This project is based on secondary data source only. Tata motors does not have any relation with this project. It was made for study purpose only not for research purpose.

2. PREFACE
Every day brings different message for all people in the world.
India is the developing in the world. Economic Development as
a concept refers to the net increase in the total national product
of a country. So, it is the very crucial to study the same
The Industrial Growth is the “is the growth which is developing
rapidly and that tends to increase in the capital value rather than
yielding high income. The growth in the economy generates
demand for the skilled managers. MBA is the course, which is
specially designed to meet the needs of the demanding world.
Actually, theoretical knowledge gained in the classroom is not
complete without having practical exposure. Thus practical
study forms a very important part of MBA course.

3. ACKNOWLEDGEMENT
It is our acknowledgement great pleasure to present this report
before you.
Through this acknowledgement, we express our sincere
gratitude towards all those people who have helped us directly in
the preparation of this research report. Without them this Report
was hardly possible.
First of all, we would like to pay gratitude to our Dean Dr.
Sumeet Saxena and our Head of Department Mr. Amar Vijay
Gandhi for their constant guidance and support.
We have tried our level best to present the available information
in the best possible manner.

4. STUDENT’S DECLARATION
We, Jay Vaidya, Mariya Sadikot, Fazela Contractor, Nishant
Padh, Pooja vekariya, Jigar Dhamecha.
Hereby declare that the report for Practice School Project
entitled. “An Immersion Study of Managing Business at TATA
MOTORS” is a result of our own work and our indebtedness to
other work Publication, if any, have been duly acknowledged.
Date:
Place:
Student Name & Enrollment Number
Jay Vaidya (157340592084)
Mariya Sadikot (157340592190)
Fazela Contractor (157340592055)
Nishant Padh (157340592144)
Pooja Vekariya (157340592230)
Jigar Dhamecha (157340592048)

5. Index
Sr.
No
Contents
Company Profile
GROUP – A
1. QUANTITATIVE ANALYSIS
Importance of OR in Tata Motors
OR practices in the Tata Motors
2. MANAGEMENT INFORMATION SYSTEM
Information system used in Tata Motor’s
- Strategic
- Decision making
- Operational
3. MARKETING MANGEMENT
Marketing Strategies
- 4 P’s of Tata Motors
- Segmentation and targeting of Tata motors
- Positioning

6. - SWOT Analysis
4. HUMAN RESOURCE MANAGEMENT
HR practices in Tata Motors
Executive selection scheme (ESS)
Training and development
GROUP – B
1. COST AND MANAGEMNT ACCOUNTING
Marginal costing analysis
Marginal cost statement
Interpretation
2. PRODUCT AND OPERATION MANGEMENT
Manufacturing process or types of Tata Motors
Plant Locations
Inventory management
Facility layout
3. FINANCIAL MANAGEMENT
Calculations
Economic order quantity (EOQ)

7. Company Profile:
Tata Motors Limited (formerly TELCO, short for Tata
Engineering and Locomotive Company) is an
Indian multinational automotive manufacturing company
headquartered in Mumbai, Maharashtra, India, and a subsidiary
of the Tata Group. Its products include passenger cars, trucks,
vans, coaches, buses, construction equipment and military
vehicles. It is the world's 17th-largest motor
vehicle manufacturing company, fourth-largest truck
manufacturer, and second-largest bus manufacturer by volume.
Tata Motors has auto manufacturing and assembly plants
in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad,
and Pune in India, as well as in Argentina, South Africa,
Thailand, and the United Kingdom. It has research and
development centres in Pune, Jamshedpur, Lucknow, and
Dharwad, India and in South Korea, Spain, and the United
Kingdom. Tata Motors' principal subsidiaries purchased the
British premium car maker Jaguar Land Rover (the maker of
Jaguar, Land Rover, and Range Rover cars) and the South

