Consultants Divisional Head
Major Changes

31.3.2005 4.3
TATA Motors, CVBU Process Design & Improvement

Key Steps in –
Inputs 'Process Design and Process Improvement'
w Request/ feed back from 1. Ascertain need and assign responsibility
agencies involved ( Incl. Internal 2. “As is study”and evaluate alternatives
Customers) 3. Define new / improvised process Outputs
w Assessment / Audit reports 4. Seek approval for resources w New/ Improved processes and
w New or changing Business needs / 5. Devp. Of computerized system where procedures
Statutory requirements required, User training , pilot run and finalize
w Strategic intent for adopting global process and procedures .
best practices 6. Plan Implementation
7. Monitor process for efficiency and effectiveness

How it operates (Methods/ Practices) Performance Measure Unit


1. Concerned process owner analyses inputs and ascertains need for new process /
improvement in existing process. He assigns responsibility to a competent person if Efficiency
process/ change is limited to his area. Otherwise he takes help of concerned specialty 6 Adherence to schedule %
function ( BES/ PSD/Central Planning/ Central QA / IT Team etc). Such person/dept acts 6 % fulfillment of requirements %
as a change agent).
2. Change Agent studies As is process, scans technologies and best practices in the industry, Effectiveness
evaluates alternatives and evolves new/ improvised process/ procedure in consultation 6 No of Processes gone through E & I No.
with all the agencies involved/ affected.
3. Process owner gets resource approval for Capital equipment /revenue expenses /
manpower through normal procedure. Sub process : Process Design and Improvement
4. TTL provides IT Support. Sub Process Ref : CVBU-EL-04- 01 (version 1.1)
5. Integration tests and Pilot runs are conducted to confirm meeting of all the requirements. Process Owner : Head CVBU / Head Respective Plant
The new / improvise process/ procedure is documented to define activity wise roles & EPM Linkage – CVBU-EL-04 ( Performance
responsibilities and circulated to agencies involved. Improvement and Change Management)
6. Change Agent carefully plans Implementation/ change over. After successful Preparation Date : 31/03/04
implementation the process is handed over to users and process owner for operation and Modification Date : 31/03/05
monitoring .
7. Process owner and users monitor process for Efficiency and effectiveness

31.3.2005 4.4
TATA Motors, CVBU Conduct Internal Assessment / Audit

Inputs Key Steps in –


w External assessment/ audit criteria 'Conduct Internal assessment/ Audit'
and methods/ practices 1. Maintain a bank of trained and certified Internal
Assessors/ Auditors Outputs
w Feed back from participating
2. Define frequency Prepare Schedule w Assessment / Audit score
divisions and assessors/ Auditors
3. Prepare/ review criteria/ guidelines/ checklist Assessment / Audit report giving
regarding previous audit/
4. Organize Assessment/ Audit Strengths & OFIs
assessment
w Last external assessment/ audit 5. Send report to assesses/ audited and plant/CVBU head
reports 6. Recognition to assessors/ auditors and Divn/Dept and
collect feed back from them

How it operates (Methods/ Practices) Performance Measure Unit


1. Selected/ nominated high performers are trained by competent external agencies Efficiency
(eg.TQMS, CII, BVQI)and certified by them wherever necessary. In other cases they a r e 6 Adherence to schedule %
trained by internal experts / Trainers (eg.5S- SQDCM)
2. Audit/ assessment frequencies are decided by owner of respective audit/ assessment Effectiveness
process ( eg. Head of BES- TBEM/ BSC/5S & SQDCM, Head of CQ- ISO TS) 6 No. of Trained/ Certified Auditors/ Assessors Nos.
3. Criteria/ Guidelines/ Check lists are prepared/ reviewed by respective audit/ assessment 6 No. Of Divisions covered Nos.
process owner with involvement of auditors once in a year 6 Improvement in Division’s scores Nos.
4. Assessment/ Audit process and efficiency / effectiveness of process is monitored by a
champion nominated by the respective audit/ assessment process owner.
5. Communicate audit findings for review and improvement by resp. Divisions/depts Sub process : Conduct Internal assessment/
6. Assessors/ Auditors and participating divisions are recognized in a special function. Audit
This opportunity is also used for collecting informal feed back. Sub Process Ref : CVBU-EL-04- 02 (version 1.1)
Process Owner : Resp. Steering Committee
EPM Linkage – CVBU-EL-04 (Performance Improvement
and Change Management)
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 4.5
TATA Motors, CVBU Performance Improvement Thru Initiatives

Key Steps in –
'Performance Improvement through Initiative'
1. Define Initiative, measures, and owner
2. Assemble team define objectives and set targets. Outputs
Inputs w Achievement of quantum
3. Primary Data Collection
w Balanced Score Card improvement in the performance
4. Idea generation, evaluation and action plan
preparation.
5. Implementation and progress reviews
6. Share achievements and learning

How it operates (Methods/ Practices) Performance Measure Unit


1. Initiatives are taken to help achieving stretched targets in KPAs. SC assigns ownership to
Efficiency
a Sr. Executive. Standard templates are used for defining initiative and measures.
6 Adherence to schedule %
Initiative owner is empowered to select team members as well as to take necessary
actions.
Effectiveness
2. Initiative owner assembles team. Help of external consultants is provided where
6 Target vs Actual performance %
necessary. Training is organized wherever need arises.
3. Team collects data, generate ideas through brain storming/ bench marking and
prepares action plan
4. Initiative owner/ SC and concerned department approves action plan for implementation Sub process : Performance Improvement through
and allocates resources. Initiative
5. Same team or different team oversees the implementation. Sub Process Ref : CVBU-EL-04-03 (version 1.1)
6. The team shares achievements and learning by way of presentation in communication Process Owner : Resp. Steering Committee
meetings. The team decides to launch next phase/ wave if necessary. EPM Linkage – CVBU-EL-04 ( Performance Improvement
and Change Management)
Preparation Date : 31/03/04
Modification Date : 31/03/04

31.3.2005 4.6
TATA Motors, CVBU Market Development

Market Development

EPM Process No: CVBU-EL-05

Principal Process Owner: Mr Shyam Mani - VP (Sales & Marketing ); Mr P G Shankar - Head (CVBU International Business)

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-05-01 Prepare Marketing Business Plan Product Managers / Sales / Regional Managers

CVBU-EL-05-02 Forecast Demand at Product - Segment Level Head of Market Research / Country Managers

CVBU-EL-05-03 Determine Customer Groups & Market Segments Product Managers / Sales / Regional Managers

CVBU-EL-05-04 Determination of Customer & CP Satisfaction Product Managers / Customer Support / MR

CVBU-EL-05-05 Promote Products of Tata CV entire Range Product Managers / Sales / Regional Managers

31.3.2005 5.1
TATA Motors, CVBU Market Development

PROCESS DEFINITION SHEET

Process Identification No. ( PIN) : CVBU-EL-05 Higher Level Linkage-


Mr Shyam Mani VP - (Sales & Mktg.)
Process Title MARKET DEVELOPMENT Process Owner Mr P G Shankar Head - (CVBU IB)
Process Objective Understand CV Markets, Explore Opportunities and Strengthen Presence in chosen Segments and Geographies
INPUT KEY STEPS OUTPUT
§ CVBU Strategic Objectives Ø Derivation of Operational Vision (Dom / IB) ü Annual Marketing Plan
§ Industry/Country Demand Forecasts Ø Gather Data through various QFD exercises and Analysis ü New Product Requirements
§ Market Share and Volume Targets Ø Review Market Segmentation (Dom/IB) ü New Markets
(Dom / IB) Ø Assess New Product Requirements & market Opportunities ü Sales Promotional Schemes
§ QFD & other MR Reports Ø Development of Annual Business Plan, Short Term and Medium Term Plan ü Growth in Sales
§ Customer Feedback (Dom / IB)
§ Plant Capacities & Capabilities Ø Development of Product Pricing Plan and Sales Promotion Plan
§ Government Regulations Ø Assessment of Resource Requirement and Allocation of Resources
§ Technological Innovations Ø Preparation of Segment-wise, Region Country wise, Monthly Volumes and
§ RSO/ IB & Channel Partner Stocks and Market Share Targets and communication of the same to ROs/ Country
Requirements Offices and Channel Partners
§ Sales Process Feedback Ø Performance Review and Gap Analysis for corrective Actions

In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Monthly and Quarterly Reviews of Market % Key Accounts Touched Nos.
Share & Volumes achieved vis-à-vis Nos. New Segment / Markets developed Nos.
Targets (Growth in Sales) Market Share & Volumes achieved % / Nos.
Divisions Involved - Product Mgt. , SHQ (Dom / IB), ROs, AOs, Country Offices, Dealer Development Cell and Channel Partners /SC
End Customer - Channel Partners and Customers of TATA Commercial Vehicles
Core Values Embedded Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 5.2
Process Revision / Modification History-
Date of Modfn Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification through process review Process Team

31.3.2005 5.2
TATA Motors, CVBU Market Development

Requirements to -
Process Owner : Mr. Shyam Mani (Domestic) / Mr P G Shankar (IB)
- Budget Requirements to - NPI Process
Process objective : Understand CV Markets (Dom / IB), Explore Opportunities and
Finance & Budgeting - Human Resource Mgt
Strengthen Presence in Chosen Countries / Segments and Geographies
- Market Requirement to - Channel Partner Mgt.
S &OP and Sales Planning - Services Design
- After Sales Services
No Preparation of Implementation
Marketing and Review of-
Derive Operational Data Gathering Preparation of - Plan for NPI for tapping niche Plan - Sales, Service
Vision through various VOC / - Annual Business market / new Dom., IB segments Spares
- Review Dom. / QFD exercises Plan for (PMs / NPI Group / CMs) -Region-wise, Country Performance of
IB Strategy and Analysis CVDom / IB wise (n+2), Segment Channel Partners
- Scan Dom / - Product Plan Sales / Service / Spares Network wise Monthly Volumes (Dealers /
- Evolve application Enhancement Plan Distributors- IB /
International matrix for TATA -ST Plan (1Yr.) Targets and Market
CV markets - MT Plan (Sales Head / PMs) Share Targets TASS, TSS, etc)
product suitability in
- Country - wise the select regions / (2-3 years), (Seek feedback
Manpower Requirement Plan
Ball Park Market countries after - Product Pricing (Sales Head / CHRD) Are the Yes - Communication to from Sales
Analysis based on scanning product / Plan resources ROs and Channel Planning
Market Scope profitability - Resource Channel Partner Management adequate? Partners Process)
Requirement Plan (Dealers / Distributors - -Analyze the gaps
- Short List Chosen Plan (Sales Head / PMs / DD/ CMs) and consider
IB...)
Segments / countries corrective actions
in Dom / IB areas Sales Promotion Initiatives
(SHQ / Plan / Schemes (SHQ/ PMs / CMs ) as inputs to next
Product Managers (Sales/PMs/RMs/CMs) marketing review
(PMs) / (MTR/ Final)
Country Managers ( SHQ / PMs / Evolve VOC/ QFD exercises /
(CMs)) (SHQ / PMs / CMs) Cms) Customer Clinics / Feedback (Sales / PMs /
Programs CMs)
(SHQ/MR/RMs/CMs/AMs)
Inputs -
Inputs- -Industry / Country-wise Demabd Forecasts, Inputs - Inputs -
-CVBU Strategic Objectives -Dealer / Distributor Sign-off & adequacy, -Plant Production Reports -Sales Process Customer
-Market Share targets -Customer Feedback -RSO / ShipYard Stocks and
-QFD feedback & other MR / Country Survey Reports Pipeline,
Dom / IB Requirement -Customer Category
-Govt. Regulations in various geographies -Channel Partner ( Dealer /
-Volume Targets -Technological Innovations Conversion rates,
(Dom / IB) - Govt. & Industrial Requirements, Distributor-IB Stocks & -Market Coverage Plan
-Profitability -Plant Capacities & Capabilities Requirement

31.3.2005 5.3
TATA Motors, CVBU Market Development

Outputs
Inputs
w Product gaps to NPI
w Product Segment level Mkt. Research
w Network expansion requirements
Data / Country Scan reports
Key Steps in sub-process- w Non-product requirements to
w CVBU Business Strategy (Dom / IB)
'Prepare Marketing Business Plan'' CS/NVB
w Competition Data
1. Seek and Analyze data w Marketing Budgets to Regional
w Customer Complaints
2. Prepare Product - segment Level Product Managers
w VOC / QFD Reports
Business Plan (Dom/IB) w Human Resource requirement
w Product Demo / Road Show Reports
3. Execution of plan to C-HRD
w Government / Country Regulations
w Sales targets to Sales
w New Product Launches Planned
w Plan for NPI, Product variants
w Past Trend of Sales Volumes
execution
w Business Drivers

How it operates (Methods/ Practices) Performance Measure Unit


1. Seek and Analyze Data (Product Managers / Country Managers)
6 Product Managers capture customer requirements (individual & Key customer groups) and other relevant Efficiency
data through various VOC/QFD exercises, CIMS, feedback from RO/ AO/ CS/ Country offices, Government w No of NPI or Variants Planned Vs Achieved Nos.
regulations, etc. w No of new segments / markets identified Nos.
6 Use various Listening approaches to seek Customer requirements
6 Product Managers along with Sales & Market Research collates and analyze the data on customer Effectiveness
requirements, applications, market trends, technology and new products.
6 The Regional / Country Managers and Area Officers communicates all data on the sales, competitive sales, w Achievement of Targets Vs Actual Nos. / %
market share gain/ loss, Channel Partner Off take / Shipment / retail sale / pending EVRs / Stock levels & (Volume & Market Share)
Customer requirements to the Product Managers.
2. Prepare Product - Segment Level Business Plan ( Dom / IB) (Product Managers)
6 The Product Manager along with Head (Sales & Marketing-Dom/IB),Market Research, Country
Managers analyzes the data received from all these sources to prepare the Long Terms (5-10 years),
Medium Term (2-5 years) and Short Term (Annual) Business plan. Sub process : Prepare Marketing Business Plan
6 Considering overall Business plan of CVBU, Product Managers (Dom /IB) compare the analyses of current Sub Process Ref : CVBU-EL-05-01 (version 1.1)
area / Country scans , marketing business plan and conduct gap analysis with respect to requirement Process Owner : Product Managers / Sales
of new products / variants, network viability / expansion needs, promotional needs, HR resource requirement /Regional Managers
etc Frequency : Yearly / Mid-Term
6 Business Plan (annual- Dom /IB) ) is further explored for New products/ variants required, Network expansion
required, HR resource requirement, Sales Volume targets for year, etc. and communicated to respective EPM Linkage : CVBU-EL-05 ( Market Development )
division Preparation Date : 31/03/04
3. Execution of Plan (Area / Country Sales & Product Managers) Modification Data : 31/3/05
6 Product Managers & Sales Head prepare quarterly/ monthly region-wise, dealer-wise product segment level
off- take / shipment plan considering inputs from Annual S & OP meeting
6 Product Managers prepare Budgets for Sales Promotion region-wise on quarterly basis.
6 Product Managers decide requirement for the NPI / Product features.
(Details in Brackets indicate involvement of various agencies)
31.3.2005 5.4
TATA Motors, CVBU Forecast Demand at Product - Segment Level

Inputs
w Economic growth rate projections
and other Macro – economic Outputs
parameters Key Steps in sub- process - w Industry / Country Volumes forecast
w Country Scan reports 'Forecast demand at Product-Segment Level' w for- Long Term (5 years)
w Historical data (Time Service 1. Seek data and study various inputs - Annual (1 year)
Software) for Short term ( ST) 2. Prepare Forecasting framework - Short Term (Quarterly, Monthly)
forecasting 3. Analyze accuracy of forecasts
w Market share targets (Dom /IB)
w Sector wise growth estimates (Region
/ Country)
w Market Survey Reports

How it operates (Methods/ Practices) Performance Measure Unit


1. Seek data & study various inputs (Market Research) -
6 Market Research / Country Managers collect data for demand forecasting on an ongoing basis. The Efficiency
data includes economic growth rates (Dom /IB) and other macro- economic parameters, projections of 6 Adherence to schedule R-Y-G
freight / passenger movement, GDP, EXIM trade, Bank Rates, Railway & Diesel prices, replacement /
incremented truck demand, Regulatory norms prevailing in various regions / countries, etc. Effectiveness
2. Prepare Forecasting framework (Market Research / Country Managers) - 6 Accuracy of forecast %
6 MR / Country Managers evolve Industry/ Country volume forecast for Long Term (5 Years), Annual /
Quarter / Monthly basis (Variance – Forecast Vs Actual )
a) Long term forecasting (3 - 5 years)
6 Analytically freight availability due to economic growth is calculated
6 Freight divided between major modes of transport e.g. Rail, Road, Waterways, Airways
6 Road transportation share converted into number of trucks required to carry Sub process : Forecast demand at Product -
6 Depending upon our market share the truck volume are ascertained
6 Replacement requirement is added to arrive at Long term forecasting Segment Level
b) Annual forecasting Sub Process Ref : CVBU-EL-05–02 (version 1.1)
6 Using above inputs demand forecasting is worked out analytically Process Owner : Head of Market Research /
6 Replacement volume is added to arrive at annual forecasting Country Managers
c) Short term forecasting ( next 3 - 6 month) Frequency : Yearly / Mid-Term
6 Process uses the special statistical analysis software package FORECAST PRO EPM Linkage – CVBU-EL-05 (Market Development )
6 Generate for next 3-6 month projection For IB, Country Managers seek the help of their own
resources / experts in the respective countries for the above. Preparation Date : 31/03/04
3. Analyze accuracy of forecasts (Market Research / Country - Product Managers) - Modification Date : 31/3/05
6 MR / Country Managers analyse monthly Actuals Vs Forecast for past data for further use.
(Details in Brackets indicate involvement of various agencies)

31.3.2005 5.5
TATA Motors, CVBU Determine Customer Groups & Mkt. Segments

Inputs
Inputs
!wPerformance
SIAM / Countrywide
Targets guidelines
for Channel
w Partners
Emerging( Dom
Customer
/ IB )& Market Key Steps in sub- process - Outputs
trends (Dom/
!Business IB) as per
Guidelines 'Determine Customer Groups & w Product based segments
w CP
CVBU strategy (Dom/IB)
Agreement Market Segments' w Geography based Region-
!wGovernance
Listening &Guidelines
Learning feedback on 1. Study various inputs & evolve Country-wise structures
Product, Procedure
!Controlled Usage Manual segmentation Plan w End-use based sectors for
and Geography 2. Determine Market Segments sectoral solutions
w NVB services 3. Determine Customer Groups
w Cluster Analysis
w Competition Segmentation

Performance Measure Unit


How it operates (Methods/ Practices)
1. Study various inputs and evolve segmentation plan (Product Managers) Efficiency
6 Product Managers (Dom / IB), Marketing Research / Country Managers study
w Segmentation Review and frequency of Review No. of
various factors influencing market conditions, CVBU capabilities and thrust
Reviews
areas.This is done through use of various listening and learning approaches and
w Changes in segmentation over a period No. of Changes
VOC/ QFD exercises and Application Matrix
2. Determine Market segments (Product Managers) Effectiveness
6 Product / Country Managers and MR determine segmentation of the market w No. of Solutions Developed for each Sector Nos
based on Product, Usage and Geography and SIAM / Country classification w Improvement in CSI %
6 Product based Lines of Business
(M & HCV, LCV, SCV , Bus, NVB.. )
6 Usage based segmentation Sub process : Determine Customer Groups & Market Segments
( Sectoral business production in Cement, Steel, etc.) Sub Process Ref : CVBU-EL-05-03 (version 1.1)
6 Geography based segmentation Process Owner : Product Managers / Sales / Regional Managers
(Secondary segmentation based on regions / countries, etc. Frequency : Yearly
3. Determine Customer groups (Product Managers) EPM Linkage– CVBU-EL-05 (Market Development )
6 Form Customer groups based on nature of usage, fleet size, etc. for focus Preparation Date : 31/03/04
attention (such as, Institutional Sales (IS), State Transport Undertakings Modification Date : 31/03/05
(STU), Individual Customer, etc.
(Details in Brackets indicate involvement of various agencies)

31.3.2005 5.6
TATA Motors, CVBU Determine Customer Groups & Mkt. Segments

Key Steps in sub- process -


'Determination of Customer and
Inputs Channel Partner Satisfaction' Outputs
w CVBU past data on product & Non 1. Identify issues impacting customer w Customer Satisfaction Index (CSI)
product issues satisfaction w Dealers Satisfaction Index (DSI)
w Customer / CP complaints 2. Develop Questionnaire w OFIs / Areas of concern
w CVBU SC inputs regarding CSI / 3. Interview Customers of Tata & Competition w Customer Satisfiers & Dis-satisfiers
DSI 4. Analyze data w Prioritized areas for improvement in
5. Prioritize areas of improvements and CSI / DSI
prepare action plan

How it operates (Methods/ Practices) Performance Measure Unit


1. Identify issues impacting Customer satisfaction (MR/ CS/ Product Managers)
6 MR along with Product Managers/ Sales/ CS/ NVB decides the scope of the CSI / DSI study to be Efficiency
undertaken , issues, segments, sample size, attributes, method of determination (Internal / Third w CSI / DSI for CVBU %
Party ) and comparative standard (own performance / competitor performance), etc.
2. Develop Questionnaire (Market Research) Effectiveness
6 MR develops questionnaire which covers positively worded statements covering above aspects w % Improvement is CSI / DSI %
3. Interview Customers of Tata & Competition (MR/ Surveying Agency) w Areas of improvement identified Nos
6 MR carry out interviewing of customers of Tata and competition through in- house or third party
agency. This is done for a sample size arrived statistically, on 5 points Likert scale
4. Analyze data (Market Research)
6 MR / Third Party consultant analyse data using regression and factor analysis. The analysis is Sub process : Determination of Customer & CP
carried out to identify areas of concern for CVBU & its relative positions with respect to competition Satisfaction
5. Prioritize areas of improvements and prepare action plan (MR/ CS/ Product Managers)
Sub Process Ref : CVBU-EL-05-04 (version 1.1)
6 MR identifies areas of concern & communicates to Product Managers/ CS/ NVB (both product / non
product) -Product Managers / CS/ NVB prepare and deploy action plan for improvements in CSI / DSI Process Owner : Product Managers / CS / Market
(Details in Brackets indicate involvement of various agencies) Research
Frequency : Yearly / Mid-Term
EPM Linkage – CVBU-EL- 05 (Market Development )
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 5.7
TATA Motors, CVBU Promote Products of Tata CV entire Range

Inputs
wInputs
CVBU Focus areas Key Steps in sub process -
w! Performance Targets for Channel
Purchase Drivers 'Promote Products of Tata CV entire Range' Outputs
w Partners ( Dom / IB
Industry Forecast )
– Short Term 1. Study Emerging Customers & Market Trends w Increase in Sales volume and Market
w!Business Guidelines as per
Sales Pipeline 2. Allocate budget for CV products – Overall Share
w CP Agreement
Targets for marketing product target achievement w Region wise budgets for Product
!Governance
segment Guidelines 3. Plan Market Devpt. & Design Schemes Promotion
w!Controlled
MarketingProcedure
Budget 4. Plan & Execute Sales Promotion Initiatives
Manual
w Emerging Customer & Market Trends 5. Measure effectiveness
w Analysis of Application Matrix

How it operates (Methods/ Practices) Performance Measure Unit


1. Study Emerging Customers & Market Trends (Product Managers)
Efficiency
6 Product Managers heads study emerging customers and market trends and other inputs such
w % Usage of Budget – Target Vs Actual %
as Sales Pipelines, ST industry forecast, CVBU focus areas, etc.
w % Increase in Sales Volume & Market share of %
2. Allocate budget for CV products - Overall target achievement (Product Managers)
Regional Product Managers
6 Product Managers seek annual budget for Market planning activities from CVBU Business Plan
w No. of Product Campaign programs arranged Nos.
3. Plan Market Development and Design Schemes (Product Managers)
w No. of schemes designed Nos
6 After studying the inputs and volume targets Product Managers Heads plan market and design
w Expenses - Budget Vs Actual per vehicle Rs/Veh
schemes considering targets for Volume and Market share.
6 The Budgets are then further divided Region wise according to the targets and
Effectiveness
Regional Product Managers while operating within given budget design product level incentives
w Increase in awareness of targeted customers and %
schemes, advertising, road shows, demos, etc. Channel Partners Regional level schemes
general public, regarding Tata Motors CV Product
such as inputs are also sought during demos, advertising actual expenses, etc..
Range and Services
4. Plan & Execute Sales Promotion Initiatives (Product Managers/ Marketing Communications)
6 Product Managers plan Sales Promotion activities such as advertising and publicity in
consultation with Corporate Communications department, who in turn involve various Sub process : Promote Products of Tata CV entire Range
advertising agencies for Sales Promotion. Sub Process Ref : CVBU-EL-05-05 (version 1.1)
5. Measure effectiveness ( Product Managers) Process Owner : Product Managers / Sales / Regional Managers
6 Product Managers/ Regional Product Managers keep track of Budget Usage and target Frequency : Yearly / Mid-Term
achievements and use this as input for further market planning activities EPM Linkage – CVBU-EL- 05 (Market Development )
(Details in Brackets indicate involvement of various agencies) Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 5.8
TATA Motors, CVBU Vendor Management

Vendor Management

EPM Process No: CVBU-EL-06

Principal Process Owner: Mr. P M Telang - President (Pune and Dharwad Works)

Locational Process chief: Locational ADD / Materials Heads

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-06-01 Development of New Vendors P K Sinha

CVBU-EL-06-02 Development of Item J S Hegde

CVBU-EL-06-03 Tooling Assistance to Vendors J S Hegde

CVBU-EL-06-04 Procurement from Suppliers Head Materials of respective plant

CVBU-EL-06-05 Monitor & Improve Vendor Performance V N Bedekar

31.3.2005 6.1
TATA Motors, CVBU Vendor Management

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU-EL-06 Higher Level Linkage-
Process Title - VENDOR MANAGEMENT Mr. P M Telang
Process Owner President (Pune & Dharwad Works)
Process Objective
- Develop and Maintain a Bank of Reliable Vendors
INPUT KEY STEPS OUTPUT
§ Sourcing Strategy & Requirement Ø Assess Current Resources ü Competent Vendor Base
§ Current Vendor Capabilities and Ø New Vendor Development ü Direct Material Cost Reduction
Performance Ø Development of New Part / Services ü Quality Supplies
§ ISO - TS 16949 Procedures Ø Procurement of developed Parts/ Services
§ Drawings and Specifications Ø Monitor Vendor Performance and Vendor Rationalisation
§ Cost Targets Ø Vendor Quality Upgradation

In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Cycle Time of Vendor / Part Development Lead Time for new Vendor Development
Quality of Supplies Percentage No of Self Certified Vendors / % CQ suppliers Nos., Percentage
Monitoring Progress vis-à-vis targets Parts with 2 or less Vendors / Vendor Rating Percentage
varience wrt Target Cost / Budget Nos. / Rs
Divisions Involved - ADD, Auto Materials, QA, MPC, SPD
End Customer - Head of Manufacturing, CVBU SC
Core Values Embedded Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS16949(2002) Clause Ref. 7.4
Process Revision / Modification History

Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By


New Release -
01/06/03 00 BES, Pune
31/03//05 01 Modification through process review Process Team

31.3.2005 6.2
TATA Motors, CVBU Vendor Management

Process Owner : Mr. P. M. Telang - President (Pune & Dharwad Works)


Process objective : Develop and maintain a bank of reliable vendors for
Develop new Vendor as
inputs in vehicle manufacturing, assembly & spare parts
per sourcing guidelines
Develop Secondary vendors operation
for Criticle Subprocesses
Vendor Deselection for
consistent poor
performance
Vendor Devp. Agency
-Receive Material -Monitor Vendor -Provide -Access Quality
Develop Matls schedules for
Requirement plan, performance Systems
Material / Regular
-Assess current No -Award CQ
Service No Procurement
resource Certification
-Decide Share of -Vendor Quality
Business Upgradation
Current vendor Vendor Devp. Yes
capable to Yes Performance
Vendor Devp. Agency / Matls satisfactory?
Vendor Devp. produce / QA Matls, MPC QA / Matls
Agency
Agency

Inputs- Inputs- Output- Inputs-


-Sourcing -Indent for devpt. Of -Feedback on Quality, Annual Monthly
Strategy items / service Cost and Delivery Sales
-current -Drawings & -Vendor Rating Plan for Vehicle and
vendor Specifications Process. Spare Parts
Capabilities, -Vendor Capabilities, -Internal / External
-Product -Cost and Schedule Customer Feedback,
Requirement Targets, -design & Management
-Alternative Options Capabilities of Vendor.
-ISO-TS 16949
Procedure

31.3.2005 6.3
TATA Motors, CVBU Development of New Vendors

Key Steps in -
Inputs Outputs
'Development of New Suppliers'
6 Make or Buy decision 6 Reliable supplier for Direct inputs
1. Maintain existing Suppliers data base
6 Indents for new parts in vehicle manufacturing &
2. Identify the need for a new source
6 Request from materials agency for assembly fulfilling QCDDMS rating
3. Assess capability of prospective Suppliers including
an alternate source. norms
management & technological capability
6 Information on suppliers gathered
4. Select Supplier & organise site visit
through exhibition, advertisements
5. Seek approval & allot Supplier code

How it operates (Methods/ Practices) Performance Measure Unit


1. Maintain existing Suppliers database -
6 Buyers of dev. Agency maintain information of existing suppliers (category of items, capacity, capability & Efficiency
6 New supplier development within time line No. of Days
their speciality if any).
of project schedule
2. Identify the need for a new Source - 6 VQR trend over a period No. of Mths
6 Scrutinize part indents / requests based on criteria 1) New Technology 2) Cost Competitiveness 6 Ppm trend Positive
3) Volume requirement v/s Capacity of existing Suppliers 4 ) Performance of existing Suppliers. 6 Cost reduction offered Y-O-Y basis Rs. Crore / %
3. Assess capability of prospective Suppliers through CFT– (Value / %)
6 Get Supplier information in specified form and shortlist potential Suppliers. Check Quality
systems, financial capability, machine & equipment capability, adequacy of management, design Effectiveness
capability, setup etc. Vendor Process Audit rating Index
4. Select Supplier & organise site visit –
6 Head of development agency ( ADD ) forms CFT of Materials, ERC, QA and Pricing committee
and assign team leader.
Sub process : Development of New Vendors
6 Team leader prepares site visit plan and communicate to Supplier and members.
Sub Process Ref : CVBU-EL-06- 01 (version 1.1)
6 Team conducts site visit & submit team visit report to Materials Head. Process Owner : P K Sinha
5.Seek approval & allot Supplier code – EPM Linkage– CVBU-EL-06 ( Vendor Management )
6 Development agency prepares Supplier approval proposal in standard format with teams Preparation Date : 31/03/04
recommendations and obtain Plant head’s approval through MPC. Based on approval Finance allots Modification Date : 31/03/05
Supplier code and updates Supplier data.``

31.3.2005 6.4
TATA Motors, CVBU Development of Item

Key Steps in -
Inputs 'Development of Item '
1. Identify sources Outputs
6 Indent from planning Agency
2. Get quotations 6 Transfer of developed item to
6 Recommendation from
3. Negotiate & finalize price Materials Agency
Materials Agency
6 Drawing / specifications 4. Procure samples
6 Quality standards 5. Complete PPAP
6. Procure pilot lot
7. Transfer of items

How it operates (Methods/ Practices)


1. Identify sources -
6 Concern buyers of development agency study the item requirement and select Performance Measure Unit
Supplier from current Suppliers if available, else develop new Supplier. Efficiency
2. Get quotations- w No of items items transferred as per Nos.
6 Buyers send enquiries along with drawing specs to Suppliers, obtain their quotations and prepare time line
comparative statement
3. Negotiate & Finalise price – Effectiveness
6 Buyers study price breakup and call Suppliers for negotiation. They finalize price and obtain No of parts having two or less vendors Nos.
Quality performance of Vendors
pricing committee’s approval for price and terms & conditions
w ( % rejection ) %
5. Procure samples – w Ppm level / trend for the part Positive
6 Buyers raise PO on a Supplier and procure sample lot. CQ checks sample lot and prepare
inspection report. CQ obtains ERC approval where necessary. Buyers communicate
inspection report to Supplier.
6. Procure pilot lot - Sub process : Development of Item
6 After acceptance of samples, Buyers procure pilot lot and obtain CQ approval. Sub Process Ref : CVBU-EL-06- 02 (version 1.1)
Process Owner : J S Hegde
7. Transfer of items
EPM Linkage – CVBU-EL-06 ( Vendor
6 Buyers prepare transfer note, obtain signature from Central Quality and Logistics group Management )
on transfer note. Buyers hand over transfer note to concerned Materials agency from whom the Preparation Date : 31/03/04
request was received. Development agency short closes their purchase order Modification Date : 31/03/05

