TBEM Application 2012 Mytml

MANAGEMENT SUMMARY
Africa. The plant can assemble, from semi knocked down (SKD) kits,
light, medium and heavy commercial vehicles ranging from 4 - 50
tonnes. Tata Motors is also expanding its international footprint,
established through exports since 1961.
The company's commercial and passenger vehicles are already
being marketed in several countries in Europe, Africa, the Middle
East, South East Asia, South Asia, CIS, Russia and South America.
It has franchisee / joint venture assembly operations in Bangladesh,
Ukraine, and Senegal.
The Company has recently setup a plant in Myanmar with the
support of a LoC from the Indian Govt to manufacture heavy trucks
from Knocked down kits. The plant is now owned and operated by
the Govt of Myanmar.
The foundation of the company's growth over the last 65 years is an
understanding of economic stimuli and customer needs, and the
ability to translate them into customer-desired offerings through
leading edge R&D. With over 4,500 engineers and scientists, the
company's Engineering Research Centre, established in 1966, has
enabled pioneering technologies and products. The company today
has R&D centres in Pune, Jamshedpur, Lucknow and Dharwad in
India, and abroad at South Korea, Spain, and the UK. With its R&D,
Tata Motors developed the first indigenous Light Commercial
Vehicle, India's first Sports Utility Vehicle and, in 1998, the Tata
Indica, India's first fully indigenous passenger car. Within two years
of its launch, the Tata Indica became India's largest selling car in its
segment. In 2005, Tata Motors created a new segment by launching
the Tata Ace, India's first indigenously developed mini-truck.
Tata Motors is equally focused on environment-friendly technologies
in emissions and alternative fuels. It has developed electric and
hybrid vehicles both for personal and public transportation. It has
also been implementing several environment-friendly technologies
in manufacturing processes, significantly enhancing resource
conservation.
It is also committed to improve the quality of life of adjoining
communities by working on thrust areas like employability,
education, health and environment. Its CSR initiatives touch the
lives of more than a million citizens. The company's support on
education and employability is focused on youth and women. It
ranges from schools to technical education institutes to actual
facilitation of income generation. In health, the company's
intervention is in both preventive and curative health care. The goal
of environment protection is achieved through tree plantation,
conserving water and creating new water bodies and, last but not the
least, by introducing appropriate technologies in our vehicles and
operations for constantly enhancing environment care.
Commercial Vehicles Business
Commercial Vehicles are harbingers of a country's economic
prosperity. Road transport in India has steadily improved its share
over rail in the past 50 years. This has led to continued growth in
numbers and variety of commercial vehicles. It has grown from
157,000 sales in 2000-01 to 889,578 in 2011-12.
Attractiveness of Indian commercial vehicle industry in India has
lured several leading European, American & Japanese brands.
Some of them are already operational or setting up their shop
shortly. Commercial Vehicle industry is expected to grow to 1.6
million by 2014-15 with large part of the growth expected in the small
vehicles particularly for passenger movement in towns and villages.
The primary drivers of growth are, improving road connectivity,
especially between smaller towns and villages; urbanization of mind
with exponential growth in mobile telephony (850+ million
subscribers) and television; increased economic activities with high
GDP growth.
The Tata Group comprises of over 90 companies in seven business

sectors. Tata Motors Limited (TML) is India's largest automobile
company, with consolidated revenues of Rs.1,65,655 Crores (USD
33 billion) in 2011-12. It leads the engineering sector and enjoys a
flagship position within the group.
It is the leader in commercial vehicles in most segments, and among
the top three in passenger vehicles with winning products in most
segments in India.
The Managing Director, supported by a Senior Leadership team
representing all the business functions and Heads of business play a
pivotal role in shaping the strategy of TML. The Strategy is then
discussed and iterated in a Committee comprising of the Chairman,
Vice Chairman and the MD.
The strategy is then discussed in the Executive Committee of the
Board (ECOB) comprising a few of the independent Directors before
being taken to the Board of Directors for approval.
Once approved, the strategy is evaluated periodically for changes in
the macro-environment or the industry which may impact the plan.
These updates and any revisions in strategy arising thereof are also
then discussed with the ECOB and the Board before being finalised
for implementation.
Established in 1945, Tata Motors' presence cuts across the length
and breadth of India. Over 7.5 million Tata vehicles ply on Indian
roads, since it first rolled out in 1954.
Tata Motors, the first company from India's engineering sector to be
listed on the New York Stock Exchange (September 2004), has also
emerged as an international automobile company.
In 2004, it acquired the Daewoo Commercial Vehicles Company,
South Korea's second largest truck maker. The rechristened Tata
Daewoo Commercial Vehicles Company has launched several new
products in the Korean market, while also exporting these products
to several international markets. Today two-thirds of heavy
commercial vehicle exports out of South Korea are from Tata
Daewoo.
The company's manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar
Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat) and
Dharwad (Karnataka). Following a strategic alliance with Fiat in
2005, it has set up an industrial joint venture with Fiat Group
Automobiles at Ranjangaon (Maharashtra) to produce both Fiat and
Tata cars and power trains. The company's dealership, sales,
services & spare parts network comprises of over 3,500 touch points.
In 2005, it acquired a 21% stake in Hispano Carrocera, a reputed
Spanish bus and coach manufacturer, and subsequently acquired
the remaining stake in 2009. In 2006,Tata Motors formed a joint
venture with the Brazil-based Marcopolo, a global leader in bodybuilding for buses and coaches to manufacture fully built buses and
coaches for India and select international markets.
In 2006, it entered into a joint venture with Thonburi Automotive
Assembly Plant Company of Thailand to manufacture and market
the company's pickup vehicles in Thailand. The Thailand plant of
Tata Motors began production of the Xenon pickup truck in 2008.
Through subsidiaries and associate companies, it has operations in
the UK, South Korea, Thailand, Spain and South Africa. Among them
is Jaguar Land Rover, a business comprising the two iconic British
brands that was acquired in 2008. JLR supports two engineering and
design facilities and three manufacturing plants (Solihull, Castle
Bromwich & Halewood) in the UK.
Tata Motors (SA) (Proprietary) Ltd., Tata Motors' joint venture with
Tata Africa Holding (Pvt) Ltd., has its assembly plant in South Africa
at Rosslyn, north of Pretoria, in the Gauteng province of South
I
TATA MOTORS
Tata Motors Commercial Vehicle Business Unit (CVBU) is the

market leader in India with market share of about 60% followed by
Mahindra (19%) and Ashok Leyland (10%). It has the widest product
range from a small 0.6 ton truck to a 49 ton truck for diverse
applications and a 7 to 56 seater passenger carriers for buses and
coaches.
Medium and Heavy trucks continues to be single largest segment
in revenue terms. Despite the segment being cyclical in nature it has
been seen as attractive by foreign OEMs like Volvo, Mercedes owing
to less number of players and higher margins. However, they are
currently present mostly in the high end with a niche market play.
Tata Motors always had a leading position with a market share of
more than 60%. With introduction of its new range, Prima trucks,
Tata Motors expects to revolutionize the market in future with world
class quality trucks at very competitive prices. The major
competitors in this segment are Mahindra Navistar, Ashok Leyland
(20.2%), AMW, MAN, Volvo-Eicher (11.2%), Bharat Benz
(Mercedes).
Fig. MS-01
Fig. MS-03
Piaggio, Force and Mahindras have also launched small 4 wheeler

vehicles to protect their declining share in the segment. TML has
more than 72% market share in the segment.
Bus Segment is insulated from cyclicality of the Commercial vehicle
industry. So, it becomes an important segment to de-risk the
business. Intercity coaches, sub-urban buses and city buses are
expected to witness a high growth with improving highways, better
rural road connectivity and implementation of Bus Rapid Transport
System in several cities in India.
Tata Motors has taken a major shift in its strategy from being a mere
supplier of bus chassis to fully built buses over the last decade. It has
partnership with Marcopolo, Brazil and 100% ownership of Hispano
in Spain to offer world class buses. Major competitors in light buses
are local players- Swaraj Mazda, Eicher and Mahindra whereas in
bigger buses and coaches Ashok Leyland is the major competitor. In
high end coaches Volvo, Mercedes and Mahindra Navistar are
present.
Medium and Heavy Tata Trucks
Magic IRIS
Light Commercial truck (LCV), segment is relatively insulated

from the cyclicality of the CV industry. Tata Motors has a sustained
leadership with market share of about 70.2%. Volvo Eicher (12.5%),
Mahindra (11.7%) and Swaraj Mazda are the major competitors.
Tata Motors recently unveiled its new generation LCV, 'Ultra' which
will offer higher payload with better fuel efficiency and longer service
intervals for superior operating economics.
Small Commercial truck segment was created by Tata Motors with
introduction of Tata Ace, India's first mini truck. Since its introduction
in 2005 mini truck segment has shown explosive growth and has
expanded this segment of the CV market and has significantly
dented the large three wheelers.
Fig. MS-02
Fig. MS-04
II
Buses
Going forward Tata Motors aims to maintain its market share at 65%
in India. In exports, it had started a focused effort in growing its
volumes from 2002-03, as a result of which it grew at 40% CAGR till
2011-12 to 41692 units.
Tata Motors international business has laid out a plan and aims to
grow by strengthening its position in existing markets (SAARC and
Africa) and enter high volume and high growth markets (Russia,
Vietnam, Indonesia, Brazil, etc.).
Passenger Cars Business:
India represents one of the world's largest and fastest growing
automobile markets. De-licensing in 1991 unleashed the latent
demand in the Indian market and also attracted the global car
manufacturers to set up their shop in India. Indian passenger car
industry has grown with a CAGR of 10.3% over the last 10 years from
734,000 units in year 2000 to 24,66,814 units in 2010-11. The Indian
passenger car market is now ranked seventh globally in terms of
market size. However, with a car density of only 13 cars per
thousand as compared to 400+ in developed markets leaves a huge
growth opportunity for cars in India.
The overall robust growth in India during this decade has been
Light Commercial truck (LCV)
Tata Motors also launched 0.6 ton Ace Zip to further strengthen its
position and compete against with the small 3 wheelers. Competition
came out with their equivalent products seeing the high volume
potential of the segment, especially the 3 wheeler companies, like
Piaggio, Force Motors. Mahindra and Mahindra has emerged as the
number 2 player in this segment. The growth is expected to be high
with continued investments in rural road connectivity.
Passenger carriers on the Ace and Ace Zip platform - Tata Magic
and Magic Iris respectively - have also been introduced in the small
passenger carrier segment as a substitute to big and small
3 wheelers which are run as shared and non-shared means of
passenger transportation.
In response to the same the traditional 3 wheeler companies, Bajaj,
TATA MOTORS
Small Commercial Trucks & Small Passenger Carriers
II
Manza. Tata Motors is the number 2 player in this segment next only
to Maruti which leads the segment with its Dzire and SX4 models.
Tata Motors sold 77733 sedans in 2011-12 with a market share of
17.2%.
Utility Vehicles: The Utility Vehicle segment accounts for nearly
14.3% of the Indian passenger car market with sales of 377,024
units (2011-12). It has witnessed a CAGR of 9% over the past five
years. Top 3 players - M&M, Toyota, Tata Motors - account for nearly
84.7% of market share.
Tata Motors journey of Utility vehicles began with the launch of Sumo
in 1994 followed by Safari in 1998. In October 2010, Tata Motors
launched India's first Indian crossover Tata Aria packed with best in
class features. Tata Motors share in the segment stood at 12.7% in
year 2011-12 with sales of 47,775 units.
Jaguar & Land Rover: In June 2009, the exciting new range of
premium luxury vehicles from Jaguar and Land Rover were
introduced in the Indian market. Both the Jaguar and Land Rover
brands are highly regarded and have a long heritage in their
influenced by changing trends in income demographics, increased

availability of finance, urbanisation, increased rural consumption,
road infrastructure development, socio-cultural changes, evolution
of customer preferences, regulatory impacts, technological
changes, and increasing competition.
Even in the wake of economic slowdown in 2008-09, the industry
sustained its positive growth momentum mainly because of strong
domestic demand for passenger cars. These market factors and
India's attractiveness as a low cost manufacturing base have
attracted global giants seeking to gain a foothold in the region
through setting up of new plants and forming joint ventures (JVs)
with local firms.
Fig. MS-05
Hatchbacks
Indica Vista
Indica
Fig. MS-07
Nano
Tata Motors Passenger Car Business Unit:

Tata Motors sales, since it entered the passenger car segment in
1999, crossed 3 million cars last year. Tata Motors overall domestic
share in passenger cars in 2011-12 was 14%, and Maruti Suzuki
(38.1 %) and Hyundai Motors (14.7%). The past growth and strong
market position of TATA Motors has been supported by product
innovations, value for money proposition and a strong network of
dealerships across India.
Hatchbacks : Hatchbacks in India comprise of 57.3% of passenger
car market, including the Utility vehicles. It has witnessed CAGR of
more than 10% over the last 5 years. This segment has witnessed
the most intense competition with products from Maruti Suzuki (800,
Alto, A-star, Estilo, Ritz, WagonR, Swift), Hyundai (Eon, i10, i20,
Santro), Chevrolet (Aveo-UVA, Beat, Spark), Fiat (Punto), Ford
(Figo), Honda (Jazz), Nissan (Micra), Skoda (Fabia), Toyota (Liva).
Tata Motors developed India's first fully indigenous passenger car,
Indica, in 1998. By doing so, it catapulted India into an elite group of
just 10 nations that have designed and manufactured their own car.
Tata Motors also unveiled the world's lowest priced car, 'Nano' in
January 2008, this is considered as one of the greatest innovations
in the automobile industry. In August 2008 new generation Indica
Vista was launched. Tata Motors sold 180,000 hatchbacks in the
year 2011-12 with a market share of 11.9% in an intensely fought
segment having 26 offerings by different manufacturers.
Sedans: The segment contributes to 17.1% of overall passenger car
sales in India, and has grown with a CAGR of 13% in the last 5 years.
The major players offering products in this segment are Maruti, Tata
Motors, Hyundai, Honda, Volks Wagon, Ford, Toyota and Nissan,.
Tata Motors, after the huge success of Indica, launched the sedan
Indigo, station wagon Indigo Marina extending its platform
innovatively. Tata Motors also launched a subcompact sedan Indigo
CS in 2008, which received a very good response from the market. In
October 2009, PCBU launched its new generation sedan, the
Fig. MS-06
Manza
Sumo Gold
Safari
Xenon XT
Grande MK II
Aria
Venture
respective segments. Indian passenger car industry has come a

long way from the year 2000 when 14 OEM's operated offering 35
models to today where 30 OEM's are operating and offering 83
models across all segments. Competition will intensify further with
few more OEM's (Peugeot Citroen, Mazda) likely to start their
operations in India and model offerings likely to increase from
current 83 to 150 (estimate) by FY16.
Market size is expected to reach 6-8 million by 2020-21 and by 2016
India is likely to be the third largest market in the world.
Fig. MS-08
JLR Products
Freelander 2
Range Rover Sport
Discovery 4
Range Rover
Jaguar XK
Sedans
Jaguar XF
Jaguar XJ
Tata Motors aspires to be a strong number two player with a market

share of 20% by 2015-16 by leveraging current platforms,
strengthening its network and introducing contemporarily styled,
exciting to drive new products appealing the youth.
Indigo XL
Indigo
Utility Vehicles
Indigo CS
III
TATA MOTORS
III
ORGANISATIONAL PROFILE
P.1 ORGANISATIONAL DESCRIPTION
P.1 a ORGANISATIONAL ENVIRONMENT
Tata Motors is in the business of design, development,
manufacturing and marketing of full range of Commercial vehicles,
Passenger cars and UVs for domestic and international markets.
P1a1 Product Offerings
There are two business units - Commercial Vehicles (CVBU) and
Passenger Cars (PCBU) - within Tata Motors.
The CV business (Fig. OP 12) comprises of the small commercial
vehicles (e.g. Ace, Magic, Iris). Light Commercial Vehicles, Buses
and Trucks, Tractor - trailers, Tippers and special vehicles. It has four
business lines - M&HCVs, Buses, Small & LCVs, and Non Vehicle
Business (NVB) includes spare parts and aggregates such as
engines & gear boxes, and Annual Maintenance Contracts (AMC).
The PC Business (Ref Fig OP 12) comprises products from PCBU,
Fiat JV and JLR. We market and sell cars like Linea, Punto, Palio and
Fiat 500 of the Fiat JV, and luxury brands Jaguar and Land Rover of
the JLR. TML takes pride in its capability to design, manufacture,
market and sale of the only indigenous car range of the country with
brands like Indica, Indigo, Vista, Manza and the Nano. UVs from our
stable include Sumo, Safari, Venture, Winger and Venture.
Revenues for 2011-12 are distributed in the ratio of 7:3 between CV
and PC businesses.
The complete range of products have equal relative importance to
TML success, the emphasis is on newer vehicles that are launched
using New Product Introduction (NPI) Process supporting existing
range. NPI Process enables the product planning in the 5-10 year
time horizon. Tata Motors is leading in launching new products and
services every year. In last 60 months the company has launched
several new products and variants.
Delivery mechanism for Products, Service and Parts

Domestic Market - Delivery of Vehicles
TML
Distribution
Company
Dealerships
Customer Access Points
TASC, SNAP (for Nano)
Vehicle
Financing
Retails
Tata Motors
Institutional
Domestic Market - Delivery of Service

Dealerships, TASC / TASS, TASP
Retails
Domestic Market - Delivery of Spare parts

Dealerships, TASC / TASS, Distributors
Retails
Institutional
End Users
Fig. OP-01
Stakeholders
Fig. OP-02
International Market - Delivery of Vehicle, Service and Spare parts
Tata Motors
Assured
(TMA)
Country Distributors
Dealers, Authorised
Workshops
Retails
Institutional
Domestic Market - Pre-owned Car Business (TMA)

Dealership
Retails
The organisational culture is open and participative thus promoting

agility and innovation. The business at Tata Motors is run by a set of
Systems and Processes. Cross functional teams and matrix
organization structures for certain functions help to foster learning
and an environment of co-operation.
Core Values, Vision and Mission
Currently CVBU and PCBU have distinctly demarcated MVVs and
core competencies based on their individual contexts. TML is in the
process of defining a unified MVV for the integrated corporation
which will pave the way for determining the need for and thereby
articulation of a unified core competency (Fig. OP- 03,04 and 05).
Policies related to Safety and Climate change
Tata Motors has committed itself to become an injury free
organization and is aiming to achieve the goal of zero accidents.
Towards this Tata Motors has adopted the OHSAS 18001 standard
at all plants.
Both the CV and PC businesses are OHSAS certified and have a
Occupational health and Safety (OHS) policy which is deployed
across the company. Tata Motors has built a safety culture across the
organization by following this process. The company is working
closely with M/s. DuPont in CV and M/s. British Safety Council in our
PC business for implementation of world class safety standards and
practices, with a common SHE committee at corporate level.
Tata Motors has adopted Triple Bottom Line approach and is working
on Climate Change and Low Carbon Growth Initiatives. It has
adopted Green Building policy & designed new factories
accordingly. Pune Pimpri plant has secured Golden rating Green
TML Other Services

Type of Services provided
Direct customers, Spares, Recon, AMC, Financial Services, DTC type

Dealers and TASS, contracts, Insurance, Pre owned vehicles business,
Parts Distributors Channel development, Tata Assurance, Tata Ok, Tata Alert,
Construck, Diagnostic tools,Training, Financial help and
guidance, Process improvement services through supplier /
vendors, spurious spare part control.
Other services to enhance the offerings are given in Fig OP- 01.
Delivery mechanisms for products, parts and services
The company has its Sales and Service Headquarters located at
Mumbai and is supported by regional offices connected through
area offices & distribution network across the country.
Tata Motors has formed a Premier Car Division for distribution of
Jaguar and Land Rover products with retail outlets in select cities.
International Business explores new opportunities and delivers
vehicles as per the country specific regulations and customer
requirements.
The delivery mechanism of Tata Motors products and services is
detailed in figure OP-02.
P.1a2 Vision, Mission and Organisational Culture
In the recent years the organisation is evolving and embracing a
performance oriented culture as mentioned below.
l
Customer Centric
l
Value / Process driven
l
Focused downward, empowerment
l
Productivity driven, team working
l
Collaborative approach
l
High performance
Fig. OP-03
CVBU MVV
TATA MOTORS
Fig. OP-04
VMCDRE and various communication mechanisms such as Maha

Communication / Chairman's Address/Strategy Deployment sessions
(Ref Cat 1.1), BSC reviews, Sunrise meetings and so on to translate
its Business Vision and Mission into every individual's action plans,
thereby setting clear goals and aligning each work unit to accomplish
the strategic objectives of the organization. Apart from this various
processes and methods (Ref Cat 5.0) such as performance linked
rewards and benefits, performance based career progression,
recognition and learning & development opportunities are some of the
key factors that engages the employees to accomplish the
organizations' business strategy & objective (Fig. OP - 08).
Being an integrated manufacturer, we have diverse job and skill
requirements which require us to hire diverse talent in terms of skill,
demographics (gender, age, language, and tenure) and educational
background such as engineering graduates, management & nonmanagement post graduates, Diploma holders, vocational training
certificate holders (ITIs) and so on. This is met by recruiting
Executive, Managerial/Engineering & Supervisory and Permanent
Operatives, Diploma Trainees/Full Time Apprentices and flexible
workforce from different parts of the country. The internally
recognized unions' partner with the management to design
processes and policies matching the requirements and needs of the
operatives (organized bargaining units). All employees are covered
under the company's medical scheme and have access to key
workforce benefits as detailed below (Fig. OP - 07).
PC Vision Mission
Fig. OP-06
Work force Profile

Management
Fig. OP-05
Total
Core Competencies
CVBU
Ability to innovate low total cost of ownership solutions
PCBU
Ability to offer value for money through innovation, cost effective
design, development and manufacturing of passenger cars
Executive
Managerial
Supervisory
Operatives
966
9055
4142
15054
29217
* Flexi workforce is also deployed based on market demands

Fig. OP-07
Health & Safety Requirements
PPE & SHE provisions, Medical and Hospitalisation support, Health check-ups,
various safety related training programs (e.g. Driver training, fire drills) are
conducted and are tailor made for various workforce segments. Moreover,
requirements of safety and health for women are also accounted and Lady
Doctors are appointed who visit on retainer basis.
Certification from IGBC and our Dharwad plant is in pipeline. The

Social and Environmental performance is also reported separately
in the GRI based report which is 'A' level report, communication on
progress submitted to the UN Global Compact, the CS Annual
Report.
Going beyond ensuring that its products meet all the regulatory and
environment standards, Tata Motors has its action plans in place for
reducing the green house gas (GHG) emissions, and developing
future technologies for products like Electric Vehicles (EVs) and
hybrids. The products Indica, Indigo have already achieved 85%
recyclability as per EEC directive. The Indica Vista has been
awarded the prestigious European Recyclability Compliance
Certificate, as per the EC Directives, by the Vehicle Certification
Agency, UK.
Tata Motors Sustainability Report is published annually which
includes performance data and information related to Indian
operations. The report is based on Global Reporting Initiative's G3.1
Guidelines which serves as the company's communication on
Progress on the United Nations Global Compact principles.
P.1a3 Workforce profile
TML's workforce is segmented (Fig. OP - 06) into Management and
Non Management employees. Management employees comprise of
Executive, Managerial and Supervisory employee groups and NonManagement employees comprise of Operatives. Flexible
workforce is also employed based on market demands and
production requirements which are cyclic in nature.
TML uses strategy cascade through BSC / PACT / SQDCME /
TATA MOTORS
Non Management
Fig. OP-08
Key Workforce Benefits
Canteens, Transport, Time-Off from work, Financial Support & Retirement

benefits, Travel & Relocation, Maternity Benefit, Special Assistance Programs
(Adarsh Nidhi, Suraksha Yojana), performance linked rewards and career
progression opportunities.
More details are provided in section: Workforce Focus

P1a4 Assets
Tata Motors has always kept itself ahead in technology through
investment in R&D in the engineering sector by spending around 2.5
% of its turnover. The significant technologies (Fig. OP - 09) are
deployed at Tata Motors. However we are not limited by the above.
Apart from internal competencies, the company has instant
connectivity to external competencies ('collaborators') through
design houses in Europe and UK, JV's with world class technology
partners like Delphi, Cummins, TACO, etc amongst others. Similarly
we outsource styling and engineering services when the
requirement arises. The acquisition of JLR, Daewoo and Hispano
(and the JV with Marcopolo for Coaches) also gives it access to their
expertise. Similarly in IT, Tata Motors is the first auto company
globally to implement SAP and CRM in an integrated manner.
P.1a5 Regulatory requirements
In order to address the requirements of environmental standards
2
Fig. OP-09
Areas
Examples of Technologies
Fig. OP-11
Technology / Equipment/ Facilities

Key examples
Shareholders
Product Design, Development and Testing

Latest design capabilities at TML & JV design houses, Computer simulations,
CAE/Digital validation, Digital mock-up, life cycle tests, NVH facilities, Cruise,
BRS (Temp Control & Test Lab), Chassis Dynamometer Emission Lab -Euro
V, Dynamometer with robotic driver, Mobile crash test barrier, Road Load Data
(RLD) acquisition system, KNEXT, 3D for all, PLM, CATIA, Pro/E Wildfire
5.0,Tata Motors European Technical Centre (TMETC) ,CAD and Simulation
tools; Digital Prototyping laboratory; anechoic chamber NVH facility; Crashtesting facility etc.
Manufacturing
Robotic Press & Paint shops, Rapid Prototyping, Delmia, five axis precision
machine tools and laser cutting machines to fabricate production tools and
dies, Automatic Welding robots, Ro dip
- painting process, etc .
Internal Operations & Systems
Optimised operations and systems: KAIZEN, 3P, SAP, Legatrix, e Procurement, NPI, BSES, e connectivity,
MES IPMS,
PLM, FDS Production
Planning.
Managing customers & Channel partners
State-of-the-art Siebel CRM DMS, SAP, SRM, Web sites, especially product
focused web sites, etc
Board of Directors
Operations Committee
Nominations
Committee
Investors Grievance
Committee
Operating Policies & Procedures

which ensures compliance
Audits to ensure compliance
Strong and full deployment
World Class guides
Ethics and
Compliance
Committee
Special Need based
Committee
reviews which focus on business level strategic initiatives.

