SOMAIYA

VIDYAVIHAR UNIVERSITY
K J Somaiya Institute of Management

K J SOMAIYA INSTITUTE OF MANAGEMENT

MBA (CORE) 2022-24

OPERATIONS MANAGEMENT

GROUP ASSIGNMENT REPORT ON

SUPPLY CHAIN MANAGEMENT OF

TATA MOTORS

SUBMITTED BY:

ADITYA TOMAR {17030122527)

AKANSHA PANWAR {17030122530)

DEVANSH JAISWAL (17030122538)

PRACHI KADU (17030122563)

TEJAS TALAVDEKAR (17030122582)

SUBMITTED TO:

PROF. RAVINDRA BALIGA

 TABLE OF CONTENTS

TOPIC
~

Executive Summary

About the company

Vision, Mission, Values

Areas of Business

SWOT Analysis

Product Development and Nano

Idea Generation and Nano

Cost Reduction

SCM in Tata Motors

Facility Location

Transportation

Sourcing

Inventory

Pricing

SIPOC Model for TATA Nano

Challenges in Supply Chain Management

Conclusion
 EXECUTIVE SUMMARY

A teadmg worldwide automaker with a portfolio that includes a variety of automobiles, SUVs, buses,
trucks. pickups, and defence vehicles, Tata Motors Limited is a USO 37 billion company. By
prov,ding cutting-edge mob1hty solutions that support clients' dreams, they adhere to the philosophy
of "Connecting Aspirations". Six important mobility drivers have been identified: shared mobility,
connected & autonomous vehicles, clean drivelines, modular architecture, and low total cost of
ownership

The abIlrty to integrate economic stimuli and customer needs into customer--desired offerings
through cutting-edge R&D is the cornerstone of the company's growth. With 1400 scientists and
engineers on staff, Tata Motors' research and development division leads the field in India and is
competitive globally.

Among Tata's firsts are "the first indigenously developed" Light commercial vehicle, in 1998, Tata
lndica, India's first fully indigenous passenger car and the very famous Tata Nano, an inexpensive
rear-eng ined car or as it was famously known "world's cheapest car" .

Through this research, we aimed to learn how various operational procedures are carried out and
managed at Tata Motors Ltd. by concentrating on the production of the Tata Nano. The company
aspires to be the "best in the way we operate, best in the things we offer, and best in our value
system and ethics," according to its vision, mission, and values statement. We have discussed the
several industries Tata Motors excels in. We carried out a SWOT analysis to determine how long it
has been in the game. We have examined the organization's supply chain activities critically and
the manner in which this important role has helped them. We've gone into great detail about how
Tata Motors structures its ideas around the phases of idea generation and product development.
The Tata Nano SIPOC Model covers key process components and provides insightful information
on how it can be applied to support lean manufacturing, better process management, and
continuous improvement.

,,
 ABOUT THE COMPANY

Tata Group 1s made up of 96 operating companies in seven industry sectors: engineering,

nwullll!ll'lals services, mformat,on systems and communications, consumer products, energy, and
midlls Jamselj1 Tata founded the Tata Group in the mid-nineteenth century, when India was
begennIng its Journey toward independence from British rule. As a result, Jamsetj1 Tata and
11111MA who followed him sought to ahgn business opportunities with the goal of nation building. This
~ 1s still ingrained in the Group's ideology today.

Tata Group Is one of India's largest conglomerates, with revenues of $21 9 billion in 2005-06,
alto approximately 2.8% of India's GDP, and a market capitalization of $46.9 billion. Tata Group
MfTlPIOY5 9,35,000 people in total in 2022.

