TATA Motors Ltd
Tata Motors Limited is India’s largest automobile company, with revenues of Rs.35651.48 crores (USD 8.8 bn) in 2007-08. It is a leader in commercial vehicle in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize cars and utility vehicle segments. The company is world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer.
With more than 130 models covering a wide range of Commercial Vehicles, Passenger Cars and Multi-Utility Vehicles. Tata Motors provide the wheel for India’s growth.
The Company’s 23,000 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”.
Tata Motors, the first company from India’s engineering sector to be listed in New York Stock Exchange (September 2004) , has also emerged as an international automobile company. Through subsidiaries and associate companies, Tata Motors has operations in UK, South Korea, Thailand and Spain.
Tata Motors is also expanding its international footprint, established through export since 1961. The company’s commercial and passenger vehicles are already being marketed in several countries in Europe, Africa, the Middle East, South East Asia and South America. It has franchisee/joint venture assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata Motors recently acquired the Jaguar and Land Rover businesses from Ford Motor company for a net consideration of US $ 2.3 bn.
Passenger Cars :
• TATA Indica
• TATA Indigo
• TATA Indigo Marina
• TATA Indica Vista
• TATA Nano
Utility Vehicles (SUV & MUV):
• TATA Sumo
• TATA Safari
Commercial Vehicles :
• TATA Ace
• TATA 207 Pickup Truck
• TATA 407
• TATA 1109 (Intermediate Truck)
• TATA 3015 (Heavy Truck)
• TATA 4923 (Ultra-Heavy truck)
• TATA Winger
• TATA 1510 (Medium Bus)
• TATA Starbus
Tata Motors’ presence cuts across the length and breadth of India. Over 4 million Tata vehicles ply on Indian roads.
The company has four major manufacturing bases in India. These are as follows:
1. Jamshedpur (Jharkhand):
Established in1945, the Jamshedpur unit was the company's first unit and is spread over an area of 822 acres. It consists of two major divisions - Truck Factory & Engine Factory.
The Truck Division boasts of two assembly lines. The main assembly line, measuring 180m in length has 20 work stations with a vehicle rolling out every 8 mins. The other line is dedicated to special purpose vehicles and for meeting the requirements of the Indian Army.
2. Pune (Maharashtra):
It was established in 1966 and has a Production Engineering Division.
To cope with a diverse range of automobiles, four assembly lines have been established, one each for MCVs and HCVs, LCVs, Utility vehicles and one for Passenger Cars (Indica and Indigo).
3. Lucknow (Uttar Pradesh):
This plant was established in 1992 to meet the demand for Commercial Vehicles in the Indian market. The state of art plant is strongly backed by an Engineering Research Centre and Service set-up to support with latest technology and cater to the complexities of automobile manufacturing.
This plant is specialized in the designing and manufacturing of a range of modern buses which includes Low-floor, Ultra Low-floor & CNG Buses.
4. Pantnagar (Uttarakhand):
The plant began commercial production in August 2007. The plant is spread over 953 acres, of which 337 acres is occupied by the vendor park.
Tata Motors plans to shift the entire production of its mini truck Ace and the passenger carrier variant of the vehicle, Magic, to Uttarakhand.
The company is establishing two new plants at Dharwad (Karnataka) and Sanand (Gujarat).
Following a strategic alliance with Fiat in 2005, it has set up an industrial joint venture with Fiat Group Automobiles at Ranjangaon (Maharashtra).
The segment wise production is as follows :
Location Type of vehicle manufactured Production Capacity (Lakh/PA)
Pune Passenger Cars (Indica, Indigo, Marina, Indica Vista) 2.7 L
Pune Commercial Vehicles (MCVs and HCVs, LCVs, Utility vehicles) 2.5 L
Jamshedpur Trucks & Special Purpose Vehicles 1.08 L
Lucknow Buses 0.6 L
Pantnagar (Uttarakhand) Mini Truck (Ace), Passenger Carrier (Magic) 2.25 L
As the company under study has multiple locations, hereafter we have limited the scope of study to a single location which is Passenger Car Business Unit (PCBU), K Block, Pune.
