4. NATURE OF BUSINESS AND
Sector : Automobile
Industry : Light, Medium and Heavy Vehicles
• Founded : 1945
• Founder : JRD Tata
• Headquarters : Mumbai,India
• Key people : Ratan Tata,Ex-chairman; Cyrus P
Mistry, Non Executive Director & Chairman
• Parent : Tata Group
6. IMPORTANT EVENTS
Tata entered the commercial vehicle sector in 1954
after forming a joint venture with Daimler-Benz of
Tata Motors entered the passenger vehicle market
in 1991 by launching the Tata Sierra, a multi utility
Tata launched the Indica in 1998, the first fully
indigenous Indian passenger car.
2004 Tata Motors acquired Daewoo's South Koreabased truck manufacturing unit.
2006, Tata formed a joint venture with the Brazilbased Marcopolo.
2008, Tata Motors acquired the British car maker
Jaguar Land Rover, manufacturer of the
Jaguar, Land Rover and Daimler luxury car
brands, from Ford Motor Company.
8. GLOBAL PRESENCE
Tata Motors leverages a comprehensive global
distribution network operating in 182 countries and over
6,600 sales and service touch points.
THE MIDDLE EAST
SOUTH EAST ASIA
14. CORPORATE LEVEL
Tata & Fait since 2006
Tata Motors (SA)
Tata Motors' joint venture with
Tata Africa Holdings, has an
assembly plant in the Gauteng
province of SA.
Tata Automobile Corporation
Tata Africa Holdings through a
joint venture between
Accordian Investments and the
Imperial Group, to market and
distribute Tata vehicles in SA.
Jaguar Land Rover is a
subsidiary of the Indian
carmaker Tata Motors since
15. BUSINESS LEVEL
Tata nano, the cheapest car in the
Swach, the cheapest water filter
from Tata Chemicals. less than Rs
Tata Motors launched the Ace truck
in May 2005 for just above Rs
Tata Motors new launches like Aria
and the new 2011 Safari to regain
its lost market share.
Tata is looking at doubling SUV
annual volumes to over 70,000
units in the next 12-18 months,
Tata Motors is set to offer utility
vehicles at every price point right
from Rs. 6.5 lakh to Rs. 15 lakh.
16. OPERATION’S STRATEGY
Tata Group companies cumulatively spend Rs.12,500 crore on
research & development.
knowledge-based engineering application software from Tata
Technologies that speeds up results.
An engine ‘start-stop’ technology developed by Jaguar Land
Rover that stops an engine when the vehicle isn't moving, thus
saving on fuel;
High standard steel for safer and fuel efficient vehicles from Tata
The world's cheapest car, Nano, an innovation from Group
company Tata Motors, launched in April 2009, has 37 patents,
Swach, the cheapest water filter from Tata Chemicals, has 14.
Tata Steel, which acquired British company Corus in
2007, meanwhile, files around 50 patents each year.
Jaguar Land Rover has re-hauled its supply chain to secure cost
savings as well as a sustainability equation that gives the
company a green edge
A re-designing of process equipment at Tata Chemicals' Haldia
plant that cut process downtime by 40%.
Tata Motors’ presence cuts across the
length and breadth of India. Over 4
million Tata vehicles ply on Indian
The company has four major
manufacturing bases in India.
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
19. 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
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 Lowfloor, Ultra Low-floor & CNG Buses
20. Production capacity:
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)
21. Inventory management
Q) Why It Is Important to Understand the Cost Relationships in
Production and Inventory Management.
Ans: They affect the economic efficiency (profits) of the firm and an
understanding of these relationships helps managers make more
effective production decisions.
• Reasons to hold inventory
1. Matching supply with demand
2. Prevent stockouts
3. Lower purchasing costs
• Reasons not to hold inventory
1. High maintenance cost
2. High protection cost
3. Depreciation and obsolescence
E procurement initiative.
• Global Sourcing Team – China , a key destination for sourcing
essential items like tires, power steering units etc., Steel procured from
Long term relationships with a stable and loyal pool of suppliers.
• Technology driven procurement – SAP and VCM.