Group's 28 publicly listed enterprises, which include notable names such as Tata Consultancy
~•nrii~, Tata Steel, Tata Motors, and Tata Tea, have the highest combined market capitalization
among Indian business houses in the private sector, with over 2 million shareholders. The Tata
p has operations in more than 54 countries across six continents, and its individual companies
export their goods and services to more than 120 different nations.

llft'tGn:ril"tv, understanding, excellence, unity, and responsibility are the five basic values that are
Id across the Tata Group. These principles, which have always been an integral component of
Tata Group's ideas and principles ever since the company was founded, continue to direct and
· ate the business choices made by Tata enterprises. The Group and all of its businesses have
ys demonstrated an unwavering commitment to upholding the highest standards of business
and acting responsibly within the community. Due to this legacy, the Group has earned the
of many millions of stakeholders, something that very few other businesses in the world have
able to accomplish .

ata Steel became the sixth-largest steelmaker after acquiring Corus. Tata Motors is one of the
stop five commercial vehicle producers. TCS has delivery centers in the US, UK, Hungary,
, Uruguay, and China, in addition to India. Tata Tea is the world's second largest branded tea
ny through Tetley. Tata Chemicals is the world's second-largest soda ash producer and a

• brand is developing alongside Tata firms' international expansion. Brand Finance, a UK-based
ny, recently ranked Tata 51st among the world's Top 100 brands worth $9.92 billion. Tata
named 13th on Business Week's "25 Most Innovative Companies" list and 11th by the
· n Institute, USA. Jamsetji Tata created Tata in 1868 with nationalist ideals. It established
 lleel, power, hospitality, and airlines in India. TCS, India's first software company, and Tata Motors,
Which manufactured India's first indigenously developed car, the lnd1ca, in 1998 and recently
the Tata Nano, have typ1f1ed India's pioneering spmt

ata businesses have long believed m contributing to the communities they serve. Two-thirds of
Tata Sons' equity is owned by charitable organizations that have founded national institutions for
lla!~,oa and technology. medical research, social studies, and the performing arts. The trusts also
11:WoVkle help to non-,governmental groups working in the fields of education, healthcare, and
ihoods. Tata firms extend their social welfare initiatives beyond their manufacturing facilities.
11\1:aoximately four percent of the combined net profits of all Tata firms are allocated to development-
expenditures by the trusts and companies.

ata 1s concentrating on new technology and innovation to fuel its future operations in India and
ghout the world. The Nano automobile and the Eka supercomputer, developed by another Tata
pany and ranked fourth fastest in the world in 2008, are examples. Tata enterprises,
quartered in India and committed to traditional values and strong ethics, are developing
IIW:~Ni·de corporations that will achieve growth via innovation and excellence while balancing the
s of shareholders, employees, and civil society.

ata Motors was founded in 1945, when it began manufacturing trains. It has manufacturing bases
Jamshedpur, Lucknow, Gujarat and Pune where Passenger and commercial vehicles are
nufactured. Between the years 2001 and 2006, Tata Motors was one of the top ten companies
India in terms of the amount of wealth it generated: 320 billion rupees.

the one hand, the initial hype undoubtedly stimulated initial demand. On the other hand,
nt early demand demanded that the firm construct the automobile at scale from the onset,
proved problematic when the company encountered difficulties acquiring property in West
I for a new manufacturing. Production of the first 100,000 automobiles was delayed by over
months.

• Employee strength - 75,278

• Vehicles sold - 8,37, 783

Sales and service points - 8,800

 VISION MISSION AND VALUES

They innovate mobility solutions with passion to enhance the quality of life.

Vision:

y FY 2024 they aspire to become the most aspirational Indian auto brand, consistently winning,
1

• Delivering superior financial returns

• Driving sustainable mobility solutions

• Exceeding customer expectations, and

• Creating a highly engaged workforce

ultural Pillars:

EBOLD

• Agility

• Risk taking

WNIT

• Empowerment

• Owner's mindset

LVE TOGETHER

• Accountability

• Collaboration

• Embracing Diversity

• Passion for customers

 AREAS OF BUSINESS

• • • •- - - ,.._ r•-

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Fig. Diversified Areas of Business under TATA Motors

Limited manufadures automobiles and commercial vehicles. Trucks, tankers, vans,

nces, and minibuses are among the commercial vehicles designed, manufactured,
company. Tata also produces sport utility vehicles and cars.