8. Korean commercial vehicle manufacturer Tata Daewoo. Tata
Motors has a bus-manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction-equipment manufacturing
joint venture with Hitachi (Tata Hitachi Construction
Machinery), and a joint venture with Fiat Chrysler which
manufactures automotive components and Fiat Chrysler and
Tata branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company
manufactured its first commercial vehicle in 1954 in
collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1991 with
the launch of the Tata Sierra, becoming the first Indian
manufacturer to achieve the capability of developing a
competitive indigenous automobile. In 1998, Tata launched the
first fully indigenous Indian passenger car, the Indica, and in
2008 launched the Tata Nano, the world's cheapest car. 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 is listed on the (BSE) Bombay Stock Exchange,
where it is a constituent of the BSE SENSEX index,

9. the National Stock Exchange of India, and the New York Stock
Exchange. Tata Motors is ranked 28th in the
2014 Fortune Global 500 ranking of the world's biggest
corporations.

10. GROUP A
QUANTITATIVE ANALYSIS
IMPORTANCE OF OPERATION RESEARCH IN TATA
MOTORS
Operations management involves "overseeing, designing,
controlling the process of production and redesigning business
operations in the production of Tata Motors plant"
Operations management functions differ depending upon the
purpose of the organization. In a manufacturing setting plant,
operations management would include designing efficient
processes to produce the product, timely acquisition of raw
materials, ensuring adequate numbers of properly trained
workers, and proper maintenance of equipment.
Operations management in a service setting would focus on
ensuring that workers are adequately trained, that customer
service locations are equipped as needed and are safe for

11. employees and the public, that services are revised as dictated
by customer input or competitive forces.
While operations management is focused on the production of
Tata motors in an organization, its importance to the overall
organization cannot be underestimated. When an organization's
operations are properly managed, the functions of all other
departments are smooth, and when an organization's operations
are managed improperly, all other departments suffer.
Human Resource sector
A human resources department is able to make good predictions
on the need for staff, to develop good job descriptions, and to
recruit and train more easily when operations are run well. Jobs
are easier to fill, and turnover remains lower. If operations are
not run well, the consequences for human resources are not
good. For example, the human resources people cannot develop
good job descriptions and requirements for the production
department, find it more difficult to recruit and train, and face
higher turnover, which is costly to any organization.

12. Finance sector
An accounting department that is supporting a smooth operation
can pay materials and supplies bills promptly since a well-run
operation plans ahead. Payroll is easy to handle, with
predictable costs. But if the operation is run poorly, predictable
costs such as these are difficult to ascertain, making it difficult
for the accounting department to do its job well.
A finance department, which is charged with finding capital,
either through debt or equity financing, can raise money far
more easily with a smooth-running, successful operations
division, being able to point to high productivity, trimming of
costs, and good scheduling to meet demand. On the other hand,
if the finance department can only show a record of
inefficiencies, too much or too little inventory, and uneven
productivity, it is difficult to raise capital.
Marketing sector
The marketing division's success is reliant on successful
operations as well. It must have a successful and on-time
product or service to market. It must have a product or service

13. that works and that is being produced in appropriate numbers. If
it does not, if there is a shoddy product or a product for which
production is behind, the best marketing in the world is of little
use.
The legal division's ability to support operations is dependent
upon a well-managed operation, too. A well-made product does
not lead to liability claims. When supplies and materials are
planned for, there is less likelihood of contract disputes with
suppliers. When products are produced on-time, there is less
likelihood of contract disputes with purchaser.
All in all, operations are the heart of any organization that is
providing a good product and/or service. When operations are
managed well, it makes the function of all other departments
easier, and conversely, when operations are managed poorly, all
other departments suffer.

