SUPPLY CHAIN MANAGEMENT of TATA MOTORS AND MARUTI SUZUKI

SUBMITTED BY Amar Jyoti (12PGDM128) Ankur Chaturvedi(12PGDM131) Manish Kumar(12PGDM87) Michael Mangalam(12PGDM89) Subham Gupta(12PGDM111)

OBJECTIVES OF STUDY
• Study of vehicle manufacturing processes from raw material to finish vehicles. • Comparision of supply chain management at tata motors and maruti suzuki

with revenues of US$ 34.575 billion (2012) 2 • Winning products in the compact.1 • India’s largest automobile company. midsize cars and utility vehicle segments 3 • The Company’s 60000 employees are guided by the vision to be “best in the manner in which we operate. best in the products we deliver and best in our value system and ethics” 4 • World’s fourth largest truck and second largest bus manufacturer 5 • The first company from India’s engineering sector to be listed in New York Stock Exchange 6 • Subsidiaries are Tata Daewoo. Tata Technologies. Tata Hispano. Jaguar and LandRover .

25 L Hereafter we have limited the scope of study to a single location which is Passenger Car Business Unit (PCBU). K Block. Passenger Carrier (Magic) Tata Nano 2.5 L and HCVs.7 L Pune Commercial Vehicles (MCVs 2. Marina. Pune . Utility vehicles) Trucks & Special Purpose Vehicles Buses 1. LCVs. Indica Vista) Production Capacity(Lakh/PA) 2.08 L 0.Plant Location and production Capacity Location Pune Type of vehicle manufactured Passenger Cars (Indica.6 L Jamshedpur Lucknow Pantnagar(Uttarakhand) Sananand Mini Truck (Ace). Indigo.

identifying new suppliers. Tata Motors tried innovative techniques such as zero-based costing • Believed in developing strong in house design. eg.Competitive Priorities for TATA Motors 1 • Maintaining global standards to tackle competition • For luxury bus segment: its major focus is on the fully-built vehicle delivery rather than supplying only chassis • Diversified suppliers. leading to better supply management • To cut costs. and manufacturing capabilities 2 3 4 5 6 . NANO car has more than 128 suppliers • Sourcing through reverse auction which includes evaluating suppliers. engineering.

seeking prospects for modifications in the Productivity current assembly lines. evaluation. Test Tracks. training and development. Designing and Styling and Safety • necessary technical assistance for smooth production in the plant Technical & • Functions includes setting up new assembly lines. Pune HR • Formalized selection.improving Engine Performance. Services Production • Group carries out production as per the production plan prepared by production planning and control (PPC) Vendor Developmen t • Small parts are outsourced to various vendors. capabilities and skills management. Engineering & Research Centre • The facility includes . compensation planning records etc. due to various in-house constraints • Identifies the appropriate vendor and ensures proper quality standards . etc. and payroll processes • Records basic selection. Reducing Emissions.Management Hierarchy of PCBU.

they are stored in large free space available in the company premises • Some special purpose vehicles such as utility vehicles for defence. mini-ambulance for hospitals are made as per the order .Production Strategy Followed in TATA Motors Passenger Car Division in 'K' block executes the entire process of car manufacture over five shops Engine shop Transmission shop Press and body shops Assembly shop Paint shop 1 2 3 4 5 • The shops are fully automated ensuring that there is minimal chance for error in the manufacturing processes • Production Strategy being implemented in Tata Motors is ‘Make to Stock’ • Demand forecast is done by the marketing team and accordingly a production plan is prepared • The cars produced are tested thoroughly and after successful completion.

Plant Layout of PCBU. Pune Machine Shop Engine Shop Press Shop Paint Shop TCF .

regulars quality audits held by in-house auditors 4 • Post manufacturing -stringent testing standards such as shower test. wheel balancing .Quality Management 1 • Has introduced cleaner engines 2 • First Indian company introduce vehicles with Euro I and Euro II norms 3 • Manufacturing stage .

Government.ENVIRONMENTAL MANAGEMENT 1 • Reduce the emission levels of vehicles in full compliance of the regulatory norms 2 • proactively work with the industry. other related industries & agencies to bring in international practices 3 • Conserve natural resources and energy by minimizing their consumption & wastage 4 • Certified with ISO 14001 : 1996 for Environmental Management System (EMS) .

Quality. Cost and Morale) 3 • Suggestion scheme .incorporates SQDCM (Safety. Delivery. employee gets rewards points 4 • Gift voucher for achieving certain number of points 5 • Bonus on certain festive occasion . if approved.any employee irrespective of his cadre can suggest an improvement in the work place .WORK MEASUREMENT 1 • first Indian Company to introduce the Balance Scorecard System in automotive sector in India 2 • Balance Scorecard System .

VALUE ENGINEERING 1 • Continuous efforts are made to reduce the cost of service 2 • Rejection of input parts received from vendors closely monitored 3 • Vendors penalised if rejection exceeds beyond the defined limits 4 • consumption of electricity. Compressed air . water.continuously monitored . LPG. steps taken to reduce their consumption .

. • invoice verification.MATERIAL MANAGEMENT Tata Motors uses SAP 4. • inventory management. • purchasing.6C Material Management (MM) module for: • materials planning and control. • goods receiving.

REVERSE ENGINEERING Reverse engineering is a process by which the design of a product is analysed or re-created using a physical part or mock-up as a starting point. This becomes truly valuable when trying to extract the design intent from a handmade model Tata motors does reverse engineering of its competitors cars in an effort to constantly improve on the design of its cars .

. paint. On comparing the human capital utilization with that with the best in the business. require special waste management arrangements. and scrap metals and plastics. TATA motors was found lagging behind. Efficient utilization of Human resource • Efficient utilization of human capital is always a questionable task. Hazardous cleaning chemicals very common.Problems identified Waste management and hygiene issue • Major environmental wastes: machine lubricants and coolants. aqueous and solvent cleaning systems.

Items not arranged in a manner that promotes efficient work flow (eg : Workers had to bend repetitively to access materials) Each tool. than the assembly line has to stop till the new Unorganised flow path • The place for each item was not clearly labelled or demarcated.Tools management • Lot of time wasted in tools movement from the stock to the shop floor. or piece of equipment was not kept close to where it will be used • Untidy shop floor with dusts in the weld shop and press shop • Customer complaints and defects in products after delivery . supply. Whenever a tool is broken or is declared useless. part.

staff motivation. technology The entire process chain – from supplier via the internal customer to the final customer is therefore taken available tools are used to eliminate all wasteful activities .OUR RECOMMENDATIONS Adoption of Kaizen The Kaizen Management System addresses all aspects that contribute to company results including quality. costs. safety. logistics.

The accuracy is at a level of 99. Six Sigma is a process improvement set of tools and strategies . 6 sigma is 3.9997%.4 Defects per million opportunities(DPMO).Adoption of six sigma methodology 6 sigma is a structured statistical methodology that can be used to measure the quality of the service and performance.

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Before coming to the assembly lines and the shop floors everyone should clean their shoes .Device to clean foot .

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Efficient utilization of space .

Focus on hygiene .

in terms of both training and lost production. The benefits will be unknown until the programme is up and running.Problems in implementing kaizan Unfortunately there are a number of barriers that must be overcome in order to implement a kaizen programme.attitudes will need to change and the type of training required to achieve attitudinal change will be expensive and lengthy. Employees may simply feel that they are being asked to do more without extra pay cost of training • . management resistance • managers may find it hard to manage empowered workers employee resistance • this may occur. especially in situations where industrial relations have been poor in the past. justifying the cost . will be clear. • the costs of implementing a kaizen programme.

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