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

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How standards help in business growth

National Seminar on

“Standards for Quality and Empowerment”

How Standards Help In Business Growth

Case Study by Tata Motors


How standards help in business growth

  • Founded in 1868, India’s largest & most respected Business Group

  • Diverse businesses in 7 sectors & Operations in over 80 countries

  • Products & services exported to 85 countries

  • Group Revenue FY 2010 – Rs 319,534 Cr / $67.4 bn

  • International Income - 57% of Group revenue

  • Largest employer in private sector – over 395,000 employees

TATA GROUP


How standards help in business growth

Industry Pioneers

  • 1902Taj Palace Hotel- Luxury hotels

  • 1907Tata Steel- Asia’s First Steel Plant

  • 1910Tata Power- Hydro Power

  • 1932Tata Airlines- Civil Aviation

  • 1968Tata Consultancy Services- Software

  • 1998Tata Motors- India’s first indigenous car

    Industrial Practices Firsts

  • 1912Eight hour working day

  • 1915Free Medical aid

  • 1917 Schooling facilities for Children

  • 1920Leave with pay, workers’ PF Scheme


How standards help in business growth

7 Business Sectors

Tata Motors


How standards help in business growth

TATA MOTORS

  • Established in 1945, India’s largest automobile company

  • Revenue Rs 123,133 crin 2010-11

  • Leadership position in Commercial Vehicles

  • Global no. 3 in M&HCV Trucks, 2 in Buses

  • No. 3 in Passenger Car Vehicles in India

  • Jaguar Land Rover part of portfolio

  • Over 5.9 million vehicles on Indian Roads

  • Strong Subsidiaries / Associates - Tata Daewoo, Hispano, Telcon, Tata Technologies, European Technical Centre in UK and Tata Motors Thailand


How standards help in business growth

Product Range : A Vehicle for Every Need

  • Passenger Car Business Unit (PCBU)

    Passenger Cars

    Utility Vehicles

  • Commercial Vehicles Business Unit (CVBU)

    Goods transportation

    Passenger transportation


How standards help in business growth

How Standards Help In Business Growth ?

Case Study by Tata Motors


How standards help in business growth

Understanding Business Growth

What is Business Growth ?

What happens when Business Grows?

Case Study by Tata Motors


How standards help in business growth

Revenue in million US$

Who are we..

Key Mile Stone

Increase in Volumes

Turnaround

Domestic Growth

International Growth

Aug

1983

1994

1997

1993

2000

2005

2006

2007

2008

2009

2010

2011

2001

Phase -2 – Bus Focus

Phase -1 – Start up

Phase -3 – New Generation Buses & Trucks

Land identified by Late Mr. S Moolgaonkar

Peak Production in 90’s achieved

April’09 - OHSAS 18001:2007 certification

May’09 – Eastern Complex Prodn commenced

June’09 – NABL Accreditation

Nov’09 – CII Energy efficient award

20-Oct-92 - 1st vehicle - Model - LP 1210 / 52 (MCV BUS) rolled out

Nov’94 -Crown & Pinion Prodn started (Parts Business)

Mar’01 CNG Chassis rolled out

Feb’02 - RE Bus rolled out

April’02 – FBV Business started

Dec ’03 - Certification of ISO 14001 & TS 16949

Oct ’04 - Ace Gear Box launched

Mar’05 - Low floor bus launched

July’05 - OHSAS 18001 Aug’05 - ERC Set-up Dec’05 - HCBS prototype

May’06 - Expansion Project initiated

Nov’06 - Zero PPM in ACE Gear Box

Feb’07 - 100000th Ace Gear Box

Mar’07 - 100th Module– Integral Buses

Sep’07 - TMML DTC Bus unveiled

Oct’07 - 200000th Vehicle

Jan’08 100th DTC Vehicle

Nov’08 - 1st tender for DTC Buses completed

Dec’08 – IMEA Gold Award

Dec’08 - The Trial run of BIW Shop


How standards help in business growth

Global Market presence

Different customer preferences

Different stages of market maturity

Different cultures

Different time zones

Different regulations


How standards help in business growth

Global Manufacturing Base

India

Jamshedpur – Commercial Vehicles

Pune – Commercial and Passenger Vehicles

Lucknow – Commercial Vehicles

Pantnagar – Commercial Vehicles

Sanand – Tata Nano

Dharwad – Buses

South Korea –Heavy and Medium Trucks

Spain – High Capacity Buses

Morocco – High Capacity Buses

Thailand – Pickup trucks

UK – Jaguar Land Rover

Overseas

Decisions on setting up plants and where to make what products


How standards help in business growth

Global Vendor Base

Zf

Voith

Allision

Parker

TACO

RGB- Brazil

Increased No of vendors

Global Sourcing

Uniformity for bidding

(e-bidding, RFQ preparation)