I I • I I I

Sports utility vehicles: They manufacture a range of cars and sports utility vehicles
various customer preferences. Their current line of compact cars includes Tiago,
Tigor, while in their SUV/mini-SUV category, they produce Punch, Safart, Harrier,

Buaes: Tata motors also produce both heavy weight and ' - weight commercial
as trucks and buses, for various needs d For illlauce, in Load IJUlin11111
Solutions, they have AOJ Gold, Intra V-10, YcdJa ~i.(Wl')uck . fCVTruck,
Tracmr trailers, etc. In pa11enge1 trawpoitllliOA
tN olher kinda of bulBI
 Tata Motors has been involved with the country's armed services since 1958. Till 2016,
000 vehicles had been delivered to the Indian military and paramilitary services. Tata
~wranc:=e Solutions provides a comprehensive variety of logistical and tadical vehicles.
lbu.Kt Safari, Tata Light Armoured Vehicle and Tata Light Armoured Troop Carrier,
Vehicle, and light Armoured Multi-Role Vehicle are among the current offerings
and security forces. They also produce high mobility vehicles, such as the Tata 1623
Illa 2038 (6x6), and Tata 3138 (8x8), and build Shelters and Containers on 4x4, 6x6, and
s for Missile Launchers, Rocket Launchers, and Command Posts.
 SWOT ANALYSIS

STRENGTHS WEAKNESSES
Reoognized Brand Image Greater operational costs &
Research and Development Lower rate of profits

____ ____
International Presence
/,,,-- "\ in Luxury Segment
.,_ No Foothold

SWOT ANALYSIS

OPPORTUNITIES THREATS
Tata Nano Price
Digital Marketing Competitors
Acquisition, Merger, Joint Venturing Innovation of Competitors

ata Motors is a well-known automotive brand on a global scale. The business sells its own cars
...,14Ar a variety of brand names, including Jaguar Land Rover, Tata Hitachi, Tata Daewoo, and Tata
rcopolo. This has increased the company's brand value and brand image in addition to
a.:Dartding the company's market. According to Forbes, Tata Motors' market value will be 4.5 billion
rs by 2021. In 2020. they held the 1037th spot among the Global 2000 top companies. Tata
rs has a well-established distribution network with more than 1600 workshops that spans
of the nation's districts. The company's active supply chain system is demonstrated by the
19Sence of manufacturing facilities in various nations. Market penetration is aided by established
"bution networks, which provide a competitive edge. Taxi cabs, which also offer fundamental
tees like car rentals, have helped the business diversify and expand its clientele. The business
more than 23% of its entire budget to this activity. It demonstrates the company's
itment to expansion and productivity. Additionally, Tata Motors has research facilities in the
India, Spain, and South Korea. Tata Motors has a presence abroad, conducting business in
than 125 nations worldwide.
 2 Weaknesses
Though the company has acquired successful brands like Jaguar and Land rover that were profitable
the earty years, this has made the company more dependent on its subsidiaries and resulted in
her operational costs and tower profit rates . The company's overall sales and profits fell from
preV1ous five years as a result of this The company started building the Tata Nano in India,
ur, and West Bengal back in 2008. Under the Land Acquisition Act 1894 , the West Bengal
emment intervened at that time and took control of the land where the company planned to
strud a factory. This occurred as a result of West Bengal's desire for Tata Motors to establish a
iness there. Tata Motors still struggles to establish a solid foothold in the luxury segment,
re profit margins are higher. As we can see, Tata Motors operates in more than 125 nations
...,vvt,.,.de. Unfortunately, the business did not have the same impact as its rival brands, such as
ord, Toyota, Honda, and Volkswagen.

st all well-known brands and businesses use social media to interact with their target market.
order to engage more with its target audience , Tata Motors should maximise the use of all social
ia platforms, which will enable the business to gather useful feedback for enhancing its goods
services. Despite being the most affordable vehicle, Tata Nano did not do well in India and was
ntinued by 201 8. However, the company can still use this model in other nations to test its
bility. The company's distribution network and supply chain system should be expanded in its
rrent market if it wants to further grow its customer base. The company has benefited from
uisitions, mergers, and joint ventures in the past because it already owns renowned brands
e Jaguar, Daewoo, Hitach i, and others.