14. O.R. PRACTICES IN TATA MOTORS
GENERATION NEXT
Innovation drives the next generation of experience and
performance
The foundation of Tata Motors’ growth over the last 70 years is
a deep understanding of economic stimuli and customer needs,
and the ability to translate them into customer-desired offerings
through cutting edge technologies. Innovation is deeply
embedded in their DNA, and is demonstrated through their path-

15. breaking vehicles -- from India’s first fully indigenous passenger
car, the Tata Indica, to the Tata Nano and now the next-gen Zest
and Bolt. The vast range of light, medium and heavy
commercial vehicles includes the global benchmarked
Prima and Ultra trucks and the segment-redefining Tata Ace
platform.
The company today has R&D and design centres
in Pune (India), South Korea, Italy and the UK. They have over
4,500 engineers, scientists and technicians making path-breaking
innovations that are driving the form and performance of future
vehicles.
Their focus is on current and future auto technologies that
enhance the look, feel and driving experience for the customers.
Their new age concept cars and award-winning engines are
examples of how far the innovative culture has taken us. From
frugal engineering to their work on vehicles, powered by
alternative fuels, their innovation thrust forms one of the pillars
of a business built on sustainability.

16. CONCEPTS
The new range of next-gen vehicles being created at Tata
Motors is based on the HorizoNext approach of producing
vehicles that are both exciting and appealing. The Tata Hexa,
showcased at the Geneva Auto Salon 2015, is a muscular and
sporty concept SUV with flowing exterior lines and a unique
appearance.
Other concept cars that have grabbed eyeballs are the Nexon, a
modern youthful compact SUV, and the Connect Next Concept
car, which articulates the future of connectivity with its
advanced interiors and the seamless passenger connect with
professional and personal networks.
We have also created next-gen clean, green fuel based
commercial vehicles, such as the Magic Iris Electric, a zero-
emission, small electric commercial passenger vehicle, fitted
with a roof-mounted solar panel for supplementary charging;
and the front-engine Star bus Urban FE-Parallel Hybrid Bus, a
clean fuel option for public transport.
ENGINES
Drive Next, one of the pillars of our Horizo Next approach, aims
to create engines and power trains that offer best-in-class driving
experiences, without compromising on fuel performance or
space. Company’s latest major innovation is India’s first turbo-

17. charged multi-point fuel injection (MPFI) petrol engine, the
Revotron1.2T engine, which powers the Zest and theBolt. The
award-winning Revotron series has been designed to offer an
optimum mix of fuel economy, performance and refinement.
Also on the anvil are 3- and 4- cylinder petrol engines.
Multi drive mode is one of the key innovations in this engine.
This feature allows the driver to switch between ‘Sport’, ‘Eco’
and ‘City’ modes for varied levels of driving experience. Other
top-end features include the new F-Tronic Automated Manual
Transmission (AMT) for finger-shift and clutch-free driving,
and the electronic power assist system (ePAS) for power
steering.
DESIGN
At Tata Motors, design is not only about new surfaces, beautiful
colours, materials and finish, but also about creating compelling
products that offer the latest technology-rich features and high
performance. Their design teams based in UK, Turin
and India have created an all-new design language that is
demonstrated in the new launches, the Zest sedan and the

18. sporty Bolt hatchback. The Humanity Line, Diamond DLO and
the Slingshot Line give the Zest and the Bolt a sense of
humanity, friendliness, roominess, dynamism, stability, poise
and purpose.
The commercial vehicles team launched the Prima LX range as
a combination of power, fuel efficiency, affordability and
superior performance, setting new benchmarks in the medium
and heavy commercial vehicle segment in India. The Ultra range
of light and intermediate commercial vehicles has been designed
with stylish, futuristic and smart utility features.
R&D CENTRES
At Tata Motors, they strive to offer the best vehicle experience
to their global customers. Located in Pune (India), UK and
South Korea, our R&D centres focus on issues such as engine
performance, fuel efficiency and safety. The centres are
equipped with state-of-the-art facilities such as Asia’s first
anechoic chamber, India’s first full vehicle crash test facility and
India’s only full climate test facility.

19. MANAGEMENT INFORMATION SYSTEM
INFORMATION SYSTEMS USED IN TATA MOTORS

20. STRATEGIC LEVEL
• Tata Motors helps the middle managers with reports, with
on-line access to the organization’s current performance
and historical records.
• It primarily serves the functions of planning, controlling,
decision-making at the management level.
• Generally it depends on Transaction Processing System
(TPS) for data.
• It summarizes and reports on the basic operations of the
organization.
• It usually serves managers interested in weekly, monthly,
and yearly results, not day-to-day activities.
• It is not flexible and has little analytical capability.
• Tata Motors takes expert advice from Expert System
software.