Different regulations across countries

Periodic up-dation of standards are necessary


How standards help in business growth

Current Indian Market Scenario

Individual of Customer preferences

Changing Customer Preferences – In Trucks

SE 1613 Chassis

LPT 2515/3118 Fully built

Scenario Before FY 2000

TML was supplying Truck chassis

Scenario 2000-07

TML started supplying multi axle vehicle for more pay load & Body built with various options

4018TC/3518TC

Scenario 2007 Onwards

TML started supplying Less & high loading capacity

Brief Technical Specifications –

130 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, Semi forward cabin design

Brief Technical Specifications –

150/180 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, Multi axle with more loading capacity and in fully build condition with various options

Brief Technical Specifications –

ACE : Up to 1 Ton loading Capacity

HCV : 180 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, More no of axles with more loading capacity and in fully build condition with various options

Customer preferences changed from low to High engine Horse power along with load carrying capacity distribution to low & high capacity


How standards help in business growth

Current Indian Market Scenario

Customer preferences

Changing Customer Preferences – In Buses

1612/1618 RE Bus

LP 1512 TC Chassis

LP 1512 TC Bus

1623CGL /1624 TC

Before FY 2000

TML was supplying only chassis for buses

Scenario 2000-07

TML started supplying Customized Body built buses

2007 Onwards

TML started Low Floor & Rear Engine Buses

2009 Onwards

TML started Luxury Coach RE Buses with high end Technology

Brief Specifications –

240/230 BHP Engine, Pneumatic Suspension, Kneeling mechanism with Independent suspension, Auto Transmission, AC & NON AC Saloon , Low floor & Ultra low floor, Multiplexing advanced W/H, Fuel Options– Diesel/CNG, Advanced seating Comfort and Features equipped with high end Technology

Brief Specifications –

120/ 180 BHP Engine, Pneumatic Suspension, Independent suspension, Auto Transmission, AC & NON AC, Low floor,

Brief Specifications –

120 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle, Standard body building AC & Non AC

Brief Specifications –

120 BHP Engine, Leaf spring suspension, Synchromesh Gear Box, Rigid front axle, Rear Live axle

Customer preferences changed from low to High Passenger comfort& Capacity along with Rear Engine, Pneumatic Suspension, Low Floor, AC Saloon, Seating Comfort & Advanced Technical features which are already available in European Market




How standards help in business growth

How Standards help

Standards

Improvement

Standards

  • By acting as a wedge –

    • To avoid slipping down

  • Useful reference for decision making

  • A tool for training

  • Useful in retention of learning


How standards help in business growth

How is

Tata Motors doing it?


How standards help in business growth

Organisational Pyramid for System and Process Management



How standards help in business growth

Strategy Level

Entire CVBU looks up to the same Vision and Mission and follows the same Core Values


How standards help in business growth

Leadership system

Leadership

Strategy Level

All leaders at CVBU model themselves on the benchmark Leadership System


How standards help in business growth

System & Process Level

The Enterprise Systems Model has mapped 22 Systems of which 20 are active


How standards help in business growth

System & Process Level

The Enterprise Systems Model has mapped systems and processes across all functions of CVBU


How standards help in business growth

System & Process Level

New Product Introduction (NPI) is an example of system integration and customer focus


How standards help in business growth

System & Process Level

Process flow of NPI cuts across all areas of CVBU wherein all activities have been standardised



How standards help in business growth

System & Process Level

Like NPI, all 22 Business Systems have been further divided into processes

Total 115 processes drive the organisation


How standards help in business growth

System & Process Level

Each process has standard set of Inputs, Outputs, Key Steps and measures to evaluate its Efficiency and Effectiveness


How standards help in business growth

System & Process Level

Six Sigma

SPC

Kaizen

Why Why

Analysis

CFT

DOE

Quality Circles

Quality tools used to improve process through the PDPI Cycle


How standards help in business growth

Implementation Level

Implementation at both Product & Process levels



How standards help in business growth

Implementation -Product

9 Box Analysis


How standards help in business growth

Implementation-Process

Safety Management System

Quality Management System


How standards help in business growth

Implementation-Process

Environment Management System

Testing Standards


How standards help in business growth

Implementation: Process

SOP depicting the OCP for handling and storage of Diesel, Paint and Thinner

Material Safety Data Sheet

Standard Operating Procedures


How standards help in business growth

Implementation- Process

  • SA8000 is an international standard for improving working conditions around the world. It is based on international human right instruments and ILO conventions. Tata Motors Lucknow is going for SA 8000 - 2008 Accreditation Program.

  • ØSA 8000 is a global standard for improving working conditions around the world.

  • ØStandard and verification is compliance based, creditable, comprehensive and efficient tool for improving workplace.

