EPM

CK

Commercial Vehicle Business Unit

Enterprises Process Manual2005

Enterprises Process Manual2005

Version : 4

sdh18316

C O N T E N T S

Introduction

CVBU Enterprise Process Model

Leadership and Corporate Citizenship

Strategic Planning

Internal and External Communication

Performance Improvement and Change Management

Market Development

Vendor Management

Channel Partner Management

New Product Introduction

Service Design

A

B

1

2

3

4

5

6

7

8

9

S.No Item Name No of Pages

5

1

3

2

3

3

5

5

3

5

4

S.No Item Name No of Pages

C

D

10

11

12

13

14

15

16

17

18

19

List of Process Owners

Abbreviations

Sales and Operations Planning

Manufacturing

Sales Planning

After Sales Service

Facilities and Environment Management

Human Resource Management

Information and Knowledge Management

Finance and Budgeting

Vehicle Financing

Organizational Governance

S.No Top Level Process No of Sub-processes

2

?

2

6

4

4

5

8

8

14

3

3

S.No Top Level Process No of Sub-processes

31.3.2005

TATA Motors, CVBU

31.3.2005

INTRODUCTION

In year 2002-03, Enterprise Process Manual comprising of 18 Enterprise Level Processes was published.

In the year 2003-04 it was reviewed and 19th process (Organisational Governance) was added. In this year

Enterprise Processes Manual - Part II, comprising Turtle diagrams of 90 + next level sub-processes was also

published.

In the year 2004-05, all the 19 Enterprise Level Processes & their sub-processes were reviewed by

respective Processes Owners and Facilitators along with the users across all the locations.

The changes recommended by the processes owners have been incorporated. This manual is a compilation

of documentation of 19 Enterprise Level Processes and their sub-processes, duly vetted by respective

process owners & facilitators. The 19 Top Level (Enterprise level) Processes have been documented

in the form of Process Maps and Process Definition Sheets, whereas all the Sub Processes have been

documented in the form of Turtle Diagram.

This manual supersedes all earlier versions of Enterprise Process Manual and Sub-process Manual

Introduction

31.3.2005 A.1

31.3.2005

TATA Motors, CVBU

Purpose of Process Documentation :

w Clarify Responsibility for the Process

w Clarify scope of the Process

w Establish Measures

w Facilitate Process Improvement

w Knowledge Sharing

Process Map indicates flow of process and responsibilities.

Output

Sub-process/Activity

XXXX

Inputs


XXXX

Decision End of Cycle


XXXX

Sub-process / ActivityResponsibility

Introduction

31.3.2005 A.2

31.3.2005

TATA Motors, CVBU

Process Definition Sheet (PDS) gives following information :

6 Process Owner6 Process Objective6 Inputs6 Key Steps6 Outputs6 Customer of the process6 Divisions / Depts involved6 Efficiency / In Process Measures6 Effectiveness / End / Output Measures6 Core Values it supports6 ISO / TS 16949 clause ref6 Revision Status.

Process Identification Number

Each Process has been given unique Process Identification Number (PIN), which is mentioned on theProcess Definition Sheet. (e.g Leadership - CVBU-EL-01)

Revision Status Indicator :Revision status of the process will be mentioned on Process Definition Sheet as under :

00

01

Version Status code

New Release

1st modification

Introduction

31.3.2005 A.3

31.3.2005

TATA Motors, CVBU

Turtle Diagram methodology has been used for documenting attributes of these sub processes

Sub Process Mapping :

Mapping of sub Processes

Inputs

Method /Practices

Key Steps in theSub-Process

Measures/Indicators

Outputs

Identification Numbering Scheme for Sub Processes :

Each Sub-process has been assigned a unique identification number. It is derived as follow :

Sub Process ID = Main Process ID suffixed by Sr. No within the process. For example, 2 Sub processes of Strategic Planning process (CVBU-EL-02) are numbered as CVBU-EL-02-01 and CVBU-EL-02-02

Introduction

31.3.2005 A.4

31.3.2005

Management of Processes :

TATA Motors, CVBU

Copies of the manual are being issued to the Owners / Process Chiefs of the Processes included in the Manual and Divisional / Functional Heads at each location, for their reference for management of processes

Holder of the controlled copy is responsible for safe custody of the copy and hand over to the successor in the event of the transfer / separation and inform BES. BES maintains a copy number wise distribution list.

A booklet, “ Enterprise Process Management Guide”, has also been prepared and circulated to provide inputs to Process / Sub-process Owners on systematic process management

Role of Divisional / Departmental Co-coordinators and Divisional Representatives (DR) of ISO / TS :

1. In order to demonstrate alignment of divisional / departmental processes and processes in EPM the respective

department are requested to link their processes with appropriate process in the EPM.

2. Ensure that the measures and indicators of concerned Top level Process / sub Process are incorporated

appropriate in SQDCM, BSC and ISO / TS documents.

3. Communicate changes, if any, to BES Pune

Updation of Manual :

All the Process Owners are requested to review their respective processes and their Process Definition Sheets, in the month of

April or May every year and communicate the page wise changes, if any, to BES, Pune by the month end.

On receipt of changes, BES will incorporate the same in the respective pages along with revision number. BES will then send

controlled copies of the revised / additional pages to all the Holders of the Manual. The controlled copyholders responsible for

replacing revised pages in their respective copy and destroying old pages.

Introduction

31.3.2005 A.5

Expectations, Statutory Requirements

VALUE CREATION PROCESSES

Market DevelopmentChannel Partner Management

Demand Creation Processes

Sales PlanningVehicle Financing

Demand Fulfilment Processes

Design Processes Production & Delivery Processes

Service Processes

New ProductIntroduction

ServicesDesign

Sales & Operations

Planning

Vendor Management

Manufacturing

After Sales

Service

SUPPORT PROCESSES

Human Resource ManagementFacilities & EnvironmentManagement

Information & KnowledgeManagement

Finance & Budgeting

CU

ST

OM

ER

and

O

the

r S

take

Ho

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rs(E

mp

loye

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Inve

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rs, G

ovt

, So

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ty)

MA

NA

GE

ME

NT

PR

OC

ES

SE

S

Lead

ersh

ip &

Co

rpo

rate

Cit

izen

ship

Org

anis

atio

nal

Go

vern

ance

Inte

rnal

& E

xter

nal

Co

mm

un

icat

ion

Stra

teg

ic P

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rman

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vem

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&

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Enterprise Process ModelCommercial Vehicles Business Unit

B31.3.2005 B

SRL Process No Name of Process Process Owner Location

1 CVBU-EL-01 - Leadership and Corporate CitizenshipMr Ravi Kant, Executive Director (CVBU) Mumbai

Mumbai

Mumbai

2 CVBU-EL-02 - Strategic Planning Mr Ajit Venkataraman, Head (Strategy Planning) - CVBU

3 CVBU-EL-03 - Internal and External Communication Head (Corporate Communications)

4 CVBU-EL-04 - Performance Improvement and Change ManagementMr K C GirotraVice President (Lucknow Works &

Lucknow

5 CVBU-EL-05 - Market Development Mr Shyam ManiVice President (Sales & Marketing)- CVBUMr P G ShankarHead (CVBU International Business)

Mumbai

6 CVBU-EL-06 - Vendor Management Mr P M Telang President (Pune & Dharwad)

Pune

7 CVBU-EL-07 - Channel Partner Management Mr S M SharmaHead (Customer Support) - CVBU

Mumbai

8 CVBU-EL-08 - New Product Introduction Mr R A BijlaniHead (NPI Projects) CVBU

Pune

9 CVBU-EL-09 - Service Design

Mr S M SharmaHead (Customer Support) - CVBUMr S Y DeshpandeAGM (Customer Support) CVBU

Mumbai

Thane

10 CVBU-EL-10 - Sales and Operations Planning Mr R K GhoshGeneral Manager (Non-Vehicle Business)

Mumbai

TATA Motors, CVBU List of Top Level Process Owners

31.3.2005 C.1

TATA Motors, CVBU

SRL Process No Name of Process Process Owner Location

11 CVBU-EL-11 - Manufacturing Mr A P Arya President (JSR & Lucknow )

Jamshedpur

12 CVBU-EL-12 - Sales PlanningMr Shyam ManiVice President (Sales & Marketing)- CVBUMr P G Shankar

Mumbai

13 CVBU-EL-13 - After Sales ServicesMr S M SharmaHead (Customer Support) - CVBUMr S Y DeshpandeAGM (Customer Support) CVBU

Mumbai

Thane

14 CVBU-EL-14 - Facilities & Environment Management Mr Z SaitGeneral Manager (Technical Services)

Pune

15 CVBU-EL-15 - Human Resource ManagementMr P P KadleExecutive Director (Finance & Corporate Affairs)along with HR Team

Mumbai

16 CVBU-EL-16 - Information and Knowledge ManagementMr Probir MitraGeneral Manager (Information Technology)Mr U K MukherjeeMr Rajesh Kumar

Pune

MumbaiMumbai

17 CVBU-EL-17 - Finance and Budgeting Mr R S ThakurGeneral Manager (Corporate Finance)Mr P C BandiwadekarHead (Treasury) Tata Motors Group

Mumbai

18 CVBU-EL-18 - Vehicle Financing Mr A I RebelloChief (Tata Motors Finance) Mumbai

19 CVBU-EL-19 -Organisational Governance

Mr P P KadleExecutive Director (Finance & Corporate Affairs)Mr H K SethanaCompany Secretary

Mumbai

List of Top Level Process Owners

31.3.2005 C.2

TATA Motors, CVBU Abbreviations

Abbreviation ExpansionAbbreviation Expansion

5 S

A Matls

A/C

ABP

ADD

Aggr

AMC

AO

APC

Assy

APL

APPC

ARAI

AS

ASO

Tool for Work Place Improvement

Auto Materials

Account

Annual Business Plan

Ancillary Development Department

Aggregate

Annual Maintenance Contract

Area Office

Annual Plant Capacity

Assembly

Auto Planning

Auto Planning Production and Control

Automotive Research Association Of India

Accounting Standards

Area Service Office

Avg. Average

B/O

BC

BES

BHPC

BKY

Bought out

Burden Centre

Business Excellence Services

Bureau of Hire Purchase & Credits

Bhavishya Kalyan Yojana

BMS

Board or BOD

BOM

Bill Marketing Scheme

Board of Directors

Bill of Material

BPR Business Process Re-engineering

BRC

BSC

BU

BVQI

C0-C1-C2-C3

Business Review Committee

Balanced Scorecard

Business Unit e.g. CVBU

Bureau Veritas Quality India

Codes indicating status of customers

CAC

CAD

Capex

CEC

CII

CET

CFM

CFT

C-HRD

CIF

CIMS

CIO

Customer Assistance Centre

Computer Aided Design

Capital Expenditure

Corporate Ethics counsellor

Confederation of Indian Industries

Concept Evaluation Team

Centralised Fund Management

Cross Functional Team

Corporate Human Resource Division

Cost Insurance Freight

Customer Issue Management system

Chief Information Officer

31.3.2005 D.1


CIRO

CKD

CLT

CMS

Context, Inputs, Reactions, Outcomes

Completely Knocked Down

Cross Locational Team

Cash Management System

CMs Country Managers

CMVR Central Motor Vehicle Regulation

COB Commencement of Business

COBIT A widely accepted IT control framework

COIN Corporate Web site

Cost of Poor Quality

Component

Construction

Committee of Sponsored Organization

Corporate

Channel Partners

Process Capability

Central Quality

Central Tool Room ( JSR )

Central Receipt Documentation Office

Customer Relationship Management

Central Receipt Store

Customer Support

Customer Satisfaction Index

Customer Satisfaction Management and Measurement

Customer Data Base


COPQ

Comp

Const

COSO

Corp

CP

Cpk

CQ

CRDO

CRM

CRS

CS

CSI

CSMM

CTR

CDB

CV

CVBU

Cx

DAC

DAM

Commercial Vehicles

Commercial Vehicle Business Unit

Centre Of Excellence

Drive Away Chassis

Dealer Account Manager

DD

DEC

Demo

DENIS

Dlr

Dept.

Devp or Dev

DFMEA

Div or Divn

Divl

DML

DMR

Dealer Development

Divisional Ethics Counselor

Demonstration

Design and Engineering System

Dealer

Department

Development

Design Failure Mode Effect Analysis

Division

Divisional

Design Modification List

Design Modification Request

31.3.2005 D.2


DMS

DOE

DOM

DR

Dealer Management System

Design Of Experiment

Domestic

Divisional Representative

DSI

DSL

DSM

E& I

ED

Dealer Satisfaction Index

Direct Supply to Line

Dealer Sales Manager

Evaluation and Improvement

Executive Director

Enterprise Leve

Executive Director ( Finance & Corporate Affairs)

European Economic Committee

Executive Grade

Environment Management System

Earnest Money Deposit

Engineering

Environment Management

Effective Point Advice

Executive Sanction Request

Enterprise Process Model

Enterprise Processes Manual

Equivalent

Engineering Research Centre

Environment Risk Management

Export Specification

EL

ED ( F & CA )

EEC

EG

EMS

EMD

Engg

Env. Mgt

EPA

EPM

EPM

Eq.

ERC

ERM

ES

ESR


ESS

EVA

EVR

EXIM

FBV

Early Separation Scheme

Economic Value Addition

Export Vehicle Request

Export & Import Bank of Central Government

Fully Built Vehicle

FCOD

FI

FIBRES

FLG

FMEA

Finance Committee of Directors

Finance Module of SAP

Fact And Information Based Reverse Engineering Of Strategies

Factory Logistic Group

Failure Mode Effect Analysis

GEO

FR

GAAP

GDP

GIN

GM

Group Executive Office

Frequency Rate

Generally Accepted Accounting Practices

Gross Domestic Product

Goods Inward Note

General Manager

31.3.2005 D.3


HQ

HR

HRA

Hrs

HVAL

HVTL

Head Quarter

Human Resource

House Rent Allowance

Hours

Heavy Vehicle Axles Limited

Heavy Vehicle Transmission Limited

Industrial

International Business

Global Software Company

Industrial Relations Committee

Industrial Relations

Internal Return Ratio

Institutional Sales or Indian Standards

International Organization for Standardization

Key Performance Areas

Information Technology

Joint Development Council

Just In Time

Jamshedpur

Continuous Improvement Tool

Kilogram

Ind

IB

IBM

IRC

IR

IRR

IS

ISO

IT

JDC

JIT

JSR

KAIZEN

Kg

KPAs

Govt.

GR

HDFC

Head ( TS / STDI )

FS

Government

Goods Receipt

Housing Development Finance Corporation - Bank

Head ( Technical Specification / Standards I)

Free Service


KPI

KPM

KRA

L & L

LEC

LIC

LKO

Key Performance Indicators

Key Performance Measure

Key Result Area

Listening & Learning

Locational Ethics counsellor

Life Insurance of Corporation

Lucknow

LL

Loc

LOI

LT

MAP

LOB

Lot By Lot

Locational

Letter of Intent

Long Term

Moving Average Price

Line OF Business

MASOP

Matls

MBE

MBPA

Material Accounting System for Outside Processing

Materials

Management By Ethics

Modification Break Point Advice

MC Management Committee

31.3.2005 D.4



Mfg or MFG

MCCC

MD

MEPA

Mgr

Mgmt or Mgt

MIDC

MIS

Manufacturing

Maha Customer Care Campaign

Material Defect

Modification Effective Point Advice

Manager

Management

Maharashtra Industrial Development Corporation

Management Information System

MPA Measure Performance Areas

MPC Material Pricing Committee

MPL&P Material Planning and Purchase

MR Market Research

MRP Material Requirement Planning

MT Mid Term

MTBF Mean Time Between Failure

MTR

MTTR

NC

NCRs

Mid Term Review

Mean Time To Repair

Non Conformity

Non Conformity Reports

Mths Months

OHS Organizational Health Survey

NOC No objection certificate

NPA Non Performing Assets

NPI New Product Introduction

NVB Non Vehicular Business

OC Operations Committee

ODMR Over Due to Maturity Ratio

OE Original Equipment

OFI Opportunity for ImprovementMM Materials Management Module of SAP

No. or No Number

Organization

First Batch of New Product

Personal Computer

Product Complaint Reports

Pre Delivery Inspection

Process Definition Sheet

Production Engineering

Provident Fund

Operations

Org

P & L

P0 (P Zero )

PC

PCR

PDI

PDS

PE

PF

Oprns

OJT On the Job Training

Profit & Loss

31.3.2005 D.5



PFMEA

PHQ

PI

PIN

PL

PLA

Plng or Plg

PM

PMS

PM Fund

Process Failure Mode Effect Analysis

Parts Head Quarter

Perpetual Inventory

Process Identification Number

Pre launch Production Batch of New Product

Personal Ledger Account ( Type of Excise Account)

Planning

Plant Maintenance

Performance Management System

Prime Minister's Fund

PPC

PMs

PO

PP

PPAP

Production Planning and Control

Product Managers in IB

Purchase Order

Pre Production Batch of New Product

Product Planning Approval Of Parts

Parts Per MillionsPPM

PPR Product Performance Report

Proc Process

Prodn or Prod Production

PSD Productivity Services Department

QMS

PSG

PSY

Q & A

QA

QC

QCD

QFD

QI

QP

R & D

Quality Management System

Product Strategy Group

Pariwar Suraksha Yojana

Questions and Answers

Quality Assurance

Quality Control

Quality, Cost , Delivery

Quality Function Deployment

Quality Index

Quality Plan

Research & Development

Reprocessing List generated in SAP

Regional Parts Manager

Respective

Excise Register 23

Regional Manager

Risk Management through Control Self Assessment

Regional Office

Return on Investments

(Engine) Reconditioning (Cell), Sub unit of Tata MotorsRECON

Repro

Resp

RG 23

RM

RMCSA

RO

ROI

RPM

Rs Rupees

RSM Regional Sales Manager

31.3.2005 D.6



RSO Regional Sales Office

RUPD A name of vehicle component

RWH Regional Warehouse

R-Y-G Red-Yellow-Green

S Supervisory Grade Employees

S&OP Sales and Operations Planning

SC

SDT

SEBI

Steering Committee

Self Directed Team

Security and Exchange Board of India

SAP An ERP Package

SHQ

Serv

SGA

Sales Headquarters

Service

Small Group Activity

Society of Indian Automobile ManufacturersSIAM

SLA Service Level Agreement

SMH Standard Man Hours

SO Sales Office

SOB Share Of Business

SP Strategic Planning

SE Service Engineer

SR

SPD

Specs

SPP

SQA

SQDCM

SQIG

Sr

SSG

SRM

Severity Rate

Spares Parts Division

Specifications

Strategic Planning Process

Supplier Quality Audit

Safety, Quality, Delivery, Cost , Morale

(Measurement System)

Supplier Quality Improvement Group

Senior

Strategic Sourcing Group

Supplier Relationship Management

ST

STU

SVCVP

State Transport Undertakings

Tata Motors Certified Garage

Skill-Versatility-Cross-Versatility-Performance

(benefit Scheme for Operatives)

SWOT Strengths Weaknesses Opportunities and Threats

TASS Tata Authorised Service Station

TB Trial Balance

TBEM Tata Business Excellence Model

TCCI Tata Council for Community Initiative

TCG

Short Term

SSI Supplier Satisfaction Index

31.3.2005 D.7



TCOC or Coc

TDS

TEPS

TKSP

TM or M

TMF

TML or TM

TPL

TS

TQMS

Tata Code Of Conduct

Tax Deduction at Source

Telco Employee Pension Scheme

Telco Karmachari Sahakari Patpedhi

Tata Motors Managerial (Grade)

Tata Motors Finance

Tata Motors Limited

Technical Parts List

Technical Specifications

Tata Quality Management Services

TWL

TS 16949

TSS

TTL

TV

Tata Work Level

Technical Specifications 16949

Tata Service Stations

Tata Technologies Limited

Television

Vehicle CombinationVC

VCM Value Chain Management

VD Vehicle Despatch

Veh Vehicle

VF Vehicle Financing

US United States

VFJ Vehicle Factory Jabalpur

WIP Work-in-Progress

V-M-V Vision - Mission - Values

VOC Voice of Customer

VOR Vehicles Off Road

VP Vice President

VQA Vendor Quality Audit

w.r.t. with respect to

WBS Works Breakdown Structure

VQR Vendor Quality Rating

Year-on-Year

Work Order

Companies (Auditors Report ) Order, 2003.

A name of British Standard

A name of German Standard

Y-O-Y

WO

CARO

DIN

EN

31.3.2005 D.8

CVBU - EL - 01

EPM Process Name:

Principal Process Owner:

CVBU-EL-01-01 Revisit Vision & Mission & Set Direction ED (CVBU)

Empowering employees ED (CVBU)

Manage Social Responsibilities


EPM Process No:


Mr Ravi Kant ED (CVBU)

Head Corporate HR / Locational HR Heads

CVBU-EL-01-02

CVBU-EL-01-03

Sub Process Name Sub_Process OwnerSub_Proc No

TATA Motors, CVBU Leadership and Corporate Citizenship

31.3.2005 1.1

Unit of MeasureIn-Process/ Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure

Corporate Citizenship Index, Community Index Index

CSI, DSI, Employee Satisfaction (OHS) Index

TBEM Assessment Score No

ROCE Percentage

EDs and Plant & Functional Heads

All Stakeholders

Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship

5.1

Process Revision / Modification HistoryDetails of Modification Issued / Modified by Approved By

New Release BES, Pune

Revised Process Owners / Facilitators

.

Adherence to stakeholders’ engagement plan Percentage

Adherence to SPP process, Adherence to Action Plan

Percentage

Divisions Involved

End Customer

Core Values Embedded

ISO /TS16949(2002) Clause Ref.

Date of Modifn Modification No.

01/06/03 00

31/03/05 01

§ Vision, Mission & Core Values of TATAGroup, CVBU V/M/V

§ Global / Indian Automobile and Transportation Industry Scenario/ Domain Knowledge

§ Stakeholders Expectations§ Findings of TBEM Assurance process

and TBEM Internal & External Assessments,corporate assurance feedback

§ OHS, CSI and DSI findings§ TCOC, TCCI, Agenda

Ø Capture Stake holders expectations through stakeholders' engagementØ Derive overall Business DirectionØ Formulate Long Term & Short Term Business Plans and initiatives

incorporating Financial, Environmental and Social objectives and seek commitment of team members.

Ø Create supporting organisation Structure and allocate resourcesØ Development and Empowerment of EmployeesØ Encourage learning and sharing. Recognise and reward team members'

performanceØ Seek periodic feed back and review plans and targets

ü Revised CVBU Vision & Mission Statement

ü Achievement of Financial, Social and Environmental objectives

ü Employee Satisfactionü Satisfaction of other

stakeholders

CVBU - EL - 01

Process Owner

PROCESS DEFINITION SHEET

Process Title

Process Objective

Process Identification No. ( PIN) :


Higher Level Linkage-

Incorporating Effective Leadership System

Mr. Ravi Kant (ED CVBU)

INPUT KEY STEPS OUTPUT


31.3.2005 1.2

Understand stakeholder

needsand higher

levelobjectives

Derive MissionSet Direction

and Plan financial, social

and environmental

objectives

Formulate LT/ST Strategy

Identify Initiatives & Champions

Communicate and build

commitment.

Organise align and allocate

resourcesCreate Matrix Org structure

Review and adjust to

achieve planAdapt to new challenges

Build, Motivate, Empower Teams for

accelerated change

Process Owner : Mr. Ravi Kant ED (CVBU)Process objective : Incorporating Effective Leadership System

Create a culture of high performance

Develop, reward and recognize

employees

Organise Internal / External Assessment / Surveys analyse &

Improve

Encourage Innovation, Sharing and

Learning

Encourage / participate /

Implement CSR Initiatives , Be a Role Model

Inputs-Vision,Mission &Core Valuesfor Tata GroupCVBU Vision/Mission /ValuesTCOC

Inputs--Global, Indianautomobile and transportation industryscenario-Stakeholdersexceptions-TCCI Agenda Inputs-Internal & Externalchallenges-BRC review

Inputs -- OHS findings- TBEM corporateAssurance Processfeedback- TBEM internal &ExternalAssessmentfindings

Inputs-- Training needs- Individual MPAs- Career needs- Competencies

Outputs-- CVBU V/M- Achievement of Financial, Social, Environmental objectives- Employee Satisfaction Other stakeholder satisfaction


31.3.2005 1.3

Effectivenessw Clarity of Mission Statementw Achievement of goals %

Efficiencyw Timeliness of review R-Y-Gw % Internalization of Core Values %

UnitPerformance MeasureHow it operates (Methods/ Practices)1 A team of Steering Committee members and other invitees collates all inputs and discusses all

factors recommends changes in Vision , Mission and Purpose statement to reflect aspirations and intents of CVBU leadership.

2 The proposal is first presented to CVBU Steering Committee for concurrence. Then these are taken to Operations and Management Committee for their approval. Finally the Values & Purpose, Vision & Mission are presented to the Board members for final approval

3 Core Values & Purpose, Vision & Mission are then communicated to employees through display boards and pocket cards of Values & Purpose, Vision & Mission. In the Town Hall communications by the ED and CVBU Steering Committee members to cross sections of employees. Training modules are designed to communicate Core Values & Purpose, Vision & Mission

4 The team working on Strategy Planning Process gets inputs by scanning the global, Indian, Industry situation and collate the data. This team also take inputs from society/community, government agencies, regulatory bodies and various committee reports and prepares business plan proposal. Business Review Committee reviews and approves long term & short term goals. These form input f o r SPP

5 Plan/Functional/ Divisional SCs review their respective Vision and Mission Statement and align it with CVBU.

Inputs

w

w

ww

Present Core Values , Purpose, Vision and Mission of CVBUCore Values , Purpose, Vision and Mission of Tata Motors and Tata GroupStake Holder’ expectationsGlobal and National Industry and Economic environment

Key Steps in – 'Revisit Vision & Mission and Set direction'

1. Review vision and mission and propose changes ,if required2. Approval of SC and MC3. Set long term and short term goals4. Communication to all the units and

employees of CVBU5. Alignment of Vision & Mission statements of all the units with CVBU

Outputs

ww

ww

Core Values and Purpose of CVBUVision and Mission statements of CVBUShort term and long term goalsVision & Mission Statements of Plants/ Functions/ Divisions

Sub process : Revisit Vision & Mission & Set direction

Process Ref : CVBU-EL-01- 01 (version 1.1)Process Owner : ED - CVBUEPM Linkage – CVBU-EL-01 (Leadership) Preparation Date : 31/03/04Modification Date : 31/03/05

TATA Motors, CVBU Revisit Vision & Mission & Set Direction

31.3.2005 1.4

Inputs

ww

w

OHS Feed backFeed back through Skip level meetings, One-on-one discussions with employees by leadersBusiness risks identified through audits

Key Steps in -'Empowering Employees’

1. Review/ define expectations and empowerment channels

2. Define roles, responsibilities & authorities3. Organise Training/ coaching and provide resources.

Encourage out of box/ innovative thinking4. Recognize achievements / advise on improvement5. Take feedback from employees

Outputs

w

ww

Empowered and motivated employees Empowerment schemesNew Ideas and patents

How it operates (Methods/ Practices)1 CVBU Leadership reviews the status of empowerment based on feed back receive from

employees and audit reports and defines/redefines channels for empowerment ( Delegated Powers, CLT, CFT, SDT, Quality circles etc)to cover employees at different levels.

2 Roles, responsibilities and authorities are defined and communicated through formal circulars or through face to face communications

3 Manager/Supervisor/ Team Leader organises training and coaching to bridge the competency gaps. Employees are also nominated to attend seminars, exhibitions and professional meets. Manager/Supervisor/ Team Leader reviews the resource requirement along with concerned person and provides adequate resources. New implemented ideas are awarded on their merits through suggestion box scheme. Exceptional ideas are taken up for patenting

4 Manager/ Supervisor/ Team Leader monitors the performance of his team members , encourages them to share achievements with others and makes suggestions for improvement. The critical areas are audited through formal internal audits to ensure a d e q u a c y of controls

5 Employee feed back is collected through OHS, Skip level meetings and one to one interaction

Performance Measure Unit

Efficiency

Effectiveness

ww

www

No. of employees in CFT’s Nos. No. of employees in SDT’s Nos.

OHS indicatorsSuggestions received / awarded Nos.Areas covered under self certification Nos.

Sub process : Empowering EmployeesSub Process Ref : CVBU-EL-01- 02 (version 1.1)Process Owner : ED CVBUEPM Linkage – CVBU-EL-01 (Leadership System)Preparation Date : 31/03/04 Modification Date : 31/03/05

TATA Motors, CVBU Empowering Employees

31.3.2005 1.5

Inputsw

w

ww

National & International laws and requirements for productsNational and state legislations on Pollution and factory operationsExpectations of key communitiesTCCI Agenda

1. Define and communicate policies to address Quality, Environmental and Community Development aspects

2. Select Key communities ,decide focus areas, assign responsibly and provide budget

3. Encourage participation from employees at all the levels and seek participation of communitymembers in implementation of initiatives

4. Ensure compliance with legal and regulatory requirements 5. Collect and review feed back to ascertain Attainment of

objectives

Key Steps in – 'Managing Social responsibility’

Outputswww

w

w

Policy StatementsCommunity Devp initiativesCompliance with legal/ regulatory requirementsImprovement in Employee satisfactionEnhanced CVBU’s image in public

How it operates (Methods/ Practices)1 Quality policy, and Environmental Policy statements are issued by Chairman of Tata Motors and

communicated to all the Divisional/ Departmental Heads and employees through circulars, booklets , posters etc Areas for Community Development are decided on the basis of TCCI agenda ( Health, water, education)

2 Location HR ( Community Devp) head selects community and areas for assistance based on local needs and seeks budget approval. As a business need CVBU has selected ‘drivers’ as key community at CVBU level

3 Employees as well as members of respective communities are are encouraged to invest their personal time and competencies for social cause. CVBU provides support by donating materials , equipments and other facilities.Incase of natural calamities of high magnitude like earthquake both employees and CVBU to PM Fund / TATA fund to provide relief to affected people

4 Respective Functional/ Departmental Head ensures that all the legal and regulatory requirements are addressed in the product and process design, reviews and monitors the same to ensure the compliance and surpass them where ever possible

5 Feed back is collected through satisfaction surveys, meetings and other informal ways and reviewed in steering committee.

% improvement in OHS indicators %

Corporate Community Initiative Index Nos.


Efficiency

Effectiveness

w

w

Sub process : Managing Social Responsibility Sub Process Ref : CVBU-EL-01- 03 (version 1.1)Process Owner : Head Corporate HR/Locational

HR Heads EPM Linkage – CVBU-EL-01 ( Leadership

System)Preparation Date : 31/03/04 Modification Date : 31/03/05

31.3.2005 1.6

TATA Motors, CVBU Managing Social Responsibility

EPM Process No: CVBU-EL-02


Sub_Proc No Sub Process Name Sub_Process Owner

CVBU-EL-02-01 Strategy Development

Strategy Deployment

STRATEGIC PLANNING

Mr Ajit Venkatraman (Head -SP)

Mr Ajit Venkatraman (Head -SP)

CVBU-EL-02-02

Mr Ajit Venkatraman (Head Strategic Planning)

31.3.2005 2.1

TATA Motors, CVBU Strategic Planning

31.3.2005 2.2


INPUT OUTPUTKEY STEPS

Unit of MeasureIn-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure

Achievements of targets as specified in BSC Unique as per BSC


Inputs, Steps, Outputs & measures modified Strategy Planning

Percentage

Percentage

Date of Modfn. Modification No.

08/02/05 01

§

§

Global Auto Industry Study§ Macro Economic Analysis

Situation Analysis§ CVBU Vision and Mission§ Market Trends and Opportunities§ Customer requirements§ Needs of Suppliers, Channel Partners and Employees§ Emerging Technologies§ Competitive Data§ Enterprise Risks§ Regulatory requirements§ Operational Capabilities of CVBU

Ø Environment ScanningØ Revisit Vision / Mission / ValuesØ List out Key challenges for Short term & Long termØ Determine Strategic Path- 3 Phase StrategyØ Conduct Business environment analysis & Capability analysisØ Finalise Strategic ObjectivesØ Finalise Operating Plans, CAPEX, Revenue Budgets & CVBU BSCØ Obtain Approval from OC, MC, BRC & BoardØ Develop next level BSCs & Initiatives for Functions & Plants

Review (and update if required) BSCs and Initiatives monthly

ü Operating plans for Product, Marketing, Manufacturing, HR, Sourcing

ü CAPEX and Revenue Budgets BSCs for CVBU , Plant/ functional Heads and their reports

Process Identification No.(PIN) : CVBU - EL - 02 Higher Level Linkage -

Process Title Strategic Planning Mr Ajit Venkatraman (Head Strategic Planning)

Process Objective Develop and deploy short term and long term action plan to achieve business goals

Process Owner

Adherence to process time lines

Adherence to pro-rata targets mentioned in BSCs

Divisions Involved - MC, OC, BOD, SC, ED, BRC, Strategy Planning, Domestic & International Sales & Mktg,NPI, Finance, HR, ERC, Manufacturing, Materials, Internal Audit

ISO / TS 16949 (2002) clause Ref.

End Customer-

Core Values Embedded- 5.4

Stakeholders of CVBU


BES, Pune01/06/03 00 New Release


EnvironmentScanning

StrategyPlanning

Revisit Vision/ Mission /Values

Board, BRC

Conduct Businessenvironment &capability analysis

Strategy Planning, IB / Dom.MKT, NPI, Finance, HR,ERC, MFG,Materials, Int. AuditAuto planning

Inputs business environment analysis -- International/ domestic manufactures and

their products- Volumes and Market share treds- Customer needs and preferences - Competition strategies in terms of new

products, marketing schemes- Regulatory requirements- Likely Technological advancements in

products- Benchmarks and competitor information on

product performance- Enterprise Risks- Domestic & International economics

DetermineStrategicPath-3PhaseStrategy

SC, MC,OC, BRC

List out keychallenges forShort term &Long term

SC, OC

Finalise Operating PlansCAPEX Revenue Budgets,CVBU BSC and StrategicInitiatives

SC, MC, OC,Board

Develop next level BSCs &InitiativesforFunctions& Plants

All SCs

Review (and update ifrequired) BSCs andInitiatives monthly

All SCs

Inputs Capability analysis- - Manpower- Manufacturing facilities

suppliers and dealers- design and development

Evaluation &Improvement

THINKOnce in 3 Years-Annual Review

DEVELOP and DEPLOYAnnual

REVIEWMonthly

31.3.2005 2.3

FinalisestrategicObjectives

SC


31.3.2005 2.4

How it operates (Methods/ Practices)1. Strategic Planning dept. scans the external environment in terms of Global Auto Industry

scenario, Macro Economic Analysis and conducts a Situation Analysis2. Leadership team revisits CVBU Vision and Mission statements. Feedback from previous SPP is

incorporated. 3. Next, the Key challenges for Short & Long term are identified against this broad direction4. The SC then determines Strategic Path i.e the 3 Phase Strategy for CVBU and gets this

approved from the MC, OC and BRC5. Inputs on volumes and market share trends, competitor strategies and product performance,

regulatory requirements, technological advances, benchmarks, internal manpower competencies, design, development and manufacturing facilities, supplier and dealer’s SWOT are collected and analysed by the respective Functions.

6. Strategic objectives are then determined to address the key challenges7. Based on the above analyses, Operating plans for Product, Marketing, Manufacturing, HR,

Sourcing along with CAPEX and Revenue Budgets and CVBU BSC & Strategic Initiatives are t h e n developed. Subsequently these are approved by MC, OC and the Board

Inputsw Global Auto Industry Studyw Macro Economic Analysisw Situation Analysisw CVBU Vision and Mission

statementsw Feedback from previous SPP

for CVBUw Business Environment Studiesw Internal Capability Studies

Key Steps in –'Strategic Planning Process: Strategy Development'1. Environment Scanning2. Visioning3. Strategic Challenges4. Strategic Direction setting5. Strategic Analysis6. Strategic Focus / Objectives7. Target setting & Resource allocation

Outputs

w Operating plans for Product, Marketing, Manufacturing, HR, Sourcing

w CAPEX and Revenue Budgets (Annual Operating Plan)

w CVBU Balanced Scorecard w Strategic Initiatives

Performance Measures Unit

Efficiency

Effectiveness

Adherence to Time line %

Accuracy of projections %

w

w

Name of Sub process : Strategy DevelopmentSub Process Ref : CVBU-EL-02-01 (Version 1.1)Process Owner : Mr Ajit Venkatraman, Head SP Linkage with EPM – CVBU-EL-02 (STRATEGIC

PLANNING )Preparation Date : 31/03/04Modification Date : 31/03/05


31.3.2005 2.5

Name of Sub Process : Strategy DeploymentSub Process Ref : CVBU-EL-02-02

(Version 1.1)Process Owner : Mr Ajit Venkatraman,

Head SP Linkage with EPM – CVBU-EL-02

(STRATEGIC PLANNING )Preparation Date : 31/03/04Modification Date : 31/03/05

Inputsw CVBU Balanced Scorecard w CVBU Strategic Initiatives

Key Steps in –'Strategy Deployment'

1. BSC Deployment2. Review3. Evaluation and Improvement

How it operates (Methods/ Practices)

1. BSCs are developed for all functions and plants upto CX

level in Plants and Area office level in Sales & Marketing

by respective Steering Committees in line with the CVBU

objectives. Assessments are carried out to ensure alignment of

all divisions / departments / functions/ plants with the overall

CVBU goals.

2. Monthly reviews of BSCs and Initiatives are held by the

respective Steering committees to track the progress against

plans. During the Mid term review, if required, changes and

updates are made to the BSC.