21. Decision making by Strategic Management
Information Systems used By Tata Motors for
• Sales forecasting
• Financial management and forecasting
• Manufacturing planning and scheduling
• Inventory management and planning
• Advertising and product pricing

22. OPERATIONAL LEVEL
Tata motors operations level uses Transaction Processing
Systems (TPSs)
– Online processing
– Batch processing
– Data input
– Manual data entry
– Semi-automated data entry
– Fully automated data entry

23. It mostly used in following sector:
• Payroll Sales and ordering
• Inventory
• Purchasing, receiving, shipping
• Accounts payable and receivables.

25. 4 P’s of Marketing
Tata motors is a leading
automobile brand. It is most
widely known for its commercial
vehicles such as buses and
trucks. However, TATA motors
has also started an excellent expansion in passenger cars and it is
rapidly gaining market share. The Marketing mix of Tata Motors
talks about the 4P of the brand which has helped the brand rise
in the automobile empire.
1. Product in the marketing mix of Tata Motors Tata has a
very wide range of products it has passenger cars, utility
vehicles, Trucks, Commercial passenger Carriers And Defense
Vehicles
Passenger
cars
UtilityVehicles Trucks Commercial
Passenger Carriers
Indica
vista
Safari Dicor Tata
Novas
Buses
Indigo XL Sumo Grande TL 4×4 Winger

26. Nano Sumo Magic
Fiat cars Xenon XT
2. Price in the marketing mix of Tata Motors The prices of
Tata motors are generally affordable acceptable by the general
public at large. Tata always have something for the lower class
people with Nano being their trump card. Giving discount every
month and special promotion for certain type of vehicle is also
one of the strong strategy use by Tata Motors. Discount can be
made from Company’s profit or from dealer’s profit at certain
range.
3. Place in the marketing mix of Tata Motors – Tata Motors
has an extensive dealer network covering Indian and
International markets. Wherever you are, there is a Tata Motors
Sales and Service dealership close to you. The channel of
distribution, physical location, and dealership method of
distribution and sales is generally adopted. The distribution of
vehicle must be in a very systematic way, from the plant to
dealership and to end user. This is not only in India itself but
also to the world-wide dealership.

27. 4. Promotion in the marketing mix of Tata Motors – Tata
motors promote their products via Advertising and after sales
services
Marketing Plan (Segmentation and targeting of Tata
motors)
Tata Motors basically Segmented and targeted the following
groups of Indian population:
1. Market segments
a. The upper class
b. The Middle class
2. Usually for two-wheeler users.
3. Family with 3-4 members who have troubles while travelling
on a 2-wheelers.
Positioning
(Shifted the market position, by launching Tata Nano for middle
class peoples)
Tata Motors positioned the Tata Nano car as per the following
catch lines and slogans:

28.  1 lakh car to fulfill all your dreams!
 Cars are not just for the rich
Tata Nano was launched in the segment of being a cost leader in
the broad market to attract maximum number of the population.
We can place it in the quadrant as shown in the picture below at
the point of time of its launch.
With Tata Nano being launched in the Indian market, it now
gave the power to the common man of India to dream to own his
own car. The advertisements and media publications highlighted
the emotional quotient showing the happiness of children when
they see a car coming their home and the delight on the face of
the family members who depicted a middle class group.

29. The struggling India class who had a monthly salary of less than
Rs.6000 per month and constituted more than 110 million
households also got the encouragement to dream of buying a
car.

