Gaining Sustainable Competitiveness and Achieving Operational Excellence

1. Gaining Sustainable Competitiveness and Achieving Operational Excellence Regu Ayyaswamy Vice President, Global Head- Engineering and Industrial Services TATA Consultancy Services regu.ayyaswamy@tcs.com Confidential

2. Business dynamics are here to stay • Uncertain macro environment • Continuously evolving customer expectations • Competitive pressures and Need for differentiation • Proliferation of technologies from Consumer electronics, Telecom, Energy Source Bloomberg PMI Index Source WSJ Source ISM Increasing expectations, complexities and fluctuating demands

3. Achieving Sustainable Competitiveness Sustainable Competitiveness Macro Economic trends Breakthrough products by competition or substitutes Changing market needs Lack of Operations efficiency Threats Government regulations – Carbon credits Soaring Oil prices and Recession – small cars Climate change concerns – alternate fuel source / energy efficient Market shift - Emerging markets Medical devices company – Co innovation and engineering partner

4. Achieving Sustainable Competitiveness Sustainable Competitiveness Macro Economic trends Breakthrough products by competition or substitutes Changing market needs Lack of Operations efficiency Threats Google, Apple vs RIM RIM says it shipped around 13.2 million devices. That may sound like a significant amount, but compare to the 18.6 million iPhones Apple sold in its last quarter.

5. Achieving Sustainable Competitiveness Sustainable Competitiveness Macro Economic trends Breakthrough products by competition or substitutes Changing market needs Lack of Operations efficiency Threats Smartphone buzz missed – Nokia Revolutionary product but failed - Apple’s Newton Changing business portfolio – P&G Staying current

6. Achieving Sustainable Competitiveness Sustainable Competitiveness Macro Economic trends Breakthrough products by competition or substitutes Changing market needs Operations Efficiency and Agility Threats Challenging Times Chrysler GM Pacific Gas and Electric company Texaco

7. Achieving Sustainable Competitiveness Sustainable Competitiveness Macro Economic trends Breakthrough products by competition or substitutes Changing market needs Operations Efficiency and Agility Threats Engineering Excellence Operational Excellence Solution Continuous process of foreseeing the future and preparing for the same

8. Engineering Excellence

9. Engineering Excellence - COIN

10. Getting it right – Product, Price, Time • Brand visibility and brand positioning • Communicating the right messages to customers Need for continuous listening to unstated needs of customers Customer Ability to deliver the products to customers quickly at optimum cost • Ability to quickly respond to changing requirements • Innovation • Need to match fluctuating demands • Agile and flexible manufacturing Need for seamless information flow across the organization

11. Integrated Landscape Drives the Value PLM Release to manufacturing ERP Plant Specific MBOM Business Rules & Constraints Listening platforms Transaction Processing Collaborative Supply Chain APS Product Design Product Engineering Digital manufacturing Order Status WIP Status Quality Data Line Configs Cycle Time Tracking Info Actual Cycle Time Genealogy MBOM Plant engineering Business Intelligence Asset Master Data MES Enterprise Asset Mgmt Operation Execution Mgmt QMS Quality System Ability to quickly adopt to changing scenarios Islands of automation doesn’t help

12. Integrated Landscape Drives the Value Production, Quality, Inventory, Maintenance 5 Predict ERP EAM, MES Quality 4 Propogate Drill Down 6 • Visualize • Globally • Local Performance • Local Performance 3 KPIs combined with appropriate context for decision support and to assemble transaction data Analyze 2 Contextualize Production information is distilled into KPIs And Down 1 Aggregate Large volumes of production data aggregated from multiple data sources Source -Gartner Achieve manufacturing intelligence

13. End result – Excellence Supplier Agile, demand-driven supply chain Corporate Quick response to customer demands. SMART Plant optimize production and minimize costs. Flexible manufacturing Master DC Products are tailored to the customer; traceable throughout their service life; and recycled, reengineered, or remanufactured post consumer. Energy Smart factory systems that optimize electricity use. Distribution Centre Waste Smart Factory will reduce Waste (Air/ Water) Customer Continuously listen to customer’s changing needs and brand perceptions

14. US Based Automotive Tier 1 Major Business Drivers: Flexible, Scalable and Configurable to address uniqueness of every plant Standardization of performance measurement parameters across globe using standard mechanism • Benefits Realized: • 36% reduction in defects in end product • 21% reduction in defects found internally • 3~4% improvement in productivity • 5% Improvement in first time right Solution Highlights: • Integration with ERP, sequencer, PLM, Maximo, BI, PLC • Configurable solution to address changes on the plant floor • Guidance to the operator for part selection through failsafe and through adoptive bin lighting • Defect tracking and resolution mechanism • Automatic cycle time capture • Quality dashboard to enforce discipline before dispatch

15. US Based Automotive Tier 1- Integrated Landscape Business Layer Product information ERP PLM WO info Maximo Product and shop Order Information APS Maintenance Request Work Order andBuildInformation Work Instruction Server User Guide Work Order Schedule and Sequence MES Layer Database Server Label printer /barcode AssemblyInformation Application Server Control Layer 16 MES - PLC Handshake Tags PLC Field Device Panelview OPC Test Server-1 Test Server-2

16. India based Automotive Tier-1 Major Business Drivers: • Supply of assemblies based on OEM’ Just In Time requirement • Need to handle complex product mix on the same line • Benefits Realized: • Achieved JIT needs of the OEM with a ability to supply in right sequence, on the final assembly line • Improved product quality through automation of test and validation of the components going into assembly • Solution Highlights: • Integration of PLC, Server and Barcode readers through wireless network, ERP • Configurable set up to address changes in the line and introduction of the new products • Parts validation on the key stations • Torque fail safe through PLC for critical stations • Part failsafe through pick light system • Synchronized subassembly line management • Semi automated Test stations

17. India based Automotive Tier-1 – Integrated landscape

18. Summary • Uncertain environment are here to stay; • Developing Agility of response is key. • Engineering and Operation Excellence are key: Integrate processes and information flow across the enterprise • Invest on continuous capability development and improvement in Process reliability

19. Thank You