pandemic not only killed people's health but also the global economy. Many businesses went
of business and many people lost their jobs as a result of the pandemic. The threat of pandemic
always be significant for all companies and businesses worldwide. Tata Motors has many fierce
ala, including Tesla, Honda, Hyundai, and BMW. Lower market share for the company is the
It of customer market expansion and competitor market share growth. Since the rivals provide
most cutting-edge designs and features at less expensive prices, they are constantly in price
petition with Tata Motors, which in tum affects Tata Motors' sales and profit. Their rivals have
access to resources and professionals with specialised knowledge, which enables them to
cutting-edge products with superior engineering in this sector. Innovation is one of the
to the industry but is also beneficial for industrial growth. The business should continue using
l8ffl8 strategy with other brands. As a result, the business's sales and profitability will increase.
 NEW PRODUCT DEVELOPMENT ANO NANO

produd can be considered new under the following situations:-

• New-to-the-world products
• New product lines
• Add1t1ons to existing product lines
• Improvements and revisions of existing products
• Repositioning
• Cost reductions

~ T MAMr;s THC: T"TA N"NO 50 Cf-tr-AP?

No Dk C<>nClrooo..-.g Wind- .......i .,._.., by hund
an "'.nndan:t mode,! ~tN(lhl 1 m ':,fo

rding Nano, it belongs to the category of products that are brand-new to the market because it
a record for being the most affordable car ever produced without sacrificing quality. Specifically,
I way value analysis. Since it's the first time in history that an automobile this inexpensive has
built, it can also be regarded as a new product in the sense of cost reduction. The Nana's tale
s beyond how it affected the auto industry. It's a story that sheds light on the modem India,
is an eager, aspirational country with a mix of engineering talent, a need for affordability and
, and the ambition of young managers seeking to leave a stifling corporate setting. In fact, Tata
rs• stodgy, complex management structure has been flattened by the Nano team, which was,
average, between the ages of 25 and 30. This has produced an unanticipated byproduct known
 IDEA GENERATION AND NANO
:l)lsruptive Technology: Technology that brings radical change by introduci ng new ways.
A
nology that is -

• Significantly cheaper than existing technology.

• High performing
• Great functionality
• Convenient to use
• Bnngs to market a total different value propositi on than already existing ones.

u wfamilies riding two-wheelers, with the father operating the scooter, his young child standing in
t of htm, and his wife seated behind him carrying a small child , according to a dream
that I had.
the nighttime driving conditions to that. It is quite risky. The thought of a safe, inexpens
ive, all-
lM~ter mode of transportation for such a family made me wonder if it was even possible .

__,~~ore, Ravi Kant, who by then had become the company's managing director, once
more went
Wagh when Tata Motors required someone to oversee the company's most ambitious
ambition
s far to develop the world's cheapest car ever.

agh reflects on the knowledge he acquired while hawking the little truck. He asserts that
people
to move from two to four wheels. More and more people are able to do so, but the Indian
auto
rket still only accounts for a small percentage of a potentially large market. In India, there are
just
-.- --· · automobiles per 1,000 people. Only 1.3 million passenger automobiles were sold
in India in
fiscal year that ended in March 2006, despite the country's auto business growing
by 12%
ually during the previous ten years. Accordingly, 300 million Americans purchase
as many
obiles each month as a billion Indians do in a year. This might quickly change if four wheels
as inexpensive as two. In India, nearly 7 million scooters and motorbikes were sold last
year,
median prices ranging from 30,000 to 70,000 rupees, or roughly $675 to $1,600. For its compac
t
IIOrTIObi'le, Tata is aiming for a price of 100,000 rupees ($2,500) or one lakh rupees
(in Indian
of measurement). That is still three times the annual per capita income of India, while
ing absurdly cheap to Western ears. Tata Motors plant employees make an annual salary
of
$5,500 on average .

ii the dream possible? What exactly should they make ?