30. SWOT Analysis

31. SWOT Analysis
STRENGTHS
1. One of the most established company in
automobile sector
2. Wide & extensive distribution and service
network
3. Good market penetration in the taxi &
rental segment
4. Expert service professionals available
5. Many associations like Jaguar Land
Rover, Hispanso, Macropolo etc which
increases international presence
6. Dedicated engineering and R&D
department
7. More than 60,000 employees
8. Highly diversified product portfolio
WEAKNESSES
1. Limited international presence
2. Sometimes faces alleged quality and
durability issues
3. Not much customer engagement programs
and activities

32. OPPORTUNITIES
1. Expanding automobile market and
available space for competitors
2. Increasing per capita income and
purchasing capability of potential customer
base
3. Leveraging customer engagement
experience to acquire new customers
4. Leveraging mergers and acquisitions to
acquire newer technology
5. Augmenting the distribution and service
network in various countries
THREATS
1. Increasing fuel costs
2. Competition from other big automobile
giants
3. Competitive products offering same level
features at a lesser price
4. Product innovations and frugal
engineering by competitors

33. HUMAN RESOURCE MANAGEMENT
Human resource
HR practices in Tata Motors
 Vast pool of technically competent engineers and managers.
 Focus on development of technical capabilities
 Technical training centres, alliance with technical institutes.
 Focus on development of managerial capabilities
 Executive training programs at premier business schools.
 Career advancement schemes: ESS

34.  The process by which a job vacancy is identified and
potential employees are notified.
 Tata Motor’s recruitment process is regulated and subject
to employment law.
 Tata Motor’s main forms of recruitment through
advertising in newspapers, magazines, trade papers and
internal vacancy lists.
Recruitment
Internal
1. Contract through
present employees
2. Calling retrenched
employees
3. Promotion
External
1. Advertisement
2. Education institute
3. Contractors & jobbers
4. Waiting list
5. Recruitment at gate

35. Executive selection scheme (ESS)
 ESS is a fast track programme for accelerated
growth of high potential professionals. This facilitates
their early advancement to challenging and visible
assignments through a very systematic procedure.
 Candidates selected gain a huge lead in terms of
promotion and learning. They are promoted to manager’s
level thereby saving almost 10 to 13 years of work time.
 The successful candidates are relieved from their
current jobs and put on various project based training
programmes under the guidance of senior managers in
the company.
 If the candidates do not possess management
education, they undergo a 4 months mep at IIM,
Ahmedabad. After successful completion of training the
candidates are mandatorily rotated across departments to
acquire general management skills.

36.  The ESS is a jewel in Tata motors overall profile as it
provides a platform for every employee of the company to
perform and achieve maximum potential so as to exploit it
further for the growth of the company.
Training and development
Tata Motors are committed to building the competences of their
employees and improving their performance through training
and development. Their focus is on identifying gaps in their
employees’ competencies and preparing employees for changes
in competitive environments, as well as to meet organizational
challenges.
Some of the focus areas in training in the last year centered
on leadership, innovation management and internationalization
besides other training programs to drive a change in their
employees’ outlook as Tata Motor’s continue to develop as a
global competitor. Developmental initiatives for their senior
leadership were undertaken through international programs at

37. various premier institutions around the world. The entire senior
leadership was also taken through cultural sensitivity programs
conducted by world renowned faculty. Certain employees have
also been selected for the Fulbright fellowships for leadership in
management. In addition, in order to emphasize the sharing of
skills across their locations and functions, extensive technical
training programs were organized in Pune, Jamshedpur and
Lucknow. The technical exposure was enhanced further through
international training and participation at international seminars.
At Jamshedpur, Pune and Lucknow in India, Tata Motors
have also established training divisions that impart basic skills in
various trades like milling, grinding and welding to their young
apprentices. Tata Motor’s received the national best training
establishment award from the government of India for the eighth
time.
Performance Management
Performance management is a process which business uses to
achieve its targets and objectives effectively. It includes such

38. processes as planning and targeting, strategy development,
performance appraisals, etc.
Performance management is important for a Tata Motor’s
because it helps the Tata Motor’s to remain competitive, it helps
to expand and help the Tata Motor’s grow, it involves self-
evaluation and other staff evaluation which helps improve the
communication between staff and makes staff more aware of
how well they are performing. Training and development takes a
significant role in performance management. It has a major
influence in promotions of employees and the future of every
employee.
Managers exercise their control by planning with objectives and
targets, establishing the performance standards, monitoring the
actual Tata Motor’s performance, comparing performance with
targets and correcting mistakes and taking action.
In short performance management is a continuous process based
on flexible objectives closely aligned with Tata Motor’s goals
and supported by regular feedback. Employees are increasingly
being given greater ownership of the process and responsibility
for their own career development. But line managers still have a

