2. Global Footprint
OTHER COLLABORATIONS/M&A & JVs
West Europe Russia*
• Tata Daewoo Commercial Vehicle
• Hispano in Spain & Marcopolo In Brazil U.K. Ukraine*
• JV with Jardine Matheson for Italy
ConcordeMotors Central Asia
• Technology Tie Ups at Spain,Italy Afghanistan East Asia
Uzbekistan China
North Africa South Korea*
Egypt
South Asia
West Africa Bangladesh *
Senegal Nepal, Sri Lanka
LATAM
South East Asia
Brazil West Asia Malaysia*
Saudi Arabia Thailand
Iraq, Iran
South Africa East Africa
South Africa* Kenya*
* Assembly Operations also
2
4. Technological Resources
R & D establishments at Jamshedpur, Pune & Lucknow – over
1400 engineers.
India’s only certified crash test facility for cars and hemi
anechoic chamber for testing of noise and vibration.
Tata Motors European Technical Centre (TMETC) set up in 2005
– primarily involved in design engineering and development of
products, supporting Tata Motors skill sets.
Tata Daewoo Commercial Vehicle Co. has its R&D facility in
Gunsan, South Korea.
Hispano Carrocera has its R&D facility at Zaragoza in Spain.
7. • Sound leadership – JRD, Sumant Moolgaokar, Ratan Tata
• Ethical business practices – guided by the Tata Code of Conduct
• Successful handling of integration issues – Tata Daewoo, Jaguar –
Land Rover
• Reputation and recognition – Tata brand.
• CSR initiatives
• Adaptability to the changing business dynamics.
7
8. Financial Resources
Stable cash flows for the past five years
Cash rich corporate parent – Tata Sons
Strong reputation – access to capital markets
8
9. Value Chain & Value System
Transporters, Convoy Drivers Dealer Network, Marketing
Association Research Firms, Vehicle
Financing
SAP , VCM
Inbound Outbound
Operations Marketing Service
Logistics Logistics
SAP , CRM - DMS
Suppliers , Contractors
Regional Warehouses, Dealer
Workshops, Distributors, TASS
Strategic Alliances
9
10. Inbound Logistics
Long term contract with service provider’s – transporters and
agents.
Personnel at regional offices for over seeing the smooth transit
of goods.
Transparency and monitoring through deployment of IT – all
transactions through SAP.
DTL supplies for critical high value items.
Efficient storage facilities – easy storage and retrieval.
10
11. Operations
Capital Equipment Manufacturing division – tooling development
capabilities of global standard.
Apprentice Trainee Course – ensuring stable source of skilled
manpower.
Kaizen & TPM team – continuous drive to improve efficiencies.
Automated manufacturing processes.
Distributed manufacturing – Assembly units at South Africa,
Thailand, Bangladesh, Brazil etc.
Maintenance – technical competence.
Capacity Utilization – Mercedes Benz cars make use of Tata
Motors paint shop facilities. 11
12. Outbound Logistics
Stockyards, all across the country.
Long term contracts with transporter’s – higher volume of
business to transporters ensures competitive price.
Regional Sales Office and Vehicle Dispatch Section linked through
SAP.
Efficient security system for prevention of any kind of pilferage.
12
13. Marketing & Sales
Structured approach to understanding the requirements of
individual customers – QFD’s conducted at regular intervals.
Clear identification of product requirements, leading to
development of innovative products – Tata 207 DI, Tata Ace
Pan India presence and global footprint.
Independent teams for addressing the requirements of
institutional customers – Defense, State Transport Units
Helping to augment the scarce resources – Fiat selling vehicles
through Tata dealerships, in return Tata has access to Fiat’s
technology and unutilized capacity.
Quick assessment of the changing market dynamics and consumer
preferences – Tata 407 LCV
Large network of dealers – use of technology : DMS. 13
14. Service
Easy availability of spare parts.
Efficient collection of data from field and communication to the
respective plants.
Pan India presence, as well as global presence.
Large network of workshops – Dealer workshops and TASS.
Training facilities – for dealer end and TASS personnel.
14
15. Procurement
E procurement initiative.
Global Sourcing Team – China , a key destination for sourcing
essential items like tires, power steering units etc., Steel procured
from Belarus
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
Cummins
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.
15
16. Technology Development
Approximately 2% of the annual profits of the company invested
in research and development.
Knowledge portal – helps employees keep abreast with the latest
technologies.
Extensive prototype building and testing facilities.
Strategic partnerships – MDI (France), Fiat etc.
Formal benchmarking process.
“Technology Day” organized across all plant locations.
16
17. Human Resource
Vast pool of technically competent engineers and managers.