Rattan Tata, the longtime chairman of Tata Motors and scion of the country's massive
Tata
conglomerate, first announced his aim of developing a one-lakh automobile in 2003, it was
 crazy and nGW I . . . . . . II 1ly lo bulld I car lfrordable enough for mocotblk6
He ... lrtl 1hlt It . . ind Ml be done while tlallng, "They .,. ltlll aaying I Cll'l't be
~,ane ta1k1 about lllltl IUtO«dJII• oaetlng $5,000 or $7,000. There wlfl hopefully be•
of low-cDlt . . . . . . . . . With ft.
 COST REDUCTION

reduction is the actual, long-term decrease in the price of goods produced, sold, or provided
ces without compromising the goods' quality or fitness for the intended purpose.

dvantages of Cost Reduction:

• Increased profit means higher dividend payments to shareholders, funding for worker welfare
programmes, and more affordable prices for goods.
• Competes with rivals
- Tax revenue for the government. A lower export price is possible.
- Increasing productivity results in cost reduction.
Cost cutting places a focus on ongoing improvement, which will boost the company's
reputation in the long run.

ngers of Cost Reduction:

- The staff might not like the cost-cutting scheme, and quality could be lost in order to save
money.
- Cost reduction could not be genuine or long-lasting.
- Conflict between organisational goals and personal goals.

of Cost Reduction:

all business activity categories can be reduced in cost. There may be no circumstance that
be made better. It covers a wide range of topics, including new office designs, product
, manufacturing processes, office and factory materials and equipment, marketing
ation, etc. It may also include certain operations like buying, handling, packing, shipping,
,er,10UtN1°lQ, marketing, employing office space, and even using financial resources.
 SUPPLY CHAIN MANAGEMENT

FACILITY LOCATION

• MIJII modal connectMty

e~~----.. -~ -·
•MIC:t

E-
~
.
fl~

- ·-
I ~ .. ~
.... .___~•

'!'·'"'t-4-~ •GM
• Ra]tot
• Lend for wppllcr par\$

. • lndustrlal and labor environ.

--
'

,' ,·.,: •AhmadAbad

•,. • ,; • I

E2i - 't
~·.:
:~ .
................. _~ .. - '
. .!-
• Guiarat lndustrlal Development Corporation (GIOC)
•land

• Gujarat Agriculture Univer~tv (GAU)

• Delhi-Mumbai Industrial Corridor (DMIC)

• Special Investment Region (SIR)

t is a better choice for logistical reasons and satisfactory industrial and working conditions in
state. The state, like West Bengal, is well connected by air, sea and land routes. And the Delhi-
i Industrial Corridor (DMIC), which runs through two-thirds of Gujarat, and the proposed
Investment Area (SIR) will soon make it even more attractive.

location of the Nano factory was near Charrodi railway station, just 200 km from Rajkot, the
of the best engineers.

port was only 300-400 km from Pipavav and Mundra (Mundra has a container depot for vehicles
by Manrti) and a huge RoRo (or roll-on roll-off) terminal for loading and unloading vehicles.
an advantage}.

just 1km from the property was his 6-lane highway for Tata Motors. The state can also acquire
r of land if Tatas gives the green light, which Tatas gave the go-ahead last week. Within
~ his 1,000 acres of state-owned land were transferred to the Tatas family at market value .
 SWOT ANALYSIS

STRENGTHS WEAKNESSES
Recognized Brand Image Greater operational costs &
Research and Development Lower rate of profits
Inter national Presence No Foothold in Luxury Segment

SWOT ANALYSIS

OPPORTUNITIES THREATS
Tata Nano Price
Digital Marketing Competitors
Acquisition, Merger, Joint Venturing Innovation of Competitors

ata Motors is a well-known automotive brand on a global scale. The

business sells its own cars
er a variety of brand names, including Jaguar Land Rover, Tata Hitachi, Tata Daewo
o, and Tata
rcopolo. This has increased the company's brand value and brand
image in addition to
nding the company's market. According to Forbes, Tata Motors' marke
t value will be 4.5 billion
rs by 2021 . In 2020, they held the 1037th spot among the Global 2000
top companies. Tata
rs has a well-established distribution network with more than 1600
workshops that spans
of the nation's districts. The company's active supply chain system
is demonstrated by the
ce of manufacturing facilities in various nations. Market penetration is
aided by established
bution networks, which provide a competitive edge. Taxi cabs, which
also offer fundamental
like car rentals, have helped the business diversify and expand its clientel
e. The business
more than 23% of its entire budget to this activity. It demonstrates
the company's
itment to expansion and productivity. Additionally, Tata Motors has resear
ch facilities in the
India, Spain, and South Korea. Tata Motors has a presence abroad, conduc
ting business in