31.3.2005 6.5
TATA Motors, CVBU Tooling Assistance to Vendor

Key Steps in -
'Financial / Tooling Assistance' Outputs
Inputs
1. Assess tooling requirement & decide make or buy 6 Providing Tooling to Supplier
6 Budget approval
2. Negotiate Tool cost with Supplier
6 Request for Tooling from Suppliers
3. Procure Tooling
6 Corporate guidelines
4. Handover Tooling to Supplier
5. Annual verification of Tooling

How it operates (Methods/ Practices)


1. Assess tooling requirement & decide make or buy
6 Buyers of Development ( Dev. ) Agency assess Suppliers Tooling assistance requirement and
Performance Measure Unit
take make or buy decision in consultation with Planning & PE. Agreement is done with Supplier
as per Corporate Guidelines where Tooling is made / bought by Suppliers on our behalf. For in- Efficiency
house Tooling indents are raised on Planning. 6 Adherence to target date
2. Negotiate Tool cost with Supplier Target V/s
6 For bought out tooling on receipt of quotation from Supplier, Buyers of Dev. Agency finalize 6 Adherence to verification schedule actual date
Tooling cost with the help of CFT ( QA, PE, ADD & Planning ) and obtain approval for Tooling
cost and type of assistance ( e.g. upfront payment / amortization ) as per procedure. 6 Variance of budget V/s actual incurrence %
3. Procure Tooling –
6 Negotiate rate and raise purchase order for Tooling through Machine Purchase on Tool Effectiveness
manufacturer by following capital item procurement procedure. 6 On time development of components %
4. Handover Tooling to Supplier–
6 Tooling is directly delivered by Tool manufacturer to Supplier. Tooling is tested by Supplier.
Based on acknowledgment of Supplier dummy GIN & Delivery Note are prepared. Payment to
Tool manufacturer is made on the basis of certification of Supplier that Tooling is giving desired Sub process : Tooling Assistance to Vendors
output. Based on acknowledged delivery note Finance capitalizes the Tooling. Sub Process Ref : CVBU-EL-06- 03 (version 1.1)
5. Annual verification of Tooling– Process Owner : J S Hegde
6 Buyers of respective materials agency maintain list of Tooling given to Suppliers on loan basis. EPM Linkage – CVBU-EL-06 ( Vendor Management )
They verify Tooling every year and submit the report to Finance Preparation date : 31/03/04
Modification Date : 31/03/05

31.3.2005 6.6
TATA Motors, CVBU Procurement From Suppliers

Inputs
Key Steps in -
6 Production forecast Outputs
'Procurement from Suppliers'
6 SPD , CKD & other plant call up 6 Scheduling agreements and
1. Annual Review of Rates & Suppliers
6 Item transfer note from amendments
performance
development agency 6 Procurement as per schedule
2. Obtain price / quota approval
6 Price revision approvals
3. Raise POs and amendments
4. Resolve Supplier issues

How it operates (Methods/ Practices) Performance Measure Unit


1.Annual Review of Rates & Suppliers performance –
6 Buyers identify scope for improvement by reviewing item / suppliers combinations for poor Efficiency
quality and cost performance based on the previous year’s data and current market trend and w Cycle time for action on transfer note No. of Days
targets. Wherever necessary e – procurement events are conducted and alternate sources are w SOB adherence %
identified. Inform development agency to develop an alternate source. Rates are negotiated.
Effectiveness
2.Obtain price / quota approval- w Supplier satisfaction index Index
6 Buyers negotiate rates and recommend revised quota (SOB) to Pricing committee based on w Vehicles with short fitment Nos
price and performance of existing as well as newly developed source. Pricing Committee w Cost reduction Rs. per
approves rate & quota and update quota in the system. Vehicle
3. Raise POs and amendments -
6 Buyers raise POs for requirement in line with production plan, transfer note and quota approval Sub process : Procurement from Suppliers
and communicate PO / amendments details to Suppliers. Sub Process Ref : CVBU-EL-06- 04 (version 1.1)
Process Owner : Head Materials of respective
4. Resolve Supplier issues – plant
6 Materials Agency head / buyers arrange formal or informal joint meetings with Suppliers and QA EPM Linkage – CVBU-EL-06 ( Vendor
to discuss issues regarding quality and delivery with a view to improve suppliers’ capability. Management )
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 6.7
TATA Motors, CVBU Monitor and Improve Vendor Performance

Key Steps in -
Inputs 'Monitor and Improve Vendor Performance' Outputs
6 Monthly Q, C, D data for each 1. Monthly monitoring of PPM level 6 Vendor rating
Supplier 2. Review of vendor rating 6 CQ suppliers
6 Warranty feedback 3. CQ certification of new Vendors
6 PDI report 4. Monitoring and Audit of CQ Vendors
5. Performance based rewards & recognition

How it operates (Methods/ Practices)


1. Monthly monitoring of PPM level - Performance Measure Unit
6 Central Quality collects Supplier-Part wise monthly primary & line rejection data and arrives at
PPM l evel. The feedback is given to Suppliers for improvement.
2. Review of vendor rating - Efficiency
6 Every quarter Vendor rating is computed on the basis of quality, cost, delivery and warranty w % adherence to audit schedule %
performance of Vendor. Vendor rating is used for determining Share of business ( SOB ),
development of new parts and de-selection of vendors. Effectiveness
w ISO Certified / self certified vendors %
3. CQ certification of new Vendors –
w Vendor rating %
6 Central Quality and material agencies encourage suppliers to establish Quality Management
w Improvement trend in Vendor rating Rs/eq
Systems at his end. Central Quality assesses quality systems of Vendors and awards Self
w Trend in MD Rejection Cost Veh
Certified ( CQ ) Vendors status if he attains desired level..
w Suppliers below 200 PPM %
4. Monitoring and Audit of CQ Vendors–
6 CQ vendors are audited for compliance as per pre-determined frequency. Suppliers give PDI
certificate for every consignment. Sub process : Monitor and Improve Vendor
5. Performance based rewards & recognition– Performance
6 Suppliers with high Vendors rating are considered for new part development and higher SOB. Sub Process Ref : CVBU-EL-06-05 (version 1.1)
Suppliers with consistent low rating are given lesser business or deselected. Process Owner : V N Bedekar
6 Cost of primary / line rejection and warranty failed parts are debited to the Suppliers. EPM Linkage – CVBU-EL-06 ( Vendor
6 CQ Vendors are considered for Direct Supplies to Line ( DSL ). Management )
6 Incoming quantity is checked on random basis and Suppliers are penalized for short receipts Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 6.8
TATA Motors, CVBU Channel Partner Management

Channel Partner Management

EPM Process No: CVBU-EL-07

Principal Process Owner: Mr S M Sharma - Head ( Customer Support )

Sub_Proc No Sub Process Name Sub_Process Owner

Sales Service Spares IB

Dealers TASS Distributors Importers/


Distributors
CVBU-EL-07-01 Assess Requirement of Channel Partners Head - DD Head- CS Head - LOB4 Head-IB

CVBU-EL-07-02 Select and Appoint New Channel Partner Head - DD Head- CS Head - LOB4 Head-IB

CVBU-EL-07-03 CP Performance Monitoring & Audit Head - DD Head- CS Head - LOB4 Head-IB

31.3.2005 7.1
TATA Motors, CVBU Channel Partner Management

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU-EL-07 Higher Level Linkage-
Process Title
- CHANNEL PARTNER MANAGEMENT Process Owner Mr S M Sharma Head Customer Support

Process Objective
- Develop & Maintain Bank of Reliable and Motivated Channel Partners for Sales & Service
INPUT KEY STEPS OUTPUT
§ CVBU Strategy Ø Assess Territory/ Segment-wise requirement of Channel Partners ü Territory-wise Network of
§ Long Term & Short Term Business Plans Ø Induction of new Channel Partners wherever required Dealers, Service Stations and
§ Territory/ Segment-wise Market Ø Set Targets Spare Parts Distributors
Potential and Market Share Targets Ø Provide Process and Training Support ü Channel Partner Satisfaction
§ Existing Channel Partners (CP) Ø Monitor Performance against Targets ü Customer Satisfaction
Performance Ø Performance Based Rewards and Recognition to Channel partners
§ CSI / DSI Survey Findings Ø Periodic audit at CP
§ Competition Data Ø Collect feedback from Channel Partners as well as from Customers

In - Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Appointment of CPs as per Schedule, No CPs Nos. No. of CPs available Nos.
where Sales/ Service Processes Introduced No of Outlets available
Dealer & Customer complaints monitoring Nos. DSI and CSI Index
Monthly Sales, Service and Spare Nos. Market Share & Volumes achieved %, Nos.
Parts Performance of CPs
Divisions Involved - Dealer Development, Vehicle Financing, Customer Support, LOBs, Sales, Service HQ
End Customer - Channel Partners
Core Values Embedded Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS16949(2002) Clause Ref. 7.2, 8.21
Process Revision / Modification History
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification through process review Process Team

31.3.2005 7.2
TATA Motors, CVBU Channel Partner Management

Process Owner : Heads of Sales (Dom /IB), Customer Support and NVB
Process objective : Develop and Maintain a bank of reliable and
motivated Channel Partners for Sales and Service.

Ascertain region- Receive & -Due diligence - Seek Review compliance Commencement
country wise Scrutinize site visits & Acknowledgement for Progress of Business (COB)
requirement Applications, interview TCOC, w.r.t. -Sign off Agreements
of new channel Analyze Financial -Set Schedule and Schedule With CP as per
Partners and Capability and Findings Yes Issue LOI prevailing regulations
invite applications short list OK? in the region/country
DD/CS/
DD / CS / NVB / DD/CS/NVB/IB NVB/IB No
IB Reject / Refund DD/CS/NVB/IB DD/CS/NVB/IB DD / CS / NVB / IB
EMD

Review Territory-country -Set / Review -Monitor and Performance Periodic audit Organise Dealer
No of systems/ meet and Third
and Product Segment performance review monthly/ based Reward /
wise expectations quarterly/ yearly Recognition at the processes at Party Surveys
Channel Partners (Volume, Quality performance Channel Partner CP’s end
Scenario and CP Channel & Financial ) for against Targets meet / other
Promotion policies partners Yes each CP functions
-Set Targets and Adequate?
Initiatives
Sales/DD/CS Sales / DD /CS/ Sales / DD DD/CS/NVB/IB
DD/Sales/CS/NVB/IB /NVB/IB NVB/IB /CS / NVB/IB Internal Audit DD/ CS /NVB

Support for establishing process and Training


DD/ CS /NVB/IB

Inputs-
-CVBU strategy (Dom /IB)
-LT & ST business Plans Inputs-
-Territory / Country product segment Territory / Country
wise potential & market share Targets. Potential and Past
-Existing CP’s performance Performance
-CSI / DSI survey findings
-Competition Data

31.3.2005 7.3
TATA Motors, CVBU Assess Requirement of Channel Partners

Inputs
w CVBU Marketing Plan (Dom /IB ) Outputs
w Competitors network reach in CV w Probable locations for new Sales
(Dom/IB) Market (Sales & Service) Key Steps in sub - process -
outlets / workshops
w CVBU’s strategic directions Global / 'Assess requirement of Channel Partners'
w Product Segment wise and Region-
domestic presence in chosen 1. Study and analyze existing network Capacity &
country wise requirement of new
product segments/ markets reach and identify gaps
Channel Partners
w Benchmark / Competition data 2. Assess the need for CVBU Channel Partners (Dom
w Service network expansion plan.
w CSI findings / Global)
w Un-presented territory with market 3. Develop and Implement Sales / Service network
potential (Dom/IB) expansion plan
w Growth potential of territory /
country & market share (Sales &
Service)
w Country-Region-wise Sales /
Service Market Share targets Unit
Performance Measure
Efficiency:
w No of CPs identified Vs Target Nos.
How it operates (Methods/ Practices)
w % increase in reach planned % of districts /
1. Study and analyze existing network capacity & reach and identify
countries represented
gaps w.r.t. CVBU Marketing ( Dom / IB ) Plan.
6 Map TML Network reach and identify gaps w.r.t competition network & Efficiency:
2.wheeler network. Identify locations. w CSI w.r.t. availability of Channel Partner Index
6 Prepare CP-wise annual plan for Sales, Service and Spares, identify gaps w DSI / TSI w.r.t. territory Index
2. Assess the need for presence of CVBU Channel Partners in the niche w Coverage of territory where competitor is No. of Locations
present
market /region/country
6 Study long term strategic directions and guidelines given by SC
6 Niche market study and competitive position of CVBU in terms of channel Sub process : Assess Requirement of Channel Partners
presence is carried out. Sub Process Ref : CVBU-EL-07-01 (version 1.1)
Process Owner : Heads of DD Cell / CS / NVB / IB
6 Prepare Network expansion ( Domestic / Global ) plan for Sales, Service
Frequency : Yearly
and submit to SC for approval. EPM Linkage – CVBU-EL- 07 (Channel Partner Management)
3. Develop and Implement Sales / Service network ( Dom / IB) expansion Preparation Date : 31/03/04
Plan Modification Date : 31/03/05

31.3.2005 7.4
TATA Motors, CVBU Select & Appoint New Channel Partner

Outputs
Inputs- Key Steps in sub- process -
w Increase in network (Dom/IB) reach
w Corporate Guidelines and approval 'Select & Appoint New Channel Partner’
w Addition of new CPs to network
w Network Expansion (Dom /IB) Plan 1. Identify suitable prospects
w Increase in Sale of vehicles / spare
w Existing CP’s performance in the 2. Assess on-site : due diligence
parts through CP
region / country 3. Recommend suitable candidates for LOI
w Improvement in CSI / DSI
w CSI / DSI findings 4. Verify LOI compliance and approve COB
w Letter of Intent
w Competition Data 5. Authorization to start business
w Commencement of Business (COB)

How it operates (Methods/ Practices)


1 - Identify suitable prospects
6 Float advertisement for Channel Partner for Sales, Service and Spares
(as the case may be) Performance Measure Unit
6 Send Application Form to desirous candidates
(Application seeks the details of the candidates, financial strength, past profile,etc ) Efficiency
6 Receive application with necessary documents w No of CPs appointed against the plan Nos.
6 Evaluate application based on the profile of the applicant
6 Short List candidates for site visit and due diligence w Avg. Time for new CP introduction No.of
2 - Assess on site : due diligence Days
6 Assess Financial viability of the candidate,
6 Conduct site visit and interview Effectiveness
6 Verify information stated in application,financial papers, due diligence
3 - Recommend suitable candidates for LOI w Conversion rate of LOI into COB. %
6 Recommend suitable candidates for LOI ( Letter of Intent)
6 Study clauses to be incorporated in the agreement for safeguarding the potential risks.
6 Seek ED / Chairman approval and issue LOI to the selected candidates
6 Explain Tata Code of Conduct to LOI holder Sub process : Select and Appoint New Channel Partner
4 - Verify LOI compliance and approve COB ( Commencement of Business) Sub Process Ref : CVBU-EL-07-02 (version 1.1)
6 LOI holders to complete infrastructural and other requirement in stipulated time Process Owner : Heads of DD Cell / CS/ NVB/ IB
6 COB is approved by ED(CVBU)/Chairman for the LOI holders complying the Frequency : Yearly
requirements. EPM Linkage - CVBU-EL- 07 (Channel Partner
5 - Authorization to start business Management)
6 LOI holder sign the agreement as per the rules prevailing in the region and TCOC Preparation Date : 31/03/04
contract with TML and is authorized to start business. On compliance of Building, Modification Date : 31/03/05
infrastructure and other required resources and training he becomes Authorized
Channel Partner of TML

31.3.2005 7.5
TATA Motors, CVBU CP Perfomance Monitoring & Audit

Outputs
Inputs Key Steps in sub - process- w Monthly/Quarterly/Annual CP
w Performance Targets for Channel 'CP Performance Monitoring & Audit' performance reports
Partners ( Dom / IB ) 1. Set performance expectations w Workshop profitability
w Business Guidelines as per 2. Monitor & review monthly / quarterly/ w Adherence to TCOC
CP Agreement annual performance vis-à-vis targets w Compliance to TS requirements
w Governance Guidelines 3. Render Training Support w Adherence to Governance /
w Controlled Procedure Manual 4. Recognize high performance Performance Guidelines/TCOC
5. Conduct periodic audit and organize w Audit Recommendation
third party surveys w Compliance to TS requirements

How it operates (Methods/ Practices) Performance Measure Unit


1 - Set performance expectations
Efficiency
6 Performance expectation w.r.t. Sales / service & spare parts are set and
w Adherence to audit schedule R-Y-G
informed to Channel Partners (Dom /IB)
2 - Monitor and review monthly / quarterly /annual performance vis-à-vis targets Effectiveness
6 Channel Partners send Sales / workshop performance and spare parts sales w L/B/D, S/B/D, V/B/D Against
to concerned AO / Country Managers who in turn forward the same to Benchmarks
DD/ Sales /CS / NVB / IB as the case may be. w No. of Non-conformities observed during Nos.
3 - Render Training Support audit and resolved
6 DD/STC/ Sales Process team (IB) render training for Channel Partners w Service Market Share %
(Dom/IB) staff in consultation with concerned Sales / CS / NVB / IB personnel
4 - Recognize high performance Sub process : CP Performance Monitoring & Audit
6 Good Sales / Services and Spares performance (region/ product segment-wise) is Sub Process Ref : CVBU-EL-07-03(version 1.1)
rewarded in regular National / International Channel Partner meet and Process Owner : Heads of DD / CS/ NVB / IB
other functions.
Frequency : Yearly / Mid Term
EPM Linkage – CVBU-EL- 07 (Channel Partner
5 - Conduct periodic audit and organize third party surveys
Management)
6 Audit w.r.t. statutory complaints Sales / Service Process Implementation,
Preparation Date : 31/03/04
Project Vishwas, Operation raid etc.
Modification Date : 31/03/05

31.3.2005 7.6
TATA Motors, CVBU New Product Introduction

New Product Introduction

EPM Process No: CVBU-EL- 08

Principal Process Owner: Mr R A Bijlani - Head NPI Project - CVBU

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-08-01 Development of NPI Product Plan Head NPI

CVBU-EL-08-02 Budgeting of NPI Project NPI Project Manager

CVBU-EL-08-03 Monitoring Execution of Project NPI Proejct Manager

CVBU-EL-08-04 Product Design & Development Head ERC

CVBU-EL-08-05 Process Planning Head Planning

31.3.2005 8.1
TATA Motors, CVBU New Product Introduction

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU - EL - 08 Higher Level Linkage-
Process Title New Product Introduction Process Owner Mr R A Bijlani Head NPI CVBU
Process Objective Timely Introduction of New Product to market requirement
INPUTS KEY STEPS OUTPUTS
§ CVBU Strategy and Business Plan Ø Product Strategy & Product Plan Review ü Timely Introduction of new
§ CV market Needs & opportunities Ø Receive and analyze customer requirements product meeting quality and cost
§ Tata Motor’s and Competitor's Ø Project Initiation targets
Product Profile Ø Concept selection
§ Technologies available Ø Project classification
§ Internal Capabilities Ø Concept and Project approval
§ Competitor Analysis Ø Design Release, validation & certification-
§ QFD, VOC Ø Planning of Facilities, Vendor Development
§ Benchmark Data Ø Quality Proving, Process validation Launching of Product
§ CMVR Requirement

In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to time schedule while Colour indicator : New Products / variants introduced against target Nos.
driving of project. Green - 0 to 2 months New Products / variants cycle time against target % Variation
Yellow - 2 to 4 months
Red - 4 months and above
Achievement of Quality targets % w.r.t. target
Actual Vs Budgeted Project and Product cost % Adherence
Divisions Involved - Product Strategy Group, SC, NPI, MKTG, ERC, Auto planning, ADD, PE, MPC, SSG
End Customer -
Core Values Embedded Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS16949(2002) Clause Ref 5.4.2, 7.3
Process Revision / Modification History-
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification through process review Process Team

31.3.2005 8.2
TATA Motors, CVBU New Product Introduction

Process Owner : Mr R A Bijlani Head NPI CVBU


Process objective : Timely, cost effective offering of new product
to Market as per customer requirement

-Evaluation of Market Selection of -Finalise Basic -Detail design


opportunities with the help of Concept - Project Layout and Styling -Alpha Prototype
Product Concept Evaluation Team Understand customer Classification and Ergonomics manufacturing &
Strategy and (CET) Requirement -Time schedule -Finalise vehicle & testing
Product Plan -New Project Initiation -Workout alternate -Product Definition aggregate (aggregates, and crash)
(Define product requirements,
Review concepts (Packaging, -Prepare Business -performance -Review of design and
customer segments, Product
positioning,Price and volume) styling, Cost ) Case specification and modification
-Appoint Project -Prepare Preliminary -Seek approval of review cost
Manager Business Case PSG

PSG / SC / Project Manager and Project Manager / ERC / ERC/


NPI Office PSG / NPI Office ERC NPI Office Projct Manager Project Manager

-Process Planning -Design validation


Inputs- Inputs- Inputs- Inputs- and Estimate Sheet -Beta prototype mfg
-CV Market -New Product -New Technology -System Level release & testing
Data Requirement (Advanced Engg.) Benchmarks -Control Plan -Review of design
-Competitor -Market -QFD -Key preparation modification
Analysis Opportunities -Voice of component -Vendor Development -CMVR Certification/
-New -Competitor’s Customer suppliers -Plan and acquire/ Homologation
Technologies Offerings -Benchmarks -DFMEA install facilities & -Release of design for pre-
-CVBU -PFMEA tooling production batches
Strategy APL/Plant Engg./
QA/ADD
ERC
Project Manager
Launching of Quality Proving & Process Validation, Testing for volume
Product Prodn.(PO,PP and PL batch Production)
Regular Production Project Mgr /Line Mgr.

31.3.2005 8.3
TATA Motors, CVBU Development of NPI Product Plan

Inputs
w CVBU Strategy Key Steps in-
w New product proposals from 'Development of NPI Product Plan'
Marketing and ERC 1. Evaluate opportunities and prepare Outputs
w Market Research inputs on Indian proposals w Approved Product plan of NPI
as well as International market 2. Prepare segment wise list of options. Projects
3. Prioritize projects
potential and competition
4. Approval of NPI plan
w Resource availability

How it operates (Methods/ Practices) Performance Measure Unit


1. Analyze Research inputs and select segment/s for NPI that support CVBU’s
strategy Efficiency:
2. Review proposals from Marketing and ERC and short list segment wise w Quarterly release of Product plan
proposals on the merits of business case. (variance w.r.t. Time) %
3. Review resources committed for projects in hand, availability of Financial
resources as well as ERC capacity and prioritize projects and prepare NPI
plan and estimate resource requirement for implementing the plan. Effectiveness
4. Seek approval of PSG and CVBU Steering committee’s approval w Product Plan communicated to
all related functions %

Sub process : Development of NPI Product Plan


Sub Process Ref : CVBU -EL-08-01 (version 1.1)
Process Owner : Mr R A Bijlani Head NPI CVBU
EPM Linkage : CVBU-EL-08 ( NPI )
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 8.4
TATA Motors, CVBU Monitoring Execution of NPI Project

Key Steps in -
'Execution of NPI Project' Outputs
Inputs
1. Form CFT of representatives from related Functions/ w Introduction of new product as per
w Product Specs & Features
Departments Time schedule, targeted Project
w CAPEX Budget approvals
2. Periodic review of activities by Functional Heads and Product cost and meeting
w Targets for Quality and Cost of
3. Periodic review by Project manager customer deliverables
product
4. Periodic Internal Audit of documentation by NPI
w Project Cost & time targets and
Project office
Gantt chart
5. Phase gate clearances ( DR0…DR5)
6. Productionisation

How it operates (Methods/ Practices) Performance Measure Unit


1. Project Manager and core team is nominated by NPI department head. Nominations for CFT are
Efficiency
sought from the functions/ departments that have a role to play in the concerned NPI Project. The
w Actual time taken w.r.t. base line %
nominated person acts as single point of the concerned function/ department.
2. Concerned Function/ Department Head assigns NPI project related activities pertaining to his area to
Effectiveness
suitable persons and reviews as part of routine communicates progress through CFT member of his
w No. of Products launched as per schedule. Nos.
department
w Products meeting deliverables w.r.t. %
3. Project Manager interacts with concerned departments as well as conducts review meetings to resolve
Customers’ expectations.
issues, if any,and to ensure that quality, cost and time targets are met.
4. Project Manager uses standard formats ( Designed and maintained by NPI Project office in the form of
soft copy on website “COIN”) for phase wise documentation.NPI Project office conducts periodic
Sub process : Monitoring Execution of NPI
internal audits to assure NPI department head that documentation is in order.
Project
5. On reaching prescribed mile stone the Project Manager request for Phase Gate (DR1..DR5) review by
Sub Process Ref : CVBU-EL-08-03 (version 1.1)
PSG/ SC. During the Phase Gate reviews, the project is reviewed for its viability & progress,budgets
Process Owner : NPI Project Manager
are reviewed and gate way clearance is given. NPI Project Office maintains record of Gateway Sign
EPM Linkage : CVBU-EL-08 ( NPI )
Offs and budget approvals
Preparation Date : 31/03/04
6. After DR 5 sign off, Project Manger oversees productionisation of the new product, co-ordinates with
Modification Date : 31/03/05
concerned departments resolving issues,if any, and to ensure validation of designs and processes for
required production rate. The product is then handed over to manufacturing .

31.3.2005 8.5
TATA Motors, CVBU Budgeting of NPI Project

Key Steps in- Outputs


Inputs 'Budgeting of NPI Projects'
w Product Specs & Features w Project wise Budget approval
1. Classify the project from Corporate Office
w Historical Cost data for products, 2. Plan timeline
tooling, machines etc. 3. Estimate Project Cost,Estimate Product
w Target price and volume cost, Payback Period, IRR/ EVA
projections 4. Seek Capital Budget Approval and
w Project Classification guide-lines communicate to all the concerned
w Timeline templates 5. Monitor Expenses against budget

How it operates (Methods/ Practices) Performance Measure Unit


1. Classify project ( New product, variant, upgrade etc) using standard guide lines based on
Product Specs and Features, in consultation with ERC Efficiency
2. Seek broad tech. Specs, dimensions and features from ERC and communicate to all the
NPI team members to enable them to estimate cycle time, effort and cost for activities in their Effectiveness
function/ department. w Maintain or Better Project Cost at %
3. Seek estimates (time, efforts and cost) from team members activities in their function/ targeted Value
department. Draw Gantt chart for project. Estimate accounting head-period wise budget w Maintain or better Product Cost at %
requirements and total cost of the project .estimate allowable product cost. Estimate payback targeted value
period, IRR/ EVA and prepare business case and put up for approval of project as well as
capital budget.
4. Explain and justify requirements to approving authorities ( PSG,Corporate Planning,SC etc) Sub process : Budgeting of NPI Project
and seek approval for project and CAPEX. Receive Budget Codes CAPEX from Corporate Sub Process Ref : CVBU-EL-08-02 (version 1.1)
Planning. Review capital budget requirements indicated by functions/ departments and Process Owner : NPI Project Manager
allocate capital budget and allot works budget codes (WBS element) to them through Project EPM Linkage : CVBU-EL-08 ( NPI )
Group of Central Planning ( Auto Planning) of plant. Preparation Date : 31/03/04
5. Attach Budget Codes to work Order/ Expense and collect cost through Legacy/ SAP system Modification Date : 31/03/05

31.3.2005 8.6
TATA Motors, CVBU Product design and development

Key Steps in-


'Product design & development' Outputs
Inputs 1. Design Initiation Document.(DR1)
w Performance expectations w New VC No
Finalize basic layout, styling and performance w Release of drawings/CAD data
w Concept alternatives specifications ( Dr2)
w Styling themes 2. Design Aggr. and Comp.,insert new parts in DENIS and and TPL
w Packaging release for ‘Alfa’ prototype
w System level bench marks 3. Built ‘Alfa’ prototype and carry out testsDR3)
w Cost targets 4. Review design, incorporate required changes and
w Tata Motor’s standards,National & release for ‘Beta’ prototype
5. Testing and ARAI certification.( Dr4)
International standards and rules 6. P0 and PP batch production and validation
( TS,IS,DIN,EN etc standards and 7. Final release of Drawings and TPLs(DR5)
CMVR ,EEC rules etc) 8. Validate design based on service feed back

How it operates (Methods/ Practices) Performance Measure Unit


1. On clearance of DR0 stage, NPI Project Manger indicates the broad performance expectation
and cost targets. Feasibility is studied, concept is selected, product profile and technical targets are Efficiency
proposed w Cycle time of design and development Days
2. On receiving DR1 clearance Basic layout/ mock ups are prepared, performance specifications are
proposed, inputs from key component suppliers are taken ,initial FMEA is performed and Proposal Effectiveness
giving product specifications, styling & packaging , layout and design cost & timeline estimate is given w Target Vs actual Cost of Design and Testing %
to NPI project manager for putting up business case. w Targeted Vs estimated cost of product %
3. On receiving DR2 clearance detailed designs are prepared and released for Alfa prototype. prototype
is developed and tested. After incorporating changes, if required, back is given to Project Manager for
seeking approval for validating business case.
4. On receiving DR3 clearance, Beta Prototype tests are conducted, full design is validated, ARAI Sub process : Product design and development
certification is obtained and DR4 clearance is taken for P0 and PP batch production Sub Process Ref : CVBU-EL-08-04 (version 1.1)
5. P0 and PP batches are produced and tested as per planned production processes, changes Process Owner : Head ERC
recommended by QP team are analysed, designs are validated, drawings are modified where EPM Linkage – CVBU-EL-08 ( NPI )
required and DML is released for full scale production after obtaining DR5 clearance. Preparation Date : 31/03/04
6. After launch of product based field feed received from service is analysed to validate design. Modification Date : 31/03/05
Drawing are modified where require and released through DML to APL for introducing change
in production.
31.3.2005 8.7
TATA Motors, CVBU Process Planning

Key Steps in-


Inputs 'Process Planning'
1. Take “Make or Buy” decision for components & Outputs
w Drawings , TPL and Drawing / CAD aggregates and create BOM/ APL TPL w Validated process & Estimate sheet
data 2. Release indents for Bought items/ materials Indents for new tooling, inspection &
w Volume projections 3. Monitor the DML progress till implementation testing equipments, machines, material
w Plant master, Capacity utilisation 4. Plan Processes shop made items/ aggregates, handling & storage equipments, Building
and Cost Center data 5. Prepare and release Estimate Sheets and indents
for new tools & tooling and inspection equipment etc and infrastructure facilities.
w Manufacturing Strategy w Indents for development of bought out
through computerised system
w New Technologies & trends in 6. Release indents for machines, material handling & storage components and materials
manufacturing equipments and building & infrastructure facilities w Bill of Material – APL TPL Estimate
w Budget Approvals and cost 7. Validate processes for desired production level sheets and stage part drawings
targets 8. Capital Budget requirement for Auto

Performance Measure Unit


How it operates (Methods/ Practices)
1. Make or buy decision is taken on the basis of manufacturing strategy. Based on this decision BOM is Efficiency
created in the computerised system with appropriate condition of supply. w Adherence to schedule %
2. Based on condition of supply planning releases indents for development of bought out components,
Effectiveness
raw materials, castings, forgings etc; on source development agency ( ADD/ A Matls ) w Planned vs actual cycle time of production No.
3. Planning plans processes for all the shop made items, consults production and PE/ Tool room, processes
conducts PFMEA for critical item, estimates time and releases Estimate Sheets after time validation by
PSD for use of Costing, Production, PSD. Planning also releases indents for new tools & tooling,
machines ,equipments etc for in-house manufacturing or procurement. Sub process : Process Planning
4. Planning conceives shop layout and gives indents for material handling & storage equipments, Sub Process Ref : CVBU-EL-08-05 (version 1.1)
building and other infrastructure facilities as required. Process Owner : Head Planning
5. Planning co-ordinate with concerned agencies till all the required facilities , machines ,tooling are EPM Linkage – CVBU-EL-08 ( NPI )
provided and tested. During productionisation, planning validates all the processes and cycle time for Preparation Date : 31/03/04
required production rate. Modification Date : 31/03/05