  • ØSA 8000 is First auditable international standard on workers' rights, it provides definitions and parameters

  • to ensure conformance to universal human rights.

SA 8000 – 2008 has been Initiated in Lucknow


How standards help in business growth

Results of using

Standards

during Business Growth

Case Study by Tata Motors


How standards help in business growth

Revenue in million US$

@Rs 44/US$

Who are we..

Key Mile Stone

Results

2008- Frost & Sullivan –Indian Manufacturing Excellence (IMEA) Gold

2009 - Confederation of India Industries (CII) Energy Efficient unit award

2010 – Rajiv Gandhi National Quality Award for 2009 under “Best in All” category

Turnaround

Domestic Growth

International Growth

Aug

1983

1994

1997

1993

2000

2005

2006

2007

2008

2009

2010

2011

2001

Phase -2 – Bus Focus

Phase -1 – Start up

Phase -3 – New Generation Buses & Trucks

Land identified by Late Mr. S Moolgaonkar

Peak Production in 90’s achieved

April’09 - OHSAS 18001:2007 certification

May’09 – Eastern Complex Prodn commenced

June’09 – NABL Accreditation

Nov’09 – CII Energy efficient award

20-Oct-92 - 1st vehicle - Model - LP 1210 / 52 (MCV BUS) rolled out

Nov’94 -Crown & Pinion Prodn started (Parts Business)

Mar’01 CNG Chassis rolled out

Feb’02 - RE Bus rolled out

April’02 – FBV Business started

Dec ’03 - Certification of ISO 14001 & TS 16949

Oct ’04 - Ace Gear Box launched

Mar’05 - Low floor bus launched

July’05 - OHSAS 18001 Aug’05 - ERC Set-up Dec’05 - HCBS prototype

May’06 - Expansion Project initiated

Nov’06 - Zero PPM in ACE Gear Box

Feb’07 - 100000th Ace Gear Box

Mar’07 - 100th Module– Integral Buses

Sep’07 - TMML DTC Bus unveiled

Oct’07 - 200000th Vehicle

Jan’08 100th DTC Vehicle

Nov’08 - 1st tender for DTC Buses completed

Dec’08 – IMEA Gold Award

Dec’08 - The Trial run of BIW Shop


How standards help in business growth

2002-03

2003-04

2004-05

2005-06

2006-07

2008-09

2009-10

2007-08

Our Journey towards Excellence

Who are we…

1216

GROWTH

92.4

QUALITY

EBIDTA (Rs Cr)

Quality Index

49

SPEED

Standardized Processes and Team Work gave us results

66

Number of New Models introduced YoY

2010 - 11

ERM

Speed & Agility

BSC Digi

Integrated NPI approach

BSC

BSC Digi P2

Benchmarking

KTL

Matrix Structure

Review Structure

Integrated IT Systems

CoP

KM

CFT, CLT, CPT

Innovation

Quality Focus

LM

TS 16949

WCM

IQA

NABL

Ability to Innovate Low Life Cycle Cost Solutions

(Cost of Ownership)

Six Sigma

CTQ

Quality Tools

SQDCM

Growth Focus

OHS

Expansion Project

IBF

Eastern Complex

ICR-2

TMML

OHSAS:2007

SQDCM

OHSAS

Safety Kaizen

Behaviour Based Safety

Point Leaders

Safety

Alert Card

Evacuation Drill

EL-11-07

Safety Committee

Safety BM

OHS Policy

Daily Insp

EPM Version 1

EPM Version 3

EPM Version 6

EPM Version 8

EPM Version 10


How standards help in business growth

The Engagement Effect

Recognition of Our Efforts

FY 10-11 Rajiv Gandhi National Quality Award (RGNQA) in the “Best of All Category”

FY 08-09 India Manufacturing Excellence Award (IMEA)


How standards help in business growth

Recognition for Our Efforts

National Energy Conservation Award by Bureau of Energy Efficiency on 14th December 2010 at New Delhi

Silver Award by GreenTech Foundation at the 11th Global GreenTech 2010 Excellence Award at Hyderabad on 12th December 2010

Tata Motors Lucknow won the Second prize in the regional convention of INSSAN for Excellence in Mitigating Climate Change conducted by INSSAN - Eastern India Chapter at Jamshedpur in April’2010

Excellent Energy Efficient Unit Award by CII at the 11th National Award for Excellence in Energy Management 2010 on 1st & 2nd September 2010 at Chennai

Tata Motors Lucknow received the Best Assessee Award (Samman Patra) from Central Excise in 2010

Lucknow Plant bagged the NABL accreditation for its Material Engineering Lab in November 2010

Tata Motors Lucknow bagged the Second prize at Annual Regional Convention of INSSAN - Eastern India Chapter on 23rd -24th April 2010