Strategic subsidiaries & JV’s – TACO group of companies , Tata
• Centralized Strategic Sourcing for key components – FIP’s, Steel etc.
• Group resources – Tata Steel and Tata International .
• Localized supplier base at mfg. locations – low inventory levels.
24. Facility Layout
Layout planning is determining the
best physical arrangement of
resources within a facility.
It may be defined as a technique of
locating machines, processes and
plant services within the factory so as
to achieve the right quantity and
quality of output at the lowest possible
cost of manufacturing.
25. Objective of a good Layout
Provide enough production capacity.
Reduce material handling costs.
Reduce congestion that impedes the
movement of people or material.
Reduce hazards to personnel.
Increase employee morale.
Utilize available space effectively &
26. Product Layout
Involves the arrangement of machines
in one line, depending upon the
sequence of operations.
Materials are fed into the first
machines and finished products come
out of the last machine.
a) All the machine tools or other items of equipments
must be placed at the point demanded by the
sequence of operations
b) There should no points where one line crossed
c) Materials may be fed where they are required for
assembly but not necessarily at one point.
d) All the operations including assembly, testing
packing must be included in the line.
a) Low cost of material handling, due to straight and short route
and absence of backtracking
b) Smooth and uninterrupted operations
c) Continuous flow of work
d) Lesser investment in inventory and work in progress
e) Optimum use of floor space
f) Shorter processing time or quicker output
g) Less congestion of work in the process
h) Simple and effective inspection of work and simplified
i) Lower cost of manufacturing per unit
a. High initial capital investment in special
b. Heavy overhead charges
c. Breakdown of one machine will hamper the
whole production process
d. Lesser flexibility as specially laid out for
31. Capacity planning of Tata motors
The TATA formed part of an overall plan to rejig production at
Ranjangaon, Pune and Sanand Gujarat plants and comes at a time
when the automaker posted its second-lowest wholesale
dispatches of 948 trucks in April, in a clear under utilization of its
2.5 lakh units capacity.
32. Forecasting of TATA motors
Tata Motors, is now looking to set up a
truck manufacturing plant in Myanmar.
The Tata Technologies Manufacturing
Automation and Control Systems group
(MACS) provides solutions to consolidate
and streamline manufacturers’ operations.
MACS tightly integrates the supply chain
and enables integration between enterprise
and plant-floor systems. That’s better on the
shop floor and better in the marketplace.
Over the years, this division has designed
and manufactured automated dies, fixtures
and welding equipment. Its large design
group has some of the latest CAD facilities
and manufacturing facilities consisting of
light and heavy CNC machine shops, jig
boring room, plastic template shop, wood
pattern and model pattern shop, five axis
precision machine tools and laser control
machines. To cope with such a diverse
range, four assembly lines have been
established, three for commercial vehicles.
35. Capacity production
The Jamshedpur factory, which can
produce as many as 11,000 commercial
vehicles a month, is running at half its
capacity, according to two plant officials
who declined to be identified. “As the
market is down, there has to be some
adjustments made in promotion systems.
So we have brought in a rotation system
where a set of workers will work in the first
month and the rest in the following month
Tata Motors’ commercial vehicle sales rose 3%
to 432,597 units, while overall industry sales fell
0.37% to 639,806 units. Tata Motors’ sales in the
segment, however, contracted 29% to 117,682
units in the same period.
The Pune unit is spread over two geographical
regions- Pimpri (800 acres) and Chinch wad (130
acres). It was established in 1966 and has a
Production Engineering Division, which has one
of the most versatile tool making facilities in the
It houses a vehicle manufacturing complex which is
one of the most integrated automotive manufacturing
centers in India; producing a large variety of
individual items and aggregates. It is engaged in the
design and manufacture of sophisticated press tools,
jigs, fixtures, gauges, metal pattern and special tools,
as well as models for the development of new ranges
of automobile products. Its capabilities have enabled
Tata Motors to introduce new products and improve
existing ones without resorting to imports of dies or
With a growth of 28% in 2006-07, Tata
Motors recorded its highest ever sales of
(334,238 commercial; 246,042 passenger)
vehicles. The Company’s exports
witnessed a growth
of 6.5% to 53,474 numbers. The
approximate indirect economic impact
generated by the
company in 2006-07 is summarised below
39. INDIRECT ECONOMIC IMPACT
Worldwide, Transport sector has emerged as
the biggest employer *
1 Commercial Vehicle - employment for 13.3
1 Car - employment for 5.3 people
1 Three Wheeler - employment for 3.9
1 Two Wheeler - employment for 0.5 people
* Source: Automotive Mission Plan 200616, Includes: Direct and Indirect
The administrative process that
takes place within
a manufacturing business and
which involves making sure
that sufficient raw
materials, staff and other
necessary items are procured and
ready to create finished products
the schedule specified.