31.3.2005 8.8
TATA Motors , CVBU Service Design

Service Design

EPM Process No: CVBU-EL- 09

Principal Process Owner: Mr S M Sharma - Head (Customer Support), Mr S Y Deshpande - AGM (Customer Support

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-09-01 Understanding Customer Needs Mr. S. Y. Deshpande

CVBU-EL-09-02 Design of New Services Mr. S. Y. Deshpande

CVBU-EL-09-03 Pilot Run of New Service Mr. S. Y. Deshpande

CVBU-EL-09-04 Introduction of New Service Mr. S. Y. Deshpande

31.3.2005 9.1
TATA Motors, CVBU Service Design

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU- EL- 09 Higher Level Linkage-
Mr S M Sharma Head (Customer Support)
Process Title- SERVICES DESIGN Process Owner Mr S Y Deshpande AGM (Customer Support)
Process Objective- Introduction of new services to support customers of CVBU products to maintain it throughout its life and enhance value
for money , Growth of Non Vehicular Business (NVB)
INPUT KEY STEPS OUTPUT
§ Business Plan of LOB4 Ø Data analysis and identifying new opportunities ü Introduction of Customer
§ Data on Spare parts & Service Long term and Ø Identification of challenges and key customer expectations Friendly and Cost Effective
Short term Ø Improvement of Existing Services / Designing of new services, if required Service Processes
§ Customer Satisfaction Survey and Dealer Ø Assessment of economic viability of new/ improvised services and ü Services and Revenue from
Satisfaction Survey Findings Approval from SC NVB (LOB-4)
Ø Define Process Responsibilities
§ Channel Partner / Customer feedback about
Ø Test / Pilot Run of new/ modified services
current Service Processes Ø Acquisition of Resources
§ Past Performance of services Ø Introduction of New Service
§ Govt. / ISO / SIAM guidelines Ø Training of CPs.
§ CMVR Norms Ø Establish Control and Monitoring Mechanism
§ Vehicle Features Ø Conduct Periodic Surveys
§ CVBU BSC
In-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to schedule of Introduction, Cycle Time % No.of Service Processes designed and deployed Nos.
of the Service Profitability of CPs %
Customer Complaints Nos. CSI and DSI Index
Orders on hand Nos. Turnover and Profitability of NVB (LOB-4) Rs. Crs / Percentage
Service Market share %
Divisions Involved - Service HQ, NVB HQ
End Customer Channel Partners and Customers of TATA Commercial Vehicles
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS 16949 Clause Reference-
-
Process Revision / Modification History-
Date of Modfn. Modification No Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/3/05 01 Modification through process review Process Team

31.3.2005 9.2
TATA Motors, CVBU Service Design

Process Owner : Mr S M Sharma, Head - Customer Support;


Mr S Y Deshpande - Customer Support
Process objective : Introduction of new services to support customers of
CVBU products to maintain it throughout its life and
enhance value for money-Growth of Non Vehicular
Business(NVB)

-Analyse data, -Review Priorities -Study needs Define -Test / Pilot Run -Establish
identity performance improvements -Evolve alternatives Process -Review and Controls and
challenges & of current / new service -Project cost incorporate Review
Delivery Mechanism
key customer Services, NVB introduction, benefits channel and changes, if
Expectations performance, -Select alternative -Define
responsibilities necessary Measures are
regarding Pricing -Define -Analyse -Plan and Acquire indicators
services strategies and requirements anticipated risks resources -Assign
-Identify new incentives -assess resource -Training of Responsibilities
proposal Prepare requirement and -Introduce
Channel Partner new
Business Plan seek SC approval
/improvement
NVB HQ / service
Service HQ NVB HQ / NVB HQ / NVB HQ / NVB HQ NVB HQ/ NVB HQ/
Service HQ Service HQ Service HQ /Service HQ Service HQ Service HQ

Seek customer / channel


Inputs- Partner feedback through
Inputs-
-Market Survey Data Inputs- Internal / Third party
-CVBU BSC,
-Customer / Dealer -Technologies Surveys
-ASO Reports,
satisfaction survey feed -Best Practices
-Customer feed back,
back. -Benchmark
-Channel Partners
-Market Research data. data NVB HQ / Service HQ
Feedback,
Competition Data -Govt./ ISO / SIAM
-Requirement related guidelines w.r.t.. Work
to new products Systems,Pollution
Introduced by the company Norms, Product
-Changes in Services Feature etc
Environment

31.3.2005 9.3
TATA Motors, CVBU Understand Customer Needs

Input Outputs
6 Capturing customer voice at various w Identified Needs / preferences /
touch points such as requirements of –
a. Customer visiting Dlr/TASS Key Steps in sub - process- -Present Customers
b. Customer visits/ contacts 'Understanding Customer Needs' -Potential Customers
c. Customer meets/ mechanic 1. Analyse inputs and decide upon attributes -Competition Customers
meets for data collection -Future Customers
d. Campaigns 2. Gather feedback from customer w Opportunities for Improvement
e. Technical seminars 3. Assess customer feedback and
f. training meets analyse Satisfiers and Dis-satisfiers
6 Competition offerings 4. Prioritise needs
6 CSI & DSI Survey Findings
6 Channel Partners Feedback
6 Regulatory Requirements

How it operates (Methods / Practices) Performance Measure Unit


1. Analyse inputs an decide upon attributes for data collection (CS) -
6 Study various inputs and decide whether the Customer requirement study w.r.t. services, would be Efficiency Nos.
carried out in-house or by third party. 6 No. of seminars. Plan v/s conducted Nos.
6 Define Sources, Customised Listening and Learning Approaches and customer feedback access 6 No. of customers meets Plan v/s conducted
mechanisms for different customers such as current, former, potential or competition customer
Nos.
6 No. of campaigns. Plan v/s conducted
6 Assign responsibilities for gathering feedback to various agencies such as RO, AO and Channel Partners
as appropriate.
6 Competition data is collected by customer visits, by visiting their group dealers/ customers Effectiveness
2. Gather feedback from customer (CS) - 6 No. of needs identified Nos.
6 Based on market segmentation ( Product Groups ) and customer relationship framework (Individual /
Institutional / Key Accounts) and pre-determined L & L Approaches, NVB / CS / LOBs gather the
feedback from various customers. This feedback is gathered through telephone survey by external
agency, post-repair survey on larger Dealers/ TASS / MCCC feedback
3. Assess customer feedback and analyse Satisfiers and Dis-satisfiers (CS) -
6 Respective LOB heads/ CS assess feedback received from various cross section of the customer( both Sub process : Understand Customer Needs
product and service related ) . Product related feedback is used as one of the inputs for NPI while issues Sub Process Ref : CVBU-EL-13-01 (version 1.1)
related to After Sales Services are taken up for action by NVB and Customer Service. Process Owner : Mr. S. Y. Deshpande
4. Prioritise Needs (CS) - EPM Linkage – CVBU-EL- 09 ( Services Design )
6 Based on the feedback received w.r.t. Customer needs and CVBU strategic guidelines LOBs/ CS prioritise
Preparation Date : 31/03/04
the needs for further actions.
(Details in Brackets indicate involvement of various agencies)
Modification Date : 31/03/05

31.3.2005 9.4
Design of New Service / Improvement
TATA Motors, CVBU in Existing Service Process

Inputs
Customer needs & expectations Key Steps in sub - process -
6 Changes in Service Environment 'Design of New Service'
1. Define Service features Outputs
6 Competition Offering
2. Naming the process & process owner 6 New / Improved service process
6 Best Practices / Benchmark Data
6 Budget Allocated 3. Process Mapping
6 New proposals from RPMs / 4. Define Delivery Channel
RSMs / Channel Partners 5. Define Service Standards
6 Past Performance data/Feedback 6. Seek Approval
6 CMVR Regulations

How it operates (Methods / Practices)


1. Define Service features (CS)-
6 Analyse customer expectations and competition
offerings and arrives at characteristics of proposed services.
2. Naming the process & process owner (CS)
6 After service features of new process is finalised, name the process & process owner
3. Process Mapping (CS)
6 The entire process, covering the new/modified features, is mapped Performance Measure Unit
4. Define Delivery Channel (CS) -
6 Define delivery channel e.g. Channel Partners or in-house through VCM / CAC / CRM programs, Efficiency
allocate resources in such a way to enable integration of leading technology into the proposed 6 No. of new services designed / improved %
service (e.g. VCM / SAP support to services), define skill and training requirements. Factors such
as concentrated demand, financial variability and suitability of current service are considered while Effectiveness
deciding delivery channel 6 % Customer needs fullfilled %
5. Define Service Standards (CS) -
6 Define service levels and service standards to be followed, establish control and review
mechanism
6 Define in-process and output measures & indicators and targets for the same Sub process : Design of New Service
6 Define process responsibility for introduction of new / improved services to Service Owners Sub Process Ref : CVBU-EL-09-02 (version 1.1)
6 Define mode of service free or paid
Process Owner : Mr. S. Y. Deshpande
6. Seek Approval-
6 Head Customer Support present the draft new / improved service in the meeting with all EPM Linkage – CVBU-EL- 09 ( Services
stakeholders, incorporate modifications, if required and seek approval from concerned SC Design )
members for the pilot run Preparation Date : 31/03/04
(Details in Brackets indicate involvement of various agencies) Modification Date : 31/03/05

31.3.2005 9.5
TATA Motors, CVBU Pilot Run of New Service

Key Steps in Outputs


Inputs 'Pilot Run of New Service' 6 Satisfaction from the new / improved
6 New / improved Service Process 1. Prepare set-up for new service service (proposed)
2. Identify and schedule resources 6 Improvements / modifications
3. Training of concerned agencies e.g. suggested in the service under
channel partner, TML, field staff, service office test
4. Conduct Pilot Run
5. Capture and incorporate changes, if any

How it operates (Methods/ Practices) Performance Measure Unit


1. Prepare Set-up for new / improved service
6 Considering the steps and guidelines for Service, decide the time and
location where the pilot run of the proposed service is to be conducte Efficiency %
2. Identify and schedule resources Adherence to schedule
6 Identify resources such as material, equipments and the persons
involved from both sides ( Tata Motors and Channel Partners, as
appropriate). Explain the role of each person involved in the new Effectiveness
service. % of processes piloted reaching intoduction %
3. Training of concerned agencies e.g. channel partner, TML, field staff,
service office
4. Conduct Pilot Run
6 Conduct Pilot run of the service
6 Compare the observations and results against desired ones. Sub process : Pilot Run of New Service
6 Identify areas for improvements and seek suggestions Sub Process Ref : CVBU-EL-09-03 (version 1.1)
5. Capture and incorporate changes, if any Process Owner : Mr. S. Y. Deshpande
6 Based on the feedback of pilot run and suggestions received if any, EPM Linkage– CVBU-EL- 09 ( Services Design )
incorporate the changes in the service under question. Preparation Date : 31/03/04
Modification Date : 31/03/05
(Details in Brackets indicate involvement of various agencies)

31.3.2005 9.6
TATA Motors, CVBU Introduction of New Service

Inputs Key Steps in sub - process -


6 New / improved service process 'Introduction of New Service' Outputs
ready after pilot run 1. Assess workload & plan implementation 6 Addition of New / Improved
6 Resources and infrastructure 2. Make Training Module & training for Service
6 Training module for the ersonnel concerned agencies
6 Competent staff 3. Start implementation of New Service
4. Review the effectiveness for six months.
5. Transfer the process to EL - 13

How it operates (Methods / Practices)


1. Assess Workload & Plan implementation -
6 Assess efforts for implementation and decide time table so as to plan
6 Based on efforts required Service Owner decides service charges in case Performance Measure Unit
of paid service considering organizational market sentiments, priorities, Efficiency
breadth to be covered, time to acquire resources, etc. in consultation with 6 New / Improved Services introduced %
all stakeholders 6 Time required to introduce new / improved No. of Days
2. Make Training Module & training for concerned agencies – service adherence to plan
6 Service Owner seeks the faculty, training module and organizes the
training
(Class Room / OJT as appropriate) for the persons involved from both, the Effectiveness
6 DSI with respect to new service Index
channel partners and AO / RO staff.
6 CSI Index
3. Start implementation of New Service
6 Launch New Service in the presence of all stakeholders at predetermined
location, monitor the observation as free/ paid service Sub process : Introduction of New Service
4. Review the effectiveness for six months Sub Process Ref : CVBU-EL-09-04 (version 1.1)
6 Seek constantly feedback either directly from customer or through Channel Process Owner : Mr. S. Y. Deshpande
Partners till the New / Improved service is stabilized. EPM Linkage – CVBU-EL- 09 ( Services Design )
5. Transfer the process to EL – 13 Preparation Date : 31/03/04
(Details in Brackets indicate involvement of various agencies) Modification Date : 31/03/05

31.3.2005 9.7
TATA Motors, CVBU Sales and Operations Planning

Sales and Operations Planning

EPM Process No: CVBU-EL-10

Principal Process Owner: R K Ghosh - GM - Non Vehicular Business

Locational Process Chiefs: Locational PPC Head

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-10-01 Prepare Monthly/Annual Business Plan (Dom & IB) S & OP committee

CVBU-EL-10-02 Production Scheduling & Sequencing Head of APPC of Respective Plants

31.3.2005 10.1
TATA Motors, CVBU Sales and Operations Planning

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU-EL-10 Higher Level Linkage-
Process Title- SALES & OPERATIONS PLANNING (S & OP) Process Owner Mr R K Ghosh General Manager (NVB)

Process Objective- Translate Sales Requirement into Production Plan for On-time Delivery
INPUT KEY STEPS OUTPUT
Sales and Marketing Ø Preparation of Annual Production Plan for Vehicles and Spares ü Fulfillment of Market Demand
§ Budget from ABPs, Market including International Business ü Plant-wise, Model-wise
forecast, Requirements from Ø Compilation of model-wise, month-wise Plan, including Export production plan for
LOBs & Product Managers IB Ø Review and Finalization of plant-wise Production plan
§ Plant feedback Manufacturing
Ø Scheduling of day-wise production and dropping plan
Plants
Ø Review of Production Booking & monthly review of Delivery performance.
§ Manufacturing strategy,
Market forecast, plant wise Ø Mid term review of sales and production plans
capacity, Vendor Capabilities Ø Annual review of S&OP process for it's effectiveness
§ Back log of previous month,
Priorities of Sales
Availability of Vessels for
In - Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Daily, Monthly delivery against plan % Delivery Vs Plan for vehicles , parts No
Release of production set on Target No.of Days Delivery Vs Plan for CKD/SKD and aggregates %
Delivery compliance Report No.of Days Variation in schedules on Production %
Divisions Involved - Sales (Domestic & IB), LOBs, APC, Logistics, Institutional Sales, GMs manufacturing from plants, PMs (IB)
End Customer- Manufacturing Plants , Sales
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 5.4, 7.2
Process Revision / Modification History
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
25/11/04 01 Modification Process Team

31.3.2005 10.2
TATA Motors, CVBU Sales and Operations Planning

Process Owner : R K Ghosh – GM (NVB)


Process objective : Translate Sales Requirement into Production
Plan for On-time Delivery

Evaluate the effectiveness & relevance of S&OP process Annually in EPM review meetings for improvement

Modify the production plan for rest of the year Mid term review (MTR) of Sales Plan
during the year/month
-Prepare Annual -Review / Finalize
Production plan for plantwise No
Vehicle & Spares -Compile Plant/ Manufacturing Plan
(Domestic / IB) & model/month wise including Inter Day wise Daily review of
Recon, Ind demand for Plant Transfers Production Production Continue
Production as
Aggregates Vehicles & Spares Schedule & Booking Yes with the
Mid term review of (including Export) per schedule? Plan
Dropping Plan
Sales Plan

* S&OP/ APC S&OP / APC S & OP / APC Plant APPC Plant Mfg.

Inputs- Inputs- Output-


Sales & Marketing -Model wise daily
-Budget from ABPs -Back log of production plan
-Market forecast previous month -Input for Manufacturing
-Requirements from LOBs & IB -Market forecast (CVBU-EL-11)
Plants : -Plant feedback Inputs for Materials
-Manufacturing strategy -Prorities of Sales Planning - Vendor Mgmt
-Market Forcast (domestic & IB) (CVBU-EL-06)
Plant wise capacity
-Vendor Capacities

* S & OP consists of Sales (Domestic & IB), LOBs, PMs (IB), In-charge of Auto Produn & APC of respective plants, Logistics,Institution Sales

31.3.2005 10.3
Annual/Monthly Production Planning &
TATA Motors, CVBU Delivery Performance Review

Input Key Steps in- Outputs


6 Sales forecast from Marketing 'Annual / Monthly Production Planning ' 1. Annual / Monthly Plant wise / Model
(Dom & IB) 1. Derive model wise requirement wise production plan.
6 VC wise vehicle schedules from Mktg. 2. Finalize VFJ , IB – CKD/SKD, LOB -4 requirements 2. Delivery performance report against
( respective Sales & Mktg. to upload into 3. Finalize interplant aggregates requirements agreed delivery plan (Plant APPC)
SAP) 4. Finalize plant wise production plan
6 Plant wise capacities & constraints 5. Agreement on delivery plan
6 Supplier capabilities 6. Communicate & Monitor Plant wise performance
6 Finished goods stock position against production/ delivery plan
6 Strategic Input from CVBU Steering
Committee

How it operates (Methods/ Practices) Performance Measure Unit


1. Derive model wise requirement
6 Regional Managers and Country Managers (IB) forward sales forecast to respective logistics Efficiency
group of marketing (domestic & IB)
6 Preparation of plans on scheduled dates No. of
2. Finalize VFJ , IB – CKDs/ SKD & LOB -4 requirements
6 Collect requirements from VFJ and IB for CKD /SKD. 6 Preparation of delivery compliance report days
6 Collect plant wise requirement from Spare Parts and Industrial aggregates & Recon
3. Finalize Interplant aggregate requirements : Effectiveness
6 Collect Aggregate requirements of every plant from other plants. 6 Actual dispatches V/S Production Plan of %
6 Consolidate model wise total requirement of vehicle and aggregates. vehicles ,CKDs /SKDs
4. Finalize plant wise production plan 6 %achievement of delivery target of LOB4 reqmt. %
6 Model wise sales and LOB-4 requirements are discussed in the joint meeting of 6 Order wise schedule adherence for VFJ /IB %
PPC (Production Planning & Control ) of all the plants and sales. 6 Release order wise delivery performance %
6 Plant wise rolling production plan ( Vehicle + Aggregates for other plants ), and for Govt. orders
LOB-4 requirement is finalized after taking in to consideration plant & supplier capability constraints.
5. Agreement on delivery plan Sub process : Annual / Monthly Production Planning &
6 Agreement between Marketing and GM s Mfg Plants on delivery plan Delivery Performance Review
6 Agreement between Vehicle Sales Heads, LOB-4 Head on delivery plan
Sub Process Ref : CVBU-EL-10 - 01 (version 1.1)
6. Communicate & Monitor Plant wise production plan
6 Circulate finalized production plan to PPC of all Plants, Sales and Finance. Process Owner : S& Op committee – (Heads of Vehicle
6 Review production plan V/s daily actual dispatches. Sales ,Domestic &IB , & LOB-4 , GM s
6 Make midcourse changes, if necessary, in consultation with PPC of respective Mfg.& PPC heads )
plants and communicate changes to all concerned. EPM Linkage : CVBU-EL-10 ( Sales & Operations Planning)
6 Monthly review of plant delivery performance against agreed delivery plan Preparation Date : 31/03/04
Revision Date : 25-11-04

31.3.2005 10.4
TATA Motors, CVBU Production Scheduling & Sequencing

Inputs Key Steps in-


6 Sales Plan for the Month 'Production Scheduling & Sequencing' Outputs
6 Production plan as agreed by S 1 Assess sales & production plan & get VC clearance. 6 Daily dropping sequence and
&Op Committee 2 Communicate production plan schedule as per plan.
6 Feedback from materials agencies 3 Prepare vehicle dropping sequence. 6 LOB - 4 and other plants call up
and Factories of all plants 4 Prepare despatch schedule for LOB-4 requirements
and other Plants.
5 Monitor progress.

How, it operates (Methods/ Practices) Performance Measure Unit


1. Assess sales / production plan and get VC clearance
6 PPC of respective plant assesses and consolidate model wise requirement of Vehicles, Efficiency
aggregates & spare parts. 6 Release of production schedule on target date. No. of
6 Marketing to raise DS/ES with ERC and get the vehicle release / VC 6 Deviation wrt target date days
6 Marketing to raise schedules only after VC clearance by NPI /APL
PPC obtains VC cost from Finance. Effectiveness
2. Communicate Production Plan 6 No of changes in the sequence during the No
6 Inform model wise requirement of Vehicles, Aggregates required by other plants and all month
requirements of LOB-4 to Factory heads, vehicle despatch, Finance and materials agencies. 6 Delivery Vs. plan , vehicles, parts, VFJ s ,CKDs %
3. Prepare Vehicle Dropping Sequence
6 Considering sales priorities decide vehicle batches and daily production sequence of Aggregates
in consultation with Factories. Communicate daily dropping sequence to all concerned.
4. Prepare Dispatch Schedule for LOB -4 requirements & Other Plants Sub process : Production Scheduling & Sequencing
6 Make Agency / aggregate / item wise and date wise despatch plan in consultation with production Sub Process Ref : CVBU-EL-10-02 (version 1.1)
and materials agencies. Communicate LOB-4 call up to all Agencies. Process Owner : Head of APPC of respective Plant
5. Monitor Progress EPM Linkage– CVBU-EL-10 (Sales & Operations
6 Communicate Sales Order wise daily despatches to IB Planning)
6 Collect daily dispatches of vehicles & spares data and compare with the plan. Revise balance schedule Preparation Date : 31/03/04
if necessary and communicate. Revision Date : 25-11-04

31.3.2005 10.5
TATA Motors, CVBU Manufacturing

PROCESS DEFINITION SHEET


Process Identification No.(PIN) : CVBU- EL- 11 Higher Level Linkage-
Process Title MANUFACTURING Process Owner A.P. Arya - President (JSR & LKO Works)
Process Objective Produce and Deliver Quality Products as per S&OP Plan
INPUT KEY STEPS OUTPUT
§ S & OP Schedule Vehicles/SKD/CKD/Spare Ø Material scheduling and logistics ü Production and dispatch of
parts Ø Produce Vehicles/SKDs / CKDs/ Aggregates / components Vehicles / SKDs/ CKDs/
§ Vendor Capacity, Quality feedback sales Ø Delivery of Vehicle/SKD/CKD/Spare Aggregates / components as per
orders, Dealer Balance, Incoming PPM Ø Analysis of customer complaints requirements
§ ISO / TS16949, ISO14001 guidelines Ø Implementation of design modifications
§ Manufacturing Process Capability Ø Maintenance
§ Manpower Competencies
§ Customer's expectations / complaints
§ New Parts variants / New Products / New
Vehicles

In-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Daily / Monthly adherence to schedule Percentage No of Vehicles manufactured No
Rejection / Rework / Process audit, Cpk Values, As Applicable QI, Rejection / Rework, Warranty complaints/ As Applicable
Internal PDI PDI defects / COPQ
Daily /Monthly Prodn Plan, Inventories, Production Nos, Rs. Asset Turn , Safety Index %, Index
Inventory Levels , Productivity Rs. / Index Inventory No of days /Rs.
Variable conversion cost , Direct Matl Cost Rs. Warranty cost , Break even point Rs. , Nos
Variable conversion cost Rs.
Divisions Involved - S&OP, Manufacturing, Despatch, Materials, QA, PSD,APL, CPL, APPC, Maintenance
End Customer- Sales Head
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 7.5
Process Revision / Modification History-
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
05/02/05 01 Commonising process documents across locations Process Team

31.3.2005 11.2
TATA Motors, CVBU Manufacturing

Process Owner : A P Arya President (JSR and LKO)


Process objective :Produce & Deliver quality products as per S & OP plan

Scheduling of Maintain Machine & Disposal of scrap /waste/


Material Equipments Effluents

(Refer Next page) Prodn / Maintenance Purchase / Admin /


Plant Engg.

-Deliver product to
-Annual -Review and acquire Prepare / Review Daily / -Production Casting, RSOs / Direct
forecasting for -Facilities -Derive Monthly shift wise schedule of Forging, delivery to Dealers
material, -Machines,tooling & Production Plan Production and Components// & Institutional
manpower and equipments and man power at Manpower deployment Aggts. and Vehicle customers/Govt./Port for
plant capacity -Inspection/Testing shop level. plan -Monitor productivity and Export
requirement equipment -Review & quality. CLIP -Despatch of
-Man power reallocate Score & conversion components to
manpower cost elements, WIP SPDs / Other plants
APC/ Steering APL /
Committee Manufacturing/QA Production PPC / Prodn Prodn/PSD/QA
Dispatch

Inputs-
-Capital &
Revenue budget Inputs- Inputs- Product Delivery
approvals -Balance -SPC/ Control plan (Refer Next Page)
-Line Capabilities Inputs- Requirement wrt -CQ Audit findings
Inputs- -Manpower Gaps -Monthly mthly plan. -Quality feedback
-Business -Process plan Production -Line Capabilities (drive away chassis)
Plan -Process flow program -Attendance -Pre Delivery Inspn Inputs-
-Volume chart and Quality (S&OP) data -Warranty -Sales
Forecast, control plans Including -Matl Supply complaints Order from
-Production -productivity and requirement -Daily -Data on Internal SHQ / Ros
strategy, cost targets from LOB 4 Production Report failures -Credit
-New Product -Imrovement -Bill of Productivity -SLAs & SQDCM Availability on
Variants Initiatives Material Target targets Dealer’s A/C

31.3.2005 11.3
TATA Motors, CVBU Manufacturing

Scheduling of Material
Rejections / Scrap/
Raise Pos on Vendors Provide Monthly Release Schedules on Receipt, Inspection, obsolete items
and STOs on Plants Vehicle Dropping Plan Vendors and follow up Binning, Storage of despatch / disposal Material Audit, Stock
for Mfg units / Shops Material Verification and
Materials/MPC Prod Plng & Con Matls / FLG CRDO / Stores/ QA Issue Matl / tools to reconciliation
Line, Despatch matl to
plants and Vendors for
processing

Inputs
§ Production Plan for the Year/Month
§ Veh. Dropping Sequence for the Month / 3-days/ day
§ Approved Vendor base (Vendor - Parts - SOB)
§ Daily Shortage List from stores
§ Stock Condition of components
§ Despatch information on aggregates

Product Delivery
Receive Vehicles / spares Storage and
from Works / other RSOs Delivery of vehicles/ Spares PDI and Delivery of vehicle
to Dealer / TSS / Inter RSO / spares to Customer
Check/ Inspect as per RWH Transfers inter RSO
Chassis Check Sheet and transfers as advised by Dealer / TSS
Acknowledge RO
Despatch Resp. RSO / RWH

Transporter Payment
Monitor Despatches Vehicle / Spares Requirement
Resp Plants from Dealers / TSS

31.3.2005 11.4
TATA Motors, CVBU Material Scheduling & Logistics

Inputs Outputs
Key Steps in-
6 Production Plan for the Year/ Month 6 POs on Vendors.
'Material Scheduling & Logistics'
6 Vehicle Dropping Sequence for the 1. Pos on Vendors/ STOs on plants 6 Schedules on Vendors.
Month / 3-days / day 2. Release schedules on Vendors 6 Availability of material for production.
6 Approved Vendor base (Vendor- 3. Follow up with Vendors/ plants
Parts-SOB) 4. Receipt, Inspection & Storage of material
6 Daily Shortage List from stores 5. Issue / Despatch Materials
6 Stock Condition of components 6. Material Stock Reconciliation as per norms
6 Despatch information on aggregates

How, it operates (Methods/ Practices) Performance Measure Unit


1. POs on vendors
Pos are released by respective Materials Group on vendors with respect to terms & contracts and share of business Efficiency
allocation based on Annual Production Plan. Aggregates like Engine, Gear Box, Axles, Cowls, Cabs etc are 6 Average Inventory (Auto) No. of Days of
scheduled (thru STSA & STO’s) on respective plants Consumption
2. Release Schedules on Vendors 6 Non-moving Inventory Rs.
Buyers (Respective Material Group) evaluates material requirements through MRP (on SAP) and Applicability Matrix
(Off- line) and
6 Stock reconciliation (Gross discrepancy
release monthly/ / daily schedules on suppliers through system based on daily vehicle dropping plan, SPD & other plant value as % of stocks value) %
requirements and share of business.
3. Follow up with Vendor / Plants Effectiveness
Concerned Material Group evaluates Availability/ Requirements on daily basis and follow up with Suppliers to ensure receipts 6 Chassis Line stoppage due to b/o Hours/ Month
in line with schedules and monitor transit consignments till those are received.
4. Receipt, Inspection & Storage of material material shortage
CRS/ CRDO prepares Goods Receipts ( GR ) document at materials gate in line with schedules and handover Invoice with 6 Deficient vehicles due to auto %
GR sticker/ material tags to transporters/ vendors. Transporters/ vendors go through security check and deliver material to materials - % of total vehicles
respective FLGs/stores. Stores receive material and update acknowledged quantity in the system. Material having CQ/ No 6 Incoming ppm Ppm
Inspection status need no inspection and taken in to bin stock. Items having LL ( Lot by lot ) inspection status are checked by
SQA/ VQA . SQA/ VQA updates inspection decision in the system. Accepted material is taken in to bin stock and rejected
6 Premium Freight Rs.
material is either sent to concerned Supplier or scrapped as per procedure. In case of exigencies, deviations are sought from
QA/ ERC and material accepted (time- bound OR quantity bound)
5. Issue / Despatch of Material
Depending on space availability in manufacturing line and inspection status of part-vendor, materials are delivered directly to
Sub process : Material Scheduling & Logistics
line. Other items received in stores on JIT basis and delivered to line as per requirements. In case of MASOP where raw Process Ref : CVBU-EL-11-01 (version 1.1)
material is supplied by TML to supplier, raw materials is dispatched to vendors as per requirements of respective Material Process Owner : Head Materials- Pune - JSR - LKO
group requirements through Central Dispatch Section (CDS) EPM Linkage – CVBU-EL-11 ( Manufacturing )
6. Arrange Material Stock Verification and further reconciliation as per norms
Materials audit arranges PI as per schedule at every stores and submit PI discrepancy report to materials Head. For selected
Preparation Date : 31/03/04 (updated 05/02/05)
high value Class A & B items, once every quarter. For other items,once every year. For Class C items, Material verification and
stock reconciliation done every three years.

31.3.2005 11.5
TATA Motors, CVBU Produce Vehicles/Aggregates/Components

Inputs
w B/O materials, aggregates and
components Key Steps in -
w In-house materials, aggregates and 'Produce Vehicles/Aggregates/Components '
components 1. Prepare production schedule
w Production schedule 2. Allocate manpower Outputs
w Estimate sheets/routings 3. Ensure availability of material, tooling, w Vehicle, aggregate, component
w Support from other functions equipment as per quality norms and S&OP
w Quality plan/work instructions/Control 4. Production of parts, aggregates and vehicles
Plans 5. Monitoring of quality, productivity, safety and
w Resources, manpower, direct material, cost
Indirect material/tools, machines,
equipments and vehicles.

