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How Standards Help In Business Growth

National Seminar on “Standards for Quality and Empowerment”. How Standards Help In Business Growth. Case Study by Tata Motors. Founded in 1868, India’s largest & most respected Business Group Diverse businesses in 7 sectors & Operations in over 80 countries

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How Standards Help In Business Growth

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  1. National Seminar on “Standards for Quality and Empowerment” How Standards Help In Business Growth Case Study by Tata Motors

  2. Founded in 1868, India’s largest & most respected Business Group • Diverse businesses in 7 sectors & Operations in over 80 countries • Products & services exported to 85 countries • Group Revenue FY 2010 – Rs 319,534 Cr / $67.4 bn • International Income - 57% of Group revenue • Largest employer in private sector – over 395,000 employees TATA GROUP

  3. Industry Pioneers • 1902Taj Palace Hotel- Luxury hotels • 1907Tata Steel- Asia’s First Steel Plant • 1910Tata Power- Hydro Power • 1932Tata Airlines- Civil Aviation • 1968Tata Consultancy Services- Software • 1998Tata Motors- India’s first indigenous car Industrial Practices Firsts • 1912Eight hour working day • 1915Free Medical aid • 1917 Schooling facilities for Children • 1920Leave with pay, workers’ PF Scheme

  4. 7 Business Sectors Tata Motors

  5. TATA MOTORS • Established in 1945, India’s largest automobile company • Revenue Rs 123,133 crin 2010-11 • Leadership position in Commercial Vehicles • Global no. 3 in M&HCV Trucks, 2 in Buses • No. 3 in Passenger Car Vehicles in India • Jaguar Land Rover part of portfolio • Over 5.9 million vehicles on Indian Roads • Strong Subsidiaries / Associates - Tata Daewoo, Hispano, Telcon, Tata Technologies, European Technical Centre in UK and Tata Motors Thailand

  6. Product Range : A Vehicle for Every Need • Passenger Car Business Unit (PCBU) Passenger Cars Utility Vehicles • Commercial Vehicles Business Unit (CVBU) Goods transportation Passenger transportation

  7. How Standards Help In Business Growth ? Case Study by Tata Motors

  8. Understanding Business Growth What is Business Growth ? What happens when Business Grows? Case Study by Tata Motors

  9. Revenue in million US$ Who are we.. Key Mile Stone Increase in Volumes Turnaround Domestic Growth International Growth Aug 1983 1994 1997 1993 2000 2005 2006 2007 2008 2009 2010 2011 2001 Phase -2 – Bus Focus Phase -1 – Start up Phase -3 – New Generation Buses & Trucks Land identified by Late Mr. S Moolgaonkar Peak Production in 90’s achieved April’09 - OHSAS 18001:2007 certification May’09 – Eastern Complex Prodn commenced June’09 – NABL Accreditation Nov’09 – CII Energy efficient award 20-Oct-92 - 1st vehicle - Model - LP 1210 / 52 (MCV BUS) rolled out Nov’94 -Crown & Pinion Prodn started (Parts Business) Mar’01 CNG Chassis rolled out Feb’02 - RE Bus rolled out April’02 – FBV Business started Dec ’03 - Certification of ISO 14001 & TS 16949 Oct ’04 - Ace Gear Box launched Mar’05 - Low floor bus launched July’05 - OHSAS 18001 Aug’05 - ERC Set-up Dec’05 - HCBS prototype May’06 - Expansion Project initiated Nov’06 - Zero PPM in ACE Gear Box Feb’07 - 100000th Ace Gear Box Mar’07 - 100th Module– Integral Buses Sep’07 - TMML DTC Bus unveiled Oct’07 - 200000th Vehicle Jan’08 100th DTC Vehicle Nov’08 - 1st tender for DTC Buses completed Dec’08 – IMEA Gold Award Dec’08 - The Trial run of BIW Shop

  10. Global Market presence Different customer preferences Different stages of market maturity Different cultures Different time zones Different regulations

  11. Global Manufacturing Base India Jamshedpur – Commercial Vehicles Pune – Commercial and Passenger Vehicles Lucknow – Commercial Vehicles Pantnagar – Commercial Vehicles Sanand – Tata Nano Dharwad – Buses South Korea –Heavy and Medium Trucks Spain – High Capacity Buses Morocco – High Capacity Buses Thailand – Pickup trucks UK – Jaguar Land Rover Overseas Decisions on setting up plants and where to make what products