41. To achieve its design goals, Tata
refined the manufacturing
process, emphasized innovation and
sought new design approaches from
suppliers. Many components of the
Nano are made in
Germany by Bosch, such as Fuel
Injection, brake system, Value
Motronic ECU, ABS and other
42. The Nano was originally to have been
manufactured at a new factory in:
Singur- but increasingly violent
protests forced Tata to pull out
Tata Motors is
reportedly manufacturing Nano at its
existing plant in:
43. Cost cutting features
· The Nano's trunk does not open.
Instead, the rear seats can be folded
down to access.
· It has a single windscreen wiper instead
of the usual pair.
· It has no power steering.
· It has no ABS.
· In Base model it has three lug nuts on
the wheels instead of four.
· It has only one side view mirror.
introducing the car with an artificially low
price through government subsidies and
· forgoing profit on the car.
· using vertical-integration to artificially
boost profits on cars at the expense of
· partially using inexpensive polymers or
biodegradable plastics instead of a full
raising the price of the car.
Tata motors makes it production planning
in such a way that sufficient raw material
, staff and other necessary items are
available in proper way to produce and
make a product in finished goods during
a given time period without making any
delay in production.
Company makes aplann about its
production in advance keeping in mind
the availability of the resources and the
ordered recived is ful filled
a plan of procedure, usually written, f
or a proposed objective, especially wit
h reference to thesequence of and tim
e allotted for each item or operation n
ecessary to its completion
Tata motors used to do scheduling in
such a way so that it minimize the
production time and costs, by telling a
production facility when to make, with
which staff, and on which equipment.
It aims to maximize the efficiency of
the operation and reduce costs.
Tata motors uses Production scheduling
tools which greatly outperform older
manual scheduling methods.
These provide the production scheduler
with powerful graphical interfaces which
can be used to visually optimize realtime work loads in various stages of
production, and pattern recognition
allows the software to automatically
create scheduling opportunities which
might not be apparent without this view
into the data.
Tata motors uses backward and
forward scheduling to allocate plant
and machinery resources, plan human
resources, plan production
processes and purchase materials.
Forward scheduling is done to plan
the tasks from the date resources
become available to determine the
shipping date or the due date.
Backward scheduling is done to plan
the tasks from the due date or
required-by date to determine the start
date and/or any changes in capacity
51. The benefits of scheduling to tata
Process change-over reduction
Inventory reduction, leveling
Reduced scheduling effort
Increased production efficiency
Labor load leveling
Accurate delivery date quotes
Webster’s dictionary defines quality as "a degree or grade of
excellence or worth". For the best companies in today’s global
business environment, the term means much, much more.
They see quality as the cornerstone of their enterprise, and the
ability to enhance it as the defining principle of profitability.
Tata Engineering, which turned the corner recently, has come to
understand this better than most.
India’s top automotive manufacturer is now reaping the rewards of
a comprehensive quality improvement initiative that it embarked
upon in September 2000.
The quality initiative has played an important role in the costcutting measures undertaken by Tata Engineering
Six Sigma under TBEM:The quality improvement project at Tata Engineering operates
under the umbrella of the Tata Business Excellence Model.
But the main component of the quality undertaking is Six
Sigma, a disciplined, precise and widely proven methodology
that aims for near-flawless products and services.
Developed by Motorola in 1986, Six Sigma employs a range
of strategies and tools to eliminate defects in processes.
