LSCM Project

7/30/2019 LSCM Project

1/25

SUPPLY CHAIN MANAGEMENT

of TATA MOTORS AND MARUTI

SUZUKI

SUBMITTED BY

Amar Jyoti (12PGDM128)

Ankur Chaturvedi(12PGDM131)Manish Kumar(12PGDM87)

Michael Mangalam(12PGDM89)

Subham Gupta(12PGDM111)


2/25

OBJECTIVES OF STUDY

Study of vehicle manufacturing processes

from raw material to finish vehicles.

Comparision of supply chain management at

tata motors and maruti suzuki


3/25

1 Indias largest automobile company, with revenues of US$ 34.575 billion (2012)

2Winning products in the compact, midsize cars and utility vehicle segments

3

The Companys 60000 employees are guided by the vision to be best in the manner inwhich we operate, best in the products we deliver and best in our value system and ethics

4Worlds fourth largest truck and second largest bus manufacturer

5The first company from Indias engineering sector to be listed in New York Stock Exchange

6

Subsidiaries are Tata Daewoo, Tata Hispano, Tata Technologies, Jaguar and LandRover


4/25

Plant Location and production CapacityLocation Type of vehicle

manufactured

Production

Capacity(Lakh/PA)

Pune Passenger Cars (Indica,

Indigo, Marina, Indica Vista)

2.7 L

Pune Commercial Vehicles (MCVs

and HCVs, LCVs, Utility

vehicles)

2.5 L

Jamshedpur Trucks & Special Purpose

Vehicles

1.08 L

Lucknow Buses 0.6 L

Pantnagar(Uttarakhand) Mini Truck (Ace), PassengerCarrier (Magic)

2.25 L

Sananand Tata Nano

Hereafter we have limited the scope of study to a single location which is

Passenger Car Business Unit (PCBU), K Block, Pune


5/25

Competitive Priorities for TATA Motors

1 Maintaining global standards to tackle competition

2

For luxury bus segment: its major focus is on the fully-built vehicle

delivery rather than supplying only chassis

3 Diversified suppliers, eg. NANO car has more than 128 suppliers

4

Sourcing through reverse auction which includes evaluating suppliers,

identifying new suppliers, leading to better supply management

5

To cut costs, Tata Motors tried innovative techniques such as zero-basedcosting

6

Believed in developing strong in house design, engineering, and

manufacturing capabilities


6/25

Management Hierarchy of PCBU, Pune

HR

Formalized selection, evaluation, and payroll processes

Records basic selection, training and development, capabilities and skills management,compensation planning records etc.

Engineering& Research

Centre

The facility includes - improving Engine Performance, Reducing Emissions, Test Tracks, Designingand Styling and Safety

Technical &Productivity

Services

necessary technical assistance for smooth production in the plant

Functions includes setting up new assembly lines, seeking prospects for modifications in the

current assembly lines, etc.

Production

Group carries out production as per the production plan prepared by production planning andcontrol (PPC)

VendorDevelopmen

t

Small parts are outsourced to various vendors, due to various in-house constraints

Identifies the appropriate vendor and ensures proper quality standards


7/25

Production Strategy Followed in TATA

Motors

Passenger Car Division in 'K' block executes the entire process ofcar manufacture over five shops

Engine shopTransmission

shop

Press and

body shopsPaint shop

Assembly

shop

1

The shops are fully automated ensuring that there is minimal chance for error in the

manufacturing processes

2Production Strategy being implemented in Tata Motors is Make to Stock

3

Demand forecast is done by the marketing team and accordingly a production plan is

prepared

4

The cars produced are tested thoroughly and after successful completion, they are stored

in large free space available in the company premises

5

Some special purpose vehicles such as utility vehicles for defence, mini-ambulance for

hospitals are made as per the order


8/25

Plant Layout of PCBU, Pune

Machine Shop

Engine Shop

Press Shop

Paint Shop

TCF


9/25

Quality Management

1 Has introduced cleaner engines

2

First Indian company introduce vehicles with

Euro I and Euro II norms

3

Manufacturing stage - regulars quality audits

held by in-house auditors

4

Post manufacturing -stringent testing standards

such as shower test, wheel balancing


10/25

ENVIRONMENTAL MANAGEMENT

1

Reduce the emission levels of vehicles in full complianceof the regulatory norms

2

proactively work with the industry, Government, other

related industries & agencies to bring in internationalpractices

3

Conserve natural resources and energy by minimizingtheir consumption & wastage

4

Certified with ISO 14001 : 1996 for EnvironmentalManagement System (EMS)


