Case Study Of Tata Indica

TATA INDICA THE MAKING OF THE SMALL CAR

INTRODUCTION PEN INSU LA R LO CO MO TIV E CO MP AN Y ESTABLISHED IN TATA ,JAMSHEDPUR. •IN 1923 THE

•IN 1927 PENINSULAR WAS TAKEN OVER BY EAST INDIA RAILWAY. •1945 TATA SONS PURCHASED THE PLANT FROM GOVT. OF INDIA TO MANUFACTURING STEAM LOCOMOTIVE BOILERS AND OTHER ENGINEERING PRODUCT UNDER THE NAME OF TATA LOCOMOTIVE AND ENGINEERING COMPANY. •IN 1947 IT STARTED PRODUCING BOILERS FOR IMPORTED LOCOMOTIVE . •IN 1954 THE COMPANY ENTERED INTO A TECHNICAL COLLABORATION WITH DAIMLER-BENZ TO MANUFACTURE AUTOMOTIVE.

•IN 1960 THE COMPANY’S NAME CHANGE TO TATA ENGINEERING AND LOCOMOTIVE COMPANY LTD.(TELCO). •IN 1961 IT STARTED ITS MANUFACTURING OF CONSTRUCTION EQUIPMENTS. •IN 1966 IT ACQUIRED INVESTA MACHINE TOOLS CO. AND SET UP A MACHINE TOOL DIVISION AT PUNE. •IN 1977 TELCO PRODUCED ITS 1st COMMERCIAL VEHICLE. •IN 1983 TELCO STARTED TO PRODUCED HEAVY COMMERCIAL VEHICLE . •IN 1986 TELCO LAUNCHED ITS 1st LCV –TATA-407. •IN 1991 TELCO LAUNCHED ITS PASSENGERS CARS TATA SIERRA AND TATA ESTATE.

THE SUCCESS STORY OF TATA INDICA RATAN TATA THE CHAIRMAN OF TELCO THOUGHT TO PRODUCE A SMALL CAR. WHICH SHOULD BE PRICED LIKE MARUTI 800.SHAPE LIKE ZEN AND SPACIOUS LIKE AMBASSADOR. IN 1995 TELCO ANNOUNCED TO LAUNCH A SMALL CAR INDICA. TELCO WAS FAMOUS FOR PRODUCING COMMERCIAL VEHICLES THAT’S WHY THEY WANTED TO CHANGE THEIR IMAGE. FOR PRODUCING INDICA TELCO OUTSOURCED ITS 80% COMPONENTS FROM 200 VENDORS .(1200 OF THE 1500 PLUS COMPONENTS). GENERALLY A CAR TOOK 48 MONTHS BUT TELCO COMPLETED INDICA IN JUST 31 MONTHS BY FOCUSING ON SUPPLY CHAIN.

CHALLENGES AT THE TIME OF STARTED THIS PROJECT TELCO HAD THE BIG CHALLENGE THAT ,THEY HAVE TO PRODUCE THEIR COMPONENTS BY OWN OR THEY HAVE TO OUTSOURCED COMPONENTS. FINALLY THEY HAVE DECIDED TO OUTSOURCED COMPONENTS AND USE THEIR OWN ENGINEERS FOR MODIFICATION. THAT’S WHY THEY SET UP ENGINEERING RESEARCH CENTER AT PUNE IN MAHARASHTRA.

OUTSOURCING COMPONENTS COMPONENTS

SUPPLIER

5 DOOR HATCHBACK

I.DE.A(ITALY)

ENGINE ASSEMBLY LINE

INSTITUT FRANCAIS DU PETROL FRANCE NISSAN’S PLANT (AUSTRALIA)

