ASSIGNMENT

ELEMENTARY OPERATIONS MANAGEMENT

Research Company- TATA Motors

SUMITTED TO:
NIRANJAN MUDLIAR SIR.

SUMITTED BY:
Devendra Patidar (JLU05965)
Manoj Wankhede (JLU05970)
Bhanu Pratap Singh (JLU05962)
TRANSFORMATION PROCESS AND PRODUCTIVITY OF
TATA MOTORS:
Tata Motors Group (Tata Motors) is a $35 billion
organisation. It is a leading global automobile manufacturing
company. Its diverse portfolio includes an extensive range of
cars, sports utility vehicles, trucks, buses, and defence
vehicles. Tata Motors is one of India's largest OEMs offering
an extensive range of integrated, smart, and e-mobility
solutions. TATA Motors are successfully driving the
transformation of the Indian commercial vehicle landscape
by offering customers leading edge auto technologies,
packaged for power performances and lowest life-cycle costs.
Their automobiles are designed for superior comfort,
connectivity, and performance.
Transformation Process:
In the case of Tata Motors, inputs of organisation are raw
materials such as seats, steering, clutch pads, etc. which will
help to produce or assemble car, information such as
production process, People such as engineers, designers who
will help to design and assemble car, facilities and machinery
for the production and assemble different parts of the car.
The transformation process includes manufacturing and
service operations which is must to change inputs into
outputs which are different types of automobiles such as, car,
bus, truck etc.
Influence of Demand:
When the above viewpoint of the process might be used
throughout the organisation, it is not necessary that it should
be follow in the same manner all the time. There are
variations in the processes which need to be considered.
Four characteristics of demand which are known as ‘four V’s’
processes which affect the method of processes are required
to be managed. The four V’s are Volume i.e., how many
products or services produced via operations, Variety i.e.,
how many different types of products or services produced
by operations, Variation i.e., amount of level of
demand changed over time and Visibility i.e., amount
of visibility of its processes to its customers. The product
transformation process might need to be differentiated
depending on the effects of above four V’s. Four V’s
dimensions are important in assuming how easy it is for
operation management to operate at low cost.
 Volume: In terms of Volume Tata Motors is high. Volume
stands for number of productions or services via operations.
As a huge company in automobile industry volume of
production of vehicles through operations is high.
 Variety: In terms of Variety Tata Motors is medium to
high. Variety stands for different types of products or services
produced by the operations. As a largest Indian automobile
company Tata motor is manufacturing wide range of vehicles
except two wheelers and luxurious cars. There are mainly
deals in different kinds of commercial vehicles, passenger
vehicles, army vehicles etc.
 Variation: In terms of Variation Tata Motors is Medium to
low. Variation stands for amount of level of demand change
over time. Demand for the Tata Motors vehicles are
predictable. Therefore, it is easy for the operations to
produce the products or services according to demand
however if there is any change in demand over time Tata’s
operations are able to meet such change.
 Visibility: In terms of Visibility Tata Motors is medium to
low. Visibility stands for amount of visibility to its customer. It
is unlikely that whole process is visible to its customer
however up to certain level it is possible for e.g., Via internet
or phone ‘track and trace’ facility customer can have visibility
of where their order is, or they can check the availability of
products. Thus, visibility of processes is low to customers
compare to dealers or agents in Tata motors.
Suppliers:
The Company has an extensive supply chain for procuring
various components. The Company also outsources many
manufacturing processes and activities to various suppliers.
In such cases, it provides training to external suppliers who
design and manufacture the required tools and fixtures.
The Company’s associate company, Tata Auto Comp Systems
Ltd., or TACO manufactures automotive components and
encourages the entry of internationally acclaimed
automotive component manufacturers into India by setting
up joint ventures with them.
The Company's other suppliers include some of the large
Indian automotive supplier groups with multiple product
offerings, such as the Anand Group, the Sona Group, and the
TVS Group, as well as large multinational suppliers, such as
Bosch, Continental, Delphi, and Denso, Johnson Controls
Limited for seats and Yazaki Auto Comp Limited for wiring
harnesses. The company focuses on optimizing procurement
and sourcing certain company’s raw materials and
component requirements or co-development of various
components such as engines, axles, and transmissions from
these suppliers.
 The Company import some components that are either not
available in the domestic market or when equivalent
domestically available components do not meet company's
quality standards. The Company also imports some products
based on competitive pricing and capacity/lead time where
domestic suppliers are not able to meet Company's
requirements.
Automation in Transformation Process:
TATA Motors uses different equipment and processes, and
the level of automation are really high tech. It reduces the
error of human intervention; high automation leads to better
safety and few incidents of accidents happening. By doing
this the quality is improved by a good amount. At every
station, the material is prepared in advance, the person on
the line does not have to keep looking for materials. Benefits
of this production line are having very few chances of error
and high degree of accuracy.
Value Adding Process:
TATA Motors is mainly focused on specific areas of research
and development and engineering by which it can strengthen
its Horiz0Next Philosophy, a three-horizon strategy. Their
strategy changes according to the type of the car the plant is
producing. In the case of passenger cars, more emphasis is
paid on creating stunning designs, connectivity, and
pleasurable driving experience. Therefore, the research and
development portfolio are aligned towards developing
technologies, core competence and skill sets in these specific
domains to secure impactful delivery of the future product
with leading product attributes.
The Company uses a three-horizon strategy for managing its
engineering and technology initiatives. The components of
this three-horizon strategy are:
 The first-horizon involves products that it is currently
working on to bring to the market.
 The second-horizon involves researching known
technologies that the Company may not be entirely familiar
with at the present time but are needed for future products.
 The third-horizon is for ‘blue sky' research projects and
projects aimed at fostering a culture of innovation in the
company.
Lead Time:
 Manufacturing-
The divisions and assembly lines vary in accordance with the
type of the car the plant is manufacturing. For example, there
are separate assembly lines for Heavy Commercial Vehicles
(HCVs), Medium Commercial Vehicles (MCVs) and Light
Commercial Vehicles (LCVs), Utility vehicles and for
Passenger Cars (Indica and Indigo). All plants apply the best
manufacturing systems such as Just-In-Time, KANBAN etc.
The Passenger Car Division, for example, executes the entire
process of car manufacture over five shops – the engine
shop, the transmission shop, press and body shops, paint
shop and the trim and final assembly shop. These shops are
fully automated and there are robots at many places used for
picking and placing to automate the process. After the car is
completely assembled, it goes through several quality checks
like wheel alignment, sideslip test, brake test, shower test,
and a short test run before it is ready for dispatch.
 Supply
Tata Motors is in the process of setting up at least seven
regional stockyards as it seeks to move to a leaner and
efficient distribution system. This will ensure its vehicles
reach dealers much faster and delivered to buyers in a
maximum of 3 days.
Irrespective of which part of the country a vehicle is booked
from, a regional stockyard will ensure the vehicle reach the
customer within 3 days of booking. This will bring down the
inventory carrying costs substantially and these stockyards
will be set up and managed by third-party logistics providers.
The initiative is part of the company's strategy to focus on
retail sales, and this will lead to a leaner and efficient system
based on demand forecast and big data.