Performance Measure Unit


Efficiency
How, it operates (Methods/ Practices) w Eq. Unit./ Man/ Year Ratio
1. Prepare production schedule w Variable Conversion Cost / Unit Rs./ Unit
6 Based on vehicle production/dispatch schedule and spare parts call up, each
factory/shop works out Production Schedule. Effectiveness
2. Allocate manpower w S&OP Schedule Adherence CLIP Score
6 Each factory/shop works out its manpower requirement on the basis of production w Quality Index Index
plan and productivity targets and redistribute manpower and communicate net w First Shot OK (Aggregate/ Assy Line Level) %
shortage/excess to HR. w COPQ Rs./ Unit
3. Ensure availability of materials, tooling, equipment w Process Capability Improvement (Machining) Ppk >
6 Respective factory/shop co-ordinates with concerned agencies to ensure on time 1.67 for identified processes %
availability of material, tools, machines etc. w Process Capability Improvement (Non-measurable)
4. Production of parts and aggregates % Conformance > 99.73 %
6 Production activities are carried out as per estimate sheets / routings. w Process Capability Improvement
Operatives carry out in process inspections/checks as per quality plan/ work (Tightening) Ppk > 1.33 %
instructions. Central QA performs audit checks to ensure that laid down system is w Safety index (SR & FR) Index
being followed.
5. Monitoring of quality, productivity, safety and cost Sub process : Produce Vehicles/Aggregates/Components
6 Factory/Plant management reviews production, productivity, quality and cost on Sub Process Ref : CVBU-EL-11-02 (version 1.1)
daily/monthly basis and takes corrective action as required. Process Owner : Factory/Divisional Head Pune - JSR - LKO
EPM Linkage– CVBU-EL-11 ( Manufacturing )
Preparation Date : 31/03/04 (updated 05/02/05)

31.3.2005 11.6
TATA Motors, CVBU Vehicles, SKD/ CKD & Spares Despatch

Inputs
w S & OP (Spares, SKD/ CKD, Vehicles)
from SHQ/ Plant APPC Key Steps in -
w Chassis, SKD/ CKD, finished 'Vehicle, SKD/ CKD and Spares Despatch ' Outputs
components and aggregates 1. Prepare dispatch plan for rollout w Vehicle despatch
w Packing List, Packing List materials, 2. Make materials ready for dispatch w Spare parts despatch as per call up
Packing materials 3. Picking and Packing (for Spares/ CKD/ SKD) w SKD/ CKD Dispatch
w Approved transporters 4. Document preparation for dispatch
5. Dispatch

How it operates (Methods/ Practices)


1. Prepare dispatch plan for rollout: Performance Measure Unit
6 Respective Dispatch department coordinates with SHQ/ Spare Parts/ Efficiency measures
Other Plants and prepares dispatch plan for vehicles (model wise),
w Spare Parts – Dispatch Float Days
SKD/ CKD/ Spares (Consignment wise) for dispatch
2. Make materials ready for dispatch:
6 VD/ Exports readies the vehicle/ Spares / SKD/ CKD for dispatch (by Effectiveness measures
providing canopy, RUPD, rust prevention treatment on vehicles, w Total Packing Cost as % of total dispatch value %
aggregates and components)
3. Picking and Packing (for Spares/ CKD/ SKD): w Transit Accidents/ Total Vehicles %
6 Materials to be dispatched is collected from production divisions and w Spare Parts-S&OP Sch adherence (%) %
brought to dispatch stores. These are packed and readied for dispatch to w Customer Complaints (DAC/ SKD/ CKD/ Spares) %
required destinations as per schedules from other plants and spare parts w Vehicles/ SKD/ CKD reaching destination on time %
department
4. Document preparation for dispatch:
6 For vehicle dispatch, appropriate kit is added to the vehicle to be rolled
out. Invoice is prepared by VD/ Exports as per excise department Sub process : Vehicle and Spares Despatch
requirements Sub Process Ref : CVBU-EL-11- 03(version 1.1)
5. Dispatch: Process Owner : Heads Vehicle Despatch,Exports &
As per in-built system for SOB, transporter is arranged for each vehicle CKD,Auto services- Pune -JSR - LKO
OR consignment of Spares/ SKD/ CKD and handed over for dispatch to EPM Linkage – CVBU-EL-11 ( Manufacturing )
transporter Preparation Date : 31/03/04 (updated 05/02/05)

31.3.2005 11.7
TATA Motors, CVBU Analysis Of Customer Complaints

Key Steps in -
Inputs 'Analysis Of Customer Complaints '
w Warranty reports / field analysis from 1. Receive complaints & failed parts Outputs
service 2. Preliminary review by Service and w Corrective/ Preventive Action
w Vehicle PDI reports allocation to concerned agencies (Modified product / processes)
w Complaints through DAC/ PCR/ CIR 3. Root cause investigation and analysis w Break Point for introduction of
w Failed parts for analysis 4. Identification and initiation of corrective modifications
w In plant Dealer PDI action w Investigation reports
w Customer Satisfaction survey 5. Monitoring and Review w Opportunities of improvements for
w Customer Grievances 6. Issue of break point ERC / NPI & CS
w Customer Interactions through 7. Documentation w Complaint trend
meets, campaigns, visits, etc. 8. Feedback from field

How it operates (Methods/ Practices) Performance Measure Unit


1. Receipts of complaints & failed parts -
6 Service dept. of respective Plant 1) receives on-line complaints data based on PCR & CIR and failed parts from channel partners and warranty reports, Efficiency
field analysis reports, information on Customer grievances and meets from Service Head Quarter. 2) offers complaints data, reports, information to w Cycle time for complaint resolution
warranty committee ( representatives of Service, QA, ERC & Manufacturing ) for investigation 3) arranges display of failed parts. (VOR, Design, Technical) Days
6 PDI ( Pre Delivery Inspection ) defects are directly sent from Service Head Quarter to QA once a month.
2. Preliminary review by Service and allocation to concerned agencies Based on customer complaints received, the following reports are generated by
Service and communicated to ERC, QA and manufacturing: Effectiveness
6 Product Performance Reports – complaint- and cost-wise analyses for each model. Issues are codified complaint code wise. These are based on 24/ 36- w Reduction in PDI complaints %
month product performance w Reduction in field failure complaints / expenses %
6 Fortnightly Report – detailing Top 20 complaints in each model in the last 6 months
6 Service Meetings – with Production, ERC, QA / CQ /SQIG
w CSI %
6 Committee ascertains the cause of failure and assigns responsibilities to respective production centres w Quality Index Index
3. Root cause investigation & analysis w Warranty Expenses Rs. / Veh
6 Production centres perform root cause analyses with help of suppliers (bought out) and QA and Metallurgy (In-house) using methods like DOE technique
and Ishikawa Diagrams. Findings are communicated to the concerned agencies for corrective actions
6 Based on investigation, Committee defines liability of failed Part and communicate findings to respective Channel Partner / RSO. PDI defects are
forwarded to respective factory for necessary action. SQA / VQA/ CQ (Warranty cell) returns failed parts to Supplier.
4-6. Initiation of corrective actions, Monitoring and Review, and Issue of Breakpoint –
6 QA raises Design Modification Request ( DMR ) and forward to Standards I at Pune or Technical Services at JSR & LKO. They forward DMR to all
concerned Agencies within and across plants and collect their comments. Based on concurrence the DMR is forwarded to ERC / NPI for approval. Sub process : Analysis Of Customer Complaints
6 ERC studies the request and incorporate necessary changes in the drawing and communicate changes through Design Modification List (DML) to all the Sub Process Ref : CVBU-EL-11- 04 (version 1.1)
concerned. Process Owner : Head (QA,CQ,Customer Support)
6 Respective factory takes corrective actions on PDI defects and inform QA / CQ.
6 QA / CQ takes up with Suppliers to improve their process / materials quality as per report.
Pune - JSR - LKO
6 Planning study process and identify layout, logistics, Machines / Equipments problems and take corrective actions EPM Linkage – CVBU-EL-11 ( Manufacturing )
6 QA / CQ tracks progress on actions identified till it is implemented. Control parameters are revisited after tryout. Preparation Date : 31/03/04 (updated 05/02/05)
7. Documentation – each of these corrective actions are circulated to relevant agencies – manufacturing, sales, service
8. Feedback from field on these corrective actions are sought for further review

31.3.2005 11.8
TATA Motors, CVBU Implementation of Design Modifications

Key Steps in - Outputs


'Implementation of Design Modifications' w EPA (effective point advise ) for
Inputs
1. Communicate design modifications Components & Aggregates
w DML from ERC, APL/ CPL
2. Planning of design change w MBPA ( Modification Break Point
w Technical part list on-line
3. Implement design change Advice ) for Chassis/ MEPA
Drawings released by ERC/ APL/
4. Update & release BOM based on (Modification Effective Point Advice)
CPL
MEPA / MBPA for Components & Aggregates
w Revised BOM in Denis and SAP

How it operates (Methods/ Practices) Performance Measure Unit


1. Communicate design modifications - Efficiency
6 Standards I ( Pune ) / Technical Services ( JSR & LKO ) communicates design modifications to all w Number of DMLs /EPAs outstanding No.
concerned Agencies. All modifications are coordinated by Standards I ( Pune ) / Technical Services ( JSR & Age-wise
LKO ). Coordinating Agency raise EPA (Effective Point Advice ) and communicates details of modification and w Age of outstanding DMLs / EPAs No. of
role of each Agency ( Planning, ADD, Production, QA, Materials, PE etc.), based on DML received from ERC. DMLs / EPAs
2. Planning of design change –
6 Coordinating Agency 1) prepares implementation schedule in consultation with all concerned agencies, 2) Effectiveness
obtains feedback from respective Agency on stocks of present parts, lead time of development of new parts /
tooling etc. and monitors progress, 3) obtains samples. Concerned departments take necessary action in line w % EPAs implemented vis-à-vis Plan
with EPA and communicate status to coordinator. for three categories A, B and C %
3. Implement design change –
6 Coordinator 1) arranges tryout with the help of concerned shops and obtain QA’s acceptance. 2) decides
implementation date after consulting all the agencies and with a view to minimize inventory of obsolete parts. Sub process : Implementation of Design
If necessary implementation is done gradually, in phases, to minimize wastage. Modifications
4. Update & release BOM based on break point - Sub Process Ref : CVBU-EL-11-05 (version 1.1)
6 Concerned shop Implements design modification on specified date. QA issues MEPA for Components & Process Owner : Head (TS / STDs I)
Aggregates and MBPA for Chassis. Based on break point details coordinating Agency incorporates changes Pune -JSR - LKO
in the BOM and release it for production. EPM Linkage – CVBU-EL-11 ( Manufacturing )
Preparation Date : 31/03/04 (updated 05/02/05)

31.3.2005 11.9
TATA Motors, CVBU Maintenance

Inputs Key Steps in -


w Manufacturer’s Catalogue 'Maintenance '
w Machine Inspection report 1. Derive monthly schedule from annual PM Outputs
Plan w Machine Health
w Preventive Maintenance Plan w Availability of machines /
2. Carry out PM as per schedule and
w Breakdown Analysis Report checklist equipment for production
w Feedback from QA / Production 3. Plan and deploy corrective actions based
on machine capability ( Cpk). on PM Feedback

How it operates (Methods/ Practices) Performance Measure Unit


1 Derive monthly schedule from annual PM Plan
Efficiency
6 Annual PM Plan is prepared for all equipment and machines by respective divisional/ factory
w Adherence to PM Plan %
maintenance departments based on their criticality and availability in the year
w Maintenance Cost Rs.
6 Beginning each month, specific date wise PM schedule is developed for machines and
equipment in consultation with production centres.
6 Respective Maintenance departments perform the following on an annual basis: Effectiveness
6 Spares planning – based on manufacturers’ catalogue, machine inspection report and w % Downtime %
breakdown analysis report w MTBF/ MTTR Minutes
6 Procurement of spares – POs are raised for spares based on feedback generated through PM
Checks.
6 Monthly PM schedule is intimated to respective production/ process owner for release of Sub process : Maintenance
machines/equipment Sub Process Ref : CVBU-EL-11- 06
2. Carry out PM as per checklist (version 1.1)
6 PM checklist is revisited and revised on need basis by Maintenance groups Process Owner : Respective CX/
6 Maintenance plans and allocates required manpower for PM of each machine/ equipment on Maintenance Incharges
daily basis EPM Linkage – CVBU-EL-11
6 PM group carries out PM and the PM report is vetted by respective production centres ( Manufacturing )
3. Plan and deploy corrective actions based on PM Feedback Preparation Date : 31/03/04
(updated 05/02/05)

31.3.2005 11.10
TATA Motors, CVBU Sales Planning

Sales Planning

EPM Process No: CVBU-EL- 12

Principal Process Owner: Mr Shyam Mani - VP (Sales & Marketing) ,


Mr P G Shankar - Head CVBU International Business

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-12-01 Set Sales Targets and Prepare Sales Plan Sales and Product Management Heads

CVBU-EL-12-02 Manage Off- Take / Shipment Targets Sales and Product Management Heads

CVBU-EL-12-03 Manage Pipeline and Retail Sale Area Managers / Country Managers

CVBU-EL-12-04 Maintain Customer Database DAM(Dealer Account Manager) /


Country Manager

31.3.2005 12.1
TATA Motors, CVBU Sales Planning

PROCESS DEFINITION SHEET

Process Identification No.(PIN) : CVBU- EL- 12 Higher Level Linkage-


Process Title- Sales Planning Process Owner Mr Shyam Mani VP (Sales & Marketing)
Mr P G Shankar Head (CVBU IB)
Process Objective- Strengthen and Support Sales and Distribution
INPUT KEY STEPS OUTPUT
w Annual Business Plan(Dom / IB) Ø Analysis of Business Plan( Dom / IB) ü Market Requirement to S & OP
w Last Year Performance Ø Preparation of Channel Partner Level Monthly Sales Plan ü Sales achieved vis-à-vis the
w RSO, Dealer Stocks & Requirements Ø Communicating model-wise requirement to Plant for Manufacturing targets
(Dom);IB, Distributor Stocks & Ø Managing Market Share Targets and Off take / Shipment and retail sales
Requirements (IB) targets
w Monthly Production Plan Ø Managing RSO / IB / CP level Stocks and Receivables
w Sales Processes Feedback Ø Managing customer pipeline using Sales Processes
w Activity Plan Ø Reviewing of Sales Performance, Analysis of Gaps and planning actions for
w Finance / Incentive / Sales Promotion next month
Schemes

In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Daily Pipeline C0-C1-C2-C3 Nos. Monthly Pipeline C0-C1-C2-C3 Nos.
Monthly Review of Conversion Rate C0 to C1 Nos. Annual Sales volume Nos.
to C2 to C3
Divisions Involved - LOB Heads, SHQ, ROs, AOs, Dealer Development Cell and Channel Partners
End Customer- Channel Partners and Customers of TATA Commercial Vehicles
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 5.4, 7.2
Process Revision / Modification History-
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification through process review Process Team

31.3.2005 12.2
TATA Motors, CVBU Sales Planning

Process Owner : Mr Shyam Mani – VP (Sales & Marketing), Mr P G Shankar – Head (CVBU-IB)
Process objective : Strengthen and Support Sales and Distribution.
w Market Requirement to Sales
& Operation planning
w Plant Level Manufacturing
Plans

-Seek and -Prepare Monthly -Manage customer


analyze Inputs Sales Plan Prepare Dealer / Review Sales
-Manage Market pipeline to achieve sales
from Annual -Dealer-wise Distributor (IB) Performance
Share Targets, Targets
Business Plan Allocation ( n+2 basis Level Model- wise -Weekly, Monthly
-RSO/ IB Stocks, C0-C1-C2-C3
for IB) off-Take / Shipment -Gap Analysis
off-take/ shipment -Provide Training
- Raise EVRs (for IB) and Retail Sales - Feedback on OFIs
and Receivables Support to Channel
-Communicate Plan based on pipeline
Partners analysis –corrective
Sales ( Dom/IB ) Model-wise Regional-Country- -Manage stocks
/ Product Mgrs- requirement to actions for the next
Area Offices/ at Channel Partners end
PM/ Country Plants month
Logistics-Dom /
Mgrs.-CM Oprns & Shipping-IB RM/AM/CM/ SPCP AM/DAM/DSM
Sales / PM /CM team
Sales / PM / CM

Inputs- Inputs- Inputs-

Inputs- w Day-wise Customer w Individual SE’s /


w Plant Production Reports,
w RSO / IB Stock Reports Pipeline CP Pipelines,
w Annual Business Plan w Market coverage plan w Activity Plans,
w Channel Partner Stock
w CP requirement w Control Measures w Incentive /
reports
w Production Plan w Promotional
w Schemes, etc

31.3.2005 12.3
TATA Motors, CVBU Set Sales Targets and Prepare Sales Plan

Inputs Key Steps in sub- process : Outputs


w Market share targets ( Dom / IB) 'Set Sales Targets and Prepare Sales Plan’ w Region-Country-Area-wise Off-
1. Gather data on Product Sale take / Shipment Plan
w Sales Forecast (Industry / Country )
2. Seek Forecasting data w Channel Partners-wise,
w Past Sales Data of CVBU
3. Set Targets segment- wise allocation of
w Competitor Sales Data Shipment / Retail Targets

How it operates (Methods/ Practices) Performance Measure Unit


1. Gather data on Product Sale (SHQ (Dom / IB) / RO / AO) Efficiency
6 Data on region wise off take and retail sale (model wise) is compiled by w Adherence to schedule of Target setting and
RM/ AMs and sent to SHQ review R-Y-G
6 Competition data is provided by MR through FIBRES and other
internal sources for Dom. While Country Managers provide the same for Effectiveness
their respective countries through their internal sources w Off-take /Shipment Target Vs. Achievement Nos.
2. Seek Forecasting data (Product Managers) w Retail Sale Target Vs. Achievement Nos.
6 Product managers/ SPCP team gathers information in terms of Sales
trend, segment wise industry / country volume projections (Source: MR for
Domestic, AM/RM/Journals / Sales Process data/ IB_CVBU strategy
Sub process : Set Sales Targets and Prepare
document for IB) Sales Plan
3. Set Targets (Product Managers) Sub Process Ref : CVBU-EL-12-01(version 1.1)
6 Based on above data SHQ (Sales / PM / CM ) work out overall Process Owner : Sales and Product Management
sales plan and set Region wise targets in consultation with Regional Heads
Managers EPM Linkage : CVBU-EL- 12 ( Sales Planning )
(Details in Brackets indicate involvement of various agencies) Frequency : Yearly / Half yearly
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 12.4
TATA Motors, CVBU Manage Off-take / Shipment Targets

Key Steps in sub- process :


Inputs 'Manage Off-take/ Shipment Targets'
w Channel Partner past data, 1. Get Requirement from Channel Partners Outputs
w Plant Capacities & capabilities 2. Set off-take/ shipment targets and w Off-take Sale to Channel Partners
w Region-Country-Area wise off- take sign off contract with CPs w Region-wise RSO Despatch Plan
/ shipment targets 3. Get month-wise indent / EVRs from CPs, for Plants
w RSO / IB Stock 4. Manage off-take / shipment & delivery to CPs

How it operates (Methods/ Practices) Performance Measure Unit


1. Get requirement from Channel Partners (RM/ Country Managers / AM)– Efficiency
6 Area and Account Managers seek product segment level requirement from Channel Partners on Annual as well
as monthly basis ( monthly for deomestic, n+2 basis for IB) which is then communicated to SHQ (Dom / IB) w Channel Partner-wise month-wise off-take
6 Product Managers and Sales Heads review the requirement w.r.t. Business Plan which include Production / shipment Nos.
Planned at various plant and new products planned for launched. Feasibility of product requirement is checked w Vehicle Inventory No. of Days
with Plant NPI and communicated back to the channel partners.
2. Set off-take/ shipment targets and sign off contract with CPs (Sales/ PM/CM/CP)- Effectiveness
6 After reviewing the adequacy and discussion with CPs , SHQ allots region-wise product w Off-take / Shipment - Target vs.
segment wise off-take targets to all RMs / CMs, cascaded down upto Channel Partner
level by RM / CM . Review with CPs by RM and with RM by SHQ is carried out
Achievement Nos.
periodically. Channel Partner sign off annual requirement with SHQ (Dom / IB).
3. Get month-wise indent/ EVR from CPs (RMs/ CMs/ AMs)
6 AM / DAM discuss with Channel Partners and seek firm indent / EVRs for the next month (n+2 basis for IB). RM
consolidate this firm off take based on RSO Stock position and communicate to SHQ (Dom). EVRs (IB) are sent Sub process : Manage Off-take / Shipment
to IB-Operations by Country Managers. Targets
4. Manage Off-take / shipment & delivery to CP’s (RM/CM/AM/Logisitics)- Sub Process Ref : CVBU-EL-12-02(version 1.1)
6 SHQ (Dom/ IB) collates vehicles requirements from CPs including Institutional Sales, Exports, etc. Process Owner : Sales and Product Management
Production Plan and Dispatch Plan is finalized in Sales and Operations Planning (S&OP) meeting. Heads
6 Sales Logistics / IB-Operations communicates Plants, the day-wise dispatches to be made to RSO and Dealers . EPM Linkage : CVBU-EL- 12 ( Sales Planning)
AO/ IB advices RSO/ Shipyard to deliver the vehicles as per agreed indent from respective RSO to the dealers/ Frequency : Yearly / Monthly
shipment with the help of Account Managers. CP-wise off-take/ shipment position is reviewed periodically at SHQ
and corrective actions are evolved from both sides such as Sales Promotion, boosting production levels etc. Preparation Date : 31/03/04
(Details in Brackets indicate involvement of various agencies) Modification Date : 31/03/05

31.3.2005 12.5
TATA Motors, CVBU Manage Pipeline and Retail Sale

Inputs Key Steps in sub- process


w Requirement from the Channel 'Manage Pipeline and Retail Sale'
1. Sales Planning at the start of the month Outputs
Partners w Achievement of retail sale
w Stock Status ( Dom / IB ) 2. Prepare designed pipeline, Market
Coverage Plan and key activity plan w Optimized stock levels
w Region-Country-area wise off-take / w Channel Partner’s order / EVRs
shipment targets 3. Monitor customer pipe line
on TML
w Customer pipe line at the end of the 4. Periodic Review and Corrective Actions
month (Product segment level )

How it operates (Methods/ Practices)-


1. Conduct Sales Planning meeting after Retail Closing (AM/ DSM) -
6 AM and Sales Manager of the channel partner conduct meeting of all SEs in which previous month performance is
reviewed in terms of control measures, market coverage sheet is filtered and live customers are carried forward. Performance Measure Unit
2. Prepare designed pipeline , Market Coverage Plan and Key Activity Plan - Efficiency
6 SE’s prepare Customer Pipeline based on retail targets given to them by DSM. This consists of 4 customer categories viz. w Conversion Factor of SEs %
C0,C1,C2 and C3.
C0- Customers who are willing to buy TATA vehicle, customers having competition vehicles , lost customers, Owners of w Loss of Customers %
TATA vehicles who have not purchased TATA vehicle in last 3 years
C1- Customers who have taken quotation from TML CV dealers Effectiveness
C2- Customers who have booked the vehicle by giving token payment or LOI or Letter from financier w Retail Sale Planned Vs. Achieved Nos.
C3- Customers who have bought TATA vehicle. He remains as C3 for 3 years from the date of delivery( average period for w Customer Coverage per unit target Nos.
re-buying )
6 Retail sale is executed through Dealers/ TSS (for Dom.) and Distributors (for IB)
6 Through Customer pipeline, SE finds out no. of customers he need to contact based on his conversion factors and plans
the visit accordingly. He prepares list of customers and visit plan which is known as ‘Market Coverage Plan’ Sub Process : Manage Pipeline and Retail Sale
3. Monitor pipe line (SE / DSM/ AM / SP team (IB) ) - Sub Process Ref : CVBU-EL-12-03(version 1.1)
6 DSM compiles and integrates SE / dealership daily pipeline and communicate to AM / CM which is further cascaded to Process Owner : Area / Country Managers
AO / RO/ Country level
4. Review Activity Plan and incorporate Corrective Actions (DSM/ AM) - EPM Linkage : CVBU-EL- 12 ( Sales Planning)
6 Depending upon the pipe line status, AM / DSM review and modify Activity Plan and plan corrective actions for current as Frequency : Daily / Monthly
well as next month Preparation Date : 31/03/04
(Details in Brackets indicate involvement of various agencies) Modification Date : 31/03/05

31.3.2005 12.6
TATA Motors, CVBU Maintain Customer Database

Inputs
w Requirement of customer related Outputs
data (Market Coverage Sheets) Key Steps in sub- process w Updated Customer Database file
w Marketing Research and Sales 'Maintain Customer Database' with Dealership
Planning 1. Seek Customer Information w CDB in Web-based CRM system
w Invoices for vehicles 2. Record Customer Information &
w Referrals from existing customers Requirement in Customer Information Form
w Data from Financiers, RTO, Demo, 3. Compile and Update Data Base
Publications, etc. 4. Maintain Data Base

How it operates (Methods/ Practices)-


1. Seek Customer Information (SE) - Performance Measure Unit
6 Sales Executives of dealership/distributorship goes to customer as per his Efficiency
Market Coverage Plan and collects the customer information w CDB ( Customer Data Base ) size / SE Nos.
6 Customer Information is also sought during demonstration of TML new products w On- time updation of F001’s uploaded
2. Record Customer Information and Requirement in Customer Information Form ( F001) (SE)- in CRM Nos.
6 Sales Executive fills customer information in the prescribed form – F001 Effectiveness
(Customer Information Sheet ).
6 This form ( F001) primarily consists of key information related to customer such as Name,
address, Birthday, Phone, Income level, preferred financier, Fleet Size and Application, etc.
3. Compile and Update Data Base (SE/ DSM) -
6 Hard copies of all F001 forms are compiled at Dealership level and also updated in customer Sub process : Maintain Customer Database
module of the web-based CRM ( Customer Relationship Management) package. Sub Process Ref : CVBU-EL-12-04(version 1.1)
4. Maintain and Use Customer Data Base (SE/ DSM/ DAM) Process Owner : Dealer Account/Country
6 All SEs of dealership use the CDB while preparing costumer pipeline and Market Coverage Manager
Plan EPM Linkage – CVBU-EL- 12 ( Sales Planning)
6 CDB available in the system is used by SHQ for multi-purpose, e.g. sending mailer, new Frequency : Yearly / Monthly
product information to customers, Market Research etc. Preparation Date : 31/03/04
(Details in Brackets indicate involvement of various agencies) Modification Date : 31/03/05

31.3.2005 12.7
TATA Motors, CVBU After Sales Service

After Sales Service

EPM Process No: CVBU-EL-13

Locational Process Chiefs : Mr S M Sharma - Head (Customer Support)

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-13-01 Deliver Post- Sales Services RMs/ RSMs/ RPMs/ Channel Partners

CVBU-EL-13-02 Warranty & Free Service Handling Mr. S. Y. Deshpande

CVBU-EL-13-03 Spare Parts Management RMs/ RSMs/ RPMs/ Channel Partners

CVBU-EL-13-04 Complaint Management Mr. S. Y. Deshpande

31.3.2005 13.1
TATA Motors, CVBU After Sales Service

PROCESS DEFINITION SHEET

Process Identification No.(PIN) : CVBU-EL-13 Higher Level Linkage-


Process Title- After Sales Service Process Owner Mr S M Sharma Head (Customer Support)
Process Objective- Providing Efficient and Cost Effective After Sales Services
INPUT KEY STEPS OUTPUT
§ Divisional BSC Ø Set / Review Service Standards ü Efficient Delivery of Services
§ Service Processes and Service Standards Ø Work out segment and location-wise Channel Partner requirement ü Feedback to Product / Service Design
§ CSI (Customer Satisfaction Index) / DSI Ø Communicating Service Delivery Processes and Standards to Channel
(Dealer Satisfaction Index) Findings Partners
§ Channel Partner / Customer feedback Ø Providing Training Support
§ Competition and Benchmark Data Ø Deliver Services through Channel Partners
§ Segment wise customer requirement Ø Process Bills/ Claims
Ø Collection of feedback and resolve complaints
Ø Conduct Audits and Review performance
Ø Give feed back to Product/ Services Design

In - Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Response Time, Cycle time of Warranty Days. % Adherence to set Standards. Average time for Complaint Percentage /
Claim Settlement/ Bill Settlement Resolution / Claim Settlement / Bill Settlement / Repairs / Service No of days
Customer Complaints Nos. CSI and DSI Index, %
Divisions Involved - Service HQ, Regional Offices, NVB HQ
End Customer- Channel Partners and Customers of TATA Commercial Vehicles
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 7.5.1.8
Process Revision / Modification History
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification through process review Process Team

31.3.2005 13.2
TATA Motors, CVBU After Sales Service

Process Owner : Mr S M Sharma – Head (Customer Support)


Process objective : Provide Efficient and Cost Effective After Sales services

-Feedback to Product /
Services Design for
Improvement

-Review
-Provide Channel
-Assessment -Settle -Continue with
Communication Service to the Partner
-Set / Review of Resources Channel the Process
/ Training to Customer performance
KPIs / Standards required w.r.t. Partner’s Bills -Coduct
Channel (Free / paid / vis-à-vis
for Service region / and Claims periodic audit
Partners and Warranty) Need to
demographic -Aggregate No Channel
their -Collect & targets change
-Communicate coverage Service Partners
employees send customer -Analyse service
New process and desired Delivery -Analyse
regarding feedback RO Channel standards
new / revised Feedback Customer &
delivery of -Attend Partner ?
service standards from all Channel Partner
services customer feedback
Service HQ / regions feedback
complaints and take
Service HQ NVB HQ / centrally
ROs ROs corrective
/ NVB HQ Channel Service HQ /
action Service HQ / NVB HQ
Partner ROs NVB HQ
Yes

Inputs-
-Divisional BSC,
-Segmentwise Customer requirements.
-CSI / DSI Surveys,
-Feedback from Customer /
Channel Partner
-New services & Service Standards,
-Competition and Benchmark Data

31.3.2005 13.3
TATA Motors, CVBU Deliver Post - Sales Services

Inputs
w Policy on warranty, free service & Key Steps in sub- process - Outputs
repairs 'Deliver Post–Sales Services' w Repair / rectification of complaints
w Norms/ guidelines on infrastructure 1. Provide Free / Warranty services on customer vehicles
trained manpower 2. Provide Paid Services & Repairs w Maintenance service to customer
w Guidelines to channel partners 3. Gather Customer feedback vehicles
w Service interval info specific to each 4. Input on product performance & w Data on product performance &
model complaints to plant failures.
w Customer requirements.