the company has acquired successful brands like Jaguar and Landrover that were profita
ble
~ years, this has made the company more dependent on its subsidiaries and
resulted in
 sts nd
,lriGr,er 0 perational co a lower profit rates. The company's overall sales and profits fell from
.,e previous five years as a res.ult of this. The company started building the Tata Nano in India,
Si(!Qur. and West Bengal back in 2008. Under the Land Acquisition Act 1894, the West Bengal
mment intervened al that time and took control of the land where the company planned to
ct a factory. This occurred as a result of West Bengal's desire for Tata Motors to establish a
t,US!ness there. Tata Motors still struggles to establish a solid foothold in the luxury segment,
profit margins are higher. As we can see, Tata Motors operates in more than 125 nations
Unfortunately, the business did not have the same impact as its rival brands, such as
lhl(]fl'Jwirle

Toyota. Honda, and Volkswagen.

IM'noSl all well-known brands and businesses use social media to interact with their target market.
order to engage more with its target audience, Tata Motors should maximise the use of all social
ia platforms, which will enable the business to gather useful feedback for enhancing its goods
seMceS Despite being the most affordable vehicle, Tata Nano did not do well in India and was
-.i;:_,.tinued by 2018. However, the company can still use this model in other nations to test its
lity. The company's distribution network and supply chain system should be expanded in its
t market if it wants to further grow its customer base. The company has benefited from
uisitions, mergers, and joint ventures in the past because it already owns renowned brands
Jaguar, Daewoo, Hitachi, and others.

pandemic not only killed people's health but also the global economy. Many businesses went
of business and many people lost their jobs as a result of the pandemic. The threat of pandemic
always be significant for all companies and businesses worldwide. Tata Motors has many fierce
• including Tesla. Honda, Hyundai, and BMW. Lower market share for the company is the
of customer market expansion and competitor market share growth. Since the rivals provide
most cutting-edge designs and features at less expensive prices, they are constantly in price
· ·on with Tata Motors, which in tum affects Tata Motors' sales and profit. Their rivals have
access to resources and professionals with specialised knowledge, which enables them to
cutting-edge products with superior engineering in this sector. Innovation is one of the
to the industry but is also beneficial for industrial growth. The business should continue using
lame strategy with other brands. As a result, the business's sales and profitability will increase.
 TRANSPORTATION

Open Optimal
Distribution Transportation
Network

Distributed Shorter Lead

Assembly Line Time

ata motors followed an open distribution system by making use of third party logistics to reach
n remotely located rural areas. It focused on enhancing modularity both in products and
~JCffllses. Transportation of manufactured vehicles is taken care of by the company-owned
llrllrtSPOrtation facility that delivers automobiles and commercial vehicles straight to the dealers.

'ATA's production facilities are located in Jamshedpur, Pune, and Lucknow. After the dealer
its their order to the corporation via a request form, the automobiles are assigned to them and
into trailers to be delivered to the dealers.

ver, there are two options for delivering the automobiles:

Through trailers: The automobiles are put onto trailers at the plant and sent to various dealers
situated in various locations. There are various trailers with a capacity of 5, 7, and 1O

Through trains: It is uncommon for vehicles to be moved by rail; if this occurs, clearing and
forwarding agencies are recruited. This mode of transportation is used seldom and mostly for
lfflDort.ant cities such as Delhi and Mumbai. This transportation is typically used when there is a
demand in the market and trailer transportation is unable to satisfy the market's high
r
SOURCING

> suppliers divided into Proprietary and Non-proprietary.

> 97% parts sourced from local suppliers.
> Innovation in mfg. processes done locally to avoid extra costs.
► Long term volume contracts rather than annual contrads.
► ]5% single source components

TATA separated the parts into two categories: tata motor designs and proprietary designs. For
115 own designs, TATA Motors op\ed for trusted vendors like Bosch, which provides
the engine
management system and notably influencect the development of the diesel engine. Tata Motors
chose vendors with strong process skills for the components and systems that were created in-
hOUse because they could make insightful recommendations and enhance the designs. The
Nano will have 97% local content from day one and almost all of its components are from local
suppers. Tata's suppliers played a crucial role in both the purchasing and design and
deve1opment processes.

t, • • ••

vital decision was to bring in suppliers. Tata chose following suppliers for achieving this.
LIERS TO TATA NANO

► Freudenburg
..
..

