ASSIGNMENT OF =OPERATION AND SUPPLY CHAIN MANAGEMENT Case : Relocation Of Tata Nano Manufacturing Plant

Name : Sudipta Nandi Roll: 51 Q.what were the major reason for Tata's decision to start nano factory at singur and why was it re- located?
Ans. This political strategy was a success story, as equating the CPI(M) with the state government, and thus with state power and authority was easy and Singur provided a golden opportunity. The West Bengal state government was desperate to attract investments to setup manufacturing industries. The victory with a huge margin in terms of number of seats in the 2006 assembly polls was taken by CPI(M) as a landslide mandate to industrialize the state at a very fast pace. At this time the Tatas were planning to setup their Nano factory at Pantnagar, as they were getting 100% outright excise duty exemption for a period of 10 years, with 100% income tax exemption for the first 5 years and then 30% for the next five. This kind of incentives possibly help to bring down the real cost of the small car by a few thousands rupees. This also helps the investors to recover the investment much faster. In order to attract the Tata Nano Factory the Left Front government tried to match these incentives and signed an agreement with them. Other than the financial incentives, the Tatas were given a choice to choose the site for their project. They chose Singur, which has been a fertile land, but at the same time probably the best location logistically to setup this project of small car. Also the low operating cost in Bengal was a major factor for the Tatas to decide in favor of Singur as this is a very cost sensitive project. The expectation of the government was again two fold, generating employment and earning tax revenues after few years to the tune of estimated 500 crores per year, which can then be spent on the social sector facing crunch in budgetary allocation. Some point why Tata Nano relocate:The land acquisition controversy Fencing off the land Construction of plant Procedural lacunae

Q.What is the latest status of TATA Nano s production and distribution system ?
Ans. The Tata Nano would be launched in the European market with some modifications under the hood in compliance with the specifications pertaining to the small car segment in Europe or the individual countries but the external features would continue to remain the same. This would take place only after the company has established the product in the Indian automobile market. Tata Motors expects that the demand for the Nano would be high and it would try to supply to cater the demand. The company has also planned that if the production of the company is not able meet up with the demand in the home and the global markets, it would go for outsourcing licenced production to different national or international companies. Tata Motors feels that the Nano would also find a booming market in the South and Central American countries,

where the demand for small automobiles are high, but the company is waiting for a launch in this automobile market before planning out the format of business they are going to perform in these areas. The automobile market in India is facing tremendous odds with the lack of required capital, rise in the price of inputs, and high rates of interest. The only positive sign was the recent 4% cut in excise duty, which would help the company to offer the Nano at the Rs.1 lakh price range.

Q.Pick up 5 recent industrial projects. What were the criteria for facility location ?
The problem of facility location is faced by both new and existing businesses. Criteria that influence facility location include proximity to customers, business climate, total costs, availability and quality of infrastructure, quality of labor, suppliers, other available facilities, free trade zones, political risk, government barriers, trading blocs, environmental regulations, the host community and finally competitive advantage. Factor-rating systems are the most widely used location techniques as they combine diverse factors in an easyto-understand format. The transportation method is a special linear programming method while the center of gravity methods is another popular location solution method that focuses on minimizing shipping costs and distances. While it is usually less expensive to establish a service facility than a manufacturing facility, service facilities have unique issues to consider. When choosing a location for a service facility it is important to maintain close contact with the customer. Frequently, regression models are used to assist with site selection. The criteria for selecting appropriate locations have evolved beyond the singular focus on minimizing cost or distance. Today a number of quantitative and qualitative issues impact location decisions. A company's long-term success depends on its managers' ability to make a comprehensive synthesis of the various dimensions of the multifaceted location problem.

Q.Why is Benbalore a preferred location for software company in India?

IT Industry Insights Bangalore Most preferred locations for delivery centres Growth expected in the next two years Skilled manpower shortage, high labour attrition hound the IT Industry Cost effective services High quality service The first is directed towards the global IT industry, and contends that the global IT industry's interest in India goes beyond mere price considerations alone. The second proposes that the success of Bangalore in attracting the IT industries is due to a synergy of factors, which include favourable government policies, availability of skilled professionals, and local presence of research institutes and laboratories. The third hypothesis is guided towards the industry-institution linkage, and argues that there exists a strong link between the IT industry and the research laboratories in Bangalore, which has helped underpin growth in the local IT industry. The empirical analysis was conducted at tm, levels. One at the national level of policy making, and another at the city level.

ASSIGNMENT OF =OPERATION AND SUPPLY CHAIN MANAGEMENT Case : Relocation Of Tata Nano Manufacturing Plant
Name : Sudipta Nandi Roll: 51