How it operates (Methods/ Practices) Performance Measure Unit


1. Provide Free / Warranty Services – ( RMs / RSMs / RPMs / Channel Partners) Efficiency
6 Customer gets Free Service Coupons / Warranty Cards at the time of purchase of the vehicle w Repeat complaints %
including Terms and Conditions for the same. w Vehicle Turnaround time Hours
6 Channel Partners provide Free Service to the customers of commercial vehicles on receipt of Free
Service coupons. Parts if found failed under warranty, during warranty period is also replaced. Effectiveness
Complaints beyond warranty, scheduled services are attended on charge basis. w Improvement in CSI/ DSI %
w Increase in Service Market share %
6 Provide 24-hour toll-free assistance through CAC ( Customer Assistance Centre).
2. Provide Paid Services & Repairs- ( RMs / RSMs / RPMs / Channel Partners)
6 Following Services are provided to customers on Payment basis
# Annual Maintenance Contract Sub process : Deliver Post-Sales Services
Sub Process Ref : CVBU-EL-13-01
# All types of repairs on Tata vehicles
(version 1.1)
# Fitment of RECON Engines Process Owner : North – Mr. S Panigrahy,
3. Gather Customer feedback (Channel Partner / ASO) :- South – Mr. K C Sen
6 Channel Partner / Field Staff seek Customer feedback for transactional as well as and overall service East – Mr. P B Patro,
experience West – Mr. N J Shah
4. Input on product performance & complaints to plant EPM Linkage : CVBU-EL-13 ( After Sales
6 Channel partners provide feedback on product performance and complaints Services )
Preparation Date : 31/03/04
(Details in Brackets indicate involvement of various agencies)
Modification Date : 31/03/05

31.3.2005 13.4
TATA Motors, CVBU Warranty & Free Service Handling

Outputs
Key Steps in sub-process- w Acceptance / rejection of Warranty
Inputs 'Warranty & Free Service Handling' claim
w Tata Motors guidelines for Free 1. Set Guidelines on Warranty / Free Service w Replacement of failed parts
w Service / Warranty 2. Warranty Handling & delivery of FS by w Settlement of warranty claims & free
w Warranty claims & free service Channel Partners service bills Improvement in
bills through VCM 3. Scrutinize Warranty Claims & FS Bills customer satisfaction
4. Failed parts managements system w PPRs to plant for product
5. Conducting weekly warranty meetings improvements
w Improvement in dealer satisfaction

How it operates (Methods/ Practices)


1. Set Guidelines on Warranty / Free Service – (CS)
6 Customer Support set guidelines on ‘Warranty Terms and conditions’ for all products. These guidelines
are communicated to all Channel Partners through “Warranty Policy & Procedures Manual”, service
circulars and warranty wall charts
Performance Measure Unit
2. Warranty Handling & delivery of FS by Channel Partners – Efficiency
6 Channel Partners handle warranty on customer’s vehicle as per “Warranty Policy and Procedures w Average Warranty claim settlement No. of Days
w time Average FS bill settlement time No. of Days
Manual” & guidelines issued from time to time.
6 Channel Partners verify warranty period , raise claim through VCM, accept or reject the claim and send Effectiveness
to Central Warranty Cell at Thane, for further action
3. Scrutinize Warranty Claims & FS Bills w DSI - Satisfaction with warranty & FS bill Metric DSI score
6 Central Warranty Cell scrutinize the claims uploaded through VCM and credit note is generated for settlement
accepted claims .
6 ASO conducts warranty audits as per prevailing guidelines.
4. Failed Parts management system –
6 Channel partners pack failed parts and handover to inbound logistic partner for dispatch to respective Sub process : Warranty & free service handling
plant Service Office Sub Process Ref : CVBU-EL-13-02 (version 1.1)
5. Conduct weekly warranty meeting (RA/ MFM/ HVAL/ HVTL) Process Owner : Mr S Y Deshpande
6 Failed parts are presented in Weekly Warranty Committee meetings for ratifications of claims accepted EPM Linkage : CVBU-EL- 13 ( After Sales Services )
by channel partner and further analysis is carried out by the concerned CFT. Preparation Date : 31/03/04
Modification Date : 31/03/05
(Details in Brackets indicate involvement of various agencies)

31.3.2005 13.5
TATA Motors, CVBU Spare Parts Management

Inputs Key Steps in sub- process - Outputs


w Plant / Supplier capacity 'Spare Parts Management' w Network Reach
w Market survey date 1. Develop Market & Product Management w Enhanced Sales and Market
w Targets for Parts, Business 2. Procure Parts Shares of Tata Parts
and marketing 3. Fulfill Customer Orders w Control on spurious parts
4. Training of CP personnel w Competent staff at CP

How it operates (Methods/ Practices) Performance Measure Unit


1. Develop market and Product Management (PHQ) Efficiency
6 Parts HQ carry out Sales and Marketing of Parts using Market w % execution of orders in time %
Development, Channel Partner Management and Sales Planning processes, w Inventory (No. of days Sales) No. of Days
sub- processes and transactional process w No. of raids on spurious parts dealers/
2. Procure Parts (PHQ Procurement Group) Manufacturers Nos.
6 Parts are procured as per demand identified by various product groups
Effectiveness
6 In-house parts are ordered on respective plants while Bought parts are procured through w % increase in Market share %
Ancillary Suppliers w CSI on spares availability %
3. Fulfill customer orders (RWH)
6 Parts are stored at various warehouses and distributed to various destinations such as
Dealers and Distributors. Inventories are controlled as per guidelines. Customer
complaints, if any, are handled by field staff and/or forwarded to PHQ for further action Sub process : Spare Parts Management
Sub Process Ref : CVBU-EL-13-03 (version 1.1)
4. Training of CP personnel (RPMs)
Process Owner : RMs / RSMs / RPMs / Channel
6 RPMs identify training needs of CP personnel and provide relevant training inputs either
Partners
on site or at training location EPM Linkage – CVBU-EL- 13 ( After Sales Services )
(Details in Brackets indicate involvement of various agencies) Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 13.6
TATA Motors, CVBU Complaint Management

Key Steps in sub-process-


'Complaint Management'
1. Receive customer complaints Outputs
2. Register, acknowledge, assign for w Resolution of Complaints
Inputs resolution & close complaints with customer w Improvements identified for
w Customer Complaints 3. Analyze of product & non- product related implementation
complaints w Improvement in CSI/ DSI
4. Identify scope for Improvement & review
complaint management

How it operates (Methods/ Practices) Performance Measure Unit


1. Receive Customer Complaints (CAC)
Efficiency
6 Customer assistance Center receives product / non product related complaints through varied access
w Complaint acknowledgment time
mechanism, such as through MS- mail / letters, verbal, telephone, etc. Touch points for receiving
within 24 Hrs %
complaints are Dealer / TASS, AO, RO, HOs, SHQ, Mfg plants etc.
w Average complaint Resolution time No. of Days
2. Register, acknowledge, assign for resolution & close complaints with customer (CAC)
6 All complaints are registered in complaint management system on VCM, acknowledged in 24 hrs and Effectiveness
assigned to relevant agency for resolution. w CSI – Product parameters Index
6 Feedback given to customer on closure.
6 Complaints not resolved in target time are escalated to departmental heads.
3. Analysis of product and non- product related complaints (CAC) Sub process : Complaint Management
6 CAC analyse all complaints every month. Sub Process Ref : CVBU-EL-13-04 (version 1.1)
6 MIS on resolution time v/s targets is given to all departmental heads. Process Owner : Mr S Y Deshpande
6 Product related issues are sent to Mfg/ QA/ ERC for product improvement/ corrective action & EPM Linkage - CVBU-EL- 13
feedback received through MBPA, ICMs & letters. ( After Sales Services )
6 Non product related issues are sent to dept heads & followed up for corrective action. Preparation Date : 31/03/04
6 Feedback on improvements conveyed to customers through mass communication such as Service Modification Date : 31/03/05
Information, OK Tata, Channel Chat, etc.
4. Identify scope for improvement and review complaint management
6 Complaint management process is reviewed annually in the light of inputs from L&L approaches, CSI
study feedback and TBEM OFIs
(Details in Brackets indicate involvement of various agencies)

31.3.2005 13.7
TATA Motors, CVBU Facilities and Environment Management

Facilities and Environment Management


EPM Process No: CVBU-EL-14

Locational Process Chiefs: Locational Planning, Construction & Environment Heads

Principal Process Owner: Mr Z Sait - GM (Technical Services)

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-14-01 Organize and Upgrade Facilities Planning Head

CVBU-EL-14-02 Asset Management Planning Head

Locational Construction &


CVBU-EL-14-03 Create Infrastructure Plant Engineering Heads
Locational Construction &
CVBU-EL-14-04 Operate & Maintain Infrastructure
Plant Engineering Heads
Locational Head of Environment Dept./
CVBU-EL-14-05 Environment Management
Respective Process Owner

31.3.2005 14.1
TATA Motors, CVBU Facilities and Environment Management

PROCESS DEFINITION SHEET


Process Identification No. (PIN) CVBU- EL- 14 Higher Level Linkage-
Process Title- Facilities and Environment Management Process Owner Mr Z Sait GM (Technical Services)
Provide infrastructure facilities & Tooling to Plants and ensure compliance with Environment Policy
Process Objective-
and Statutory Requirement
INPUT KEY STEPS OUTPUT
§ Manufacturing Strategy Ø Review of existing facilities /Infrastructure/Tooling [ Facilities / Tooling for
§ Volume Forecast Ø Assess additional Requirement, 0btain Budget Approvals Production / Services
§ Process Flows Ø Design of New Facilities and Tooling [ Statutory Compliance
§ Quality and Environment Policy Ø Obtain Government Approval /Permission / License [ Environment Protection
§ ISO 14001 & ISO / TS 16949 requirements Ø Manufacturing / Procurement of Tooling and Equipments
§ Statutory Rules / Regulations Ø Construction and Installation of Facilities & Equipments
§ New Technologies Ø Operation and Maintenance of Facilities / Tooling /equipments
Ø Monitor Environment related parameters
Ø Get Facilities and Process audited
Ø Disposal of unserviable Facilities / Tooling /equipments

In-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Adherence to Schedule Percentage No of Facilities / Toolings provided No
Value of Quality parameters Various Value of Quality parameters for end products / effluent Various
Equipment Uptime and Environment Compliance with safety Statutory and Environmental
% %
Control Parameters Norms, SLA compliance
Stage wise Actual Vs Budgeted Costs Rs Cost of Toolings / Facilities / pm index Rs
Divisions Involved - Projects, Construction, Plant Engineering, Production / Tool Engineering
End Customer- Manufacturing and Community
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO /TS16949(2002) Clause Ref. 6.3
Process Revision / Modification History-
Date of Modfn. Modification No Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/03/05 01 Modification through process review Process Team

31.3.2005 14.2
TATA Motors, CVBU Facilities and Environment Management

Process Owner : Mr Z Sait GM (Technical Services)


Process objective : Provide infra-structural facilities and tooling to
Plants and ensure compliance with statutory requirements and Environmental Policy

-study available options Prepare detailed No


for optimum choice as design and budgetary
-Review existing per “Input”
infrastructure / facilities/ Estimate ESR Processing
-Prepare budgetary Submit proposal for
Tooling and Additional estimate approval Budgetary
-Assess additional facilities Yes -Obtain necessary Yes FACILITIES 1
approval
requirement required? statutory approval Const./Plant TOOLING 2
Project / Planning Engg./ES&C
Const./Plant Engg./
No ES&C/Safety/Env.Mgt.
Re-allocate
resource & -Construction of -Review and acquire O&M of
Inputs/Background- continue buildings, infra-structure Obtain post- resource for O & M of Facilities
-Manufacturing strategy -Procurement and commissioning facilities
-Processes Installation of Plant / approvals if Const./Plant
FACILITIES machinery / equipments Engg./ES&C/
-Volume forecast 1 required Const./Plant Eng./
-Quality and Safety/ Env. ES&C / Resp. Process
Environmental Policy Const./Plant Mgt Resp. Process owner Owner
-Rules and Regulations Engg./ES&C
-New Technologies Monitor equipment
-QMS / EMS Continue
performance as per
-OHS Manufacturing / Trouble-shooting/ QMS/EMS norms
No
Tool Design Procurement & Maintenance /Tools Const./Plant Engg.
Commissioning regrinding Equipment /ES&C/ Respective
Prodn. Engg. / Prodn.Engg./Tool due for Process Owner
TOOLING ToolEngg./ CEM/ Prodn.Engg./Tool Engg./Respective replacement?
2 Engg./Plng/CEM Process Owner
AutoTools Yes No
Yes Operational
gaps*?
Modify control procedures/ upgrade facilities
Disposal of the unserviceable tooling/facility as per EMS norms Const./Plant Engg./ES&C/ * Revealed during performance
Projects / Planning Respective Process Owner monitoring, audits,mock drills etc.

31.3.2005 14.3
Organize and Upgrade Facilities
TATA Motors, CVBU (Plant, Machines, Tooling, Equipments, Vehicles etc.)

Key Steps in -
Inputs 'Organize and Upgrade Facilities' Outputs
w Indents from Planning dept. / other 1. Compile requirements and seek capital budget
dept. for new facilities or up w Availability of facilities ( Plant,
approval Machines, Equipments,Tooling,
gradation of facilities.
2. Procure Bought out Facilities Vehicles etc.).
w New Product Introduction schedule
3. Procurement of tooling. w Up gradation of Tooling and Facilities
w Capacity enhancement plan
4. Install, Commission and Capitalize Facilities

How it operates (Methods/ Practices) Performance Measure Unit


1. Compile requirements and seek capital budget approval -
6 APL / Central Planning collect, collate and prioritise requirements from Planners / other dept. Efficiency
They compile requirements and forward to Corporate Planning for obtaining capital budget approval. 6 Adherence to schedule %
Capital budgets are approved by Board of Directors. APL / Central Planning communicate budget codes
to respective Planners / dept. Capital items procurement is approved by Corporate Planning, ED and Effectiveness
Plant Head as per delegated powers. 6 Budget V/s actual cost %
2. Procure bought out facilities –
6 Planners 1) contact manufacturers, seek quotations, selects machine / equipments and raise indents on
Purchase dept. for procurement of required facilities of Tooling. 2) prepare Executive Sanction Request (
ESR ), obtains price approval and handover to Purchase Agency. 3) Plan consultant’s service where
necessary. 4) Purchase dept. negotiates with Supplier, finalize terms, obtain approval & raise Purchase
Order. 5) Stores receives Bought out equipments and arranges to unload and unpack at required Sub process : Organize and Upgrade Facilities
location. Sub Process Ref : CVBU-EL-14 - 01 (version 1.0)
3. Procurement of Tooling– Process Owner : Z Sait GM ( Tech. Services)
6 Planners 1) raise indents on PE / CTR for in house manufacturing. 2) PE / CTR designs, manufacturers Linkage– CVBU-EL-14 ( Facilities &
and proves Tooling. 3) Planners coordinate with respective shop for tryout and handover tooling to Environment Managements )
indenter. Preparation Date : 31/03/04
4. Install, Commission and Capitalize Facilities– Modification Date : 31/03/05
6 Planners 1) prepare layout of production shop 2) raise contracts depending upon the need of installation
of facilities. 3) Construction and Plant Engineering arrange foundation work, electrical, plumbing and
pneumatic work 4) Machine / Equipment and Tooling are installed , commissioned by Supplier or by
Planning. These are tested and certified by Planning. A plant code is allotted for each facility and
information and is given to Finance for capitalizing through “ Asset

31.3.2005 14.4
TATA Motors, CVBU Asset Management

Outputs
Inputs w Updated Asset data base
w Asset data base Key Steps in- w Asset verification report
w Asset shifting advises 'Asset Management' w Disposal of obsolete / surplus
w Asset disposal proposals 1. Verification of assets Assets
w Manufacturer’s 2. Maintain Assets
Guidelines 3. Disposal of Assets

How it operates (Methods/ Practices)


1. Verification of Assets –
6 On the basis of available asset list , physical verification of assets are carried out at as per
schedule through agencies like factories , MPL&P , Finance etc. Performance Measure Unit
2. Maintain assets–
6 Planning dept. of respective division is responsible for 1) annual statutory certification Efficiency
wherever applicable 2) annual verification of assets & submit report 3) arrange to provide 6 Adherence to asset verification schedule %
usage confirmation to Finance wherever applicable 4) upkeep of assets 5) maintain Effectiveness
assets as per maintenance plan and Manufacturer’s guidelines through concerned 6 Physical assets V/s Assets in Master %
maintenance dept.(Refer Sub-process CVBU-EL-11-06) 6) documentation & record
change of assets which are shifted from one place to another.7) identify obsolete / non
economical assets & recommend for disposal
3. Disposal of assets – Sub process : Asset Management
6 Custodian / User forwards list of obsolete/ surplus assets to planning. Planning examines Sub Process Ref : CVBU-EL-14- 02 (version 1.0)
Process Owner : Z Sait GM ( Tech. Services)
if assets can be put to alternate use. After confirming that assets are obsolete / surplus,
Linkage – CVBU-EL-14 ( Facilities &
Central Planning prepare asset disposal proposal & forward to Finance with back up. Environment Management )
Obtain corporate approval for disposal of asset through Finance. Arrange auction of an Preparation Date : 31/03/04
asset through auctioning agency through MPL &P. After auction is completed , asset Modification Date : 31/03/05
database is updated by Finance

31.3.2005 14.5
Create Infrastructure
TATA Motors, CVBU (Bldg., Water Supply, Sanitation, Electricity, Telephone Network)

Inputs Key Steps in-


w Indent from User divisions for up 'Create Infrastructure'
gradation of infrastructure. 1. Need identification &
w New projects from Planning / NPI requirement finalization Outputs
w Capacity enhancement plan 2. Designing of infrastructure w New Infrastructure/
w Statutory, environmental and 3. Execute work through contracts Improvement in infrastructure
Safety requirements. 4. Seek NOC and handover

How it operates (Methods/ Practices) Performance Measure Unit


1. Need identification & requirement finalization - Efficiency
6 Construction & Plant Engineering review infrastructure requirement based on user feedback,
6 Adherence to schedule %
new project requirements and capacity enhancement plans of NPI/Central planning. They workout
Capital budget requirement and seek capital budget approval for optimum option through central Effectiveness
planning ( JSR & LKO ) / APL ( Pune ). Based on approved budget, Construction & Plant Engineering 6 Variance w.r.t. budget %
decide the project plans. 6 No of key deliverables achieved %
2. Designing of infrastructure
6 Construction & Plant Engineering prepare design of infrastructure and seek approval of concerned
indenting divisions and government agencies. Help of external consultants is taken wherever
required. Sub process : Create Infrastructure
3. Execute work through contracts – Sub Process Ref : CVBU-EL-14- 03 (version 1.0)
6 For approved designs, capital budget codes are obtained for various items in the project. In case of Process Owner : Locational Construction &
repairs and modifications, approval of ED / Plant Head is taken by concerned indenters as per Plant Engineering Heads
delegated powers. Annual rate contracts are finalized with contractors for repetitive items. Capital EPM Linkage – CVBU-EL-14 ( Facilities & Environ.
items are selected by giving due weightage to environmental norms, through ESR process. Management )
Infrastructure work such as construction of road, buildings, electrical installations, plumbing etc. is Preparation Date : 31/03/04
executed through contractor.
Modification Date : 31/03/05
4. Seek NOC and handover –
6 Construction & Plant Engineering obtains NOC approvals from concerned local / state government
agencies (Municipal Corporation, MIDC, Electricity Board, Factory Inspectorate, etc). After
obtaining approval, facilities are handed over to concerned indenters for use. Wherever required
help of concerned department is taken for coordination with government agencies.

31.3.2005 14.6
TATA Motors, CVBU Operate & Maintain infrastructure

Inputs
Operate
Key Steps in – Outputs
w Operational requirements of Users
'Operate & Maintain infrastructure' w Uninterrupted service to offices /
w Regulatory requirements ( Pollution
1. Assess / review resource requirements
Control, Safety norms, Electricity plants
2. Off-loading or on-loading decision
Rules etc. ) w Government approvals
3. Organize resources
Maintenance
4. Operate and maintain facilities w Customer’s satisfaction
w Break down reports or User complaints
5. Audit by Government agencies
w Preventive maintenance requirements
w Regulatory requirements

How it operates (Methods/ Practices) Performance Measure Unit


6 Construction maintains Plant, Roads and immovable assets and Plant Engineering operate and maintains Efficiency
other infrastructure like Water, Electric, Air supply, generator house, Telephones, oil reclamation etc. 6 Uptime No of hours
1. Assess / review resource requirements - 6 Zero accidents No of accidents
Construction and Plant Engineering take annual review, estimate volume of annual activities, estimate
resource requirements like men, money and equipments and assess skill requirements. Effectiveness
2. Off-loading or on-loading decision - 6 No. of Non Conformity Reports No. of NCRs
(NCRs) raised in external Audits
6 Construction and Plant Engineering 1) Assess in-house capability and knowledge / skill availability
6 Renewal of licenses before expiry No of licenses
2) identify vendors & get quotations 3) compare in-house operational / maintenance cost vs outsourcing cost
renewed beyond
4)Take off-loading or on-loading decision based on optimum cost.
expiry
3. Organize resources–
6 1) obtain capital / revenue budget approval and reallocate 2) in case of outsourcing raise contracts on
prospective contractors based on their past performance 3) raise indent on Purchase dept. for material Sub process : Operate & Maintain
procurement. infrastructure
4. Operate and maintain facilities - Sub Process Ref : CVBU-EL-14- 04 (version 1.0)
6 1) Prepare shift schedule 2) provide services to users as per schedule 3) attend customer complaints 4) prepare Process Owner : Locational Construction &
preventive maintenance plan 5) Inventory Management. Plant Engineering Heads
5. Audit by Government agencies – EPM Linkage – CVBU-EL-14 ( Facilities &
6 1) Organize audit of government agencies 2) Get infrastructure audited from Government agencies as per Environment Management )
statutory norms 3) Get licenses renewed before expiry Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 14.7
TATA Motors, CVBU Environment Management

Key Steps in-


'Environment Management' Outputs
Inputs 1. Assess the significant environmental w Improvements in environmental
w Quality & Environmental Policy aspects of products and activities performance (e.g.: reduction in
w Rules & Regulations 2. Set ‘Control Processes’ and ‘Objectives & pollution; e.g.: reduction in natural
w Plant level waste disposal guidelines Targets’ resource consumption; e.g.:
w ISO:14001 3. Deploy the process and implement elimination of hazardous
w New developments ‘Action Plans’ to achieve ‘Objectives & Targets’ material etc.)
4. Review processes for improvements / and w Compliance to environmental
conduct internal / external audits requirements as per statutory norms

How it operates (Methods/ Practices) Performance Measure Unit


[Cross Ref.: EMS Manual at respective locations]
Efficiency
1. Assess the ‘significant’ environmental aspects of products and activities as per established EMS procedures-
6 Improvement over previous years
6 All Process Owners identify the ‘significant’ environmental aspects of products and activities with the help
‘environmental performance’
of ERC centrally & Environment Group at respective Works locations.
2. Define Operational Controls, Emergency Action Plans and set ‘Objectives and Targets’ Effectiveness
6 Operational Control Procedures and Emergency Action Plans are established and deployed. Process 6 Environmental measurements within No.
requirements are assessed in line with volume and quality requirements. applicable statutory norms
Action Plans are set to achieve environmental ‘Objectives & Targets’ after ensuring availability of 6 No. of Non Conformity Reports (NCRs) No. of NCRs
resources raised in external EMS Audits
3. System Monitoring–
6 System performance measures are identified, periodically monitored, reported and analysed for
feedback and corrective actions.
6 Environment Group at respective Works locations coordinates conduct of internal external audits as per Sub process : Environment Management
pre-defined schedule. Corrective and preventive actions are taken by concerned Process Owner and Sub Process Ref : CVBU-EL-14 - 05
shared Process Owner : Loc. Head of Env. Dept.
4. Review processes for improvements– Operational Owner : Respective Process Owners
6 The established EMS is reviewed periodically by Plant Heads at all Works locations to provide direction EPM Linkage– CVBU-EL-14 ( Facilities &
and resources as necessary for ‘continual improvement’ of the EMS. Environment Management )
6 Manuals / procedures / work instructions are reviewed and updated in line with changes in statutory Preparation Date : 31/ 03/04
requirements and other inputs and the changes are communicated to all concerned. Revision Date : 31/03/ 05

31.3.2005 14.8
TATA Motors, CVBU Human Resource Management

Human Resource Management

EPM Process No: CVBU-EL-15

Principal Process Owner : Mr P P Kadle - ED (Finance and Corporate Affairs)

Sub_Proc No Sub Process Name Sub_Process Owner

Mr M. B. Paralkar, Mr. N. K. Dutt,


CVBU-EL-15-01 Develop & Manage H R Strategies
Mr. J. Khursigara, Mr. Mayukh Maiti

CVBU-EL-15-02 Manage Industrial Relations Mr M B Paralkar and locational IR heads

CVBU-EL-15-03 Manage Family Size Mr M. B. Paralkar, Mr. Mayukh Maiti

CVBU-EL-15-04 Learning and Development Mr.N K Dutt and locational training/MPD heads

CVBU-EL-15-05 Performance Management System Mr M B Paralkar and locational HR heads

CVBU-EL-15-06 Succession Planning Mr. Mayukh Maiti

Mr. S. V. Raje, Mr. D. Sengupta,


CVBU-EL-15-07 Manage Employee Welfare
Mr. L. Samanta, Mr. D. Deshpande

CVBU-EL-15-08 Employee and Organisational Survey Mr. Mayukh Maiti

31.3.2005 15.1
TATA Motors, CVBU Human Resource Management

Process Definition Sheet


Process Identification No.(PIN) : CVBU-EL-15 Higher Level Linkage-
Process Title- Human Resource Management Process Owner Mr. P. P. Kadle (ED, Finance & Corporate Affairs)
Source and enhance Human Capital, Attract and retain talent, Create and maintain culture of High Performance,
Process Objective-
Improve Quality of Life of employees
INPUT KEY STEPS OUTPUT
§ CVBU Strategy Ø Revisit HR Policies, Set Goals, Develop Initiatives [ Competent, motivated and satisfied
§ Business Plan and assign responsibilities employees in required strength
§ Industry Environment Ø Acquire and allocate Resources [ Culture of High Performance
§ Statutory/ Legal Requirement Ø Manage Business Unit wise Corporate HR and Budget Proposal
§ GEO- HR Guidelines Plant HR Services
§ Skill-gap Analysis Ø Performance Review
§ Feedback from Surveys, Communication sessions, Ø Annual Review and Budgeting for the Next Year
Appeals, Hotline and interaction with Unions
§ Feedback from Partners (Educational Institutions,
Faculty Members, Trainers, etc.) Third Party Survey
Findings
§ Tata Group Guidelines
In-Process / Efficiency Measure Unit of Measure Output Measure / End Measure Unit of Measure
On-time Services Adherence to Plan Employee Satisfaction Index Index, %
Fulfillment of HR demands Adherence to Plan Attrition Rate, Safety Index % / Index
Man-days Lost, Absenteeism No/percentage Value Added per unit Wage Bill Ratio
Budget Vs. Actual Employee Cost Rs
Divisions Involved - Corporate HR and Locational HR, Productivity Services
End Customer- All CVBU Employees , Functional Heads
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS 16949 Reference- 6.2
Process Revision / Modification History-
Date of Modfn. Modn No. Details of Modification Modified by Approved By
01/06/03 00 New Release BES, Pune
31/3/05 01 Modification through process review Process Team

31.3.2005 15.2
TATA Motors, CVBU Human Resource Management

Manage Corporate HR services- Process Owner : Mr P P Kadle ED (Fin & Corp Affairs)
Process objective : Source and enhance Human Capital.
w HR Service for Corporate offices, Attract and retain talent,Create and
Regional & Area offices maintain culture of High Performance,
(similar to that for the Plants) Improve Quality of Life of employee.
w Compensation Management for TM and
-Review and -Acquire and EG grade officers of all the locations Outputs-
Finalise HR allocate Guidelines/mandate to Loc HR for -Motivated &
Policies, Set Resources Compensation of S & below Grades competent work
Targets w Asses Work level of Sr. Officer Budget
force as per requirement
w Organization Development -ESI and Drivers of Proposal
-Develop w Special training programs for TM and Satisfaction/
Initiatives and w EG Grades of all the location Dissatisfaction
Assign Head- Head Corp.HR
Responsibilities Corporate HR

HR Council
Manage HR /IR Services at resp. plants Periodic Review of
performance and Annual Review and
w Manage Family Size (Recruitment & Placement, reallocate Resource Budget
Opt-sizing and Separations) Resource Preparation
w Productivity Services - Manpower Planning, job
Evaluation, Productivity Measurement through PSD Head - Corp. HR HR Council
Inputs- w Manage Industrial Relations
-CVBU Strategy w Manage safety
-Business Plan w Employee Training and Development
Budget Approval -Statutory w Manage Employee Welfare Services (Transport,
Continue with
requirements -Tata Group Canteen, Housing, Medical, Cumminity
Process
Gudelines Centres etc)
-Industry Environment w Performance Mgt(PMS) *Talent/Potential
-OHS feedback Management, Compensation
-Third party survey Management
findings w Manage Employee Database
Conduct OHS

Resp Plant HR

31.3.2005 15.3
TATA Motors, CVBU Develop & Manage HR Strategies

Inputs
w HR vision, mission,
Key Steps in-
w Tata Motors long term and short term
'Develop & manage HR Strategies' Outputs
w Business plan & Objectives.
w Industry climate
1. Revisit HR Vision & Mission w HR Vision & Mission
w Statutory/ legal requirements.
2. Strategic Analysis w HR strategies and policies
w Group HR directives
3. Develop Long term and Short term Plan. w CVBU, HR BSC
w Employee feedback through surveys
4. Develop action plans and BSCs and w Plant HR BSC
Internal Customer’s expectations
seek budget approvals w HR Initiatives
5. Implement & Review HR plans and Policies
and feed back
w Current HR capabilities

How it operates (Methods/ Practices)


Performance Measure Unit
1. At the beginning of every year HR steering Committee revisits HR vision & Efficiency
Mission and redefines, if necessary, to align it with CVBU & PCBU 6 Adherence to time frame %
2. Inputs are analyzed to ascertain SWOTs and resource adequacy
3. HR steering Committee / Council develops Short term and long term HR Plans Effectiveness
and Policies to support CVBU’s business Plan. 6 Achievement of HR objectives. %
4. Corp and Location HR Steering committees develop BSCs. Identify initiatives and
assign responsibility. Location HR and Corporate HR review resource requirement
and seek budget approvals
5. Respective location HR heads and HR Initiative owners implement HR Plans and Sub process : Develop & manage HR
policies. Implementation of HR Plans and polices is reviewed through strategies
SQDCM review, HR BSC reviews and CVBU BSC reviews. Sub Process Ref : CVBU-EL-15- 01(version 1.1)
Process Owner : Mr M. B. Paralkar, Mr. N. K.
Dutt, Mr. J. Khursigara, Mr.
Mayukh Maiti
EPM Linkage : CVBU-EL-15 (Human
Resource Management)
Preparation Date : 31/01/04
Modification Date : 31/01/05

31.3.2005 15.4
TATA Motors, CVBU Manage Industrial Relations

Key steps in –
'Manage Industrial Relations'
Inputs Outputs
1. Create structure for managing IR
w HR policies HR Strategy w Better understanding between
2. Collective bargaining and good relationship with
w Model standing order Management, Union &
union.
w Workmen related acts employees.
3. Produce career growth opportunities
w Union w Disciplined work environment
4. Foster co-operation and manage employee
welfare

How it works.(Support Processes, Procedures& Methods) Performance Measure Unit


1. IR is managed through structure of Plant IRC / JDC , divisional IRC, Efficiency
Grievances committee and HR personnel acting as contact point for w Adherence to wage settlement plan % adherence
each division. w Adherence to meeting schedule &
2. Nurture healthy relations by regular meetings and collective bargaining resolution of problems
with union. Resolve the issues raised by bargainable employees or
union as per schedule. Effectiveness
3. Create various structures for career growth of bargainable employees w Adherence to IR issues resolved against target % adherence
such as SVCVP, Bargainable to S scheme, Master craftsman / w compliance (Factory Acts & Labor Laws) % compliance
Mechatronics scheme, Linkage of quality contribution to salary etc. w Man days lost due to IR problems Nos.
4. Encourage bargainable employees to participate in SDTs/ SGAs and
take the team leadership positions fostering co-operation. Collectively
find and improve work environment and conditions. Provide guidance to Sub process : Manage Industrial Relations
motivate and improve bargainable employee morale. Sub Process Ref : CVBU-EL-15- 02 (version 1.1)
Process Owner : Mr M B Paralkar and locational IR heads
EPM Linkage– CVBU-EL-15 (Human Resource Management)
Preparation Date : 31/03/04
Modification Date : 31/01/05

31.3.2005 15.5
TATA Motors, CVBU Manage Family Size

Inputs Key steps in-


w HR Plans 'Manage Family Size'
w Sales / production plan and Outputs
1. Review / Assess manpower requirement
productivity targets w Competent employees in required
and arrive at net shortage / excesses
w New project requirement strength.
( Gross / function / Department)
w Job Profiles w Work reorganisation proposals
2. Redistribution of manpower
w Current manpower w Offloading proposals
3. Manage additional requirement and
surpluses

How it operates (Methods/ Practices) Performance Measure Unit


1. Manpower requirement of various functions / departments is reviewed every Efficiency
year based on sales / production plan, productivity targets and new technology 6 Budget Vs. actual employee cost Rs
introduction plan. Explorer opportunities for offloading. Derive shortages / 6 Cost and cycle time of recruitment Months
excesses and work reorganisation.
2. Manpower deployment to needy areas to bridge, the gap between manpower Effectiveness
available and required, identify the persons for deployment on the basis of 6 Overall productivity Value added /
suitability of new jobs. Arrange training/retraining through HR (training) as per 6 Recruitment from premium unit wage bill,
requirement. institutes % recruitment
3. Manage additional requirement through i) Contract / Offloading ii) Recruitment of
temporaries iii) Cadre recruitment iv) External recruitment Sub process : Manage Family Size
3a. Launch early separation schemes for downsizing as per need. Sub Process Ref : CVBU-EL-15-03 (version 1.1)
Process Owner : Mr M. B. Paralkar,
Mr. Mayukh Maiti
EPM Linkage – CVBU-EL-15 (Human
Resource Management)
Preparation Date : 31/03/04
Modification Date : 31/01/05

31.3.2005 15.6
TATA Motors, CVBU Learning and Development

Key Steps in-


Inputs 'Learning and development' Outputs
w CIRO analysis, CVBU strategic 1. Identify training needs w Fulfillment of identified training
objectives, HR plan 2. Design training plan needs
w Training Effectiveness Initiatives 3. Design / modify training programs w Trained employees
analysis 4. Delivery of training programs
5. Evaluation of the programs

How it operates (Methods/ Practices) Performance Measure Unit


1. Training needs are identified by top management and survey is conducted at the Efficiency
divisional level to collect individual needs from various divisions. w Training mandays / employee / year Nos.
2. Training plan is designed, convenient schedules for training are decided and annual
training calendar is prepared.
3. Training and MPD analyses the training requirement received and plan training Effectiveness
programs. Training programs are designed in consultation with appropriate w CIRO I. Score
agencies. w CIRO II .
4. In house programs are planned and calendar is circulated to all the divisions for
sending ominations. Training is imparted through internal faculty as well as by
Sub process : Learning and
external experts. Employees are also nominated for training programs, seminars
development
organised by outside institute.
Sub Process Ref : CVBU-EL-15- 04
5. Effectiveness of the training is measured as a reaction of training through CIRO I for
(Version 1.1)
all training programs and after 3 months for key programs.
Process Owner : Mr.N K Dutt and
locational training
/MPD heads
EPM Linkage – CVBU-EL-15 (Human
Resource Management)
Preparation Date : 31/03/04
Modification Date : 31/01/05

31.3.2005 15.7
TATA Motors, CVBU Performance Management System

Key Steps in-


'Performance management system'
1. Set the Major performance areas and Outputs
Inputs w Identification of training and
w BU BSC/Plant BSC/Div. BSC/ Targets at the individual level and identify the
development needs. development needs
CX/Dept BSC as applicable to an w High performance culture and
employee 2. Conduct Mid year review
3. Conduct Final review at end of the year. motivated employees
w Reward / Compensation Policies w Career planning and succession
w Competency Maps and job profile 4. Arrive at overall performance/potential rating
and carry out normalisation. planning
5. Decide on rewards and compensation

How it operates (Methods/ Practices) Performance Measure Unit


1. Decide the Major performance areas and their linkage with the higher level BSC / objectives for each EG/M/S employees at Efficiency
the beginning of the financial year w Adherence to PMS schedule % adherence
ii) Assign weight age factors/difficulty levels to all MPAs
iii) Set the metric and stretch targets w.r.t. objectives Effectiveness
iv) Identify training and development needs w Goodness of fit Degree of fit
v) Fill up the standard PMS form in consultation with the superior
1a. I) Compare the GAP between targets and actual performance at the end of the 6 months by discussion between employee
and superior
Sub process : Performance
ii) Analyses the GAPs in expected performance
management system
iii) Arrange resources if required
Sub Process Ref : CVBU-EL-15- 05
iv) Provide performance feedback
(version 1.1)
2. Carry out mid course corrections if necessary after discussion between employee and superior. Review the performance
Process Owner : Mr M B Paralkar and
and take corrective actions for improvement
locational HR heads
3. Carry out performance appraisal of individual employee by his superior in second half of the financial year and conduct review by
EPM Linkage – CVBU-EL-15 (Human
respective divisional heads.
Resource Management)
4. I) Arrive at overall performance rating, carry out norm alisation.
Preparation Date : 31/03/04
ii) Identify consistent high performers as inputs to various processes like ‘Talent Mgmt. Process’ and for premium training
Modification Date : 31/01/05
programs.
iii) Deselect the consistent low performers
5. Decide rewards / compensation depending upon the performance rating, grade and overall performance of the company.