3. The strategic planning process is reviewed and improvements/

changes are made in the next year’s SPP.

Outputsw Cascaded BSCs & Initiatives for

Functions & Plantsw SC Reviewsw Review of the achievements and

drawbacks of the current SPP

Performance Measures Unit

Efficiency

Effectiveness

w Adherence to Time line %

w Attainment of stated targets %

TATA Motors, CVBU Strategy Deployment

CVBU-EL-03


CVBU-EL-03-01 Manage Internal Communication Head of Corporate Communication /Locational HR Heads

Internal and External Communication

EPM Process No:

Head - Corporate Communication

CVBU-EL-03-02 Manage External Communication

Manage Communication SurveyCVBU-EL-03-03

Head of Corporate Communication /Locational HR Heads

Head of Corporate Communication /Locational HR Heads


TATA Motors, CVBU Internal & External Communication

31.3.2005 3.1

Adherence to communication schedule % No of Employees covered, No of Communication meetings No

Actual Vs Budget % Communication Effectiveness Index OHS Index

Actual Vs Budget Percentage

Divisions Involved - Corporate Communication, Locational HR, Plant / Functional Heads

End Customer- All Stakeholders

Core Values Embedded- Integrity, Passion for Engineering, Corporate Citizenship, Customer Focus

ISO / TS16949 (2002) Clause Ref. 5.5.3

Process Revision / Modification History-

Date of Modfn. Modification No. Details of Modification Modified by Approved By

01/06/03 00 New Release BES, Pune

31/03/05 01 Review trough process team. Process Team

Process OwnerInternal and External Communication Head Corporate Communication Satisfy Communication needs of Stakeholders and build Company Image

Ø Determine communication needs and set objectives for communication to various Stakeholders

Ø Determine media, frequency and Stakeholder/Location wise responsibility

Ø Manage Internal communication

Ø Manage External communication

Ø Collect and analyse feedbackØ Measure effectiveness

[ Improved Stakeholders' confidence

[ Enhance Company Image.

§ Vision, Mission, Core Values and Directions of CVBU

§ Past Performance and Future Plans

§ Product and Service Standards

§ Quality, Environment and other Policies

§ Tata Code of Conduct



In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure

CVBU - EL - 03 Higher Level Linkage -


Process Title

Process Objective


31.3.2005 3.2

Determine thecommunication needs and set objective forcommunication to

- Employees- Customers (throughMedia)-Suppliers / partners-Investors / Shareholders-Community

SC

-Determine key messagingfor the Company

-Determine stakeholder wise media for communication and frequency

-Assign stakeholder /location wise responsibilities

-Seek budget approval

Head (Corporate Comm)

Process Owner : Head of Corporate CommunicationsProcess objective : Satisfy communication need of

Stakeholder and Build Company Image

Inputs-- Company’s strategic

goals and objectives- Business plans of

Business Units- Products / service

standards- Company / product

Related information

Inputs--OHS-Surveys- Direct employee Contact- Appreciation Programs-Eikona press reviewE

xte

rna

l Co

mm

un

ica

tion

Inte

rna

l Co

mm

un

ica

tion

(E

mp

loye

e)

Collect andanalyse Feedback

HR / CorpCommunication

MeasureEffectiveness ofCommunication

CorporateCommunication

E-mail based communication- external press release andemployee relatedPublish in house journals (forinternal and externalaudiences)Theme based campaignsConduct communicationmeetings at respectivelocationConduct town hall meetingsat respective plantsEvent based circulars andletters from senior leaders toemployees and their familiesProvide employees directaccess to senior leaders(Hotmails, share café, etc)

Loc HR /communications

Press releasePress conferences, interviews with senior leaders by media, investor, opinion leaders and govt.Participation in seminars /exhibitionProduct launches andcorporate eventsFeature stories (corporate) on Tata motorsCorporate advertisingCampaignsCorporate communications

31.3.2005 3.1


31.3.2005 3.3

Inputsw Corporate Communication

Guidelines / Policiesw Data and analysis from the

Business Units, Finance and employees

w SIAM reportsw Employee needs and expectationsw OHSw External sources – media/events

Key Steps in – 'Internal Communication Process'

1 - Determine communication needs2 - Analyze and design communication3 - Approval from concerned agencies/EDs/VPs4 - Release the communication5- Follow-up with Employees6 - Monitor and Review

Outputsw House Magazinesw Wall Postersw E mailsw Updation on Intranetsw Town Hall and communication

meetings

Name of Sub process : Manage Internal Communications

Sub Process Ref : CVBU-EL-03- 01 (version 1.1)Process Owner : Head of Corporate

Communications / LOC HR Heads

Linkage with EPM – CVBU-EL-03 ( Internal and External Communication )

Preparation Date : 31\03\04Modification Date : 31\03\05

Efficiency

Effectiveness

w Timeliness of communication w No. of Wall Posters released Now No. of House Journals released No

w OHS feedback on communication Scorew Communication Satisfaction Survey Index

UnitPerformance Measure

TATA Motors, CVBU Manage Internal Communication

31.3.2005 3.131.3.2005 3.4

How it operates (Methods/ Practices)1. Determine communication needs – Inputs as shown are collected from timely

interactions with BUs/ Employees / Finance and aggregated for further use2. Analyze and design communication – These requirements are analyzed and the

communications are designed according to the media and its purpose. House magazines, Wall posters, e mails, Town Hall communications, Intranets such as HR info net, Vibes etc are designed based on this

3. Approval – After designing the communication mode, it is approved from the concerned agencies and finalized with Presidents / Vps and EDs

4. Release the communication – House Magazines, Wall posters are distributed, e mails are sent to the focused groups by the Corporate and Locational Communication Departments. Intranets are updated by the Core groups.

5. Follow-up - After the release, follow up is done with employees for their feedback on yearly basis through OHS and Communication survey

6. Monitor and review: The internal communication is revisited on yearly basis and improvements are done on media, variety, contents and clarity


Guidelines / Policiesw Data and analysis from the

Business Units and Financew SIAM reportsw Media needs and expectationsw Employee feedback/OHS

Key Steps in –'Manage External Communication Process'

1. Determine communication needs2. Analyze and design communication3. Approval from concerned agencies/EDs/VPs4. Release the communication5. Follow up with the users6. Monitor and Review the process of releasing

Outputs

w Press and media releasew Articlesw Interviews

How it operates (Methods/ Practices)1. Determine communication needs – Requirements are collected from newspapers,

business magazines, TV channels from timely interactions with them and aggregated for further use

2. Analyze and design communication – User requirement is analyzed and the communication is designed according to the media and its purpose. Monthly Press Release, Interviews to newspapers, magazines, TV channels, etc are designed based on this

3. Approval – After designing the communication, it is approved from the concerned agencies and finalized with Presidents / VPs and EDs

4. Release the communication – Press release is forwarded by the Corporate and Locational Communication Departments

5. Follow-up – After the press release, follow up is done for publishing and press cuttings for records

6. Monitor and review: The external communication process is revisited on quarterly basis and modifications are done on distribution pattern, contents and clarity

Efficiency

Effectiveness

w No. of Press Releases No.w No. of Press conferences No.w No of appearances of features in Magazines No.

w Communication Satisfaction Index Indexw Eikona Press Review

Sub process : Manage External CommunicationsSub Process Ref : CVBU-EL-03- 02 (version 1.1)Process Owner : Head of Corporate Communications

/LOC HR HeadsEPM Linkage – CVBU-EL-03 ( Internal and External

Communication )Preparation Date : 31/03/04 Modification Date : 31/03/05



31.3.2005 3.5

Key Steps in – 'Manage Communication Survey'

1. Determine communication survey needs2. Analyze and design survey questionnaire3. Prototype testing with few employees4. After modifications, Conduct the survey5. Analyze and put up findings to SC6. Prepare action plan to tackle concerns7. Monitor and review the process of survey

How it operates (Methods/ Practices)1. Determine communication needs – Inputs as shown are collected from timely

interactions with BUs and Employees and aggregated for further use2. Analyze and design questionnaire – The questionnaire is designed with the help of

external experts and internal communications team3. Prototype testing – This questionnaire is then tested with few employees from all

levels and improved, if any suggestions are there4. The questionnaire is distributed as per random sample to all levels of employees – in

Hindi, Marathi and English5. The filled up questionnaires are analyzed and findings are put up to Steering

Committees6. Action Plans are made to tackle the concerns and overcome gaps in the existing system7. The survey process is reviewed once in a year in Communication Steering Committee



Guidelines / Policiesw Data from the Business Units and

employeesw Employee needs and expectationsw OHS and w Communication Index findings

Outputsw Survey Questionnairew Survey findingsw Action Plan

Efficiency

Effectiveness

w % Completion of Action plans %w Survey findings on attributes Nos.

w Communication Index Index


Name of Sub process : Manage Communication SurveySub Process Ref : CVBU-EL-03-03 (version 1.1)Process Owner : Head of Corporate

Communications/LOC HR HeadsEPM Linkage – CVBU-EL-03 ( Internal and

External Communication )Preparation Date : 31/03/04Modification Date : 31/03/05

31.3.2005 3.6

CVBU- EL- 04



CVBU-EL-04-01 Process Design & ImprovementHead CVBU /Head Respective Plant

Respective Steering Committee

Performance Improvement and Change Management

EPM Process No:

Mr K C Girotra - VP (Lucknow Works & FBV)

CVBU-EL-04-02 Conduct Internal Assessment

Performance Improvement Through InitiativesCVBU-EL-04-03 Respective Steering Committee

TATA Motors, CVBU Performance Improvement and Change Management

31.3.2005 4.1

Adherence to Audit/Assessment schedule % TBEM Score, No of certified Auditors/ Assessors No.

Initiatives planned Vs achieved No Performance Improvement achieved vis-à-vis Target %

Adherence to review schedule % Reduction in NCs No.

Divisions Involved - SC, All the Plant / Functional/Divisional Heads, Certified Assessors

End Customer- Process Owners, Stake holders

Core Values Embedded- Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship

ISO /TS16949(2002) Clause Ref. 8.5.1, 7.1.4


Date of Modfn. Modification No. Details of Modification Modified by Approved By


31/03/05 01 Modification process review Process Team



w Strategic Objectivesw Internal and External Audit and assessment

findingsw Customer / stakeholder feedback / requirementw Benchmarks/ Competition data on factors

affecting the business and corresponding CVBU status

w Recommendations from Consultantsw National/ International Standards

applicable to CVBUw Statutory requirementsw TBEM assessment findingw Best Practices

[ Improvement of Organisational performance

[ Process Improvement

Ø Ascertain whether need is for A) Establishing systematic process. OR B) Quantum / Break through Improvement in performance

Ø Identify and drive initiatives for achieving quantum/breakthroughperformance improvements

Ø For continuous improvements manage process systematically :o Evaluate requirements and Define and establish processo Set targets , monitor performanceo Seek stake holder feed back Review process performance

through self assessment/audito Identify scope for improvement and prioritizeo Simplify & improve process by improving Sub-processes



CVBU - EL - 04 Higher Level Linkage -

Mr. Ravi Kant (ED CVBU)

Continuous Improvement of Organisational Performance

Process OwnerPERFORMANCE IMPROVEMENT AND CHANGE MANAGEMENTProcess Title

Process Objective


31.3.2005 4.2

Ascertain whether need is for A) Establishingsystematic process. OR

B) Quantum / Break through Improvement in performance

SC / respProcess Owner

Studyrequirements,evaluatealternatives,select best possible way and Seek acceptance of all the concerned

Resp Agency/ Team

Define process/ procedures & measures,acquire resources, conduct pilot Run, train users and implement process/ changes

Process Owner/Resp Agency

Seek customer/ other stake holders, feed back. Review process performance. Get process assessed/ audited

Process Owner Div/Dept Head

Set targets, ,monitor performance andcontrols

Process Owner,Divl/Dept Head

Inputs-- Strategic Objectives Statutory Changes- Comparison of Performance with Competition/Benchmark on key Factors- TBEM Assessment Feed back- Audit feedback- Feedback from Statutory audits- Best practices from otherorganizations.- Recommendations fromConsultants

Process Owner : Mr K C Girotra (Luknow Works & FBV)Process objective : Continuous improvement of Organizational Performance and Processes

Study findings and prioritize OFI

Process OwnerDivisional Head

Major Changes

Development and deployment

Review

A or B

A

Minor/ urgent

changes

Define Initiative & Owner

SC / resp Process Owner

Drive Initiative to getdesired result

Initiative Owner

B

Min

or

cha

ng

e/

sim

plif

ica

tion


Assessment & Proposal on improvement

31.3.2005 4.3

Inputsw Request/ feed back from

agencies involved ( Incl. Internal Customers)

w Assessment / Audit reportsw New or changing Business needs /

Statutory requirementsw Strategic intent for adopting global

best practices

Key Steps in – 'Process Design and Process Improvement'

1. Ascertain need and assign responsibility2. “As is study”and evaluate alternatives3. Define new / improvised process 4. Seek approval for resources5. Devp. Of computerized system where

required, User training , pilot run and finalize process and procedures .

6. Plan Implementation7. Monitor process for efficiency and effectiveness

Outputsw New/ Improved processes and

procedures

How it operates (Methods/ Practices)1. Concerned process owner analyses inputs and ascertains need for new process /

improvement in existing process. He assigns responsibility to a competent person if process/ change is limited to his area. Otherwise he takes help of concerned specialty function ( BES/ PSD/Central Planning/ Central QA / IT Team etc). Such person/dept acts as a change agent).

2. Change Agent studies As is process, scans technologies and best practices in the industry, evaluates alternatives and evolves new/ improvised process/ procedure in consultation with all the agencies involved/ affected.

3. Process owner gets resource approval for Capital equipment /revenue expenses / manpower through normal procedure.

4. TTL provides IT Support.5. Integration tests and Pilot runs are conducted to confirm meeting of all the requirements.

The new / improvise process/ procedure is documented to define activity wise roles & responsibilities and circulated to agencies involved.

6. Change Agent carefully plans Implementation/ change over. After successful implementation the process is handed over to users and process owner for operation and monitoring .

7. Process owner and users monitor process for Efficiency and effectiveness

Sub process : Process Design and Improvement Sub Process Ref : CVBU-EL-04- 01 (version 1.1)Process Owner : Head CVBU / Head Respective PlantEPM Linkage – CVBU-EL-04 ( Performance Improvement and Change Management) Preparation Date : 31/03/04Modification Date : 31/03/05

TATA Motors, CVBU Process Design & Improvement

Efficiency

Effectiveness

6 Adherence to schedule %6 % fulfillment of requirements %

6 No of Processes gone through E & I No.


31.3.2005 4.4

Inputsw External assessment/ audit criteria

and methods/ practicesw Feed back from participating

divisions and assessors/ Auditors regarding previous audit/ assessment

w Last external assessment/ audit reports

Key Steps in – 'Conduct Internal assessment/ Audit'

1. Maintain a bank of trained and certified Internal Assessors/ Auditors

2. Define frequency Prepare Schedule3. Prepare/ review criteria/ guidelines/ checklist4. Organize Assessment/ Audit 5. Send report to assesses/ audited and plant/CVBU head6. Recognition to assessors/ auditors and Divn/Dept and

collect feed back from them

Outputsw Assessment / Audit score

Assessment / Audit report giving Strengths & OFIs

How it operates (Methods/ Practices)1. Selected/ nominated high performers are trained by competent external agencies

(eg.TQMS, CII, BVQI)and certified by them wherever necessary. In other cases they a r e trained by internal experts / Trainers (eg.5S- SQDCM)

2. Audit/ assessment frequencies are decided by owner of respective audit/ assessment process ( eg. Head of BES- TBEM/ BSC/5S & SQDCM, Head of CQ- ISO TS)

3. Criteria/ Guidelines/ Check lists are prepared/ reviewed by respective audit/ assessment process owner with involvement of auditors once in a year

4. Assessment/ Audit process and efficiency / effectiveness of process is monitored by a champion nominated by the respective audit/ assessment process owner.

5. Communicate audit findings for review and improvement by resp. Divisions/depts6. Assessors/ Auditors and participating divisions are recognized in a special function.

This opportunity is also used for collecting informal feed back.

Sub process : Conduct Internal assessment/ Audit

Sub Process Ref : CVBU-EL-04- 02 (version 1.1)Process Owner : Resp. Steering CommitteeEPM Linkage – CVBU-EL-04 (Performance Improvement

and Change Management) Preparation Date : 31/03/04Modification Date : 31/03/05

TATA Motors, CVBU Conduct Internal Assessment / Audit

Efficiency

Effectiveness

6 Adherence to schedule %

6 No. of Trained/ Certified Auditors/ Assessors Nos.6 No. Of Divisions covered Nos.6 Improvement in Division’s scores Nos.


31.3.2005 4.5

Inputsw Balanced Score Card

Key Steps in – 'Performance Improvement through Initiative'

1. Define Initiative, measures, and owner2. Assemble team define objectives and set targets.3. Primary Data Collection 4. Idea generation, evaluation and action plan

preparation.5. Implementation and progress reviews6. Share achievements and learning

Outputsw Achievement of quantum

improvement in the performance

How it operates (Methods/ Practices)1. Initiatives are taken to help achieving stretched targets in KPAs. SC assigns ownership to

a Sr. Executive. Standard templates are used for defining initiative and measures. Initiative owner is empowered to select team members as well as to take necessary actions.

2. Initiative owner assembles team. Help of external consultants is provided where necessary. Training is organized wherever need arises.

3. Team collects data, generate ideas through brain storming/ bench marking and prepares action plan

4. Initiative owner/ SC and concerned department approves action plan for implementation and allocates resources.

5. Same team or different team oversees the implementation.6. The team shares achievements and learning by way of presentation in communication

meetings. The team decides to launch next phase/ wave if necessary.

Efficiency

Effectiveness

6 Adherence to schedule %

6 Target vs Actual performance %

Sub process : Performance Improvement through Initiative

Sub Process Ref : CVBU-EL-04-03 (version 1.1)Process Owner : Resp. Steering CommitteeEPM Linkage – CVBU-EL-04 ( Performance Improvement

and Change Management)Preparation Date : 31/03/04Modification Date : 31/03/04

TATA Motors, CVBU Performance Improvement Thru Initiatives


31.3.2005 4.6

CVBU-EL-05


EPM Process No:

Mr Shyam Mani - VP (Sales & Marketing ); Mr P G Shankar - Head (CVBU International Business)

Market Development


CVBU-EL-05-01

CVBU-EL-05-02

CVBU-EL-05-03 Determine Customer Groups & Market Segments

Determination of Customer & CP Satisfaction

Promote Products of Tata CV entire Range

CVBU-EL-05-04

CVBU-EL-05-05

Prepare Marketing Business Plan

Forecast Demand at Product - Segment Level

Product Managers / Customer Support / MR

Product Managers / Sales / Regional Managers

Head of Market Research / Country Managers



TATA Motors, CVBU Market Development

31.3.2005 5.1




§ CVBU Strategic Objectives§ Industry/Country Demand Forecasts§ Market Share and Volume Targets

(Dom / IB)§ QFD & other MR Reports§ Customer Feedback§ Plant Capacities & Capabilities§ Government Regulations§ Technological Innovations§ RSO/ IB & Channel Partner Stocks and

Requirements§ Sales Process Feedback

Ø Derivation of Operational Vision (Dom / IB)Ø Gather Data through various QFD exercises and AnalysisØ Review Market Segmentation (Dom/IB)Ø Assess New Product Requirements & market OpportunitiesØ Development of Annual Business Plan, Short Term and Medium Term Plan

(Dom / IB)Ø Development of Product Pricing Plan and Sales Promotion PlanØ Assessment of Resource Requirement and Allocation of Resources Ø Preparation of Segment-wise, Region Country wise, Monthly Volumes and

Market Share Targets and communication of the same to ROs/ Country Offices and Channel Partners

Ø Performance Review and Gap Analysis for corrective Actions

Understand CV Markets, Explore Opportunities and Strengthen Presence in chosen Segments and Geographies


Process Owner Mr Shyam Mani VP - (Sales & Mktg.)Mr P G Shankar Head - (CVBU IB)

ü Annual Marketing Planü New Product Requirementsü New Markets ü Sales Promotional Schemesü Growth in Sales

Monthly and Quarterly Reviews of Market Share & Volumes achieved vis-à-vis Targets (Growth in Sales)

Details of Modification Issued / Modified by Approved By

New Release

Divisions Involved -

End Customer -



Date of Modfn Modification No.

01/06/03 00

31/03/05 01 Modification through process review

BES, Pune

Process Team

Product Mgt. , SHQ (Dom / IB), ROs, AOs, Country Offices, Dealer Development Cell and Channel Partners /SC

Channel Partners and Customers of TATA Commercial Vehicles


5.2

%Nos.

Key Accounts TouchedNew Segment / Markets developedMarket Share & Volumes achieved

Nos.Nos.% / Nos.

CVBU-EL-05

Process Title

Process Objective



MARKET DEVELOPMENT


31.3.2005 5.2

Process Owner : Mr. Shyam Mani (Domestic) / Mr P G Shankar (IB)Process objective : Understand CV Markets (Dom / IB), Explore Opportunities and

Strengthen Presence in Chosen Countries / Segments and Geographies

- Budget Requirements toFinance & Budgeting- Market Requirement toS &OP and Sales Planning

Requirements to -- NPI Process- Human Resource Mgt- Channel Partner Mgt.- Services Design- After Sales Services

Derive OperationalVision- Review Dom. / IB Strategy- Scan Dom / International CV markets- Country - wiseBall Park MarketAnalysis based on Market Scope

(SHQ /Product Managers(PMs) / Country Managers(CMs))

Data Gatheringthrough various VOC / QFD exercisesand Analysis

- Evolve applicationmatrix for TATAproduct suitability inthe select regions /countries afterscanning product / profitability

- Short List ChosenSegments / countriesin Dom / IB areas

(SHQ / PMs / CMs)

Preparation of -- Annual Business Plan forCVDom / IB

- Product Plan-ST Plan (1Yr.)- MT Plan(2-3 years),

- Product Pricing Plan

- Resource RequirementPlan

( SHQ / PMs / Cms)

Plan for NPI for tapping niche market / new Dom., IB segments

(PMs / NPI Group / CMs)

Sales / Service / Spares Network Enhancement Plan (Sales Head / PMs)

Manpower Requirement Plan(Sales Head / CHRD)

Channel Partner Management Plan

(Sales Head / PMs / DD/ CMs)

Sales Promotion InitiativesPlan / Schemes

(Sales/PMs/RMs/CMs)

Evolve VOC/ QFD exercises / Customer Clinics / Feedback

Programs (SHQ/MR/RMs/CMs/AMs)

Are the resourcesadequate?

Preparation of MarketingPlan -

-Region-wise, Country wise (n+2), Segment wise Monthly Volumes Targets and Market Share Targets

- Communication to ROs and Channel Partners(Dealers / Distributors - IB...)

(SHQ/ PMs / CMs )

Implementation and Review of-Sales, Service Spares Performance of Channel Partners (Dealers / Distributors- IB / TASS, TSS, etc)(Seek feedback from Sales Planning Process)-Analyze the gaps and consider corrective actions as inputs to next marketing review (MTR/ Final)

(Sales / PMs / CMs)

Inputs--CVBU Strategic Objectives-Market Share targetsDom / IB -Volume Targets(Dom / IB)-Profitability

Inputs --Industry / Country-wise Demabd Forecasts,-Dealer / Distributor Sign-off & adequacy,-Customer Feedback-QFD feedback & other MR / Country Survey Reports-Govt. Regulations in various geographies-Technological Innovations- Govt. & Industrial Requirements, -Plant Capacities & Capabilities

Inputs - -Plant Production Reports-RSO / ShipYard Stocks and Requirement-Channel Partner ( Dealer / Distributor-IB Stocks & Requirement

Inputs --Sales Process Customer Pipeline,-Customer CategoryConversion rates,-Market Coverage Plan

Yes

No


31.3.2005 5.3


Efficiency

Effectiveness

w No of NPI or Variants Planned Vs Achieved Nos.w No of new segments / markets identified Nos.

w Achievement of Targets Vs Actual Nos. / % (Volume & Market Share)

Inputsw Product Segment level Mkt. Research

Data / Country Scan reportsw CVBU Business Strategy (Dom / IB) w Competition Data w Customer Complaintsw VOC / QFD Reportsw Product Demo / Road Show Reports w Government / Country Regulationsw New Product Launches Plannedw Past Trend of Sales Volumes w Business Drivers

Key Steps in sub-process-'Prepare Marketing Business Plan''

1. Seek and Analyze data2. Prepare Product - segment Level Business Plan (Dom/IB)3. Execution of plan

Outputsw Product gaps to NPIw Network expansion requirementsw Non-product requirements to

CS/NVB w Marketing Budgets to Regional

Product Managers Human Resource requirement

to C-HRDw Sales targets to Salesw Plan for NPI, Product variants

execution

w

How it operates (Methods/ Practices)1. Seek and Analyze Data (Product Managers / Country Managers) 6 Product Managers capture customer requirements (individual & Key customer groups) and other relevant

data through various VOC/QFD exercises, CIMS, feedback from RO/ AO/ CS/ Country offices, Government regulations, etc.6 Use various Listening approaches to seek Customer requirements

6 Product Managers along with Sales & Market Research collates and analyze the data on customer requirements, applications, market trends, technology and new products.

6 The Regional / Country Managers and Area Officers communicates all data on the sales, competitive sales, market share gain/ loss, Channel Partner Off take / Shipment / retail sale / pending EVRs / Stock levels & Customer requirements to the Product Managers.

2. Prepare Product - Segment Level Business Plan ( Dom / IB) (Product Managers)6 The Product Manager along with Head (Sales & Marketing-Dom/IB),Market Research, Country Managers analyzes the data received from all these sources to prepare the Long Terms (5-10 years),

Medium Term (2-5 years) and Short Term (Annual) Business plan. 6 Considering overall Business plan of CVBU, Product Managers (Dom /IB) compare the analyses of current

area / Country scans , marketing business plan and conduct gap analysis with respect to requirement of new products / variants, network viability / expansion needs, promotional needs, HR resource requirement etc

6 Business Plan (annual- Dom /IB) ) is further explored for New products/ variants required, Network expansion required, HR resource requirement, Sales Volume targets for year, etc. and communicated to respective division

3. Execution of Plan (Area / Country Sales & Product Managers) 6 Product Managers & Sales Head prepare quarterly/ monthly region-wise, dealer-wise product segment level

off- take / shipment plan considering inputs from Annual S & OP meeting 6 Product Managers prepare Budgets for Sales Promotion region-wise on quarterly basis.6 Product Managers decide requirement for the NPI / Product features.(Details in Brackets indicate involvement of various agencies)

Sub process : Prepare Marketing Business Plan Sub Process Ref : CVBU-EL-05-01 (version 1.1)Process Owner : Product Managers / Sales

/Regional ManagersFrequency : Yearly / Mid-TermEPM Linkage : CVBU-EL-05 ( Market Development )Preparation Date : 31/03/04Modification Data : 31/3/05


31.3.2005 5.4


Efficiency

Effectiveness

6 Adherence to schedule R-Y-G

6 Accuracy of forecast % (Variance – Forecast Vs Actual )

Inputsw Economic growth rate projections

and other Macro – economic parameters

w Country Scan reports w Historical data (Time Service

Software) for Short term ( ST) forecasting

w Market share targets (Dom /IB) w Sector wise growth estimates (Region

/ Country) w Market Survey Reports

Key Steps in sub- process - 'Forecast demand at Product-Segment Level'

1. Seek data and study various inputs 2. Prepare Forecasting framework3. Analyze accuracy of forecasts

Outputsw Industry / Country Volumes forecast w for- Long Term (5 years)

- Annual (1 year)- Short Term (Quarterly, Monthly)

How it operates (Methods/ Practices)1. Seek data & study various inputs (Market Research) - 6 Market Research / Country Managers collect data for demand forecasting on an ongoing basis. The

data includes economic growth rates (Dom /IB) and other macro- economic parameters, projections of freight / passenger movement, GDP, EXIM trade, Bank Rates, Railway & Diesel prices, replacement / incremented truck demand, Regulatory norms prevailing in various regions / countries, etc.

2. Prepare Forecasting framework (Market Research / Country Managers) -6 MR / Country Managers evolve Industry/ Country volume forecast for Long Term (5 Years), Annual /

Quarter / Monthly basis a) Long term forecasting (3 - 5 years)

6 Analytically freight availability due to economic growth is calculated 6 Freight divided between major modes of transport e.g. Rail, Road, Waterways, Airways 6 Road transportation share converted into number of trucks required to carry 6 Depending upon our market share the truck volume are ascertained 6 Replacement requirement is added to arrive at Long term forecasting b) Annual forecasting 6 Using above inputs demand forecasting is worked out analytically 6 Replacement volume is added to arrive at annual forecasting c) Short term forecasting ( next 3 - 6 month) 6 Process uses the special statistical analysis software package FORECAST PRO 6 Generate for next 3-6 month projection For IB, Country Managers seek the help of their own

resources / experts in the respective countries for the above.3. Analyze accuracy of forecasts (Market Research / Country - Product Managers) - 6 MR / Country Managers analyse monthly Actuals Vs Forecast for past data for further use.

(Details in Brackets indicate involvement of various agencies)

Sub process : Forecast demand at Product - Segment Level

Sub Process Ref : CVBU-EL-05–02 (version 1.1)Process Owner : Head of Market Research /

Country ManagersFrequency : Yearly / Mid-TermEPM Linkage – CVBU-EL-05 (Market Development )Preparation Date : 31/03/04Modification Date : 31/3/05

TATA Motors, CVBU Forecast Demand at Product - Segment Level

31.3.2005 5.5

Inputs! Performance Targets for Channel Partners ( Dom / IB )!Business Guidelines as per CP Agreement!Governance Guidelines!Controlled Procedure Manual


Efficiency

Effectiveness

w Segmentation Review and frequency of Review No. of Reviews

w Changes in segmentation over a period No. of Changes

w No. of Solutions Developed for each Sector Nosw Improvement in CSI %

Inputsw w

ww

w ww

SIAM / Countrywide guidelinesEmerging Customer & Market

trends (Dom/ IB)CVBU strategy (Dom/IB)Listening & Learning feedback on Product, Usage

and GeographyNVB servicesCluster AnalysisCompetition Segmentation

Key Steps in sub- process - 'Determine Customer Groups &

Market Segments' 1. Study various inputs & evolve

segmentation Plan2. Determine Market Segments 3. Determine Customer Groups

Outputsw Product based segments w Geography based Region-

Country-wise structures w End-use based sectors for

sectoral solutions

How it operates (Methods/ Practices)1. Study various inputs and evolve segmentation plan (Product Managers) 6 Product Managers (Dom / IB), Marketing Research / Country Managers study various factors influencing market conditions, CVBU capabilities and thrust

areas.This is done through use of various listening and learning approaches and VOC/ QFD exercises and Application Matrix

2. Determine Market segments (Product Managers) 6 Product / Country Managers and MR determine segmentation of the market

based on Product, Usage and Geography and SIAM / Country classification 6 Product based Lines of Business (M & HCV, LCV, SCV , Bus, NVB.. ) 6 Usage based segmentation

( Sectoral business production in Cement, Steel, etc.) 6 Geography based segmentation (Secondary segmentation based on regions / countries, etc. 3. Determine Customer groups (Product Managers) 6 Form Customer groups based on nature of usage, fleet size, etc. for focus

attention (such as, Institutional Sales (IS), State Transport Undertakings (STU), Individual Customer, etc.


Sub process : Determine Customer Groups & Market Segments Sub Process Ref : CVBU-EL-05-03 (version 1.1)Process Owner : Product Managers / Sales / Regional ManagersFrequency : Yearly EPM Linkage– CVBU-EL-05 (Market Development )Preparation Date : 31/03/04Modification Date : 31/03/05

TATA Motors, CVBU Determine Customer Groups & Mkt. Segments

31.3.2005 5.6

Inputsw CVBU past data on product & Non

product issues w Customer / CP complaintsw CVBU SC inputs regarding CSI /

DSI

Key Steps in sub- process - 'Determination of Customer and

Channel Partner Satisfaction'1. Identify issues impacting customer satisfaction2. Develop Questionnaire3. Interview Customers of Tata & Competition4. Analyze data 5. Prioritize areas of improvements and prepare action plan

Outputsw Customer Satisfaction Index (CSI)w Dealers Satisfaction Index (DSI)w OFIs / Areas of concernw Customer Satisfiers & Dis-satisfiersw Prioritized areas for improvement in CSI / DSI

How it operates (Methods/ Practices)1. Identify issues impacting Customer satisfaction (MR/ CS/ Product Managers) 6 MR along with Product Managers/ Sales/ CS/ NVB decides the scope of the CSI / DSI study to be

undertaken , issues, segments, sample size, attributes, method of determination (Internal / Third Party ) and comparative standard (own performance / competitor performance), etc.

2. Develop Questionnaire (Market Research) 6 MR develops questionnaire which covers positively worded statements covering above aspects 3. Interview Customers of Tata & Competition (MR/ Surveying Agency)6 MR carry out interviewing of customers of Tata and competition through in- house or third party

agency. This is done for a sample size arrived statistically, on 5 points Likert scale 4. Analyze data (Market Research) 6 MR / Third Party consultant analyse data using regression and factor analysis. The analysis is

carried out to identify areas of concern for CVBU & its relative positions with respect to competition5. Prioritize areas of improvements and prepare action plan (MR/ CS/ Product Managers) 6 MR identifies areas of concern & communicates to Product Managers/ CS/ NVB (both product / non

product) -Product Managers / CS/ NVB prepare and deploy action plan for improvements in CSI / DSI(Details in Brackets indicate involvement of various agencies)

Sub process : Determination of Customer & CP Satisfaction

Sub Process Ref : CVBU-EL-05-04 (version 1.1)Process Owner : Product Managers / CS / Market

Research Frequency : Yearly / Mid-TermEPM Linkage – CVBU-EL- 05 (Market Development )Preparation Date : 31/03/04 Modification Date : 31/03/05

TATA Motors, CVBU Determine Customer Groups & Mkt. Segments

Efficiency

Effectiveness

w CSI / DSI for CVBU %

w % Improvement is CSI / DSI %w Areas of improvement identified Nos


31.3.2005 5.7


Efficiency

Effectiveness

w % Usage of Budget – Target Vs Actual %w % Increase in Sales Volume & Market share of % Regional Product Managersw No. of Product Campaign programs arranged Nos.w No. of schemes designed Nosw Expenses - Budget Vs Actual per vehicle Rs/Veh

w Increase in awareness of targeted customers and % general public, regarding Tata Motors CV Product

Range and Services

Inputs! Performance Targets for Channel Partners ( Dom / IB )!Business Guidelines as per CP Agreement!Governance Guidelines!Controlled Procedure Manual

Inputsw CVBU Focus areasw Purchase Drivers w Industry Forecast – Short Termw Sales Pipelinew Targets for marketing product segment w Marketing Budgetw Emerging Customer & Market Trendsw Analysis of Application Matrix

Key Steps in sub process - 'Promote Products of Tata CV entire Range'

1. Study Emerging Customers & Market Trends2. Allocate budget for CV products – Overall target achievement3. Plan Market Devpt. & Design Schemes4. Plan & Execute Sales Promotion Initiatives 5. Measure effectiveness

Outputsw Increase in Sales volume and Market

Sharew Region wise budgets for Product

Promotion

How it operates (Methods/ Practices)1. Study Emerging Customers & Market Trends (Product Managers) 6 Product Managers heads study emerging customers and market trends and other inputs such as Sales Pipelines, ST industry forecast, CVBU focus areas, etc.2. Allocate budget for CV products - Overall target achievement (Product Managers) 6 Product Managers seek annual budget for Market planning activities from CVBU Business Plan 3. Plan Market Development and Design Schemes (Product Managers) 6 After studying the inputs and volume targets Product Managers Heads plan market and design schemes considering targets for Volume and Market share. 6 The Budgets are then further divided Region wise according to the targets and Regional Product Managers while operating within given budget design product level incentives schemes, advertising, road shows, demos, etc. Channel Partners Regional level schemes such as inputs are also sought during demos, advertising actual expenses, etc.. 4. Plan & Execute Sales Promotion Initiatives (Product Managers/ Marketing Communications) 6 Product Managers plan Sales Promotion activities such as advertising and publicity in

consultation with Corporate Communications department, who in turn involve various advertising agencies for Sales Promotion.

5. Measure effectiveness ( Product Managers)6 Product Managers/ Regional Product Managers keep track of Budget Usage and target

achievements and use this as input for further market planning activities (Details in Brackets indicate involvement of various agencies)

Sub process : Promote Products of Tata CV entire Range Sub Process Ref : CVBU-EL-05-05 (version 1.1)Process Owner : Product Managers / Sales / Regional Managers Frequency : Yearly / Mid-TermEPM Linkage – CVBU-EL- 05 (Market Development )Preparation Date : 31/03/04 Modification Date : 31/03/05

TATA Motors, CVBU Promote Products of Tata CV entire Range

31.3.2005 5.8

Vendor ManagementTATA Motors, CVBU

CVBU-EL-06


EPM Process No:

Mr. P M Telang - President (Pune and Dharwad Works)

Vendor Management


CVBU-EL-06-01

CVBU-EL-06-02

CVBU-EL-06-03 Tooling Assistance to Vendors

Procurement from Suppliers

Monitor & Improve Vendor Performance

Locational Process chief: Locational ADD / Materials Heads

CVBU-EL-06-04

CVBU-EL-06-05

Development of New Vendors

Development of Item

J S Hegde

Head Materials of respective plant

P K Sinha

J S Hegde

V N Bedekar

31.3.2005 6.1

Process Revision / Modification History


New Release

Process Identification No.(PIN) :

Process Title-

Process Objective-

- VENDOR MANAGEMENT

-


Output Measure / Effectiveness MeasureIn-Process / Efficiency Measure Unit of Measure Unit of Measure

--


End Customer -


ISO / TS16949(2002) Clause Ref.