► Continental
> ltw Deltar
> Delphi
> INA
Denso
Johnson Controls
Fag
Mahle

• •• •
ceekay
Vibracoustic
Visteon

Behr
 INVENTORY

Inventories are those products that a .

•anents of completed QOOds. these arerethused

d . d1rect1y in production
. .
and are eSSential
e irect inventories:

Work in process inventories.

Finished QOOds inventories.

ry Control Techniques:

·ng and maintaining the ideal inventory level contributes to ma · · ·

.
1es, _
. the following,
hke can be used to solve inventory man t · owner wealth. Some
x1m1s1ng
C analysis agemen issues:

N system
Time (JIT)

~-•.tool for classifying, keeping an eye on, and managing stoeks. The company
same level of control over every inventory item. A different name for it is
• According to this method, inventory management entails conect1y
lrNaitory into one of three categones-A, B, or c. The following table
should be best classified:
can categorise inventory at Tata Motors using the ABC system. ABC uses two different
ification schemes:

• Values of per item

• Value with consumption

uin number, but consume large number of resources Must have:

• Tight control
• Rigid estimate of requirements
• Strict and closer watch
• Low safety stocks

llllaed by top management

.. . . - ... .
Purchase based on rigid requirements
Reasonably strict watch and control
Moderate safety stocks
Managed by middle level management

rdinary control measures

urchased based on usage estimates
safety stocks
 KANBAN SYSTEM

ires a lot of
age ment. It's a proc edu re that requ
KANSAN process 1s a tool for inventory man
of KANSAN are as follows:
lffimllfflltflt and self-control. Advantages

• Less inventory
material
• No ltne stoppage because of KANSAN
sup plier
• lnfom1ation flow 1s fast from buy er to
n
• M1rnm1zes waste and overproductio

ntory control.
Tata Motors Ltd. uses KANSAN system for inve

Push Production

➔ OP.2 ➔ OP.3 ➔ OP.4

\ ......
CJP.1

................ ...._. Goods

5lodi

....
.... .... . 1.. ._.... .....
Twilmlr.... .... .... .... .
._

y (For the year ended 2015-2016)

Tumove, Rllio • Net Salee/ Average Inventor
= 9015.47CRJf'N

ventory = 251 crorea

 PRICING

ating waiting time and delays

asmg utilization of warehouses & trucks

mizing location of warehouses and plants

1m1z1ng transportation networks

••aras & Challenge Suppliers to lower costs

._:Tll!ATION PRICING/ LOW PRICING STRATEGY

the wor1d was designed. It was important to understand that the

;wllhln the required range of 1 Lakh Rupees for the Indian market.
omobile features were necessary.

" is is a pricing.,.......,.. · a company

swiftly

. "
 SIPOC MODEL OF NANO

are internal challenges to supply chain outsourcing in India

Management buy-in

o Cultural fit

" Scope of outsourcing

o Restruduring organization

· ·ng rrocesses in view of outsourcing strategy

Sl.Aa both for internal resources and for external 8gencies

::f1C10"'5 the organization and init.tating MIS a,tneratlon
 0 Developing short-term and long-term infrastructure

Developing strong intra-country dependable distribution service

Following are external challenges

Optim1zrng within infrastructure constraints

(' Poor road conditions

0 Lack of dependable communication infrastructures

o Real estate hurdles

0

M111mll'1CJ multiple government authorities

o Sales tax authority

manufacturing viability, the Manufacturing Engineering 9R)l4) wortca

n and Product Engineering teams. When it comes to Tala Nino, the
inputs were provided by ·
~ESSES