P1b2 Customer & Stakeholders
For Commercial Vehicle and Passenger Car business the Key
customer groups, market segments and their key requirements are
Fig. OP-13
Suppliers, Partners, Collaborators and Distributors
Role they play in our

Key Suppliers, Most important
Prodn &
Organizational
Partners,
Supply chain Systems
and work
delivery of key Innovation
Collaborators & other
Processes
& Distributors requirements processes Products &
Services
& expectations
Regulations and Accreditations
Regulations / Acts
Remuneration
Committee
Tata Motors
Organizational
Structure
Management Committee
Accreditations
Key vendors dealing with
RM, components
and Proprietary items
Fig. OP-10
Audit Committee
Executive
Committee of Board
and regulations, Tata Motors has defined and deployed policies for
safety, health and environment.
Its record of compliance with regulatory requirements (Fig. OP - 10)
such as emissions, safety and other clauses of the Motor Vehicles
Acts has always been proactive and exemplary. Post listing on the
NYSE the company also complies with the Sarbanes Oxley Act
(SOX) guidelines.
Area
Governance Structure at Tata Motors
GRI, CSR, Carbon

ISO 14001, IFC certified,
Footprint mapped, CERs
on Chicago Climate
Exchange
Financial
Company Law, SEBI,
U.S. SEC, regulations
SOX
CG Report, CS Report, and
Corporate
Governance
Global Compact
Product
CMVR, Euro and Bharat ARAI guidelines for emission and
regulations
stage
safety aspects
Calibration &
National Accreditation Board for
Measurements
Testing & Calibration Laboratories
Quality System
ISO / TS 16949
Vehicle Sales
Approval as per contract terms
to Army
with DGS&D prior to dispatch
Employees
Factories Act
Working hours, Employment of
young persons, Annual Leave
with wages etc., , SA8000
Health and
No Smoking in premises, OHSAS 18001, British Safety
Safety
Helmets for 2-wheeler
Council, DuPont
drivers compulsory
Contracts, trainers, consultants,

Collaborators
Other Vendors
dealing with
Consumables,
oils, etc
Environment
Equipment
Manufacturers
and Facility
providers
Dealers, TASS &

Part Distributors
P.1 b ORGANIZATIONAL RELATIONSHIPS

P1b1 Organizational Structure and Corporate Governance
As a global organisation the CG practices followed are compatible
with international standards and best practices. Through the
Governance mechanism, the Board along with it's Committees
undertake its fiduciary responsibilities to all its stakeholders by
ensuring transparency fair play and independence in its decision
making (Fig OP 11).
The BODs along with Committees provide leadership and guidance
to the Company's management and direct, supervise and control the
performance of the company. Other than these committees, Tata
Motors has CV and PC level Steering Committees to manage the
business and report the Board on regular basis. The businesses are
reviewed monthly through Steering Committee meetings and BSC
3
Early
involvement SAP -SRM,
for developmentVendor
system,
of new parts; NPI,
Optimum
Kaizen, KM,
delivery times Audits,
to reduce
Pricing
inventories,
System,
cost reduction MRP
Manufacturing,
Supply of
components,
kits,
assemblies,
spares, Audits,
Integrated Cost
Reduction, NPI,
Early
involvement of
vendors, Value
Engineering,
Technology
Day, Joint
programmes
Quality, Cost
and Delivery/
Time as
specified
Manufacturing,
Supply of
indirect
material,
audits, paints,
Cost Reduction,
Early vendor
involvement
Joint programs
Conservancies,
cleaning,
maintenance,
security,
training,
consultancy,
designing, joint
development,
Third party
logistics
providers,
Contract
manufacturers
Market share, S&M, CS, Sales of
Dealer Dev, products/spare
identify
s/services,
RO/AO,
potential
customer care
KAM,
customers,
and support,
right delivery eCRM,
at right time, Legal Cell, support in NPI,
NVB, HR,
sharing
Kaizen
changing
needs &
expectations
Agility, Safety, Manufacturi Manufacturing,
Meeting Mfg. &
ng
Quality, low
Quality
operating cost, Planning,
requirements
Mfg.
Flexibility,
Strategy
Timelines
L&D, Contracts
procedures,
JVs
Deliverables
as specified in
contract or
assignments
KM,
Pricing
System,
MRP
Contracts
Process,
Internal
Audit
Process,
KM,
CRM & DMS,

Dealer
Development,
NPI, Market
Research
Flexible
Manufacturing,
CAM, Flexible
lines, Innovative
solutions
TATA MOTORS
identified (Fig. OP-12). For International Business, the company has identified products to be marketed in focused countries. Differences in
details in these requirements and expectations among segments, customer groups and customers can be shown during site visit.
Emerging requirements
Through regular environmental scans and deep understanding of customer requirements Tata Motors has been able to foresee emerging
customer requirements. For e.g. the company understood the importance of climate change and safety requirements well within time to act
on it.
Fig. OP-12
Market Segment
Customers Present and Emerging Requirements

Customer Usage
Groups
Present Key Customer

Requirements
Future / Emerging Key

Customer Requirements
Competitors
CV Business
Fleet Owners, Trailor
operators, Construction /
Mining sites, Goods
Carriers
Fuel Efficiency, Low life cycle

cost
Ease of Service, High Torque

vehicles, Advanced features, Fits
& Finishes, Driver comfort
Ashok Leyland, Mahindra Navistar,

AMW, Mann, Bharat Benz
(Potential)
BUS
Urban , Suburban,
Intercity, school & staff
More no. of seats per ton of

GVW, Easy entry & exit in city
buses, safety as per norms,
better kmpl , lower
maintenance, high uptime,
reliability
Affordable Climate control,

comfortable ride ( air suspension),
better braking, lowest NVH, better
styling, luxurious seating for
utmost comfort
Force motors, AL, Eicher, Swaraj

Mazda, Mahindra Navistar , Volvo,
MB, Foton, Bharat Benz, MAN, ALNissan, AMW
LCV
Transport operators,
Goods Carriers,

cost
Low Repair time, Driver Comfort &

Safety, Fits & Finishes
Eicher, Mahindra, Ashok Leyland

(new)

cost, low turning radius
Ease of Service, Safety,

Aesthetics, Driver comfort
M & M, Piaggio,
Availability of spares, Finance

availability
Convenience of distribution points
Spurious part manufacturers
Cost of Ownership
Performance features, fits &

finishes including aesthetics,
availability of spares
Global Automobile Players
M&HCV including
ICVs
SCV
NVB
International
Business
Small Transport
Operators, Intra City
passenger transporters
All Commercial Vehicle
users, DG set
manufacturers
Customers in identified
focused markets
PC Business
ULCC
A1 Segment
Personal city car
Small foot print, Spaciousness

Low cost of operation, Space,
Safety, Dealership Experience,
After Sales Experience, Good
Product Quality
Space, Load Carrying Ability,
Dealership Experience, After
Sales Experience, Good
Product Quality
Low price, Low running cost
Two Wheelers,
Maruti 800, Used cars
Style, Performance, Luxury,

Comfort
Swift, Ritz, Alto, Wagon R, EON, i10

i20, Fabia, Jazz, Micra, Polo, Figo
Hatchback
A2 segment
Personal & Fleet
Sedan
A3 Segment
Personal & Fleet
Full Size Luxury

A5 Segment
Personal
Status, Comfort, Safety,

Performance
Luxury, Advanced -technology
BMW 5 Series, Mercedes E-Class,

Audi A6, Volvo S-80
Premium
Coupe/Roadster
A5 Segment
Personal
Status, Thrill, Sportiness,

Performance, Safety
BMW Z4, Porsche 911, Cayman,

Boxter, 6 Series, Audi R8,
Mercedes CL Coupe, SL Roadster
Personal & Fleet
Space, No. of Seats, Fuel

efficiency, Dealership
Experience, After Sales
Experience, Good Product
Quality
Looks, Appeal, Distinctiveness,

Performance, Comfort, Style
Personal

Performance, Dealership
Quality
Innova, CR-V, Endeavour,

Fortuner,Tucson, Captiva,
Outlander, Xuv500
Premium SUV
UV Segment
Personal

Performance, Dealership
Quality
Powerful, Luxury, Status, Comfort,

Advanced-technology
Audi Q5, Q7, BMW X3, X5, X6,

Mercedes M Class, GL Class,
Porsche Cayenne, VW Touareg,
Toyota Land cruiser, Volvo XC90
Pick-up Segment
Personal
Style, Off-road Capability, Load

Bed, Personalisation
Power, Comfort, Technology
Scorpio Getaway
UV, SUV
Segment
Cross Over
TATA MOTORS
Premiumness, Style, Comfort,

Refinement
D'zire, Verna, City, Fiesta, Aveo,

Sx4, Etios, Sunny
Tavera, Bolero, Scorpio, Innova,

Endeavour, Fortuner,Tucson,
Captiva, Xylo, Xuv500
International Business division of Passenger Car business explores

new opportunities and delivers vehicles as per the country specific
requirements and regulations. It has tapped the export potential in
South Africa, Turkey, Sri Lanka, Nepal, Nigeria, Ghana, Tanzania,
Congo, Saudi Arabia, Iraq, Angola, Italy, Spain, and Poland.
P1b3 Suppliers and partners
Suppliers and Dealers continue to play significant role (Fig. OP-13)
in our growth and are involved in early stages of Product Design.
Supplier base and Dealers have been rationalized on the basis of
their performance. This can be seen from the fact that during the
years key new suppliers are added to scale up our operations and
yet remove costs from the system.
The distributors/ dealers bring the company near to its customers,
help understand their needs, and tailor the product offerings.
Moreover continuous feedback from suppliers/dealers helps to keep
the product & service offerings current and updated.
TML uses various relationship and communication approaches with
Key Suppliers, Customers, JVs & subsidiaries, and Financiers
(Fig. OP-14).
P.2 Organizational Situation, P2a. Competitive Environment
P2a 1 Competitive position, relative size & growth, competitors
The company keeps track of industry and competition through
various approaches (Fig. OP-15).
P2a2 Competitiveness Changes
Key changes taking place that affect competitive situation
P2a3 Key available sources of comparative & competitive data..
The number of key changes that are taking place will have an impact
Fig. OP-14
Relationship
Key Suppliers
New product development,
optimizing resources, Quality
system support, training, Joint
programmes, knowledge
sharing, etc
Fig. OP-15
CVBU
First
PCBU
Third
14.0
Position
Fig. OP-16
Favourable Changes / Opportunities
uncertainty (plus forex impact)
International Brands forcing Low cost high

?
quality products increasing pressures on
margins
Increasing job availability for Talent from
?
national & international players
?
Increasing domestic & international
government regulations and restrictions
(Climate Change, Taxes, Duties)
?
Increasing shift in customer requirements
leverage synergies with sister

concerns in Tata / Tata Motors group
for cost advantages, technical
knowledge sharing
?
Expansion in International Market Employee Career Progression
?
Evolved hub and spoke model
?
Evolved customer needs customi
zed integrated Solutions
- towards high end products at lower cost

of ownership
embedded in NPI process. ERC has a Benchmarking area where all

vehicles are benchmarked with global best with teardown analysis is
carried out. (Fig. OP17).
Fig. OP-17
Partnering relationships
Communication Mechanisms
Supplier meets, Technology Days, Value
Chain Management web site, visits, at
site representatives, training forums,
engagement with seniors, 3P/Kaizen,
Group discussions, surveys,
Vendor Council meets
Limitations, if any, on
obtaining data
Comparative
data from within
industry
Long lead time for data

collection, analysis and
implementation
Comparative
data for similar
processes from
outside industry
Identified joint projects, Reviews in

Management committees, reviews with
functions & business, funding
Comparative data & Benchmarking
Available sources
Types of Key
data/Information - examples
Competitive data
from within
industry
Product Benchmarking-PAT, ICM, ATS

Process Benchmarking -SQI, NPI, QM
SIAM, JD Power, KUKA, Benchmark
partners, consultants, APQC, TKC,
JUSE, Internet sites,
Benchmarking Centres, Tata Group
companies,
Auto shows and exhibitions,
Product benchmarking,
Investor meets, Dealers, Suppliers,
JVs, Regional & Area
Manager network, Internal benchmarks
within the Tata Motors group
. etc
Data accuracy as data

flows from other sources.
NPI & Warranty data not
available publicly
Long time for collection
of data, analysis & use
In PC business processes such as PAT, ICM, and attribute target

setting are used for Product benchmarking. Process benchmarking
is done for key business processes, such as Supplier Quality
Improvement Process after benchmarking the same with Cummins,
Volkswagen, and GM. Our NPI process is being upgraded after
benchmarking with JLR product development process (Gen 3).
The key areas of benchmarking and agencies involved in it (Fig
OP18).
P2b. Strategic Context
Key business, operational & HR strategic challenges
The key business, operational and human resource strategic
Wide Sales and Service network, ,

tatamotors.com, individual
communication, direct visits, training
forums, media, engagement with
seniors, CRM-DMS, KAM, Dealer Audits,
Dealer conferences, Dealer Connect,
Senior Management visits, Training
Centres
Meetings with Senior management,
letters, mails, one-on-one meetings
Collaborators, Contractors
Need based help, technical &
Meetings, emails, letters, one-on-one
non-technical support
discussions, Minutes of meetings
Equipment Manufacturers and Facility providers
Equipment / facilities for New
product development / capacity
building, optimizing resources
29
?
Increasing Political uncertainty - forcing slow ?
Increase in services demand
industrial & infrastructure growth (India)
?
Opportunities of low cost sourcing
Increasing Fuel Costs and decreasing fuel
?
?
Availability & affordability of Spare Parts
stocks (may create global unrest)
?
Emerging international markets
Increasing Interest Rate & Economic
?
Integrate back end processes/
?
Financiers
Finance schemes, bill
discounting, joint programmes
13
Key changes creating impact on TML
Non Favourable Changes
Dealers
Sales & Service contact,
financial support, product
updates & training programmes,
Key Account Management,
Customer loyalty Programme
(Tata Emperor for KA, Tata
Delight for Non KA, eCRM,
AMCs
No. & Types of competitors
on TMLs competitive position (Fig. OP-16). Tata Motors uses formal

JVs for collaborative approach, e.g. joined hands with TMETC for
technical excellence. Product benchmarking at Tata Motors is
Joint Ventures and Subsidiaries

Sub system development at
early stage of product
development
Market Share and position

Market
Share %
61.4
Fig. OP-18
Key Areas of comparison & benchmarking
Benchmark area
Who does it
Product & Technology ERC (Product), NPI/Projects Facilities, Quality Assurance,
Technical Services etc.
Finance
Corporate Finance
Business Processes
Process Owners (Plants / Non Plant)
Operational Processes Respective Divisions / Departments, Safety, Quality & HR
RFQs, Purchase orders, letters, Joint

reviews, Project timelines, Quality
targets, Specifications, Technology days,
Meetings etc.
5
TATA MOTORS
challenges are identified (Fig. OP-21) as a part of Strategy Planning

System. The core competencies are integrated in the work systems
and processes to achieve the strategic goals.
The strategic challenges (Fig. OP-21) are well addressed while
deciding the strategic direction and then in the Balanced Scorecard
along with ST and LT strategic objectives and initiatives. The four
perspectives of BSC hold focus on key processes. The reviews and
audits have enhanced readiness for addressing the strategic
challenges for Tata Motors.
P2C. Performance Improvement System
Tata Motors reviews Systems & Processes through assessment and
feedback is given to process owners (Fig. OP-19) for improvements.
The Company uses PDPI (PDCA) method to improve systems and
processes regularly.
The organizational focus on performance improvement is
maintained through the use of BSC with KPMs using- TBEM criteriabased evaluation; ongoing compliance with both TS 16949:2009
QMS, ISO 14001 EMS requirements, use of TPM methodologies
and OHSAS 18001 for Safety. In addition to this, initiatives with
special focus on Safety, Quality, Cost, Productivity, and Supplier