Management Hierarchy for PCBU, Pune:
Functional Groups :
The various functional groups operating in TATA Motors are :
1. HR :
Tata Motors has formalized selection, evaluation, and payroll processes. The HR function of Tata Motors consists of tracking existing employee data which includes personal histories, skills, capabilities, accomplishments and salary. The department records basic selection, training and development, capabilities and skills management, compensation planning records and other related activities.
2. Engineering & Research Centre (ERC):
Research provides the much-needed inspiration for the birth of new ideas. The Engineering Research Centre in Pune was setup in 1966 and is among the finest in the country. The Research Centre regularly upgrades components and aggregates.
The facilities in ERC includes:
• Facility for improving Engine Performance
• Reducing Emissions
• Test Tracks
• Designing and Styling
3. Technical & Productivity Services (T & PS):
This group looks after the necessary technical assistance which is required for carrying out smooth production in the plant. The functions of this group includes setting up new assembly lines, seeking prospects for modifications in the current assembly lines, preparing standard operating procedure (SOP) and preparing TS 16949 documents.
4. Production :
This group carries out production as per the production plan prepared by production planning and control (PPC).
Passenger Cars produced in Pune plant includes India’s first indigenously built Indian car ‘Indica’, Indigo, Indigo Marina. All the variants of these cars are produced here. Production is also carried out for the brand new model from Tata Motors stable ‘Indica Vista’, which has been developed on a completely new platform.
Maintenance group works in co-ordination with the production team. Scheduled maintenance of the equipments is being done.
5. Vendor Development :
Manufacturing a car requires a large no. of small and large ancillaries which cannot be produced inhouse due to various constraints. Hence some of these small parts are outsourced to various vendors. The parts procured from these vendors should be as per the quality standards maintained by Tata Motors. Vendor development group identifies the appropriate vendor and ensures proper quality standards.
The Passenger Car Division in 'K' block executes the entire process of car manufacture over five shops - the engine shop, the transmission shop, press and body shops, paint shop and the trim and final assembly shop. 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 based on this forecast a production plan is prepared and then the production is done in accordance with this production plan.
Tata Motors Passenger Cars unit does not have warehouses in all the cities. The cars produced are tested thoroughly and after successful completion of the testing are stored in large free space available in the company premises. From here these cars are despatched to the authorised dealers as per their order.
Some special purpose vehicles such as utility vehicles for defence, mini-ambulance for hospitals are made as per the order.
The plant layout for Passenger Car Business Unit is as shown below:
Overview of Car Manufacturing Process:
1. Machine Shop (Transaxle):
Exhaust Manifold, Intake Manifold, gear box casting, gears are manufactured in the machine shop. Heat Treatment is also done for Gears and other parts. The plant is equipped with latest CNC machines.
2. Engine Shop:
Engine is considered to be the heart of any automobile. Five Cs of engine (Cylinder Head, Crank Shaft, Cam Shaft, Cylinder Block & Connecting Rod) are received from the machine shop. Cylinder Block is then washed in washing machine with a cleaning liquid. Thereafter these parts are assembled with other engine components.
On final assembly of engine testing is done on engine test beds, where RPM, Power & Torque is checked. Now the engine is ready to be despatched to final assembly line.
3. Press Shop :
Various body panels required for making the body of a car are made in this shop. Cold rolled steel coils are cut into required sizes, this operation is known as blanking operation. Eleven number of skin panels are made in this press shop and rest of the small panel manufactured by the vendors. The blanks which are cut in the blanking line are stacked on one another. These stacks are placed at one end which further moves on the press line. The press line consists of hydraulic presses and pick and place robots. The hydraulic press presses the part into required shape and the pick and place robots lifts the part from one station and places on another station. One press line consists of 4-5 hydraulic presses and the final body panel is obtained at the other end of the press line.
4. Weld Shop :
The skin panel from the press shop and other panels from the vendors are welded in the weld shop in order to make the body of the car.
Mainly spot welding operation is done in the weld shop. Weld shop consists of different sub process areas such as Under Body Front (UBF), Under Body Rear (UBR), Under Body Complete (UBC), Main Tack Line, Main Respot Line and Slat conveyor.
The job is moved from one station to another with the help of hoist and tackle or by Lift and Carry arrangement.
5. Paint Shop :
From weld Shop the car body is transferred to the paint shop. Here the surface cleaning operation is done in order to remove the dust particles and the oil deposition. After this the body passes through the Cathode Electrode Deposition (CED) bath and then the final colour coat is applied to the car body as per the production plan.
