Tata Motors is an Indian automotive manufacturing company and subsidiary of Tata Group. It produces various vehicles including cars, trucks, buses and more. Tata Motors acquired other companies like Daewoo and Jaguar Land Rover. It faced issues with its legacy mainframe systems, so implemented SAP as its new ERP system. Current KM practices at Tata Motors include various SAP modules, SOX compliance, knowledge based engineering, and manufacturing planning tools. Key KM tools are SAP SRM for supply chain integration and SAP WM for warehouse management. It also uses an in-house KBE software to reduce design cycle times.
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Tata Motors Overcomes Legacy System Issues with SAP ERP Implementation
1.
2. Introduction
TATA Motors Limited formerly known as TELCO is an Indian multinational
automotive manufacturing company headquartered in Mumbai, Maharashtra,
India, and a subsidiary of the Tata Group
It is the world's 17th-largest motor vehicle manufacturing company, fourth-largest
truck manufacturer, and second-largest bus manufacturer by volume, Its products
include passenger cars, trucks, vans, coaches, buses, construction equipment and
military vehicles.
Tata Motors acquired the South Korean truck manufacturer Daewoo Commercial
Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.
Tata Motors has a bus-manufacturing joint venture with Marcopolo S.A.,
a construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi
Construction Machinery), and a joint venture with Fiat Chrysler which
manufactures automotive components for FiatChrysler and Tata branded vehicles.
3. History
Tata plants across India were supported by mainframe-based information
systems which then connected to the different system and applications
Following 5 basic problems Tata Motors was facing due to the mainframe based
system –
1. Inefficient legacy systems
2. Information was distributed over a multiple departments
3. Process of loading and retrieving data was slow and inefficient
4. Production rate was slow because of the ineffective information flow
5. Cost occurred in handling the outdated legacy system was high
Tata Motors Choose SAP as the ERP Package to replace its legacy systems as
a solution to these problems
4.
5. Current KM Practices
SAP 3.1 & SAP 4.6c implementation (Asia’s largest Implementation)
SAP-SRM & WM
SOX-ITGC
Knowledge Based Engineering (KBE) in Design
Manufacturing Planning with " Delmia "
6. Current KM Tools
SAP SRM Implementation: End to end Supply Chain integration of Tata Motors ( from
Purchase, Supply, production, payment etc.) by the implementation of SAP-SRM project
Benefit: mySAP Supplier Relationship Management is a purchasing platform for sustainable
savings and value generation through full-cycle supply chain management
– Improve process by e-procurement
– Real time Supplier integration with business
– Knowledge sharing
– Reduction in Procurement cycle time
SAP WM Implementation :SAP- Warehouse Management (WM- with mobile data entry) is
combined with SAP RF console technology (through bar codes) to automate all the Warehouse
operations of Tata Motors
Benefit: Improved throughput at Warehouses by RF enabled processes
– Capability enhancement to handle more parts with same team size
– Real time Inventory tracking
7. Current KM Tools
Knowledge based Engineering Implementation in CAD/CAM
Tata Motors developed " KNEXT" an in house software frame work to develop
Knowledge Based Engineering applications. KNEXT have several modules in
the areas of body design, chassis design and vehicle performance.
Benefit:
– Processes defined on KBE have reduced design Cycle time about 30 percent
– Designer’s knowledge acquired over the years and company best practices
are captured and retained.
– Process is defined with KBE, reduce cycle time and improve adherence to
legislations, regulations, best practices.