Enhancement & Employee care drive specific initiatives for
improvement. SQDCME is a common system for monitoring
performance on shop floors.
Tata Motors presence in the markets abroad enables it to learn about
the emerging trends in performance, features, and safety. This
knowledge is used in improving the effectiveness and efficiency of
our product development, manufacturing and delivery processes. It
also draws strengths from JLR, Tata - Fiat JV, TDCV, Hispano,
Marcopolo, TMETC UK and other business units.
The Innovation Structure (Fig. OP-20) used to drive innovations.
These innovations are captured and used in developing processes,
business models, products, services and solutions.
Fig. OP-20
Innovation Structure
Product Innovation
Benchmarking, NPI
Process Innovation
Kaizen OC circle, Benchmarking
Fig. OP-19
Process Design and Process Improvement Process
Step 1
Step 2
Step 3
Step 4
Establish process
output requirements
Name the process
Assign the owner
Document the
process
and sub process
and its measures
Set targets
for
measures
Identify needed
improvements
through self assessment and audits
Engineering Innovation
Step 5
PAT, Benchmarking
Simplify/
improve the
process
Organisational Innovation
New initiatives and processes - Exact, ICR, ICM
Fig. OP-21
Strategic Challenges and Advantages

CV Business
Strategic Challenges
PC Business
Strategic Advantages
Strategic Challenges
Business
Increasing Political uncertainty - forcing slow
Increasing Political uncertainty Significant presence in Africa &
industrial & infrastructure growth (India)
forcing slow industrial & infrastructure
South Asia
Uncertainty with respect to Fuel prices (international
growth (India)
fuel prices, subsidy policies) leading to
Wide range of products with cost
unsustainable demand for certain kind of vehicles
Increasing Fuel Costs and decreasing competitiveness
Increasing Interest Rate & Economic uncertainty
fuel stocks (may create global unrest)
(plus forex impact)
Customer financing through Tata
Increasing competition as multinational OEMs set
Increasing Interest Rate & Economic
Motor Finance
up shop in India and also start introducing
uncertainty (plus forex impact)
emerging market specific vehicles
Build up on current Value for Money brand in to a
more aspirational and desirable brand
Gain foothold in select international markets
Strong platform with Tatas brand
name synonymous with trust.
Tata Motors Indias largest
automotive company with
experience of more than 50 years in
design, development, manufacturing
and sales of commercial and
passenger vehicles.
Access to new technologies & other
global markets through Jaguar/Land Rover,
Tata-Fiat JV, TMETC
Operational
International Brands forcing Low cost
high quality products increasing
pressures on margins
Increasing shift in customer
requirements - towards high end
products at lower cost of ownership
Leadership position in domestic

market
Wide range of products with cost
competitiveness
Wide Dealer & Service Network
International Brands forcing low cost high quality

products increasing pressures on margins
Emergence of new customer categories, e.g.,
nuclear families, working women, youth leading
to emergence of niche segments (Compact UVs,
Compact MPVs)
Scale up and systematize key business processes
- NPI, manufacturing process, Supplier
Management process
Improve customer facing processes
Extensive network of dealers and

service support
Existing products moving up on
quality trajectory.
Continuous focus on cost
management through ICM and ICR.
Structured New Product
Development-eNPI
Expertise from JLR
In-house cost effective design and
development.
In-house tooling development
Human Resource
Increasing job availability for Talent
from national & international players
Brand name in Domestic Market

& Tata Brand
Increasing job availability for Talent from national

& international players
Scale & Size
Leadership development at all levels
Brand name in Domestic Market & Tata Brand

Strong engineering team with a track record of
innovation (both discontinuous and incremental)
Eg. Nano: Created a new ULCC market, Indica:
First indigenous car, Indigo CS: Worlds first sub
4 meter sedan, Indica e V2 CRAIL, Indigo
CS CRAIL, Manza Elan, Vista 90
Societal Responsibility
Tata Brand Image, Track Record
government regulations and restrictions towards Regulatory Compliances
TATA MOTORS

government regulations and restrictions
Tata Brand Image, Track Record of

going beyond Regulatory
Compliances
B B Parekh
Chief
Strategic Sourcing
Johnny Ommen
Head, PCBU
International Business
R T Wasan
Head, CVBU
International Business
Hoshang Sethna
Company Secretary
A S Puri
Vice President, Govt
Affairs & Collaborations
Debasis Ray
Head, Corporate
Communications
N D Pinge
Vice President
Internal Audit
R K Bagga
Vice President, Legal
N S Kulkarni
Head
Corporate Planning
Prabir Jha
Senior Vice President
Human Resource
C Ramakrishnan
Chief Financial Officer
Uppalapati T R
Head, Marketing
Communications
J S Hegde
Head, ADD & Materials
S Kumar
Plant Head, Dharwad
V Gandhi
Plant Head, Pantnagar
Balasubramanian
Head, Sales, Planning
& Logistics
Ashish Tandon
Head, Bus
Sales &Marketing
A K Sinha
Plant Head, Pune
A K Saxena
Plant Head, Lucknow
P K Chobe
Plant Head,
Jamshedpur
S B Borwankar
Sr . Vice President
Manufacturing Operations
Rajesh Kumar
GM, Mkt Research
V S Noronha
Head, Defence STUi
V G Prasad
Head
Fully Built Vehicles
Sanjeev Garg
Head, Customer Support
Vinod Sahay
Head, (MHCV)
Sales &Marketing
Sandeep Kumar
Head, Sales
M B Kulkarni
Head, Corporate Quality
Anil Kapur
Head, Sales
Ravi Pisharody
President
Commercial Vehicles
P M Telang
MD, India Operations
ORGANISATION CHART
Nitin P Rajurkar
General Manager
Technical Services
& JLR project
Vikram P Kulkarni
General Manager
Project Management
Prashant Saxena
Sr. General Manager
Small Car Sourcing
Hemant V Kulkarni
Plant Head, Abad
Vikram Sinha
Plant Head, Pune
Girsh Wagh
Head
Passenger Car Operations
Ramesh Dorairajan
Head, Retail & Channel
Finance & Insurance
Rohit Suri
Head, Premium
Car Division
Anupam Misra
Head, Concorde Motors
Ashesh Dhar
Head, Utility Vehicles
Product Group
Kiran Kumar
Head, Retail Sales Dev.
& Consumer Experience
Prashant Fadnavis
Head, Mktg Services
Dinesh Bhasin
V K Gangrade
Program Head, EXCEED
Head, Car Prod Group
R Ramakrishnan
Vice President
Commercial - PCBU
G Nagbhushan
Head, ERC
Engineering
Passenger Cars
Dr Ajit K Jindal
Head, ERC
Engineering
Commercial Vehicles
S Ravishankar
Vice President , ERC
Engineering Systems
Dr T Leverton
Head, Advance &
Production Engineering
TATA MOTORS POLICIES


1 LEADERSHIP
Winner of 'Golden Peacock Award for Corporate Social Responsibility' for the year 2011 by the Awards Jury,
under the Chairmanship of Justice P N Bhagwati, former Chief Justice of India and Member, UN Human Rights
Commission
Conferred with the 'Best Audit Committee Award 2011' by the Asian Centre for Corporate Governance &
Sustainability
Golden Peacock Award for Excellence in Corporate Governance
6 awards at the 51st Annual Awards Nite of the Association of Business Communicators of India (ABCI), for
excellence in business communications
'Amity Corporate Excellence Award for Corporate Social Responsibility', instituted by the Amity Global
University, in association with Business Standard
Lucknow plant conferred with the Greentech Environment SILVER AWARD for 'Outstanding achievement in
Environment Management' in the automobile sector, for the year 2011
Pantnagar plant bagged the second position in the Environment, Health & Safety (EHS) Competition 2011,
organised by Confederation of Indian Industry (CII), Northern Region.
Sanand plant wins Golden Peacock Eco-Innovation Award - 2011
Passenger Car plant (PCBU) has received a 5-Star rating (Score: 97.19%) in the British Safety Council (UK)
Health & Safety Audit.
The Institute of Chartered Accountants of India (ICAI) has conferred Mr. C. Ramakrishnan with the prestigious
Business Achiever Award 2011, in the industry category
Mr. S B Borwankar conferred the IIIE Performance Excellence Award
1.
LEADERSHIP
a unified MVV for the integrated corporation which will pave the way
for determining the need for and thereby articulation of a unified core
competency.
1.0 Senior Leadership

Tata Motors has evolved the Leadership System (Fig. 1.1-01) which
provides the basic concept and approach for leaders to follow. The
system acts as a catalyst to the leaders to understand stakeholder
expectations, effectively lead their teams towards mission and
vision, and to play active role in developing potential leaders for
overall organisational sustainability.
Fig. 1.1-01
3
Tata Group
Values and
Objectives
Innovate, Learn
and Share
Partners
Mission
Community
Shareholders
Customer Focus
5
Organise, Align and
Allocate Resources
6
Communicate and Involve
Develop, Reward and

Recognition
Employees
Create a Culture
of High Performance 8
Passion for Engineering
Safety
Review and Adjust to

Achieve Plan 7
Integrity
Tata Code of Conduct
Stakeholder
Expectations
Communication, Cascading / deployment through
Customers
Employees
Adapt to
New
Challenges
and
Raise the
Bar
Vision Workshop
Setting / Reaffirming of
Vision, Mission and Values
Communicate and
Build Commitment
2
Understand Vision,
Stakeholder needs,
Higher Level
objectives
11
Set Direction and Plan
Be a Role Model
Set and Deploy MVV

Sr Leadership / BOD
Leadership System
12
10
Fig. 1.1-02
Innovation
Build Motivate,
Empower Team for
Accelerated Change
Employees
Suppliers
Communication Fora's
BSC/PMS/MPAs;
Strategic initiatives;
Pocket cards;
Posters; intranet
Vendor meet/council;
Technology day; SRM
Dealers/Partners
and other
Stakeholders
Dealer meet; CRM-DMS
Feedback / Review /
Revisit / updations
Deployment of MVV: While deployment of the MVV starts with

communicating to all stakeholders, implementation is done through
right structure and action plans so that the process of
communication and getting commitment on these from the
stakeholders is easy and smooth.
Internalisation of MVV starts with the OPSCOM, MANCOM and
Steering Committee meetings. MVVs are used while formulating
Strategic Objectives. Senior leaders reiterate these in town hall
annual communications by explaining achievements and
challenges ahead.
Individual MPAs are based on cascaded BSCs. For new employees cadre and lateral, regular induction programmes are being held.
Operators are communicated through interactions and displays on
the shop floor.
Supplier base comprises global component manufacturers to single
customer local SMEs. It is pertinent to convey to them TML's
aspirations for better alignment and integration. Vendor councils and
meets are important forums, where the two parties share their
needs, long term vision and challenges from each other. In addition,
vendors are connected through SRM website where all formal and
informal communications are done. Functional heads like heads of
Supply Chain, QA and Manufacturing visit the vendors and
communicate the organisation's requirements.
The conferences and visits of dealers and their works managers to
plants are some of the forums to share Core Values, MVVs and
expectations from them. Communication on MVV is formally made
through CRM-DMS website. Suppliers and dealers participate in
Dipstick surveys as part of the process to revisit MVV.
MVV gets communicated to Customers through plant presentations
during their plant visits. The Key Account Management process also
helps the senior leaders understand customers' requirements, and
hence acts as inputs for action / journey towards vision.
The leadership interact with key communities. These interactions
reflect TML values and guide TML to understand way forward.
Financer meets / Shareholders meets and Investors' plant visits are
also conducted on periodic basis to understand / communicate with
them.
Actions reflecting commitment: Leadership team develops key
policies that govern the way of conducting business with all
stakeholders and ensures correct interpretations and
implementation of such policies. The actions transmit a powerful
message of fair play and trust amongst all the business partners /
stakeholders and reflect the commitment of the leadership to the
Corporate Citizenship
Environment
The Leadership system (Fig. 1.1-01) is built on five core values.

While steps 1, 2, 4, 6, 8, 10 and 12 are actions required from the
leaders themselves, and cannot be delegated, steps 3, 5, 7, 9 and 11
require support systems and processes to assist leaders in
accomplishing these tasks.
The effectiveness of Leadership System is reflected through
continuous and breakthrough improvements in the overall
performance of the organisation.
The leadership structure (Fig. 1.1-09) plays an important role in the
functioning of TML. Apart from reviewing the business strategy,
various Board Committees also formulate relevant policies for
smooth running of the organisation. Among the guiding policies are
those relating to Quality, Environment, Safety, Climate Change and
Affirmative action.
The Operations Committee (OPSCOM) and Management
Committee (MANCOM) continuously guide in setting TML's
direction, strategy execution and performance reviews. These
committees are headed by the Tata Group Chairman. BU level
Steering Committees review performance every month. This is
supported by Lead / Lag indicators and initiatives that are reviewed
in BSC reviews. Steering committee has representations from all
functions and this allows alignment and integration across the
organisation.
1.1a1. Mission, Vision and Values (MVV)
Setting of Mission, Vision and Values: The process to set and
deploy MVV is in place (Fig. 1.1-02). The first such MVV workshop
was conducted in 2001, wherein Senior Leaders articulated MVV
statements. Subsequently, the Leadership Team has revisited the
same on periodic basis to verify its relevance. The various inputs
from stakeholder interactions (Dealer / Customer / Vendor / Society /
investors meets) and assessment feedbacks (TBEM, Certification
Audits) are kept in mind while revisiting MVV. During one such revisit
in 2010, Mancom decided to add Innovation" as a Core Value.
The defining statements of MVV guide the SPS (Fig. 2.1-01) in
setting strategic objectives and goals.
Currently, CVBU and PCBU have distinctly demarcated MVVs and
core competencies based on their individual contexts. Triggered by
substantial growth opportunities and need for integration of business
units to develop synergy, senior leadership teams decided to have a
thorough re-look at the MVV. TML, thus, is in the process of defining
7
TATA MOTORS
TML Value System. Commitment of leaders to these values is

evident in day to day work (Fig. 1.1-03).
Fig. 1.1-03
of top leadership. These committees will formalise policies and