  12. Global Vendor Base Zf Voith Allision Parker TACO RGB- Brazil Increased No of vendors Global Sourcing Uniformity for bidding (e-bidding, RFQ preparation) Different regulations across countries Periodic up-dation of standards are necessary

  13. Current Indian Market Scenario Individual of Customer preferences Changing Customer Preferences – In Trucks SE 1613 Chassis LPT 2515/3118 Fully built Scenario Before FY 2000 TML was supplying Truck chassis Scenario 2000-07 TML started supplying multi axle vehicle for more pay load & Body built with various options 4018TC/3518TC Scenario 2007 Onwards TML started supplying Less & high loading capacity Brief Technical Specifications – 130 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, Semi forward cabin design Brief Technical Specifications – 150/180 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, Multi axle with more loading capacity and in fully build condition with various options Brief Technical Specifications – ACE : Up to 1 Ton loading Capacity HCV : 180 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, More no of axles with more loading capacity and in fully build condition with various options Customer preferences changed from low to High engine Horse power along with load carrying capacity distribution to low & high capacity

  14. Current Indian Market Scenario Customer preferences Changing Customer Preferences – In Buses 1612/1618 RE Bus LP 1512 TC Chassis LP 1512 TC Bus 1623CGL /1624 TC Before FY 2000 TML was supplying only chassis for buses Scenario 2000-07 TML started supplying Customized Body built buses 2007 Onwards TML started Low Floor & Rear Engine Buses 2009 Onwards TML started Luxury Coach RE Buses with high end Technology Brief Specifications – 240/230 BHP Engine, Pneumatic Suspension, Kneeling mechanism with Independent suspension, Auto Transmission, AC & NON AC Saloon , Low floor & Ultra low floor, Multiplexing advanced W/H, Fuel Options– Diesel/CNG, Advanced seating Comfort and Features equipped with high end Technology Brief Specifications – 120/ 180 BHP Engine, Pneumatic Suspension, Independent suspension, Auto Transmission, AC & NON AC, Low floor, Brief Specifications – 120 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, Standard body building AC & Non AC Brief Specifications – 120 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle Customer preferences changed from low to High Passenger comfort& Capacity along with Rear Engine, Pneumatic Suspension, Low Floor, AC Saloon, Seating Comfort & Advanced Technical features which are already available in European Market

  15. Complexity

  16. Outcomes of Growth

  17. How Standards help Standards Improvement Standards • By acting as a wedge – • To avoid slipping down • Useful reference for decision making • A tool for training • Useful in retention of learning

  18. How is Tata Motors doing it?

  19. Organisational Pyramid for System and Process Management

  20. Strategy Level

  21. Strategy Level Entire CVBU looks up to the same Vision and Mission and follows the same Core Values

  22. Leadership system Leadership Strategy Level All leaders at CVBU model themselves on the benchmark Leadership System

  23. System & Process Level The Enterprise Systems Model has mapped 22 Systems of which 20 are active

  24. System & Process Level The Enterprise Systems Model has mapped systems and processes across all functions of CVBU

  25. System & Process Level New Product Introduction (NPI) is an example of system integration and customer focus

  26. System & Process Level Process flow of NPI cuts across all areas of CVBU wherein all activities have been standardised

  27. System & Process Level

  28. System & Process Level Like NPI, all 22 Business Systems have been further divided into processes Total 115 processes drive the organisation

  29. System & Process Level Each process has standard set of Inputs, Outputs, Key Steps and measures to evaluate its Efficiency and Effectiveness

  30. System & Process Level Six Sigma SPC Kaizen Why Why Analysis CFT DOE Quality Circles Quality tools used to improve process through the PDPI Cycle

  31. Implementation Level Implementation at both Product & Process levels

  32. Implementation-Product

  33. Implementation -Product 9 Box Analysis

  34. Implementation-Process Safety Management System Quality Management System

  35. Implementation-Process Environment Management System Testing Standards

  36. Implementation: Process SOP depicting the OCP for handling and storage of Diesel, Paint and Thinner Material Safety Data Sheet Standard Operating Procedures

  37. Implementation- Process • SA8000 is an international standard for improving working conditions around the world. It is based on international human right instruments and ILO conventions. Tata Motors Lucknow is going for SA 8000 - 2008 Accreditation Program. • ØSA 8000 is a global standard for improving working conditions around the world. • ØStandard and verification is compliance based, creditable, comprehensive and efficient tool for improving workplace. • ØSA 8000 is First auditable international standard on workers' rights, it provides definitions and parameters • to ensure conformance to universal human rights. SA 8000 – 2008 has been Initiated in Lucknow