Focus on development of technical capabilities – Technical
Training Center’s, Alliance with technical Institutes
Focus on development of managerial capabilities – MTC’s , TMTC,
executive training programs at premier business schools
Career advancement schemes – ESS, FTSS
17
18. Firm Infrastructure
Multi – Location facilities
Strong leadership – under the aegis of Tata Sons
Best in class prototype building facilities
Technology – SAP
Large product portfolio
18
19. Dynamic Capabilities
• NPI Process – reduced time to market
Tata Motors Vehicle NPI Process – Conceptual Overview
Product Product Design Validation
Concept Concept Pre-
Phases
Strategy & Design and Ramp-up
Evaluation Development & Production
Planning development Phase
Phase Phase Productionisation Phase
Phase Phase Phase
•Market •Concept •Performance & •Design analysis •Full design •Quality Proving •Ramp-up
analysis alternatives Weight analysis & simulation validation & Process •PL Build
Activities
(Indicative)
•Competitor •QFD •Style & Spec’ •Alpha proto •Beta proto tests validation
assessment •Styling themes dev’mt. & Freeze tests •Production tooling •P0 & PP Builds
•Explore Prod. •Packaging •Vehicle & •Aggregate tests •Vendor parts dev. •Vendor parts
Options •Manf. Feasibility Aggregate plans •Crash tests •Install & comm. approval
•Product •Cost targeting •Product costing •Manf. Planning Facilities •Homologation
planning •Financial analys •Detail costing
Gateways
PI
PI DR0
DR0 DR1
DR1 DR2
DR2 DR3
DR3 DR4
DR4 DR5
DR5 LL
Initiation
Project
Launch
Product
Product Concept
Concept Concept and
Concept and Design
Design Production
Production Project
Project
Strategy
Strategy Selection
Selection Project
Project Release
Release Release
Release Review
Review
Review
Review Approval
Approval
DR1 Sign-offs DR2 Sign-offs DR3 Sign-offs DR4 Sign-offs DR5 Sign-offs
Deliverables
•9BOX & •Product Profile & •Product spec & •Design release •Critical issues •Launch volumes
Gateway
supporting tech targets Features list •Long lead tooling brochure •QP build
(Partial)
docs •Recommended •Vehicle Test Plan signed off •Vehicle test completion
style theme •Style & packaging •Component requirements met •Vendor parts
•Prelim. Cost / wt sign off reliability plan •Control plans fully approved
targets •Time & res. plan •Biz. Case signoff •Ramp up plan
•Prelim. Biz case •Full Biz. case validation 19
20. Leveraging the resources
How did TATA create initial resource complement to overcome the
disadvantage of being newcomers in passenger car business?
STRATEGY INSTITUTIONS
R&D
Government support
Strategic partnerships (10Year Plan)
Joint ventures
New institutions for trade
promotion, technology up-
Acquisitions gradation, quality
Intensive management enhancement (ACMA:
development Automotive Component
Manufacturers Association,
SIAM: Society of Indian
Automobile Manufacturers )
20
21. Key Strategies
International strategy based on the competitive advantage:
New product (eg. Tata Nano, the cheapest car in the World).
Acquisitions (eg. Land Rover and Jaguar brands from Ford Motors).
Partnership with established companies (eg. Alliance with Fiat
since 2006) to enhance the product portfolio and knowledge
exchange.
Facilities for learning from other companies.
Developing programmes for intensive management development.
Consolidate position in India by exploiting opportunities:
New mobility of young Indians.
Government’s substantial road-building program
GDP growth
21
22. Process Benchmarking
Optimize the value chain using distributed
Manufacturing
The power of IT has been extensively leveraged
State-of-the-art CAD and CAM services integrated
design across multiple disciplines
IT helped the company shrink the design cycle time
BSM tools from BMC Software played a key role
TML decided to adopt IT service management
concepts outlined in the ISO 20000:05 international
standards, as well as best practices outlined in the
IT Infrastructure Library® (ITIL®) Version 3
22
23. Process Benchmarking
service-oriented management architecture that
treated services as assets and managed them on
a life cycle basis.
In-house manufacturing capability with CNC
manufacturing operations
have implemented Six-sigma, Kaizen & TPM.
23
25. Strategic Benchmarking
Objective: Innovation across the value chain leading to
affordable products that can grow the market
Product innovation needs to be
complemented with innovation in other parts
of the value chain
• Co- location of suppliers
• On- line bidding by suppliers
• Reduction in the number of suppliers
• Partnerships with vendors
• Dedicated “Suvidha” service network in small towns
25
26. Achievements
The sole winner of the JRD QV Award 2005 was
the commercial vehicle business unit, or CVBU, of
Tata Motors
PCBU's business excellence initiative has come
into its own.