structures for achieving desired safety results. Each of the
Executives has undergone Safety training regarding Safety
Observations / Incident Investigation etc.
Safety is reviewed in SHE APEX, Steering and ManCom as well in
Audit committee meetings. Leaders conduct safety observations
and see that the gaps are closed immediately.
Safety Managers have direct access to the top management. Plant
level leaders like the CX owners, line in-charges are also the Bay
owners for their respective lines and CXs. Safety is primary focus
area in daily management and safety parameters are part of BSC for
Leaders. Administrative Officers, Customer Service Heads and
Warehouse Heads get personally involved in taking safety initiatives
in respective areas.
Quality : Quality and Customer focus are essential attributes to
survive and thrive in a highly competitive business environment.
Implementation of process based automotive specific TS 16949
Quality Management System has helped Senior Management to
promote quality consciousness & guide their divisional teams to
meet quality objectives. Action plans have been prepared to move
towards World Class Quality (WCQ) level and Senior Management
members are personally driving these teams.
Various initiatives like TQM, Project Terminate (Rust prevention),
AUTONOVA, Launch Quality Operating System, APQP, PAT,
Forward Model Quality, Six Sigma, Q-Star (Lucknow), and Logistics
improvements are personally driven by Senior Management
members. While some of these are initiated at the top and
implemented at all plants in one go, a few of those start at one plant
and are carried forward to the others.
Warranty reduction is achieved through leaders taking up
responsibilities for models and top complaints. These are completed
using DMAIC approach and improvements passed on to the
customers.
In addition, CCT / PST meetings are held regularly for each of the
LOBs and are attended by heads of ERC, Customer Service,
Quality, Materials and other related functions. The action plans for
resolving quality issues faced by Customers are reviewed in these
meetings.
Operators are encouraged to take part in Self Directed Teams to
resolve PDI and Quality issues. Leaders also review ISO
Certifications status at Dealers / Vendors end, Supplier Process
Audits, progress of Vendor Council quality committee etc to ensure
that quality is focused at all stakeholders level.
Climate Change : Senior Leadership has formulated a climate
change policy which is communicated across the Organisation. It is
driving many climate change initiatives (Fig. 1.1-05) such as
renewable energy through wind mills / solar energy, energy
conservation projects, Green factory buildings, fuel efficiency
improvement projects for vehicles etc.
TML has mapped its carbon footprint, and action plans with timelines
has been developed for each of the plants. Leaders at these
locations are directly responsible for completion of these action
points. World Environment Day, Water Day and Energy week are
celebrated every year, wherein senior leaders and union
representatives guide and encourage environment related action
plans. To create positive impact on the environment & society, tree
plantation is held in chosen areas on regular basis with participation
of senior leaders and union representatives and other stakeholders.
TML has created lakes and ponds at and around many Plant
locations to help ecosystem grow.
Climate Change initiative is also been promoted at Supplier /
Dealers end through actions like a) usage of reusable / returnable
packaging, ISO 14001 EMS Certification, common milk route
schemes, publishing Green Drive handbook etc.
Living by Core Values
Values
Associated processes and methods, few examples
Integrity
Fair dealings with partners driven by a systematic process, Governance,

TCOC, Structure for ensuring compliance eg. deployment of processes
for SOX, SAP, CRM-DMS, SRM. Meritocracy when it comes to
workforce, schemes such as FTSS are open for one and all
Customer
Focus
Encourage actions out of VOC outcomes Personal visits to dealers and

key customer accounts Top Leadership team question the plants/ functions
as representatives of customers (e.g. CCT)
Corporate
Citizenship
Involvement in business associations like SIAM, CII, automotive

bodies Leaders involvement in educational institutions Participating
as India representative in vehicle level regulatory making bodies
Members of NGOs
Innovation
Establish structures to propagate an innovative culture Act as jury

members in deciding good innovations. Encourage CFTs
Leaders are always on look out for new developments in technologies,

Passion for
new learning from business environment and implement the appropriate
Engineering
for business benefit, giving stretched targets to realise potential
1.1a2 Promoting Legal & Ethical Behaviour

Actions demonstrating commitment: The Governance Structure
(Fig. OP-11) has committees on Audits, Investor grievance, Ethics
and Compliance. Members of these committees dwell on and
develop the related policies and interact with the Leadership to guide
periodically on the aspect of legal and ethical behaviour. Similarly
"Broadening Horizon" programme designed for senior leaders also
gives key inputs on legal and ethical expectations to them.
Legal behaviour: The major step here is identification of all
applicable regulations and rules and allocating clear accountability
for compliance and quarterly compliance review (Fig. OP-10).
Recently IT has implemented on-line Legatrix system to help users
track progress on legal compliances and also provide alerts to
Leaders. Leaders personally see that the Company files all legal
information and the same is made available for public consumption.
Leaders also proactively support various audits for sustained
compliance of certifications like SA8000, TS 16949, ISO 14001,
OHSAS 18001, etc. The Audit Committee of the Board works with
Internal Audit and Finance functions to ensure compliance to SOX,
U.S. SEC guidelines, and SEBI guidelines.
Ethical Behaviour: Through approaches like (Fig. 1.1-04) / building
structures / implementing policies, and personal actions, leaders
ensure that workforce / partners understand the importance of
adhering to ethical behaviour.
Fig. 1.1-04
Stakeholders
Employees
Approaches for Legal & Ethical Behaviour

Promoting Legal & Ethical behaviour
Trained in TCoC, Declarations / pledges, Appointment of Ethics
Counsellor, Lady Ethics Counsellor
Chairmans statement, Display of Customer bill of rights, Agreements

Suppliers,
Dealers and Channel with dealers, compliance audits, Training on recognition of genuine
parts, Formation of Vendor & Dealer Councils to propagate culture of TCoC.
Partners
Clear communication on price of vehicles, services and parts;
warranty terms and facilities such as free service; Billing
Customers
through SAP system; Display of information for escalation
of concerns; and fair terms for acceptance of warranty
Safety: Safety is one of the basic elements of Leadership system.

Senior Leadership has demonstrated the importance and
commitment to Safety by tying up with World class Expert /
Consultant - Du Pont / British Safety Council. The mandate is to
move towards Zero Accident through implementation of structure
and processes. Specific committees on skill development,
standards and procedures, safety observations and contacts,
Incident investigations have been commissioned with participation
TATA MOTORS
Fig. 1.1-05
Actions taken
since 2001
?
Adoption of Corporate
Environmental Policy.
?
Implementation of
ISO 14001 EMS
?
Adoption of Energy
Policy.
?
Consolidation of
Energy Conservation
Activities.
?
Driving EMPs
?
Rain water harvesting
?
GHG Reporting as
per GRI Guidelines.
?
Wind Energy Project
receives
?
Clean Development
Mechanism Projects
(CDM)
moving potential leaders to critical positions, thus challenging them

to take higher responsibilities and deliver high performance.
Identification of output and in-process measures for each of the
processes, and always focusing on Evaluation, Improvement,
Learning cycle are some important criteria for organizational
performance improvement.
Innovation: Innovation is the key to sustain & succeed. Senior
Leaders have created a culture to foster and drive innovation. Using
systematic approaches, teams and individuals are encouraged to
explore new technologies, alternative methods and processes, and
to submit ideas. Employees are encouraged to file and acquire
Patents. Senior leaders also encourage risk taking and reward
ideas. The innovation examples in products, process and system
are given here with (Fig. 1.1-06).
Climate Change Initiative: Gray to Green

Actions taken
2012
?
Evaluation of
Carbon Footprint by
an external agency.
?
Disclosure in
international domain
(CDP/UNGC).
?
CERs traded &
monetary benefit
received.
?
Simple Dos & Donts
deployed across TML
?
Formulated Climate
change policy
?
Environmental
Procurement policy
for Suppliers
?
Green Building Policy
Way Forward - Action

Planning 2012 beyond
?
Pursue innovative
products with
lowest CO2 and
highest mileage
?
Integration of
Climate Change
initiatives across
functions, locations,
suppliers and
channel partners.
?
Actions to minimize
environmental
impact
?
Suppliers and
dealers to adopt
Environment
Management
System -ISO 14001
Fig. 1.1-06
Structure
Innovations : Examples
Processes / Examples
Leaders promote
innovation by
rewards / recognition
Ace (which created a new segment

and establish world record of
1,00,000 sale in just 22 months),
NANO (revolutionized global
passenger car market with ultra low
cost car segment), Indica 25 KmPl,
Zip etc
-PACT to reward high

performers
- Meetings with top
executives (Coffee
with Boss)
- JRDQV Quality
Awards on 29th July
Process
Tata Nano Booking & Allotment Process, to operators & Teams
Tata Magic -ITC Choupal sagar
Innovations
- Suggestion Awards /
rural initiative, Tat Alert, Sales force
points & recognition
automation process etc
- QCC/SDT
Engineering
ECU arrangement for Winger, Ace, Competitions
Magic; Estimation of Battery state
- Felicitations in
Innovations
of charge
Communication meetings
- Challenging
Organizational Various energy conservation
assignments
projects, Generating secondary
Innovations
- Innovision participations
paints from Paint, bricks from
and awards
effluent sludge
Product
Innovations
Promote an organisational environment: The Leadership team

has included these issues (Safety, Climate Change, Quality etc ) as
part of BSC Objectives and also modified daily monitoring systems
by incorporating E parameter (SQDCME and VMCDRE). Similarly a
significant drive in ERC to develop alternate fuels, fuel efficient
engines, reduction in GHG emission from products are encouraged
by Senior Leaders. The Nano has lowest CO2 emission per
kilometre of 101 Co2 g/km and Indica eV2 has highest certified
milage of 25 kmpl in its segment.
1.1a3 Creating a Sustainable Organisation
Accomplishment of mission: As described earlier, Leaders
participate in strategy development and its execution. Leadership
System (Fig. 1.1-01) guides to accomplish strategic objectives.
Frequent communications, cascading of BSCs, championing
strategic initiatives, review mechanisms, creating a culture of high
performance are some of the major focus areas of Leadership
system. This is reinforced through a Robust Strategy Planning
System (Fig. 2.1-01), Enterprise Risk Management Process, HR
and other Stakeholder Management Processes.
Leadership actively engages in these processes for creating a
sustainable Organisation. Senior leaders are ensuring long term
stability and sustainability through l
Development of long term technology roadmap and product plans
which continuously evolve new variants of vehicles as well new
family of engines to meet or exceed customer requirements.
Engagement with JVs to bridges gaps, Investments in R & D
l
Active drive towards World Class Quality
l
Enhanced safety, security & corporate ethics with opportunities for
learning and growth (Ref. 1.1a2)
l
Commitment to Triple Bottom Line drive (Ref. 1.2c1)
l
Focus on various stakeholders (Ref. BSC - Fig. 2.2-05,07,08)
Performance improvement (Ref P2c): Senior leaders as part of
deploying the Vision, Mission and strategic objectives, encourage
and communicate to the entire workforce through strong, frequent
and systematic communications. Through various communication
forums like Town-Hall / Mass Communication / sunrise meetings,
senior leaders continuously inspire employees for giving their best to
the organisation. Keeping in view above critical sustainability
factors, senior leaders have created an environment for
organisational performance improvement by self championing of
strategic initiatives, forming & reviewing CFTs on various topics,
Drive for ICR, WCQ, Safety, Productivity, Environment and by
Organisational agility: Fast and agile response in meeting

customer requirements and expectations is the key to success in
business. The process for design of Work System Structure
(Fig. 6.1-01) ensures that organisational agility aspects, measures
and targets get built into key work processes (Fig. 6.2-01). Senior
leaders involve themselves and other employees at all levels to
focus on key change initiatives driven by response to market
scenarios. Rigorous reviews in the steering committee meetings
enable to change and create action plans to meet ever-changing
customer expectations.
TML's capability of making different models and ability to ramp up
volumes for any particular model, wherever demand is very high is a
good example of agility. To site few examples, TML had rolled out
Nano vehicles from Ace lines in Pantnagar within four months,
similarly last year, SUMO GOLD was produced and sold with speedy
planning and execution to address sudden market demand .
Performance leadership: Leadership has always been competitive
in creating new market segments & innovative products for those
segments. There are many such examples like 407, EX Series
vehicles, Ace, Nano, Prima, ARIA etc. Leadership always strives for
giving value for money to customers through innovation while taking
aggressive, stretch targets and implementing best practices which
has helped Company to be a Number 1 in CVBU as well Number 3 in
fiercely competitive PCBU segment.
Leaders have been awarded for being role models and for their
contributions at different industry forums such as SIAM, ASCI, ISA,
Cll and ARAI and as a part of key trade and business delegations.
Fostering Customer Engagement: Customer focus is one of the
core values. It is reiterated and systematically driven by leaders all
9
TATA MOTORS
the time. Review forums like CCT reviews, as also internal reviews
like NPI, ICR, WCQ etc. emphasize that Superior Customer
Experience supersedes everything else while deciding any action
plan. Customer Care Day, Tata Alert scheme, Customer Loyalty
Card, service at construction sites, product websites, Customer
focussed R&R system for employees etc are some of the recent
actions to improve the customer focus in the organisation. The
various mechanisms (Fig. 1.1-08) are used to ensure positive
customer experience across levels in the organisation.
Organisational Workforce learning: Joint forums have been
organized for learning and sharing with JV / Acquired companies.
Benchmarking through tear down exercises and craftsmanship
audits by TMETC has helped in promoting an environment for
Organisational learning. In order to imbibe world class processes
and practices, the leaders encourage employees visiting, learning
and improving from auto exhibitions, seminars, workshops and other
World Class Organisations.
Employees who show aptitude for engineering and management
excellence are sponsored for advance technical / management
programs in reputed institutes. Recently TML has launched Learning
Advisory Council, which oversee the relevance of various training
programmes. Technology day seminars are done on a regular basis
to promote learning within organisation as well as with suppliers.
Example of some initiatives taken in PCBU for customer focused
culture demonstrate senior leadership commitment (Fig. 1.1-07).
Fig. 1.1-07
Creating Customer Focus Culture
Stake Holder
All
programs based on Tata Leadership practices, transition point