PRESSES

MERCEDES BENZ

PISTONS AND PISTON RINGS

INDIA PISTONS

ELECTRIC COMPONENTS AND FUEL INJECTION SYSTEM STEERING SYSTEM

LUCAS-TVS

RADIATOR FRONT AND REAR BUMPER,DASHBOARD,INSIDE TRIMS. FUEL LINES

RANE TRW STEERING SYSTEM TATA-TOYO TATA AUTO PLASTICS

IMPERIAL AUTO

CREATION OF STRONG VENDOR BASE •FOR SELECTING VENDOR TELCO SET A SIMPLE YARDSTICK. •IN THE 1st STEP INITIAL ASSESSMENT TEAM FROM TELCO EVALUATE THE SUPPLIER ON THE FORMAT PROVIDED BY TELCO. •IN THE 2nd STAGE THERE WAS A QUALITY SYSTEM SURVEY BY TELCO QUALITY AUDIT TEAM. •THE 3rd STAGE CALLED MANUFACTURING VALIDATION TO ENSURE THAT THE SUPPLIER WAS FOLLOWING THE PROPER MANUFACTURING PROCESS OR NOT.THIS IS CALLED PRODUCTION PART APPROVAL PROCESS(PPAP) WHICH CERTIFIED THE PRODUCTION QUALITY. •TELCO SETUP SUPPLIER QUALITY IMPROVE TEAM TO IMPROVE THE VENDOR QUALITY SYSTEM TO ENSURE THAT THEY PRODUCE QUALITY PRODUCT. •IT INCLUDED 13 STEP QUALITY IMPROVEMENT PROGRAMME.

•TELCO SET A PARTICULAR TARGET FOR EACH VENDOR. •TELCO TREAT THEIR VENDORS AS PARTNERS AND ALWAYS SUPPORTED AND HELPED THEIR VENDORS. •THAT’S WHY THEIR VENDORS COMPLETE THEIR TARGET AT EXACT TIME BY GIVING THEIR HEART AND SOUL.

TRANSFORMATIONS •

Cost

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Quality

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Delivery

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Performance

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Flexibility

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Innovativeness

Cost 1. TELCO REDUCE LOGISTIC COST BY JUST IN TIME BASIS. • JUST IN TIME INVENTORY SYSTEM. • REDUCE TRANSPORTATION COST. • ACCURATE DEMAND FORECASTING.

QUALITY

1. FOR SELECTING THE BEST QUALITY VENDOR BASE THEY HAVE 3 PARAMETERS . •

IN THE 1st STEP INITIAL ASSESSMENT TEAM FROM TELCO EVALUATE THE SUPPLIER ON THE FORMAT PROVIDED BY TELCO.

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IN THE 2nd STAGE THERE WAS A QUALITY SYSTEM SURVEY BY TELCO QUALITY AUDIT TEAM.

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THE 3rd STAGE CALLED MANUFACTURING VALIDATION TO ENSURE THAT THE SUPPLIER WAS FOLLOWING THE PROPER MANUFACTURING PROCESS OR NOT.THIS IS CALLED PRODUCTION PART APPROVAL PROCESS(PPAP) WHICH CERTIFIED THE PRODUCTION

DELIVERY •

TELCO SETUP ONLINE SERVICE, VERY SMALL APERATURE TERMINAL(VSAT) TO REDUCE ORDER PROCESSING TIME.

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FOR FASTEST DELIVERY TELCO USES ONLY 3 LEVELS WHETHER THE OTHER COMPANY USE 5 LEVELS.

PERFORMANCE •TELCO SET THE TARGET FOR THEIR VENDORS. •TELCO TREAT THEIR VENDORS AS PARTNERS. •TELCO USE THEIR ENGINEERS FOR MODIFICATION OF THE COMPONENTS SUPPLIED BY VENDORS. •TELCO TRAINED THE SUPPLIER ENGINEERS IN ITS R&D CENTER AT PUNE. •TELCO GIVE FULL SUPPORT TO THEIR VENDORS.

FLEXIBILITY •TELCO WAS VERY FLEXIBLE AT THE TIME OF SELECTING VENDOR. •TELCO CHOOSE WORLD CLASS VENDORS FOR THEIR REQUIRED COMPONENTS.

INNOVATIVENESS •TELCO COMEUP WITH AN UNIQUE IDEA THAT THEY WILL USE ONLINE SERVICE FOR SPEEDY COMMUNICATION,VERY SMALL APERTURE TERMINAL(VSAT). •TELCO SETUP 3 LEVELS PROGAMME FOR SPEEDY DELIVERY.

CONCLUSION •AT LAST WE CAN SAY THAT OPERATION MANAGEMENT IS REALLY A BACKBONE FOR ANY ORGANISATION. •WITH THE HELP OF OPERATION MANAGEMENT WE CAN IMPROVE ALL THE AREA OF ORGANISATION LIKE MARKETTING,FINANCE,HRM,MIS,INVENTORY MANAGEMENT. •OPERATION MANAGEMENT CREATE A RELATIONSHIP BETWEEN ALL THE AREA OF AN ORGANISATION.

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