11/25

WORK MEASUREMENT

1

first Indian Company to introduce the Balance Scorecard System inautomotive sector in India

2

Balance Scorecard System - incorporates SQDCM (Safety, Quality,

Delivery, Cost and Morale)

3

Suggestion scheme - any employee irrespective of his cadre can suggest

an improvement in the work place ; if approved, employee gets rewards

points

4

Gift voucher for achieving certain number of points

5Bonus on certain festive occasion


12/25

VALUE ENGINEERING

1 Continuous efforts are made to reduce the cost of

service

2

Rejection of input parts received from vendors -

closely monitored

3

Vendors penalised if rejection exceeds beyond the

defined limits

4

consumption of electricity, water, LPG, Compressed

air - continuously monitored ; steps taken to reduce

their consumption


13/25

MATERIAL MANAGEMENT

Tata Motors uses SAP 4.6C Material

Management (MM) module for:

materials planning and control,

purchasing,

goods receiving,

inventory management, invoice verification.


14/25

REVERSE ENGINEERING

Reverse engineering is a process bywhich the design of a product is

analysed or re-created using a

physical part or mock-up as a

starting point. This becomes truly

valuable when trying to extract thedesign intent from a handmade

model

Tata motors does reverse

engineering of its competitors cars

in an effort to constantly improve

on the design of its cars


15/25

Problems identified

Waste management and hygiene issue

Major environmental wastes: machine lubricants and coolants;

aqueous and solvent cleaning systems; paint; and scrap metals

and plastics. Hazardous cleaning chemicals very common, requirespecial waste management arrangements.

Efficient utilization of Human resource

Efficient utilization of human capital is always a questionable task.On comparing the human capital utilization with that with the

best in the business, TATA motors was found lagging behind.


16/25

Tools management

Lot of time wasted in tools movement from the stock to theshop floor. Whenever a tool is broken or is declared useless,

than the assembly line has to stop till the new

Unorganised flow path

The place for each item was not clearly labelled ordemarcated. Items not arranged in a manner that promotes

efficient work flow (eg : Workers had to bend repetitively to

access materials) Each tool, part, supply, or piece of

equipment was not kept close to where it will be used

Untidy shop floor with dusts in the weld shop and press

shop

Customer complaints and defects in products after delivery


17/25

OUR RECOMMENDATIONS

Adoption of Kaizen

The Kaizen Management System addresses all aspects that

contribute to company results including quality, costs, logistics,

staff motivation, safety, technology

The entire process chain from supplier via the internal

customer to the final customer is therefore taken

available tools are used to eliminate all wasteful activities


18/25

Adoption of six sigma methodology

6 sigma is a structured statistical methodology that can be

used to measure the quality of the service and performance.

6 sigma is 3.4 Defects per million opportunities(DPMO).

The accuracy is at a level of 99.9997%.

Six Sigma is a process improvement set of tools and strategies


19/25


20/25

Device to clean foot - Before coming to the assembly

lines and the shop floors everyone should clean their

shoes


21/25


22/25


23/25

Efficient utilization of space


24/25

Focus on hygiene

Problems in implementing kaizan


25/25

Problems in implementing kaizan

managementresistance

managers may find it hard to manage empowered workers

employeeresistance

this may occur, especially in situations where industrial relations have been

poor in the past. Employees may simply feel that they are being asked to do

more without extra pay

cost oftraining

- attitudes will need to change and the type of training required to achieveattitudinal change will be expensive and lengthy.

justifying thecost

the costs of implementing a kaizen programme, in terms of both training

and lost production, will be clear. The benefits will be unknown until the

programme is up and running.

Unfortunately there are a number of barriers that must be overcome in order

to implement a kaizen programme.

LSCM Project

Documents