Sigma, a letter in the Greek alphabet, is used by statisticians to
denote the standard deviation of a process.
To achieve Six Sigma quality, a process must produce no more
than 3.4 defects per million opportunities (an opportunity is
defined as a chance for non-conformance, or not meeting the
The higher the number of defects, the lower is your Sigma
There were many Sigma defects that Tata Engineering had to
eliminate to get back on track.
The weight of competition, ever-increasing customer
expectations and shifting market conditions made change an
The company’s older vehicles were getting obsolete, and its
newer ones were lagging behind in terms of customer
The focus of the Six Sigma programme at Tata Engineering
was, and remains, the customer.
"We realised that to succeed we had to completely reorient the
company’s thinking and the thinking of our people," says Atam P
Arya, Tata Engineering’s senior vice president overseeing the quality
"We had to stop treating quality as a burden and start accepting it as
the main purpose of our existence. Quality became, for us, the
strategy for survival — and for winning."
An important challenge for Tata Engineering was in changing the
mindset of its people. "Initially our people were very skeptical; they
thought this was some new fad that would soon go away.―
To ensure it did not, the company conducted a blanket
communication and training exercise across the organization.
The company took its products and analysed what customers
would want from them, and the critical-to-quality (CTQ)
characteristics they would be looking for.
For instance, a customer buying a truck will consider whether
it measures up in terms of load, speed, fuel efficiency,
operational smoothness, etc. These are his CTQ
As long as a CTQ attribute can be defined, it can be
incorporated in the Six Sigma model.
These attributes can then be linked to the manufacturing
parameters that must be achieved under the Six Sigma process
to meet a customer’s expectations.
57. Customer-desired service
Tata Motors Service rests on three core customer-desired
service promises: Responsive: Tata Motors Service will bring speedy
assistance through five responsive service offerings.
1) Doorstep service, 2) Online service, 3) Speed-Oservice,
4) Quick repairs, 5) 24X7 on-road assistance
Reliable: Quality service is a key deliverable across all
Tata Motors Service stations. Nearly 20,000 technicians
and 20,000 staff members, which includes workshop
supervisors and front office staff, have been trained and
certified by Tata Motors. There are two service offerings
under this promise.
Best value: Tata Motors is known for delivering
best value products which give value for years. Service
products are also designed on the same philosophy. This
promise has four offerings.
1)Rapid Repair, 2)Value Care, 3)Tata Motors Original
Parts, 4)Extended Warranty.
59. Other steps
To streamline its supply chain, Tata Motors Ltd plans
to reduce the number of parts suppliers by one-third in
three-four years as it gears up to introduce new cars.
The auto maker, which has seen domestic market share
fall in recent times, aims to have only one supplier for
each part that goes into making a car to ensure consistent
quality and reduce costs.
―It is a strategy,‖ Slym said. ―Instead of eight suppliers
for one product, we will have one.‖
62. Tata motors uses regular maintenance check
up for its various machinery so that
production can be done in a systematic and
smooth way. Greecing , lubricating of its
equipment is done at regular interval.
Company uses spare parts for its machines
which is original and its quality is standard so
that it runs for a longer period of time and the
maintenance cost can be reduced. Some
times company stopped its production for a
few days so that proper maintenance of the
equipment can be done and what ever
replacement is required can be made
Engine oil reduces friction & thus reduces wear in
pistons, bearings & other moving parts.
Engine oil also helps in better sealing during combustion of
Engine oil also cools high temperature zones in engine
through heat transfer to oil cooler & engine sump.
Oil also helps in flushing & cleaning carbon & soot deposited
during combustion within the engine.
Some amount of oil is lost or consumed in process of all of
the above. The oil consumption may vary from engine to
engine & may also depend on driving condition & usage. It is
thus necessary to periodically check & top up the engine oil
Engine oil gradually loses its said properties with use & is to
be periodically changed to restore its effectiveness & improve
engine performance & life.