6. Trim cum Chasis Fitting (TCF):
Final assembly of the car is done in TCF. Transmission set-up (gear box mounted on Engines) are received from the engine shop and painted body is received from the paint shop. Other accessories such as seats, steering wheel, window glass, wheels, buffers etc. are fitted in this section. Completely built car comes out of the TCF which is ready for testing and inspection.
Quality Management :
Tata Motors has led the Indian automobile industry's anti-pollution efforts by introducing cleaner engines. It is the first Indian company introduce vehicles with Euro I and Euro II norms.
Tata Motors is committed to maximizing customer satisfaction and strives to achieve the goal of excellence, by continual improvement, through ongoing going design and development, manufacture and sale of reliable, safe, cost-effective, quality products and services of international standards, using environmentally sustainable technologies, for improving levels of efficiency and productivity within its premises and ancillaries.
The PCBU plant in Pune has obtained ISO 9001:2000 certificate from Bureau Veritas Quality International-BVQI in July 2003.
PCBU of Tata Motors has received the certificate of approval of its quality management system (QMS) from Bureau Veritas Certification (BVC), for compliance with ISO / TS 16949:2002.
TS (Technical Specification)-16949 defines the quality management system requirements for the design and development, production, installation and service of automotive-related products.
And to control the quality of its cars TATA Motors applies various stringent measures during the pre-manufacturing stage as well as post-manufacturing stage.
During the manufacturing stage regulars quality audits are held by the in-house auditors in all the shops. All the process sheets, spot plans, control plan etc are displayed near the work place.
In the post manufacturing stage once the vehicle comes out of the assembly line it passes through stringent testing standards such as shower test, wheel balancing etc. On successful completion of testing, the car is ready to be despatched after Pre Delivery Inspection (PDI).
Environmental Management :
TATA Motors reaffirms its commitment to minimize the adverse impacts of its products, operations and services on the environment. It strives to:
• Reduce the emission levels of vehicles in full compliance of the regulatory norms & proactively work with the industry, Government, other related industries & agencies to bring in international practices.
• Use of environmentally sustainable technologies & practices for prevention of pollution and the continual improvement in environment performance.
• Conserve natural resources and energy by minimizing their consumption & wastage.
• The unit is cerified with ISO 14001 : 1996 for Environmental Management System (EMS)
Work Measurement :
Tata Motors is the first Indian Company to introduce the Balance Scorecard System in automotive sector in India.
The scorecard incorporates SQDCM (Safety, Quality, Delivery, Cost and Morale).
The implementation of the Balanced Scorecard has enabled greater focus on different elements of operational performance. Defining, cascading and communicating strategies across the organization have brought about transparency and alignment.
Apart from Balance scorecard half yearly review of the employees is done on the basis of attendance, kaizen at work place etc.
A suggestion scheme is started by the management wherein any employee irrespective of his cadre can suggest an improvement in the work place and if this suggestion is approved by the concerned authority the employee gets rewards points. Once an employee achieves a specified limit of points he gets a gift voucher.
Apart from this employees also receive bonus on certain festive occasion.
Value Engineering :
Continuous efforts are made to reduce the cost of service in TATA Motors. Rejection of input parts received from vendors is very closely monitored in all the departments. The vendors are penalised if rejection exceeds beyond the defined limits. Apart from rejection of regular parts some stations are identified as CTQ (Critical to Quality) Stage. Special care is taken of the components added on these stations. Any negligence on these stations may lead to a customer claiming replacement of the vehicle.
Value Engineering team also works for searching energy efficient alternatives, methods and eco-friendly technology, by adopting effective maintenance & work. The comsumption of electricity, water, LPG, Compressed air etc is continuously monitored and steps are taken to reduce the consumption of these resources.
Material Management :
Tata Motors uses SAP 4.6C Material Management (MM) module for:
• materials planning and control,
• goods receiving,
• inventory management,
• invoice verification.
Various spare parts for the machines, and other necessary equipments are ordered by the maintenance and T & PS departments through central maintenance shop and purchase department.
Quotations are invited from the interested parties and after the negotiations one party is finalised to procure the material.
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|Author: Vaidehi Sriraman||Member Level: Bronze||Revenue Score: |
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