01/06/03 00

31/03//05 01

§ Sourcing Strategy & Requirement

§ Current Vendor Capabilities and Performance

§ ISO - TS 16949 Procedures

§ Drawings and Specifications

§ Cost Targets

Ø Assess Current Resources

Ø New Vendor Development

Ø Development of New Part / Services

Ø Procurement of developed Parts/ Services

Ø Monitor Vendor Performance and Vendor Rationalisation

Ø Vendor Quality Upgradation

Develop and Maintain a Bank of Reliable Vendors


Process Owner Mr. P M TelangPresident (Pune & Dharwad Works)

Cycle Time of Vendor / Part Development

Quality of Supplies

ADD, Auto Materials, QA, MPC, SPD

Modification through process review

BES, Pune

Process Team


Monitoring Progress vis-à-vis targets

Head of Manufacturing, CVBU SC


7.4

ü Competent Vendor Base

ü Direct Material Cost Reduction

ü Quality Supplies

Percentage

Lead Time for new Vendor Development

No of Self Certified Vendors / % CQ suppliers

Parts with 2 or less Vendors / Vendor Rating

varience wrt Target Cost / Budget

Nos., Percentage

Percentage

Nos. / Rs


CVBU-EL-06

31.3.2005 6.2


Process Owner : Mr. P. M. Telang - President (Pune & Dharwad Works)Process objective : Develop and maintain a bank of reliable vendors for

inputs in vehicle manufacturing, assembly & spare parts operation

Develop new Vendor asper sourcing guidelinesDevelop Secondary vendors for Criticle Subprocesses

Vendor Devp. Agency -Monitor Vendorperformance

Vendor Devp.Agency / Matls/ QA

DevelopMaterial / Service

Vendor Devp.Agency

Current vendorcapable to produce

Inputs--SourcingStrategy-current vendorCapabilities,-Product Requirement

-Receive MaterialRequirement plan,-Assess currentresource

Vendor Devp. Agency

Performance satisfactory?

Vendor Deselection forconsistent poor performance

Matls -Access QualitySystems-Award CQCertification-Vendor Quality Upgradation

QA / Matls

-Provideschedules forRegularProcurement-Decide Share of Business

Matls, MPC

Inputs--Indent for devpt. Of items / service-Drawings & Specifications-Vendor Capabilities,-Cost and ScheduleTargets,-Alternative Options-ISO-TS 16949Procedure

Output--Feedback on Quality,Cost and Delivery-Vendor RatingProcess.-Internal / ExternalCustomer Feedback,-design & ManagementCapabilities of Vendor.

No

Yes

No

Yes

Inputs-Annual Monthly SalesPlan for Vehicle and Spare Parts

31.3.2005 6.3


Development of New VendorsTATA Motors, CVBU

Inputs6

6

6

6

Make or Buy decisionIndents for new partsRequest from materials agency for an alternate source.Information on suppliers gathered through exhibition, advertisements

Key Steps in - 'Development of New Suppliers'

1. Maintain existing Suppliers data base2. Identify the need for a new source3. Assess capability of prospective Suppliers including

management & technological capability4. Select Supplier & organise site visit5. Seek approval & allot Supplier code

Outputs6 Reliable supplier for Direct inputs

in vehicle manufacturing & assembly fulfilling QCDDMS rating norms

How it operates (Methods/ Practices)1. Maintain existing Suppliers database -6 Buyers of dev. Agency maintain information of existing suppliers (category of items, capacity, capability &

their speciality if any).2. Identify the need for a new Source -6 Scrutinize part indents / requests based on criteria 1) New Technology 2) Cost Competitiveness

3) Volume requirement v/s Capacity of existing Suppliers 4 ) Performance of existing Suppliers.3. Assess capability of prospective Suppliers through CFT–6 Get Supplier information in specified form and shortlist potential Suppliers. Check Quality systems, financial capability, machine & equipment capability, adequacy of management, design

capability, setup etc.4. Select Supplier & organise site visit –6 Head of development agency ( ADD ) forms CFT of Materials, ERC, QA and Pricing committee

and assign team leader. 6 Team leader prepares site visit plan and communicate to Supplier and members.6 Team conducts site visit & submit team visit report to Materials Head.

5.Seek approval & allot Supplier code –6 Development agency prepares Supplier approval proposal in standard format with teams

recommendations and obtain Plant head’s approval through MPC. Based on approval Finance allots Supplier code and updates Supplier data.``

Sub process : Development of New Vendors Sub Process Ref : CVBU-EL-06- 01 (version 1.1)Process Owner : P K SinhaEPM Linkage– CVBU-EL-06 ( Vendor Management )Preparation Date : 31/03/04Modification Date : 31/03/05

Efficiency

Effectiveness

6 New supplier development within time line No. of Days of project schedule6 VQR trend over a period No. of Mths6 Ppm trend Positive6 Cost reduction offered Y-O-Y basis Rs. Crore / %

(Value / %)

Vendor Process Audit rating Index

31.3.2005 6.4

Development of ItemTATA Motors, CVBU

Inputs6 Indent from planning Agency6 Recommendation from

Materials Agency6 Drawing / specifications6 Quality standards

Key Steps in - 'Development of Item '

1. Identify sources2. Get quotations3. Negotiate & finalize price4. Procure samples5. Complete PPAP6. Procure pilot lot7. Transfer of items

Outputs6 Transfer of developed item to

Materials Agency

How it operates (Methods/ Practices)1. Identify sources - 6 Concern buyers of development agency study the item requirement and select

Supplier from current Suppliers if available, else develop new Supplier.2. Get quotations- 6 Buyers send enquiries along with drawing specs to Suppliers, obtain their quotations and prepare

comparative statement3. Negotiate & Finalise price – 6 Buyers study price breakup and call Suppliers for negotiation. They finalize price and obtain

pricing committee’s approval for price and terms & conditions 5. Procure samples – 6 Buyers raise PO on a Supplier and procure sample lot. CQ checks sample lot and prepare

inspection report. CQ obtains ERC approval where necessary. Buyers communicate inspection report to Supplier.

6. Procure pilot lot - 6 After acceptance of samples, Buyers procure pilot lot and obtain CQ approval.7. Transfer of items 6 Buyers prepare transfer note, obtain signature from Central Quality and Logistics group

on transfer note. Buyers hand over transfer note to concerned Materials agency from whom the request was received. Development agency short closes their purchase order

Sub process : Development of Item Sub Process Ref : CVBU-EL-06- 02 (version 1.1)Process Owner : J S HegdeEPM Linkage – CVBU-EL-06 ( Vendor

Management )Preparation Date : 31/03/04Modification Date : 31/03/05


Efficiency

Effectiveness

w No of items items transferred as per Nos.time line

No of parts having two or less vendors Nos.Quality performance of Vendorsw ( % rejection ) %w Ppm level / trend for the part Positive

31.3.2005 6.5

Tooling Assistance to VendorTATA Motors, CVBU

Inputs6 Budget approval6 Request for Tooling from Suppliers6 Corporate guidelines

Key Steps in - 'Financial / Tooling Assistance'

1. Assess tooling requirement & decide make or buy2. Negotiate Tool cost with Supplier3. Procure Tooling 4. Handover Tooling to Supplier5. Annual verification of Tooling

Outputs6 Providing Tooling to Supplier

How it operates (Methods/ Practices)1. Assess tooling requirement & decide make or buy6 Buyers of Development ( Dev. ) Agency assess Suppliers Tooling assistance requirement and

take make or buy decision in consultation with Planning & PE. Agreement is done with Supplier as per Corporate Guidelines where Tooling is made / bought by Suppliers on our behalf. For in-house Tooling indents are raised on Planning.

2. Negotiate Tool cost with Supplier6 For bought out tooling on receipt of quotation from Supplier, Buyers of Dev. Agency finalize

Tooling cost with the help of CFT ( QA, PE, ADD & Planning ) and obtain approval for Tooling cost and type of assistance ( e.g. upfront payment / amortization ) as per procedure.

3. Procure Tooling –6 Negotiate rate and raise purchase order for Tooling through Machine Purchase on Tool

manufacturer by following capital item procurement procedure.4. Handover Tooling to Supplier–6 Tooling is directly delivered by Tool manufacturer to Supplier. Tooling is tested by Supplier.

Based on acknowledgment of Supplier dummy GIN & Delivery Note are prepared. Payment to Tool manufacturer is made on the basis of certification of Supplier that Tooling is giving desired output. Based on acknowledged delivery note Finance capitalizes the Tooling.

5. Annual verification of Tooling–6 Buyers of respective materials agency maintain list of Tooling given to Suppliers on loan basis.

They verify Tooling every year and submit the report to Finance

Sub process : Tooling Assistance to VendorsSub Process Ref : CVBU-EL-06- 03 (version 1.1)Process Owner : J S Hegde

EPM Linkage – CVBU-EL-06 ( Vendor Management )Preparation date : 31/03/04Modification Date : 31/03/05


Efficiency

Effectiveness

6 Adherence to target dateTarget V/s6 Adherence to verification schedule actual date

6 Variance of budget V/s actual incurrence %

6 On time development of components %

31.3.2005 6.6

Procurement From SuppliersTATA Motors, CVBU


Inputs6

6

6

6

Production forecastSPD , CKD & other plant call upItem transfer note from development agencyPrice revision approvals

Key Steps in - 'Procurement from Suppliers'

1. Annual Review of Rates & Suppliers performance

2. Obtain price / quota approval3. Raise POs and amendments4. Resolve Supplier issues

Outputs6 Scheduling agreements and

amendments6 Procurement as per schedule


1.Annual Review of Rates & Suppliers performance –

6 Buyers identify scope for improvement by reviewing item / suppliers combinations for poor

quality and cost performance based on the previous year’s data and current market trend and

targets. Wherever necessary e – procurement events are conducted and alternate sources are

identified. Inform development agency to develop an alternate source. Rates are negotiated.

2.Obtain price / quota approval-

6 Buyers negotiate rates and recommend revised quota (SOB) to Pricing committee based on

price and performance of existing as well as newly developed source. Pricing Committee

approves rate & quota and update quota in the system.

3. Raise POs and amendments -

6 Buyers raise POs for requirement in line with production plan, transfer note and quota approval

and communicate PO / amendments details to Suppliers.

4. Resolve Supplier issues –

6 Materials Agency head / buyers arrange formal or informal joint meetings with Suppliers and QA

to discuss issues regarding quality and delivery with a view to improve suppliers’ capability.

Sub process : Procurement from Suppliers Sub Process Ref : CVBU-EL-06- 04 (version 1.1)Process Owner : Head Materials of respective

plantEPM Linkage – CVBU-EL-06 ( Vendor


Efficiency

Effectiveness

ww SOB adherence %

w Supplier satisfaction index Indexw Vehicles with short fitment Nosw Cost reduction Rs. per

Vehicle

Cycle time for action on transfer note No. of Days

31.3.2005 6.7

TATA Motors, CVBU


Inputs6

6

6

Monthly Q, C, D data for each SupplierWarranty feedbackPDI report

Key Steps in - 'Monitor and Improve Vendor Performance'

1. Monthly monitoring of PPM level2. Review of vendor rating 3. CQ certification of new Vendors 4. Monitoring and Audit of CQ Vendors5. Performance based rewards & recognition

Outputs6

6

Vendor ratingCQ suppliers

How it operates (Methods/ Practices)1. Monthly monitoring of PPM level -6 Central Quality collects Supplier-Part wise monthly primary & line rejection data and arrives at

PPM l evel. The feedback is given to Suppliers for improvement.2. Review of vendor rating -6 Every quarter Vendor rating is computed on the basis of quality, cost, delivery and warranty

performance of Vendor. Vendor rating is used for determining Share of business ( SOB ), development of new parts and de-selection of vendors.

3. CQ certification of new Vendors –6 Central Quality and material agencies encourage suppliers to establish Quality Management

Systems at his end. Central Quality assesses quality systems of Vendors and awards Self Certified ( CQ ) Vendors status if he attains desired level..

4. Monitoring and Audit of CQ Vendors– 6 CQ vendors are audited for compliance as per pre-determined frequency. Suppliers give PDI

certificate for every consignment.5. Performance based rewards & recognition–6 Suppliers with high Vendors rating are considered for new part development and higher SOB.

Suppliers with consistent low rating are given lesser business or deselected. 6 Cost of primary / line rejection and warranty failed parts are debited to the Suppliers.6 CQ Vendors are considered for Direct Supplies to Line ( DSL ).6 Incoming quantity is checked on random basis and Suppliers are penalized for short receipts

Sub process : Monitor and Improve Vendor Performance

Sub Process Ref : CVBU-EL-06-05 (version 1.1)Process Owner : V N BedekarEPM Linkage – CVBU-EL-06 ( Vendor


Efficiency

Effectiveness

w

w ISO Certified / self certified vendors %w Vendor rating %w Improvement trend in Vendor rating Rs/eqw Trend in MD Rejection Cost Vehw Suppliers below 200 PPM

% adherence to audit schedule %

%

Monitor and Improve Vendor Performance

31.3.2005 6.8

Channel Partner ManagementTATA Motors, CVBU

CVBU-EL-07



EPM Process No:

Mr S M Sharma - Head ( Customer Support )

Channel Partner Management

CVBU-EL-07-01

CVBU-EL-07-02

CVBU-EL-07-03

Assess Requirement of Channel Partners

Select and Appoint New Channel Partner

CP Performance Monitoring & Audit

Sales Service Spares IB

Dealers TASS Distributors Importers/Distributors

Head - DD

Head - DD

Head - DD

Head- CS Head - LOB4 Head-IB



31.3.2005 7.1


New Release


Process Title-

Process Objective-

CVBU-EL-07

- CHANNEL PARTNER MANAGEMENT

-


In - Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure


End Customer -


ISO / TS16949(2002) Clause Ref.


01/06/03 00

31/03/05 01

§ CVBU Strategy

§ Long Term & Short Term Business Plans

§ Territory/ Segment-wise Market

Potential and Market Share Targets

§ Existing Channel Partners (CP)

Performance

§ CSI / DSI Survey Findings

§ Competition Data

Ø Assess Territory/ Segment-wise requirement of Channel Partners

Ø Induction of new Channel Partners wherever required

Ø Set Targets

Ø Provide Process and Training Support

Ø Monitor Performance against Targets

Ø Performance Based Rewards and Recognition to Channel partners

Ø Periodic audit at CP

Ø Collect feedback from Channel Partners as well as from Customers

ü Territory-wise Network of

Dealers, Service Stations and

Spare Parts Distributors

ü Channel Partner Satisfaction

ü Customer Satisfaction

Develop & Maintain Bank of Reliable and Motivated Channel Partners for Sales & Service


Process Owner Mr S M Sharma Head Customer Support

Appointment of CPs as per Schedule, No CPs where Sales/ Service Processes Introduced

Dealer & Customer complaints monitoring

Nos. No. of CPs availableNo of Outlets availableDSI and CSI

Market Share & Volumes achieved

Nos.

Dealer Development, Vehicle Financing, Customer Support, LOBs, Sales, Service HQ


BES, Pune

Process Team

Monthly Sales, Service and Spare Parts Performance of CPs

Nos.

Nos.

Index

%, Nos.

Channel Partners


7.2, 8.21



31.3.2005 7.2

Process Owner : Heads of Sales (Dom /IB), Customer Support and NVBProcess objective : Develop and Maintain a bank of reliable and

motivated Channel Partners for Sales and Service.

Ascertain region-country wise requirementof new channelPartners andinvite applications

DD / CS / NVB / IB

SeekAcknowledgement for TCOC,-Set Schedule and Issue LOI

DD/CS/NVB/IB

Receive &ScrutinizeApplications,Analyze FinancialCapability and short list

DD/CS/NVB/IB

-Due diligence -site visits & interview

DD/CS/NVB/IB

FindingsOK?

No

Reject / Refund EMD

Review complianceProgressw.r.t.Schedule

DD/CS/NVB/IB

Commencementof Business (COB)-Sign off AgreementsWith CP as per prevailing regulations in the region/country

DD / CS / NVB / IB

Review Territory-country and Product Segment wiseChannel PartnersScenario and CP Promotion policies -Set Targets and Initiatives

DD/Sales/CS/NVB/IB

Channelpartners

Adequate?

-Set / Reviewperformanceexpectations(Volume, Quality & Financial ) for each CP

Sales/DD/CS /NVB/IB

-Monitor andreview monthly/quarterly/ yearlyperformanceagainst Targets

Sales / DD /CS/NVB/IB

Performancebased Reward /Recognition at the Channel Partner meet / other functions

Sales / DD/CS / NVB/IB

Periodic auditof systems/ processes atCP’s end

DD/CS/NVB/IBInternal Audit

Organise Dealermeet and ThirdParty Surveys

DD/ CS /NVB

Support for establishing process and Training DD/ CS /NVB/IB

Inputs--CVBU strategy (Dom /IB)-LT & ST business Plans-Territory / Country product segment wise potential & market share Targets.-Existing CP’s performance-CSI / DSI survey findings-Competition Data

No

Inputs-Territory / Country Potential and Past Performance


Yes

Yes

31.3.2005 7.3

Inputs(Dom /IB )w CVBU Marketing Plan

w Competitors network reach in CV (Dom/IB) Market (Sales & Service)w CVBU’s strategic directions Global /

domestic presence in chosen product segments/ markets

w Benchmark / Competition dataw CSI findingsw Un-presented territory with market

potentialw Growth potential of territory /

country & market share (Sales & Service)

w Country-Region-wise Sales / Service Market Share targets


1. Study and analyze existing network capacity & reach and identify

gaps w.r.t. CVBU Marketing ( Dom / IB ) Plan.

6 Map TML Network reach and identify gaps w.r.t competition network &

2.wheeler network. Identify locations.

6 Prepare CP-wise annual plan for Sales, Service and Spares, identify gaps

2. Assess the need for presence of CVBU Channel Partners in the niche

market /region/country

6 Study long term strategic directions and guidelines given by SC

6 Niche market study and competitive position of CVBU in terms of channel

presence is carried out.

6 Prepare Network expansion ( Domestic / Global ) plan for Sales, Service

and submit to SC for approval.

3. Develop and Implement Sales / Service network ( Dom / IB) expansion

Plan

Key Steps in sub - process - 'Assess requirement of Channel Partners'

1. Study and analyze existing network Capacity & reach and identify gaps

2. Assess the need for CVBU Channel Partners (Dom / Global)

3. Develop and Implement Sales / Service network (Dom/IB) expansion plan

Outputsw Probable locations for new Sales

outlets / workshops w Product Segment wise and Region-

country wise requirement of new Channel Partners

w Service network expansion plan.

Sub process : Assess Requirement of Channel PartnersSub Process Ref : CVBU-EL-07-01 (version 1.1)Process Owner : Heads of DD Cell / CS / NVB / IBFrequency : Yearly EPM Linkage – CVBU-EL- 07 (Channel Partner Management) Preparation Date : 31/03/04Modification Date : 31/03/05


Efficiency:w No of CPs identified Vs Target Nos.w % increase in reach planned % of districts /

countries represented

Efficiency:w CSI w.r.t. availability of Channel Partner Indexw DSI / TSI w.r.t. territory Indexw Coverage of territory where competitor is No. of Locations

present

Assess Requirement of Channel PartnersTATA Motors, CVBU

31.3.2005 7.4


Efficiency

Effectiveness

w No of CPs appointed against the plan Nos.

w Avg. Time for new CP introduction No.of Days

w Conversion rate of LOI into COB. %

Inputs-w Corporate Guidelines and approvalw Network Expansion (Dom /IB) Planw Existing CP’s performance in the region / country w CSI / DSI findingsw Competition Data

Key Steps in sub- process - 'Select & Appoint New Channel Partner’

1. Identify suitable prospects2. Assess on-site : due diligence3. Recommend suitable candidates for LOI4. Verify LOI compliance and approve COB5. Authorization to start business

How it operates (Methods/ Practices)1 - Identify suitable prospects6 Float advertisement for Channel Partner for Sales, Service and Spares

(as the case may be) 6 Send Application Form to desirous candidates (Application seeks the details of the candidates, financial strength, past profile,etc ) 6 Receive application with necessary documents

6 Evaluate application based on the profile of the applicant 6 Short List candidates for site visit and due diligence

2 - Assess on site : due diligence6 Assess Financial viability of the candidate,

6 Conduct site visit and interview 6 Verify information stated in application,financial papers, due diligence 3 - Recommend suitable candidates for LOI 6 Recommend suitable candidates for LOI ( Letter of Intent)6 Study clauses to be incorporated in the agreement for safeguarding the potential risks. 6 Seek ED / Chairman approval and issue LOI to the selected candidates

6 Explain Tata Code of Conduct to LOI holder4 - Verify LOI compliance and approve COB ( Commencement of Business) 6 LOI holders to complete infrastructural and other requirement in stipulated time6 COB is approved by ED(CVBU)/Chairman for the LOI holders complying the

requirements.5 - Authorization to start business6 LOI holder sign the agreement as per the rules prevailing in the region and TCOC

contract with TML and is authorized to start business. On compliance of Building, infrastructure and other required resources and training he becomes Authorized Channel Partner of TML

Sub process : Select and Appoint New Channel PartnerSub Process Ref : CVBU-EL-07-02 (version 1.1)Process Owner : Heads of DD Cell / CS/ NVB/ IBFrequency : Yearly EPM Linkage - CVBU-EL- 07 (Channel Partner

Management) Preparation Date : 31/03/04Modification Date : 31/03/05

Select & Appoint New Channel PartnerTATA Motors, CVBU

Outputsw Increase in network (Dom/IB) reachw Addition of new CPs to networkw Increase in Sale of vehicles / spare

parts through CPw Improvement in CSI / DSI w Letter of Intentw Commencement of Business (COB)

31.3.2005 7.5

Key Steps in sub - process- 'CP Performance Monitoring & Audit'

1. Set performance expectations2. Monitor & review monthly / quarterly/ annual performance vis-à-vis targets3. Render Training Support 4. Recognize high performance5. Conduct periodic audit and organize third party surveys

Inputsw Performance Targets for Channel Partners ( Dom / IB )w Business Guidelines as per CP Agreementw Governance Guidelinesw Controlled Procedure Manual

Outputsw Monthly/Quarterly/Annual CP

performance reportsw Workshop profitabilityw Adherence to TCOCw Compliance to TS requirementsw Adherence to Governance /

Performance Guidelines/TCOCw Audit Recommendationw Compliance to TS requirements

How it operates (Methods/ Practices)1 - Set performance expectations 6 Performance expectation w.r.t. Sales / service & spare parts are set and

informed to Channel Partners (Dom /IB) 2 - Monitor and review monthly / quarterly /annual performance vis-à-vis targets 6 Channel Partners send Sales / workshop performance and spare parts sales

to concerned AO / Country Managers who in turn forward the same to DD/ Sales /CS / NVB / IB as the case may be.

3 - Render Training Support 6 DD/STC/ Sales Process team (IB) render training for Channel Partners

(Dom/IB) staff in consultation with concerned Sales / CS / NVB / IB personnel4 - Recognize high performance 6 Good Sales / Services and Spares performance (region/ product segment-wise) is

rewarded in regular National / International Channel Partner meet and other functions.5 - Conduct periodic audit and organize third party surveys 6 Audit w.r.t. statutory complaints Sales / Service Process Implementation, Project Vishwas, Operation raid etc.

Sub process : CP Performance Monitoring & Audit Sub Process Ref : CVBU-EL-07-03(version 1.1) Process Owner : Heads of DD / CS/ NVB / IBFrequency : Yearly / Mid TermEPM Linkage – CVBU-EL- 07 (Channel Partner

Management) Preparation Date : 31/03/04Modification Date : 31/03/05

CP Perfomance Monitoring & AuditTATA Motors, CVBU

Efficiency

Effectiveness

w Adherence to audit schedule R-Y-G

w L/B/D, S/B/D, V/B/D AgainstBenchmarks

w No. of Non-conformities observed during Nos. audit and resolvedw Service Market Share %


31.3.2005 7.6

New Product IntroductionTATA Motors, CVBU

EPM Process No:



Head NPI


CVBU-EL- 08

Mr R A Bijlani - Head NPI Project - CVBU

CVBU-EL-08-01

CVBU-EL-08-02

CVBU-EL-08-03

Development of NPI Product Plan

Budgeting of NPI Project

Monitoring Execution of Project NPI Proejct Manager

NPI Project Manager

CVBU-EL-08-04

CVBU-EL-08-05

Product Design & Development

Process Planning Head Planning

Head ERC

31.3.2005 8.1



INPUTS


New Release


End Customer -


ISO / TS16949(2002) Clause Ref


01/06/03 00

31/03/05 01

§ CVBU Strategy and Business Plan§ CV market Needs & opportunities§ Tata Motor’s and Competitor's

Product Profile§ Technologies available§ Internal Capabilities§ Competitor Analysis§ QFD, VOC§ Benchmark Data§ CMVR Requirement

Ø Product Strategy & Product Plan ReviewØ Receive and analyze customer requirementsØ Project InitiationØ Concept selectionØ Project classificationØ Concept and Project approvalØ Design Release, validation & certification-Ø Planning of Facilities, Vendor DevelopmentØ Quality Proving, Process validation Launching of Product

ü Timely Introduction of new product meeting quality and cost targets


Adherence to time schedule while driving of project.

Colour indicator : Green - 0 to 2 monthsYellow - 2 to 4 monthsRed - 4 months and above

New Products / variants introduced against target

New Products / variants cycle time against target

Achievement of Quality targets

Actual Vs Budgeted Project and Product cost

Nos.

% Adherence

Product Strategy Group, SC, NPI, MKTG, ERC, Auto planning, ADD, PE, MPC, SSG


5.4.2, 7.3


BES, Pune

Process Team

% Variation

% w.r.t. target

CVBU - EL - 08

Process Title Mr R A Bijlani Head NPI CVBU

Process Objective Timely Introduction of New Product to market requirement

Process Owner


KEY STEPS


OUTPUTS



31.3.2005 8.2

Process Owner : Mr R A Bijlani Head NPI CVBUProcess objective : Timely, cost effective offering of new product

to Market as per customer requirement

ProductStrategy andProduct PlanReview

PSG / SC /NPI Office

-Evaluation of Marketopportunities with the help of Concept Evaluation Team (CET)-New Project Initiation(Define product requirements, customer segments, Productpositioning,Price and volume)-Appoint ProjectManager

PSG / NPI Office

Understand customerRequirement-Workout alternateconcepts (Packaging,styling, Cost )-Prepare PreliminaryBusiness Case

Project Manager and ERC

Selection ofConcept - ProjectClassification-Time schedule-Product Definition-Prepare BusinessCase-Seek approval of PSG

Project Manager / NPI Office

-Finalise BasicLayout and Stylingand Ergonomics-Finalise vehicle &aggregate-performancespecification and review cost

ERC /Projct Manager

-Detail design-Alpha Prototypemanufacturing &testing(aggregates, and crash)-Review of design and modification

ERC/Project Manager

Inputs--CV MarketData-CompetitorAnalysis-NewTechnologies-CVBUStrategy

Inputs--New ProductRequirement-MarketOpportunities-Competitor’sOfferings

Inputs--New Technology(Advanced Engg.)-QFD-Voice ofCustomer-Benchmarks

Inputs--System LevelBenchmarks-Keycomponentsuppliers-DFMEA-PFMEA

-Process Planningand Estimate Sheetrelease-Control Planpreparation-Vendor Development-Plan and acquire/install facilities &toolingAPL/Plant Engg./ QA/ADD

-Design validation-Beta prototype mfg& testing-Review of design modification-CMVR Certification/Homologation-Release of design for pre-production batches

ERCProject Manager

Launching ofProduct

Regular Production

Quality Proving & Process Validation, Testing for volume Prodn.(PO,PP and PL batch Production)Project Mgr /Line Mgr.


31.3.2005 8.3


Inputsww

w

w

CVBU StrategyNew product proposals from Marketing and ERCMarket Research inputs on Indian as well as International market potential and competitionResource availability

Key Steps in- 'Development of NPI Product Plan'

1. Evaluate opportunities and prepare proposals

2. Prepare segment wise list of options.3. Prioritize projects4. Approval of NPI plan

How it operates (Methods/ Practices)1. Analyze Research inputs and select segment/s for NPI that support CVBU’s

strategy2. Review proposals from Marketing and ERC and short list segment wise

proposals on the merits of business case.3. Review resources committed for projects in hand, availability of Financial

resources as well as ERC capacity and prioritize projects and prepare NPI plan and estimate resource requirement for implementing the plan.

4. Seek approval of PSG and CVBU Steering committee’s approval

Efficiency:w Quarterly release of Product plan

(variance w.r.t. Time) %

Effectivenessw Product Plan communicated to

all related functions %

Sub process : Development of NPI Product PlanSub Process Ref : CVBU -EL-08-01 (version 1.1)Process Owner : Mr R A Bijlani Head NPI CVBUEPM Linkage : CVBU-EL-08 ( NPI )Preparation Date : 31/03/04Modification Date : 31/03/05

Development of NPI Product PlanTATA Motors, CVBU

31.3.2005 8.4

Outputsw Approved Product plan of NPI

Projects

Efficiency

Effectiveness

w %

w No. of Products launched as per schedule. Nos.w Products meeting deliverables w.r.t. %

Customers’ expectations.

Actual time taken w.r.t. base line

Inputsw Product Specs & Featuresw CAPEX Budget approvalsw Targets for Quality and Cost of

productw Project Cost & time targets and

Gantt chart

Key Steps in -'Execution of NPI Project'

1. Form CFT of representatives from related Functions/ Departments

2. Periodic review of activities by Functional Heads3. Periodic review by Project manager4. Periodic Internal Audit of documentation by NPI

Project office 5. Phase gate clearances ( DR0…DR5)6. Productionisation

Outputsw Introduction of new product as per

Time schedule, targeted Project and Product cost and meeting customer deliverables

How it operates (Methods/ Practices)1. Project Manager and core team is nominated by NPI department head. Nominations for CFT are

sought from the functions/ departments that have a role to play in the concerned NPI Project. The nominated person acts as single point of the concerned function/ department.

2. Concerned Function/ Department Head assigns NPI project related activities pertaining to his area to suitable persons and reviews as part of routine communicates progress through CFT member of his department

3. Project Manager interacts with concerned departments as well as conducts review meetings to resolve issues, if any,and to ensure that quality, cost and time targets are met.

4. Project Manager uses standard formats ( Designed and maintained by NPI Project office in the form of soft copy on website “COIN”) for phase wise documentation.NPI Project office conducts periodic internal audits to assure NPI department head that documentation is in order.

5. On reaching prescribed mile stone the Project Manager request for Phase Gate (DR1..DR5) review by PSG/ SC. During the Phase Gate reviews, the project is reviewed for its viability & progress,budgets are reviewed and gate way clearance is given. NPI Project Office maintains record of Gateway Sign Offs and budget approvals

6. After DR 5 sign off, Project Manger oversees productionisation of the new product, co-ordinates with concerned departments resolving issues,if any, and to ensure validation of designs and processes for required production rate. The product is then handed over to manufacturing .

Sub process : Monitoring Execution of NPI Project

Sub Process Ref : CVBU-EL-08-03 (version 1.1)Process Owner : NPI Project ManagerEPM Linkage : CVBU-EL-08 ( NPI )Preparation Date : 31/03/04Modification Date : 31/03/05

Monitoring Execution of NPI ProjectTATA Motors, CVBU


31.3.2005 8.5

Efficiency

Effectivenessw Maintain or Better Project Cost at %

targeted Valuew Maintain or better Product Cost at %

targeted value

Inputsww

w

ww

Product Specs & FeaturesHistorical Cost data for products, tooling, machines etc.Target price and volume projectionsProject Classification guide-linesTimeline templates

Key Steps in- 'Budgeting of NPI Projects'

1. Classify the project 2. Plan timeline 3. Estimate Project Cost,Estimate Product

cost, Payback Period, IRR/ EVA4. Seek Capital Budget Approval and

communicate to all the concerned5. Monitor Expenses against budget

Outputsw Project wise Budget approval

from Corporate Office

How it operates (Methods/ Practices)1. Classify project ( New product, variant, upgrade etc) using standard guide lines based on

Product Specs and Features, in consultation with ERC2. Seek broad tech. Specs, dimensions and features from ERC and communicate to all the

NPI team members to enable them to estimate cycle time, effort and cost for activities in their function/ department.

3. Seek estimates (time, efforts and cost) from team members activities in their function/department. Draw Gantt chart for project. Estimate accounting head-period wise budget requirements and total cost of the project .estimate allowable product cost. Estimate paybackperiod, IRR/ EVA and prepare business case and put up for approval of project as well as capital budget.

4. Explain and justify requirements to approving authorities ( PSG,Corporate Planning,SC etc) and seek approval for project and CAPEX. Receive Budget Codes CAPEX from Corporate Planning. Review capital budget requirements indicated by functions/ departments and allocate capital budget and allot works budget codes (WBS element) to them through Project Group of Central Planning ( Auto Planning) of plant.

5. Attach Budget Codes to work Order/ Expense and collect cost through Legacy/ SAP system

Sub process : Budgeting of NPI ProjectSub Process Ref : CVBU-EL-08-02 (version 1.1)Process Owner : NPI Project ManagerEPM Linkage : CVBU-EL-08 ( NPI )Preparation Date : 31/03/04Modification Date : 31/03/05

Budgeting of NPI ProjectTATA Motors, CVBU


31.3.2005 8.6

Efficiency

Effectiveness

w Cycle time of design and development Days

w Target Vs actual Cost of Design and Testing %w Targeted Vs estimated cost of product %

Inputsw Performance expectationsw Concept alternativesw Styling themesw Packagingw System level bench marksw Cost targetsw Tata Motor’s standards,National &

International standards and rules ( TS,IS,DIN,EN etc standards and CMVR ,EEC rules etc)

Key Steps in-'Product design & development'

1. Design Initiation Document.(DR1)Finalize basic layout, styling and performance specifications ( Dr2)

2. Design Aggr. and Comp.,insert new parts in DENIS and release for ‘Alfa’ prototype

3. Built ‘Alfa’ prototype and carry out testsDR3)4. Review design, incorporate required changes and

release for ‘Beta’ prototype5. Testing and ARAI certification.( Dr4)6. P0 and PP batch production and validation7. Final release of Drawings and TPLs(DR5)8. Validate design based on service feed back

How it operates (Methods/ Practices)1. On clearance of DR0 stage, NPI Project Manger indicates the broad performance expectation

and cost targets. Feasibility is studied, concept is selected, product profile and technical targets are proposed

2. On receiving DR1 clearance Basic layout/ mock ups are prepared, performance specifications are proposed, inputs from key component suppliers are taken ,initial FMEA is performed and Proposal giving product specifications, styling & packaging , layout and design cost & timeline estimate is given to NPI project manager for putting up business case.

3. On receiving DR2 clearance detailed designs are prepared and released for Alfa prototype. prototype is developed and tested. After incorporating changes, if required, back is given to Project Manager for seeking approval for validating business case.

4. On receiving DR3 clearance, Beta Prototype tests are conducted, full design is validated, ARAI certification is obtained and DR4 clearance is taken for P0 and PP batch production

5. P0 and PP batches are produced and tested as per planned production processes, changes recommended by QP team are analysed, designs are validated, drawings are modified where required and DML is released for full scale production after obtaining DR5 clearance.

6. After launch of product based field feed received from service is analysed to validate design. Drawing are modified where require and released through DML to APL for introducing change in production.

Outputsww

New VC NoRelease of drawings/CAD data and TPL

Sub process : Product design and development Sub Process Ref : CVBU-EL-08-04 (version 1.1) Process Owner : Head ERCEPM Linkage – CVBU-EL-08 ( NPI )Preparation Date : 31/03/04Modification Date : 31/03/05

Product design and development TATA Motors, CVBU


31.3.2005 8.7

Efficiency

Effectiveness

w Adherence to schedule %

w Planned vs actual cycle time of production No. processes

How it operates (Methods/ Practices)1. Make or buy decision is taken on the basis of manufacturing strategy. Based on this decision BOM is

created in the computerised system with appropriate condition of supply.2. Based on condition of supply planning releases indents for development of bought out components,

raw materials, castings, forgings etc; on source development agency ( ADD/ A Matls )3. Planning plans processes for all the shop made items, consults production and PE/ Tool room,

conducts PFMEA for critical item, estimates time and releases Estimate Sheets after time validation by PSD for use of Costing, Production, PSD. Planning also releases indents for new tools & tooling, machines ,equipments etc for in-house manufacturing or procurement.

4. Planning conceives shop layout and gives indents for material handling & storage equipments, building and other infrastructure facilities as required.

5. Planning co-ordinate with concerned agencies till all the required facilities , machines ,tooling areprovided and tested. During productionisation, planning validates all the processes and cycle time for required production rate.

