TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 1

IT needs of Automotive industry

30th April 2010

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 2

Slide 2

TVS Motor Company• 3 manufacturing units• One vehicle rolled-out every 10 seconds

PT TVS Motor Company - Indonesia• 1.5 lakh vehicle capacity• In-house designed

Sundaram -Clayton• Three manufacturing Units• 8 warehouses in USA and Europe

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 3

Slide 3

Harita Seating Systems• Seats for Two-wheelers to Trains• 4 manufacturing units

Sundaram Auto Components• High precision Plastic and Rubber components• 5 manufacturing units

Harita NTI• Bio degradable plastics, Petroleum from plastic wastes • Corrosive preventive applications

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 4

Slide 4

OEM – Supplier challenges

OEM – Supplier collaboration

Multi disciplinary engineering

Globalization

Reduced development

budget

Reduced development

cycleQuality issues

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 5

Slide 5

Daimler

Honda

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 6

Slide 6

Daimler

Honda

Different folks

different strokes

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 7

Slide 7

Ancillary

OEM

Ancillary 3

Ancillary 2

Customer centric processes

Ancillary OEM Dealer Customer

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 8

Slide 8

Data exchange on delivery

ASNs

Invoice data

Quality compliance

Barcode

Post delivery

Payment

WarrantyContinuous improvementService

General

DMSVMI - vendor managed inventory

OEM production sch.Traceability – fitment in vehicle

Ancillary customer centric processes

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 9

Slide 9

Strength and Opportunities

• Lean production capability• Low cost skilled workforce• Leaning from exports• Deep pockets / brand image Basic ERP in placeCollaboration toll – portal based

Ancillary customer centric areas

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 10

Slide 10

Weakness and threats

• Variance processes and formats

• Lack of visibility in supply chain

• Absence of common portal for OEMs

• Speed – Lead time is still high

• Poor documentation culture

• Not first time right

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 11

Slide 11

A typical voice of ancillary• Account holders are compelled to download GRN, order schedules and

other data, customer by customer • Item requirements are given by both, verbal and written messages. • Some OEMs insist on barcodes attached to invoices, adding to labor

work. - different process by different OEMs• Lack of details in remittance advice from customers, do not give

invoice wise data and details of deduction at the item level, leading to considerable reconciliation work.

• Bank reconciliation process could be improved or eliminated if OEM payment details are available through the Real time gross settlement scheme.

Direct data exchange between OEM and T1 ??

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 12

Slide 12

Penetration needed……

Operational• Standardized formats and data exchange• Cloud based :

– ERP for SMB– FEA tools– Messaging

• Cost effective mobile applications

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 13

Slide 13

Few challenges…..

• Building adequate bandwidth in IT for managing this framework– High attrition rate– Combination of business – IT skill

• Devoting significant amount of time for IT by Business leadership team and next level – Innovation of today is infrastructure of next year– Business looking use IT as strategic intent

• Maturing IT practices through rigorous PDCA and institutionalizing these practices across enterprise

Issues internal

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 14

Slide 14

Few challenges…..

• OEM – ancillary collaboration

• Ancillary supplying to many OEMs

• Role of logistics

• Sharing of best practices

• Need for high transparency

• Sub optimization

Issues across industry

TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 15

Slide 15© SAP Summit 08 / Page 15

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