training programs at each vital level of leadership are the formal
methods used for development and enhancement of personal
leadership skills. The premier institutes like IIMs, SP Jain Institute
etc through specialised courses in management help in keeping the
leaders abreast of contemporary management tools approaches
and thinking. Similarly various leadership development programmes
such as 'Excelerate', Effective Team Leadership, TGSLS, TGELS,
GEMS, Catalyst, EDP, Zenith, iTeach Train the Trainers, Gurukul, Art
of living etc. hone the required leadership skills across the cross
section of employees.
Succession planning: All senior leaders are expected to develop
future leaders who can take up higher responsibilities or take up
expanded roles at short notice. This is ensured through internal HR
evaluation meetings conducted periodically. Succession planning
process involves communication, BSC based performance
evaluation, assignment on key projects, and feedback mechanism.
Delegation, on-the-job feedback, handholding and mentoring are
the tools used for this purpose. Promotions and job rotations are
aligned to the requirements of succession planning as appropriate.
Leaders are actively involved in various assessment centres, such
as Development Centres, Fast Track Selection Schemes, Talent
management, and Internal GET and OT schemes to identify &
develop future leaders.
1.1b Communication and Organisational Performance
1.1 b1 Communication: Communication is a very critical activity
as mentioned in the Leadership system and at the individual
level; each leader is responsible for communicating with and
engaging the workforce at all levels, to build commitment. Various
approaches like Town Hall meetings, Visual Displays, Sunrise
meetings, CFT reviews, PACT interactions, etc are being used.
Goals are discussed during such meetings with an element of
stretch.
An environment of empowerment is continuously built through
delegation of authority with trust and adequate support. This
motivates employees to work for the stretched targets and find
innovative ways to achieve these stretch targets. Apart from this
various processes and methods such as performance linked
rewards / benefits, career progression, Annual calendar for monthly
engagement initiatives like Coffee with Big Boss, etc. recognition
and learning opportunities are some key factors for employee
engagement.
Frank and two-way Communication: All communication meetings
are conducted in an interactive format that is conducive to free flow
of ideas and feedback. Most of such review and communication
sessions are followed by an open house where questions on
subjects ranging from markets, customer preferences, new
technologies, HR related and others are asked to the Top
Management. These help clear any ambiguities regarding the way
forward. Key issues raised in skip meetings are noted, tracked and
closed appropriately.
While the annual meetings are followed by Q&A sessions and are
two-way to a large extent, periodic communications are planned on
specific agenda points for more thorough, dialogue based and action
oriented interactions, e.g. Bay owners meeting on safety, Joint
Management and Divisional council meetings for IR, safety and
other related issues, skip level meetings with lower to middle
management managers for ideation and understanding current
issues.
In addition, weekly and daily meetings in Sales and service teams
including Dealership members, SDTs, Sunrise meetings and
functional sub-groups are also a means to communicate priorities of
TML, and are two ways in nature. PACT programme necessitates
Goal Setting / Mid Term Clarification / Final appraisal discussions
with employees. System level checks have been installed to ensure
that these are a two-way process e.g. Coffee with Big Boss.
Initiative for Customer focused culture

Deployment of the EXCEED program across all dealerships to focus on
higher conversion through better customer experience
Strengthening of PCBU Sales and marketing organisation - 45 Area
offices with 600+ customer facing employees in sales and service to be
closer to customers
Focus on retail - Shifting all measures & incentives from primary sale to retail sale
Creation of a separate specialized function of Consumer Insights in PCBU
Dealer Senior
Management
Incentives linked to a Dealer Score Card has 30% weightage

on customer experience parameters.
Dealer Customer
facing team
Discussions and action taken on Sales PSF call results in regular meetings
at dealerships. Dealer Sales executives incentives linked to PSF scores.
TML Field
team
High weightage of customer experience parameters (SSI,CSI,

complaint management parameters etc.) in individual KRAs
Fig. 1.1-08
Creating Culture for Positive Customer Experience
Organizationa Processes to drive positive

l Level/Group customer experience
Steering
Committee
Plants
Functions /
Departments
CXs/Groups
Teams and
employees
Suppliers and
Partners
Processes to verify that

this approach contributes
to customer engagement
Leadership System, BSC, Customer Internal and External Surveys,
& Dealer Meets, Customer Centricity, Customer and Dealer Feedbacks
CCT meetings, TCoC deployment
(PMS, Compensation package)
BSC, Key Customer and Dealer Meets,
Customer Centricity, CCT meetings
BSC, Key Customer and Dealer Meets,
Customer Centricity, CCT meetings
External Surveys, Customer,

Dealer, KAM Feedback, PQI
External Surveys, Customer,
Dealer, KAM Feedback
BSC, Key Customer and Dealer Meets, External Surveys, Customer,

Dealer, KAM Feedback, PQI
Customer Centricity initiatives
BSC, Key Customer and Dealer Meets, External Surveys, Customer,
and Dealer, Feedback, Customer
Customer Centricity initiatives
& Warranty complaints, PQI
Dealer Scorecard, Strategy cascade, Audits, Complaint and Warranty
vendor & channel meets, Kaizen
analysis, ISO certification,
events, Dealer Council & Meets
Safety, e-learning, Proj Parivartan
Develop and enhance personal leadership skills: Senior

leadership regularly updates and hones their leadership skills
through various formal and informal methods. Structured training
TATA MOTORS
10
Effectiveness of communication is validated through Employee

Satisfaction surveys (Fig. 7.3-28) .
Communicate Key Decisions: Key decisions are taken in SC
Meeting, Plant and Functional Level monthly / periodic meetings,
agenda based meetings like cost reduction, NPI, Product Design,
Product Quality, etc. Here the senior leaders either ratify the
decisions taken by accountable heads or modify them based on
organisational priorities.
Rewards and recognition: Leaders provide challenging tasks and
projects to employees. Leaders are active in all phases of R&R
programs - right from helping set stretch targets at organisational,
plant/ function level, and factory/ division level, to reviewing
achievements from time to time, guiding / coaching during
interactions, thus motivating employees to do well, to finally
recognising the best performers, and helping the others achieve
targets.
Leaders play active role in designing performance assessment and
reward programs. e.g. leaders were part of Focused Group
Discussions to decide the nuances of the PACT program. Similarly
Dealers and Vendors are recognised for their good performance
(based on set parameters) during their respective meets.
Contractors are recognised for their safety performance in annual
meets.
Leaders personally recognise employees (Fig. 1.1-01) who have
done well by sending them to premium training programmes.
Members of Steering Committees at all levels personally review the
projects and promote & motivate teams to present their success
stories to higher organisational levels.
Innovative ideas, good suggestions, pokayoke implementation,
SDT achievements in Regional / National levels, Safety
improvements on shop floor by Safety stewards are also recognised
and rewarded in functions by operating level managers. Shop floor
operators are actively taking part in explaining their achievements to
Chairman during his shop rounds in the Plant.
Key objectives and measures related to Ethics, innovation,
safety and climate change form part of BSC, and also in the
cascaded scorecards at plants / functions. During the periodic
reviews, accountable heads present the performance against these
parameters. Senior leaders provide their inputs to these teams.
Leaders have also framed many non-monetary recognition
approaches. Suggestion scheme is one such example where both
monetary and non-monetary rewards and recognitions (Fig 7.3-32 )
are provided to employees. Divisional suggestion co-ordinators are
recognised for their efforts by participating in the get-togethers with
senior management team.
1.1b2 Focus on Action
Senior leaders play lead role through the committee structure (Fig.
1.1-09) to drive short and long term strategy, which includes quality,
innovation, safety, climate change along with the appropriate
initiatives. The Performance reviews help to plan appropriate
countermeasures keeping in mind changes, if any in external
environment. These reviews include actions related to all channel
partners and vendors / suppliers wherever relevant.
Balancing Stakeholders expectations: BSC is the mechanism to
balance the values proposed to various stakeholders. The four
perspectives help in setting meaningful and balanced set of targets
for customers, suppliers, workforce, environment/ climate change,
and finally the shareholders.
During various reviews, it has been given prime importance that the
stakeholders interest is guarded in-line with company's value
system.
Various accolades received from stakeholders (Fig. 1.1-10) coupled
with equally strong operational / financial and market performance
establishes that TML does create appropriate balanced value for
stakeholders.
The satisfaction levels are measured for stakeholders like
Customers, Employees, Vendors and Dealers and action plans are
prepared based on areas of improvement.
1.2 Governance and Societal Responsibilities
1.2a Organisational Governance
1.2a1 Governance System
Providing oversight to the business: Organisational Governance
and review mechanisms are explained in the P1b1. The BODs along
with its committees provide leadership and guidance to the
company's management. Each of the committees of BODs has
either a Charter or Scope of Reference. These define each of these
committees including composition, quorum of the meetings etc.
Scope of reference to most of the committees are laid down by the
Tata Group, however, some of the committees like Investor
grievance committee are company specific.
The performance reviews by the Board is based on the various
reviews of the above Committees and also the OpsCom and
ManCom reviews (Fig. 1.1-09), including progress on Safety,
Sustainability, Business Excellence and Climate Change. BoD
meets eight-nine times in a year against the stipulated frequency of
once in quarter.
Fig. 1.1-09
Committees & Members
Tata Motors Level
Executive Committee of
Board (ECOB)
Chairman,
BOD,
Management
Committee
Operations Committee
(OPSCOM)
Chairman, Vice Chairman,
MD-India Operations, Vice
Presidents, Plant Heads & Invitees
Management
Committee (MANCOM)
Vice Chairman, MD - India
Operations,
Vice Presidents
Leadership Structure and Performance Review

Key Objectives & Areas of Importance
?
Review business opportunities and threats
?
Strategy review and refinement
?
Laying down policy framework for the company
?
Guide the companys strategic
course and review progress
?
Review of business performance
across the company
?
Setting directions for the company
?
Review progress of strategic
initiatives and achievement of long
term goals
?
Identify organic / inorganic growth opportunities
Business Unit Level

Steering Committee
(SC)
MD-India Operations,
Vice Presidents,
Plant/Functional
Heads & Invitees
BSC reviews
NPI reviews
Divisional Committees
Divisional Head, All
Dept Heads
?
Monthly review of business unit performance and
operations relative to short term goals, objectives
and targets
?
Review of market place performance and customer
complaints
?
Review of action plans and results of improvement initiatives
?
Making mid-course corrections to achieve business
unit goals
?
Cascading the business unit goals to department levels
?
Review of Business Excellence initiative.
?
Progress on Strategic initiatives
?
Progress of new projects.
?
Deployment of action plans to achieve departmental goals
?
Review of departmental performance
Suggestions / Directions from the members are tracked through

Action Taken Reports for implementation. Board thus promotes and
is responsible for good governance within the company, ensuring
strategic guidance to the company, and effective monitoring of the
management.
Risk management and internal audit functions helped to understand
any gaps if any.
In line with Tata Group's focus areas, management has appointed
Corporate Heads for Safety, Sustainability and Legal to enhance
11
TATA MOTORS
Fig. 1.1-10
Balancing Stakeholder Needs : Awards and Accolades
As a good corporate governance practice, the company has voluntarily undertaken an

audit by Independent practising company secretary for secretarial records and
documents in respect of compliance with the provisions of the Companies Act, 1956,
listing agreement and applicable rules, regulations and guidelines of the SEBI.
Succession Planning.
The appointment and succession planning of MD and EDs is decided by BoD.
Succession Planning of senior leaders is decided by MD and members of the
Management Committee.
The leading market share and awards proves that we are balancingthe stakeholders needs
Shareholder & Investors:
Good Green Governance award
in Nielsen survey
'Company of the Year'
Community:
Green Governance
Suppliers:
JRDQV & CII-Exim Corp Platinum Award
Deming Awards
Rajiv Gandhi NQA
S&P/ICRA rating
ACMA awards
Excellence in Energy
Listing at NYSE
QS9000 certifications
Golden Peacocks for Safety,
Best papers/Case Studies
Quality, OHS & Training
Best case study on KAIZEN
GeenTech Environment
eCRM-Siebel
Notable COP report
IT Service Management
Best CFO, ABCI Awards
Customers:
Channel Partners:
Golden Peacock for
Best Dealerships
Customer Training
High mileage awards
Driver & Mechanics awards
All India Best Distributorship
Superbrand India award
award
Employees:
CV manufacturer award
Wahtuk Mitra Award to
SDT Awards
Udyog Ratna
Pandit Auto
Best Employer
Innovation award - Orion
Excellence in Suggestions
AIMA's awards,
Handa Golden Key award
SP
S
1.2a2 Performance Evaluation

Performance evaluation for members of governance board: The
Nominations committee evaluates performance of independent and
non-executive directors of Board for deciding on re-appointment of
Directors at the time of their retirement by rotation at end of three
years. Remuneration Committee evaluates the independent and
non-executive members for deciding on the compensation to be
provided to each director.
The Board has self-evaluation process under the purview of
Remuneration Committee and Nominations Committee. Audit
Committee annually performs a self evaluation to appraise its
performance vis--vis its Charter. The Audit Committee also reviews
adequacy of internal audit function, coverage & frequency of audits
& performance of the Chief Internal Auditor.
Performance evaluation and executive compensation for
senior leaders: Based on company's strategy, the Balanced
Scorecard is prepared and BOD reviews performance of the
Managing Director based on achievement of strategic objectives for
both the Business Units. Executive compensation is finalised by
Remuneration committee and higher weightage is given to company
and business performance. MD evaluates performance of the
members of the Leadership System. These reviews are based on
the achievement of strategic objectives and targets. Senior
Leadership also has Performance Management System (PACT, Fig.
5.2-03) evaluation including compensation determination which
assesses not only goal achievement but ability to display Tata
Leadership Practices .
Improving Leadership effectiveness: As part of TML Leadership
system, Senior Leaders review their own effectiveness (Fig. 1.1-01)
and also that of the entire system annually.
The multiple inputs assessed through various stakeholders
engagement approaches (Fig. 1.2-02) and Mechanisms to track
leadership effectiveness (Fig. 1.2-03) are used to improve both
individual leadership performance and that of leadership system.
Above feedback helps to identify areas of improvement and further
develop their personal leadership and effectiveness. Reviews on
identified attributes (Fig. 1.2-04) help to indicate whether
performance is on track in improving effectiveness.
Tata Motors has been ranked as the Most Reputed Indian Firm.
(No. 1 Company on Corporate Image) as surveyed by A C Neilsen
in the current year.
1.2 b. Legal and Ethical Behaviour
1.2b1 Legal and Regulatory Behaviour
Identifying concerns (Fig. 1.2-05) pro-actively: CMVR regulations
and excel performance in respective areas. TML received the

prestigious Golden Peacock Award for Excellence in Corporate
Governance for 2011 at the 11th International Conference of
Corporate Governance in London.
Fig. 1.2-01
Corporate Governance
Fiscal Accountability and Transparency