  38. Results of using Standards during Business Growth Case Study by Tata Motors

  39. Revenue in million US$ @Rs 44/US$ Who are we.. Key Mile Stone Results 2008- Frost & Sullivan –Indian Manufacturing Excellence (IMEA) Gold 2009 - Confederation of India Industries (CII) Energy Efficient unit award 2010 – Rajiv Gandhi National Quality Award for 2009 under “Best in All” category Turnaround Domestic Growth International Growth Aug 1983 1994 1997 1993 2000 2005 2006 2007 2008 2009 2010 2011 2001 Phase -2 – Bus Focus Phase -1 – Start up Phase -3 – New Generation Buses & Trucks Land identified by Late Mr. S Moolgaonkar Peak Production in 90’s achieved April’09 - OHSAS 18001:2007 certification May’09 – Eastern Complex Prodn commenced June’09 – NABL Accreditation Nov’09 – CII Energy efficient award 20-Oct-92 - 1st vehicle - Model - LP 1210 / 52 (MCV BUS) rolled out Nov’94 -Crown & Pinion Prodn started (Parts Business) Mar’01 CNG Chassis rolled out Feb’02 - RE Bus rolled out April’02 – FBV Business started Dec ’03 - Certification of ISO 14001 & TS 16949 Oct ’04 - Ace Gear Box launched Mar’05 - Low floor bus launched July’05 - OHSAS 18001 Aug’05 - ERC Set-up Dec’05 - HCBS prototype May’06 - Expansion Project initiated Nov’06 - Zero PPM in ACE Gear Box Feb’07 - 100000th Ace Gear Box Mar’07 - 100th Module– Integral Buses Sep’07 - TMML DTC Bus unveiled Oct’07 - 200000th Vehicle Jan’08 100th DTC Vehicle Nov’08 - 1st tender for DTC Buses completed Dec’08 – IMEA Gold Award Dec’08 - The Trial run of BIW Shop

  40. 2002-03 2003-04 2004-05 2005-06 2006-07 2008-09 2009-10 2007-08 Our Journey towards Excellence Who are we… 1216 GROWTH 92.4 QUALITY EBIDTA (Rs Cr) Quality Index 49 SPEED Standardized Processes and Team Work gave us results 66 Number of New Models introduced YoY 2010 - 11 ERM Speed & Agility BSC Digi Integrated NPI approach BSC BSC Digi P2 Benchmarking KTL Matrix Structure Review Structure Integrated IT Systems CoP KM CFT, CLT, CPT Innovation Quality Focus LM TS 16949 WCM IQA NABL Ability to Innovate Low Life Cycle Cost Solutions (Cost of Ownership) Six Sigma CTQ Quality Tools SQDCM Growth Focus OHS Expansion Project IBF Eastern Complex ICR-2 TMML OHSAS:2007 SQDCM OHSAS Safety Kaizen Behaviour Based Safety Point Leaders Safety Alert Card Evacuation Drill EL-11-07 Safety Committee Safety BM OHS Policy Daily Insp EPM Version 1 EPM Version 3 EPM Version 6 EPM Version 8 EPM Version 10

  41. The Engagement Effect Recognition of Our Efforts FY 10-11 Rajiv Gandhi National Quality Award (RGNQA) in the “Best of All Category” FY 08-09 India Manufacturing Excellence Award (IMEA)

  42. Recognition for Our Efforts National Energy Conservation Award by Bureau of Energy Efficiency on 14th December 2010 at New Delhi Silver Award by GreenTech Foundation at the 11th Global GreenTech 2010 Excellence Award at Hyderabad on 12th December 2010 Tata Motors Lucknow won the Second prize in the regional convention of INSSAN for Excellence in Mitigating Climate Change conducted by INSSAN - Eastern India Chapter at Jamshedpur in April’2010 Excellent Energy Efficient Unit Award by CII at the 11th National Award for Excellence in Energy Management 2010 on 1st & 2nd September 2010 at Chennai Tata Motors Lucknow received the Best Assessee Award (Samman Patra) from Central Excise in 2010 Lucknow Plant bagged the NABL accreditation for its Material Engineering Lab in November 2010 Tata Motors Lucknow bagged the Second prize at Annual Regional Convention of INSSAN - Eastern India Chapter on 23rd -24th April 2010

  43. Thank You

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