Inputsw Drawings , TPL and Drawing / CAD

dataw Volume projectionsw Plant master, Capacity utilisation

and Cost Center dataw Manufacturing Strategyw New Technologies & trends in

manufacturingw Budget Approvals and cost

targets

Key Steps in-'Process Planning'

1. Take “Make or Buy” decision for components &aggregates and create BOM/ APL TPL

2. Release indents for Bought items/ materials3. Monitor the DML progress till implementation4. Plan Processes shop made items/ aggregates, 5. Prepare and release Estimate Sheets and indents

for new tools & tooling and inspection equipment etcthrough computerised system

6. Release indents for machines, material handling & storage equipments and building & infrastructure facilities

7. Validate processes for desired production level8. Capital Budget requirement for Auto

Outputsw Validated process & Estimate sheet

Indents for new tooling, inspection & testing equipments, machines, material handling & storage equipments, Building and infrastructure facilities.w Indents for development of bought out

components and materialsw Bill of Material – APL TPL Estimate

sheets and stage part drawings

Sub process : Process Planning Sub Process Ref : CVBU-EL-08-05 (version 1.1) Process Owner : Head PlanningEPM Linkage – CVBU-EL-08 ( NPI )Preparation Date : 31/03/04Modification Date : 31/03/05

Process Planning TATA Motors, CVBU


31.3.2005 8.8

Service Design

EPM Process No:



Understanding Customer Needs

Design of New Services

Pilot Run of New Service

Introduction of New Service

Mr S M Sharma - Head (Customer Support), Mr S Y Deshpande - AGM (Customer Support

CVBU-EL- 09

CVBU-EL-09-01

CVBU-EL-09-02

CVBU-EL-09-03

CVBU-EL-09-04 Mr. S. Y. Deshpande

Service DesignTATA Motors , CVBU

Mr. S. Y. Deshpande

Mr. S. Y. Deshpande

Mr. S. Y. Deshpande

31.3.2005 9.1

--

CVBU- EL- 09 Process Identification No.(PIN) : Higher Level Linkage-

Process Title-

Process Objective-

SERVICES DESIGN


§ Business Plan of LOB4§ Data on Spare parts & Service Long term and

Short term § Customer Satisfaction Survey and Dealer

Satisfaction Survey Findings§ Channel Partner / Customer feedback about

current Service Processes§ Past Performance of services § Govt. / ISO / SIAM guidelines § CMVR Norms§ Vehicle Features§ CVBU BSC

Process Owner Mr S M Sharma Head (Customer Support)Mr S Y Deshpande AGM (Customer Support)

Ø Data analysis and identifying new opportunitiesØ Identification of challenges and key customer expectationsØ Improvement of Existing Services / Designing of new services, if requiredØ Assessment of economic viability of new/ improvised services and

Approval from SCØ Define Process ResponsibilitiesØ Test / Pilot Run of new/ modified servicesØ Acquisition of Resources Ø Introduction of New ServiceØ Training of CPs.Ø Establish Control and Monitoring MechanismØ Conduct Periodic Surveys

ü Introduction of Customer Friendly and Cost Effective Service Processes

ü Services and Revenue from NVB (LOB-4)

Introduction of new services to support customers of CVBU products to maintain it throughout its life and enhance value for money , Growth of Non Vehicular Business (NVB)

In-Process/ efficiency MeasureAdherence to schedule of Introduction, Cycle Time of the Service

Customer Complaints

Orders on hand

Unit of Measure Output Measure / Effectiveness Measure Unit of Measure

%

Nos.

No.of Service Processes designed and deployedProfitability of CPs

CSI and DSI

Turnover and Profitability of NVB (LOB-4)

Service Market share

Nos.

Index

Rs. Crs / Percentage

%

%

Nos.


End Customer

Core Values Embedded-

ISO / TS 16949 Clause Reference-


Service HQ, NVB HQ

Channel Partners and Customers of TATA Commercial Vehicles


Date of Modfn.

01/06/03

Modification No

00

Details of Modification

New Release

Issued / Modified by

BES, Pune

Approved By

31/3/05 01 Modification through process review Process Team

Service DesignTATA Motors, CVBU


31.3.2005 9.2

-Analyse data,identitychallenges &key customerExpectationsregardingservices-Identify newproposal

NVB HQ /Service HQ

-Reviewperformanceof currentServices, NVBperformance,Pricingstrategies andincentivesPrepareBusiness Plan NVB HQ / Service HQ

Prioritiesimprovements/ new serviceintroduction,

-Definerequirements

NVB HQ /Service HQ

-Study needs-Evolve alternatives-Project cost benefits-Select alternative-Analyse anticipated risks-assess resource requirement andseek SC approval

NVB HQ /Service HQ

Process Owner : Mr S M Sharma, Head - Customer Support; Mr S Y Deshpande - Customer Support

Process objective : Introduction of new services to support customers of CVBU products to maintain it throughout its life and enhance value for money-Growth of Non Vehicular Business(NVB)

DefineProcessDeliverychannel andresponsibilities

NVB HQ /Service HQ

-Test / Pilot Run -Review and incorporatechanges, ifnecessary-Plan and Acquireresources-Training ofChannel Partner

NVB HQ/Service HQ

-EstablishControls andReviewMechanism-DefineMeasures areindicators-AssignResponsibilities-Introducenew /improvementserviceNVB HQ/Service HQ

Inputs--Market Survey Data

-Customer / Dealersatisfaction survey feed

back.-Market Research data.

Competition Data-Requirement relatedto new productsIntroduced by the company-Changes in ServicesEnvironment

Inputs--CVBU BSC,-ASO Reports,-Customer feed back,-Channel PartnersFeedback,-Govt./ ISO / SIAMguidelines w.r.t.. WorkSystems,PollutionNorms, ProductFeature etc

Inputs--Technologies-Best Practices-Benchmarkdata

Seek customer / channel Partner feedback throughInternal / Third partySurveys

NVB HQ / Service HQ

Service DesignTATA Motors, CVBU

31.3.2005 9.3

Key Steps in sub - process- 'Understanding Customer Needs'

1. Analyse inputs and decide upon attributes for data collection2. Gather feedback from customer 3. Assess customer feedback and analyse Satisfiers and Dis-satisfiers4. Prioritise needs


Nos.Nos.Nos.

Effectiveness6 No. of needs identified Nos.

Sub process : Understand Customer Needs Sub Process Ref : CVBU-EL-13-01 (version 1.1)Process Owner : Mr. S. Y. DeshpandeEPM Linkage – CVBU-EL- 09 ( Services Design )Preparation Date : 31/03/04Modification Date : 31/03/05

Outputsw Identified Needs / preferences /

requirements of – -Present Customers

-Potential Customers -Competition Customers -Future Customersw Opportunities for Improvement

Efficiency6 No. of seminars. Plan v/s conducted6 No. of customers meets Plan v/s conducted6 No. of campaigns. Plan v/s conducted

Input6 Capturing customer voice at various touch points such as

a. Customer visiting Dlr/TASSb. Customer visits/ contactsc. Customer meets/ mechanic

meetsd. Campaignse. Technical seminarsf. training meets

6 Competition offerings 6 CSI & DSI Survey Findings6 Channel Partners Feedback6 Regulatory Requirements

Understand Customer NeedsTATA Motors, CVBU

How it operates (Methods / Practices)1. Analyse inputs an decide upon attributes for data collection (CS) -6 Study various inputs and decide whether the Customer requirement study w.r.t. services, would be

carried out in-house or by third party. 6 Define Sources, Customised Listening and Learning Approaches and customer feedback access

mechanisms for different customers such as current, former, potential or competition customer 6 Assign responsibilities for gathering feedback to various agencies such as RO, AO and Channel Partners

as appropriate.6 Competition data is collected by customer visits, by visiting their group dealers/ customers

2. Gather feedback from customer (CS) -6 Based on market segmentation ( Product Groups ) and customer relationship framework (Individual /

Institutional / Key Accounts) and pre-determined L & L Approaches, NVB / CS / LOBs gather the feedback from various customers. This feedback is gathered through telephone survey by external agency, post-repair survey on larger Dealers/ TASS / MCCC feedback

3. Assess customer feedback and analyse Satisfiers and Dis-satisfiers (CS) -6 Respective LOB heads/ CS assess feedback received from various cross section of the customer( both

product and service related ) . Product related feedback is used as one of the inputs for NPI while issues related to After Sales Services are taken up for action by NVB and Customer Service.

4. Prioritise Needs (CS) - 6 Based on the feedback received w.r.t. Customer needs and CVBU strategic guidelines LOBs/ CS prioritise

the needs for further actions. (Details in Brackets indicate involvement of various agencies)

31.3.2005 9.4

Key Steps in sub - process - 'Design of New Service'

1. Define Service features 2. Naming the process & process owner3. Process Mapping4. Define Delivery Channel5. Define Service Standards6. Seek Approval

Outputs6 New / Improved service process

How it operates (Methods / Practices)1. Define Service features (CS)- 6 Analyse customer expectations and competition

offerings and arrives at characteristics of proposed services.2. Naming the process & process owner (CS)6 After service features of new process is finalised, name the process & process owner

3. Process Mapping (CS)6 The entire process, covering the new/modified features, is mapped

4. Define Delivery Channel (CS) -6 Define delivery channel e.g. Channel Partners or in-house through VCM / CAC / CRM programs,

allocate resources in such a way to enable integration of leading technology into the proposed service (e.g. VCM / SAP support to services), define skill and training requirements. Factors such as concentrated demand, financial variability and suitability of current service are considered while deciding delivery channel

5. Define Service Standards (CS) -6 Define service levels and service standards to be followed, establish control and review

mechanism6 Define in-process and output measures & indicators and targets for the same6 Define process responsibility for introduction of new / improved services to Service Owners 6 Define mode of service free or paid

6. Seek Approval-6 Head Customer Support present the draft new / improved service in the meeting with all

stakeholders, incorporate modifications, if required and seek approval from concerned SC members for the pilot run



Efficiency

Effectiveness

6 No. of new services designed / improved

6 % Customer needs fullfilled

%

%

Sub process : Design of New ServiceSub Process Ref : CVBU-EL-09-02 (version 1.1)Process Owner : Mr. S. Y. DeshpandeEPM Linkage – CVBU-EL- 09 ( Services

Design )Preparation Date : 31/03/04Modification Date : 31/03/05

InputsCustomer needs & expectations6 Changes in Service Environment 6 Competition Offering6 Best Practices / Benchmark Data6 Budget Allocated6 New proposals from RPMs /

RSMs / Channel Partners6 Past Performance data/Feedback6 CMVR Regulations

Design of New Service / Improvement in Existing Service ProcessTATA Motors, CVBU

31.3.2005 9.5

Inputs6 New / improved Service Process

Key Steps in 'Pilot Run of New Service'

1. Prepare set-up for new service2. Identify and schedule resources3. Training of concerned agencies e.g.

channel partner, TML, field staff, service office4. Conduct Pilot Run5. Capture and incorporate changes, if any

Outputs6 Satisfaction from the new / improved

service (proposed) 6 Improvements / modifications

suggested in the service under test

How it operates (Methods/ Practices)1. Prepare Set-up for new / improved service6 Considering the steps and guidelines for Service, decide the time and

location where the pilot run of the proposed service is to be conducte 2. Identify and schedule resources 6 Identify resources such as material, equipments and the persons

involved from both sides ( Tata Motors and Channel Partners, as appropriate). Explain the role of each person involved in the new service. 3. Training of concerned agencies e.g. channel partner, TML, field staff, service office4. Conduct Pilot Run 6 Conduct Pilot run of the service 6 Compare the observations and results against desired ones.6 Identify areas for improvements and seek suggestions

5. Capture and incorporate changes, if any 6 Based on the feedback of pilot run and suggestions received if any,

incorporate the changes in the service under question.



EfficiencyAdherence to schedule

% of processes piloted reaching intoduction Effectiveness

%

%

Sub process : Pilot Run of New ServiceSub Process Ref : CVBU-EL-09-03 (version 1.1)Process Owner : Mr. S. Y. DeshpandeEPM Linkage– CVBU-EL- 09 ( Services Design )Preparation Date : 31/03/04Modification Date : 31/03/05

Pilot Run of New ServiceTATA Motors, CVBU

31.3.2005 9.6

Key Steps in sub - process -'Introduction of New Service'

1. Assess workload & plan implementation2. Make Training Module & training for concerned agencies3. Start implementation of New Service4. Review the effectiveness for six months.5. Transfer the process to EL - 13

How it operates (Methods / Practices)1. Assess Workload & Plan implementation -6 Assess efforts for implementation and decide time table so as to plan6 Based on efforts required Service Owner decides service charges in case

of paid service considering organizational market sentiments, priorities, breadth to be covered, time to acquire resources, etc. in consultation with all stakeholders

2. Make Training Module & training for concerned agencies –6 Service Owner seeks the faculty, training module and organizes the

training (Class Room / OJT as appropriate) for the persons involved from both, the channel partners and AO / RO staff.

3. Start implementation of New Service 6 Launch New Service in the presence of all stakeholders at predetermined

location, monitor the observation as free/ paid service

4. Review the effectiveness for six months6 Seek constantly feedback either directly from customer or through Channel

Partners till the New / Improved service is stabilized.5. Transfer the process to EL – 13 (Details in Brackets indicate involvement of various agencies)


%No. of Days

Effectiveness6 DSI with respect to new service6 CSI

Index

Index

Efficiency6 New / Improved Services introduced 6 Time required to introduce new / improved

service adherence to plan

Sub process : Introduction of New Service Sub Process Ref : CVBU-EL-09-04 (version 1.1)Process Owner : Mr. S. Y. DeshpandeEPM Linkage – CVBU-EL- 09 ( Services Design )Preparation Date : 31/03/04Modification Date : 31/03/05

Introduction of New ServiceTATA Motors, CVBU

Outputs6 Addition of New / Improved

Service

Inputs6 New / improved service process

ready after pilot run6 Resources and infrastructure 6 Training module for the ersonnel6 Competent staff

31.3.2005 9.7

Sales and Operations Planning


Principal Process Owner: R K Ghosh - GM - Non Vehicular Business

Locational Process Chiefs: Locational PPC Head


CVBU-EL-10-01 Prepare Monthly/Annual Business Plan (Dom & IB) S & OP committee

CVBU-EL-10-02 Production Scheduling & Sequencing Head of APPC of Respective Plants

31.3.2005 10.1

TATA Motors, CVBU Sales and Operations Planning



New Release


Process Title-

Process Objective-

CVBU-EL-10

SALES & OPERATIONS PLANNING (S & OP)




01/06/03 0025/11/04 01

Sales and Marketing§ Budget from ABPs, Market

forecast, Requirements from LOBs & Product Managers IB§ Plant feedback

Plants§ Manufacturing strategy,

Market forecast, plant wise capacity, Vendor Capabilities§ Back log of previous month,

Priorities of SalesAvailability of Vessels for

Ø Preparation of Annual Production Plan for Vehicles and Spares including International Business

Ø Compilation of model-wise, month-wise Plan, including ExportØ Review and Finalization of plant-wise Production plan Ø Scheduling of day-wise production and dropping planØ Review of Production Booking & monthly review of Delivery performance.Ø Mid term review of sales and production plansØ Annual review of S&OP process for it's effectiveness

ü Fulfillment of Market Demand

ü Plant-wise, Model-wise

production plan for

Manufacturing

Translate Sales Requirement into Production Plan for On-time Delivery


Process Owner Mr R K Ghosh General Manager (NVB)

Modification

BES, Pune

Process Team


Daily, Monthly delivery against plan


Release of production set on Target

Delivery compliance Report


End Customer-


No.of Days

%

No.of Days

Variation in schedules on Production

Delivery Vs Plan for vehicles , parts

Delivery Vs Plan for CKD/SKD and aggregates

No

%

%

5.4, 7.2

Sales (Domestic & IB), LOBs, APC, Logistics, Institutional Sales, GMs manufacturing from plants, PMs (IB)

Manufacturing Plants , Sales


31.3.2005 10.2

TATA Motors, CVBU Sales and Operations Planning

Process Owner : R K Ghosh – GM (NVB)Process objective : Translate Sales Requirement into Production Plan for On-time Delivery

-Prepare AnnualProduction plan forVehicle & Spares(Domestic / IB) &Recon, IndAggregatesMid term review of Sales Plan

S&OP/ APC *

-Compile Plant/model/month wise demand forVehicles & Spares(including Export)

S&OP / APC

-Review / FinalizeplantwiseManufacturing Planincluding InterPlant Transfers

S & OP / APC

Day wiseProductionSchedule &Dropping Plan

Plant APPC

Daily review ofProductionBooking

Plant Mfg.

Inputs-

Sales & Marketing-Budget from ABPs-Market forecast-Requirements from LOBs & IBPlants :-Manufacturing strategy-Market ForcastPlant wise capacity-Vendor Capacities

Sales and Operations PlanningTATA Motors, CVBU

Evaluate the effectiveness & relevance of S&OP process Annually in EPM review meetings for improvement

Modify the production plan for rest of the year

Production as per schedule?

Continuewith thePlan

No

Mid term review (MTR) of Sales Planduring the year/month

Yes

Inputs-

-Back log ofprevious month-Market forecast-Plant feedback-Prorities of Sales (domestic & IB)

Output-

-Model wise daily production plan-Input for Manufacturing(CVBU-EL-11)Inputs for MaterialsPlanning - Vendor Mgmt(CVBU-EL-06)

* S & OP consists of Sales (Domestic & IB), LOBs, PMs (IB), In-charge of Auto Produn & APC of respective plants, Logistics,Institution Sales

31.3.2005 10.3

Key Steps in- 'Annual / Monthly Production Planning '

1. Derive model wise requirement2. Finalize VFJ , IB – CKD/SKD, LOB -4 requirements3. Finalize interplant aggregates requirements4. Finalize plant wise production plan5. Agreement on delivery plan6. Communicate & Monitor Plant wise performance

against production/ delivery plan

Annual/Monthly Production Planning &Delivery Performance Review TATA Motors, CVBU

Input6 Sales forecast from Marketing

(Dom & IB)6 VC wise vehicle schedules from Mktg. ( respective Sales & Mktg. to upload into

SAP)6 Plant wise capacities & constraints6 Supplier capabilities6 Finished goods stock position6 Strategic Input from CVBU Steering

Committee


Efficiency6 Preparation of plans on scheduled dates6 Preparation of delivery compliance report

No. ofdays

Effectiveness6 Actual dispatches V/S Production Plan of vehicles ,CKDs /SKDs6 %achievement of delivery target of LOB4 reqmt.6 Order wise schedule adherence for VFJ /IB6 Release order wise delivery performance for Govt. orders

%

%%%

Sub process : Annual / Monthly Production Planning & Delivery Performance Review

Sub Process Ref : CVBU-EL-10 - 01 (version 1.1) Process Owner : S& Op committee – (Heads of Vehicle

Sales ,Domestic &IB , & LOB-4 , GM s Mfg.& PPC heads )

EPM Linkage : CVBU-EL-10 ( Sales & Operations Planning)Preparation Date : 31/03/04Revision Date : 25-11-04

Outputs1. Annual / Monthly Plant wise / Model

wise production plan. 2. Delivery performance report against

agreed delivery plan (Plant APPC)

How it operates (Methods/ Practices)1. Derive model wise requirement

6 Regional Managers and Country Managers (IB) forward sales forecast to respective logistics group of marketing (domestic & IB)

2. Finalize VFJ , IB – CKDs/ SKD & LOB -4 requirements 6 Collect requirements from VFJ and IB for CKD /SKD.6 Collect plant wise requirement from Spare Parts and Industrial aggregates & Recon

3. Finalize Interplant aggregate requirements : 6 Collect Aggregate requirements of every plant from other plants. 6 Consolidate model wise total requirement of vehicle and aggregates.

4. Finalize plant wise production plan 6 Model wise sales and LOB-4 requirements are discussed in the joint meeting of

PPC (Production Planning & Control ) of all the plants and sales.6 Plant wise rolling production plan ( Vehicle + Aggregates for other plants ), and

LOB-4 requirement is finalized after taking in to consideration plant & supplier capability constraints. 5. Agreement on delivery plan

6 Agreement between Marketing and GM s Mfg Plants on delivery plan6 Agreement between Vehicle Sales Heads, LOB-4 Head on delivery plan

6. Communicate & Monitor Plant wise production plan6 Circulate finalized production plan to PPC of all Plants, Sales and Finance. 6 Review production plan V/s daily actual dispatches.6 Make midcourse changes, if necessary, in consultation with PPC of respective

plants and communicate changes to all concerned.6 Monthly review of plant delivery performance against agreed delivery plan

31.3.2005 10.4

Inputs6 Sales Plan for the Month6 Production plan as agreed by S

&Op Committee6 Feedback from materials agencies

and Factories of all plants

Key Steps in- 'Production Scheduling & Sequencing'

1 Assess sales & production plan & get VC clearance.2 Communicate production plan3 Prepare vehicle dropping sequence.4 Prepare despatch schedule for LOB-4 requirements

and other Plants. 5 Monitor progress.

Outputs6 Daily dropping sequence and

schedule as per plan.6 LOB - 4 and other plants call up

How, it operates (Methods/ Practices)1. Assess sales / production plan and get VC clearance

6 PPC of respective plant assesses and consolidate model wise requirement of Vehicles, aggregates & spare parts.

6 Marketing to raise DS/ES with ERC and get the vehicle release / VC 6 Marketing to raise schedules only after VC clearance by NPI /APL

PPC obtains VC cost from Finance.2. Communicate Production Plan

6 Inform model wise requirement of Vehicles, Aggregates required by other plants and all requirements of LOB-4 to Factory heads, vehicle despatch, Finance and materials agencies.

3. Prepare Vehicle Dropping Sequence6 Considering sales priorities decide vehicle batches and daily production sequence of Aggregates

in consultation with Factories. Communicate daily dropping sequence to all concerned.4. Prepare Dispatch Schedule for LOB -4 requirements & Other Plants

6 Make Agency / aggregate / item wise and date wise despatch plan in consultation with production and materials agencies. Communicate LOB-4 call up to all Agencies.

5.6

6

Monitor ProgressCommunicate Sales Order wise daily despatches to IBCollect daily dispatches of vehicles & spares data and compare with the plan. Revise balance schedule if necessary and communicate.

Sub process : Production Scheduling & SequencingSub Process Ref : CVBU-EL-10-02 (version 1.1)Process Owner : Head of APPC of respective Plant EPM Linkage– CVBU-EL-10 (Sales & Operations

Planning)Preparation Date : 31/03/04Revision Date : 25-11-04

Production Scheduling & SequencingTATA Motors, CVBU


Efficiency6 Release of production schedule on target date.6 Deviation wrt target date

No. ofdays

Effectiveness6 No of changes in the sequence during the month 6 Delivery Vs. plan , vehicles, parts, VFJ s ,CKDs

No

%

31.3.2005 10.5

ManufacturingTATA Motors, CVBU


Details of Modification Approved By

New Release


01/06/03 00

05/02/05 01

§ S & OP Schedule Vehicles/SKD/CKD/Spare parts§ Vendor Capacity, Quality feedback sales

orders, Dealer Balance, Incoming PPM§ ISO / TS16949, ISO14001 guidelines§ Manufacturing Process Capability§ Manpower Competencies§ Customer's expectations / complaints§ New Parts variants / New Products / New

Vehicles

Ø Material scheduling and logisticsØ Produce Vehicles/SKDs / CKDs/ Aggregates / componentsØ Delivery of Vehicle/SKD/CKD/SpareØ Analysis of customer complaintsØ Implementation of design modificationsØ Maintenance

ü Production and dispatch of Vehicles / SKDs/ CKDs/ Aggregates / components as per requirements


Process Owner A.P. Arya - President (JSR & LKO Works)

Commonising process documents across locations


BES, Pune

Process Team

Daily / Monthly adherence to schedule

Rejection / Rework / Process audit, Cpk Values,Internal PDI

Daily /Monthly Prodn Plan, Inventories, Production

Inventory Levels , ProductivityVariable conversion cost , Direct Matl Cost



Variable conversion cost

End Customer-


Percentage

Rs.

As Applicable

Nos, Rs.

Rs. / Index

Rs.S&OP, Manufacturing, Despatch, Materials, QA, PSD,APL, CPL, APPC, MaintenanceSales Head


Warranty cost , Break even point

No of Vehicles manufactured

QI, Rejection / Rework, Warranty complaints/PDI defects / COPQ

Asset Turn , Safety Index

Inventory

Rs. , Nos

No

As Applicable

%, Index

No of days /Rs.

7.5

Process Title

Process Objective

Process Identification No.(PIN) : CVBU- EL- 11

Produce and Deliver Quality Products as per S&OP Plan

MANUFACTURING


In-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure


31.3.2005 11.2

Process Owner : A P Arya President (JSR and LKO)Process objective :Produce & Deliver quality products as per S & OP plan

Disposal of scrap /waste/ Effluents

Purchase / Admin /Plant Engg.

-Deliver product toRSOs / Directdelivery to Dealers& Institutionalcustomers/Govt./Port for Export-Despatch ofcomponents toSPDs / Other plants

Dispatch

Maintain Machine &Equipments

Prodn / Maintenance

-Production Casting,Forging,Components//Aggts. and Vehicle-Monitor productivity and quality. CLIPScore & conversioncost elements, WIP

Prodn/PSD/QA

Scheduling of Material

(Refer Next page)

Prepare / Review Daily /shift wise schedule ofProduction andManpower deploymentplan

PPC / Prodn

-Derive MonthlyProduction Planand man power at shop level.-Review &reallocatemanpower

Production

-Review and acquire -Facilities-Machines,tooling &equipments-Inspection/Testingequipment-Man power APL / Manufacturing/QA

-Annualforecasting formaterial,manpower andplant capacityrequirement

APC/ SteeringCommittee

Inputs--Business

Plan-Volume

Forecast,-Production

strategy,-New Product

Variants

Inputs--Capital &

Revenue budgetapprovals

-Line Capabilities-Manpower Gaps

-Process plan-Process flow

chart and Qualitycontrol plans

-productivity andcost targets

-ImrovementInitiatives

Inputs--Monthly

Productionprogram

(S&OP)Including

requirementfrom LOB 4

-Bill ofMaterial

Inputs--Balance

Requirement wrtmthly plan.

-Line Capabilities-Attendance

data-Matl Supply

-DailyProduction Report

ProductivityTarget

Inputs--SPC/ Control plan

-CQ Audit findings-Quality feedback

(drive away chassis)-Pre Delivery Inspn

-Warrantycomplaints

-Data on Internalfailures

-SLAs & SQDCMtargets

Inputs--Sales

Order fromSHQ / Ros

-CreditAvailability on

Dealer’s A/C

Product Delivery(Refer Next Page)


31.3.2005 11.3

Scheduling of Material

Raise Pos on Vendors and STOs on Plants

Materials/MPC

Provide Monthly Vehicle Dropping Plan for Mfg units / ShopsProd Plng & Con

Release Schedules on Vendors and follow up

Matls / FLG

Receipt, Inspection, Binning, Storage of MaterialCRDO / Stores/ QA

Rejections / Scrap/ obsolete items despatch / disposal

Issue Matl / tools toLine, Despatch matl to plants and Vendors for processing

Inputs§ Production Plan for the Year/Month§ Veh. Dropping Sequence for the Month / 3-days/ day§ Approved Vendor base (Vendor - Parts - SOB)§ Daily Shortage List from stores§ Stock Condition of components§ Despatch information on aggregates

Product Delivery

Receive Vehicles / spares from Works / other RSOs

Check/ Inspect as perChassis Check Sheet and AcknowledgeDespatch

Storage andDelivery of vehicles/ Spares to Dealer / TSS / Inter RSO / RWH Transfers inter RSO transfers as advised by ROResp. RSO / RWH

PDI and Delivery of vehicle spares to Customer

Dealer / TSS

Transporter PaymentMonitor DespatchesResp Plants


Material Audit, Stock Verification and reconciliation

Vehicle / Spares Requirement from Dealers / TSS

31.3.2005 11.4

1. Pos on Vendors/ STOs on plants2. Release schedules on Vendors3. Follow up with Vendors/ plants4. Receipt, Inspection & Storage of material5. Issue / Despatch Materials6. Material Stock Reconciliation as per norms

Key Steps in-'Material Scheduling & Logistics'

Outputs6 POs on Vendors.6 Schedules on Vendors.6 Availability of material for production.

Inputs6 Production Plan for the Year/ Month6 Vehicle Dropping Sequence for the

Month / 3-days / day6 Approved Vendor base (Vendor-

Parts-SOB)6 Daily Shortage List from stores6 Stock Condition of components6 Despatch information on aggregates


Efficiency6 Average Inventory (Auto) No. of Days of

Consumption6 Non-moving Inventory Rs.6 Stock reconciliation (Gross discrepancy

value as % of stocks value) %

Effectiveness6 Chassis Line stoppage due to b/o Hours/ Month

material shortage6 Deficient vehicles due to auto %

materials - % of total vehicles6 Incoming ppm Ppm6 Premium Freight Rs.

Sub process : Material Scheduling & LogisticsProcess Ref : CVBU-EL-11-01 (version 1.1)Process Owner : Head Materials- Pune - JSR - LKO EPM Linkage – CVBU-EL-11 ( Manufacturing ) Preparation Date : 31/03/04 (updated 05/02/05)

How, it operates (Methods/ Practices)1. POs on vendors

Pos are released by respective Materials Group on vendors with respect to terms & contracts and share of business allocation based on Annual Production Plan. Aggregates like Engine, Gear Box, Axles, Cowls, Cabs etc are scheduled (thru STSA & STO’s) on respective plants

2. Release Schedules on Vendors Buyers (Respective Material Group) evaluates material requirements through MRP (on SAP) and Applicability Matrix

(Off- line) and release monthly/ / daily schedules on suppliers through system based on daily vehicle dropping plan, SPD & other plant requirements and share of business.

3. Follow up with Vendor / Plants Concerned Material Group evaluates Availability/ Requirements on daily basis and follow up with Suppliers to ensure receipts

in line with schedules and monitor transit consignments till those are received. 4. Receipt, Inspection & Storage of material

CRS/ CRDO prepares Goods Receipts ( GR ) document at materials gate in line with schedules and handover Invoice with GR sticker/ material tags to transporters/ vendors. Transporters/ vendors go through security check and deliver material to respective FLGs/stores. Stores receive material and update acknowledged quantity in the system. Material having CQ/ No Inspection status need no inspection and taken in to bin stock. Items having LL ( Lot by lot ) inspection status are checked by SQA/ VQA . SQA/ VQA updates inspection decision in the system. Accepted material is taken in to bin stock and rejected material is either sent to concerned Supplier or scrapped as per procedure. In case of exigencies, deviations are sought from QA/ ERC and material accepted (time- bound OR quantity bound)

5. Issue / Despatch of Material Depending on space availability in manufacturing line and inspection status of part-vendor, materials are delivered directly to

line. Other items received in stores on JIT basis and delivered to line as per requirements. In case of MASOP where raw material is supplied by TML to supplier, raw materials is dispatched to vendors as per requirements of respective Material group requirements through Central Dispatch Section (CDS)

6. Arrange Material Stock Verification and further reconciliation as per norms Materials audit arranges PI as per schedule at every stores and submit PI discrepancy report to materials Head. For selected

high value Class A & B items, once every quarter. For other items,once every year. For Class C items, Material verification and stock reconciliation done every three years.

Material Scheduling & LogisticsTATA Motors, CVBU

31.3.2005 11.5

Inputsw B/O materials, aggregates and

componentsIn-house materials, aggregates and componentsProduction schedule Estimate sheets/routings Support from other functionsQuality plan/work instructions/Control PlansResources, manpower, direct material, Indirect material/tools, machines, equipments and vehicles.

w

wwww

w

Key Steps in - 'Produce Vehicles/Aggregates/Components '

1. Prepare production schedule 2. Allocate manpower3. Ensure availability of material, tooling,

equipment4. Production of parts, aggregates and vehicles5. Monitoring of quality, productivity, safety and

cost

Outputsw Vehicle, aggregate, component

as per quality norms and S&OP

How, it operates (Methods/ Practices)1. Prepare production schedule 6 Based on vehicle production/dispatch schedule and spare parts call up, each

factory/shop works out Production Schedule. 2. Allocate manpower 6 Each factory/shop works out its manpower requirement on the basis of production

plan and productivity targets and redistribute manpower and communicate net shortage/excess to HR.

3. Ensure availability of materials, tooling, equipment 6 Respective factory/shop co-ordinates with concerned agencies to ensure on time

availability of material, tools, machines etc.4. Production of parts and aggregates 6 Production activities are carried out as per estimate sheets / routings.

Operatives carry out in process inspections/checks as per quality plan/ work instructions. Central QA performs audit checks to ensure that laid down system is being followed.

5. Monitoring of quality, productivity, safety and cost 6 Factory/Plant management reviews production, productivity, quality and cost on

daily/monthly basis and takes corrective action as required.

Sub process : Produce Vehicles/Aggregates/ComponentsSub Process Ref : CVBU-EL-11-02 (version 1.1)Process Owner : Factory/Divisional Head Pune - JSR - LKOEPM Linkage– CVBU-EL-11 ( Manufacturing )Preparation Date : 31/03/04 (updated 05/02/05)

Produce Vehicles/Aggregates/ComponentsTATA Motors, CVBU

Efficiencyww

Eq. Unit./ Man/ Year RatioVariable Conversion Cost / Unit Rs./ Unit

Effectivenesswwwww

w

w

w

S&OP Schedule Adherence CLIP ScoreQuality Index IndexFirst Shot OK (Aggregate/ Assy Line Level) %COPQ Rs./ UnitProcess Capability Improvement (Machining) Ppk > 1.67 for identified processes %Process Capability Improvement (Non-measurable) % Conformance > 99.73 %Process Capability Improvement(Tightening) Ppk > 1.33 %Safety index (SR & FR) Index


31.3.2005 11.6

Key Steps in - 'Vehicle, SKD/ CKD and Spares Despatch '

1. Prepare dispatch plan for rollout2. Make materials ready for dispatch3. Picking and Packing (for Spares/ CKD/ SKD)4. Document preparation for dispatch5. Dispatch

Sub process : Vehicle and Spares Despatch Sub Process Ref : CVBU-EL-11- 03(version 1.1)Process Owner :

EPM Linkage – CVBU-EL-11 ( Manufacturing )Preparation Date : 31/03/04 (updated 05/02/05)

Heads Vehicle Despatch,Exports & CKD,Auto services- Pune -JSR - LKO

Efficiency measuresw Spare Parts – Dispatch Float Days

Effectiveness measureswwwww

Total Packing Cost as % of total dispatch value %Transit Accidents/ Total Vehicles %Spare Parts-S&OP Sch adherence (%) %Customer Complaints (DAC/ SKD/ CKD/ Spares) %Vehicles/ SKD/ CKD reaching destination on time %


Inputsw

w

w

w

S & OP (Spares, SKD/ CKD, Vehicles) from SHQ/ Plant APPCChassis, SKD/ CKD, finished components and aggregatesPacking List, Packing List materials, Packing materialsApproved transporters

Outputswww

Vehicle despatchSpare parts despatch as per call upSKD/ CKD Dispatch

Vehicles, SKD/ CKD & Spares DespatchTATA Motors, CVBU

How it operates (Methods/ Practices)1. Prepare dispatch plan for rollout: 6 Respective Dispatch department coordinates with SHQ/ Spare Parts/

Other Plants and prepares dispatch plan for vehicles (model wise), SKD/ CKD/ Spares (Consignment wise) for dispatch

2. Make materials ready for dispatch: 6 VD/ Exports readies the vehicle/ Spares / SKD/ CKD for dispatch (by

providing canopy, RUPD, rust prevention treatment on vehicles, aggregates and components)

3. Picking and Packing (for Spares/ CKD/ SKD): 6 Materials to be dispatched is collected from production divisions and

brought to dispatch stores. These are packed and readied for dispatch to required destinations as per schedules from other plants and spare parts department

4. Document preparation for dispatch: 6 For vehicle dispatch, appropriate kit is added to the vehicle to be rolled

out. Invoice is prepared by VD/ Exports as per excise department requirements

5. Dispatch: As per in-built system for SOB, transporter is arranged for each vehicle OR consignment of Spares/ SKD/ CKD and handed over for dispatch to transporter

31.3.2005 11.7

Inputsw

wwwwwww

Warranty reports / field analysis from service Vehicle PDI reports Complaints through DAC/ PCR/ CIRFailed parts for analysisIn plant Dealer PDICustomer Satisfaction surveyCustomer GrievancesCustomer Interactions through meets, campaigns, visits, etc.

Key Steps in - 'Analysis Of Customer Complaints '

1. Receive complaints & failed parts2. Preliminary review by Service and

allocation to concerned agencies3. Root cause investigation and analysis4. Identification and initiation of corrective

action5. Monitoring and Review6. Issue of break point7. Documentation 8. Feedback from field

Outputsw

w

ww

w

Corrective/ Preventive Action (Modified product / processes)Break Point for introduction of modifications Investigation reports Opportunities of improvements for ERC / NPI & CSComplaint trend

How it operates (Methods/ Practices)1. Receipts of complaints & failed parts -6 Service dept. of respective Plant 1) receives on-line complaints data based on PCR & CIR and failed parts from channel partners and warranty reports,

field analysis reports, information on Customer grievances and meets from Service Head Quarter. 2) offers complaints data, reports, information to warranty committee ( representatives of Service, QA, ERC & Manufacturing ) for investigation 3) arranges display of failed parts. 6 PDI ( Pre Delivery Inspection ) defects are directly sent from Service Head Quarter to QA once a month.

