OPERATIONS MANAGEMENT

ASSIGNMENT – 1 (TERM II)

10 STRATEGIC PROF. RAJESH KR, SINGH
Management Development Institute, Gurgaon

Submitted By: Akshar Pandya | 20PGPIB064

DECISION AREAS
– TVS MOTORS
 10 Key Decisions Areas
1. Design of Goods and Services
TVS Motor manufactures the largest range of 2-wheelers, starting from mopeds, to scooters,
commuter motorcycles, to racing inspired bikes like the Apache series and the RR310. TVS
Motors aims to answer the requirements of the customers. TVS Motor’s strength lies in its
extensive research and development, resulting in products that are industry leading in terms of
innovation. TVS delivers total customer satisfaction by anticipating customer need and
presenting quality vehicles at the right time and at the right price. TVS has always stood for
innovative, easy-to-handle, and environment-friendly products, backed by reliable customer
service.
2. Managing Quality

TQM has always been a way of life, towards driving sustainable growth across the entire
chain of suppliers, dealers, stakeholders and community. Continuous drive on cross -
functional cluster approach to achieve breakthrough has helped significantly the business
processes in the Company.

Several initiatives taken as part of policy management process, has facilitated implementing
breakthrough initiatives like BS-VI transition, cost reduction and International business
market growth. Emphasis on adhering to Daily Work Management practices was continued
for retainment. Towards TVS Way permeation, 170 managers were trained on TVS way of
working for developing champions and cascading the initiatives in the respective functions.

Total Employee Involvement continues to be the strong area, with focus expanding from
functional excellence to contribution towards business results through theme-based kaizens.

3. Process and Capacity Design

In process design all efforts have been taken to minimize the generation of waste by
introduction of clean technologies viz., water based CED process; powder coating, etc. The
new paint plant in plant-2 has been incorporated with a dry booth to overcome the usage of
water. 2W paint plants in Hosur and Mysuru have VOC abatement in paint baking oven through
RTO (Regenerative Thermal Oxider). The waste heat from RTO is recovered and used back for
process bath heating. The company has an annual sales of 3 million units and an annual capacity
of over 4 million vehicles. TVS Motor Company is also the 2nd largest exporter in India with
exports to over 60 countries.

4. Location Strategy

The company has three manufacturing plants located in India - Hosur in Tamil Nadu, Mysore
in Karnataka and Nalagarh in Himachal Pradesh. With the manufacturing facilities present in
both northern and southern regions, TVS motors has positioned itself strategically to cater to
the demands of the market all across the country. The capacity of plants at Hosur and Mysore
exceeds that of Nalagarh in accordance with the demands from the regions

5. Layout Strategy
 The company works on a product based layout. The work stations and equipment are located
along the line of production, as with assembly lines. This saves production time as well as
adds cost benefits to the product.
6. Human Resources and Job Design

Constituents of Human Resources Development framework followed at the Company include

Workforce planning, Employee engagement, Performance & Compensation management,
Learning and Development, Career & Succession planning and Organization Development.
Towards sustenance and delivering improved results, these constituents have a structured
approach, policies and standard operating procedures which are reviewed and updated
periodically.

Current and future Skill-based competency development are planned and executed through both
in-house programs and globally acclaimed programs, continuing education, challenging project
assignments and job rotations. The Company continues to maintain its record of good industrial
relations without any interruption in work. As on 31st March 2020, the Company had 5,133
employees on its rolls.

7. Supply Chain Management

TVS Motors has been investing heavily in its supply chain management. TVS has
been endeavouring to work jointly with its suppliers and dealers for ensuring end-customer
satisfaction and delight. Being a large corporation, TVS ensures that smaller suppliers and
dealers dependent on it are able to grow in their own right. But along with facilitating that
objective, it has also ensured that it provides right type of training and assistance to its suppliers
and dealers, wherever needed. This enables the smaller companies to rise to high quality
standards in order to be relevant in the fiercely competitive Indian and international markets.
This collaborative approach highlights the TVS philosophy towards its suppliers and dealers,
some of whom have been working with the Company since its inception in 1979.

8. Inventory Management

The inventory management of TVS motors is good but lacks innovative approaches. As a part
of the inventory, the company has got both kinds of goods – the raw materials for the production
of the new vehicles and the finished goods as well. This makes it good and ready for shipment.

9. Scheduling

When it comes to scheduling, TVS motors publishes a proper schedule of the various operations
that need to be carried out. The scheduling gives them the benefit of tracking their progress and
adhering to the timelines, improving the quality and productivity.

10. Maintenance

TVS motors takes up the maintenance of its products very seriously. It has provided information
on the various models and their maintenance schedule as well as the maintenance work that
needs to be carried out. The company stresses on the need for proper flow of information
regarding the maintenance work in order to keep the quality standards at best.