• Serious Adoption Award in 2004
• Active Promotion Award in 2005
Tata Motors have crossed the level of 60% to win
the JRD-QV award in 2001, 2004 & 2005
respectively
26
27. Stretch and Leverage
Vision : “best in the manner in which we operate,
best in the products we deliver, and best in our
value system and ethics”
Engineering, construction and automotive solutions
R&D focus on environment-friendly technologies in
emissions and alternative fuels
Maintain cost competitiveness through continuous
improvements in control over key inputs and enhanced
asset utilization
Best in class human capital that are constantly in touch
with the industry, competitors, customers and the
suppliers
27
28. Stretch and Leverage contd..
Tata – Nano: The innovative small car for the
urban middle class
Fulfill the requirements of its customer value
proposition
Deliberately created a young team with good
leadership capabilities who think differently
Excellence in outsourcing
Reconceived its supplier strategy - 85% of the
Nano’s components
Fewer supplier (<60%)
28
29. Stretch and Leverage contd..
Acquisition : Land Rover and Jaguar for $2.3
billion - Complementing Resources - Blending
& Balancing
High Replacement cost
Complimentary to Tata Motor in the upstream
business
Access to global markets
Transfer of knowledge, technology from high end
market
29
30. Stretch and Leverage contd..
Overall ..
Strong product development capability
Manufacture products or deliver services of
highest quality at lowest prices
Sufficiently widespread distribution and
service network
working around offering more affordable,
more value-oriented products
30
31. Technological Framework
Attribute:
Innovation around cost
“globally recognized” technological capabilities
'50s and '60s technical collaboration with Mercedes
Benz to design and manufacture its chosen line of
projects
Strong R&D at ERC
Possess capability to develop and test durability,
engine performance, emission, safety, design and
style, noise, hydraulics, tracks, and instrumentation.
Opportunity to experiment and learn from mistake
31
33. Achievements
The company has the only world-class crash facility
in Asia outside Korea and Japan
Developed an A-ECU (Electronic Control Unit) and
low-cost accessories that would effectively manage
critical engine and vehicle systems without calling for
a full-fledged and expensive conventional ECU
Striding towards new emission standards
Equipping vehicles of the future with technologies
for improving communication, navigation and
entertainment- OneCat conceptual car with fiber
glass powered by air and emission free.
33
34. Diversification
1977– First CV from Pune plant.
1983– First HCV rolled out.
1986– First LCV (Tata 407) launched followed
by Tata 608.
1991– First passenger car Tata Sierra
launched.
1992– Tata Estate launched.
1994– Launch of Tata Sumo.
34
35. Diversification
1995– Mercedes Benz car E220 launched
1997– Tata Sierra Turbo launched.
1998– India’s first SUV launched.
1998– India’s first indigenous Passenger Car
Indica launched.
2001– Second Generation Indica v2 launched.
2008– Launch of Suma Grande
2008– Launch of Nano at ninth Auto Expo
35
37. The Preparations…
Proper utilization of assets
Motivating people to work hard
Selective hiring
Job fitting
Training program
Better working environment
37
39. HR Philosophy
Caring, show respect, compassion and humanity
for colleagues
Work cohesively with colleagues across the group
Encourages self-sufficiency
Employees' relatives at Pune have been
encouraged to form various industrial co-
operatives
The Tata Motors Grihini Social Welfare Society
caters to employees' women dependents'
39
40. HR Policies
Executive Selection Scheme (ESS) - fast track
programme for accelerated growth
In-house vocational training and
apprenticeship programme trains the
technicians
Rotational assignments and cross-functional
mobility allow employees to grow
40
41. All said and done…a new strategy is
required…
The Blue Ocean Strategy
41
42. Blue Ocean Strategy
Red Ocean Blue Ocean
Compete in the existing market place Create unconsolidated market space
Beat the competition Make the competition irrelevant
Exploit existing demand Create and capture new demand
Make the value cost trade off Break the value-cost trade off
Differentiation or Low cast Differentiation and Low Cost
42
44. Corporate strategy, parenting and
synergies
To buy premium vehicle brands such as Land Rover
and Jaguar bolster Tata Motors’ image as a global
company and increase its global reach and scale
Overall, the Tata group has spent around $15.5
billion in acquiring foreign companies
The Tata name is a unique asset representing
leadership with trust
Leveraging this asset to enhance group synergy and
becoming globally competitive
44
45. Corporate strategy, parenting and
synergies contd..
synergy developed as a result of the strengths of
domestic and foreign market share, congregating
under the umbrella of Tata group
The Tata Group as a whole has over 20 publicly
listed enterprises and operates in more than 80
countries world-wide - lots of experience and
resources to draw from for research and
development purposes
Strong corporate governance based on “rich
legacy of fair, ethical, and transparent
governance practices” to ensure that its
employees act ethically and the business
continues to run smoothly
45
46. Corporate Advantages from Diversified
Business
Sharing of Activities/Resource
Tata Tata Tata
TCS
Steel Motor Cummins
Sharing of Skills/Core Competence
Tata
Tata
Steel Cummins
Core
Competence
TAML TACO
46