2. Preliminary review by Service and allocation to concerned agencies Based on customer complaints received, the following reports are generated by Service and communicated to ERC, QA and manufacturing:6 Product Performance Reports – complaint- and cost-wise analyses for each model. Issues are codified complaint code wise. These are based on 24/ 36-

month product performance6 Fortnightly Report – detailing Top 20 complaints in each model in the last 6 months6 Service Meetings – with Production, ERC, QA / CQ /SQIG6 Committee ascertains the cause of failure and assigns responsibilities to respective production centres

3. Root cause investigation & analysis6 Production centres perform root cause analyses with help of suppliers (bought out) and QA and Metallurgy (In-house) using methods like DOE technique

and Ishikawa Diagrams. Findings are communicated to the concerned agencies for corrective actions6 Based on investigation, Committee defines liability of failed Part and communicate findings to respective Channel Partner / RSO. PDI defects are

forwarded to respective factory for necessary action. SQA / VQA/ CQ (Warranty cell) returns failed parts to Supplier. 4-6. Initiation of corrective actions, Monitoring and Review, and Issue of Breakpoint –6 QA raises Design Modification Request ( DMR ) and forward to Standards I at Pune or Technical Services at JSR & LKO. They forward DMR to all

concerned Agencies within and across plants and collect their comments. Based on concurrence the DMR is forwarded to ERC / NPI for approval. 6 ERC studies the request and incorporate necessary changes in the drawing and communicate changes through Design Modification List (DML) to all the

concerned.6 Respective factory takes corrective actions on PDI defects and inform QA / CQ.6 QA / CQ takes up with Suppliers to improve their process / materials quality as per report. 6 Planning study process and identify layout, logistics, Machines / Equipments problems and take corrective actions6 QA / CQ tracks progress on actions identified till it is implemented. Control parameters are revisited after tryout.

7. Documentation – each of these corrective actions are circulated to relevant agencies – manufacturing, sales, service 8. Feedback from field on these corrective actions are sought for further review

Sub process : Analysis Of Customer Complaints Sub Process Ref : CVBU-EL-11- 04 (version 1.1)Process Owner :

EPM Linkage – CVBU-EL-11 ( Manufacturing )Preparation Date : 31/03/04 (updated 05/02/05)

Head (QA,CQ,Customer Support) Pune - JSR - LKO

Efficiencyw Cycle time for complaint resolution

(VOR, Design, Technical) Days

Effectiveness wwwww

Reduction in PDI complaints %Reduction in field failure complaints / expenses %CSI %Quality Index IndexWarranty Expenses Rs. / Veh


Analysis Of Customer ComplaintsTATA Motors, CVBU

31.3.2005 11.8

Key Steps in - 'Implementation of Design Modifications'

1. Communicate design modifications2. Planning of design change3. Implement design change4. Update & release BOM based on

MEPA / MBPA

How it operates (Methods/ Practices)1. Communicate design modifications -

6 Standards I ( Pune ) / Technical Services ( JSR & LKO ) communicates design modifications to all concerned Agencies. All modifications are coordinated by Standards I ( Pune ) / Technical Services ( JSR & LKO ). Coordinating Agency raise EPA (Effective Point Advice ) and communicates details of modification and role of each Agency ( Planning, ADD, Production, QA, Materials, PE etc.), based on DML received from ERC.

2. Planning of design change –6 Coordinating Agency 1) prepares implementation schedule in consultation with all concerned agencies, 2)

obtains feedback from respective Agency on stocks of present parts, lead time of development of new parts / tooling etc. and monitors progress, 3) obtains samples. Concerned departments take necessary action in line with EPA and communicate status to coordinator.

3. Implement design change –6 Coordinator 1) arranges tryout with the help of concerned shops and obtain QA’s acceptance. 2) decides

implementation date after consulting all the agencies and with a view to minimize inventory of obsolete parts. If necessary implementation is done gradually, in phases, to minimize wastage.

4. Update & release BOM based on break point -6 Concerned shop Implements design modification on specified date. QA issues MEPA for Components &

Aggregates and MBPA for Chassis. Based on break point details coordinating Agency incorporates changes in the BOM and release it for production.

Outputsw EPA (effective point for

Components & Aggregatesw MBPA ( Modification Break Point

Advice ) for Chassis/ MEPA (Modification Effective Point Advice) for Components & Aggregates

w Revised BOM in Denis and SAP

advise )

Efficiencyw Number of DMLs /EPAs outstanding No.

Age-wisew Age of outstanding DMLs / EPAs No. of

DMLs / EPAs

Effectiveness

w % EPAs implemented vis-à-vis Plan for three categories A, B and C %


Sub process : Implementation of Design Modifications

Sub Process Ref : CVBU-EL-11-05 (version 1.1)Process Owner : Head (TS / STDs I)

Pune -JSR - LKO EPM Linkage – CVBU-EL-11 ( Manufacturing )Preparation Date : 31/03/04 (updated 05/02/05)

Inputs ww

DML from ERC, APL/ CPLTechnical part list on-lineDrawings released by ERC/ APL/ CPL

Implementation of Design ModificationsTATA Motors, CVBU

31.3.2005 11.9

Key Steps in -'Maintenance '

1. Derive monthly schedule from annual PM Plan

2. Carry out PM as per schedule and checklist

3. Plan and deploy corrective actions based on PM Feedback

Outputsw Machine Healthw Availability of machines /

equipment for production

Sub process : MaintenanceSub Process Ref : CVBU-EL-11- 06

(version 1.1)Process Owner : Respective CX/

Maintenance InchargesEPM Linkage – CVBU-EL-11

( Manufacturing )Preparation Date : 31/03/04

(updated 05/02/05)

How it operates (Methods/ Practices)1 Derive monthly schedule from annual PM Plan6 Annual PM Plan is prepared for all equipment and machines by respective divisional/ factory

maintenance departments based on their criticality and availability in the year6 Beginning each month, specific date wise PM schedule is developed for machines and

equipment in consultation with production centres.6 Respective Maintenance departments perform the following on an annual basis:6 Spares planning – based on manufacturers’ catalogue, machine inspection report and

breakdown analysis report6 Procurement of spares – POs are raised for spares based on feedback generated through PM

Checks. 6 Monthly PM schedule is intimated to respective production/ process owner for release of

machines/equipment 2. Carry out PM as per checklist6 PM checklist is revisited and revised on need basis by Maintenance groups6 Maintenance plans and allocates required manpower for PM of each machine/ equipment on

daily basis6 PM group carries out PM and the PM report is vetted by respective production centres

3. Plan and deploy corrective actions based on PM Feedback

Efficiencyw Adherence to PM Plan %w Maintenance Cost Rs.

Effectiveness w % Downtime %w MTBF/ MTTR Minutes


Inputs

w Manufacturer’s Catalogue

w Machine Inspection report

w Preventive Maintenance Plan

w Breakdown Analysis Report

w Feedback from QA / Production

on machine capability ( Cpk).

MaintenanceTATA Motors, CVBU

31.3.2005 11.10



CVBU-EL-12-01 Set Sales Targets and Prepare Sales Plan Sales and Product Management Heads

Sales Planning

EPM Process No:

Mr Shyam Mani - VP (Sales & Marketing) , Mr P G Shankar - Head CVBU International Business

CVBU-EL-12-02 Manage Off- Take / Shipment Targets

Manage Pipeline and Retail SaleCVBU-EL-12-03 Area Managers / Country Managers

CVBU-EL-12-04 Maintain Customer Database DAM(Dealer Account Manager) / Country Manager

CVBU-EL- 12

Sales and Product Management Heads

TATA Motors, CVBU

31.3.2005 12.1

Sales Planning

TATA Motors, CVBU


Process Title- Sales Planning Process Owner

Process Objective- Strengthen and Support Sales and Distribution



ww

Annual Business Plan(Dom / IB)Last Year Performance

w RSO, Dealer Stocks & Requirements (Dom);IB, Distributor Stocks & Requirements (IB)

w Monthly Production Planw Sales Processes Feedbackw Activity Plan w Finance / Incentive / Sales Promotion

Schemes

Ø Analysis of Business Plan( Dom / IB)Ø Preparation of Channel Partner Level Monthly Sales PlanØ Communicating model-wise requirement to Plant for Manufacturing Ø Managing Market Share Targets and Off take / Shipment and retail sales

targetsØ Managing RSO / IB / CP level Stocks and Receivables Ø Managing customer pipeline using Sales ProcessesØ Reviewing of Sales Performance, Analysis of Gaps and planning actions for

next month

ü Market Requirement to S & OP ü Sales achieved vis-à-vis the

targets

Mr Shyam Mani VP (Sales & Marketing)Mr P G Shankar Head (CVBU IB)

Daily Pipeline C0-C1-C2-C3Monthly Review of Conversion Rate C0 to C1 to C2 to C3

Nos.

Nos.

LOB Heads, SHQ, ROs, AOs, Dealer Development Cell and Channel Partners Channel Partners and Customers of TATA Commercial Vehicles Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship5.4, 7.2

Divisions Involved -End Customer- Core Values Embedded- ISO /TS16949(2002) Clause Ref.

Monthly Pipeline C0-C1-C2-C3

Annual Sales volume

Nos.

Nos.


Details of Modification Approved ByDate of Modfn. Modification No.




Process Identification No.(PIN) : CVBU- EL- 12 Higher Level Linkage-

31.3.2005 12.2

Sales Planning

w Market Requirement to Sales & Operation planning

w Plant Level Manufacturing Plans

Process Owner : Mr Shyam Mani – VP (Sales & Marketing), Mr P G Shankar – Head (CVBU-IB)Process objective : Strengthen and Support Sales and Distribution.

-Seek and analyze Inputsfrom AnnualBusiness Plan

Sales ( Dom/IB ) / Product Mgrs-PM/ Country Mgrs.-CM

-Prepare MonthlySales Plan -Dealer-wiseAllocation ( n+2 basis for IB) - Raise EVRs (for IB)-CommunicateModel-wiserequirement toPlants

Sales / PM / CM

Prepare Dealer / Distributor (IB) Level Model- wise off-Take / Shipment and Retail Sales Plan

Sales / PM /CM

-Manage MarketShare Targets,-RSO/ IB Stocks,off-take/ shipmentand Receivables

Regional-Country-Area Offices/Logistics-Dom / Oprns & Shipping-IB

-Manage customer pipeline to achieve sales Targets C0-C1-C2-C3-Provide TrainingSupport to Channel Partners-Manage stocksat Channel Partners end

RM/AM/CM/ SPCP team

Review SalesPerformance-Weekly, Monthly-Gap Analysis - Feedback on OFIs based on pipeline analysis –corrective actions for the next month AM/DAM/DSM

Inputs-

w Annual Business Planw CP requirementw Production Plan

Inputs-

w Plant Production Reports,w RSO / IB Stock Reports w Channel Partner Stock

reports

Inputs-

w Day-wise Customer Pipeline

w Market coverage planw Control Measures

Inputs-

w Individual SE’s / CP Pipelines,

w Activity Plans,w Incentive /w Promotionalw Schemes, etc

Sales PlanningTATA Motors, CVBU

31.3.2005 12.3

Inputsw Market share targets ( Dom / IB)w Sales Forecast (Industry / Country ) w Past Sales Data of CVBUw Competitor Sales Data

Key Steps in sub- process :'Set Sales Targets and Prepare Sales Plan’

1. Gather data on Product Sale 2. Seek Forecasting data3. Set Targets

Outputsw Region-Country-Area-wise Off-

take / Shipment Planw Channel Partners-wise,

segmentwise allocation of Shipment / Retail Targets

How it operates (Methods/ Practices)1. Gather data on Product Sale (SHQ (Dom / IB) / RO / AO)

6Data on region wise off take and retail sale (model wise) is compiled by RM/ AMs and sent to SHQ 6Competition data is provided by MR through FIBRES and other internal sources for Dom. While Country Managers provide the same for their respective countries through their internal sources2. Seek Forecasting data (Product Managers) 6Product managers/ SPCP team gathers information in terms of Sales trend, segment wise industry / country volume projections (Source: MR for Domestic, AM/RM/Journals / Sales Process data/ IB_CVBU strategy document for IB)3. Set Targets (Product Managers) 6Based on above data SHQ (Sales / PM / CM ) work out overall sales plan and set Region wise targets in consultation with Regional Managers


Sub process : Set Sales Targets and Prepare Sales Plan

Sub Process Ref : CVBU-EL-12-01(version 1.1) Process Owner : Sales and Product Management

HeadsEPM Linkage : CVBU-EL- 12 ( Sales Planning )Frequency : Yearly / Half yearlyPreparation Date : 31/03/04Modification Date : 31/03/05

Set Sales Targets and Prepare Sales Plan TATA Motors, CVBU

Efficiency

Effectiveness

w

ww

Adherence to schedule of Target setting andreview R-Y-G

Off-take /Shipment Target Vs. Achievement Nos.Retail Sale Target Vs. Achievement Nos.


31.3.2005 12.4

Inputsw Channel Partner past data,w Plant Capacities & capabilitiesw Region-Country-Area wise off- take

/ shipment targets w RSO / IB Stock

Key Steps in sub- process :'Manage Off-take/ Shipment Targets'

1. Get Requirement from Channel Partners 2. Set off-take/ shipment targets and sign off contract with CPs3. Get month-wise indent / EVRs from CPs, 4. Manage off-take / shipment & delivery to CPs

Outputsw Off-take Sale to Channel Partnersw Region-wise RSO Despatch Plan

for Plants

How it operates (Methods/ Practices)1. Get requirement from Channel Partners (RM/ Country Managers / AM)– 6 Area and Account Managers seek product segment level requirement from Channel Partners on Annual as well

as monthly basis ( monthly for deomestic, n+2 basis for IB) which is then communicated to SHQ (Dom / IB) 6 Product Managers and Sales Heads review the requirement w.r.t. Business Plan which include Production

Planned at various plant and new products planned for launched. Feasibility of product requirement is checked with Plant NPI and communicated back to the channel partners.

2. Set off-take/ shipment targets and sign off contract with CPs (Sales/ PM/CM/CP)- 6 After reviewing the adequacy and discussion with CPs , SHQ allots region-wise product segment wise off-take targets to all RMs / CMs, cascaded down upto Channel Partner level by RM / CM . Review with CPs by RM and with RM by SHQ is carried out periodically. Channel Partner sign off annual requirement with SHQ (Dom / IB). 3. Get month-wise indent/ EVR from CPs (RMs/ CMs/ AMs)6 AM / DAM discuss with Channel Partners and seek firm indent / EVRs for the next month (n+2 basis for IB). RM

consolidate this firm off take based on RSO Stock position and communicate to SHQ (Dom). EVRs (IB) are sent to IB-Operations by Country Managers.

4. Manage Off-take / shipment & delivery to CP’s (RM/CM/AM/Logisitics)-6 SHQ (Dom/ IB) collates vehicles requirements from CPs including Institutional Sales, Exports, etc.

Production Plan and Dispatch Plan is finalized in Sales and Operations Planning (S&OP) meeting. 6 Sales Logistics / IB-Operations communicates Plants, the day-wise dispatches to be made to RSO and Dealers .

AO/ IB advices RSO/ Shipyard to deliver the vehicles as per agreed indent from respective RSO to the dealers/ shipment with the help of Account Managers. CP-wise off-take/ shipment position is reviewed periodically at SHQ and corrective actions are evolved from both sides such as Sales Promotion, boosting production levels etc. (Details in Brackets indicate involvement of various agencies)

Sub process : Manage Off-take / Shipment Targets

Sub Process Ref : CVBU-EL-12-02(version 1.1) Process Owner : Sales and Product Management

Heads EPM Linkage : CVBU-EL- 12 ( Sales Planning)Frequency : Yearly / MonthlyPreparation Date : 31/03/04Modification Date : 31/03/05

Manage Off-take / Shipment Targets TATA Motors, CVBU

Efficiency

Effectiveness

w Channel Partner-wise month-wise off-take / shipment Nos.

w Vehicle Inventory No. of Days

w Off-take / Shipment - Target vs.Achievement Nos.


31.3.2005 12.5

Inputsw Requirement from the Channel

Partnersw Stock Status ( Dom / IB )w Region-Country-area wise off-take /

shipment targetsw Customer pipe line at the end of the

month (Product segment level )

Key Steps in sub- process'Manage Pipeline and Retail Sale'

1. Sales Planning at the start of the month2. Prepare designed pipeline, Market Coverage Plan and key activity plan3. Monitor customer pipe line 4. Periodic Review and Corrective Actions

How it operates (Methods/ Practices)-1. Conduct Sales Planning meeting after Retail Closing (AM/ DSM) -6 AM and Sales Manager of the channel partner conduct meeting of all SEs in which previous month performance is

reviewed in terms of control measures, market coverage sheet is filtered and live customers are carried forward. 2. Prepare designed pipeline , Market Coverage Plan and Key Activity Plan -6 SE’s prepare Customer Pipeline based on retail targets given to them by DSM. This consists of 4 customer categories viz.

C0,C1,C2 and C3.C0- Customers who are willing to buy TATA vehicle, customers having competition vehicles , lost customers, Owners of TATA vehicles who have not purchased TATA vehicle in last 3 years C1- Customers who have taken quotation from TML CV dealersC2- Customers who have booked the vehicle by giving token payment or LOI or Letter from financierC3- Customers who have bought TATA vehicle. He remains as C3 for 3 years from the date of delivery( average period for re-buying )

6 Retail sale is executed through Dealers/ TSS (for Dom.) and Distributors (for IB) 6 Through Customer pipeline, SE finds out no. of customers he need to contact based on his conversion factors and plans

the visit accordingly. He prepares list of customers and visit plan which is known as ‘Market Coverage Plan’3. Monitor pipe line (SE / DSM/ AM / SP team (IB) ) - 6 DSM compiles and integrates SE / dealership daily pipeline and communicate to AM / CM which is further cascaded to

AO / RO/ Country level4. Review Activity Plan and incorporate Corrective Actions (DSM/ AM) - 6 Depending upon the pipe line status, AM / DSM review and modify Activity Plan and plan corrective actions for current as

well as next month(Details in Brackets indicate involvement of various agencies)

Sub Process : Manage Pipeline and Retail Sale Sub Process Ref : CVBU-EL-12-03(version 1.1) Process Owner : Area / Country Managers EPM Linkage : CVBU-EL- 12 ( Sales Planning) Frequency : Daily / MonthlyPreparation Date : 31/03/04Modification Date : 31/03/05

Manage Pipeline and Retail Sale TATA Motors, CVBU

Efficiency

Effectiveness

w Conversion Factor of SEs % w Loss of Customers %

w Retail Sale Planned Vs. Achieved Nos.w Customer Coverage per unit target Nos.


Outputsw Achievement of retail salew Optimized stock levelsw Channel Partner’s order / EVRs

on TML

31.3.2005 12.6

Inputsw Requirement of customer related

data (Market Coverage Sheets)w Marketing Research and Sales

Planning w Invoices for vehiclesw Referrals from existing customers w Data from Financiers, RTO, Demo,

Publications, etc.

Key Steps in sub- process 'Maintain Customer Database'

1. Seek Customer Information 2. Record Customer Information & Requirement in Customer Information Form 3. Compile and Update Data Base4. Maintain Data Base

How it operates (Methods/ Practices)-1. Seek Customer Information (SE) -

6 Sales Executives of dealership/distributorship goes to customer as per his Market Coverage Plan and collects the customer information

6 Customer Information is also sought during demonstration of TML new products2. Record Customer Information and Requirement in Customer Information Form ( F001) (SE)-

6 Sales Executive fills customer information in the prescribed form – F001 (Customer Information Sheet ).

6 This form ( F001) primarily consists of key information related to customer such as Name, address, Birthday, Phone, Income level, preferred financier, Fleet Size and Application, etc.

3. Compile and Update Data Base (SE/ DSM) - 6 Hard copies of all F001 forms are compiled at Dealership level and also updated in customer

module of the web-based CRM ( Customer Relationship Management) package. 4. Maintain and Use Customer Data Base (SE/ DSM/ DAM)

6 All SEs of dealership use the CDB while preparing costumer pipeline and Market Coverage Plan

6 CDB available in the system is used by SHQ for multi-purpose, e.g. sending mailer, new product information to customers, Market Research etc.


Sub process : Maintain Customer Database Sub Process Ref : CVBU-EL-12-04(version 1.1) Process Owner : Dealer Account/Country

ManagerEPM Linkage – CVBU-EL- 12 ( Sales Planning)Frequency : Yearly / Monthly Preparation Date : 31/03/04Modification Date : 31/03/05

Maintain Customer Database TATA Motors, CVBU

Efficiency

Effectiveness

w CDB ( Customer Data Base ) size / SE Nos.w On- time updation of F001’s uploaded

in CRM Nos.


Outputsw Updated Customer Database file

with Dealershipw CDB in Web-based CRM system

31.3.2005 12.7

TATA Motors, CVBU After Sales Service


CVBU-EL-13-01 RMs/ RSMs/ RPMs/ Channel Partners

CVBU-EL-13-02 Mr. S. Y. Deshpande

CVBU-EL-13-03

CVBU-EL-13-04

Deliver Post- Sales Services

Warranty & Free Service Handling

Spare Parts Management

Complaint Management

RMs/ RSMs/ RPMs/ Channel Partners

Mr. S. Y. Deshpande


Locational Process Chiefs :

After Sales Service

Mr S M Sharma - Head (Customer Support)

31.3.2005 13.1


Process Revision / Modification HistoryDetails of Modification Approved By

New Release



01/06/03 00

31/03/05 01 Modification through process review


BES, Pune

Process Team

Response Time, Cycle time of Warranty Claim Settlement/ Bill Settlement

Days.

Index, %


Process Title-

Process Objective-

CVBU-EL-13

After Sales Service

Providing Efficient and Cost Effective After Sales Services


Process Owner Mr S M Sharma Head (Customer Support)


§ Divisional BSC§ Service Processes and Service Standards § CSI (Customer Satisfaction Index) / DSI

(Dealer Satisfaction Index) Findings§ Channel Partner / Customer feedback § Competition and Benchmark Data§ Segment wise customer requirement

Ø Set / Review Service Standards Ø Work out segment and location-wise Channel Partner requirement Ø Communicating Service Delivery Processes and Standards to Channel

PartnersØ Providing Training SupportØ Deliver Services through Channel PartnersØ Process Bills/ ClaimsØ Collection of feedback and resolve complaintsØ Conduct Audits and Review performanceØ Give feed back to Product/ Services Design

ü Efficient Delivery of Services ü Feedback to Product / Service Design

Percentage / No of days

Customer Complaints Nos.


End Customer- Core Values Embedded-

ISO /TS16949(2002) Clause Ref. 7.5.1.8

Service HQ, Regional Offices, NVB HQ

Channel Partners and Customers of TATA Commercial Vehicles Integrity, Customer Focus, Passion For Engineering and Corporate Citizenship

% Adherence to set Standards. Average time for ComplaintResolution / Claim Settlement / Bill Settlement / Repairs / Service

CSI and DSI

After Sales ServiceTATA Motors, CVBU

31.3.2005 13.2

Process Owner : Mr S M Sharma – Head (Customer Support)Process objective : Provide Efficient and Cost Effective After Sales services

After Sales Service

-Continue withthe Process-Coductperiodic auditChannelPartners-AnalyseCustomer &Channel Partnerfeedback

Service HQ /NVB HQ

-Feedback to Product /Services Design forImprovement

Need tochangeservice

standards?

-SettleChannelPartner’s Billsand Claims-AggregateServiceDeliveryFeedbackfrom all regionscentrally

Service HQ /NVB HQ

-ReviewChannelPartnerperformancevis-à-vis

targets-AnalyseChannelPartnerfeedback and take correctiveactionROs

-ProvideService to theCustomer (Free / paid /Warranty)-Collect & send customerfeedback RO-Attendcustomercomplaints

ChannelPartner

Yes

Communication/ Training toChannelPartners andtheiremployeesregardingdelivery ofservices

ROs

-Assessmentof Resourcesrequired w.r.t.region /demographiccoveragedesired

Service HQ /NVB HQ /ROs

-Set / ReviewKPIs / Standardsfor Service

-CommunicateNew process andnew / revisedservice standards

Service HQ/ NVB HQ

Inputs--Divisional BSC,-Segmentwise Customer requirements.-CSI / DSI Surveys,-Feedback from Customer /Channel Partner-New services & Service Standards,-Competition and Benchmark Data

No

TATA Motors, CVBU

31.3.2005 13.3

Deliver Post - Sales Services

Inputsw Policy on warranty, free service &

repairsw Norms/ guidelines on infrastructure

trained manpowerw Guidelines to channel partnersw Service interval info specific to each

modelw Customer requirements.

Key Steps in sub- process - 'Deliver Post–Sales Services'

1. Provide Free / Warranty services 2. Provide Paid Services & Repairs3. Gather Customer feedback4. Input on product performance &

complaints to plant

Outputsw Repair / rectification of complaints

on customer vehiclesw Maintenance service to customer

vehiclesw Data on product performance &

failures.


Efficiencyw Repeat complaints %w Vehicle Turnaround time Hours

Effectivenessw Improvement in CSI/ DSI %w Increase in Service Market share %

Sub process : Deliver Post-Sales Services Sub Process Ref : CVBU-EL-13-01

(version 1.1)Process Owner : North – Mr. S Panigrahy,

South – Mr. K C Sen East – Mr. P B Patro,

West – Mr. N J Shah EPM Linkage : CVBU-EL-13 ( After Sales

Services )Preparation Date : 31/03/04Modification Date : 31/03/05

TATA Motors, CVBU


1. Provide Free / Warranty Services – ( RMs / RSMs / RPMs / Channel Partners)

6 Customer gets Free Service Coupons / Warranty Cards at the time of purchase of the vehicle

including Terms and Conditions for the same.

6 Channel Partners provide Free Service to the customers of commercial vehicles on receipt of Free

Service coupons. Parts if found failed under warranty, during warranty period is also replaced.

Complaints beyond warranty, scheduled services are attended on charge basis.

6 Provide 24-hour toll-free assistance through CAC ( Customer Assistance Centre).

2. Provide Paid Services & Repairs- ( RMs / RSMs / RPMs / Channel Partners)

6 Following Services are provided to customers on Payment basis

# Annual Maintenance Contract

# All types of repairs on Tata vehicles

# Fitment of RECON Engines

3. Gather Customer feedback (Channel Partner / ASO) :-

6 Channel Partner / Field Staff seek Customer feedback for transactional as well as and overall service

experience

4. Input on product performance & complaints to plant

6 Channel partners provide feedback on product performance and complaints


31.3.2005 13.4

Key Steps in sub-process- 'Warranty & Free Service Handling'

1. Set Guidelines on Warranty / Free Service2. Warranty Handling & delivery of FS by

Channel Partners3. Scrutinize Warranty Claims & FS Bills4. Failed parts managements system5. Conducting weekly warranty meetings

Outputsw Acceptance / rejection of Warranty

claimw Replacement of failed partsw Settlement of warranty claims & free

service bills Improvement in customer satisfaction

w PPRs to plant for product improvements

w Improvement in dealer satisfaction

Warranty & Free Service Handling


Efficiencyw Average Warranty claim settlement No. of Daysw time Average FS bill settlement time No. of Days

Effectiveness

w DSI - Satisfaction with warranty & FS bill Metric DSI scoresettlement

Sub process : Warranty & free service handlingSub Process Ref : CVBU-EL-13-02 (version 1.1)Process Owner : Mr S Y DeshpandeEPM Linkage : CVBU-EL- 13 ( After Sales Services ) Preparation Date : 31/03/04Modification Date : 31/03/05

How it operates (Methods/ Practices)1. Set Guidelines on Warranty / Free Service – (CS)

6 Customer Support set guidelines on ‘Warranty Terms and conditions’ for all products. These guidelines are communicated to all Channel Partners through “Warranty Policy & Procedures Manual”, service circulars and warranty wall charts

2. Warranty Handling & delivery of FS by Channel Partners – 6 Channel Partners handle warranty on customer’s vehicle as per “Warranty Policy and Procedures

Manual” & guidelines issued from time to time.6 Channel Partners verify warranty period , raise claim through VCM, accept or reject the claim and send

to Central Warranty Cell at Thane, for further action3. Scrutinize Warranty Claims & FS Bills

6 Central Warranty Cell scrutinize the claims uploaded through VCM and credit note is generated for accepted claims .6 ASO conducts warranty audits as per prevailing guidelines.

4. Failed Parts management system –6 Channel partners pack failed parts and handover to inbound logistic partner for dispatch to respective

plant Service Office5. Conduct weekly warranty meeting (RA/ MFM/ HVAL/ HVTL)

6 Failed parts are presented in Weekly Warranty Committee meetings for ratifications of claims accepted by channel partner and further analysis is carried out by the concerned CFT.


TATA Motors, CVBU

Inputsw Tata Motors guidelines for Freew Service / Warrantyw Warranty claims & free service

bills through VCM

31.3.2005 13.5

Spare Parts Management

Key Steps in sub- process - 'Spare Parts Management'

1. Develop Market & Product Management2. Procure Parts3. Fulfill Customer Orders 4. Training of CP personnel

Sub process : Spare Parts Management Sub Process Ref : CVBU-EL-13-03 (version 1.1)Process Owner : RMs / RSMs / RPMs / Channel Partners EPM Linkage – CVBU-EL- 13 ( After Sales Services ) Preparation Date : 31/03/04Modification Date : 31/03/05

Efficiencyw % execution of orders in time %w Inventory (No. of days Sales) No. of Daysw No. of raids on spurious parts dealers/

Manufacturers Nos.

Effectivenessw % increase in Market share %w CSI on spares availability %

How it operates (Methods/ Practices)1. Develop market and Product Management (PHQ) 6 Parts HQ carry out Sales and Marketing of Parts using Market Development, Channel Partner Management and Sales Planning processes,

sub- processes and transactional process2. Procure Parts (PHQ Procurement Group) 6 Parts are procured as per demand identified by various product groups 6 In-house parts are ordered on respective plants while Bought parts are procured through

Ancillary Suppliers3. Fulfill customer orders (RWH) 6 Parts are stored at various warehouses and distributed to various destinations such as

Dealers and Distributors. Inventories are controlled as per guidelines. Customer complaints, if any, are handled by field staff and/or forwarded to PHQ for further action

4. Training of CP personnel (RPMs) 6 RPMs identify training needs of CP personnel and provide relevant training inputs either

on site or at training location (Details in Brackets indicate involvement of various agencies)

TATA Motors, CVBU


Outputsw Network Reach w Enhanced Sales and Market

Shares of Tata Partsw Control on spurious parts w Competent staff at CP

Inputsw Plant / Supplier capacityw Market survey datew Targets for Parts, Business

and marketing

31.3.2005 13.6

Complaint Management

Key Steps in sub-process- 'Complaint Management'

1. Receive customer complaints 2. Register, acknowledge, assign for

resolution & close complaints with customer3. Analyze of product & non- product related

complaints4. Identify scope for Improvement & review

complaint management

Sub process : Complaint Management Sub Process Ref : CVBU-EL-13-04 (version 1.1)Process Owner : Mr S Y DeshpandeEPM Linkage - CVBU-EL- 13

( After Sales Services ) Preparation Date : 31/03/04Modification Date : 31/03/05

Efficiencyw Complaint acknowledgment time

within 24 Hrs % w Average complaint Resolution time No. of Days

Effectivenessw CSI – Product parameters Index

Performance Measure UnitHow it operates (Methods/ Practices)1. Receive Customer Complaints (CAC)

6 Customer assistance Center receives product / non product related complaints through varied access mechanism, such as through MS- mail / letters, verbal, telephone, etc. Touch points for receiving complaints are Dealer / TASS, AO, RO, HOs, SHQ, Mfg plants etc.

2. Register, acknowledge, assign for resolution & close complaints with customer (CAC)6 All complaints are registered in complaint management system on VCM, acknowledged in 24 hrs and

assigned to relevant agency for resolution.6 Feedback given to customer on closure.6 Complaints not resolved in target time are escalated to departmental heads.

3. Analysis of product and non- product related complaints (CAC)6 CAC analyse all complaints every month.6 MIS on resolution time v/s targets is given to all departmental heads.6 Product related issues are sent to Mfg/ QA/ ERC for product improvement/ corrective action &

feedback received through MBPA, ICMs & letters.6 Non product related issues are sent to dept heads & followed up for corrective action.6 Feedback on improvements conveyed to customers through mass communication such as Service

Information, OK Tata, Channel Chat, etc.4. Identify scope for improvement and review complaint management

6 Complaint management process is reviewed annually in the light of inputs from L&L approaches, CSI study feedback and TBEM OFIs


TATA Motors, CVBU

Inputsw Customer Complaints

Outputsw Resolution of Complaintsw Improvements identified for

implementationw Improvement in CSI/ DSI

31.3.2005 13.7

TATA Motors, CVBU Facilities and Environment Management



Locational Planning, Construction & Environment HeadsLocational Process Chiefs:

Mr Z Sait - GM (Technical Services)Principal Process Owner:

CVBU-EL-14-01

CVBU-EL-14-02

CVBU-EL-14-03

CVBU-EL-14-04

CVBU-EL-14-05

Organize and Upgrade Facilities

Asset Management

Create Infrastructure

Operate & Maintain Infrastructure

Environment Management

Planning Head

Planning Head

Locational Construction &Plant Engineering Heads

Locational Head of Environment Dept./Respective Process Owner



31.3.2005 14.1

Process Title-

Process Objective-

OUTPUT

§ Manufacturing Strategy§ Volume Forecast § Process Flows§ Quality and Environment Policy§ ISO 14001 & ISO / TS 16949 requirements§ Statutory Rules / Regulations§ New Technologies

Ø Review of existing facilities /Infrastructure/Tooling Ø Assess additional Requirement, 0btain Budget ApprovalsØ Design of New Facilities and ToolingØ Obtain Government Approval /Permission / LicenseØ Manufacturing / Procurement of Tooling and Equipments Ø Construction and Installation of Facilities & EquipmentsØ Operation and Maintenance of Facilities / Tooling /equipmentsØ Monitor Environment related parameters Ø Get Facilities and Process auditedØ Disposal of unserviable Facilities / Tooling /equipments


Process Identification No. (PIN) CVBU- EL- 14

Process Owner


Mr Z Sait GM (Technical Services)

Provide infrastructure facilities & Tooling to Plants and ensure compliance with Environment Policy and Statutory Requirement

In-Process/ efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of Measure

Adherence to Schedule

Value of Quality parameters

Equipment Uptime and Environment Control Parameters

Stage wise Actual Vs Budgeted Costs Divisions Involved -

End Customer-



Percentage

%

Rs

No of Facilities / Toolings provided

Value of Quality parameters for end products / effluent

Compliance with safety Statutory and Environmental Norms, SLA compliance

Cost of Toolings / Facilities / pm index

Projects, Construction, Plant Engineering, Production / Tool Engineering

Manufacturing and Community


6.3


Date of Modfn.

01/06/0331/03/05

Modification No

0001


New Release



BES, PuneProcess Team

Approved By

No

%

Rs


INPUT KEY STEPS

Various Various

[ Facilities / Tooling for Production / Services

[ Statutory Compliance[ Environment Protection


31.3.2005 14.2

Process Owner : Mr Z Sait GM (Technical Services)Process objective : Provide infra-structural facilities and tooling to

Plants and ensure compliance with statutory requirements and Environmental Policy

-Review existing infrastructure / facilities/Tooling and-Assess additional requirement Project / Planning

-study available options for optimum choice as per “Input”-Prepare budgetaryestimate-Obtain necessarystatutory approval

Const./Plant Engg./ES&C/Safety/Env.Mgt.

Prepare detaileddesign and budgetaryEstimateSubmit proposal for approval

Const./Plant Engg./ES&C

Budgetaryapproval

Inputs/Background--Manufacturing strategy-Processes-Volume forecast-Quality and Environmental Policy-Rules and Regulations-New Technologies-QMS / EMS-OHS

Re-allocate resource &continue

-Construction of buildings, infra-structure-Procurement and Installation of Plant / machinery / equipments

Const./Plant Engg./ES&C

Obtain post-commissioningapprovals if requiredSafety/ Env. Mgt

-Review and acquire resource for O & M of facilities

Const./Plant Eng./ES&C /Resp. Process owner

O&M ofFacilities

Const./PlantEngg./ES&C/Resp. Process Owner

TOOLING

Tool Design

Prodn. Engg. / ToolEngg./ CEM/ AutoTools

Manufacturing /Procurement &Commissioning Prodn.Engg./ToolEngg./Plng/CEM

Trouble-shooting/Maintenance /ToolsregrindingProdn.Engg./ToolEngg./RespectiveProcess Owner

Equipmentdue for

replacement?

Continue

Disposal of the unserviceable tooling/facility as per EMS norms Projects / Planning

Modify control procedures/ upgrade facilitiesConst./Plant Engg./ES&C/Respective Process Owner

No

No

No

NoYesYes

Additionalfacilities

required?

ESR Processing

FACILITIES

TOOLING

1

2

1

FACILITIES

2

Monitor equipment performance as per QMS/EMS normsConst./Plant Engg./ES&C/ RespectiveProcess Owner

Operationalgaps ?*

Yes Yes

* Revealed during performance monitoring, audits,mock drills etc.


31.3.2005 14.3

Inputsw Indents from Planning dept. / other

dept. for new facilities or up gradation of facilities.

w New Product Introduction schedulew Capacity enhancement plan

Key Steps in - 'Organize and Upgrade Facilities'

1. Compile requirements and seek capital budget approval

2. Procure Bought out Facilities3. Procurement of tooling.4. Install, Commission and Capitalize Facilities

How it operates (Methods/ Practices)1. Compile requirements and seek capital budget approval -6 APL / Central Planning collect, collate and prioritise requirements from Planners / other dept.

They compile requirements and forward to Corporate Planning for obtaining capital budget approval. Capital budgets are approved by Board of Directors. APL / Central Planning communicate budget codes to respective Planners / dept. Capital items procurement is approved by Corporate Planning, ED and Plant Head as per delegated powers.

2. Procure bought out facilities –6 Planners 1) contact manufacturers, seek quotations, selects machine / equipments and raise indents on

Purchase dept. for procurement of required facilities of Tooling. 2) prepare Executive Sanction Request ( ESR ), obtains price approval and handover to Purchase Agency. 3) Plan consultant’s service where necessary. 4) Purchase dept. negotiates with Supplier, finalize terms, obtain approval & raise Purchase Order. 5) Stores receives Bought out equipments and arranges to unload and unpack at required location.