Timing belt becomes worn, elongated & hardened with usage
In case of any teeth damage / uprooting the valve timing
would get disturbed with major damages to valve
train, camshaft & pistons
Thus timing belts are to be periodically checked & replaced
as per TML recommendations
Valve contact with their seats should be air tight for optimum
With use the contact surface of valve with seat & camshaft
wears off increasing the clearance
The increased clearance results in leakage of compression &
thus inefficient engine operation
Valve clearance thus is to be periodically adjusted as per TML
Drive belts drive engine auxiliaries like alternator, AC compressor, Power
steering pump & radiator fan (in some models).
With usage, the drive belt wears out, elongates & hardens. This leads to
belt slip which affects the performance of these auxiliaries viz. Battery
draining, less AC cooling, engine overheating etc.
The belt tension is thus to be periodically adjusted & belts to be replaced, if
Snapping of belt during drive could be potentially dangerous due to sudden
loss of brake & power steering efficiency.
The cooling system is sealed & pressurised to improve cooling.
Coolant is used for prevention of rust & scaling, which reduces space in
cooling water passages in engine & radiator
The coolant loses its properties gradually due to heat & chemical changes.
The coolant is thus to be periodically replaced as per TM recommendation
for better efficiency.
The rubber hoses in cooling system harden over a period of time, thereby
losing flexibility in connections or develop cracks. This leads to water
leakage, which can overheat & damage the engine.
The hose clips are therefore to be tightened periodically & hoses replaced
for crack & hardness complaints.
Exhaust Pipe & Catalytic Converters
Exhaust pipe & silencer can corrode due to moisture & sulphides in
Damage to exhaust pipe can also take place due to flying stones
hitting the underside of the same.
Leakage of exhaust gases lead to air & noise pollution.
The noble metal present in Catalytic Converter has fine passages
for chemical reaction to reduce emission. The passages can get
choked gradually with carbon / soot, especially if fuel system is
defective & fuel is adulterated. This reduces engine pickup,
increases pollution & fuel consumption.
The exhaust pipe & catalytic converter are to be periodically cleaned
by blowing compressed air through them..
To reduce exhaust pollution, your car is fitted with Catalytic
Converter, which removes harmful pollutants. For its proper
functioning, we recommend the following fuels to be used:
For diesel version it is mandatory to use diesel fuel with sulphur
content less than 0.25%.
For petrol car use only Unleaded Petrol with octane rating of atleast
Always make sure that the tyres of your vehicle are
filled with recommended air pressure. Both low and
high pressure will hamper smooth driving and tyre life.
Maintain correct tyre pressure to ensure better tyre life.
2Check and maintain electrolyte level in the battery.
3Daily maintenance is to be regularly performed
especially on coolant level and engine oil level.
4Ensure periodic servicing as per maintenance
5For any adjustments or repairs please contact or go to
Tata Motors dealership and authorised service stations
6Use only recommended oils and lubricants. Check and
replace oil in engine, gear box, rear axles and brake
master cylinder periodically as per schedule.
Do not keep the engine at full throttle during engine
cranking. Keep the engine idling till the oil pressure
2Don't allow the engine to be idle for long periods.
3Don't come down the gradient in top gear. Always
change into a lower gear.
4Don't run the vehicle without a battery in its electrical
circuit, as the life of alternator will be reduced.
5Do not mask head lamp lens (top 1/3 or top 1/2
portions) with black paint. If done, this will reduce head
lamp light intensity.
6Don't use any other than approved brands/grades of
fuels and lubricants.
7Don't tamper with any adjustment made by Tata
Motors dealerships and workshops.
69. Driving Tips
While driving the vehicle, always use seat belt for your safety.
Same is applicable for all passengers.
2 Avoid cranking of engine for more than 30 seconds. A gap
of 2 minutes should be observed between successive
3Don't start the vehicle by pushing it.
4 Always start moving the vehicle in first gear.
5Don't adjust the seat belt while driving.
6 Always keep the vehicle in neutral gear while engaging and
disengaging the reverse gear.
7 On bad surfaces reduce your driving speed and drive
8 While travelling on inclines, change into a lower gear to get
the required pick-up
Tata Motors has been at the forefront of the
Indian automobile industry’s anti-pollution
efforts by introducing cleaner engines.
Therefore Tata Motors Limited is always
commited to understanding customers
The name of TATA itself says it all –