............ LAYOUT

Power Train Shop

K3'1111ftL VIEW OF TATA'S ANAND PLANT

SSSHOP·

• Uses 5 cast iron dies,

High speed hydraulic tandem press

• Tandem press which makes 2 doors in one cycle

• Output- 14 door panels per minute

• Press capacity: 1200 - 2000 tones

• Process Pressing, Trimming, Flanging, Piercing

• SMED - Single minute exchange of die

DSHOP-

• 11 body panels welded together to form a steel unibody

• 130 state of the art robots work together to weld the panels & form the frame
• Capacity: 1900 bodies on 3 shift basi
• Cycle time: 54 - 90 second
• Fully automated welding facility

• Body in white {BIW) brought to paint shop

• Programmed robots painting on the outer side and workers painting on the inside

• Cycle time: 1 body per minute

• ProoesS carried: Degreasing, Prewashing, Phosphate coating, Electro coating, Spray
painting, Baking, Visual inspedion

Aaeembly of engine and gear box

Uaes a two cyUnder engine, laSt used in 1970

35 HP engiMt ....,nbled by hand

manual ~trar_,n.,,....
-..::tt111SSIS-FINISH) SHOP-

• Uses automated moving assembly hne

Assembly of the power train unit. Fuel tank & wiring hamesa, IUIPlf1lion tnl, ltc

• Separate assembly line for door assembly

• uses 3 lugnuts instead of the conventional 4 lugnuts for tire mounting

 Bumpy Hoad Test and 30 to 40 Degree Inclined Test: To further check for vehicular
per1ormance under different conditions

Water Wading Test (300 mm): The vehicle is made to traverse in certain set depth levels
of water at different speeds

Norse, Vibration and Harness (NVH) Analysis: To test the vehicular noise and vibration
characteristics

Tata Nano is a low-cost, rear-engine, four-passenger city car that is primarily designed for the
domestic market. It was produced by the Indian company Tata Motors. The low cost of Nano
of itS greatest advantages. The starting price of Rs. 1,000,000 is less than the next cheapest
on the Indian market, the Maruti 800, which has a price of Rs. 1,84,641. Even with additional
fees such as the service tax and road tax, the base model Nano will still only cost Rs.
ooo. Its most expensive versions, like the Nano LX, even have advanced features. The two-
users, second-hand car users, and middle- and lower-income segments are the ones that
II aimed at as the target customer base. Without sacrificing quality, safety, or environmental
I
Tata marketed Nano as ''The Peoples' Car," "One Lakh Car that Drives One Billion
•"and ''The World's Cheapest Car."
 CONCLUSION

oue to the fact that this had never been done before, Tata Nano was able to receive a great deal of
praise upon its introduction. At the time, it was regarded as a fantastic invention. Unfortunately, this
idea wasn't able to "alter the game."

- It happened because there wasn't a good marketing plan for a product like this. First of all,
Tata Motors was unable to connect with its target market because their dealer network was
concentrated in cities while the latter were home to the target market. The company failed to
fill the knowledge gap between their target demographic and the car-buying process.
- The project's eighteen-month delay as a result of the production unit's relocation from Singur,
West Bengal to Sanand, Gujarat, made the situation even worse.
- The Nano was advertised as the "One Lakh Rupee" automobile, but Tata eventually struggled
to maintain that price and the on-road cost of the base model.
The vehicle, however, encountered numerous mechanical problems throughout its initial run of
manufacturing, which further led to its demise.

- Several Tata Nano automobiles were reported to have caught fire over the first two years as
a result of improper wiring.
- Due of the lightweight shell, the Nano suffered poor ride comfort and stability difficulties.
- Tata was primarily concerned with keeping the price of the vehicle as low as possible, which
led to the use of subpar materials that were very poorly constructed.

One of the greatest disasters in the history of the Indian automotive industry is still regarded as the
Tata Nano's failure to live up to its potential as an innovative automobile.
 REFERENCES

!J.!!QSttwww tatamotors.com/products/

wos l/11de co/case-studies/swot-analysis-of-tata-motors/

nttps.//pdfcoffee com/download/297 4-sales-and-distnbut,on-system at;byund<il am
motors-pdf-free html

trttos //investors.tatamotors.com/financials/72-ar-html/pdf/Introducing-Tata Motor R1!

https //hbr orq/2011/01/learrnng-from-tatas-nano-mista
//www.tatamotors.com/about-us/company-profile/