3. Procurement of Tooling–6 Planners 1) raise indents on PE / CTR for in house manufacturing. 2) PE / CTR designs, manufacturers

and proves Tooling. 3) Planners coordinate with respective shop for tryout and handover tooling to indenter.

4. Install, Commission and Capitalize Facilities–6 Planners 1) prepare layout of production shop 2) raise contracts depending upon the need of installation

of facilities. 3) Construction and Plant Engineering arrange foundation work, electrical, plumbing and pneumatic work 4) Machine / Equipment and Tooling are installed , commissioned by Supplier or by Planning. These are tested and certified by Planning. A plant code is allotted for each facility and information and is given to Finance for capitalizing through “ Asset

Sub process : Organize and Upgrade Facilities Sub Process Ref : CVBU-EL-14 - 01 (version 1.0)Process Owner : Z Sait GM ( Tech. Services)Linkage– CVBU-EL-14 ( Facilities &

Environment Managements )Preparation Date : 31/03/04Modification Date : 31/03/05


Efficiency6 Adherence to schedule %

Effectiveness6 Budget V/s actual cost %

TATA Motors, CVBUOrganize and Upgrade Facilities

(Plant, Machines, Tooling, Equipments, Vehicles etc.)

Outputsw Availability of facilities ( Plant,

Machines, Equipments,Tooling, Vehicles etc.).

w Up gradation of Tooling and Facilities

31.3.2005 14.4

Inputsw Asset data basew Asset shifting advisesw Asset disposal proposalsw Manufacturer’s

Guidelines

Key Steps in-'Asset Management'

1. Verification of assets 2. Maintain Assets3. Disposal of Assets

Outputsw Updated Asset data basew Asset verification reportw Disposal of obsolete / surplus

Assets

How it operates (Methods/ Practices)1. Verification of Assets –6 On the basis of available asset list , physical verification of assets are carried out at as per

schedule through agencies like factories , MPL&P , Finance etc.2. Maintain assets–6 Planning dept. of respective division is responsible for 1) annual statutory certification

wherever applicable 2) annual verification of assets & submit report 3) arrange to provide usage confirmation to Finance wherever applicable 4) upkeep of assets 5) maintain assets as per maintenance plan and Manufacturer’s guidelines through concerned maintenance dept.(Refer Sub-process CVBU-EL-11-06) 6) documentation & record change of assets which are shifted from one place to another.7) identify obsolete / non economical assets & recommend for disposal

3. Disposal of assets –6 Custodian / User forwards list of obsolete/ surplus assets to planning. Planning examines

if assets can be put to alternate use. After confirming that assets are obsolete / surplus, Central Planning prepare asset disposal proposal & forward to Finance with back up. Obtain corporate approval for disposal of asset through Finance. Arrange auction of an asset through auctioning agency through MPL &P. After auction is completed , asset database is updated by Finance

Sub process : Asset ManagementSub Process Ref : CVBU-EL-14- 02 (version 1.0)Process Owner : Z Sait GM ( Tech. Services)Linkage – CVBU-EL-14 ( Facilities &

Environment Management )Preparation Date : 31/03/04Modification Date : 31/03/05

Efficiency6 Adherence to asset verification schedule %

Effectiveness6 Physical assets V/s Assets in Master %


TATA Motors, CVBU Asset Management

31.3.2005 14.5

Key Steps in- 'Create Infrastructure'

1. Need identification & requirement finalization

2. Designing of infrastructure 3. Execute work through contracts4. Seek NOC and handover

How it operates (Methods/ Practices)1. Need identification & requirement finalization -

6 Construction & Plant Engineering review infrastructure requirement based on user feedback, new project requirements and capacity enhancement plans of NPI/Central planning. They workout Capital budget requirement and seek capital budget approval for optimum option through central planning ( JSR & LKO ) / APL ( Pune ). Based on approved budget, Construction & Plant Engineering decide the project plans.

2. Designing of infrastructure 6 Construction & Plant Engineering prepare design of infrastructure and seek approval of concerned

indenting divisions and government agencies. Help of external consultants is taken wherever required.

3. Execute work through contracts –6 For approved designs, capital budget codes are obtained for various items in the project. In case of

repairs and modifications, approval of ED / Plant Head is taken by concerned indenters as per delegated powers. Annual rate contracts are finalized with contractors for repetitive items. Capital items are selected by giving due weightage to environmental norms, through ESR process. Infrastructure work such as construction of road, buildings, electrical installations, plumbing etc. is executed through contractor.

4. Seek NOC and handover –6 Construction & Plant Engineering obtains NOC approvals from concerned local / state government

agencies (Municipal Corporation, MIDC, Electricity Board, Factory Inspectorate, etc). After obtaining approval, facilities are handed over to concerned indenters for use. Wherever required help of concerned department is taken for coordination with government agencies.

Sub process : Create Infrastructure Sub Process Ref : CVBU-EL-14- 03 (version 1.0)Process Owner :

EPM Linkage – CVBU-EL-14 ( Facilities & Environ. Management )Preparation Date : 31/03/04Modification Date : 31/03/05


Inputsw Indent from User divisions for up

gradation of infrastructure.w New projects from Planning / NPIw Capacity enhancement planw Statutory, environmental and

Safety requirements.

Efficiency6 Adherence to schedule %

Effectiveness6 Variance w.r.t. budget %6 No of key deliverables achieved %


TATA Motors, CVBUCreate Infrastructure

(Bldg., Water Supply, Sanitation, Electricity, Telephone Network)

Outputsw New Infrastructure/

Improvement in infrastructure

31.3.2005 14.6

InputsOperatew Operational requirements of Usersw Regulatory requirements ( Pollution

Control, Safety norms, Electricity Rules etc. )

Maintenance w Break down reports or User complaintsw Preventive maintenance requirementsw Regulatory requirements

Key Steps in – 'Operate & Maintain infrastructure'

1. Assess / review resource requirements2. Off-loading or on-loading decision3. Organize resources4. Operate and maintain facilities5. Audit by Government agencies

How it operates (Methods/ Practices)6 Construction maintains Plant, Roads and immovable assets and Plant Engineering operate and maintains

other infrastructure like Water, Electric, Air supply, generator house, Telephones, oil reclamation etc.1. Assess / review resource requirements -

Construction and Plant Engineering take annual review, estimate volume of annual activities, estimate resource requirements like men, money and equipments and assess skill requirements.

2. Off-loading or on-loading decision -6 Construction and Plant Engineering 1) Assess in-house capability and knowledge / skill availability

2) identify vendors & get quotations 3) compare in-house operational / maintenance cost vs outsourcing cost 4)Take off-loading or on-loading decision based on optimum cost.

3. Organize resources– 6 1) obtain capital / revenue budget approval and reallocate 2) in case of outsourcing raise contracts on

prospective contractors based on their past performance 3) raise indent on Purchase dept. for material procurement.

4. Operate and maintain facilities -6 1) Prepare shift schedule 2) provide services to users as per schedule 3) attend customer complaints 4) prepare

preventive maintenance plan 5) Inventory Management.5. Audit by Government agencies –6 1) Organize audit of government agencies 2) Get infrastructure audited from Government agencies as per

statutory norms 3) Get licenses renewed before expiry

Sub process : Operate & Maintain infrastructure

Sub Process Ref : CVBU-EL-14- 04 (version 1.0)Process Owner :

EPM Linkage – CVBU-EL-14 ( Facilities & Environment Management )

Preparation Date : 31/03/04Modification Date : 31/03/05


Efficiency6 Uptime No of hours6 Zero accidents No of accidents

Effectiveness6 No. of Non Conformity Reports No. of NCRs

(NCRs) raised in external Audits6 Renewal of licenses before expiry No of licenses

renewed beyond expiry


Outputs

w Uninterrupted service to offices /

plants

w Government approvals

w Customer’s satisfaction

TATA Motors, CVBU Operate & Maintain infrastructure

31.3.2005 14.7

Key Steps in- 'Environment Management'

1. Assess the significant environmental aspects of products and activities

2. Set ‘Control Processes’ and ‘Objectives & Targets’

3. Deploy the process and implement ‘Action Plans’ to achieve ‘Objectives & Targets’

4. Review processes for improvements / and conduct internal / external audits

Outputsw Improvements in environmental

performance (e.g.: reduction inpollution; e.g.: reduction in natural resource consumption; e.g.: elimination of hazardous material etc.)

w Compliance to environmental requirements as per statutory norms

How it operates (Methods/ Practices)[Cross Ref.: EMS Manual at respective locations]1. Assess the ‘significant’ environmental aspects of products and activities as per established EMS procedures-

6 All Process Owners identify the ‘significant’ environmental aspects of products and activities with the help of ERC centrally & Environment Group at respective Works locations.

2. Define Operational Controls, Emergency Action Plans and set ‘Objectives and Targets’ 6 Operational Control Procedures and Emergency Action Plans are established and deployed. Process

requirements are assessed in line with volume and quality requirements. Action Plans are set to achieve environmental ‘Objectives & Targets’ after ensuring availability of resources

3. System Monitoring–6 System performance measures are identified, periodically monitored, reported and analysed for

feedback and corrective actions. 6 Environment Group at respective Works locations coordinates conduct of internal external audits as per

pre-defined schedule. Corrective and preventive actions are taken by concerned Process Owner and shared

4. Review processes for improvements–6 The established EMS is reviewed periodically by Plant Heads at all Works locations to provide direction

and resources as necessary for ‘continual improvement’ of the EMS. 6 Manuals / procedures / work instructions are reviewed and updated in line with changes in statutory

requirements and other inputs and the changes are communicated to all concerned.

Sub process : Environment Management Sub Process Ref : CVBU-EL-14 - 05 Process Owner : Loc. Head of Env. Dept. Operational Owner : Respective Process OwnersEPM Linkage– CVBU-EL-14 ( Facilities &

Environment Management )Preparation Date : 31/ 03/04Revision Date : 31/03/ 05

Inputsw Quality & Environmental Policyw Rules & Regulationsw Plant level waste disposal guidelinesw ISO:14001w New developments

Effectiveness6 Environmental measurements within No.

applicable statutory norms6 No. of Non Conformity Reports (NCRs) No. of NCRs raised in external EMS Audits

Efficiency6 Improvement over previous years

‘environmental performance’


TATA Motors, CVBU Environment Management

31.3.2005 14.8



Principal Process Owner :


CVBU-EL-15-01

Succession Planning

Mr M. B. Paralkar, Mr. N. K. Dutt,Mr. J. Khursigara, Mr. Mayukh Maiti

CVBU-EL-15-02 Mr M B Paralkar and locational IR heads

CVBU-EL-15-03

CVBU-EL-15-04

CVBU-EL-15-05

CVBU-EL-15-06

Develop & Manage H R Strategies

Manage Industrial Relations

Manage Family Size

Learning and Development

Performance Management System

Mr. Mayukh Maiti

Mr.N K Dutt and locational training/MPD heads

CVBU-EL-15-07

CVBU-EL-15-08

Manage Employee Welfare

Employee and Organisational Survey

Mr M B Paralkar and locational HR heads

Mr P P Kadle - ED (Finance and Corporate Affairs)

Mr M. B. Paralkar, Mr. Mayukh Maiti

Mr. S. V. Raje, Mr. D. Sengupta,Mr. L. Samanta, Mr. D. Deshpande

Mr. Mayukh Maiti

TATA Motors, CVBU Human Resource Management

31.3.2005 15.1

Process Definition Sheet


31.3.2005 15.2

Unit of Measure Output Measure / End Measure Unit of Measure


BES, Pune

Process Team

On-time ServicesFulfillment of HR demands

Man-days Lost, Absenteeism

Index, %

Budget Vs. Actual Employee Cost

ISO / TS 16949 Reference-

Divisions Involved -End Customer- Core Values Embedded-

Rs

No/percentage

Employee Satisfaction Index


Attrition Rate, Safety Index

Value Added per unit Wage Bill

Corporate HR and Locational HR, Productivity Services All CVBU Employees , Functional Heads

6.2

% / IndexRatio

Adherence to PlanAdherence to Plan


Process Title-

Process Objective-

CVBU-EL-15


Source and enhance Human Capital, Attract and retain talent, Create and maintain culture of High Performance, Improve Quality of Life of employees


Process Owner Mr. P. P. Kadle (ED, Finance & Corporate Affairs)


Ø Revisit HR Policies, Set Goals, Develop Initiatives

and assign responsibilities

Ø Acquire and allocate Resources

Ø Manage Business Unit wise Corporate HR and

Plant HR Services

Ø Performance Review

Ø Annual Review and Budgeting for the Next Year

§ CVBU Strategy

§ Business Plan

§ Industry Environment

§ Statutory/ Legal Requirement

§ GEO- HR Guidelines

§ Skill-gap Analysis

§ Feedback from Surveys, Communication sessions,

Appeals, Hotline and interaction with Unions

§ Feedback from Partners (Educational Institutions,

Faculty Members, Trainers, etc.) Third Party Survey

Findings

§ Tata Group Guidelines

[ Competent, motivated and satisfied

employees in required strength

[ Culture of High Performance

Budget Proposal

In-Process / Efficiency Measure

31/3/05

01/06/03

01

00 New Release

Details of ModificationModn No. Modified by Approved By


Date of Modfn.

Process Owner : Mr P P Kadle ED (Fin & Corp Affairs)Process objective : Source and enhance Human Capital.

Attract and retain talent,Create and maintain culture of High Performance, Improve Quality of Life of employee.

Outputs--Motivated &

competent workforce as per requirement

-ESI and Drivers ofSatisfaction/

Dissatisfaction

BudgetProposal

Periodic Review ofperformance and reallocateResource

Head - Corp. HR

Manage HR /IR Services at resp. plants

w Manage Family Size (Recruitment & Placement, Opt-sizing and Separations)

w Productivity Services - Manpower Planning, job Evaluation, Productivity Measurement through PSD

w Manage Industrial Relationsw Manage safetyw Employee Training and Developmentw Manage Employee Welfare Services (Transport,

Canteen, Housing, Medical, CumminityCentres etc)

w Performance Mgt(PMS) *Talent/PotentialManagement, Compensation Management

w Manage Employee DatabaseConduct OHS

Resp Plant HR

Manage Corporate HR services-

w HR Service for Corporate offices,Regional & Area offices (similar to that for the Plants)

w Compensation Management for TM andEG grade officers of all the locationsGuidelines/mandate to Loc HR forCompensation of S & below Grades

w Asses Work level of Sr. Officerw Organization Developmentw Special training programs for TM andw EG Grades of all the location

Head Corp.HR

-Acquire andallocateResources

Head-Corporate HR

-Review andFinalise HRPolicies, SetTargets

-DevelopInitiatives andAssignResponsibilities

HR Council

Annual Review andResource BudgetPreparation

HR Council

Continue withProcess

Inputs--CVBU Strategy -Business PlanBudget Approval -Statutoryrequirements -Tata GroupGudelines-Industry Environment-OHS feedback-Third party survey

findings


31.3.2005 15.3

Key Steps in- 'Develop & manage HR Strategies'

1. Revisit HR Vision & Mission2. Strategic Analysis3. Develop Long term and Short term Plan.4. Develop action plans and BSCs and

seek budget approvals5. Implement & Review HR plans and Policies

Outputsw HR Vision & Missionw HR strategies and policiesw CVBU, HR BSCw Plant HR BSCw HR Initiatives

How it operates (Methods/ Practices)1. At the beginning of every year HR steering Committee revisits HR vision &

Mission and redefines, if necessary, to align it with CVBU & PCBU2. Inputs are analyzed to ascertain SWOTs and resource adequacy3. HR steering Committee / Council develops Short term and long term HR Plans

and Policies to support CVBU’s business Plan.4. Corp and Location HR Steering committees develop BSCs. Identify initiatives and

assign responsibility. Location HR and Corporate HR review resource requirement and seek budget approvals

5. Respective location HR heads and HR Initiative owners implement HR Plans and policies. Implementation of HR Plans and polices is reviewed through SQDCM review, HR BSC reviews and CVBU BSC reviews.

Inputsw HR vision, mission,w Tata Motors long term and short term w Business plan & Objectives.w Industry climatew Statutory/ legal requirements.w Group HR directivesw Employee feedback through surveys

Internal Customer’s expectations and feed back

w Current HR capabilities


Efficiency6 Adherence to time frame %

Effectiveness6 Achievement of HR objectives. %

Sub process : Develop & manage HR strategies

Sub Process Ref : CVBU-EL-15- 01(version 1.1) Process Owner : Mr M. B. Paralkar, Mr. N. K.

Dutt, Mr. J. Khursigara, Mr. Mayukh Maiti

EPM Linkage : CVBU-EL-15 (Human Resource Management)

Preparation Date : 31/01/04 Modification Date : 31/01/05

TATA Motors, CVBU Develop & Manage HR Strategies

31.3.2005 15.4

Key steps in –'Manage Industrial Relations'

1. Create structure for managing IR2. Collective bargaining and good relationship with

union.3. Produce career growth opportunities4. Foster co-operation and manage employee

welfare

Outputsw Better understanding between

Management, Union & employees.

w Disciplined work environment

Sub process : Manage Industrial Relations Sub Process Ref : CVBU-EL-15- 02 (version 1.1) Process Owner : Mr M B Paralkar and locational IR headsEPM Linkage– CVBU-EL-15 (Human Resource Management)Preparation Date : 31/03/04Modification Date : 31/01/05

Efficiencyw Adherence to wage settlement plan % adherencew Adherence to meeting schedule &

resolution of problems

Effectivenessw Adherence to IR issues resolved against target % adherence w compliance (Factory Acts & Labor Laws) % compliancew Man days lost due to IR problems Nos.


Inputsw HR policies HR Strategyw Model standing orderw Workmen related actsw Union

How it works.(Support Processes, Procedures& Methods)1. IR is managed through structure of Plant IRC / JDC , divisional IRC,

Grievances committee and HR personnel acting as contact point for each division.

2. Nurture healthy relations by regular meetings and collective bargaining with union. Resolve the issues raised by bargainable employees or union as per schedule.

3. Create various structures for career growth of bargainable employees such as SVCVP, Bargainable to S scheme, Master craftsman / Mechatronics scheme, Linkage of quality contribution to salary etc.

4. Encourage bargainable employees to participate in SDTs/ SGAs and take the team leadership positions fostering co-operation. Collectively find and improve work environment and conditions. Provide guidance to motivate and improve bargainable employee morale.

TATA Motors, CVBU Manage Industrial Relations

31.3.2005 15.5

Inputsw HR Plansw Sales / production plan and

productivity targetsw New project requirementw Job Profilesw Current manpower

Key steps in-'Manage Family Size'

1. Review / Assess manpower requirement and arrive at net shortage / excesses( Gross / function / Department)

2. Redistribution of manpower3. Manage additional requirement and

surpluses

Sub process : Manage Family Size Sub Process Ref : CVBU-EL-15-03 (version 1.1) Process Owner : Mr M. B. Paralkar,

Mr. Mayukh MaitiEPM Linkage – CVBU-EL-15 (Human

Resource Management)Preparation Date : 31/03/04Modification Date : 31/01/05

Efficiency6 Budget Vs. actual employee cost Rs6 Cost and cycle time of recruitment Months

Effectiveness6 Overall productivity Value added / 6 Recruitment from premium unit wage bill,

institutes % recruitment


Outputsw Competent employees in required

strength.w Work reorganisation proposalsw Offloading proposals

How it operates (Methods/ Practices) 1. Manpower requirement of various functions / departments is reviewed every

year based on sales / production plan, productivity targets and new technology introduction plan. Explorer opportunities for offloading. Derive shortages / excesses and work reorganisation.

2. Manpower deployment to needy areas to bridge, the gap between manpower available and required, identify the persons for deployment on the basis of suitability of new jobs. Arrange training/retraining through HR (training) as per requirement.

3. Manage additional requirement through i) Contract / Offloading ii) Recruitment of temporaries iii) Cadre recruitment iv) External recruitment

3a. Launch early separation schemes for downsizing as per need.

TATA Motors, CVBU Manage Family Size

31.3.2005 15.6

Inputsw CIRO analysis, CVBU strategic

objectives, HR planw Training Effectiveness Initiatives

analysis

Key Steps in-'Learning and development'

1. Identify training needs 2. Design training plan3. Design / modify training programs 4. Delivery of training programs 5. Evaluation of the programs

Outputsw Fulfillment of identified training

needs w Trained employees

How it operates (Methods/ Practices)1. Training needs are identified by top management and survey is conducted at the

divisional level to collect individual needs from various divisions.2. Training plan is designed, convenient schedules for training are decided and annual

training calendar is prepared.3. Training and MPD analyses the training requirement received and plan training

programs. Training programs are designed in consultation with appropriate agencies.

4. In house programs are planned and calendar is circulated to all the divisions for sending ominations. Training is imparted through internal faculty as well as by external experts. Employees are also nominated for training programs, seminars organised by outside institute.

5. Effectiveness of the training is measured as a reaction of training through CIRO I for all training programs and after 3 months for key programs.

Sub process : Learning and development

Sub Process Ref : CVBU-EL-15- 04(Version 1.1)

Process Owner : Mr.N K Dutt and locational training/MPD heads

EPM Linkage – CVBU-EL-15 (Human Resource Management)



Efficiencyw Training mandays / employee / year Nos.

Effectivenessw CIRO I. Scorew CIRO II .

TATA Motors, CVBU Learning and Development

31.3.2005 15.7

Key Steps in-'Performance management system'

1. Set the Major performance areas and Targets at the individual level and identify the development needs.

2. Conduct Mid year review 3. Conduct Final review at end of the year.4. Arrive at overall performance/potential rating

and carry out normalisation.5. Decide on rewards and compensation

How it operates (Methods/ Practices)1. Decide the Major performance areas and their linkage with the higher level BSC / objectives for each EG/M/S employees at

the beginning of the financial yearii) Assign weight age factors/difficulty levels to all MPAsiii) Set the metric and stretch targets w.r.t. objectivesiv) Identify training and development needsv) Fill up the standard PMS form in consultation with the superior

1a. I) Compare the GAP between targets and actual performance at the end of the 6 months by discussion between employee and superiorii) Analyses the GAPs in expected performanceiii) Arrange resources if requirediv) Provide performance feedback

2. Carry out mid course corrections if necessary after discussion between employee and superior. Review the performance and take corrective actions for improvement

3. Carry out performance appraisal of individual employee by his superior in second half of the financial year and conduct review by respective divisional heads.

4. I) Arrive at overall performance rating, carry out norm alisation.ii) Identify consistent high performers as inputs to various processes like ‘Talent Mgmt. Process’ and for premium training programs.iii) Deselect the consistent low performers

5. Decide rewards / compensation depending upon the performance rating, grade and overall performance of the company.

Sub process : Performance management system

Sub Process Ref : CVBU-EL-15- 05 (version 1.1)

Process Owner : Mr M B Paralkar and locational HR heads

EPM Linkage – CVBU-EL-15 (Human Resource Management)


Inputsw BU BSC/Plant BSC/Div. BSC/

CX/Dept BSC as applicable to an employee

w Reward / Compensation Policiesw Competency Maps and job profile

Outputsw Identification of training and

development needsw High performance culture and

motivated employeesw Career planning and succession

planning

Efficiencyw Adherence to PMS schedule % adherence


Effectivenessw Goodness of fit Degree of fit

TATA Motors, CVBU Performance Management System

31.3.2005 15.8

Key steps in -'Succession Planning'

1. Identify positions for succession planning.2. Identify competencies required for the

successors.3. Identify / Review probable candidates4. Develop successors and monitor readiness.

How it works.(Support Processes, Procedures& Methods)1. Senior executive positions which require successors are identified. 2. Competencies for the successors are identified through work level

study and discussions with concerned executive or his superior.3. Potential candidates are identified by taking inputs from PMS, TWL

& Talent Management followed by collecting two names of successors from top 100 high performers.

4. Performance of successors are monitored through PMS and rating is given as ‘At par’ or ‘ Below level’. suitable development plan is applied depending upon the rating in both cases.

4a. Pen portrait matching is carried out and readiness / migration paths are tracked through colour coding system.Best Fit candidate is selected as successor.

Outputsw Identified successors for

key positions.

Sub process : Succession Planning Sub Process Ref : CVBU-EL-15- 06 (version 1.1) Process Owner : Mr. Mayukh MaitiEPM Linkage – CVBU-EL-15 (Human


Inputsw PMS, TWL, Talent

management analysis

Performance Measure

Effectivenessw EG positions mapped % positions mappedw Identified successors

taking key positions Nos.

Efficiencyw positions with identified successors. Nos.

Unit

TATA Motors, CVBU Succession Planning

31.3.2005 15.9

Key Steps in-'Manage employee welfare'

1. Identify welfare service requirements.2. Design welfare services.3. Provide welfare services4. Collect feedback analyse and improve

How it operates (Methods/ Practices)1. Welfare requirements are identified by corporate and locational HR based on needs

expressed by union / employees, geographical location, category of employees / gender and statutory requirements.

2. Services are designed so as to provide services at minimum possible cost , wherever required employee / union views are considered. E.g. Bus routes, location of recreation centers.

3. Services are provided through locational administration department.Following services are provided : Transport facility, interest free festival loans, crèche, maternity leave, housing loans, study leave, public holidays, health care facility, recreation centers, accommodation, schools for employee wards conservation services etc.

4. Employee feedback is collected through various surveys and interactions. Service providers feedback is also collected through interactions. Actions are taken for improvement.

Inputsw HR policiesw Regulatory norms w Expressed and implied needs of

employees requirements.w Budget

Efficiencyw Budgeted vs. actual expenses. Rs.


Effectivenessw Improvement in employee Survey

satisfaction. score

Outputsw Welfare servicesw Identified Successors for key

positions.

Sub process : Manage Employee welfare Sub Process Ref : CVBU - EL - 15 - 07 (version 1.1) Process Owner : Mr. S. V. Raje, Mr. D. Sengupta,

Mr. L. Samanta, Mr. D. DeshpandeEPM Linkage – CVBU-EL-15 (Human

Resource Management)Preparation Date : 31/03/04

TATA Motors, CVBU Manage Employee Welfare

31.3.2005 15.10

Key Steps in-'Employee and organisational survey'

1. Shortlist issues impacting employee satisfaction2. Improve questionnaire 3. Administer questionnaire 4. Analyse employee category-wise responses 5. Communicate results to management and at all

locations.6. Develop action plans to drive improvements

based on feedback

How it operates (Methods/ Practices)1. Draft questionnaire designed by capturing employee feedback regarding issues

concerning employees at all levels.2. Improve the questionnaire based on the feedback and finalize the questionnaire.

Develop questionnaires as per language convenience for all the three category of employees.

3. Administer the questionnaire as per survey execution plan at all plants / non-plant locations

4. Collate and analyses categoriwise response. Derive important attributes of employee satisfaction.

5. Share results with Steering committee, functional heads and further cascade down through interactive communication sessions.

6. Design action plan to improve important parameters.

Sub process : Employee and organisational survey

Sub Process Ref : CVBU-EL-15-08 (version 1.1) Process Owner : Mr. Mayukh MaitiEPM Linkage– CVBU-EL-15 (Human


Efficiencyw Employee and organizational survey

execution and coverage plan % Adherence


Effectivenessw Issues addressed through the

action plan %

Inputsw HR Policies w Employee feedbacksw New strategic initiatives

Outputsw Employee satisfaction index.w ST and LT action plans

TATA Motors, CVBU Employee and organisational survey

31.3.2005 15.11





CVBU-EL-16-01

Manage Information Services

CIO supported by TTL Project Heads

CVBU-EL-16-02 CIO supported by TTL Project Heads

CVBU-EL-16-03

CVBU-EL-16-04

CVBU-EL-16-05

CVBU-EL-16-06

Information Resource Management

Manage Support System

Manage System Security

Manage Information Storage & Retrieval

Manage Facilities & Network Operations



CVBU-EL-16-07

CVBU-EL-16-08

Manage Information Audit

Knowledge Management




Functional Heads/ Process Owners

Mr Probir Mitra GM (Chief Information Officer)

TATA Motors, CVBU Information and Knowledge Management

31.3.2005 16.1



Unit of Measure Output Measure / End Measure Unit of MeasureTime to Develop System

System up time and response time

SLA's between TTL and Users



Modified by


Process Title-

Process Objective-

CVBU- EL- 16


Systematize Data collection , analysis and reporting of data, Systimatic Sharing of Knowledge


Process Owner Mr Probir Mitra GM (Chief Information Officer)

Ø Ascertain Information needsØ Establish Data SourcesØ Feasibility Study for IT SupportØ Procurement of required Hard ware/ Software through TTLØ Development/ customization of software Ø Testing and User trainingØ Implementation and maintenance of systemØ Periodic review and Up gradation of hardware/

Network/software /Applications support Ø Create knowledge repositories, encourage sharing & learning

§ Business Strategy & Key Initiatives

§ Business Thrust areas

§ Business Transaction Processes

§ Key Performance Measures and Indicators

§ Key control measures

§ Statutory /Business Requirements

IT support Infrastructure

§ Focus areas for knowledge management

ü Predefined user deliverables

ü Information for decision support.

ü Data warehouse

Achieved & Backed up data

ü Knowledge repositories for knowledge

sharing


End Customer-


ISO / TS16949(2002) Clause Ref. 8.4

TTL Cost Rs. Crs.

Process review and Improvement / Modification History-

OUTPUTKEY STEPSINPUT

In-Process/ Efficiency MeasureDays

Percentage

Index

Divisions using Legacy/SAP-ERP and TTL

Functional/ Divisional Heads

Integrity, Customer focus, Passion for Engineering

Net Work/ Server Up time

Customer Satisfaction surveys by TTL

Percentage

Index

31.3.2005 16.2

Define Information and knowledgeRequirements in terms of contents and Periodicity

Business Process Owner

Identify Data/Information /KnowledgeSources,storage andretrieval needs

Process Owner

Establish Rapoand channel

Process Owner

Study Feasibilityof meeting User/Auditrequirementsthrough existingcomputerisedsystem (SAP/Legacy/ VCM/DENIS/MAPS etc.)

CIO

Develop /customizeapplicationsoftware / Develop IT tenabledrepositories etcand test toconfirm that it meetsrequirement

TTL & USER

ReviewHardware /softwarerequirements

CIO

Inputs -- Information onKPM’s of CVBUPlanning /Forecasting/ DecisionMaking, monitoring &controlling processes(Output, variations,trend / comparisons /bench Marks etc)EmployeesVendors, channelPartners andInvestors/ Financiers- StatutoryRequirementFocus areas forKnowledge Management

Seek budgetapproval and

Procure/ UpgradeHard wares

software

CIO

Inputs -Requirementfor newcomputerisedsystem- 3 yrs ItStrategy ofCVBU

PerformanceOK?

System Audit

Internal Audit

New / Up -gradation of HardWare / Software

required?

ExternalSource

Cost - Benefitanalysisfavorable

Revisit concernedprocesses/ procedures

and redefine ifnecessary

Process Owner

Train and motivateUsers and

Implement system

Process Owner / CIO

Monitor andreview systemperformance

Process Owner & CIO

- UserFeedback

Develop manual/PC based system.

Process Owner

Continue

Inputs -- Transaction/data Volume- No of Uses- User Locations- New systemrequirements

No

Yes

Yes

No

Yes

No

Yes

NoSys

tem

Re

qu

ire

me

nt


31.3.2005 16.3

Key Steps in-'Information Resource Management'

1. Derive requirements from business strategies (IT Roadmap)

2. Define Enterprise System Architectures3. Plan and forecast information technologies/

methodologies required4. Establish enterprise data standards5. Establish quality standards and controls

Outputsw Enterprise system architecturew Enterprise data standardsw Enterprise quality standardsw IT Roadmapw Investment proposal (Capex)

Sub process : Information Resource Management Sub Process Ref: CVBU-EL-16-01 (version 1.1) Process Owner : CIO supported by TTL Project

HeadsEPM Linkage – CVBU-EL-16( Information & Knowledge Management)Preparation Date : 31/12/04Modification Date : 31/12/05

Inputsw Business strategies & Key initiativesw Knowledge of Business Processesw Recommendations (by TTL) from IT

perspectivew User Requirements & Justificationsw Statutory requirementsw Tata code of conductw Previous audit recommendations

Benchmarks


Efficiency

w

w

Adherence to Schedule for key projects

Adherence to Budgets for key projects

Effectiveness

%

%

How it operates (Methods/ Practices)1. Derive requirements from business strategies

Understand the business processesRequirement identification and analysisConsolidate and formulate IT Roadmap

2.Define enterprise systems architectureTake a stock of existing resources and IT trendsDefine the hardware / software requirements

3.Plan and forecast information technologies / methodologiesDecide the different possible IT tools for delivering the desired data and

informationScan the technological developmentsPrepare Investment Proposal/s (Capital Expenditure – Capex)

4. Establish enterprise data standardsServer operating system ( Unix / Linux …)Databases (Oracle, SQL Server …)Networking (fast Ethernet,FDDI / Gigabit …)Desktop (Windows XP / 2000 / NT …)Exchange Server (2003)Virus control (Mc Affee / Norton )

5. Establish quality standards and controls Software development standards (SDLC Processes as per ISO, CMMI…..)Information Security PolicyHardware standards as per the Application / Project Req’s

TATA Motors, CVBU Information Resource Management

31.3.2005 16.4

Efficiencyw Availability of System and Servicesw Stakeholders perception of IT Servicesw Throughput and Response time

Effectivenessw Decrease in cost of operationw Compliance with legislations

Outputsw ROIw Risk Managemenntw Enhanced reputation due to

certificationsw Stakeholders Trustw Automationw Enterprize architecturew Roles and responsibility defined

Sub process : IT Governance Sub Process Ref : CVBU-EL-16-01 (version 1.1) Process Owner : CIO supported by TTL Project

HeadsEPM Linkage – CVBU-EL-16( Information &

Knowledge Management)Preparation Date : 31/12/04Modification Date : 31/12/05


How it operates (Methods/ Practices)1.Be Driven by Stakeholder value

6 Identify the Stakeholders and understand their expectation6 Benchmark with industry

2. Adopt an IT Governance Focus6 Implement COBIT and obtain BS 7799 certification

3. Strategic Allignment6 Allign IT with the business and its goal6 Provide a flexible, integrated information infra structure to support business strategies.6 Be an agent of change enabling business transformation6 Educating and communicating with IS users

4. Value Delivery6 Cost Optimisation, ROI for IT and its bottom line impact.6 Total cost of ownership of IT Services6 Providing the value of IT

5. IT Asset Management 6 Selectively outsourcing of non core processes to trusted suppliers6 Leveraging Knowledge and skills6 Availability, training retention of key IT personnel

6. Risk Management6 Establishing IT Security to safeguard assets and enabling business recovery from IT failure6 Establishing trust in services and partners6 Providing privacy and resilience

Inputsw Business strategies & Key

initiativesw Knowledge of Business

Processesw Understanding Technology

trendsw Benchmarks

TATA Motors, CVBU IT Governance

Key Steps in-'IT Governance Focus'

1. Be driven by stakeholders value2. Adopt an Governance Framework3. Focus of its

6 Strategic Alignment6 Value Delivery6 IT Asset Management6 Risk Management

31.3.2005 16.5

Inputsw IT Roadmapw Investment Proposal (Capex)w Business processes

Key Steps in-'Manage Support System'

1. Conduct specific needs assessments2. Select information technologies3. Define data life cycles4. Develop enterprise support systems5. Test, evaluate and deploy enterprise

support systems

Sub process : Manage Support SystemSub Process Ref : CVBU – EL – 16 – 02

(version 1.1)Process Owner : CIO (supported by TTL

Project Heads)EPM Linkage : CVBU–EL–16 (Information

& Knowledge Management)Preparation Date : 31/03/04 Modification Date : 31/12/05

Efficiencyw Adherence to schedule for key projects

Effectivenessw Number of defects during implementationw Number of defects post implementation


%

No.No.

Outputsw Benchmarking / Evaluation Reportw Enterprise support systemw Unit and System Test Reportw User Acceptance Test Reportw Installation Report

How it operates (Methods/ Practices)1.Conduct specific needs assessments

6 Interact with various user groups6 Identify their specific needs

2.Select information technologies6 Scan the latest technologies available in-house as well as outside6 Short list the best option6 Functional coverage6 Performance6 Life of technology

6 Prepare project implementation schedule3.Define data life cycles (Except Infrastructure and Networking)

6 Prepare data flow diagram for a specific application development4.Develop enterprise support systems

6 Identify the desired output6 Design the front-end6 Logical and physical design of the system6 Software development (Coding)

5.Test, evaluate and deploy enterprise support systems6 Confirm the desired output is delivered (Unit and System Test Report)6 Confirm processing time6 Run the pilot and get users’ acceptance (User Acceptance Test Report)6 Install the system (Installation Report)

TATA Motors, CVBU Manage support System

31.3.2005 16.6

Key Steps in-'Manage System Security'

1. Establish systems security strategies and levels

2. Test ,evaluate and deploy systems security and controls

Outputsw Information Security Policy /

Proceduresw Installation Reportsw Information Asset

classificationw Secured Systemsw Segregation of Dutiesw Signoff document - Vendors

Sub process : Manage System SecurityReference : CVBU-EL- 16- 03

(version 1.1)Process Owner : CIO (supported by TTL

Project Heads) EPM Linkage : CVBU-EL-16 ( Information

& Knowledge Management )Preparation Date : 13/01/04Modification Date : 31/12/05

Inputsw IT Roadmapw Enterprise Data Standardsw Enterprise Quality

Standardsw Application Specific

Security Requirementsw Documented IT process

and procedures

How it operates (Methods/ Practices)1.Establish Systems Security Strategies and Levels

6 Design and implement Information Security policies / procedures6 Classification of Information Assets6 Availability of Data and information to end users6 User level awareness of System Security6 Ensure that the system (code and data) is secure from unauthorized access6 Vulnerability assessment on a periodical basis 6 Weekly update of anti-virus software on all servers and PCs6 Automate download and fixation of security patches.6 Withdraw Administrative privileges from end users6 Sign off from Third Party Vendor and ensure compliance with Information Security

requirement6 Deployment of Security Software at the Gateway

2.Test ,Evaluate and Deploy Systems Security and Controls6 Decide the criteria6 Run the pilot and confirm desired results6 Install the system (Installation Report)6 Review on periodical basisRefer sub-process CVBU – EL – 16 – 07 (version 0.0) “Information Management Audits” for audit details.