39. vital role to play in monitoring progress, providing constructive
feedback and coaching employees to improve. The performance
management process provides an opportunity for the employees
and managers to discuss goals and develop plans for achieving
those goals. Therefore, communication involve between
managers and employees that they have to identify job roles and
functions related to the company objectives. They get together to
devise some performance appraisals to enhance the company
overall performance. The performance manager responsible for
supervising workforce and the group educates and develops
employee’s potential in order to improve workforce
performance.

40. An effective performance management system is based on
these concepts:
 Employees need to understand their roles clearly.
 There is a direct relationship between performance and
rewards.
 Performance management requires on-going coaching,
feedback and planning.
 Performance management can be a positive experience.
 Facilitate a process to establish clear role definitions and
accountabilities.
 Create a custom performance management program or
improve your existing program.
 Create your evaluation format.
 Develop policies and procedures.

41. GROUP B
COST AND MANAGEMNT ACCOUNTING

42. Marginal costing analysis:-
BIFURCATION OF COST 2014-2015 2013-2014
Variable cost
Cost of materials consumed 27,041.65 25,914.41
Employees wages 2,524.43 2,355.59
Freight inward 1,049.93 905.01
Consumption of stores and spare parts 447.36 497.90
Power and fuel 395.88 392.09
Repairs to plant, machinery 103.23 94.39
TOTAL V.C. 31562.48 30159.39
Fixed cost
Depreciation 2,603.22 2,070.30
Other F.C. 2541.43 2336.61
TOTAL F.C. 5144.65 4406.91

43. Marginal cost statement:-
2014-
2015
2013-
2014
Sales 36294.74 34288.11
Less Variable cost 31562.48 30159.39
Contribution 4732.26 4128.72
Less Fixed cost 5144.65 4406.91
Profit/(Loss) (412.39) (278)

44. P/V Ratio = Contribution/Sales
2014-2015= (4732.26/36294.74)*100
= 13.04%
2013-2014= (4128.72/34288.11)*100
= 12.04%
-5000
0
5000
10000
15000
20000
25000
30000
35000
2014-2015 2013-2014
Chart Title
Total V.C. Total F.C. Loss

45. BEP=Fixed cost/P/V Ratio
2014-2015=5144.65/13.04%
= 39452.84
2013-2014= 4406.91/12.04%
= 36602.24
Margin of safety=Actual Sales – BEP Sales
2014-2015= 36294.74-39452.84
= -3158.1
11.4
11.6
11.8
12
12.2
12.4
12.6
12.8
13
13.2
2014-2015 2013-2014
P/V Ratio
P/V Ratio

46. 2013-2014= 34288.11-36602.24
= -2314.13
DESIRED Sales- at level of profit rs__2000
= (Profit + F.C.)/ P/V Ratio
2014-2015= 54790.26
2013-2014= 53213.54
Sales
2014-2015 2013-2014

47. Interpretation: -
 The company is making loss in previous & current year.
 By way of increasing cost company is not able to achieve
profit in current year.
 Increase in revenue is less as compare to increase in cost
due to which loss is higher in term of previous year.
 Taken change is not favourable for the company.

