Visit to Tata Motors, Lucknow

17th May 2006

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

Business Excellence, HEEP, Haridwar 1

 Tata Motors: The Journey….
• 1983: Land identified by Late Mr S.Moolgaonkar
• 1992: 1st Vehicle Rolled
• 1994: Crown Wheel & Pinion Production
• 1995: Sumo Rolled
• 2001: CNG Chassis Rolled
• 2002: RE Bus (Rare Engine) Rolled
• 2003: FBV (Fully Built Vehicle) Business
• 2003: TBEM Internal Assessment – 1st Position
• 2003: ISO 14001, TS 16949
• 2005: 19 Bus Models Launched ( Including ultra low floor bus for handicapped)
• 2005: OHSAS
• 2005: JRDQV Award
• 2005: CII-EXIM Bank Award
• 2005: Acquisition of Hispano, Spain
• 2005: Launch of 4 wheeler commercial vehicle “Ace”
• 2006: Reconditioning Business
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Tata Motors: The Visual Impact….
Total Land Area: 600 Acres - 70% Green,
30% Concrete
Excellent Landscaping having Artificial Lakes
– Used for Special Meetings, Lunch
The entire factory area has an Institutional
Look
No movement of people seen outside the
shops /offices
Vehicles are not allowed after certain point
Roof-less Car for visitors

Business Excellence, HEEP, Haridwar 3

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

Business Excellence, HEEP, Haridwar 4

Journey to Performance Excellence

BM Parameters CVBU (Jamshedpur, Best Competitor (India)

Pune, Lko)*
Employees 18000+ 12000+

Active Models 130+ 20+

Range 750kg-40T 9T-35T

Vehicles sold 190000+ 60000+

Customer Touch Domestic:6400+ 415

Points Intl: 260+ n.a

* Market in Europe, Middle East, Russia, ASEAN & SAARC Countries, Africa

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Journey to Performance Excellence
National Scenario:
Early road development stage
Golden Quadrilateral
Truck Market to go up
Competitors:
1997: 2 Players 2005: 12 Players
( Ashok Leyland, Ford, Eicher, Bajaj,Piagio, Isuzu, Toyota etc )
Customer Expectation: “German Quality in Chinese Price”

The Worst Phase - Tata Motors came under loss of Rs

500Cr in yr 2000 – Employee unrest

Turnaround Begins…..
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Journey to Performance Excellence
Three Phase Strategic Direction:
Turnaround through cost reduction
Domestic Growth by strengthening sales & services
International Growth (As now): World-class products, International
Business, Global Benchmarking

9 Adoption of TBEM Model

9 New initiatives on Cost Reduction, 6 Sigma, Sales Planning, New
Product Introduction, EPM, BPR
9 FIBRES- Environment / Market Scan Data Compilation Process
( Fact & Information Based Reverse Engineering Strategy)

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Business Excellence, HEEP, Haridwar 8
Journey to Performance Excellence

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

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Journey to Performance Excellence
Strategic Deployment ThroughBalanced Score Card
Strong means of Strategic Deployment
Balanced Score Card driven Performance Review at all level. Strong
Integration through cascading structure
Cascading of BSC down the line can be interlinked
BSC of each section / work-centre is displayed at the shop with latest
status
300+ BSC in all the three units
Software ( Strategist) is under development
Tata Motors is a part of
“BSC Hall of Fame” ( by Norton & Kaplan)
BSC at Shop Floor
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Journey to Performance Excellence
Leadership Model
My XL Plan
Leadership Effectiveness Approach – Survey through
Employee Engagement Survey
Tata Code of Conduct – widely communicated (Poster,
Booklet etc)
Leadership System ( Next Slide)
Leadership System Evaluation
13 Points
4 Level Maturity:
Innocence Awakening Commitment World Class
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Journey to Performance Excellence
Enterprise Process Model (EPM)
19 Top Level Processes: 90+ Sub Processes
( For All the Units)
Value Creation Process
Marketing Process (4 Processes)
Market development, Partner Management, Sales Planning,
Vehicle Financing

Demand Fulfillment Process

Production & Delivery Process (6 Processes)
Design : New Product Introduction, Services design
Production & delivery : Sales & Operations Planning,
Vendor management, Manufacturing
Service process :After sales service

Business Excellence, HEEP, Haridwar 14

Journey to Performance Excellence
Enterprise Process Model (EPM)
Support Process (4 Processes)
HRM, Facilities & Environment Management, Finance &
Budgeting, Information & Knowledge Management
Management Process (5 Processes)
Leadership & Corporate citizenship, Strategic planning,
Organisational governance, Internal & external
communication, Performance Improvement & Change
Management

•EPM Manual exists.

•It defines each main process and has process mapping.
•Each sub-process has written down methods and measures
(Turtle Map)
•Measures are linked to BSC
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Business Excellence, HEEP, Haridwar 17
Business Excellence, HEEP, Haridwar 18
Journey to Performance Excellence
Self Directed Teams (SDT) – SQDCM Concept
SDTs are at operators level
SDTs monitor SQDCM parameters daily
Charts of SQDCM parameters are displayed at respective
work-centers
Monthly SDT presentation
There are 900+ SDTs in all units of Tata Motors
S: Safety ( eg Accident, Injury )
Q: Quality ( eg % Rejection, % Defect etc)
D: Delivery ( eg Response time, Mfg Cycle time)
C: Cost ( eg Reduction in cost of machinery spares)
M: Moral ( eg Attendance, No. of suggestions given)

Business Excellence, HEEP, Haridwar 19

Journey to Performance Excellence
Kanban System of Inventory Control
Kanban System of inventory control at shop floor (since last one
year)
Two Bin system ( Pull System): 2 bins at shop, 2 bins at store
and 2 bins at vendor’s end
Placement of order is controlled by kanban and order is placed
through computer
This system is made applicable to local vendors for 800+ items

A material pull system means that downstream processes fetch

from upstream processes only the goods that are needed, only
when they are needed, and only in the required amounts.

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

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Journey to Performance Excellence
Sharing & Communication

KM Site – VIBES (Employee enquiries, company

overview, learning lab., circulars, news, information
hub, VPs concern corner, Apna bazar, Deptt sites
etc)
CoP (Communities of Practices): Video
conferencing among the units to share the good
practices
Manthan: Leading Speakers talk on latest topics

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

• TPM ( Just started on about 50 machines)

• Good 5s system. 5s index is monitored in every work
center (Best Index is 5)
• Dealership / Spare parts Survey by M/s METRICS
• Vendor Meet / Best Vendor Award by VP ( For Lko
based vendors)
• Computer Kiosk in different parts of the factory
• Benchmarking: Around 100 projects have been
taken (Inter-unit BM and Visiting good companies on learning
missions), Member of Indian Benchmarking Center

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Journey to Performance Excellence
BE Score

• TBEM ( Based on Malcom Baldrige Model):

• World Class: 876-1000
• TISCO: 707
• Tata Motors: 620
• CII-EXIM Bank (2005)- EFQM Model
• 600-650
• Cr 1, 2, 3, 5: 60-70
• Cr 4 : 50-60
• Cr 7 : 50-60
• Cr 6,8,9: 60-70

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Benchmarking with Tata Motors
Proposed

• Enterprise Process Module: To make Process Manual

• Cascading Balanced Score Card up to Sectional Level

and its display along with status

• Employee Engagement Survey by M/s Gallop

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BHEL Team at Tata Motors, Lucknow

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