Efficiency

Effectivenessw No of PCs getting affected by No.

virusesw No on incidents for

unauthorised access No.w No of Vendors sign off obtained No.

TATA Motors, CVBU Manage System Security

31.3.2005 16.7

Key Steps in-'Manage Information storage & Retrieval'

1. Establish information repositories2. Acquire and collect information3. Store information4. Modify and update / delete information5. Achieve data 6 Enable retrieval of information

How it operates (Methods/ Practices)1. Establish information repositories

6 Understand the business processes6 Estimate the data size, storage space required6 Categories the data / information (BoM, CAD/CAM Data…)6 Estimate the user base for each application

2. Acquire and collect information6 Establish the source6 Identify & execute the process of data / information input

3. Store information6 Establish the norms6 Type of data6 Method of storages6 Back up strategy6 Store as per norms

4. Modify and update / delete information6 Establish the trigger for changing the data / information6 Establish the review frequency6 Establish the access norms

5. Achieve Data 6 Establish Archival Polocies / procedures

6. Enable retrieval of information6 Establish the norms6 Retrieve as per norms

Efficiencyw Data retrieval time for each category of data /

informationw No of occasions on which data could not be

made available(Valid for data center operations)

Hrs.

No.


Effectivenessw Server crash due to data overload No.

Inputsw IT Roadmapw Business Processesw KPMs and KPIsw Enterprise Data Standardsw Enterprise Quality Standards

Outputsw Norms for storage and retrievalw Backup Strategy

Sub process : Manage Information Storage & Retrieval Sub Process Ref : CVBU-EL-16-04 (version 1.1) Process Owner : CIO (supported by TTL Project

Heads)EPM Linkage – CVBU-EL-16 ( Information & Knowledge Management )Preparation Date : 31/03/04Modification Date : 31/12/05

TATA Motors, CVBU Manage Information Storage & Retrieval

31.3.2005 16.8

Key Steps in -' Manage Facilities & Network Operations'

1. Manage Centralized facilities2. Manage Distributed facilities3. Manage network operations

Outputsw Reliable facilities and network

operations

Sub process : Manage Facilities & Network Operation

Sub Process Ref : CVBU-EL-16-05 (version 1.1) Process Owner : CIO (supported by TTL Project

Heads)EPM Linkage– CVBU-EL-16 ( Information & Knowledge Management )Preparation Date : 31/03/04Modification Date : 31/12/05

Inputsw IT Roadmapw Information Security Policies /

Procedures

How it operates (Methods/ Practices)1.Manage Centralized facilities

6 Identify ownership6 Evolve, monitor and review maintenance schedule6 AMCs and warranty support (Hardware / Software)6 First time installation (Design, Implement, Install)6 Ongoing maintenance (Help Desk, Data Center Management …)6 Up gradation 6 Ensure redundancies for network / communication links.

2.Manage Distributed facilities6 Identify ownership6 Establish a process for interfacing with centralized facilities6 Evolve, monitor and review maintenance schedule6 AMCs and warranty support(Hardware / Software)6 First time installation (Design, Implement, Install)6 Ongoing maintenance (Help Desk, Data Center Management …)6 Up gradation

3.Manage network operations6 AMCs and warranty support(Hardware / Software)6 First time installation (Design, Implement, Install)6 Ongoing maintenance 6 Up gradation

Effectivenessw Availablility of facilities and Network operations %

Efficiencyw System uptime for each of the critical Hrs.

services (e-Mail,application servers …)w Response time for troubleshooting Hrsw Bandwidth management and monitoring

(for Networking)


TATA Motors, CVBU Manage Facilities & Network Operations

31.3.2005 16.9

Key Steps in - 'Manage Information Services '

1. Manage libraries and information centers2. Manage business records and documents

Sub process : Manage Information Services

Sub Process Ref : CVBU-EL-16-06(version 1.1)

Process Owner : CIO supported by TTL Project heads

EPM Linkage – CVBU-EL-16 ( Information &

Knowledge Management)Preparation Date : 31/03/04Modification Date : 31/12/05

Efficiency


Effectivenessw 5”S” Audit scores No.w Document retrieval time Hrs.

Inputsw IT Roadmapw Business Processesw KPMs and KPIsw IT Security Policyw Storage and Retrieval Normsw Statutory requirements

Outputsw Storage & Disposal policiesw Categorized document libraries

How it operates (Methods/ Practices)1.Manage libraries and information centers

6 Identify the relevant business process6 Identify the data / information needs6 Create libraries (Databases, Intranet …)6 Review periodically for obsolescence

2.Manage business records and documents6 Decide the policy taking cognizance of legal

requirements6 Establish coding system / convention 6 Store documents in line with the policy6 Review periodically for obsolescence

TATA Motors, CVBU Manage Information Services

31.3.2005 16.10

Key Steps in -'Formation Management/Audits'

1. Perform IT security Audits2. Perform IT Infrastructure Audits3. Perform Information Quality Audits

Sub process : Information Management Audits

Sub Process Ref : CVBU-EL-16-07 (version 1.1) Process Owner : CIO (supported by TTL

Project Heads)EPM Linkage – CVBU-EL-16 ( Information &

Knowledge Management )Preparation Date : 31/03/04Modification Date : 31/12/05

Efficiency


Effectivenessw Number of Recommendations &

Findings in Auditsw Recurrence of the Nonconformity

Outputsw Audit Reports

Inputsw IT Roadmapw Information Management

Processw Organizational Databasesw Information Technology

Management Systems and Infrastructure

w Quality Standards (ISO,CMMI…)

How it operates (Methods/ Practices)1. Perform IT security Audits (Vulnerability assessment by IBM)2. Perform IT Infrastructure Audits on (With the help of Internal Audit

Team)6 Datacenter / Operations6 Networking6 Hardware & Software (development and deployment)

support6 Email & Portal support

3.Perform Information Quality Audits to check…6 Usefulness of information6 Information security (Accessibility)6 Information presentation6 Accuracy and reliability of Information

TATA Motors, CVBU Manage Information Audits

31.3.2005 16.11

Key Steps in - 'Knowledge Management'

1. Understand Knowledge requirements2. Encourage Knowledge Sharing 3. Exchange and use knowledge4. Build Knowledge Repositories where

necessary

Sub process : Knowledge Management Sub Process Ref : CVBU-EL-16-08 (version 1.1) Process Owner : Functional Heads/ Process

Owners)EPM Linkage – CVBU-EL-16 ( Information &

Knowledge Management )Preparation Date : 31/03/04Modification Date : 31/12/05

Efficiency


Effectivenessw Number of ideas shared and replicated on

Share Caféw User base of various intranetsw Number of suggestions in a yearw Number of Procedures / Processes

mappedw Number of Product Modifications

Outputsw Knowledge Repositoriesw Integrated Intranetsw Communities of Practice

How it operates (Methods/ Practices)1. Senior Management and process owners continuously communicate the

6 Business requirements to the respective stakeholders 2. Encourage knowledge sharing through…

6 Suggestion Scheme, Share Café 6 Cross Functional / Locational Assignments6 Dealer meets, Vendor meets6 QFD6 Involvement of suppliers during product development, etc

3. Exchange and Use knowledge6 Various meetings (CFT / CLT / SDT)6 Modify Design / Process / Procedure

4. Build Knowledge Repositories5. Monthly Reports in functions / divisions / departments

6 ISO / TS / EPM Documentation6 Audit / Assessment Reports

TATA Motors, CVBU Knowledge Management

31.3.2005 16.12

Inputsw Senior Management -

Strategic directionw Employees - Suggestion Scheme,

Share Café, Value Engineering Workshops

w Customers - QFD, Planned Interactions with customers e.g. Kulbir Singh Project, Product Review Meetings between Marketing, Service, QA, ERC & Mfg.

w Channel Partners - Dealers’ meets, Workshop Managers’ meet

w Vendors - Vendors’ meets, Involvement in Product Development

w Others - Consultants, ISO / TS / BSC Audits, TBEM External and Internal Assessment Processes

TATA Motors, CVBU Finance and Budgeting


EPM Process No :



CVBU-EL-17-01

CVBU-EL-17-02

CVBU-EL-17-03

CVBU-EL-17-04

CVBU-EL-17-05

CVBU-EL-17-06

CVBU-EL-17-07

CVBU-EL-17-08

Locational Process Chiefs :

Revenue Budgeting

Acounts Payment Management

Resource Management

Risk Management

Employee Services

Statutory Audits

Manage Investor Relations

Product Costing (Auto + Non Auto)

Product costing - Foundry

Product costing - PE

Product Pricing - Vehicle

Direct TaxationProduct Pricing - Spare Parts

Financial Accounting -GAAP

Indirect Taxation

Direct TaxationReceivables Management

CVBU-EL-17-09

CVBU-EL-17-10

CVBU-EL-17-11

CVBU-EL-17-12

CVBU-EL-17-13

CVBU-EL-17-14 FIBRES

EVA drilldown

(Corp Finance , Business planning)

(Corp Finance , Plant - Business planning)

(Corp Finance , Plant - Business planning)

(Corp Finance , Plant Finance)

Head Finance - (Corp Finance , Business planning)

(Corp Finance , Business Planning)

Head Finance - (Corp Finance , Accounts & Taxation)

Head Finance - (Corp Finance , Plant Finance)

(Corp Finance,Businss Planning)

Head Finance - (Corp Finance , Accounts & Taxation)

Head - Shared Services,Corp Finance

Head Finance (Corp Finance - Treasury)

Head Finance (Corp Finance - Treasury)

Head - Shared Services / Corp Head

Finance Head - (Corp Finance , Plant Finance)

Head Investor Relations Dept,Corp Finance

Head Finance - (Corp Finance , Business Planning)

ED's Office

CVBU-EL-17

Mr P P Kadle - ED (Finance & Corp Affairs)

Locational Finance Heads

31.3.2005 17.1

ISO / TS 16949 (2002) Ref

Cost of Capital

No of Days

Ratio

Process review and Improvement / Modification History-

Accuracy of the reports

Adherence to Time schedule of reports

Time for Closing of Accounts, Receivable as No. of Days of Sales

Financial Ratios

Funds Utilisation - Budget Vs. Actual

Divisions Involved -End Customer- Core Values Embedded-

Corporate and Locational Finance Other FunctionsIntegrity, Customer Focus, Passion For Engineering and Corporate Citizenship5.4


01/06/03 00 New Release BES,Pune



CVBU- EL- 17

Efficient Funds Management, Statutory Compliance, Provide Support for Decision Making


Process Owner Mr P P Kadle ED (Finance & Corp Affairs)


Ø Review and Finalise Financial PoliciesØ Manage Corporate Finance Services

- Funds Management- Budgeting- Consolidation of Accounts and preparation of Financial Statements- Financial Analysis and Statutory Reporting

Ø Manage Locational Finance Services- Vendor Payments, Employee Payments, Costing & Budgeting, Funds Management

Ø Manage Sales Finance Services- Resource & Funds Management for BHPC- Receivables Management & Dealer Credit Control- Vehicle Pricing

ü Funds Availability ü Interest Cost Controlü Financial Analysisü Budgetary Controlsü Working Capital Controlü Statutory Compliance

§ CVBU Strategy§ Business Plan§ Economic Environment§ Financial Resources§ Requirement of External Suppliers and

Customers§ Requirement of Internal Customers§ Statutory Requirement§ TATA group guidelines§ Budget Approvals


Process Title

Process Objective




In-Process / Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure Unit of MeasureNos.

R.Y.G.%,Rs. Cr.

%

31.3.2005 17.2

- Review andFinalise FinancialPolicies.-Set Targets andInitiativesFinance Divl.Commitee

- Annual A/C closing,- Financial statements,- Performance Analysis andResource BudgetPreparation

Finance Divl. Commitee

Inputs-- CVBU Strategy,- Business Plan,- Budget Approvals,- Statutory requirements,- Tata Group Guidelines,- Financial Resources,- Economic Environment- Requirement ofExternal Customersand Suppliers,

- Requirements ofInternal Customers.

Process Owner : Head of Corporate FinanceProcess objective : Efficient Funds management, Ensure statutory Compliance, Provide Financial, Information support for Business Decision Making

Outputs- FinancialStatement,BudgetProposals

Manage Finance Services atRespective Plants

*Manage Vendor Payments*Payment of salaries & wages.*funds Management*Sales Accounting*Payment Taxes and Duties*Costing and Budgeting*Plant Level Accounting*Provide MIS on financial performance of the Plant

*Plant Level Cost ReductionPlant Finance Heads

Manage Sales Finance Services -* Resources & Funds Managementfor BHPC.*Receivables Management andDealer credit controls*Vehicle Pricing

Head of sales Finance

Manage Corporate FinanceServices-

* Financial services for Corporateoffices, Regional & Area offices

* Funds Management for CVBU* Budgeting * Consolidation of Accounts and

preparation of Financial Statements* Financial Analysis, MIS and

Statutory ReportingHead of Corp. Finance

Output-- StatutoryCompliance- Improved Utilisationof Financial Resource

Acquire andAllocateResourcesHead Corp.Finance

- Periodic Review ofPerformance,- Reallocation of Resources

Head ofCorp. Finance

Continue with theProcess


31.3.2005 17.3

Key Steps in –'Revenue Budgeting'

1. Preparation of functional budget at plant level and Corporate level

2. Consolidation of budget3. Inclusion of Union Budget impact4. Review and Approval of budget.5. Communication of approved budget to

Functional Heads6. Monitoring and review of budget.

Sub process : Revenue Budgeting Sub Process Ref : CVBU-EL-17-01 (version 1.1)Process Owner : Corporate Finance –

Business Planning EPM Linkage : CVBU-17 (Finance & Budgeting)Preparation Date : 31/03/04Modification 1 : 30/11/04Modification 2 : 20/12/04

How it operates (Methods/ Practices)1. Releasing of Budget guidelines on financial and policy matters2. Preparation of departmental budget and compilation into functional budget at plant

level based on annual production plan and also preparation of functional budget for Sales & Marketing and Corporate Affairs

3. Consolidation of budget at company level4. Present First cut Business Unit budgets to respective EDs5. Incorporate changes (if any) as recommended and represent detailed Business Unit

budget to respective EDs for their recommendation6. Present budget before Operations Committee for recommendation7. Present budget before Management Committee for recommendation8. Incorporate Union budget provisions and prepare final Company budget9. Review and recommend final Company budget for approval10. Circulate the final proposal to Board Sub Committee and receive approval11. Review and approve Company budget by Board of Directors12. Communicate approved budget to concerned Functional Heads13. Analysing variance on monthly basis and proposing modifications (if any) during mid

term review (MTR)14. Seeking approval of MTR as above

Inputswwww

wwwwwww

Vehicle sales planNon vehicle business plan Plant level production planManpower requirement & proposed salary/wage revisionCost saving target R&D BudgetPublicity budgetDepreciation policy.Union budgetDirectives from Board of DirectorsCapital Budget

Outputswwwww

Plant / Div-CX / BC wise budgetBudget updation in systemMIS report.Cost saving reportAbsorption rate for determining standard cost of aggregates / components / assemblies


Effectivenessw

%Accuracy of budget(Variance – excluding the effect of change in sales volume)

Efficiencyww

Adherence to Budget Calendar %Timeliness, final budget by 31st march %

TATA Motors, CVBU Revenue Budgeting

31.3.2005 17.4

OutputsProduct cost

w For Vehiclew For Aggregate and assembliesw For componentsw MIS for variance analysis

Sub process : Product Costing (Auto) Sub Process Ref : CVBU-EL-17-02

(version 1.1) Process Owner : Corporate Finance/Plant –

Business Plg EPM Linkage : CVBU-EL-17 (Finance

&Budgeting)Preparation Date : 31/03/04Modification 1 : 30/12/04Modification 2 : 18/01/05

Efficiencyw Correctness of product cost. %

Effectivenessw Availability of cost data for product %

booking and stock valuation.w Absorption of Expenses over output.


Inputsw Sales/ production plan for the

budget yearw Revenue budget for the year.w Bill of material. (BOM)w Technical part list converted to BOMw Routing for parts/assemblies (SMH)w Actual expenses for each cost

centre for current year period.w Total expenses, which are

apportioned to Auto (e.g. common service, HO expenses, R&D expenses)

w Cost centre master dataw Financial account dataw Asset master data

Key Steps in –'Product Costing'

1. Update year opening price adjusted to budget parameters as planned price for bought out parts

2. Release budgeted cost centre rates.3. BOM explosion4. Analysis of cost sheet (Cost sheet

should be free of errors--- status KA) 5. Mark and release the cost for inventory

valuation and production booking.

How it operates (Methods/ Practices) 1. Cost centre rate is based on actual basis (BC rate of last quarter) and activity involved

(SMH required) to achieve the planned production.2. Condition of supply is being factored in BOM while entering in the system3. BOM consists aggregation of components, subassemblies, and assemblies to vehicle.4. While BOM explosion system looks for planned material cost of each input material. At

each level material cost is aggregated.5. For in house manufactured components (indicated by E99 or E98),Cost centre routing is

picked and conversion cost is calculated based on cost centre rate. At each higher level conversion cost is aggregated.

6. Aggregate cost at each level is product cost .7. Product cost will get released at component level, and for each aggregate where it is

considered for in house product booking. 8. Product is also available at current month average material price as well as weighted

average material price. (This product cost is used for MIS purpose)

TATA Motors, CVBU Product Costing (Auto)

31.3.2005 17.5

Inputsw Asset master data.w Cost center master data.w Financial account data.w Cost/work center dataw R&D (actual+projected)w Bill of Material for products.w MAP’s


1. Work out planned cost2. Work out actual product cost based on 6 Actual Production6 Actual consumption of Matl & labor

3. Analyze Variance4. Prepare MIS and Profitability report5. Consolidation of Cost and MIS Report.6. Cost monitoring, cost audit.7. Non auto (tooling, electronic etc) costing

Sub process : Product Costing Sub Process Ref : CVBU-EL-17-02 (version 1.1) Process Owner : Corporate Finance/Plant –

Business Plg EPM Linkage : CVBU-EL-17

(Finance & Budgeting)Preparation Date : 31/03/04Modification 1 : 30/11/04

Efficiencyw BOM, MAP accuracy %

Effectivenessw Accuracy of data/information. %


Outputsw Cost of productw MIS.w Cost audit report

How it operates (Methods/ Practices)A. Auto Costing 1. Work out cost centre rates on the basis of budget expenses.2. Work out planned cost.3. Cost head / product wise actual costs are worked out based on actual

production and consumption of material and labor.4. Cost variances are analyzed and MIS reports (direct material

consumption, indirect material consumption etc.) are sent respective departmental heads for necessary action

5. Product cost report are consolidated at CVBU level and product profitability and contribution is analyzed and reports are given to Steering Committee and LOB heads.

B. Non Auto Costing 1. Work out cost center rates.2. Work out actual cost through work order system.C. Carry out auditing by auditors appointed by BOD.D. Seek approval from BOD & signed by E.D.E. Take action on audit findingsF. Share/compare cost comparisons with other plants.

TATA Motors, CVBU Product Costing

31.3.2005 17.6


1. Work out Activity Rates –( Melting, Core, Mould and Finishing )

2. Update activity rates3. Take cost roll-up (item wise cost

bifurcated in to Variable & Fixed cost)

Outputsw Cost of productw Informing Cost to internal

customers for the purpose of transfer accounting

w Excise duty payment for Transfersw Inventory valuationw Quotations for sale to External

Customersw Contribution & Profitability analysis

on outside sale

Sub process Product Costing - Foundry

Sub Process Ref : CVBU-EL-17-02 (version 1.1)

Process Owner CVBU, Pune -Business Planning

EPM Linkage : CVBU-EL-17 (Finance & Budgeting)

Preparation Date : 31/03/04Modification 1 : 27/12/2004

Inputsw Revenue Budget w Production Plan w Asset master data.w Cost center master data.w Cost centre wise Manpower data w Bill of Material for products.


Efficiencyw Bill of Materials (BOM) Nosw Variance analysis %

Effectivenessw %Accuracy of Cost

How it operates (Methods/ Practices) 1. Collection of revenue expenses – BC wise2. Apportioning the same in 4 activities – Melting, Core, Mould and Finishing3. Working out SMH rate / kg. Liquid metal for melting expense4. Updating activity rates5. Technical data received from plant towards conversion cost6. Working out conversion cost7. Booking of material cost at actual and MASOP cost (outside processing

charges)8. Arriving at total cost 9. Taking cost roll up which gives the product wise cost bifurcated into

Variable Cost & Fixed Cost

TATA Motors, CVBU Product Costing (Non Auto – Foundry)

31.3.2005 17.7


1. Updation of Cost Centre Rates2. Consumption of Direct material

for actual cost(estimate for outside quote)

3. Labour Hour booking for actual cost (estimate for outside quote)

How it operates (Methods/ Practices)1. Cost centre wise booking of actual Labour hours spent on the

Work Order.2. Working out cost centre rates on the basis of Expenditure &

Labour overhead as per SMH (actual booked to WO)3. Actual issue of Direct material to Work Order 4. Actual expense relating to outside processing charges5. Working out total cost after completion of the Work Order6. Working out hike de hike percentage based on the difference

between actual expenses & Budgeted Expenses at the year end.

7. Working out the revised cost.

Inputsw Cost centre master data.w Cost centre wise expenditure

Budget for the yearw Cost centre wise Labour Hours

budget for the yearw Release of Work Order based on

Indents from APL/Technical Services & Pos received from Outside customers for manufacture of Tooling

w BOM release for manufacture of Tooling against WOs.

Efficiencyw Correct booking of Direct Material Rs.w Correct booking of Labour Hours


Effectivenessw Accuracy of Tooling Cost %

Outputsw Cost of Toolingw MIS – Performance sheet,

variance analysis at overall levelw Quotations for outside Salew Contribution & profitability analysis

on outside Sale of Tooling

Sub process : Product Costing - PE Sub Process Ref : CVBU-EL-17-02 (version 1.1) Process Owner : CVBU,Pune- Business Planning EPM Linkage : CVBU-EL-17 (Finance

&Budgeting)Preparation Date : 31/03/04Modification 1 : 27/12/2004

TATA Motors, CVBU Product Costing (Non Auto – Prodn. Engineering)

31.3.2005 17.8

Key Steps in -'Product Pricing'

1. Determine New vehicle price.2. Approve and Implement new prices3. Review and revise existing

product prices

Performance Measure

Effectivenessw Conformity with pricing norms w Compliance with effective date

%%

Efficiencyw Adherence to schedule %

Sub process : Product Pricing (Vehicle)Sub Process Ref : CVBU-EL-17-03 (version 1.1) Process Owner : Corporate Finance –

Business PlanningEPM Linkage – CVBU-EL-14 ( Finance &

Budgeting )Preparation Date : 31/03/04Modification 1 : 30/11/04Modification 2 : 20/12/04

Unit

Inputsw Sales forecast of new productw New vehicle specificationsw Works cost data from Plantsw Tax applicability w Competitor price dataw Marketing and pricing strategy for

new productsw Profitability targetsw Mktg, sales & distribution cost dataw Current price listw Information about existing product

strategy

How it operates (Methods/ Practices)1. Pricing of new product (model / variant) 6 Information about new product - product features6 Positioning of product vis a vis competitor and current product range of

CVBU6 Obtaining cost data of new product from Works6 Loading margin after considering prices and profitability of current product

and prices of competitor, demand forecast, Marketing and pricing strategy and budgeted profitability of model group6 Sent to Business Head in the specific format for recommendation6 Changes made (if any) as suggested by Business Unit and sent to ED (F &

CA) for recommendation to Chairman’s office6 Final approval from Chairman6 After approval Prices are updated in the system and communicated to 6 Marketing & Sales, Plant Finance, Dealers, Central Excise etc. along with

effective date.2. Pricing of existing product

Conducting periodic review of - Cost data of components / aggregates / assemblies, Impact of Union Budget, Product profitability target, Target market share of product, Marketing and pricing strategy,

Accordingly product prices are revised

TATA Motors, CVBU Product Pricing- (Vehicle)

Outputsw Updated vehicle price lists

available to internal & external customers

w Invoicing of vehicles

31.3.2005 17.9

Key steps in –'Direct taxation'

1. Analyzing Union budget, Income Tax act, Rules, Treaties and case laws

2. Tax planning3. Ensuring compliance of tax law and procedures4. Computation of income5. Payment of taxes to Govt. and filing of Return6. Handling assessment / appeal / notices

Inputsw Income tax act & Rulesw Case laws / tax journalsw Double taxation avoidance

agreementw Union budgetw Financial accountsw Directives from Board of Directorsw Details of transaction data from

Divisions having tax impactw Expert opinion on legal issues

Outputsw Legal compliancew Avoidance of penalty / interest

paymentw Tax savingw Assessment / appeal order

How it operates (Methods/ Practices)1. Study effect of changes in Income tax rate, Law as per Union Budget2. Intimating new tax laws and rates to all Divisions for implementation and ensuring

compliance3. Advising on various tax / TDS issues by reviewing transaction to ascertain tax implication4. Reviewing data received from Divisions for computation of income tax5. Availing all tax incentives applicable6. Making provision for current tax / deferred tax as per Indian / US GAAP and getting it

duly audited7. Computation of effect of transfer pricing in case of International Business8. Computation of income and payment of tax and filing of return of income9. Appearing before tax authorities, making representation and getting assessment

completed10. Filing appeal, liasioning with Tax Counsel and attending appeal hearing11. On receipt of appeal order, lodging claim for consequential effect and obtaining refund due.12. Preparation of contingent liability statement and getting it duly audited13. Collecting data, obtaining valuation report and computing wealth tax payment as per act14. Payment of wealth tax, filing of return and getting assessment done


Effectivenessw Minimum tax liability – avoidance

of penalty and interest Rs. in croresw Reduction in contingent liability Rs. in crores

Efficiencyw Compliance with statutory requirement %w Timely payment of taxesw Timely filing of returns and claims %

%

Sub process : Direct taxationSub Process Ref : CVBU-EL-17-03 (version 1.1)Process Owner : Corporate Finance – Business

PlanningEPM Linkage – CVBU-EL-14 ( Finance &

Budgeting )Preparation Date : 31/03/04Modification 1 : 30/11/04Modification 2 : 28/12/04

TATA Motors, CVBU Direct taxation

31.3.2005 17.1031.3.2005 17.10

Key Steps in – 'Spare parts Pricing'

1. Determine spare parts price2. Approve and Implement new prices3. Review and revise existing spare parts prices

Sub process : Product Pricing (Spare Parts)

Sub Process Ref : CVBU-EL-17-03 (version 1.1) Process Owner : Corporate Finance –

Business PlanningEPM Linkage – CVBU-EL-14

( Finance & Budgeting )Preparation Date : 31/03/04Modification 1 : 30/11/04Modification 2 : 13/12/04

Efficiencyw Adherence to schedule %


Effectivenessw Conformity with pricing norms %w Compliance with effective date %

Outputsw Updated spare parts price

lists available to internal & external customers

Inputsw Vehicle sales forecast w New vehicle specifications/

spare part listw Spare parts masterw Serviceable parts list and

technical part listw Purchase contract from Plants

for OE suppliersw Duties / Tax applicability w Cost data for shop made partsw Marketing and pricing strategy w Profitability targetsw Current price list

How it operates (Methods/ Practices)1. Pricing of new parts 6 Information about new product 6 Information of technical part list received from ERC6 Obtaining cost data of shop made parts from Works6 Calculation of landed cost for OE parts from purchase contracts6 Loading margin after considering marketing and pricing strategy , type of parts,

criticality and budgeted profitability6 Sent to AGM (Spare Parts – CVBU) in the specific format for recommendation6 Changes made (if any) as suggested by AGM(Spare Parts – CVBU) and sent to

Head, LOB 4 for approval6 Final approval from Head, LOB 46 After approval Prices are updated in the system and communicated to Marketing

& Sales, Tata Motor Plant Finance, Dealers, Distributors, Central Excise etc. along with effective date.

2. Pricing of existing parts 6 Prices are periodically reviewed and revised when necessary, to maintain

product profitability

TATA Motors, CVBU Product Pricing - (Spare Parts)

31.3.2005 17.11

Key Steps in – 'Financial Accounting'

1. Controlling authorisation for passing accounting entries in the system

2. Correct accounting for income and expense 3. Consolidation of accounts at corporate level4. Preparation of accounts as per Schedule VI requirement and quarterly accounts

as per AS 255. Preparation of accounts as per US GAAP6. Review of financial statement7. Regulatory compliance

Efficiencyw Closing of TB for MIS Ist dayw Completion of Quarterly Accounts in 15 days 15daysw Completion of Annual Accounts . 3Wks w Accuracy and timeliness of Reports %w Number Audit Adjustment Entries . Nos


Outputsw Management Information Reports .w Quarterly Results as per SEBI.w Consolidation Accounts as per

AS21.w Annual Report w Book on Explanatory Note. w Form 20 as per US GAAP w MD & A as per US GAAPw Prospectus and other Financial

documents

Inputsw Accounting standards and

pronouncements, Indian Companies and Taxation act

w US GAAPw TB from HR & Payroll & BHPC

and other Legacy system .w TB and other FI data from

Subsidiaries and Associates w Data from Vendors for incoming

Materials thru VCM .w Data from Customers on

Warranty and PDI claims w Proof / documents pertaining

income / expense bookingw Bank statement and related info

from Banks thru Internet.

Effectivenessw Number of Audit Issues. Nos.w Adverse comments from External Auditors Nos.

Sub process : Financial Accounting Sub Process Ref : CVBU-EL-17-04 (version 1.1) Process Owner : Corporate Fin – Accounts &

Taxation EPM Linkage : CVBU-17 (Finance & Budgeting)Preparation Date : 31/03/04Modification Date : 30/11/04

How it operates (Methods/ Practices)6 Maintaining FI and Tax master6 General Ledger Accounting, BC wise and cost centre wise booking of entries6 Analysing and reviewing of accounts, periodic clearing of line items 6 Uploading TB from other Systems e.g. HR, BHPC, HVAL / HVTL, CFM6 Carrying out Period End Activities in Finance and in SAP6 Finalising TB after required Accrual, Provision and Adjustments entries6 Carrying out Actuarial Valuation of Employee Leave, Gratuity, Superannuation Fund and

Medical liabilities as per Proviions of Indian and US GAAP 6 Reconciling inter company transactions and passing required inter company elimination entries 6 Preparing schedules e.g.

ØRaw Material and Finished Goods Inventory, Vendor, Customer, Investment ØBorrowings and Fixed Assets Schedules

ØNotes to accounts ØP & L Variance

CARO requirements6 Preparing realigned TB as per US GAAP and passing required US GAAP entries6 Preparing accounts as per Indian and US GAAP

TATA Motors, CVBU Financial Accounting

31.3.2005 17.12

Key Steps in – 'Financial Accounting'

1. Statement of Balances from all TML locations

2. Financial accounting schedules for all assets & liabilities

3. Bank Reconciliation4. Variance analysis of major P & L and

Balance Sheet items5. Reconciliation of TML accounts with

subsidiaries & associates.

Inputsw Common Chart of Accountsw Transactions & Trial balances of

various locationsw Accounting Standardsw Information & data from

subsidiaries & associates

Efficiencyw Completion of Quarterly audit review in 15

days TimeCompletion of Annual Audit Review in 30 days. Time

w Timeliness of Report Time

w


Effectivenessw Accuracy of Accounts %w Adverse comments from External Auditors Nos

Sub process : Financial Accounting Sub Process Ref : CVBU-EL-17-04 (version 1.1) Process Owner : Corporate Fin – Accounts &

Taxation EPM Linkage : CVBU-17 (Finance & Budgeting)Preparation Date : 31/03/04Modification Date : 30/11/04

How it operates (Methods/ Practices)1. Prepare & audit various accounts (by respective groups at resp.TML locations)2. Prepare

Ø notes to accountsØ Explanatory notesØ Schedule VI requirementsØ CARO requirements

3. Get tax audits done4. Maintain Master Chart of Accounts with justifications5. Adherence to various Accounting Standards

Close follow up & coordination with various TML locations Associates & Subsidiaries

GAAP – Generally agreed accounting practicesUSGAAP – US …Listing Agreement – with the stock exchange where we register our Shares

TATA Motors, CVBU Financial Accounting

Outputsw Company’s consolidated final

accounts duly audited.w Final accounts to meet requirements

of US GAAP.

31.3.2005 17.13

Key steps in –'Indirect taxation'

1. Analyzing tax rules and regulations and their implications in the business

2. Payment of taxes to vendors3. Collection of taxes from customers4. Set off adjustment of service tax against

payment of excise duty5. Payment of taxes to Govt.6. Filing of returns and claiming of refunds

Outputs

w Cenvat creditsw Cost price of Product w Refund claimsw Legal judgmentsw Assessment report by governmentw MIS on contingent liability, status of

cases under appeal

Efficiencyw Timely availment of Cenvat credit/set off

concessions. %w Timely payments of taxes. %w Timely fillings of returns / claims %


Effectivenessw Adherence to statutory requirements. %

Reduction of contingent liability for excise Rs. crores and sales tax related matters

Sub process : Indirect Taxation Sub Process Ref : CVBU-EL-17-05 (version 1.1) Process Owner : Corporate/Plant LevelEPM Linkage : CVBU-EL-17

(Finance & Budgeting)Preparation Date : 31/03/04Modification date : 24/12/04

How it operates (Methods/ Practices) 1. After budget session Works finance analyses rules & tariffs related to excise duty, sales tax, service tax, & local taxes2. Works finance updates master data related to above3. Implication and effect on product pricing is worked out and conveyed to Sales & Marketing Dept4. Taxes are paid to vendors based on PO terms & conditions against excise on commercial invoices through supplier

payment system5. Works finance avails Cenvat duty credit against excise duty paid on inputs6. Excise duty & sales tax are collected from customers on sold products & separately accounted for7. Service tax collected on services rendered and paid on services availed.8. Works finance makes payments of excise duty for vehicles/components dispatched through PLA or RG23 after netting

off Cenvat credit available9. Set off is being availed on service tax paid on services availed against payment of excise duty

th th10. Excise duty is being paid on 5 of next month, Returns are being submitted by 10 of next month11. Works finance makes payments of sales tax to state/central government every month.

th12. Works finance makes payment of service tax collected on 25 of next month, Returns are being submitted half yearly13. Local taxes (Octroi etc) are being paid by Works finance14. Works finance files submissions, returns and claims refunds in case of concessions15. Coordinating with Legal Dept. for disputed cases16. Works finance prepares schedules, answers to queries of auditors from Excise Dept. and statutory Auditors

InputsExcise Duty.6 Excise rules & tariffs6 Union budget6 Vendor master6 Duty paid excise invoices from vendors6 Product price list.6 Dispatch cum excise documents

Sales Tax6 Invoices of suppliers6 Customer master6 Form C/D/H ,and entitlement

certificates6 Sales tax rules6 Commercial invoices of TML

Service Tax6 Service tax rules6 Invoices of the service providers6 Our invoices for services rendered

TATA Motors, CVBU Indirect Taxation

31.3.2005 17.14

Key steps in –'Direct taxation'

1. Analyzing Union budget, Income Tax act, Rules, Treaties and case laws2. Tax planning3. Ensuring compliance of tax law and procedures4. Computation and payment of taxes to Govt. and filing of Return5. Handling assessment / appeal/ notices6. Handling Tax Audit

Outputsw Legal compliancew Avoidance of penalty / interest

paymentw Tax savingw Tax audit report

Efficiencyw Compliance with statutory requirement %w Timely payment of taxes %w Timely filing of returns and claims %


Effectivenessw Minimum tax liability Rs. in croresw Reduction in contingent liability Rs. in crores

Sub process : Direct TaxationSub Process Ref : CVBU-EL-17-05 (version 1.1)Process Owner : Corporate Finance – Business

PlanningEPM Linkage – CVBU-EL-14

( Finance & Budgeting )Preparation Date : 31/03/04Modification 1 : 30/11/04Modification 2 : 13/12/04

How it operates (Methods/ Practices)1. Study effect of changes in Income tax rate, Law as per Union Budget2. Intimating new tax laws and rates to all Divisions for implementation and

ensuring compliance3. Reviewing data received from Divisions for computation of income tax4. Making provision for current tax / deferred tax as per Indian / US GAAP5. Collection and payment of TDS, issue of TDS certificates6. Payment of tax and filing of return of income7. Appearing before tax authorities, making representation and getting

assessment completed8. Filing appeal, liasioning with Tax Counsel and attending appeal hearing9. On receipt of appeal order, lodging claim for consequential effect and obtaining

refund due.10. Preparing income tax schedule for tax audit and providing information and data11. Collecting data, obtaining valuation report and computing wealth tax payment as

per act12. Payment of wealth tax, filing of return and getting assessment done

TATA Motors, CVBU Direct taxation

Inputsw Income tax act & Rulesw Case laws / tax journalsw Double taxation avoidance

agreementw Union budgetw Financial accountsw Directives from Board of Directorsw Details of transaction data from

Divisions having tax impactw Expert opinion on legal issues

31.3.2005 17.15

Key Steps in –'Receivable Management'

1. Receipt updation and bank reconciliation2. Monitoring and controlling credit limits3. Incentive payout to dealers / customers4. Dealer / customer account reconciliation5. Follow up and recovery of dues6. Provisioning of bad debts and write off7. Inventory reconciliation and valuation for RSO

stock8. Management of Sales tax payment and

assessment

Outputsw MIS on on receivablesw MIS on incentive payoutw Quarterly sign off with dealers/

customersw MIS on dealership

financial position

Inputsw Customer, Price and Tax master

dataw Sales orderw Payment terms and condition of

order as agreed by managementw Incentive Schemes for

Dealers/Customersw Invoice

Efficiencyw MIS within the target date %w Early warning on dealership financial status timeliness


Effectivenessw Reduction of overdue receivables Rs in cr.w No. of accounts reconciliation with dealers / %

customersw Control on Credit Management No. of

defaults

How it operates (Methods/ Practices)1. Daily receipt updation based on bank information2. Monthly Bank reconciliation3. Periodic line item clearing in dealer/ customer account against invoice details4. Incentives being credited / paid to dealers / financiers based on offtake / retail performance as per

incentive schemes framed by Marketing Dept.5. Bank Guarantee / Security deposit updation and setting up credit limit with reference

to payment terms and condition 6. Monitoring and reviewing limits,/bank Guarantee .7. Issuing credit to dealer account on account of direct sale commission, interest on delayed delivery, interest on

security deposit 8. Periodic reconciliation of account statement with dealers / customers.9. Follow up of outstanding with customers and Business Unit10. Coordinating with Legal Dept. for disputed cases11. Seeking approval for bad debt provisioning and write off12. Reconciliation of RSO stock and valuation thereof by taking confirmation from respective Works and RSOs

in terms of despatch figure , invoice details and stock transfer memo13. Monthly remittance of sales tax to RSO locations14. Preparing sales tax schedule15. Coordinating in sales tax assessment / appeal cases16. Obtaining order from Sales Tax Dept.