Tata Motors is one of the very few and only Engineering Indian companies whose
depository programme is listed on the New York Stock Exchange. The company
complies with USA regulations as applicable to foreign private issuers (Non-USA listed
company), which casts upon the Board of Directors and the Audit's Committee's
onerous responsibilities to improve the company's operating efficacies.
From SOX perspective, The company is open to scrutiny by USA SEC. SLT review the
company's annual report (20F) rigorously and ask for explanations in respect of
accounting treatment, additional disclosures, etc. The company replies to the same
based on which the review is closed.
ADRs/GDRs has been doing well since 2004. Around one lakh shareholders are
holding onto ADRs in the USA.
TML reports both as per Indian GAAP as also for USA GAAP. NYSE retail investors
would look at the Annual Report (20F) as per US GAAP.
To increase the shareholders/investors awareness various initiatives like factory visits,
investors meets and road shows (deal and non-deal), shareholder meetings,
publication of quarterly/half yearly annual reports on websites etc are undertaken.
Selection
Nominations Committee is entrusted with the responsibility of ensuring composition of
the board appropriate to the requirements of the Organisation and evaluating the
Directors' performance while deciding their remuneration/ commission. BOD keep
assessing the gaps in the composition, and identify prospective directors for inclusion.
Recent examples of inclusions are evidence of the same (Ref. Annual Report).
Protection of Stakeholder's Interests
The Balanced Scorecard approach adopted by the Management ensures that
expectations of various stakeholders groups are addressed. Review of Strategy
implemented is discussed by the Board. In addition, while Investors' Grievance
Committee oversees the redressal of investors' complaints, the Audit Committee
reviews business risks every quarter. This involves TMLs ability to meet strategic
objectives for other stakeholders.
Risk Management
Risk Management program Owner facilitates review of top risks on regular basis. Risk
Program Managers support the owner with overall and plant/ function level risks.
Independence of Internal/external Audits
One of the highlights of the Audit committee composition is that all Audit committee
members comprise only independent and non-executive members. Beginning of the
year, a plan of audit is discussed and finalized. In each of the Audit committee
meetings, members interact with management, internal audit team and the external
audit team.
The statutory auditors give their findings on a quarterly basis. Clarifications are sought
by the board from these three teams, and suggestions for improvement of the audit
practices are also provided. The internal and external audit teams, sometimes,
conduct audits in the same areas, thus facilitating calibration of the quality of the audits
done.
TATA MOTORS
Fig. 1.2-02
Stakeholders
Shareholders
& Investors
Customers
Collecting Stakeholders Inputs

Engagement methods to determine requirements*
Shareholders/Investors Grievance Forum, Ethics Committee
Customer meets, Customer Satisfaction Survey, Customer visits, Visit to key accounts/STUs
Suppliers
Vendor meets, Vendor Satisfaction Survey, Vendor Council, Vendor mentoring
Dealers
Employees
Dealers Council, Dealer satisfaction survey, Dealer visits

H R Forum, Q12 tool, Skip level, Town Hall, Focused Group Discussions
Communities/ Regular interactions, Donations Committee, Disaster Relief Committee,

Govt Affairs Dept, NGO & Industry forums such as CII, MCCIA
Govt
12
Fig. 1.2-03
TML proactively capture current & future concerns and use them in
Strategy Planning System (Fig. 2.01-01)
For Future Products, NPI and ERC teams are directly responsible for
proactively identifying and mitigating such concerns. Various
Gateways like DR2, DR3, DR5 etc check and addresses impact of
Products, Processes, Services etc.
In addition, inputs from SIAM, visits to Auto Expo and NPI's VOC
help us in identifying public and societal concerns from products.
These inputs act as guidelines to ERC / NPI teams for new product
design as also for modification in the current range of products. ERC
has facilities for testing compliance to requirements concerning
Noise, Vibration, Harshness, Crash scenario, etc. so that it is able to
deliver environmental and societal safe products. These facilities
have been built as per international standards to have competitive
advantage over domestic competitors.
For international markets, TML has proactively identified safety and
other product homologation requirements.
It has also tied up to collaborate with Department of Science &
Technology to improve recyclability and thus conserving natural
resources. TML has adopted Green Building policy and have
designed new factories accordingly while Pune Pimpri plant has
secured Golden rating Green Certification from IGBC and Dharwad
plant is in pipeline. This certification ensures optimum utilisation of
natural resources, energy, water and power over life cycle of the
plant with enhanced comfort to employees and positive favourable
impact on society and surrounding.
Impact of operations: Having understood product design
requirements to address public concerns, Auto/ Central Planning
function is responsible to plan the necessary processes for
production. These processes take care of likely public concerns
related to manufacturability, serviceability, maintainability, safety
and productivity of the production processes. Public concerns with
the operations are also clearly articulated in guidelines such as
ISO14001, OSHAS18001, SA8000, regulations by the Pollution
control Boards, SOX guidelines, etc. and TML address all these
through periodic audits by Third Party validations.
Legal Cell, ERC's Technical Cell and Plants' Safety functions cull out
the legal implications of its current and future operations through
constant dialogue with government, research institutes, and other
regulatory bodies. Finance interacts with national and international
financial bodies to understand likely effects of actions in the market.
TML also anticipate concerns proactively by collecting inputs for the
Environmental Risk Management process from interactions with
regulatory agencies and Standards Institutes (Fig. 1.2-06).
While designing the factories at Dharwad and Pantnagar, the factors
related to effluents, exhaust, water consumption are critically
checked and confirmed that there is no adverse impact on the
community and environment. Green building principles have been
used for example RO plant has been installed after tertiory treatment
of effluent for generating processed water. Similarly power for office
Senior Leaders - Evaluation and Improvement
Type of Review
Frequency
Changes Driven
Balanced Scorecard
Month, Quarter, Annually
Personal, Team/Resources
Employee Survey (Gallup) Annually

Personal and Policies
Performance Review
Annual with semi - annual updates Personal and Team
Personal and Policies
Focus Group & Skip -Level Monthly
meetings
Half -yearly and
TBEM (Internal Process
Assessments and External) Annually
Processes and linkages

Improvement initiatives
Half Yearly
Self Evaluation
Personal Development Plan Half Yearly
Personal Actions
Personal and Team
Fig. 1.2-04
Leadership Effectiveness
Leadership attribute
Measure
Leadership System effectiveness
Overall
TBEM score
12
Communication
Q attribute score
Promote safety, innovation
Safety Observations, Suggestions,
IPRs, Participation in Innovation
and empowerment
Events like Imagineering, Innovision
12
& Innovista, Q score
Deployment of excellence
Corporate Assurance Process
framework
Survey score
Leadership (individual) effectiveness
12
Leadership style
Q score
Consistent performance
BSC/ MPA performance vis-vis Targets (Figs. 2.2-05, 07, 08)
Result
7.3-29, 30
7.3-18 to 24
7.3-32 to 36, 38
7.3-26
BSC results
are formulated based on safety and environment related concerns

expressed by public forums. These concerns are converted into
CMVR regulations by Government. It ensure that all products are
100% CMVR compliant. Many times TML is well ahead of CMVR
regulations and also represent the country for deciding regulations
at the international stage.
Fig. 1.2-05
Anticipating Current and Future Public concerns

for Strategy Planning System
External/ governing agencies
Input collected by
SIAM, ARAI, DGS&D, Centre for Science ERC, Govt. Affairs & Collaborations, Planning,
and Environment (CSE), SEBI, FIs
CC&E, Corporate Finance, HR/Legal, S&M, CC
Law making bodies, Technology providers, ERC, Planning, CC&E, Legal Cell
Draft of International treaties and protocols,
Visits to Auto Exhibitions, Foreign
Auto Companies, NGOs
ERC, APL, NPI, Facilities Group
Pollution Control Boards, State

Electrical Regulatory Commission
Utilities & Environment Management
Local and Regional agencies (by

Suppliers and Channel partners)
ISO Certifying agencies
All groups listed above
Opinion makers, Communities,

Society
Environmental Aspect Impact (AI) Study and

Significance Evaluation of Environmental Aspects (SEEA)
Figure 1.2-06
Data on CS by CDDs at each location, ISO 14001

(stakeholders feedback), Impact surveys
Environment Risk Management Process
1) Inputs/Regulations
Inputs - TCOC, Vision &
Mission, SPP, SC reviews,

Policies, Local Crisis Groups
TML products generally excel on these requirements and match

international competition. TML launches environmental friendly
products in the markets by using the latest technologies available.
TML already have LPG & CNG vehicles in product portfolio and are
pursuing on development of electric vehicles (e.g. DTC CNG bus
fleet, Vista EV, Nano EV for developed countries).
It is committed to meet all emission norms on products that are
enforced from time to time in India and the international markets
where it operates Nano's safety & tailpipe emission performance
exceeds regulatory requirements. There by providing twin benefits
of an affordable transportation solution with a low carbon footprint.
Regulations:- Environmental
Protection, CMVR Rules,

International Draft standards,
GRI/CSR, REACH etc
4) Strategy Planning System

(SPS) (Fig 2.1-01)
Programmes (EMPs)
Evaluate and Prioritize
Continuous improvement
3) Review, Mid course

correction
Qualitative/quantitative measures of
SC reviews, strategy/KRA reviews
the risk (e.g.environment impact of

supply chain)
Action Plans for mitigation of risks
Quarterly Divisional Management
Performance measures/targets
13
2) Planning & Goal Setting
Formulate Environment
reviews & annual management

reviews
Ensure proactive action on future
technologies
TATA MOTORS
block at Dharwad has been generated from wind mills at terrace.

Conserving natural resources: All Plants have a robust system of
monitoring consumption and trends of natural resources as a part of
climate change management. The Carbon Footprint is mapped
every day and communicated. TML has also mapped Carbon
footprints of all its Tier 1 suppliers (360) and communicated to
respective suppliers with an appeal to have reduction targets year on
year. Case studies on conservation of resources on continuous
basis through website. Till date 192 case studies have been flashed.
These case studies have been appreciated by the vendors. Similar
critical checks (e.g. Oil and waste disposal) are done while designing
the services (and its impact) to customers at Channel partners. A
process of certifying all dealers to ISO 9001 is currently in progress.
Similarly, all vendors are either ISO 9001 or ISO/TS 16949 compliant
organisations.
TML has taken many initiatives and actions as part of climate change
Fig. 1.2-07
Area
management programme in line with National action on climate

change (Fig. 1.2-07).
Key processes: Various policies support all key compliance systems
and processes to select and ensure that the measures, targets
/goals address all associated risks and meet / exceed all regulatory
and legal requirements. Management regularly gets this work
inspected by internal and external agencies and validated by
TS16949, ISO14001 and OHSAS 18001 certified company.
To move toward surpassing regulatory & legal requirements, it
conducts training, audits and KAIZEN events at Vendors & Channel
Partners. Dealers get covered through inspections / audits.
Compliance is fully checked before awarding the dealerships &
supplier code.
1.2b2 Ethical Behaviour
Senior leaders recognize the need to conduct the business in legal &
ethical manner. The Tata Code Of Conduct (TCoC) guides employee
behaviour and business operations. The Ethics and Compliance
Committee was constituted to formulate policies relating to the
implementation of the Tata Code of Conduct for Prevention of Insider
Trading (the Code), take on record the monthly reports on dealings in
securities by the "Specified Persons" and decide penal action in
respect of violations of the applicable regulations / the Code.
Whistle Blower policy has been adopted which provides formal
mechanism for all employees to approach Management and make
protective disclosure regarding time frames prescribed in the policy.
1.2c Societal Responsibilities and Support of Key Communities
1.2c1 Societal Well Being.
Senior Leaders strongly believe that holistic growth of community
especially of weaker and depressed section is an important
contributor for sustainable growth of the Organisation. Senior
Leaders believe in facilitating positive change in the community
rather than be just the donor. The thrust areas identified for CS are
Health, Education, Employability and Environment (Fig. 1.2-08).
While every location based on local requirement implements various
CS programmes in line with strategy, there is a common theme
across the organization as well. TML has started its journey on
Affirmative Actions and this has been well appreciated at Tata Group
Climate Change and Low Carbon Growth
Work done (Few examples)
Green House Gas Reduction: Development of Fuel cells Use of diesel as fuel
and fuel efficient products Although no regulatory standard for Co2 and fuel
efficiency for different products are specified in India, care is taken to reduce the
Co2 emission and increase the fuel efficiency from the product with introduction of
advanced technology. Development and use of Common Rail Fuel Injection to
bring down the CO2 emission Use of energy efficient AC systems, Heat
exchangers & Condensers and restrict usage of the AC refrigerant HFC-134a All
HVAC system components are 100% checked for refrigerant leakage - well below
the specified limit (40 gms/ year)
Going Green : Bus development - Hybrid, Electrical, Fuel & CNG Use of Biodiesel engine and use of Ethanol gasoline blend Use of Hydrogen in CNG for
CVs Exploratory project along with IIT Chennai has been initiated for the use of
Hydrogen fuel LNG Truck by TDCV, Korea . Bus Rapid Transit system to provide
better service and to reduce load on traffic Lead free - wheel balance weights,
printing inks, bulbs, alternate designs/coatings, coatings for fuel tanks, carbon
brushes for electrical motors etc. Asbestos free brake pads & clutches
introduced Water based paints are being used to avoid VOC emission Green
buildings Waste land reclamation
Reducing Emission levels: Refrigerant CFC-12 (ODS) and will be phased out
by the year 2010 Pollution level reduction for CVs (Diesel engines) thru BSIII &
CNG vehicles, BSIV
Use of Non-Hazardous Material: Asbestos free brake linings For reducing
noise levels, measures such as Acoustic shields, Silencer redesign, Viscous or
Electric Fan were taken to reduce exterior noise of the vehicle as it is accelerated
on road at high engine-speeds
Contribution towards Sustainable Environment: TML is working with the
steering committee of National Hydrogen Energy board to find the ways where
India may harness hydrogen potential energy of future TML representatives are
on several National Committees working for improvement of environment
throughout the country
Energy Conservation: Incorporated environmentally sound practices as one of
its prime objective - in its processes, products and services. All Plants have
achieved certification to the ISO-14001 & OHSAS 18001 Standards Energy
conservation measures have been implemented at all the plants and offices.
Company has already started Energy Accounting & Energy conservation
programmes It traded the CERs through e-bidding on the Chicago Climate
Exchange Use wind energy for last 7 years and has earned and encashed the
carbon credit points (worth Rs 15 Crores) and has leadership in the Group,
Mirrors used to dry waste at ETPs
Waste Management: The wastes are disposed by various pathways which
include - direct incineration, direct landfill and landfill after treatment. Few
innovations have been implemented in this area such as bricks from the sludge
Weight reduction, End-of-Life (ELV) Vehicle and Recyclability of products &
of Packaging Materials: The treated effluent is re-used for various low-end
purposes such as toilet flushing, floor washing, horticulture, etc and as make up
water to various cooling towers. It is mandatory for each new location coming up.
Lakes created at Plants receive ETP treated water in several lakh litres which
enriches ecosystem and it bears testimony that ETPs are working effectively.
Wood recycling by 90%, recyclable pallets, returnable pallets,
Rain water harvesting and water conservation: The rain water harvesting is
done in a big way and re-circulate several lakhs litres of rain water every year
TATA MOTORS
Fig. 1.2-08
Activities
Description
Community Support Activities
Extent of Support
Area Benefiting
Key Focus Area Health

