visit to tata motors, lucknow

8/8/2019 Visit to Tata Motors, Lucknow

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Business Excellence, HEEP, Haridwar 1

Visit to Tata Motors, Lucknow

17th

May 2006

Mr A.K.Sarkar, DGM/BEX

Mr P.N.Karmokar, AGM/BEX

Mr Ishwar Din, AGM/TUMMd Akbar,AGM/Bl-4


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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

LookNo movement of people seen outside theshops /offices

Vehicles are not allowed after certain pointRoof-less Car for visitors


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Tata Motors:Products & Manpower

Products:

Light Commercial Vehicles

Medium Commercial Vehicles

Heavy Commercial Vehicles

Bus Chassis

FBV Coordination

Spare Parts

Focus on Bus Chassis

40% Vehicles are sold inNorth India

73% Market share in

Commercial vehicles & 50%in Bus

Manpower: 846

Officers: 238

Supervisors: 42Worker : 566

Average Age:

Officers: 32 yrsSupervisors: 37 yrs

Workers: 38 yrs

Young Work-force


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Journey to Performance Excellence

415

n.a

Domestic:6400+

Intl: 260+

Customer Touch

Points

60000+190000+Vehicles sold

9T-35T750kg-40TRange

20+130+Active Models

12000+18000+Employees

Best Competitor (India)CVBU (Jamshedpur,

Pune, Lko)*

BM Parameters

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


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Journey to Performance ExcellenceNational 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 ExcellenceThree Phase Strategic Direction:

Turnaround through cost reduction

Domestic Growth by strengthening sales & services

International Growth (As now): World-class products, International

Business, Global Benchmarking

Adoption of TBEM Model

New initiatives on Cost Reduction, 6 Sigma, Sales Planning, New

Product Introduction, EPM, BPR

FIBRES- Environment / Market Scan Data Compilation Process

( Fact & Information Based Reverse Engineering Strategy)


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Journey to Performance Excellence

Balanced Score Card Leadership Excellence Model

Enterprise Process Model

CSS & Employee

Engagement Survey ( by M/sGallop)

Self Directed Teams (SDT)-SQDCM Concept

SAP

Kaizen with JapaneseConsultants

e- procurement (ARIBA) Kanban System

CII-Cluster Approach

Corporate Social

Responsibility Energy Conservation

Environment Management

Knowledge Management

CoP Communities ofPractices

Excellence Initiatives


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Journey to Performance ExcellenceStrategic 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 lateststatus

300+ BSC in all the three units

Software ( Strategist) is under developmentTata Motors is a part of

BSC Hall of Fame ( by Norton & Kaplan)BSC at Shop Floor


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Journey to Performance ExcellenceLeadership Model

My XL Plan

Leadership Effectiveness Approach Survey throughEmployee Engagement Survey

Tata Code of Conduct widely communicated (Poster,

Booklet etc)Leadership System ( Next Slide)

Leadership System Evaluation

13 Points4 Level Maturity:

Innocence Awakening Commitment World Class


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Journey to Performance ExcellenceEnterprise Process Model (EPM)

Support Process (4 Processes)

HRM, Facilities & Environment Management, Finance &

Budgeting, Information & Knowledge ManagementManagement 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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Journey to Performance ExcellenceSelf 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 MotorsS: 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)


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Journey to Performance ExcellenceKanban 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 vendors end

Placement of order is controlled by kanban and order is placed

through computerThis 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 ExcellenceE-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 ExcellenceSharing & 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 ExcellenceSociety & 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 ExcellenceOther 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 Lkobased 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 ExcellenceBE 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

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

Proposed


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BHEL Team at Tata Motors, Lucknow

visit to tata motors, lucknow

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