31.3.2005 15.8
TATA Motors, CVBU Succession Planning

Key steps in -
'Succession Planning'
Inputs 1. Identify positions for succession planning. Outputs
w PMS, TWL, Talent 2. Identify competencies required for the w Identified successors for
management analysis successors. key positions.
3. Identify / Review probable candidates
4. Develop successors and monitor readiness.

How it works.(Support Processes, Procedures& Methods) Performance Measure Unit


1. Senior executive positions which require successors are identified. Efficiency
2. Competencies for the successors are identified through work level w positions with identified
study and discussions with concerned executive or his superior. successors. Nos.
3. Potential candidates are identified by taking inputs from PMS, TWL
& Talent Management followed by collecting two names of Effectiveness
successors from top 100 high performers. w EG positions mapped % positions mapped
4. Performance of successors are monitored through PMS and rating w Identified successors
is given as ‘At par’ or ‘ Below level’. suitable development plan is taking key positions Nos.
applied depending upon the rating in both cases.
4a. Pen portrait matching is carried out and readiness / migration paths
are tracked through colour coding system.
Best Fit candidate is selected as successor. Sub process : Succession Planning
Sub Process Ref : CVBU-EL-15- 06 (version 1.1)
Process Owner : Mr. Mayukh Maiti
EPM Linkage – CVBU-EL-15 (Human
Resource Management)
Preparation Date : 31/03/04
Modification Date : 31/01/05

31.3.2005 15.9
TATA Motors, CVBU Manage Employee Welfare

Inputs
Key Steps in- Outputs
w HR policies
'Manage employee welfare' w Welfare services
w Regulatory norms
1. Identify welfare service requirements. w Identified Successors for key
w Expressed and implied needs of
2. Design welfare services. positions.
employees requirements.
3. Provide welfare services
w Budget
4. Collect feedback analyse and improve

How it operates (Methods/ Practices) Performance Measure Unit


1. Welfare requirements are identified by corporate and locational HR based on needs Efficiency
expressed by union / employees, geographical location, category of employees / w Budgeted vs. actual expenses. Rs.
gender and statutory requirements.
Effectiveness
2. Services are designed so as to provide services at minimum possible cost , wherever
w Improvement in employee Survey
required employee / union views are considered. E.g. Bus routes, location of
satisfaction. score
recreation centers.
3. Services are provided through locational administration department.
Following services are provided :
Transport facility, interest free festival loans, crèche, maternity leave, housing loans, Sub process : Manage Employee welfare
study leave, public holidays, health care facility, recreation centers, accommodation, Sub Process Ref : CVBU - EL - 15 - 07 (version 1.1)
schools for employee wards conservation services etc. Process Owner : Mr. S. V. Raje, Mr. D. Sengupta,
4. Employee feedback is collected through various surveys and interactions. Service Mr. L. Samanta, Mr. D. Deshpande
providers feedback is also collected through interactions. Actions are taken for EPM Linkage – CVBU-EL-15 (Human
improvement. Resource Management)
Preparation Date : 31/03/04

31.3.2005 15.10
TATA Motors, CVBU Employee and organisational survey

Key Steps in-


'Employee and organisational survey'
1. Shortlist issues impacting employee satisfaction
Inputs 2. Improve questionnaire Outputs
w HR Policies 3. Administer questionnaire w Employee satisfaction index.
w Employee feedbacks 4. Analyse employee category-wise responses w ST and LT action plans
w New strategic initiatives 5. Communicate results to management and at all
locations.
6. Develop action plans to drive improvements
based on feedback

How it operates (Methods/ Practices) Performance Measure Unit


1. Draft questionnaire designed by capturing employee feedback regarding issues Efficiency
concerning employees at all levels. w Employee and organizational survey
2. Improve the questionnaire based on the feedback and finalize the questionnaire. execution and coverage plan % Adherence
Develop questionnaires as per language convenience for all the three category of
Effectiveness
employees.
w Issues addressed through the
3. Administer the questionnaire as per survey execution plan at all plants / non-plant
action plan %
locations
4. Collate and analyses categoriwise response. Derive important attributes of employee
satisfaction.
Sub process : Employee and organisational
5. Share results with Steering committee, functional heads and further cascade down
survey
through interactive communication sessions.
Sub Process Ref : CVBU-EL-15-08 (version 1.1)
6. Design action plan to improve important parameters.
Process Owner : Mr. Mayukh Maiti
EPM Linkage– CVBU-EL-15 (Human
Resource Management)
Preparation Date : 31/03/04
Modification Date : 31/03/05

31.3.2005 15.11
TATA Motors, CVBU Information and Knowledge Management

Information and Knowledge Management

EPM Process No: CVBU-EL-16

Principal Process Owner : Mr Probir Mitra GM (Chief Information Officer)

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-16-01 Information Resource Management CIO supported by TTL Project Heads

CVBU-EL-16-02 Manage Support System CIO supported by TTL Project Heads

CVBU-EL-16-03 Manage System Security CIO supported by TTL Project Heads

CVBU-EL-16-04 Manage Information Storage & Retrieval CIO supported by TTL Project Heads

CVBU-EL-16-05 Manage Facilities & Network Operations CIO supported by TTL Project Heads

CVBU-EL-16-06 Manage Information Services CIO supported by TTL Project Heads

CVBU-EL-16-07 Manage Information Audit CIO supported by TTL Project Heads

CVBU-EL-16-08 Knowledge Management Functional Heads/ Process Owners

31.3.2005 16.1
TATA Motors, CVBU Information and Knowledge Management

PROCESS DEFINITION SHEET

Process Identification No.(PIN) : CVBU- EL- 16 Higher Level Linkage-


Process Title- Mr Probir Mitra
Information and Knowledge Management Process Owner GM (Chief Information Officer)
Process Objective- Systematize Data collection , analysis and reporting of data, Systimatic Sharing of Knowledge
INPUT KEY STEPS OUTPUT
§ Business Strategy & Key Initiatives Ø Ascertain Information needs ü Predefined user deliverables
§ Business Thrust areas Ø Establish Data Sources ü Information for decision support.
§ Business Transaction Processes Ø Feasibility Study for IT Support ü Data warehouse
Ø Procurement of required Hard ware/ Software through TTL
§ Key Performance Measures and Indicators Ø Development/ customization of software Achieved & Backed up data
§ Key control measures Ø Testing and User training ü Knowledge repositories for knowledge
§ Statutory /Business Requirements Ø Implementation and maintenance of system sharing
IT support Infrastructure Ø Periodic review and Up gradation of hardware/
§ Focus areas for knowledge management Network/software /Applications support
Ø Create knowledge repositories, encourage sharing & learning
In-Process/ Efficiency Measure Unit of Measure Output Measure / End Measure Unit of Measure
Time to Develop System Days Net Work/ Server Up time Percentage
System up time and response time Percentage Customer Satisfaction surveys by TTL Index
SLA's between TTL and Users Index TTL Cost Rs. Crs.
Divisions Involved - Divisions using Legacy/SAP-ERP and TTL
End Customer- Functional/ Divisional Heads
Core Values Embedded- Integrity, Customer focus, Passion for Engineering
ISO / TS16949(2002) Clause Ref. 8.4
Process review and Improvement / Modification History-
Date of Modfn. Modification No. Details of Modification Modified by Approved By
01/06/03 00 New Release BES, Pune

31.3.2005 16.2
TATA Motors, CVBU Information and Knowledge Management

Establish Rapo Develop /


and channel customize
Process Owner application
software /
Study Feasibility
Identify Data/ Develop
Yes of meeting User/ New / Up -
Define Information Information / No IT tenabled
Audit Review gradation of Hard
and knowledge Knowledge repositories etc
requirements Hardware / Ware / Software
Requirements in Sources, and test to
through existing software required?
terms of contents storage and confirm that it
computerised requirements
and Periodicity retrieval External No meets
system (SAP/
needs Source requirement
Legacy/ VCM/ CIO
Business
DENIS/
Process Owner Process Yes TTL & USER
MAPS etc.)
Owner
CIO
Revisit concerned
Inputs - Seek budget processes/
approval and procedures
- Information on Cost - Benefit Yes Procure/ Upgrade and redefine if
KPM’s of CVBU analysis Hard wares necessary
Planning / favorable software
Inputs -
Forecasting/ Decision Requirement Inputs - Process Owner
Making, monitoring & for new - Transaction/ CIO
controlling processes computerised data Volume
- No of Uses No
(Output, variations, system Train and motivate
System Requirement

trend / comparisons / - 3 yrs It - User Locations Develop manual/ Users and


Strategy of - New system PC based system. Implement system
bench Marks etc)
CVBU requirements
Employees
Process Owner
Vendors, channel Process Owner / CIO
Partners and
Investors/ Financiers - User
Feedback Monitor and
- Statutory No Performance
Requirement OK? review system
Focus areas for performance
System Audit
Knowledge Management
Yes
Continue Internal Audit Process Owner & CIO

31.3.2005 16.3
TATA Motors, CVBU Information Resource Management

Inputs Key Steps in-


w Business strategies & Key initiatives 'Information Resource Management'
w Knowledge of Business Processes 1. Derive requirements from business strategies Outputs
w Recommendations (by TTL) from IT (IT Roadmap) w Enterprise system architecture
perspective 2. Define Enterprise System Architectures w Enterprise data standards
w User Requirements & Justifications 3. Plan and forecast information technologies/ w Enterprise quality standards
w Statutory requirements methodologies required w IT Roadmap
w Tata code of conduct 4. Establish enterprise data standards w Investment proposal (Capex)
w Previous audit recommendations 5. Establish quality standards and controls
Benchmarks

How it operates (Methods/ Practices) Performance Measure Unit


1. Derive requirements from business strategies Efficiency
Understand the business processes w Adherence to Schedule for key projects %
Requirement identification and analysis
Consolidate and formulate IT Roadmap w Adherence to Budgets for key projects %
2.Define enterprise systems architecture
Take a stock of existing resources and IT trends
Define the hardware / software requirements Effectiveness
3.Plan and forecast information technologies / methodologies
Decide the different possible IT tools for delivering the desired data and
information Sub process : Information Resource
Scan the technological developments
Prepare Investment Proposal/s (Capital Expenditure – Capex) Management
4. Establish enterprise data standards Sub Process Ref: CVBU-EL-16-01 (version 1.1)
Server operating system ( Unix / Linux …) Process Owner : CIO supported by TTL Project
Databases (Oracle, SQL Server …) Heads
Networking (fast Ethernet,FDDI / Gigabit …)
EPM Linkage – CVBU-EL-16( Information &
Desktop (Windows XP / 2000 / NT …)
Exchange Server (2003) Knowledge Management)
Virus control (Mc Affee / Norton ) Preparation Date : 31/12/04
5. Establish quality standards and controls Modification Date : 31/12/05
Software development standards (SDLC Processes as per ISO, CMMI…..)
Information Security Policy
Hardware standards as per the Application / Project Req’s

31.3.2005 16.4
TATA Motors, CVBU IT Governance

Key Steps in- Outputs


Inputs 'IT Governance Focus' w ROI
w Business strategies & Key 1. Be driven by stakeholders value w Risk Managemennt
initiatives 2. Adopt an Governance Framework w Enhanced reputation due to
w Knowledge of Business 3. Focus of its certifications
Processes 6 Strategic Alignment w Stakeholders Trust
w Understanding Technology 6 Value Delivery w Automation
trends 6 IT Asset Management w Enterprize architecture
w Benchmarks 6 Risk Management w Roles and responsibility defined

How it operates (Methods/ Practices)


1.Be Driven by Stakeholder value
6 Identify the Stakeholders and understand their expectation
6 Benchmark with industry Performance Measure Unit
2. Adopt an IT Governance Focus Efficiency
6 Implement COBIT and obtain BS 7799 certification w Availability of System and Services
3. Strategic Allignment w Stakeholders perception of IT Services
6 Allign IT with the business and its goal
w Throughput and Response time
6 Provide a flexible, integrated information infra structure to support business strategies.
6 Be an agent of change enabling business transformation Effectiveness
6 Educating and communicating with IS users w Decrease in cost of operation
4. Value Delivery w Compliance with legislations
6 Cost Optimisation, ROI for IT and its bottom line impact.
6 Total cost of ownership of IT Services
6 Providing the value of IT Sub process : IT Governance
5. IT Asset Management Sub Process Ref : CVBU-EL-16-01 (version 1.1)
6 Selectively outsourcing of non core processes to trusted suppliers Process Owner : CIO supported by TTL Project
6 Leveraging Knowledge and skills Heads
6 Availability, training retention of key IT personnel EPM Linkage – CVBU-EL-16( Information &
6. Risk Management Knowledge Management)
6 Establishing IT Security to safeguard assets and enabling business recovery from IT failure
Preparation Date : 31/12/04
6 Establishing trust in services and partners
Modification Date : 31/12/05
6 Providing privacy and resilience

31.3.2005 16.5
TATA Motors, CVBU Manage support System

Key Steps in-


'Manage Support System' Outputs
Inputs 1. Conduct specific needs assessments w Benchmarking / Evaluation Report
w IT Roadmap 2. Select information technologies w Enterprise support system
w Investment Proposal (Capex) 3. Define data life cycles w Unit and System Test Report
w Business processes 4. Develop enterprise support systems w User Acceptance Test Report
5. Test, evaluate and deploy enterprise w Installation Report
support systems

How it operates (Methods/ Practices)


1.Conduct specific needs assessments
Performance Measure Unit
6 Interact with various user groups Efficiency
6 Identify their specific needs w Adherence to schedule for key projects %
2.Select information technologies
6 Scan the latest technologies available in-house as well as outside
Effectiveness
6 Short list the best option
w Number of defects during implementation No.
6 Functional coverage
6 Performance w Number of defects post implementation No.
6 Life of technology
6 Prepare project implementation schedule
3.Define data life cycles (Except Infrastructure and Networking)
6 Prepare data flow diagram for a specific application development Sub process : Manage Support System
4.Develop enterprise support systems Sub Process Ref : CVBU – EL – 16 – 02
6 Identify the desired output (version 1.1)
6 Design the front-end Process Owner : CIO (supported by TTL
6 Logical and physical design of the system Project Heads)
6 Software development (Coding) EPM Linkage : CVBU–EL–16 (Information
5.Test, evaluate and deploy enterprise support systems & Knowledge Management)
6 Confirm the desired output is delivered (Unit and System Test Report) Preparation Date : 31/03/04
6 Confirm processing time Modification Date : 31/12/05
6 Run the pilot and get users’ acceptance (User Acceptance Test Report)
6 Install the system (Installation Report)

31.3.2005 16.6
TATA Motors, CVBU Manage System Security

Inputs Outputs
w IT Roadmap w Information Security Policy /
Key Steps in-
w Enterprise Data Standards Procedures
'Manage System Security'
w Enterprise Quality w Installation Reports
1. Establish systems security strategies
Standards w Information Asset
and levels
w Application Specific classification
2. Test ,evaluate and deploy systems
Security Requirements w Secured Systems
security and controls
w Documented IT process w Segregation of Duties
and procedures w Signoff document - Vendors

How it operates (Methods/ Practices) Performance Measure Unit


1.Establish Systems Security Strategies and Levels Efficiency
6 Design and implement Information Security policies / procedures
6 Classification of Information Assets Effectiveness
6 Availability of Data and information to end users w No of PCs getting affected by No.
6 User level awareness of System Security viruses
6 Ensure that the system (code and data) is secure from unauthorized access w No on incidents for
6 Vulnerability assessment on a periodical basis unauthorised access No.
6 Weekly update of anti-virus software on all servers and PCs w No of Vendors sign off obtained No.
6 Automate download and fixation of security patches.
6 Withdraw Administrative privileges from end users
Sub process : Manage System Security
6 Sign off from Third Party Vendor and ensure compliance with Information Security
Reference : CVBU-EL- 16- 03
requirement
(version 1.1)
6 Deployment of Security Software at the Gateway
Process Owner : CIO (supported by TTL
2.Test ,Evaluate and Deploy Systems Security and Controls
Project Heads)
6 Decide the criteria
EPM Linkage : CVBU-EL-16 ( Information
6 Run the pilot and confirm desired results
& Knowledge Management )
6 Install the system (Installation Report)
Preparation Date : 13/01/04
6 Review on periodical basis
Modification Date : 31/12/05
Refer sub-process CVBU – EL – 16 – 07 (version 0.0) “Information Management Audits” for
audit details.

31.3.2005 16.7
TATA Motors, CVBU Manage Information Storage & Retrieval

Key Steps in-


Inputs 'Manage Information storage & Retrieval'
w IT Roadmap 1. Establish information repositories Outputs
w Business Processes 2. Acquire and collect information w Norms for storage and retrieval
w KPMs and KPIs 3. Store information w Backup Strategy
w Enterprise Data Standards 4. Modify and update / delete information
w Enterprise Quality Standards 5. Achieve data
6 Enable retrieval of information

How it operates (Methods/ Practices)


1. Establish information repositories
Performance Measure Unit
6 Understand the business processes Efficiency
6 Estimate the data size, storage space required w Data retrieval time for each category of data / Hrs.
6 Categories the data / information (BoM, CAD/CAM Data…) information
6 Estimate the user base for each application w No of occasions on which data could not be
2. Acquire and collect information made available(Valid for data center operations) No.
6 Establish the source Effectiveness
6 Identify & execute the process of data / information input w Server crash due to data overload No.
3. Store information
6 Establish the norms
6 Type of data Sub process : Manage Information Storage &
6 Method of storages Retrieval
6 Back up strategy Sub Process Ref : CVBU-EL-16-04 (version 1.1)
6 Store as per norms Process Owner : CIO (supported by TTL Project
4. Modify and update / delete information Heads)
6 Establish the trigger for changing the data / information EPM Linkage – CVBU-EL-16 ( Information &
6 Establish the review frequency Knowledge Management )
6 Establish the access norms Preparation Date : 31/03/04
5. Achieve Data Modification Date : 31/12/05
6 Establish Archival Polocies / procedures
6. Enable retrieval of information
6 Establish the norms
6 Retrieve as per norms
31.3.2005 16.8
TATA Motors, CVBU Manage Facilities & Network Operations

Key Steps in -
Inputs ' Manage Facilities & Network Operations' Outputs
w IT Roadmap 1. Manage Centralized facilities w Reliable facilities and network
w Information Security Policies / 2. Manage Distributed facilities operations
Procedures 3. Manage network operations

How it operates (Methods/ Practices) Performance Measure Unit


1.Manage Centralized facilities Efficiency
6 Identify ownership w System uptime for each of the critical Hrs.
6 Evolve, monitor and review maintenance schedule services (e-Mail,application servers …)
6 AMCs and warranty support (Hardware / Software) w Response time for troubleshooting Hrs
6 First time installation (Design, Implement, Install) w Bandwidth management and monitoring
6 Ongoing maintenance (Help Desk, Data Center Management …) (for Networking)
6 Up gradation
6 Ensure redundancies for network / communication links. Effectiveness
2.Manage Distributed facilities w Availablility of facilities and Network operations %
6 Identify ownership
6 Establish a process for interfacing with centralized facilities
6 Evolve, monitor and review maintenance schedule Sub process : Manage Facilities & Network
6 AMCs and warranty support(Hardware / Software) Operation
6 First time installation (Design, Implement, Install) Sub Process Ref : CVBU-EL-16-05 (version 1.1)
6 Ongoing maintenance (Help Desk, Data Center Management …) Process Owner : CIO (supported by TTL Project
6 Up gradation Heads)
3.Manage network operations EPM Linkage– CVBU-EL-16 ( Information &
6 AMCs and warranty support(Hardware / Software) Knowledge Management )
6 First time installation (Design, Implement, Install) Preparation Date : 31/03/04
6 Ongoing maintenance Modification Date : 31/12/05
6 Up gradation

31.3.2005 16.9
TATA Motors, CVBU Manage Information Services

Inputs
w IT Roadmap
w Business Processes Key Steps in - Outputs
w KPMs and KPIs 'Manage Information Services ' w Storage & Disposal policies
w IT Security Policy 1. Manage libraries and information centers w Categorized document libraries
w Storage and Retrieval Norms 2. Manage business records and documents
w Statutory requirements

How it operates (Methods/ Practices) Performance Measure Unit


1. Manage libraries and information centers
Efficiency
6 Identify the relevant business process
6 Identify the data / information needs Effectiveness
6 Create libraries (Databases, Intranet …) w 5”S” Audit scores No.
6 Review periodically for obsolescence w Document retrieval time Hrs.
2. Manage business records and documents
6 Decide the policy taking cognizance of legal
requirements
6 Establish coding system / convention
6 Store documents in line with the policy Sub process : Manage Information
6 Review periodically for obsolescence Services
Sub Process Ref : CVBU-EL-16-06
(version 1.1)
Process Owner : CIO supported by TTL
Project heads
EPM Linkage – CVBU-EL-16
( Information &
Knowledge Management)
Preparation Date : 31/03/04
Modification Date : 31/12/05

31.3.2005 16.10
TATA Motors, CVBU Manage Information Audits

Inputs
w IT Roadmap
w Information Management
Key Steps in -
Process
'Formation Management/Audits' Outputs
w Organizational Databases
1. Perform IT security Audits w Audit Reports
w Information Technology
2. Perform IT Infrastructure Audits
Management Systems and
3. Perform Information Quality Audits
Infrastructure
w Quality Standards
(ISO,CMMI…)

How it operates (Methods/ Practices) Performance Measure Unit


1. Perform IT security Audits (Vulnerability assessment by IBM) Efficiency
2. Perform IT Infrastructure Audits on (With the help of Internal Audit
Team) Effectiveness
6 Datacenter / Operations w Number of Recommendations &
6 Networking Findings in Audits
6 Hardware & Software (development and deployment) w Recurrence of the Nonconformity
support
6 Email & Portal support
3. Perform Information Quality Audits to check…
6 Usefulness of information Sub process : Information Management
6 Information security (Accessibility) Audits
6 Information presentation Sub Process Ref : CVBU-EL-16-07 (version 1.1)
6 Accuracy and reliability of Information Process Owner : CIO (supported by TTL
Project Heads)
EPM Linkage – CVBU-EL-16 ( Information &
Knowledge Management )
Preparation Date : 31/03/04
Modification Date : 31/12/05

31.3.2005 16.11
TATA Motors, CVBU Knowledge Management

Inputs
w Senior Management -
Strategic direction
w Employees - Suggestion Scheme,
Share Café, Value Engineering
Workshops Key Steps in -
w Customers - QFD, Planned 'Knowledge Management' Outputs
Interactions with customers e.g. 1. Understand Knowledge requirements w Knowledge Repositories
Kulbir Singh Project, Product Review 2. Encourage Knowledge Sharing w Integrated Intranets
Meetings between Marketing, Service, 3. Exchange and use knowledge w Communities of Practice
QA, ERC & Mfg. 4. Build Knowledge Repositories where
w Channel Partners - Dealers’ meets, necessary
Workshop Managers’ meet
w Vendors - Vendors’ meets,
Involvement in Product Development
w Others - Consultants, ISO / TS / BSC
Audits, TBEM External and Internal
Assessment Processes
Performance Measure Unit
Efficiency
How it operates (Methods/ Practices) Effectiveness
1. Senior Management and process owners continuously communicate the w Number of ideas shared and replicated on
6 Business requirements to the respective stakeholders Share Café
2. Encourage knowledge sharing through… w User base of various intranets
6 Suggestion Scheme, Share Café w Number of suggestions in a year
6 Cross Functional / Locational Assignments w Number of Procedures / Processes
6 Dealer meets, Vendor meets mapped
6 QFD w Number of Product Modifications
6 Involvement of suppliers during product development, etc
3. Exchange and Use knowledge
6 Various meetings (CFT / CLT / SDT) Sub process : Knowledge Management
6 Modify Design / Process / Procedure Sub Process Ref : CVBU-EL-16-08 (version 1.1)
4. Build Knowledge Repositories Process Owner : Functional Heads/ Process
5. Monthly Reports in functions / divisions / departments Owners)
6 ISO / TS / EPM Documentation EPM Linkage – CVBU-EL-16 ( Information &
6 Audit / Assessment Reports Knowledge Management )
Preparation Date : 31/03/04
Modification Date : 31/12/05

31.3.2005 16.12
TATA Motors, CVBU Finance and Budgeting

Finance and Budgeting


EPM Process No : CVBU-EL-17

Principal Process Owner : Mr P P Kadle - ED (Finance & Corp Affairs)

Locational Process Chiefs : Locational Finance Heads


Sub_Proc No Sub Process Name Sub_Process Owner
CVBU-EL-17-01 Revenue Budgeting (Corp Finance , Business planning)
CVBU-EL-17-02 Product Costing (Auto + Non Auto) (Corp Finance , Plant - Business planning)
Product costing - Foundry (Corp Finance , Plant - Business planning)
Product costing - PE (Corp Finance , Plant Finance)
CVBU-EL-17-03 Product Pricing - Vehicle Head Finance - (Corp Finance , Business planning)
Direct Taxation
Product Pricing - Spare Parts (Corp Finance , Business Planning)
CVBU-EL-17-04 Financial Accounting -GAAP Head Finance - (Corp Finance , Accounts & Taxation)
CVBU-EL-17-05 Indirect Taxation Head Finance - (Corp Finance , Plant Finance)
Direct Taxation (Corp Finance,Businss Planning)
CVBU-EL-17-06 Receivables Management Head Finance - (Corp Finance , Accounts & Taxation)
CVBU-EL-17-07 Acounts Payment Management Head - Shared Services,Corp Finance
CVBU-EL-17-08 Resource Management Head Finance (Corp Finance - Treasury)
CVBU-EL-17-09 Risk Management Head Finance (Corp Finance - Treasury)
CVBU-EL-17-10 Employee Services Head - Shared Services / Corp Head
CVBU-EL-17-11 Statutory Audits Finance Head - (Corp Finance , Plant Finance)
CVBU-EL-17-12 Manage Investor Relations Head Investor Relations Dept,Corp Finance
CVBU-EL-17-13 EVA drilldown Head Finance - (Corp Finance , Business Planning)
CVBU-EL-17-14 FIBRES ED's Office

31.3.2005 17.1
TATA Motors, CVBU Finance and Budgeting

PROCESS DEFINITION SHEET

Process Identification No. ( PIN) : CVBU- EL- 17 Higher Level Linkage-


Process Title Finance and Budgeting Process Owner Mr P P Kadle ED (Finance & Corp Affairs)
Process Objective Efficient Funds Management, Statutory Compliance, Provide Support for Decision Making
INPUT KEY STEPS OUTPUT
§ CVBU Strategy Ø Review and Finalise Financial Policies ü Funds Availability
§ Business Plan Ø Manage Corporate Finance Services ü Interest Cost Control
§ Economic Environment - Funds Management ü Financial Analysis
§ Financial Resources - Budgeting ü Budgetary Controls
- Consolidation of Accounts and preparation of Financial Statements
§ Requirement of External Suppliers and ü Working Capital Control
- Financial Analysis and Statutory Reporting
Customers Ø Manage Locational Finance Services ü Statutory Compliance
§ Requirement of Internal Customers - Vendor Payments, Employee Payments, Costing & Budgeting, Funds
§ Statutory Requirement Management
§ TATA group guidelines Ø Manage Sales Finance Services
§ Budget Approvals - Resource & Funds Management for BHPC
- Receivables Management & Dealer Credit Control
- Vehicle Pricing
In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Accuracy of the reports Nos. Time for Closing of Accounts, Receivable as No. of Days of Sales No of Days
Adherence to Time schedule of reports R.Y.G. Financial Ratios Ratio
Funds Utilisation - Budget Vs. Actual %,Rs. Cr.
Cost of Capital %
Divisions Involved - Corporate and Locational Finance
End Customer- Other Functions
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS 16949 (2002) Ref 5.4
Process review and Improvement / Modification History-
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES,Pune
31/3/05 01 Modification through process review Process Team

31.3.2005 17.2
TATA Motors, CVBU Finance and Budgeting

Process Owner : Head of Corporate Finance


Manage Sales Finance Services - Process objective : Efficient Funds management,
* Resources & Funds Management Ensure statutory Compliance, Provide Financial,
for BHPC. Information support for Business Decision Making
*Receivables Management and
Dealer credit controls Output-
*Vehicle Pricing Outputs-
- Statutory Financial
Head of sales Finance Compliance Statement,
- Improved Utilisation Budget
of Financial Resource Proposals
- Review and
Manage Corporate Finance
Finalise
Services-
Financial Acquire and - Periodic Review of
* Financial services for Corporate - Annual A/C closing,
Policies. Allocate Performance,
offices, Regional & Area offices - Financial statements,
-Set Targets and Resources - Reallocation of Resources
* Funds Management for CVBU - Performance Analysis and
Initiatives Head Corp. * Budgeting Resource Budget
Finance Divl. Finance Head of
* Consolidation of Accounts and Preparation
Commitee Corp. Finance
preparation of Financial Statements Finance Divl. Commitee
* Financial Analysis, MIS and
Statutory Reporting
Inputs- Head of Corp. Finance
- CVBU Strategy,
- Business Plan, Continue with the
- Budget Approvals, Manage Finance Services at
Process
- Statutory Respective Plants
requirements, *Manage Vendor Payments
- Tata Group *Payment of salaries & wages.
Guidelines, *funds Management
- Financial Resources, *Sales Accounting
- Economic *Payment Taxes and Duties
Environment *Costing and Budgeting
- Requirement of *Plant Level Accounting
External Customers *Provide MIS on financial performance
and Suppliers, of the Plant
- Requirements of *Plant Level Cost Reduction
Internal Customers. Plant Finance Heads