Productivity:
TATA Motors characterizes its productivity with the
following aspects of management:
1. HUMAN RESOURCES MANAGEMENT: The Company
considers its human capital a critical factor to its
success. Under the aegis of Tata Sons and the Tata Sons
 promoted entities, the Company has drawn up a
comprehensive human resource strategy, which
addresses key aspects of human resource development
such as: The code of conduct and fair business practices.
A fair and objective performance management system
linked to the performance of the businesses which
identifies and differentiates employees by performance
level.
Creation of a common pool of talented managers across
Tata Sons and the Tata Sons promoted entities with a
view to increase their mobility through job rotation
among the entities. Evolution of performance-based
compensation packages to attract and retain talent
within Tata Sons and the Tata Sons promoted entities;
and Development and delivery of comprehensive
training programs to impact and improve industry-
and/or function specific skills as well as managerial
competence.
2. RAW MATERIAL MANAGEMENT:
The company considers materials management as a
major part of productivity and ensures materials going
into production are correct and of high value which
helps to keep production running smoothly and
improves overall finished goods quality, such as:
The company has long-term purchase agreement with
their suppliers and has taken initiatives to reduce the
material consumption through and value analysis
techniques. The Company uses an e- sourcing initiative
to procure supplies through reverse auctions. They use
 external agencies such as third-party logistics providers.
This has resulted in space and cost savings.
TATA Motors has an established a sixteen-step supplier
quality process in order to ensure the quality of
outsourced components. They also maintain a stringent
quality assurance program that includes random testing
of production samples, frequent recalibration of
production equipment and analysis of post- production
vehicle performance, as well as an ongoing dialogue
with supplier partners to eliminate production defects.
3. TECHNOLOGICAL MANAGEMENT:
The Company’s enhanced focus is on developing
products/services and action plans that are based on safer,
smarter, and cleaner technology. The powerful action
plans are also aligned towards meeting this requirement
such as: Product design quality and manufacturing quality
is enhanced by implementing tools & processes like
Dimensional Variation Analysis (DVA), while product design
and manufacturing process simulations.
4. RESEARCH AND DEVELOPMENT:
Aiming to become the most aspirational auto brand by
2024, Tata Motors is investing heavily in research and
development. In 2019-20, the auto giant spent a record 7
per cent of its standalone revenues on R&D. The Company
is mainly focused on specific areas of research and
development and engineering by which it can strengthen
their strategies that changes according to the type of the
car the plant is producing. The research and development
 portfolio are aligned towards developing technologies,
core competence and skill sets in these specific domains to
secure impactful delivery of the future product with
leading product attributes.

OPERATIONS:

Jaguar Land Rover

Range Rover (L405)

Land Rover Defender

Jaguar Land Rover PLC is a British premium automaker

headquartered in Whitley, Coventry, United Kingdom, and
has been a wholly owned subsidiary of Tata Motors since
June 2008, when it was acquired from Ford Motor
Company of USA. Its principal activity is the development,
manufacture and sale of Jaguar luxury and sports cars
and Land Rover premium four-wheel-drive vehicles.
Jaguar Land Rover has two design centres and three
assembly plants in the United Kingdom. Under Tata
ownership, Jaguar Land Rover has launched new vehicles
including the Range Rover Evoque, Jaguar F-Type, the Jaguar
XE, the Jaguar XJ (X351), the second-generation Range Rover
Sport, and Jaguar XF, the fourth-generation Land Rover
Discovery, Range Rover Velar and the Range Rover (L405).

Land Rover Discovery Sport

JD Power, of the US, rates Land Rover and Jaguar as the two
worse brands for initial quality.  The Jaguar F-Pace
made Consumer Reports February 2019 list of the 10 Least
Reliable Cars. The editors cited "electronics, drive system,
power equipment, noises and leaks" as problematic aspects.
The Jaguar Land Rover subsidiary was struggling by 2019 and
Tata Motors wrote down its investment in JLR by $3.9 billion.
Much of the financial problem was due to a 50% drop in sales
in China during 2019, although the situation was improving.
Still, Tata was open to considering a partnership with another
company according to a statement in mid-October, as long as
the partnership agreement would allow Tata to maintain
control of the business. The company ruled out the possibility
of a sale of JLR to another entity.