48. PRODUCT AND OPERATION MANGEMENT

49. MANUFACTURING PROCESS OR TYPES OF TATA
MOTOR’S
Continuous process:
Tata motor’s consists continuous process method such that the
task is work on a continuous or alternative basis. At work on
task as a particular stage is complete, it must be passed to next
step without waiting.
Mass production:-
Tata Motor’s caters a large scale production of it’s
manufacturing parts, and Mass production basic features are:
greater the volume of production, more would be the reduction
in cost, so Tata company prefers Mass production for the
automobile part.
Process production:-
Tata motor’s consists process production method for the cars
manufacturing, in the process inter linked and production carried

50. on continuously through uniform and standard sequence of cars
production.
Plant Locations:
Tata Motor’s presence cuts across the length and breadth of
India. Over 4 million of Tata vehicles ply on Indian roads.
The company has four major manufacturing bases in India.
1. Jamshedpur (Jharkhand):
Established in 1945. The Jamshedpur unit was the company’s
first unit and is spread over an area 0f 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.

51. 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 MCAs 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.
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.

52. Inventory management:
Why it is important to understand the cost relationship in
production and inventory management.
They affect the economic efficiency (profits) of the firm and an
understanding of these relationships helps managers make more
effective production decisions.
Inventory management:
Reasons to hold inventory
 Matching supply with demand
 Prevent stock outs
 Lower purchasing costs
Reasons not to hold inventory
 High maintenance cost
 High protection cost
 Depreciation and obsolescence
 Taxes

53. Safety Management:
Safety management is an integral part of an organizations
responsibility, so Tata Motor’s refer following types of Safety
equipment:-
 Rainwear 
 Head protection-hard hats 
 Hearing protection-earplugs and muffs 
 Face protection - visors Safety glasses – goggles 
 Portable and semi-portable extinguishers
 Fire hose, reels and nozzles 
 Fire fighting chemicals 
 First aid kits 
 Safety signs and tape 
 Gloves
Facility layout
Layout planning is determining the best physical arrangement of
resource within a facility.

54. 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.
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.

55. ETP
LPG yard
T.Axle
Offices Materials Comp House
Engine
Press BIW
Paint Shop
Assembly Shop
Sub Station

57. Operating cycle
The operating cycle is the average period of time required for a
business to make an initial outlay of cash to produce goods, sell
the goods, and receive cash from customers in exchange for the
goods. This is useful for estimating the amount of working
capital that a company will need in order to maintain or grow its
business.
Cash cycle
Flow of cash that begins with payment for raw materials and
ends with receipt of cash on goods sold. Shorter the number of
days in this cycle, more the amount of available cash, and lesser
the need to borrow also called cash conversion cycle or cash
flow cycle.
Inventory period = (inventory/cogs)*365
2014-2015= (4,802.08/36707.13)*365
= 47.74 or 48 approx.
2013-2014= (3,862.53/34566.3)*365
= 40.78 or 41 approx.

58. Account receivable period= (Account receivable/ credit
sales)*365
2014-2015= (1686.75/36294.74)*365
= 16.96
2013-2014= (1728.06/34288.11)*365
= 18.4
Account payable period= (Account payable/ credit
purchase)*365
2014-2015= (3,950.53/27920.47)*365
= 51.65
2013-2014= (4,955.54/25542.69)*365
= 70.81
Operating cycle= Inventory period+ Account receivable
period
2014-2015= 47.74+16.96
= 64.7
2013-2014= 40.78+18.4

59. = 59.18
Cash cycle= operating cycle- Account payable period
2014-2015= 64.7-51.65
= 13.05
2013-2014= 59.18-70.81
= -11.63
Economic order quantity (EOQ) is the order quantity that
minimizes the total holding costs and ordering costs. It is one of
the oldest classical production scheduling models. The
framework used to determine this order quantity is also known
as Wilson EOQ Model, Wilson Formula or Andler Formula
EOQ= 2AO/C
2014-2015
EOQ= 356.27
A=Annual requirement=27,041.65
O= Fixed cost per order, setup cost=1,049.93

60. C=annual holding cost per unit, also known as carrying cost
or storage cost=447.36
2013-2014
EOQ= 306.93
A=Annual requirement=25,914.41
O= Fixed cost per order, setup cost=905.01
C=annual holding cost per unit, also known as carrying cost
or storage cost=497.90

61. Conclusion
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 customer’s needs.
The name of TATA itself says it all:
 Trust
 Acceptability
 Transparency
Accountability