31.3.2005 17.3
TATA Motors, CVBU Revenue Budgeting

Inputs
w Vehicle sales plan Key Steps in –
w Non vehicle business plan 'Revenue Budgeting' Outputs
w Plant level production plan 1. Preparation of functional budget at plant w Plant / Div-CX / BC wise budget
w Manpower requirement & proposed level and Corporate level w Budget updation in system
salary/wage revision 2. Consolidation of budget w MIS report.
w Cost saving target 3. Inclusion of Union Budget impact w Cost saving report
w R&D Budget 4. Review and Approval of budget. w Absorption rate for determining
w Publicity budget 5. Communication of approved budget to standard cost of aggregates /
w Depreciation policy. Functional Heads components / assemblies
w Union budget 6. Monitoring and review of budget.
w Directives from Board of Directors
w Capital Budget

How it operates (Methods/ Practices) Performance Measure Unit


1. Releasing of Budget guidelines on financial and policy matters Efficiency
2. Preparation of departmental budget and compilation into functional budget at plant w Adherence to Budget Calendar %
level based on annual production plan and also preparation of functional budget for w Timeliness, final budget by 31st march %
Sales & Marketing and Corporate Affairs
3. Consolidation of budget at company level Effectiveness
4. Present First cut Business Unit budgets to respective EDs w Accuracy of budget
5. Incorporate changes (if any) as recommended and represent detailed Business Unit (Variance – excluding the effect of %
budget to respective EDs for their recommendation change in sales volume)
6. Present budget before Operations Committee for recommendation
7. Present budget before Management Committee for recommendation
8. Incorporate Union budget provisions and prepare final Company budget
9. Review and recommend final Company budget for approval Sub process : Revenue Budgeting
10. Circulate the final proposal to Board Sub Committee and receive approval Sub Process Ref : CVBU-EL-17-01 (version 1.1)
11. Review and approve Company budget by Board of Directors Process Owner : Corporate Finance –
12. Communicate approved budget to concerned Functional Heads Business Planning
13. Analysing variance on monthly basis and proposing modifications (if any) during mid EPM Linkage : CVBU-17 (Finance & Budgeting)
term review (MTR) Preparation Date : 31/03/04
14. Seeking approval of MTR as above Modification 1 : 30/11/04
Modification 2 : 20/12/04

31.3.2005 17.4
TATA Motors, CVBU Product Costing (Auto)

Inputs
w Sales/ production plan for the
budget year
w Revenue budget for the year. Key Steps in –
w Bill of material. (BOM) 'Product Costing' Outputs
w Technical part list converted to BOM 1. Update year opening price adjusted to Product cost
w Routing for parts/assemblies (SMH) budget parameters as planned price for w For Vehicle
w Actual expenses for each cost bought out parts w For Aggregate and assemblies
centre for current year period. 2. Release budgeted cost centre rates. w For components
w Total expenses, which are 3. BOM explosion w MIS for variance analysis
apportioned to Auto (e.g. common 4. Analysis of cost sheet (Cost sheet
service, HO expenses, R&D should be free of errors--- status KA)
expenses) 5. Mark and release the cost for inventory
w Cost centre master data valuation and production booking.
w Financial account data
w Asset master data
Performance Measure Unit
Efficiency
How it operates (Methods/ Practices) w Correctness of product cost. %
1. Cost centre rate is based on actual basis (BC rate of last quarter) and activity involved
(SMH required) to achieve the planned production. Effectiveness
2. Condition of supply is being factored in BOM while entering in the system w Availability of cost data for product %
3. BOM consists aggregation of components, subassemblies, and assemblies to vehicle. booking and stock valuation.
4. While BOM explosion system looks for planned material cost of each input material. At w Absorption of Expenses over output.
each level material cost is aggregated.
5. For in house manufactured components (indicated by E99 or E98),Cost centre routing is Sub process : Product Costing (Auto)
picked and conversion cost is calculated based on cost centre rate. At each higher level Sub Process Ref : CVBU-EL-17-02
conversion cost is aggregated. (version 1.1)
6. Aggregate cost at each level is product cost . Process Owner : Corporate Finance/Plant –
7. Product cost will get released at component level, and for each aggregate where it is Business Plg
considered for in house product booking. EPM Linkage : CVBU-EL-17 (Finance
8. Product is also available at current month average material price as well as weighted &Budgeting)
average material price. (This product cost is used for MIS purpose) Preparation Date : 31/03/04
Modification 1 : 30/12/04
Modification 2 : 18/01/05

31.3.2005 17.5
TATA Motors, CVBU Product Costing

Key Steps in –
'Product Costing'
Inputs 1. Work out planned cost
w Asset master data. 2. Work out actual product cost based on
w Cost center master data. 6 Actual Production Outputs
w Financial account data. 6 Actual consumption of Matl & labor w Cost of product
w Cost/work center data 3. Analyze Variance w MIS.
w R&D (actual+projected) 4. Prepare MIS and Profitability report w Cost audit report
w Bill of Material for products. 5. Consolidation of Cost and MIS Report.
w MAP’s 6. Cost monitoring, cost audit.
7. Non auto (tooling, electronic etc) costing

How it operates (Methods/ Practices) Performance Measure Unit


A. Auto Costing Efficiency
1. Work out cost centre rates on the basis of budget expenses. w BOM, MAP accuracy %
2. Work out planned cost.
3. Cost head / product wise actual costs are worked out based on actual
Effectiveness
production and consumption of material and labor.
w Accuracy of data/information. %
4. Cost variances are analyzed and MIS reports (direct material
consumption, indirect material consumption etc.) are sent respective
departmental heads for necessary action
5. Product cost report are consolidated at CVBU level and product Sub process : Product Costing
profitability and contribution is analyzed and reports are given to Sub Process Ref : CVBU-EL-17-02 (version 1.1)
Steering Committee and LOB heads. Process Owner : Corporate Finance/Plant –
B. Non Auto Costing Business Plg
1. Work out cost center rates. EPM Linkage : CVBU-EL-17
2. Work out actual cost through work order system. (Finance & Budgeting)
C. Carry out auditing by auditors appointed by BOD. Preparation Date : 31/03/04
D. Seek approval from BOD & signed by E.D. Modification 1 : 30/11/04
E. Take action on audit findings
F. Share/compare cost comparisons with other plants.

31.3.2005 17.6
TATA Motors, CVBU Product Costing (Non Auto – Foundry)

Inputs Outputs
Key Steps in –
w Revenue Budget w Cost of product
'Product Costing'
w Production Plan 1. Work out Activity Rates –( Melting, w Informing Cost to internal
w Asset master data. Core, Mould and Finishing ) customers for the purpose of
w Cost center master data. 2. Update activity rates transfer accounting
w Cost centre wise Manpower data 3. Take cost roll-up (item wise cost w Excise duty payment for Transfers
w Bill of Material for products. bifurcated in to Variable & Fixed cost) w Inventory valuation
w Quotations for sale to External
Customers
w Contribution & Profitability analysis
on outside sale

How it operates (Methods/ Practices) Performance Measure Unit


1. Collection of revenue expenses – BC wise Efficiency
2. Apportioning the same in 4 activities – Melting, Core, Mould and Finishing w Bill of Materials (BOM) Nos
3. Working out SMH rate / kg. Liquid metal for melting expense w Variance analysis %
4. Updating activity rates
5. Technical data received from plant towards conversion cost Effectiveness
6. Working out conversion cost w Accuracy of Cost %
7. Booking of material cost at actual and MASOP cost (outside processing
charges)
8. Arriving at total cost Sub process Product Costing -
9. Taking cost roll up which gives the product wise cost bifurcated into Foundry
Variable Cost & Fixed Cost Sub Process Ref : CVBU-EL-17-02
(version 1.1)
Process Owner CVBU, Pune -Business
Planning
EPM Linkage : CVBU-EL-17
(Finance & Budgeting)
Preparation Date : 31/03/04
Modification 1 : 27/12/2004

31.3.2005 17.7
TATA Motors, CVBU Product Costing (Non Auto – Prodn. Engineering)

Inputs
w Cost centre master data.
w Cost centre wise expenditure Key Steps in –
Budget for the year 'Product Costing' Outputs
w Cost centre wise Labour Hours 1. Updation of Cost Centre Rates w Cost of Tooling
budget for the year 2. Consumption of Direct material w MIS – Performance sheet,
w Release of Work Order based on for actual cost variance analysis at overall level
Indents from APL/Technical (estimate for outside quote) w Quotations for outside Sale
Services & Pos received from 3. Labour Hour booking for actual cost w Contribution & profitability analysis
Outside customers for (estimate for outside quote) on outside Sale of Tooling
manufacture of Tooling
w BOM release for manufacture of
Tooling against WOs.

How it operates (Methods/ Practices) Performance Measure Unit


1. Cost centre wise booking of actual Labour hours spent on the Efficiency
Work Order. w Correct booking of Direct Material Rs.
2. Working out cost centre rates on the basis of Expenditure & w Correct booking of Labour Hours
Labour overhead as per SMH (actual booked to WO)
3. Actual issue of Direct material to Work Order Effectiveness
4. Actual expense relating to outside processing charges w Accuracy of Tooling Cost %
5. Working out total cost after completion of the Work Order
6. Working out hike de hike percentage based on the difference
between actual expenses & Budgeted Expenses at the year
end. Sub process : Product Costing - PE
7. Working out the revised cost. Sub Process Ref : CVBU-EL-17-02 (version 1.1)
Process Owner : CVBU,Pune- Business Planning
EPM Linkage : CVBU-EL-17 (Finance
&Budgeting)
Preparation Date : 31/03/04
Modification 1 : 27/12/2004

31.3.2005 17.8
TATA Motors, CVBU Product Pricing- (Vehicle)

Inputs
w Sales forecast of new product
w New vehicle specifications
w Works cost data from Plants Key Steps in -
w Tax applicability 'Product Pricing' Outputs
w Competitor price data 1. Determine New vehicle price. w Updated vehicle price lists
w Marketing and pricing strategy for 2. Approve and Implement new prices available to internal & external
new products 3. Review and revise existing customers
w Profitability targets product prices w Invoicing of vehicles
w Mktg, sales & distribution cost data
w Current price list
w Information about existing product
strategy

How it operates (Methods/ Practices) Performance Measure Unit


1. Pricing of new product (model / variant) Efficiency
6 Information about new product - product features w Adherence to schedule %
6 Positioning of product vis a vis competitor and current product range of
CVBU Effectiveness
6 Obtaining cost data of new product from Works w Conformity with pricing norms %
6 Loading margin after considering prices and profitability of current product w Compliance with effective date %
and prices of competitor, demand forecast, Marketing and pricing strategy
and budgeted profitability of model group
6 Sent to Business Head in the specific format for recommendation
6 Changes made (if any) as suggested by Business Unit and sent to ED (F & Sub process : Product Pricing (Vehicle)
CA) for recommendation to Chairman’s office Sub Process Ref : CVBU-EL-17-03 (version 1.1)
6 Final approval from Chairman Process Owner : Corporate Finance –
6 After approval Prices are updated in the system and communicated to Business Planning
6 Marketing & Sales, Plant Finance, Dealers, Central Excise etc. along with EPM Linkage – CVBU-EL-14 ( Finance &
effective date. Budgeting )
2. Pricing of existing product Preparation Date : 31/03/04
Conducting periodic review of - Cost data of components / aggregates / Modification 1 : 30/11/04
assemblies, Impact of Union Budget, Product profitability target, Target Modification 2 : 20/12/04
market share of product, Marketing and pricing strategy,
Accordingly product prices are revised

31.3.2005 17.9
TATA Motors, CVBU Direct taxation

Inputs
Key steps in –
w Income tax act & Rules 'Direct taxation'
w Case laws / tax journals 1. Analyzing Union budget, Income Tax act, Rules, Outputs
w Double taxation avoidance Treaties and case laws w Legal compliance
agreement 2. Tax planning w Avoidance of penalty / interest
w Union budget 3. Ensuring compliance of tax law and procedures payment
w Financial accounts 4. Computation of income w Tax saving
w Directives from Board of Directors 5. Payment of taxes to Govt. and filing of Return w Assessment / appeal order
w Details of transaction data from 6. Handling assessment / appeal / notices
Divisions having tax impact
w Expert opinion on legal issues

Performance Measure Unit


How it operates (Methods/ Practices) Efficiency
1. Study effect of changes in Income tax rate, Law as per Union Budget w Compliance with statutory requirement %
2. Intimating new tax laws and rates to all Divisions for implementation and ensuring
w Timely payment of taxes %
compliance
w Timely filing of returns and claims %
3. Advising on various tax / TDS issues by reviewing transaction to ascertain tax implication
4. Reviewing data received from Divisions for computation of income tax Effectiveness
5. Availing all tax incentives applicable w Minimum tax liability – avoidance
6. Making provision for current tax / deferred tax as per Indian / US GAAP and getting it of penalty and interest Rs. in crores
duly audited w Reduction in contingent liability Rs. in crores
7. Computation of effect of transfer pricing in case of International Business
8. Computation of income and payment of tax and filing of return of income Sub process : Direct taxation
9. Appearing before tax authorities, making representation and getting assessment Sub Process Ref : CVBU-EL-17-03 (version 1.1)
completed Process Owner : Corporate Finance – Business
10. Filing appeal, liasioning with Tax Counsel and attending appeal hearing Planning
11. On receipt of appeal order, lodging claim for consequential effect and obtaining refund due. EPM Linkage – CVBU-EL-14 ( Finance &
12. Preparation of contingent liability statement and getting it duly audited Budgeting )
13. Collecting data, obtaining valuation report and computing wealth tax payment as per act Preparation Date : 31/03/04
14. Payment of wealth tax, filing of return and getting assessment done Modification 1 : 30/11/04
Modification 2 : 28/12/04

31.3.2005 17.10
TATA Motors, CVBU Product Pricing - (Spare Parts)

Inputs
w Vehicle sales forecast
w New vehicle specifications/
spare part list
w Spare parts master
Key Steps in – Outputs
w Serviceable parts list and
'Spare parts Pricing' w Updated spare parts price
technical part list
1. Determine spare parts price lists available to internal &
w Purchase contract from Plants
2. Approve and Implement new prices external customers
for OE suppliers
3. Review and revise existing spare parts prices
w Duties / Tax applicability
w Cost data for shop made parts
w Marketing and pricing strategy
w Profitability targets
w Current price list

How it operates (Methods/ Practices) Performance Measure Unit


1. Pricing of new parts Efficiency
6 Information about new product w Adherence to schedule %
6 Information of technical part list received from ERC
6 Obtaining cost data of shop made parts from Works Effectiveness
6 Calculation of landed cost for OE parts from purchase contracts w Conformity with pricing norms %
6 Loading margin after considering marketing and pricing strategy , type of parts, w Compliance with effective date %
criticality and budgeted profitability
6 Sent to AGM (Spare Parts – CVBU) in the specific format for recommendation
6 Changes made (if any) as suggested by AGM(Spare Parts – CVBU) and sent to Sub process : Product Pricing (Spare
Head, LOB 4 for approval Parts)
6 Final approval from Head, LOB 4 Sub Process Ref : CVBU-EL-17-03 (version 1.1)
6 After approval Prices are updated in the system and communicated to Marketing Process Owner : Corporate Finance –
& Sales, Tata Motor Plant Finance, Dealers, Distributors, Central Excise etc. Business Planning
along with effective date. EPM Linkage – CVBU-EL-14
2. Pricing of existing parts ( Finance & Budgeting )
6 Prices are periodically reviewed and revised when necessary, to maintain Preparation Date : 31/03/04
product profitability Modification 1 : 30/11/04
Modification 2 : 13/12/04

31.3.2005 17.11
TATA Motors, CVBU Financial Accounting

Inputs
w Accounting standards and
pronouncements, Indian Key Steps in –
Companies and Taxation act 'Financial Accounting' Outputs
w US GAAP 1. Controlling authorisation for passing w Management Information Reports .
w TB from HR & Payroll & BHPC accounting entries in the system w Quarterly Results as per SEBI.
and other Legacy system . 2. Correct accounting for income and expense w Consolidation Accounts as per
w TB and other FI data from 3. Consolidation of accounts at corporate level AS21.
Subsidiaries and Associates 4. Preparation of accounts as per Schedule VI w Annual Report
w Data from Vendors for incoming requirement and quarterly accounts w Book on Explanatory Note.
Materials thru VCM . as per AS 25 w Form 20 as per US GAAP
w Data from Customers on 5. Preparation of accounts as per US GAAP w MD & A as per US GAAP
Warranty and PDI claims 6. Review of financial statement w Prospectus and other Financial
w Proof / documents pertaining 7. Regulatory compliance documents
income / expense booking
w Bank statement and related info
from Banks thru Internet.

Performance Measure Unit


How it operates (Methods/ Practices) Efficiency
6 Maintaining FI and Tax master w Closing of TB for MIS Ist day
6 General Ledger Accounting, BC wise and cost centre wise booking of entries w Completion of Quarterly Accounts in 15 days 15days
6 Analysing and reviewing of accounts, periodic clearing of line items w Completion of Annual Accounts . 3Wks
6 Uploading TB from other Systems e.g. HR, BHPC, HVAL / HVTL, CFM w Accuracy and timeliness of Reports %
6 Carrying out Period End Activities in Finance and in SAP w Number Audit Adjustment Entries . Nos
6 Finalising TB after required Accrual, Provision and Adjustments entries
Effectiveness
6 Carrying out Actuarial Valuation of Employee Leave, Gratuity, Superannuation Fund and w Number of Audit Issues. Nos.
Medical liabilities as per Proviions of Indian and US GAAP w Adverse comments from External Auditors Nos.
6 Reconciling inter company transactions and passing required inter company elimination entries
6 Preparing schedules e.g.
Ø Raw Material and Finished Goods Inventory, Vendor, Customer, Investment Sub process : Financial Accounting
Ø Borrowings and Fixed Assets Schedules Sub Process Ref : CVBU-EL-17-04 (version 1.1)
Ø Notes to accounts Process Owner : Corporate Fin – Accounts &
Ø P & L Variance Taxation
CARO requirements EPM Linkage : CVBU-17 (Finance & Budgeting)
6 Preparing realigned TB as per US GAAP and passing required US GAAP entries Preparation Date : 31/03/04
6 Preparing accounts as per Indian and US GAAP Modification Date : 30/11/04

31.3.2005 17.12
TATA Motors, CVBU Financial Accounting

Key Steps in –
'Financial Accounting'
Inputs 1. Statement of Balances from all TML
w Common Chart of Accounts locations Outputs
w Transactions & Trial balances of 2. Financial accounting schedules for all w Company’s consolidated final
various locations assets & liabilities accounts duly audited.
w Accounting Standards 3. Bank Reconciliation w Final accounts to meet requirements
w Information & data from 4. Variance analysis of major P & L and of US GAAP.
subsidiaries & associates Balance Sheet items
5. Reconciliation of TML accounts with
subsidiaries & associates.

Performance Measure Unit


How it operates (Methods/ Practices) Efficiency
1. Prepare & audit various accounts (by respective groups at resp.TML locations) w Completion of Quarterly audit review in 15
2. Prepare days Time
Ø notes to accounts w Completion of Annual Audit Review in
Ø Explanatory notes 30 days. Time
Ø Schedule VI requirements w Timeliness of Report Time
Ø CARO requirements
3. Get tax audits done Effectiveness
4. Maintain Master Chart of Accounts with justifications w Accuracy of Accounts %
5. Adherence to various Accounting Standards w Adverse comments from External Auditors Nos
Close follow up & coordination with various TML locations Associates & Subsidiaries
Sub process : Financial Accounting
GAAP – Generally agreed accounting practices Sub Process Ref : CVBU-EL-17-04 (version 1.1)
USGAAP – US … Process Owner : Corporate Fin – Accounts &
Listing Agreement – with the stock exchange where we register our Shares Taxation
EPM Linkage : CVBU-17 (Finance & Budgeting)
Preparation Date : 31/03/04
Modification Date : 30/11/04

31.3.2005 17.13
TATA Motors, CVBU Indirect Taxation

Inputs
Excise Duty.
6 Excise rules & tariffs
6 Union budget
6 Vendor master Key steps in –
6 Duty paid excise invoices from vendors Outputs
'Indirect taxation'
6 Product price list. 1. Analyzing tax rules and regulations and
6 Dispatch cum excise documents w Cenvat credits
their implications in the business
Sales Tax w Cost price of Product
2. Payment of taxes to vendors
6 Invoices of suppliers w Refund claims
3. Collection of taxes from customers
6 Customer master w Legal judgments
4. Set off adjustment of service tax against
6 Form C/D/H ,and entitlement w Assessment report by government
payment of excise duty
certificates w MIS on contingent liability, status of
6 Sales tax rules 5. Payment of taxes to Govt.
cases under appeal
6 Commercial invoices of TML 6. Filing of returns and claiming of refunds
Service Tax
6 Service tax rules
6 Invoices of the service providers
6 Our invoices for services rendered Performance Measure Unit
Efficiency
How it operates (Methods/ Practices) w Timely availment of Cenvat credit/set off
1. After budget session Works finance analyses rules & tariffs related to excise duty, sales tax, service tax, & local taxes concessions. %
2. Works finance updates master data related to above
w Timely payments of taxes. %
3. Implication and effect on product pricing is worked out and conveyed to Sales & Marketing Dept
4. Taxes are paid to vendors based on PO terms & conditions against excise on commercial invoices through supplier w Timely fillings of returns / claims %
payment system
Effectiveness
5. Works finance avails Cenvat duty credit against excise duty paid on inputs
6. Excise duty & sales tax are collected from customers on sold products & separately accounted for w Adherence to statutory requirements. %
7. Service tax collected on services rendered and paid on services availed. Reduction of contingent liability for excise Rs. crores
8. Works finance makes payments of excise duty for vehicles/components dispatched through PLA or RG23 after netting and sales tax related matters
off Cenvat credit available
9. Set off is being availed on service tax paid on services availed against payment of excise duty
Sub process : Indirect Taxation
10. Excise duty is being paid on 5th of next month, Returns are being submitted by 10th of next month
11. Works finance makes payments of sales tax to state/central government every month.
Sub Process Ref : CVBU-EL-17-05 (version 1.1)
12. Works finance makes payment of service tax collected on 25th of next month, Returns are being submitted half yearly Process Owner : Corporate/Plant Level
13. Local taxes (Octroi etc) are being paid by Works finance EPM Linkage : CVBU-EL-17
14. Works finance files submissions, returns and claims refunds in case of concessions (Finance & Budgeting)
15. Coordinating with Legal Dept. for disputed cases Preparation Date : 31/03/04
16. Works finance prepares schedules, answers to queries of auditors from Excise Dept. and statutory Auditors Modification date : 24/12/04

31.3.2005 17.14
TATA Motors, CVBU Direct taxation

Inputs Key steps in –


w Income tax act & Rules 'Direct taxation'
w Case laws / tax journals 1. Analyzing Union budget, Income Tax
w Double taxation avoidance act, Rules, Treaties and case laws Outputs
agreement 2. Tax planning w Legal compliance
w Union budget 3. Ensuring compliance of tax law and w Avoidance of penalty / interest
w Financial accounts procedures payment
w Directives from Board of Directors 4. Computation and payment of taxes to w Tax saving
w Details of transaction data from Govt. and filing of Return w Tax audit report
Divisions having tax impact 5. Handling assessment / appeal/ notices
w Expert opinion on legal issues 6. Handling Tax Audit

Performance Measure Unit


How it operates (Methods/ Practices)
1. Study effect of changes in Income tax rate, Law as per Union Budget Efficiency
2. Intimating new tax laws and rates to all Divisions for implementation and w Compliance with statutory requirement %
ensuring compliance w Timely payment of taxes %
3. Reviewing data received from Divisions for computation of income tax w Timely filing of returns and claims %
4. Making provision for current tax / deferred tax as per Indian / US GAAP
5. Collection and payment of TDS, issue of TDS certificates Effectiveness
6. Payment of tax and filing of return of income w Minimum tax liability Rs. in crores
7. Appearing before tax authorities, making representation and getting w Reduction in contingent liability Rs. in crores
assessment completed
8. Filing appeal, liasioning with Tax Counsel and attending appeal hearing Sub process : Direct Taxation
9. On receipt of appeal order, lodging claim for consequential effect and obtaining Sub Process Ref : CVBU-EL-17-05 (version 1.1)
refund due. Process Owner : Corporate Finance – Business
10. Preparing income tax schedule for tax audit and providing information and data Planning
11. Collecting data, obtaining valuation report and computing wealth tax payment as EPM Linkage – CVBU-EL-14
per act ( Finance & Budgeting )
12. Payment of wealth tax, filing of return and getting assessment done Preparation Date : 31/03/04
Modification 1 : 30/11/04
Modification 2 : 13/12/04

31.3.2005 17.15
TATA Motors, CVBU Receivable Management

Key Steps in –
'Receivable Management'
Inputs 1. Receipt updation and bank reconciliation
w Customer, Price and Tax master 2. Monitoring and controlling credit limits Outputs
data 3. Incentive payout to dealers / customers w MIS on on receivables
w Sales order 4. Dealer / customer account reconciliation w MIS on incentive payout
w Payment terms and condition of 5. Follow up and recovery of dues w Quarterly sign off with dealers/
order as agreed by management 6. Provisioning of bad debts and write off customers
w Incentive Schemes for 7. Inventory reconciliation and valuation for RSO w MIS on dealership
Dealers/Customers stock financial position
w Invoice 8. Management of Sales tax payment and
assessment

How it operates (Methods/ Practices) Performance Measure Unit


1. Daily receipt updation based on bank information
Efficiency
2. Monthly Bank reconciliation
w MIS within the target date %
3. Periodic line item clearing in dealer/ customer account against invoice details
4. Incentives being credited / paid to dealers / financiers based on offtake / retail performance as per w Early warning on dealership financial status timeliness
incentive schemes framed by Marketing Dept. Effectiveness
5. Bank Guarantee / Security deposit updation and setting up credit limit with reference w Reduction of overdue receivables Rs in cr.
to payment terms and condition w No. of accounts reconciliation with dealers / %
6. Monitoring and reviewing limits,/bank Guarantee . customers
7. Issuing credit to dealer account on account of direct sale commission, interest on delayed delivery, interest on w Control on Credit Management No. of
security deposit defaults
8. Periodic reconciliation of account statement with dealers / customers.
9. Follow up of outstanding with customers and Business Unit
Sub process : Receivable Management
10. Coordinating with Legal Dept. for disputed cases
11. Seeking approval for bad debt provisioning and write off Sub Process Ref : CVBU-EL-17-06 (version 1.1)
12. Reconciliation of RSO stock and valuation thereof by taking confirmation from respective Works and RSOs Process Owner : Corporate Finance – Accounts &
in terms of despatch figure , invoice details and stock transfer memo Taxation
13. Monthly remittance of sales tax to RSO locations EPM Linkage : CVBU-EL-17 (Finance &
14. Preparing sales tax schedule Budgeting )
15. Coordinating in sales tax assessment / appeal cases Preparation Date : 31/03/04
16. Obtaining order from Sales Tax Dept. Modification 1 : 28/12/04

31.3.2005 17.16
TATA Motors, CVBU Receivable Management

Key Steps in –
'Accounts Payment Mgmt' Outputs
Inputs Scope: (vendor payments for material & services.) w Cheques to suppliers,
w Approval of new vendor. 1. Maintenance of master data. contractors
w Service entry sheet/GINs 2. Receipt of invoices from suppliers w Accepted Hundies
w Purchase orders. 3. Invoice verification, payment run w Debit notes.
w Advance request. 4. Process recoveries from suppliers, w Payment advise spool to
w Supplies,invoice. reconciliation. HDFC for supplier payments.
w Recovery advice. 5. Disbursement of payments. w Financial statements
6. Financial accounting & audit. w Reconciled accounts.

How it operates (Methods/ Practices) Performance Measure Unit


1. Add suppliers in master based on approved advice from purchase and MPC/SSG. Update bank Efficiency
master data, pay terms data in the system w Accuracy of data. %
2. Invoices are received by CRDO & executing agency & retained at their end Information flows to w Compliance to statutory requirements. %
Finance for payments through SAP Effectiveness
3. Verify invoices, consider recoveries if any and adjust to amount payable w Timely payment – SSI & non SSI No of Days
(Invoice verification for materials is done by system whereas exceptions are cleared by finance)
4. Incase of service, invoice verification is done by finance
5. Generate hundies in case of BMS supplies
6. Plan and run payment processing system to select transactions, based on the date as per pay Sub process : Accounts Payments Management
terms Sub Process Ref : CVBU-EL-17-07 (version 1.1)
7. Make advance payments based on advance request, make payment for the bills pertaining to Process Owner : Corporate/Plant Level
contract services, capital expenses & other miscellaneous expenses EPM Linkage : CVBU-EL-17 (Finance &
8. Send payment spool to HDFC for cheque printing Budgeting)
9. Receive back entire spool, along with payment reference and upload in the system to update Preparation Date : 31/03/04
pay details. Modification Date : 24/12/04
10. Other bank checks printing & distribution by HDFC and informed
11. Reconciliation of payment at vendor level
12. Prepare schedules and financial statements & forward to corporate finance for consolidation.