Sub process : Receivable Management Sub Process Ref : CVBU-EL-17-06 (version 1.1) Process Owner : Corporate Finance – Accounts &

Taxation EPM Linkage : CVBU-EL-17 (Finance &

Budgeting )Preparation Date : 31/03/04Modification 1 : 28/12/04

TATA Motors, CVBU Receivable Management

31.3.2005 17.16

Scope: (vendor payments for material & services.)1. Maintenance of master data.2. Receipt of invoices from suppliers3. Invoice verification, payment run4. Process recoveries from suppliers,

reconciliation. 5. Disbursement of payments.6. Financial accounting & audit.

Key Steps in – 'Accounts Payment Mgmt' Outputs

w Cheques to suppliers, contractors

w Accepted Hundiesw Debit notes.w Payment advise spool to

HDFC for supplier payments.w Financial statements w Reconciled accounts.

Inputsw Approval of new vendor.w Service entry sheet/GINsw Purchase orders.w Advance request.w Supplies,invoice.w Recovery advice.

Efficiencyw Accuracy of data. %w Compliance to statutory requirements. %


Effectivenessw Timely payment – SSI & non SSI No of Days

How it operates (Methods/ Practices)1. Add suppliers in master based on approved advice from purchase and MPC/SSG. Update bank

master data, pay terms data in the system2. Invoices are received by CRDO & executing agency & retained at their end Information flows to

Finance for payments through SAP3. Verify invoices, consider recoveries if any and adjust to amount payable

(Invoice verification for materials is done by system whereas exceptions are cleared by finance)4. Incase of service, invoice verification is done by finance5. Generate hundies in case of BMS supplies6. Plan and run payment processing system to select transactions, based on the date as per pay

terms7. Make advance payments based on advance request, make payment for the bills pertaining to

contract services, capital expenses & other miscellaneous expenses8. Send payment spool to HDFC for cheque printing9. Receive back entire spool, along with payment reference and upload in the system to update

pay details.10. Other bank checks printing & distribution by HDFC and informed11. Reconciliation of payment at vendor level12. Prepare schedules and financial statements & forward to corporate finance for consolidation.

Sub process : Accounts Payments Management Sub Process Ref : CVBU-EL-17-07 (version 1.1) Process Owner : Corporate/Plant LevelEPM Linkage : CVBU-EL-17 (Finance &

Budgeting)Preparation Date : 31/03/04Modification Date : 24/12/04

TATA Motors, CVBU Receivable Management

31.3.2005 17.17

Key Steps in –'Resource Management'

1. Resource Planning2. Finalize Resource outflow from Revenue Budget 3. Work out monthly, income & expenses and

allocate resources4. Track daily collection and expenses5. Take decisions on loans & investments6. Channelise funds(invest or borrow)7. Prepare MIS reports (Board, ED’s, Finance

committee)

Outputsw Plans for utilization of fundsw Plans for investment/loansw MISw Monthly cash flow estimatew External obligations

InputsInternalw Long term plan, annual planw MTR Revieww Monthly Sales and Plant Dataw Daily expense and collection

dataw Capex PlansExternalw Market Related, Interest

Rates, Funds Availability

How it operates (Methods/ Practices)1. Estimate the resource requirements of the company2. Raise funds & plan resources to collect money3. Identify products & Cost 4. Keep daily monitoring5. Decide on loans if required6. Decide to invest excess capital 7. Channelise funds to the required areas 8. Prepare MIS reports9. Measure the costs and take corrective action

Sub process : Resource ManagementSub Process Ref : CVBU-EL-17-08 (version 1.1) Process Owner : Corporate Finance - Treasury EPM Linkage – CVBU-EL-17 (Finance &

Budgeting)Preparation Date : 31/03/04Modification 1 : 30/11/04

Efficiencyw Cost of funds %w Avg Borrowing levels Rs in crsw Overdraft levels Rs in crsw Liquidity Availability Rs in crs


Effectivenessw Manage the resource availability with

minimum costs %w Adequate return on surpluses %

TATA Motors, CVBU Resource Management

31.3.2005 17.18

Key Steps in –'Risk Management'

Assets Risk1. Identify, control & monitor key Asset risks2. Decide Insurance Policy – risk coverage3. Finalize Insurance Company4. Policy premium payment, claims, maintenance5. Identify liquidity, interest and currency risk6. Take risk hedge measures

Currency Risk1. Identify & monitor key exposures2. Decide risk coverage and instruments3. Decide external risk hedging agencies4. Take risk covers and monitor cost5. Feedback on cost transferred to BU

Outputsw Insurance Policiesw Claims settledw MIS reportsw Risk Cover Reportsw Risk Costs MIS

InputsAsset Riskw Risk Parametersw Assets Valuation Dataw Quotes from Insurance

Companiesw Internal Data on Risk Eventsw External Valuations/Survey

ReportsCurrency Riskw Annual and Six months Cash

flow in Foreign Currency (data from Business Units)

w External data on currency and economic development

How it operates (Methods/ Practices)Asset/ Transit Insurance: (Insurance of plant, building, Transit Insurance)1. To review and assess the probability of event (risk) occurrence2. Observe the statutory insurance compliance3. Identify assets, determine value for insurance coverage (Valuation by professional valuer)4. Decide Insurance policy at Corporate Level. Decide coverage % (whether 100% or partial)5. Call quotations from Insurance companies, negotiate and select.6. Pay Premium, Lodge claims, Maintain Policies at Plants / Non plant locations7. Annual Review of insurance policies coverage and incidents8. Periodic review of underlying processes involved and cost benefit for existing large policies.Currency Risk: (regarding foreign currencies, financial assets – liabilities (interest rate risk, credit risk, etc.)1. Treasury acts a bank for the Business Unit2. Treasury provides a foreign exchange rate to the Business Unit for its budget period and protects BU

at that rate. 3. Treasury then decides to hedge or keep the exposures open and bears the exchange loss or gain.4. Treasury Department every month makes a report to Finance Committee of Directors (FCOD) of its

exchange covers and loss/gain position. There is also a weekly reporting to Executive Director Finance.5. Treasury every quarter sends a compliance report to the Audit Committee

Efficiencyw Cost benefit of insurance processes Rs in crsw Amount of coverage offered Rs in crsw Claims settlement No. of daysw Exchange loss/gain Rs in crsw Risk cover position for company Rs in crs


Effectiveness

TATA Motors, CVBU Risk Management

Sub process : Risk Management Sub Process Ref : CVBU-EL-17-09 (version 1.1) Process Owner : Corporate Finance - Treasury EPM Linkage – CVBU-EL-17 ( Finance &


31.3.2005 17.19

Key Steps in –'Employee Services'

1. Payment of Salaries and Wages2. Disbursement of Loans as per Company

schemes3. Full and Final settlement of employees4. Manage PF, Superannuation, TEPS, BKY,

PSY schemes5. Payment of separated / ESS Employees6. Investments , Financial Accounting

How it operates (Methods/ Practices)1. Collect attendance data / Leave Cards / slips and update in the system2. Process recovery / payment forms like ( IT declarations, third party deduction

advices, uniforms, HRA, medical reimbursement, telephones etc.)3. Process salary cheques and advice to banks4. Process Loans / advances form (housing loan, PF loan, festival advance etc.)

and disburse loans5. Make full and final settlement of employees on retirement / separation.6. Process ESS salary & provide cheques /payment advise to banks.7. Manage schemes like TEPS, BKY, PSY.8. Provide Income certificates (form 16) to employees, Pass Financial entries, file

returns to government,

Employee services are provided by Locational finance in case of Pune, JSR, LKO plant , where as by Corp. Finance in case of non-plant locations.

Sub process : Employee Services Sub Process Ref : CVBU-EL-17-10 (version 1.1) Process Owner : Plant/Corporate Heads EPM Linkage– CVBU-EL-17 (Finance &


Inputsw Employee Payroll master

data.w Guidelines on schemes from

HRw Attendance data/leave cardw Third party (HDFC,TKSP,LIC,

PF Loan etc.) deductions advice

w Loans/savings/declaration & other forms.

Efficiencyw Employee Satisfaction Survey %


Effectivenessw Timely release of salary By Datew Timely filings of returns /schedules By Datew Accentuations of data.w Release of MIS on time. By Date

TATA Motors, CVBU Employee Services

Outputsw Payments of salaries to Banksw Payment to Third Partiesw Payslips

31.3.2005 17.20

Key Steps in - 'Statutory Audit'

1. Tracking Calendars for Review of Accounts by Audit Committee & the Board .

2. Agree on Audit Scope , define time line and Roles and responsibilities .

3. Conduct Physical Verification jointly in presence of Statutory Auditors

4. Provide Schedules , Accounts and Information for Audit..

5. Clarify and Resolve Audit issues6. Carry out Adjustments arising out of Audit and

Management decisions 7. Clearance and signature of Accounts and issue Audit Reports

How it operates (Methods/ Practices)1. Decide periodicity and scope of audit. 2. Update activity and responsibility schedules in terms of units / location ,

communicate to all concerned and obtain agreement on the same 3. Provide data to Auditors for Audit Planning Memorandum .4. Ensure Physical Verification adjustments are reflected in the system .5. Obtain information from the respective unit and also monitor closing activities

and liaison with the location & the Auditors to ensure timely completion .6. Discuss Audit Report/ Issues at the respective unit level and ensure

appropriate resolution of the same .7. Submit annual report for Shareholders approval.8. Discuss , Clarify and Resolve audited issues at the location and Resolve SRM

points centrally level issues Audit and finalization of report after discussions with Auditors.

9. Presentation ,discussion and approval of Accounts in Audit Committee.

Sub process : Statutory Audit Sub Process Ref : CVBU-EL-17-11 (version 1.1) Process Owner : Plant/Corporate head EPM Linkage– CVBU-EL-17 (Finance &


Inputsw Financial Closing and Reporting

Process ( refer document) w Location TBw Schedule of Balances .w Expenditure Variance Analysisw Bank Reconciliation statements w Internal Audit Reports w Minutes of Audit Committee and

the Board .w Physical verification Reports on

Inventory and Fixed Assets .w List of Disputes casesw Internal Processes/procedures.w Audited Accounts from the

Associates and Subsidiaries.

Efficiencyw Adherence to time targets %w Compliance to audit requirements. %w No. of post audit issues. Nos


Effectivenessw Number of Audit observations Nosw Quality of Accounts -

Audited Outputs & Reports :-w TML - P&L and Balance Sheet as

per Schedule VI disclosurew TML Cash flow statement .w Related Party info as per AS18.w Accounts as per AS 21w Accounts as per US GAAPw Quarterly Accounts As per AS25w Qtly / Annual Results as per SEBI w Auditors Report on CAROw Auditors Report on Accounts and

Cash flow.w Form 20 F for filing to SEC

TATA Motors, CVBU Statutory Audit

31.3.2005 17.21

Key Steps in –'Manage Investor Relations'

1. Communicating the Company performance to the Investor community

2. Interaction with Analysts & Fund Managers3. Participation in Investors Conferences4. Expand & Diversify Investor base5. Feedback of Analyst expectations to

management6. Status of Institutional Investor participation

How it operates (Methods/ Practices)1. Monthly Sales performance/specific event2. Interact with the Analysts on the sales trend and impact on company of the related

event3. Quarterly Financial result4. Prepare the replies for expected analyst queries on the result5. Prepare quarterly review6. Email the review to investor community, simultaneous posting of review on website7. Meeting with Analysts and visiting Fund Managers8. Co-ordinate with ED’s office for meeting with Fund managers9. Prepare company presentations outlining strategy and financial performance for

Investors conferences10. Target potential investors and organize non-deal road shows for interaction with

the management11. Prepare monthly Inst. Investor holding status report12. Provide feedback to management about the analyst expectations

Sub process : Manage Investor Relations Sub Process Ref : CVBU-EL-17-12 (version 1.1) Process Owner : Corporate Finance - Investor

Relations Dept. EPM Linkage : CVBU-EL-17 (Finance &


Inputsw Financial performance (Qtrly /

Annually)w Monthly Sales Performancew Strategy directions – Internalw Analyst Reports - Externalw Performance benchmarks of

domestic and international auto companies - External

w Stock performance - External

Efficiencyw Timeliness of Communication

(after the receipt of base report) No. of days


Effectivenessw Relative Stock performance Bpsw Inst. Investor Holding % change in

holding

Outputsw Quarterly Revieww Investor Presentationsw Q & A folder for managementw Monthly Inst. Investor

Shareholding Reportw Analyst Expectations

TATA Motors, CVBU Manage Investor Relations

31.3.2005 17.22

Key Steps in –'EVA Drilldown'

1. Delineating CVBU EVA drivers between Plant & Marketing

2. LOB-wise Revenue drivers, Variable Cost Drivers

3. Basis of Fixed Cost (Mktg.) allocation4. Plant-wise Cost Drivers5. Material consumption 6. Expenses under diff heads at the shop level7. Driver drill down sheets for each sales region,

plant and business unit.

How it operates (Methods/ Practices)1. Get details like

6 VC’s sold during the period from respective manufacturing plants6 Dispatches to SPD and interplant from respective plants6 Temporary manpower details for each business unit6 Over Time utilization data from each unit.6 Expense details for each cost driver.

2. Devise driver trees for different decision making levels based on the variables under control at each level

3. Integrate financial measures of BSC into Driver Trees in terms of volumes sales, revenues,variable expenses, working capital, production, variable manufac tur ing exp. fixed costs, plant working capital and fixed assets

4. Provide Excel-based EVA Driver Tools to the operating managers to understand the impact of each variable on EVA driver contribution of individual process, prepare driver sheets for LOB & get feedback from operating units

5. Compare with budgeted driver values and last period driver values6. Evaluate all the capital budgeting proposals fulfilling certain criteria using EVA

Capital Budgeting Excel Tools.

Name of Sub process : EVA Drill Down Sub Process Ref : CVBU-EL-17-13 (version 1.1) Process Owner : Corporate Finance – Business

Planning Linkage with EPM – CVBU-EL-17

(Finance&Budgeting) Preparation Date : 31/03/04Modification 1 : 30/11/04

Inputsw LOB-wise Sales Volumesw Net Realizationsw Plant-wise model-wise sales

volumesw Material consumptionw Expenses incurredw Activity carried (SMH)w Manpower break upw Written down value of assets and

WIP

Efficiencyw Movement of EVA Drivers (Revenues

/ Costs / Capital) for different operatinglevels Rs


Effectiveness

Outputsw Revenue & Cost driver sheet for

LOBw Cost driver sheet for plant,

business unit and LOBw Quarterly Report / Half yearly

report for business unit / LOB.

TATA Motors, CVBU EVA Drilldown

31.3.2005 17.23



EPM Process Name :


CVBU-EL-18-01

CVBU-EL-18-02

CVBU-EL-18-03

CVBU-EL-18-04

CVBU-EL-18-05

New Products

Disbursements

Collection

Risk Analysis

V R Likhite

S K Jain

VEHICLE FINANCING THROUGH TMF

A I Rebello - Chief TMF

Channel Development Business Heads / RMs

TATA Motors, CVBU Vehicle Financing

Business Heads / RMs

Business Heads / RMs

31.3.2005 18.1

Process Objective-


w CVBU marketing strategy w Information on market penetration, customer

database and customer preferences w Information on customer profile from

dealers/sales staffw Pipeline sales informationw Information of competitorsw Availability of cheap funds w Information on contracts with customersw MIS on live contracts, overdues.w BHPC Unix-based IT application systemw Continual decision making on TMF margins

Ø Channel Development

Ø Offer new products

Ø Disbursements

Ø Collection

Ø Risk Management

ü Market Reach

ü Market Share

ü New schemes of finance

ü Finance provided / Contracts

completed.

ü Improved cash-flow cycleü Reduction in overduesü Growth in profits, Reduction in

NPAsü Asset repossession


Process Identification No. (PIN) CVBU- EL- 18

Process Owner


Divisions Involved

End Customer-


ISO / TS 16949 (2002) Clause Ref..

Delay in contract booking


Date of Modfn.

01/06/03

31/3/04

Modification No

00

01


New Release

Updation of changes w.r.t. organizational restructuring


BES, Pune

BES, Pune

Approved By

Vehicle Financing

Support Sales Growth of Vehicles

Mr A I Rebello Chief (TMF)

New Product sale increase, Increase in customer base

No. of contracts booked, CMS at branchesRepossessed vehicles, No. of contracts ProcessedLoan Disbursals, Penalty collected

Recovery as per Schedule (TMF)

Vehicles financed through TMF,

financing Profit, ODMR, BHPC share increase in new product

Vehicle Finance, Dealer Development, Dealer, TSS

Customers of Vehicles


Process Title-


Unit of MeasureIn-Process/ Efficiency Measure Unit of Measure Output Measure / Effectiveness Measure

Delay in contract booking

Rs.

% increase in marketshare over previous quarter, Retention of Market Share, NPAs as % of SOH

Nos.

%

Nos.

Nos.

%

Rs., %, %

31.3.2005 18.2

Process Owner : Chief (Tata Motors Finance)Process objective : Support Sales Growth of Commercial

To Page-2

Finance through TMFDealer / TSS /TMF

Review AnnualPerformanceand PrepareBudget for nextyear

Chief- TMF

-Review andDecide overallVehicleFinancingStrategy, targetsfor TMF

Chief - TMF

-Review Schemesoffered by TMF-Review and DesignIncentive andPromotionalschemes fand communicate toDealers

Chief- TMF /Sales Head / Rms

Understandfinancing needsof individualcustomer and suggestfinanciersuitable to hisneeds

Dealers/TSS

TMFSuitable

?

Financing ThroughExternal Financers

Dealer / TSS

Inputs-- CVBU’s overall strategy

(Market Expansion for vehicles, Revenue &Profit target, Increases in Non Cyclic Business),

- Financing requirements from End Customers(Territory wise, Segmentwise, Customer profitwise,

- Overall financing Industry scenario (Territory &Segment wise Players, Interest rates, Financing norms)

- Competitor activities- financial Health of Dealers,- Available of Finance and cost & risk of

financing for TMF- Dealer Network Expansion Plans- Regulatory Requirements

Yes

No


31.3.2005 18.3

-

Page 2 Vehicle FinancingProcess Owner : Head of TMFProcess objective : Support Sales Growth Vehicle

Outputs-Sale of Vehiclethrough Dealer/TSS,Recovery schedule,Hire PurchaseAgreement

Repossession andAuction of Vehicle TMF

Accident case ?

InsuranceClaiming andsettlementTMF

paymentreceived?

Follow up for BalancePaymentDealer / TMF

Fullpaymentreceived?

Review andAllocateResources(Funds, Agentsand Manpower)

Head of TMF

Manage Agents-Dealers-Collection agents-Direct Marketing Agent-Repossession agent

TMF

FinancingCustomers of TataVehicle-through TATA CP’s-through DM Agents

TMF

-Monitoring &Recovery of Finance-RecoveryPerformance review/ measurementTMF

PassingOwnership toCustomer/Insurance Co. /SuccessfulBidder

TMF

Inputs--Territory wise potentialand target for TMFFund requirementsGuidelines fromCorporate FinancePast Performance ofAgentsGovernment Regulations

Inputs-Customer Proposalthrough Dealer /TSS,Credit Availability,Vehicle FinancePolicies

Inputs-

RepaymentfromCustomers

PassingOwnership toCustomer/Insurance Co. /SuccessfulBidder

TMF

To Page-1

From Page-1

No

Yes No

Yes

No

Yes


31.3.2005 18.4

Inputsw Feedback regarding market

penetration from RMs/ sales Staffw Pipeline sales information.w Customer database from TML sales.w Information of competitors

Key Steps in – 'Channel Development'

1. Analyse the input data and information2. Based on the above analyses, open new

branches for TMF3. Appoint new service providers – dealers,

DMAs and collection agents

Outputsw Market Reachw Market Share

How it operates (Methods/ Practices)1. Study feedback on market penetration from field, pipeline sales information,

competition offerings to seek areas to focus on

2. Enhance branch network to attract more customers. Increase number of branches and appoint Regional Representatives

3. Appoint new service providers – Dealers to increase their participation for dealer driven business with TMF, Service Providers (Feet on street), MSP / CSP and Retainers for approaching potential customers & securing contracts.

Sub process : Channel DevelopmentProcess Ref : CVBU-EL-18- 01 (version 1.1)Process Owner : Business Heads/ RMsEPM Linkage – CVBU-EL-18 Preparation Date : 31/03/04Modification Date : 31/3/05


Efficiencyw Loan disbursals Rs. in crs.w Increase in customer base Nos.

Effectivenessw Vehicles financed through TMF Nos.w Percentage increase over previous Percentage quarter

TATA Motors, CVBU Channel Development

31.3.2005 18.5

Key Steps in – 'Offer New Product'

1. Study the input data including data competitors

2. Design/ evolve new offerings to attract more customers – in terms of interest rates, tenure, amount and discounts

3. Introduce new offerings for customers


1. Study the input data including data on competitors

2. Design/ evolve new offerings to attract more customers – in terms of:

6 Competitive Rates – Obtain funds at low interest rates.

Offer loan rates that are comparable with those of competitors, so as to protect the existing market

share.

6 Loan Tenure – Making financial assistance of TMF more attractive through schemes like “5year

loan tenure”

6 Loan Amount – Flexibility in the quantum of finance provided for big customers, eg. Fleet

operators.

6 Discounts – Offer waiver of charges, special rates etc. during certain festivals and occasions like

new vehicle launch, to boost TML sales & TMF disbursements.

3. Introduce new offerings for customers

Outputsw New Schemes of Financew Market Share

Sub process : Offer New Product

Process Ref : CVBU-EL-18- 02 (version 1.1)

Process Owner : Business Heads / RMs

EPM Linkage – CVBU-EL-18

Preparation Date : 31/03/04

Modification Date : 31/3/05


Effectivenessw Vehicles financed through TMF Nos.w BHCP Share Increase in new Percentage

product financing

Efficiencyw Loan disbursals Rs. in crs.w New Product Sale increase Nos.

Inputsw Information of competitorsw Availability of cheap funds w Feedback regarding customer

preferences from RMs/ sales Staffw Pipeline sales information.

TATA Motors, CVBU Offer New Products

31.3.2005 18.6

Key Steps in – 'Disbursements'

1. Appraise documents from customers2. Process the documents3. Disburse loans, if found eligible


1. Appraise documents from customers

2. Contract processing & booking – Processing contracts & verification against norms by external service provider.

3. Loan disbursements – Issuing cheques for contracts booked.

Sub process : DisbursementsProcess Ref : CVBU-EL-18- 03

(version 1.1)Process Owner : Business Heads/ RMs EPM Linkage – CVBU-EL-18Preparation Date : 31/03/04Modification date : 31/3/05


Outputsw Finance provided / Contracts

completed.

Efficiencyw Delay in contract booking Days

Effectivenessw No. of contracts booked Nos.

Inputsw Information on customer profile from

dealers/sales staff.w Information on contracts with

customers from dealers.

TATA Motors, CVBU Disbursements

31.3.2005 18.7

Key Steps in – 'Collection'

1. Arrange collection of receivables through CMS, retainers and dealers

2. In case of defaults beyond 2 months, initiate repossession activities

3. In case of persistent defaults, initiate legal action with help of legal department

How it operates (Methods/ Practices)1. Arrange collection of receivables through: dealers

6 Cash Management System – Implementation of CMS at branches for faster access to EMIs collected by dealers.

6 Retainers – Appointing retainers to follow-up with dealers/customers for overdue recovery.

6 Dealers2. Repossession activities involve taking back the financed vehicles in As Is

Condition3. Legal Action – To initiate legal action for recovery after two consequent defaults.

It also involves imposition of penalty for overdues & its collection

Sub process : CollectionProcess Ref : CVBU-EL-18- 04 (version 1.1)Process Owner : VR Likhite Chief

Operations(TMF)EPM Linkage – CVBU-EL-18 Preparation Date : 31/03/04Modification Date : 31/3/05

Outputsw Improved cash-flow cyclew Reduction in overduesw Growth in profits, Reduction in NPAsw Asset repossession


Efficiencyw CMS at branches Nos.w Repossessed vehicles Nos.w Penalty collected Rs.w Recovery as per schedule %

Effectivenessw Profit Rs. in crs.w ODMR Percentage

Inputsw MIS on live contracts.w MIS on overdues.w BHPC Unix-based IT application

system

TATA Motors, CVBU Collection

31.3.2005 18.8

Inputsw Information on customer profile from

dealers/sales staff.w CVBU marketing strategyw Continual decision making on TMF

margins

Key Steps in –'Risk Management'

1. Analyse input data for nature of violations by customers

2. Create/ update norms based on inputs

3. Deploy above norms

How it operates (Methods/ Practices)1. Analyse input data for nature of violations by customers2. Create/ update norms for lending based on analysis of inputs

received3. Deploy above norms

Sub process : Risk ManagementProcess Ref : CVBU-EL-18- 05

(version 1.1)Process Owner : SK Jain Chief Credit &

Risk(TMF)EPM Linkage – CVBU-EL-18 Preparation Date : 31/03/04Modification Date : 31/3/05

Outputsw Reduction in NPAsw Asset repossession


Efficiencyw No. of contracts Nos.

Effectivenessw NPA as percentage of SOH Percentage

TATA Motors, CVBU Risk Management

31.3.2005 18.9

CVBU-EL-19


Sub_Proc No Sub Process Name Sub Process Owner

EPM Process No:

Organisational Governance

P P Kadle - ED (Finance & Corp Affair)

CVBU-EL-19-01

CVBU-EL-19-02

CVBU-EL-18-03

Manage Organizational Governence

Manage Business Ethics

Manage Busines Risk

Board of Directors

Chief Ethics Counsellor / Location Ethics Counsellors

ED CVBU & Steering Committee.

TATA Motors, CVBU Organisational Governance

31.3.2005 19.1




New Release


Process Title

Process Objective

CVBU-EL-19



End Customer -


ISO / TS16949(2002) Ref.

Modification No.

00

01

§ Statutory Requirements

§ Audit findings.

§ Stakeholder expectations

§ Survey findings.

§ TCOC

§ GEO guidelines

ü Assurance of good

governance to stake holders.

ü Statutory compliance.

ü Enforcement of TCOC for

assuring ethical conduct of

business.

ü Checks & controls for

mitigating business risks.


Process Owner


5.4


BES, Pune

Process Team

Mr P P Kadle ED (Finance & Corp Affairs)

risk assessment by internal audit.

Accuracy of the reports

Timeliness of reviews & reports.Functions/Dept. covered under risk management. %legal compliance, risk control rating.

Percentage

Percentage

Percentage

In-Process Measure Unit of Measure Unit of MeasureOutput Measure / End Measure

No. of TCOC concerns resolved in target time

Observations made by external auditors/assessors.

No. of concerns resolved in target time100% grievances from investors resolved.100% independent directors100 % statutory complianceImprovement in MBE & OHS indicators.

Corporate/Locational Finance & Internal Audit.

Other Functions

31/3/04

31/3/05

Date of Modfn.

NoPercentagePercentagePercentage

Organizational Governance

Protect shareholder value. Ensure ethical behavior & transparency.

Ø Get and analyse inputs. Create / review governance structure,

Define responsibilities & authorities.

Ø Manage Business risk

Ø Manage Business Ethics

Ø Organize internal audits/statutory audits & surveys.

Review audit/survey findings, Procedure Improvement feedback to BOD

R-Y-GNos.

% functions covered under BRM Nos. Implementation of internal audit accepted recommendation.


31.3.2005 19.2

Process Owner : Board of DirectorsProcess Objective : Protect Share holder value.Ensure ethical behavior

and transparency

Get and analyseinputs on stakeholderexpectations,statutoryrequirements,Auditfindings, Surveyfindings

Board of Directors

-Create / reviewGovernanceStructure,Defineresponsibilities andauthorities

Board of Directors

Manage Business Risk-Identify, evaluate risk and set controls-Self Assessment by Process Owner & Report-Independent review of selectedprocesses by internal Auditand report-Corrective action by ProcessOwner

ED and Steering Commitee

Manage Business Ethics

- Establish MBE Framework- TCOC Training- Establish concern resolutionmechanism- MBE Survey

Chief Ethics Counsellor

Organise Audits

-Organise Internal / ExternalAudits / Surveys

Functional Heads

Outputs--Assurance of goodGovernance-Statutory ComplianceEnforcement of TCOC-Check & controls for mitigation of business risk

-Receive of the processand Survey Findings-Process Improvement-Feedback to BOD

Chief Ethics CounsellorChief Internal Auditor

Audit CommitteeInputs--StatutoryRequirements-Audit Findings-Share holdesexpectations-Survey findings-TCOC-GEO Guidelines


31.3.2005 19.3

Inputsww

wwwww

Stakeholder expectationsGuidelines, Rules and Regulations, Statutory requirementTata Code of ConductGroup Purpose StatementBRC/Strategy inputsAudit Committee CharterInternal Audit Charter

Key Stepsin – 'Organizational Governance'

1. Stakeholder engagement for getting expectations and concerns

2. Create/ Review Organization Structure for governance

3. Conduct meetings and reviews4. Organize audits and surveys

Outputsw Governance committeesw Remuneration policy for directorsw Infrastructure for Investor Grievancew Infrastructure for Code of Conductw Governance policies, guidelines,

reports

How it operates (Methods/ Practices)1. Stakeholder engagement – 6 Directors and Leadership continuously interacts with various stakeholders to get their expectations and concerns.

They also interacts with government agencies and take proactive inputs. Quarterly and Half-yearly meetings with investors and shareholders are organized to convey performance and to get their inputs. All other inputs such as rules and regulations, strategy, code of conduct, etc are taken and analyzed for overall governance

2. Create/ review Organization Structure for governance– 6 Board of Directors appoints Executive Directors and Sr. Executives for managing operation. Various Committees

(such as Management Committee, Audit committee of directors, Investor Grievance, Remuneration, etc ) are formed. Roles and responsibilities are defined and powers are delegated. Shareholders appoint the statutory auditors at the Annual General Meeting.

3. Conduct meetings and reviews – 6 Directors and Leadership get regular feed back reports from Functional heads and committees. They also conduct

reviews to monitor deployment of strategy and ensure statutory and legal compliance. 4. Audit Committee Management-4a. Audit committee comprises of three Independent directors. The Committee recommends appointment of the Statutory

auditors for shareholder approval. The Audit plans, Significant audit findings, adequacy of internal controls, compliance with Accounting standards and the Financial Statements are reviewed by the Committee. The Chairman of the Audit Committee is present at the AGM to answer shareholder’s queries and clarification on matters relating to audit. The Audit Committee has approved a Whistle Blower Policy for the Company which protects the Whistle blowers.

4b. To ensure independence and objectivity of the Internal Audit function, the Chief Internal Auditor reports to the Audit Committee. Internal Audit plans are based on the Business Process approach, which ensures coverage of high risk areas every year and all business processes over three years. Internal Audit findings, the action plan and its implementation are discussed and reviewed at all levels of Management. Critical observations and action plans are reviewed at the Audit Committee meeting, at least every quarter along with Actions Taken Report.

Sub process : Manage Organizational GovernanceSub Process Ref : CVBU-EL-19- 01 (version 1.1)Process Owner : Board of Directors EPM Linkage : CVBU-EL-19- Organizational

GovernancePreparation Date : 31/03/04Modification Date : 31/03/05


Efficiency:w Attendance of Directors in meetingsw No. of meetings w Timeliness of reviews and reports

Effectivenessw 100 % Statutory compliancew % independent directors w % Grievances from Investors’ resolved

%Nos%

%%%

TATA Motors, CVBU Manage Organisational Governance

31.3.2005 19.4

Inputsw Tata Code of Conduct(TCoC)w Tata GEO’s guidelines for impl. of

TCoCw The CEC, LEC & DEC feedbackw Survey Findings

Key Steps in 'Manage Business Ethics'

–

1. Establish framework for MBE2. Training and communication to all employees,

suppliers and dealers3. Concerns resolution mechanism4. Reporting and sharing5. Evaluations and improvement

Outputsw Enforcement of TCoCw MBE findingsw OHS findings

How it operates (Methods/ Practices)1. Establish framework for MBE–6 Appointment of Chief, Location & Divisional Ethics Counsellor(s). The mechanism to receive and

resolve concern is put in place at each location. CEC functionally reports to Ethics Counselor of Tata Group

2. Training and communication –6 A common training module which covers Tata Code of Conduct. TCoC training is a mandatory

training to all newcomers. After the training a pledge is signed by the employee for adopting the TCoC.

3. Concern resolution mechanism – 6 A concern resolution mechanism exists. Concerns are filed with the CEC/LEC/DEC through emails,

letters (including anonymous letters), intranet, direct lines, Toll free ethics help line, meetings with stake holders, etc. The concerns are recorded with their updated status in an MS Access database. Appropriate agencies are involved for concern resolution by the Ethics Counselors. The resolution of the concern is communicated to the complainant, if known.

4. Reporting and sharing – 6 CEC / LEC report their monthly and quarterly findings to the management as appropriate. The data are

also shared on the intranet5. Evaluation and Improvement–6 Based on the OHS and MBE survey findings, action plans for gaps found are prepared.

Sub process : Manage Business EthicsSub Process Ref : CVBU-EL-19- 02 (version 1.1)Process Owner : Chief Ethics Counselor/ Location

Ethic Counselors EPM Linkage – CVBU-EL-19 (Organizational Governance) Preparation Date : 31/03/04Modification Date: 31/03/05

Efficiencyw No of Concerns resolved to No of

Concerns posted in a yearw Concerns resolved in target time


Effectivenessw % improvement in MBE and OHS

indicators

%.%

%

TATA Motors, CVBU Manage Business Ethics

31.3.2005 19.5

Inputsw Key business process of each

function/ departmentw Business Risk Management

Guidelines from Tata Motors Audit Committee

w Standard business risk control rating chart.

Key Steps in-'Manage Business Risk'

1. Identify and evaluate Business risk , set controls2. Self assessment by process owner & Report.3. Independent review of selected processes by

Internal Audit.4. Action on Audit feedback, process review

Outputsw Documented key Proceduresw Checks and controls for mitigating

risksw Internal Audit Assessment feedback

How it operates (Methods/ Practices)1. Identify and evaluate Business risk , set controls

6 Divisional / Functional head appoints Risk Champion / co-ordinators6 Risk Champion alongwith respective process owners identifies risks (Financial, Operational, Safety,

regulatory)6 Risk Champion documents the process and defines control mechanisms to mitigate the risk and

defines review frequency.6 Risk champion along with process owner modifies the process, automates where ever possible,

puts system controls.2. Risk Management through Control Self Assessment (RMCSA)

6 At a pre-defined time interval, Individual Process owners carry out control self assessment for their processes under the leadership of their risk champion to ensure the adequacy ofcontrols. Internal Audit facilitates this process of RMCSA.

3. Enterprise wide risk management (ERM)6 An 8-step process for ERM, based on COSO-ERM framework, is now being implemented (Planned

date of completion : Mar-May 2005).4. Independent Review by Internal Audit

6 Internal Audit conducts reviews of selected processes and gives feedback to process owner and Audit Committee

5. Review and improve the process6 Process owners review the processes based on audit feedback for the process improvement

Sub process : Manage Business RiskSub Process Ref : CVBU-EL-19- 03 (version 1.1)Process Owner : ED and Steering CommitteeEPM Linkage – CVBU-EL-19 ( Organizationalovernance) Preparation Date : 31/03/04Modification Date : 31/03/05


Efficiencyw Functions / depts covered under risk

management

Effectivenessw % Legal compliancew No of Issues raised by Internal Auditw Risk Control Rating

No

%No.

Index

TATA Motors, CVBU Manage Business Risk

31.3.2005 19.6

EPM

Documents

level process sub process

appropriate process

flow of process

subprocess manual

enterprises process

sub process id

process subprocess owners

owners process chiefs