31.3.2005 17.17
TATA Motors, CVBU Resource Management

Key Steps in –
Inputs 'Resource Management'
Internal 1. Resource Planning
w Long term plan, annual plan 2. Finalize Resource outflow from Revenue Outputs
w MTR Review Budget w Plans for utilization of funds
w Monthly Sales and Plant Data 3. Work out monthly, income & expenses and w Plans for investment/loans
w Daily expense and collection allocate resources w MIS
data 4. Track daily collection and expenses w Monthly cash flow estimate
w Capex Plans 5. Take decisions on loans & investments w External obligations
External 6. Channelise funds(invest or borrow)
w Market Related, Interest 7. Prepare MIS reports (Board, ED’s, Finance
Rates, Funds Availability committee)

How it operates (Methods/ Practices) Performance Measure Unit


1. Estimate the resource requirements of the company Efficiency
2. Raise funds & plan resources to collect money w Cost of funds %
3. Identify products & Cost w Avg Borrowing levels Rs in crs
4. Keep daily monitoring w Overdraft levels Rs in crs
5. Decide on loans if required w Liquidity Availability Rs in crs
6. Decide to invest excess capital Effectiveness
7. Channelise funds to the required areas w Manage the resource availability with
8. Prepare MIS reports minimum costs %
9. Measure the costs and take corrective action w Adequate return on surpluses %

Sub process : Resource Management


Sub Process Ref : CVBU-EL-17-08 (version 1.1)
Process Owner : Corporate Finance - Treasury
EPM Linkage – CVBU-EL-17 (Finance &
Budgeting)
Preparation Date : 31/03/04
Modification 1 : 30/11/04

31.3.2005 17.18
TATA Motors, CVBU Risk Management

Inputs Key Steps in –


Asset Risk 'Risk Management'
w Risk Parameters Assets Risk
w Assets Valuation Data 1. Identify, control & monitor key Asset risks
w Quotes from Insurance 2. Decide Insurance Policy – risk coverage
3. Finalize Insurance Company Outputs
Companies
4. Policy premium payment, claims, maintenance w Insurance Policies
w Internal Data on Risk Events
5. Identify liquidity, interest and currency risk w Claims settled
w External Valuations/Survey 6. Take risk hedge measures w MIS reports
Reports Currency Risk w Risk Cover Reports
Currency Risk 1. Identify & monitor key exposures w Risk Costs MIS
w Annual and Six months Cash 2. Decide risk coverage and instruments
flow in Foreign Currency (data 3. Decide external risk hedging agencies
from Business Units) 4. Take risk covers and monitor cost
w External data on currency and 5. Feedback on cost transferred to BU
economic development

How it operates (Methods/ Practices) Performance Measure Unit


Asset/ Transit Insurance: (Insurance of plant, building, Transit Insurance) Efficiency
1. To review and assess the probability of event (risk) occurrence w Cost benefit of insurance processes Rs in crs
2. Observe the statutory insurance compliance w Amount of coverage offered Rs in crs
3. Identify assets, determine value for insurance coverage (Valuation by professional valuer) w Claims settlement No. of days
4. Decide Insurance policy at Corporate Level. Decide coverage % (whether 100% or partial) w Exchange loss/gain Rs in crs
5. Call quotations from Insurance companies, negotiate and select. w Risk cover position for company Rs in crs
6. Pay Premium, Lodge claims, Maintain Policies at Plants / Non plant locations
Effectiveness
7. Annual Review of insurance policies coverage and incidents
8. Periodic review of underlying processes involved and cost benefit for existing large policies.
Currency Risk: (regarding foreign currencies, financial assets – liabilities (interest rate risk, credit risk, etc.) Sub process : Risk Management
1. Treasury acts a bank for the Business Unit Sub Process Ref : CVBU-EL-17-09 (version 1.1)
2. Treasury provides a foreign exchange rate to the Business Unit for its budget period and protects BU Process Owner : Corporate Finance - Treasury
at that rate. EPM Linkage – CVBU-EL-17 ( Finance &
3. Treasury then decides to hedge or keep the exposures open and bears the exchange loss or gain. Budgeting)
4. Treasury Department every month makes a report to Finance Committee of Directors (FCOD) of its Preparation Date : 31/03/04
exchange covers and loss/gain position. There is also a weekly reporting to Executive Director Finance. Modification 1 : 30/11/04
5. Treasury every quarter sends a compliance report to the Audit Committee

31.3.2005 17.19
TATA Motors, CVBU Employee Services

Inputs Key Steps in –


w Employee Payroll master 'Employee Services'
data. 1. Payment of Salaries and Wages
w Guidelines on schemes from 2. Disbursement of Loans as per Company Outputs
HR schemes w Payments of salaries to Banks
w Attendance data/leave card 3. Full and Final settlement of employees w Payment to Third Parties
w Third party (HDFC,TKSP,LIC, 4. Manage PF, Superannuation, TEPS, BKY, w Payslips
PF Loan etc.) deductions PSY schemes
advice 5. Payment of separated / ESS Employees
w Loans/savings/declaration & 6. Investments , Financial Accounting
other forms.

How it operates (Methods/ Practices) Performance Measure Unit


1. Collect attendance data / Leave Cards / slips and update in the system Efficiency
2. Process recovery / payment forms like ( IT declarations, third party deduction w Employee Satisfaction Survey %
advices, uniforms, HRA, medical reimbursement, telephones etc.) Effectiveness
3. Process salary cheques and advice to banks
w Timely release of salary By Date
4. Process Loans / advances form (housing loan, PF loan, festival advance etc.)
w Timely filings of returns /schedules By Date
and disburse loans
5. Make full and final settlement of employees on retirement / separation. w Accentuations of data.
6. Process ESS salary & provide cheques /payment advise to banks. w Release of MIS on time. By Date
7. Manage schemes like TEPS, BKY, PSY.
8. Provide Income certificates (form 16) to employees, Pass Financial entries, file Sub process : Employee Services
returns to government, Sub Process Ref : CVBU-EL-17-10 (version 1.1)
Process Owner : Plant/Corporate Heads
Employee services are provided by Locational finance in case of Pune, JSR, LKO EPM Linkage– CVBU-EL-17 (Finance &
plant , where as by Corp. Finance in case of non-plant locations. Budgeting)
Preparation Date : 31/03/04
Modification Date : 24/12/04

31.3.2005 17.20
TATA Motors, CVBU Statutory Audit

Inputs Key Steps in -


w Financial Closing and Reporting 'Statutory Audit' Audited Outputs & Reports :-
Process ( refer document) 1. Tracking Calendars for Review of Accounts by w TML - P&L and Balance Sheet as
w Location TB Audit Committee & the Board . per Schedule VI disclosure
w Schedule of Balances . 2. Agree on Audit Scope , define time line and w TML Cash flow statement .
w Expenditure Variance Analysis Roles and responsibilities . w Related Party info as per AS18.
3. Conduct Physical Verification jointly in w Accounts as per AS 21
w Bank Reconciliation statements
presence of Statutory Auditors w Accounts as per US GAAP
w Internal Audit Reports 4. Provide Schedules , Accounts and Information for
w Minutes of Audit Committee and w Quarterly Accounts As per AS25
Audit.. w Qtly / Annual Results as per SEBI
the Board . 5. Clarify and Resolve Audit issues
w Physical verification Reports on w Auditors Report on CARO
6. Carry out Adjustments arising out of Audit and
Inventory and Fixed Assets . Management decisions w Auditors Report on Accounts and
w List of Disputes cases 7. Clearance and signature of Accounts and issue Cash flow.
w Internal Processes/procedures. Audit Reports w Form 20 F for filing to SEC
w Audited Accounts from the
Associates and Subsidiaries.

How it operates (Methods/ Practices) Performance Measure Unit


1. Decide periodicity and scope of audit. Efficiency
2. Update activity and responsibility schedules in terms of units / location , w Adherence to time targets %
communicate to all concerned and obtain agreement on the same w Compliance to audit requirements. %
3. Provide data to Auditors for Audit Planning Memorandum . w No. of post audit issues. Nos
4. Ensure Physical Verification adjustments are reflected in the system . Effectiveness
5. Obtain information from the respective unit and also monitor closing activities w Number of Audit observations Nos
and liaison with the location & the Auditors to ensure timely completion . w Quality of Accounts -
6. Discuss Audit Report/ Issues at the respective unit level and ensure
appropriate resolution of the same .
7. Submit annual report for Shareholders approval. Sub process : Statutory Audit
8. Discuss , Clarify and Resolve audited issues at the location and Resolve SRM Sub Process Ref : CVBU-EL-17-11 (version 1.1)
points centrally level issues Audit and finalization of report after discussions Process Owner : Plant/Corporate head
with Auditors. EPM Linkage– CVBU-EL-17 (Finance &
9. Presentation ,discussion and approval of Accounts in Audit Committee. Budgeting)
Preparation Date : 31/03/04
Modification Date : 30/12/04

31.3.2005 17.21
TATA Motors, CVBU Manage Investor Relations

Inputs Key Steps in –


w Financial performance (Qtrly / 'Manage Investor Relations'
1. Communicating the Company performance to Outputs
Annually) w Quarterly Review
w Monthly Sales Performance the Investor community
2. Interaction with Analysts & Fund Managers w Investor Presentations
w Strategy directions – Internal w Q & A folder for management
w Analyst Reports - External 3. Participation in Investors Conferences
4. Expand & Diversify Investor base w Monthly Inst. Investor
w Performance benchmarks of Shareholding Report
5. Feedback of Analyst expectations to
domestic and international auto w Analyst Expectations
management
companies - External 6. Status of Institutional Investor participation
w Stock performance - External

How it operates (Methods/ Practices) Performance Measure Unit


1. Monthly Sales performance/specific event Efficiency
2. Interact with the Analysts on the sales trend and impact on company of the related w Timeliness of Communication
event (after the receipt of base report) No. of days
3. Quarterly Financial result
4. Prepare the replies for expected analyst queries on the result Effectiveness
5. Prepare quarterly review w Relative Stock performance Bps
6. Email the review to investor community, simultaneous posting of review on website w Inst. Investor Holding % change in
7. Meeting with Analysts and visiting Fund Managers holding
8. Co-ordinate with ED’s office for meeting with Fund managers
9. Prepare company presentations outlining strategy and financial performance for Sub process : Manage Investor Relations
Investors conferences Sub Process Ref : CVBU-EL-17-12 (version 1.1)
10. Target potential investors and organize non-deal road shows for interaction with Process Owner : Corporate Finance - Investor
the management Relations Dept.
11. Prepare monthly Inst. Investor holding status report EPM Linkage : CVBU-EL-17 (Finance &
12. Provide feedback to management about the analyst expectations Budgeting)
Preparation Date : 31/03/04
Modification 1 : 30/11/04

31.3.2005 17.22
TATA Motors, CVBU EVA Drilldown

Key Steps in –
Inputs 'EVA Drilldown'
w LOB-wise Sales Volumes 1. Delineating CVBU EVA drivers between Plant
w Net Realizations & Marketing Outputs
w Plant-wise model-wise sales 2. LOB-wise Revenue drivers, Variable Cost w Revenue & Cost driver sheet for
volumes Drivers LOB
w Material consumption 3. Basis of Fixed Cost (Mktg.) allocation w Cost driver sheet for plant,
w Expenses incurred 4. Plant-wise Cost Drivers business unit and LOB
w Activity carried (SMH) 5. Material consumption w Quarterly Report / Half yearly
w Manpower break up 6. Expenses under diff heads at the shop level report for business unit / LOB.
w Written down value of assets and 7. Driver drill down sheets for each sales region,
WIP plant and business unit.

How it operates (Methods/ Practices)


1. Get details like Performance Measure Unit
6 VC’s sold during the period from respective manufacturing plants Efficiency
6 Dispatches to SPD and interplant from respective plants w Movement of EVA Drivers (Revenues
6 Temporary manpower details for each business unit / Costs / Capital) for different operating
6 Over Time utilization data from each unit. levels Rs
6 Expense details for each cost driver.
2. Devise driver trees for different decision making levels based on the variables Effectiveness
under control at each level
3. Integrate financial measures of BSC into Driver Trees in terms of volumes sales,
revenues,variable expenses, working capital, production, variable m a n u f a c t u r i n g Name of Sub process : EVA Drill Down
exp. fixed costs, plant working capital and fixed assets Sub Process Ref : CVBU-EL-17-13 (version 1.1)
4. Provide Excel-based EVA Driver Tools to the operating managers to understand Process Owner : Corporate Finance – Business
the impact of each variable on EVA driver contribution of individual process, prepare Planning
driver sheets for LOB & get feedback from operating units Linkage with EPM – CVBU-EL-17
5. Compare with budgeted driver values and last period driver values (Finance&Budgeting)
6. Evaluate all the capital budgeting proposals fulfilling certain criteria using EVA Preparation Date : 31/03/04
Capital Budgeting Excel Tools. Modification 1 : 30/11/04

31.3.2005 17.23
TATA Motors, CVBU Vehicle Financing

EPM Process No: CVBU-EL-18

EPM Process Name : VEHICLE FINANCING THROUGH TMF

Principal Process Owner: A I Rebello - Chief TMF

Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-18-01 Channel Development Business Heads / RMs

CVBU-EL-18-02 New Products Business Heads / RMs

CVBU-EL-18-03 Disbursements Business Heads / RMs

CVBU-EL-18-04 Collection V R Likhite

CVBU-EL-18-05 Risk Analysis S K Jain

31.3.2005 18.1
TATA Motors, CVBU Vehicle Financing

PROCESS DEFINITION SHEET


Process Identification No. (PIN) CVBU- EL- 18 Higher Level Linkage-
Process Title- Vehicle Financing Process Owner Mr A I Rebello Chief (TMF)
Process Objective- Support Sales Growth of Vehicles
INPUT KEY STEPS OUTPUT
w CVBU marketing strategy Ø Channel Development ü Market Reach
w Information on market penetration, customer Ø Offer new products ü Market Share
database and customer preferences Ø Disbursements ü New schemes of finance
w Information on customer profile from
dealers/sales staff Ø Collection ü Finance provided / Contracts
w Pipeline sales information Ø Risk Management completed.
w Information of competitors ü Improved cash-flow cycle
w Availability of cheap funds ü Reduction in overdues
w Information on contracts with customers ü Growth in profits, Reduction in
w MIS on live contracts, overdues. NPAs
w BHPC Unix-based IT application system ü Asset repossession
w Continual decision making on TMF margins

In-Process/ Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure
Delay in contract booking Delay in contract booking Recovery as per Schedule (TMF) %
New Product sale increase, Increase in customer base Nos. Vehicles financed through TMF, Nos.
No. of contracts booked, CMS at branches % increase in marketshare over
Nos. previous quarter, Retention of Market Share, NPAs as % of SOH %
Repossessed vehicles, No. of contracts Processed
Loan Disbursals, Penalty collected Rs. financing Profit, ODMR, BHPC share increase in new product Rs., %, %
Divisions Involved Vehicle Finance, Dealer Development, Dealer, TSS
End Customer- Customers of Vehicles
Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS 16949 (2002) Clause Ref..
Process Revision / Modification History-
Date of Modfn. Modification No Details of Modification Issued / Modified by Approved By
01/06/03 00 New Release BES, Pune
31/3/04 01 Updation of changes w.r.t. organizational restructuring BES, Pune

31.3.2005 18.2
TATA Motors, CVBU Vehicle Financing

Process Owner : Chief (Tata Motors Finance)


Process objective : Support Sales Growth of Commercial

To Finance through TMF


Page-2 Dealer / TSS /TMF

-Review and -Review Schemes Understand Review Annual


Decide overall offered by TMF financing needs Yes Performance
Vehicle -Review and Design of individual and Prepare
Financing Incentive and customer and Budget for next
Strategy, targets Promotional suggest year
for TMF schemes fand financier TMF
communicate to suitable to his Suitable
Chief - TMF Dealers needs ? Chief- TMF

Chief- TMF / Dealers/TSS


Sales Head / Rms
No

Financing Through
Inputs- External Financers
- CVBU’s overall strategy
(Market Expansion for vehicles, Revenue &
Profit target, Increases in Non Cyclic Business),
- Financing requirements from End Customers Dealer / TSS
(Territory wise, Segmentwise, Customer profitwise,
- Overall financing Industry scenario (Territory &
Segment wise Players, Interest rates, Financing
norms)
- Competitor activities
- financial Health of Dealers,
- Available of Finance and cost & risk of
financing for TMF
- Dealer Network Expansion Plans
- Regulatory Requirements

31.3.2005 18.3
TATA Motors, CVBU Vehicle Financing

Process Owner : Head of TMF


Page 2 Vehicle Financing Process objective : Support Sales Growth Vehicle

No Yes
Outputs- Accident Insurance
Repossession and
Sale of Vehicle case ? Claiming and
Auction of Vehicle
through Dealer/TSS, settlement
TMF
Recovery schedule, TMF
Hire Purchase Yes No
Agreement payment
From
Page-1 received?

Review and Follow up for Balance Passing


Allocate Manage Agents -Monitoring & Payment Ownership to
Financing
Resources -Dealers Recovery of Dealer / TMF Customer/
Customers of Tata
(Funds, -Collection agents Finance Insurance Co. /
Vehicle
Agents -Direct Marketing Agent -Recovery Successful
-through TATA CP’s No
and -Repossession agent Performance Bidder
-through DM
Manpower) review Full
Agents
/ measurement payment
Head of TMF TMF TMF received? TMF
TMF
Yes

Passing
Inputs- Inputs- Ownership to
-Territory wise potential Customer Proposal Inputs- Customer/
and target for TMF through Dealer / Insurance Co. /
Fund requirements TSS, Repayment Successful
Guidelines from Credit Availability, from Bidder
Corporate Finance Vehicle Finance Customers TMF
Past Performance of Policies
Agents
Government Regulations To
Page-1

31.3.2005 18.4
TATA Motors, CVBU Channel Development

Inputs
w Feedback regarding market Key Steps in –
'Channel Development' Outputs
penetration from RMs/ sales Staff w Market Reach
w Pipeline sales information. 1. Analyse the input data and information
2. Based on the above analyses, open new w Market Share
w Customer database from TML sales.
w Information of competitors branches for TMF
3. Appoint new service providers – dealers,
DMAs and collection agents

How it operates (Methods/ Practices) Performance Measure Unit


1. Study feedback on market penetration from field, pipeline sales information, Efficiency
competition offerings to seek areas to focus on w Loan disbursals Rs. in crs.
w Increase in customer base Nos.
2. Enhance branch network to attract more customers. Increase number of
branches and appoint Regional Representatives Effectiveness
w Vehicles financed through TMF Nos.
3. Appoint new service providers – Dealers to increase their participation for dealer w Percentage increase over previous Percentage
driven business with TMF, Service Providers (Feet on street), MSP / CSP and quarter
Retainers for approaching potential customers & securing contracts.

Sub process : Channel Development


Process Ref : CVBU-EL-18- 01 (version 1.1)
Process Owner : Business Heads/ RMs
EPM Linkage – CVBU-EL-18
Preparation Date : 31/03/04
Modification Date : 31/3/05

31.3.2005 18.5
TATA Motors, CVBU Offer New Products

Key Steps in –
Inputs 'Offer New Product'
w Information of competitors 1. Study the input data including data Outputs
w Availability of cheap funds competitors w New Schemes of Finance
w Feedback regarding customer 2. Design/ evolve new offerings to attract more w Market Share
preferences from RMs/ sales Staff customers – in terms of interest rates,
w Pipeline sales information. tenure, amount and discounts
3. Introduce new offerings for customers

How it operates (Methods/ Practices) Performance Measure Unit


1. Study the input data including data on competitors Efficiency
2. Design/ evolve new offerings to attract more customers – in terms of: w Loan disbursals Rs. in crs.
w New Product Sale increase Nos.
6 Competitive Rates – Obtain funds at low interest rates.
Offer loan rates that are comparable with those of competitors, so as to protect the existing market Effectiveness
share. w Vehicles financed through TMF Nos.
6 Loan Tenure – Making financial assistance of TMF more attractive through schemes like “5year w BHCP Share Increase in new Percentage
product financing
loan tenure”
6 Loan Amount – Flexibility in the quantum of finance provided for big customers, eg. Fleet
operators.
6 Discounts – Offer waiver of charges, special rates etc. during certain festivals and occasions like
Sub process : Offer New Product
new vehicle launch, to boost TML sales & TMF disbursements.
Process Ref : CVBU-EL-18- 02 (version 1.1)
3. Introduce new offerings for customers
Process Owner : Business Heads / RMs
EPM Linkage – CVBU-EL-18
Preparation Date : 31/03/04
Modification Date : 31/3/05

31.3.2005 18.6
TATA Motors, CVBU Disbursements

Inputs Key Steps in – Outputs


w Information on customer profile from 'Disbursements' w Finance provided / Contracts
dealers/sales staff. 1. Appraise documents from customers completed.
w Information on contracts with 2. Process the documents
customers from dealers. 3. Disburse loans, if found eligible

Performance Measure Unit


How it operates (Methods/ Practices)
Efficiency
1. Appraise documents from customers w Delay in contract booking Days
Effectiveness
2. Contract processing & booking – Processing contracts & verification against norms w No. of contracts booked Nos.
by external service provider.

3. Loan disbursements – Issuing cheques for contracts booked.

Sub process : Disbursements


Process Ref : CVBU-EL-18- 03
(version 1.1)
Process Owner : Business Heads/ RMs
EPM Linkage – CVBU-EL-18
Preparation Date : 31/03/04
Modification date : 31/3/05

31.3.2005 18.7
TATA Motors, CVBU Collection

Key Steps in –
Inputs 'Collection'
Outputs
w MIS on live contracts. 1. Arrange collection of receivables through
w Improved cash-flow cycle
w MIS on overdues. CMS, retainers and dealers
w Reduction in overdues
w BHPC Unix-based IT application 2. In case of defaults beyond 2 months, initiate
w Growth in profits, Reduction in NPAs
system repossession activities
w Asset repossession
3. In case of persistent defaults, initiate legal
action with help of legal department

Performance Measure Unit


How it operates (Methods/ Practices)
1. Arrange collection of receivables through: dealers Efficiency
6 Cash Management System – Implementation of CMS at branches for faster w CMS at branches Nos.
access to EMIs collected by dealers. w Repossessed vehicles Nos.
6 Retainers – Appointing retainers to follow-up with dealers/customers for w Penalty collected Rs.
overdue recovery. w Recovery as per schedule %
6 Dealers
2. Repossession activities involve taking back the financed vehicles in As Is Effectiveness
Condition w Profit Rs. in crs.
3. Legal Action – To initiate legal action for recovery after two consequent defaults. w ODMR Percentage
It also involves imposition of penalty for overdues & its collection
Sub process : Collection
Process Ref : CVBU-EL-18- 04 (version 1.1)
Process Owner : VR Likhite Chief
Operations(TMF)
EPM Linkage – CVBU-EL-18
Preparation Date : 31/03/04
Modification Date : 31/3/05

31.3.2005 18.8
TATA Motors, CVBU Risk Management

Key Steps in –
Inputs
'Risk Management' Outputs
w Information on customer profile from
1. Analyse input data for nature of w Reduction in NPAs
dealers/sales staff.
violations by customers w Asset repossession
w CVBU marketing strategy
2. Create/ update norms based on
w Continual decision making on TMF
inputs
margins
3. Deploy above norms

Performance Measure Unit


How it operates (Methods/ Practices)
1. Analyse input data for nature of violations by customers Efficiency
2. Create/ update norms for lending based on analysis of inputs w No. of contracts Nos.
received Effectiveness
3. Deploy above norms w NPA as percentage of SOH Percentage

Sub process : Risk Management


Process Ref : CVBU-EL-18- 05
(version 1.1)
Process Owner : SK Jain Chief Credit &
Risk(TMF)
EPM Linkage – CVBU-EL-18
Preparation Date : 31/03/04
Modification Date : 31/3/05

31.3.2005 18.9
TATA Motors, CVBU Organisational Governance

Organisational Governance

EPM Process No: CVBU-EL-19

Principal Process Owner: P P Kadle - ED (Finance & Corp Affair)

Sub_Proc No Sub Process Name Sub Process Owner

CVBU-EL-19-01 Manage Organizational Governence Board of Directors

CVBU-EL-19-02 Manage Business Ethics Chief Ethics Counsellor / Location Ethics Counsellors

CVBU-EL-18-03 Manage Busines Risk ED CVBU & Steering Committee.

31.3.2005 19.1
TATA Motors, CVBU Organisational Governance

PROCESS DEFINITION SHEET

Process Identification No.(PIN) : CVBU-EL-19 Higher Level Linkage-


Process Title Organizational Governance Process Owner Mr P P Kadle ED (Finance & Corp Affairs)
Process Objective Protect shareholder value. Ensure ethical behavior & transparency.
INPUT KEY STEPS OUTPUT

§ Statutory Requirements Ø Get and analyse inputs. Create / review governance structure, ü Assurance of good
§ Audit findings. Define responsibilities & authorities. governance to stake holders.
§ Stakeholder expectations Ø Manage Business risk ü Statutory compliance.
§ Survey findings. Ø Manage Business Ethics ü Enforcement of TCOC for
§ TCOC Ø Organize internal audits/statutory audits & surveys. assuring ethical conduct of
§ GEO guidelines business.
Review audit/survey findings, Procedure Improvement feedback to BOD
ü Checks & controls for
mitigating business risks.
In-Process Measure Unit of Measure Output Measure / End Measure Unit of Measure
% functions covered under BRM Nos. Implementation of internal audit accepted recommendation. R-Y-G
risk assessment by internal audit. Percentage No. of TCOC concerns resolved in target time Nos.
Accuracy of the reports Percentage Observations made by external auditors/assessors.
Timeliness of reviews & reports Percentage No. of concerns resolved in target time No
100% grievances from investors resolved. Percentage
.Functions/Dept. covered under risk management. 100% independent directors
%legal compliance, risk control rating. 100 % statutory compliance Percentage
Improvement in MBE & OHS indicators. Percentage
Divisions Involved - Corporate/Locational Finance & Internal Audit.
End Customer - Other Functions
Core Values Embedded Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship
ISO / TS16949(2002) Ref. 5.4
Process Revision / Modification History
Date of Modfn. Modification No. Details of Modification Issued / Modified by Approved By
31/3/04 00 New Release BES, Pune
31/3/05 01 Modification through process review Process Team

31.3.2005 19.2
TATA Motors, CVBU Organisational Governance

Manage Business Risk Process Owner : Board of Directors


-Identify, evaluate risk and Process Objective : Protect Share holder value.Ensure ethical behavior
set controls and transparency
-Self Assessment by Process
Owner & Report
Get and analyse
-Independent review of
inputs on -Create / review Outputs-
selected
stakeholder Governance -Assurance of good
processes by internal Audit
expectations, Structure, Governance
and report
statutory Define -Statutory Compliance
-Corrective action by Process
requirements, responsibilities and Enforcement of TCOC
Owner
Audit authorities -Check & controls for
findings, Survey mitigation of business risk
ED and Steering Commitee
findings Board of
Board of Directors
Directors Manage Business Ethics

- Establish MBE Framework


- TCOC Training -Receive of the process
- Establish concern and Survey Findings
resolution -Process Improvement
mechanism -Feedback to BOD
- MBE Survey
Chief Ethics Counsellor
Inputs- Chief Ethics Counsellor Chief Internal Auditor
-Statutory Audit Committee
Requirements
-Audit Findings Organise Audits
-Share holdes
expectations -Organise Internal / External
-Survey findings Audits / Surveys
-TCOC
-GEO Guidelines Functional Heads

31.3.2005 19.3
TATA Motors, CVBU Manage Organisational Governance

Inputs
Key Stepsin – Outputs
w Stakeholder expectations
'Organizational Governance' w Governance committees
w Guidelines, Rules and
1. Stakeholder engagement for getting w Remuneration policy for directors
Regulations, Statutory requirement
expectations and concerns w Infrastructure for Investor Grievance
w Tata Code of Conduct
2. Create/ Review Organization Structure for w Infrastructure for Code of Conduct
w Group Purpose Statement
governance w Governance policies, guidelines,
w BRC/Strategy inputs
3. Conduct meetings and reviews reports
w Audit Committee Charter
4. Organize audits and surveys
w Internal Audit Charter

How it operates (Methods/ Practices) Unit


Performance Measure
1. Stakeholder engagement –
6 Directors and Leadership continuously interacts with various stakeholders to get their expectations and concerns. Efficiency:
They also interacts with government agencies and take proactive inputs. Quarterly and Half-yearly meetings with w Attendance of Directors in meetings %
investors and shareholders are organized to convey performance and to get their inputs. All other inputs such as
rules and regulations, strategy, code of conduct, etc are taken and analyzed for overall governance
w No. of meetings Nos
2. Create/ review Organization Structure for governance– w Timeliness of reviews and reports %
6 Board of Directors appoints Executive Directors and Sr. Executives for managing operation. Various Committees
(such as Management Committee, Audit committee of directors, Investor Grievance, Remuneration, etc ) are formed. Effectiveness
Roles and responsibilities are defined and powers are delegated. Shareholders appoint the statutory auditors at the w 100 % Statutory compliance %
Annual General Meeting. w % independent directors %
3. Conduct meetings and reviews –
6 Directors and Leadership get regular feed back reports from Functional heads and committees. They also conduct w % Grievances from Investors’ resolved %
reviews to monitor deployment of strategy and ensure statutory and legal compliance.
4. Audit Committee Management-
4a. Audit committee comprises of three Independent directors. The Committee recommends appointment of the Statutory Sub process : Manage Organizational Governance
auditors for shareholder approval. The Audit plans, Significant audit findings, adequacy of internal controls, Sub Process Ref : CVBU-EL-19- 01 (version 1.1)
compliance with Accounting standards and the Financial Statements are reviewed by the Committee. The Chairman Process Owner : Board of Directors
of the Audit Committee is present at the AGM to answer shareholder’s queries and clarification on matters relating to
audit. The Audit Committee has approved a Whistle Blower Policy for the Company which protects the Whistle
EPM Linkage : CVBU-EL-19- Organizational
blowers. Governance
4b. To ensure independence and objectivity of the Internal Audit function, the Chief Internal Auditor reports to the Preparation Date : 31/03/04
Audit Committee. Internal Audit plans are based on the Business Process approach, which ensures coverage of high Modification Date : 31/03/05
risk areas every year and all business processes over three years. Internal Audit findings, the action plan and its
implementation are discussed and reviewed at all levels of Management. Critical observations and action plans are
reviewed at the Audit Committee meeting, at least every quarter along with Actions Taken Report.

31.3.2005 19.4
TATA Motors, CVBU Manage Business Ethics

Key Steps in –
Inputs 'Manage Business Ethics'
w Tata Code of Conduct(TCoC) Outputs
1. Establish framework for MBE
w Tata GEO’s guidelines for impl. of w Enforcement of TCoC
2. Training and communication to all employees,
TCoC w MBE findings
suppliers and dealers
w The CEC, LEC & DEC feedback w OHS findings
3. Concerns resolution mechanism
w Survey Findings 4. Reporting and sharing
5. Evaluations and improvement

How it operates (Methods/ Practices) Performance Measure Unit


1. Establish framework for MBE– Efficiency
6 Appointment of Chief, Location & Divisional Ethics Counsellor(s). The mechanism to receive and w No of Concerns resolved to No of %.
resolve concern is put in place at each location. CEC functionally reports to Ethics Counselor of Tata Concerns posted in a year %
Group w Concerns resolved in target time
2. Training and communication –
6 A common training module which covers Tata Code of Conduct. TCoC training is a mandatory Effectiveness
training to all newcomers. After the training a pledge is signed by the employee for adopting the w % improvement in MBE and OHS %
TCoC. indicators
3. Concern resolution mechanism –
6 A concern resolution mechanism exists. Concerns are filed with the CEC/LEC/DEC through emails,
letters (including anonymous letters), intranet, direct lines, Toll free ethics help line, meetings with stake
holders, etc. The concerns are recorded with their updated status in an MS Access database. Sub process : Manage Business Ethics
Appropriate agencies are involved for concern resolution by the Ethics Counselors. The resolution Sub Process Ref : CVBU-EL-19- 02 (version 1.1)
of the concern is communicated to the complainant, if known. Process Owner : Chief Ethics Counselor/ Location
4. Reporting and sharing – Ethic Counselors
6 CEC / LEC report their monthly and quarterly findings to the management as appropriate. The data are EPM Linkage – CVBU-EL-19
also shared on the intranet (Organizational Governance)
5. Evaluation and Improvement– Preparation Date : 31/03/04
6 Based on the OHS and MBE survey findings, action plans for gaps found are prepared. Modification Date: 31/03/05

31.3.2005 19.5
TATA Motors, CVBU Manage Business Risk

Inputs
w Key business process of each Key Steps in- Outputs
function/ department 'Manage Business Risk' w Documented key Procedures
w Business Risk Management 1. Identify and evaluate Business risk , set controls w Checks and controls for mitigating
Guidelines from Tata Motors Audit 2. Self assessment by process owner & Report. risks
Committee 3. Independent review of selected processes by w Internal Audit Assessment feedback
w Standard business risk control Internal Audit.
rating chart. 4. Action on Audit feedback, process review

How it operates (Methods/ Practices) Performance Measure Unit


1. Identify and evaluate Business risk , set controls
6 Divisional / Functional head appoints Risk Champion / co-ordinators Efficiency
6 Risk Champion alongwith respective process owners identifies risks (Financial, Operational, Safety, w Functions / depts covered under risk No
regulatory) management
6 Risk Champion documents the process and defines control mechanisms to mitigate the risk and
defines review frequency.
6 Risk champion along with process owner modifies the process, automates where ever possible, Effectiveness
puts system controls. w % Legal compliance %
2. Risk Management through Control Self Assessment (RMCSA) w No of Issues raised by Internal Audit No.
6 At a pre-defined time interval, Individual Process owners carry out control self assessment for their w Risk Control Rating Index
processes under the leadership of their risk champion to ensure the adequacy ofcontrols. Internal
Audit facilitates this process of RMCSA.
Sub process : Manage Business Risk
3. Enterprise wide risk management (ERM)
6 An 8-step process for ERM, based on COSO-ERM framework, is now being implemented (Planned Sub Process Ref : CVBU-EL-19- 03 (version 1.1)
date of completion : Mar-May 2005). Process Owner : ED and Steering Committee
4. Independent Review by Internal Audit EPM Linkage – CVBU-EL-19 ( Organizationalovernance)
6 Internal Audit conducts reviews of selected processes and gives feedback to process owner and Preparation Date : 31/03/04
Audit Committee Modification Date : 31/03/05
5. Review and improve the process
6 Process owners review the processes based on audit feedback for the process improvement

31.3.2005 19.6