Maternal health care, VHWs, villages around
Mobile Medical, Low cost
Plant & Non
toilets, Cleanliness drives,
Plant locations
Preventive & curative
health programmes
Senior
Leaders
Panel of
Senior
Doctors &
Health
workers
Results
Fig. 7.4-47
Key Focus Area Education and Participation

Infrastructure, Teacher
Schools at Plant SC members,
Locational
training, Extracurricular
& Non Plant
Fig. 7.4-48
activities, Technical &
locations, School HR & CDD
Heads,
committees,
Driver training, Enhance
Volunteers
Employees,
communication,
Volunteering, etc
CVBU
Key Focus Area Partnering and Employability
Employees,
SC members,
Working with NGOs &
Employment
HR & CDD
Institutes, financially selfHeads
dependent women, Youth opportunities,
Target project
employability, profitable &
self-sustaining enterprises areas
and SHG women
Key Focus Area Environment
Awareness, Tree plantation, Target project
cleanliness drive, Irrigation, areas
recharging of existing
resources
14
SC team,
Locational
HR & CDD
Heads
Fig. 7.4-49
Fig. 7.4-51
level for its contribution so far.

CSR organisational structure is responsible for implementation of
the Community Development programme. At the corporate level,
'Corporate Sustainability (CS) committee' guide and review the CS
activities. It also lays emphasis on volunteering from all levels of
employees.
Structured Implementation programmes are in place at various plant
locations, e.g. Samaj Vikas Kendra and Gram Vikas Kendra for rural
development; Parivar Kalyan Sansthan for providing health care;
Navjeevan Manav Samaj for cure and rehabilitation of lepers;
Shiksha Prasar Kendra for catering to educational needs of the
communities etc.
Senior leaders have played a major role in creating different
avenues for using the best skills, knowledge and aptitude available
with employees and their relatives which can be suitably leveraged
for this cause.
Employees' participation and motivational levels are high and are
visible as seen in consistent increase in number of volunteers and
increase in number of activities over the years.
Triple Bottom Line as a part of strategy: The strategy planning
system (Fig. 2.1-01) considers Corporate Sustainability as an
integral part of the strategy and it has been reflected in strategic
objective OP5. TML has process for driving the CS activities. The
objective gets cascaded through BSC process and is ingrained in
SQDCME for daily management.
The contribution of employees on this front is well appreciated and
rewarded in various functions. These activities are coordinated by
Head, CS and the locational CS teams with the help of volunteers.
It has adopted Triple Bottom Line (Economic, Environment and
Social factors) and has considered the well being of environmental,
social and economic systems by way of strategy development and
deployment.
1.2c2 Community Support
TML follows the Tata philosophy of community service.
Identified Key Communitiesand the Basis for Identification..
Health, Education, Employability and Environment are TML's focus
areas and therefore key communities are those sections of
community who need the best use of TML capabilities for their
benefits. People of different villages in and around the plant
locations who are directly or indirectly impacted on account of
operations and drivers who handles TML products have been
identified as key communities.
Since Sales & Service operations are spread over the entire nation
and identified under-served youth and SC/ST community as TML
key communities.
Areas for Organisational involvement: TML has documented
specific decision criteria (Fig. 1.2-09) for selecting and deploying CS
projects and programmes (Fig. 1.2-08). TML largely cover, on the
basis of priority, the stakeholders directly or indirectly impacted by
operations.
With technician training programs as well Driver Training initiative for
the under-served youth, TML has attempted to increase operational
areas beyond the plant locations. Technical training is being
imparted in Chennai, Coimbatore, Mumbai, Thane and Dehradun
(Fig 7.4-44).
Kaushalya is the employability initiative of Tata Motors is the single
largest skill development programme by any corporate in India. It
aims at skilling over a million youth on commercial vehicle driving
training in coming ten years. This initiative is Pan India initiative with
multi-stakeholder participation of Dealers, NGOs, skill development
organizations, State Development Corporate foundations etc. In the
effort to improve technical education at Industrial Training Institutes
(ITIs), Tata Motors has tied up with ten ITIs largely around its plant
location. Now the Customer Support has taken an aggressive target
of tying up with another 117 ITIs.

AA is central to TML CS programs. Specific focus & priority is given to
SC/ST communities on parameters like 'Education, Employment,
Employability and Entrepreneurship'. Materials function has taken
efforts to develop SC/ST vendors. In employability programs like
drivers & technicians training, specific mention on prioritising SC/ST
is done and a huge upside on beneficiaries from the communities
through Affirmative Action focus (Fig 7.4-53).
Drinking water has been identified as a need from the
communities around the plant locations. Under the aegis of Sumant
Moolgaonkar Development Foundation's Amrutdhara project, an
ambitious plan of providing Safe drinking water to 100 villages has
been undertaken.
All initiatives are conceptualized and implemented through the
stakeholder engagement (Fig 1.2-10). Inputs from TCoC, budget
(Fig 1.2-09), understanding the needs of the community through
interactions and study of capabilities in making the intervention
fruitful are used to prioritise the area of emphasis and the amount.
Senior Leaders and Employees Contribute
Senior leaders contribute in the CS activities and support the key
Fig. 1.2-09
Identification &
Selection of
communities
Learning and
Feedback
Selection of Communities and Project Execution

Need
identification of
communities
Phase out after

sustenance
Prioritization &
Selection of
identified needs
Evaluation of
impact of
project at end
Designing
projects for
addressing
selected needs
Resource
provision and
implementation
communities by creating the policies and guidelines, making the

right strategy and extending the support for deployments and
implementation in areas concerned and by reviewing on monthly
basis. SLT also participate as an individual employee (e.g.
donations, tree plantation, health programmes) and by championing
the projects in their own areas. The community support activities are
reviewed by SCs at various levels and shared with employees
through various media, site visits, and regional forums.
The involvement of senior leaders is decided at the management
committee level and at the plant committee level based on the
involvement having a potential impact which is worthy of their
participation. The progress of all community initiatives is measured
through CS Protocol, developed by the TCCI. CS assessment has
been made a part of the internal TBEM assessment (Benchmark
leadership in the Group) for better evaluation of impact and feedback
for improvement.
Fig 1.2-10
Engage with
Stakeholder
Learning and
Feedback
Stakeholder Engagement Process

Identify issues
and concerns
Report back to
stakeholders
Prioritise the
issues &
concerns
Implement
strategic
initiative and
review
Address the
issues &
concerns
Set goals and

targets
Communication & Progress: The Social and Environmental

performance is also reported separately in the GRI based report
which is 'A' level report, Communication on progress submitted to
the UN Global Compact, the CS Annual Report and the CS section in
the Annual Report of Tata Motors.
Over the time the business has progressed in CS maturing from a
'largely community based focus' to a 'business linked strategic
initiative with a nationwide footprint'. To synergise programmes
across locations, key projects have been identified which will be
implemented across. All the thrust areas have been branded for
higher visibility and recall (e.g. Amrutdhara, Vidyadhanam, etc.)
15
TATA MOTORS
STRATEGIC PLANNING
Launch of 'Tata Sumo Gold, Tata Venture, Tata Magic IRIS, Tata Ace Zip, Tata Aria 4x2, Tata Indigo e-CS VX
and new Tata Indica Vista'.
Tata Motors unveiled Assembly Plant in South Africa in just six months
Tata Motors & Japan's New Energy and Industrial Technology Development Organization developed an
environment-friendly dual-fuel based power generation facility
Tata Nano launched in Nepal and Sri Lanka
'Significant Achievement Award' at the CII-ITC Sustainability Awards 2011
Awarded for its organizational excellence at the 7th edition of the NDTV Profit Business Leadership Award
2011, in the Automobile (four-wheeler) category
Lucknow plant has won the prestigious Golden Peacock National Quality Award 2011, for overall business
excellence and quality standards, in the automobile category
Ahmedabad plant wins a Merit Award at IETEX 2011
Sanand plant receives Lakshya 2011 Awards in the Lakshya On the Job Achiever's Contest and Sparsha
Awards, hosted by the National Institute of Industrial Engineering (NITIE), Mumbai
Sanand plant won Gold in the large enterprise category, at the prestigious Economic Times India
Manufacturing Excellence Award 2011, in collaboration with Frost and Sullivan.
Western India launch of Tata Divo Luxury Coach and Tata Starbus Ultra
DEFEXPO India 2012: Tata Motors showcased Anti-Terrorist Indoor Combat Vehicle concepts
81st Geneva Motor Show: Tata Pixel, new city car concept for Europe, displayed
2.
STRATEGIC PLANNING
of market assessment and strategic options finalization feed into the
phases of strategy deployment, review and improve. (Ref Fig 2.101). The inputs to these stages are sought from a cross section of
employees/ key customers, consultants, channel partners etc
(Ref Fig 2.1-02). The SPS is integrated closely with the leadership
system of the company. The Board and it's Committees such as
Executive Committee, Audit Committee etc., and the MC, OC and
SC (Fig 1.1-06, 1.2-01) contribute in the evolution of Strategic Plan.
Identification of potential blind spotsThe leadership team at
the strategic levels by way of their participation across various
industry forums and interactions with customers, suppliers, dealers,
reputed consultants and industry analysts try to understand blind
spots and determine mitigation plans. The Board also provides it's
inputs on possible blind spots.
In the current, year the Company has commenced a comprehensive
process of scenario planning (Fig 2.1-03) with the aid of global
experts. The initiative primarily focuses on preparing the
organization to face the onslaught of multiple uncertainties in future.
These can be in the nature of social, technical, economic,
environmental and political uncertainties and can play out in various
combinations vis a vis each other thereby creating multiple
scenarios. The process identifies within each scenario the dynamics
of the industry and it's implications on the fortunes of the company.
The final step of the process incorporates specific strategic & tactical
plans to help the organization proactively prepare and prevent any
value erosion in the event of the occurrence of any of the scenarios.
Determine Strategic challenges, Advantages and Core
Competencies
TML follows the process (Fig 2.1-04) for determining the strategic
2.0 Strategic Planning

Tata Motors has a Strategic Planning System (SPS), which over the
years has been updated with stakeholders' inputs and modified
according to contextual changes of business environment in
domestic and international markets.
The Senior Leadership at Tata Motors drives the SPS constituting of
the following three stages:
1) Market Assessment & Strategic Options Finalization
2) Strategy Deployment
3) Review, Learn and Integrate
The business unit's have adopted the SPS and defined their
strategies (separately for domestic and IB) for the 5 year period
which includes the likely outlook on the economy, industry,
competitive scenario, market share projections, targets and
corresponding financial outcomes. After the sign off is achieved from
the Board, appropriate communication is made across employees,
vendors and dealers for effective alignment.
2.1 Strategy Development
2.1a Strategy Development Process
2.1a1 Strategic Planning Process
Strategy development at TML is a continuous process wherein the
senior leadership is constantly deliberating and challenging the
game plan for the business in the context of a dynamic environment.
As an institutionalized mechanism, it is an 8 step process wherein
the steps are either concurrent or sequential in nature. This
mechanism is anchored strongly on periodic scanning of the
environment and analysis to determine the key challenges and
advantages resulting into the strategic direction setting. The outputs
Fig. 2.1-01
Strategic Planning System (SPS)
Phase
Long Term Learning Cycle

Market Assessment & Strategic options finalisation
4
Strategic
Direction Setting
Target setting &

Resource
allocation
BSC
Deployment
Review
Evaluation &
Improvement
Outputs as listed
in Fig 2.1-2
Ref Fig 2.1-05, 07

& 08 (VMV)
Environment
scans
Environment &
Capacity analyses
Environment
scans
Environment &
Capacity analyses
Strategic
challenges
Study the following

Global Auto
industry
Macro Economic
trends
Impaction on PC
& CV
Analyses of
C
Countries
Identify blind spots
Risk identification
Conduct
Business
environment
analysis and
capability
analysis
Analyse blind
spots
Risk Mitigation
Identify Key
challenges for
short Term (up
to 1 Year) &
Longer Term (5
years)
Validate blind
spots
Determine BU
Strategy & Plans
Identify Strategic
objectives to
address key
short & long term
challenges
Prioritise and
plan actions on
blind spots
FinallizeOperating Plans for

Product, Domestic &
IB Marketing,
Manufacturing
Sourcing, HR, Capex
Revenue budgets
BU BSC - Goals
measures, timetable
& Strategic Initiatives
Plan & resource the
balance
BOD, Strategy
planning, LOB Heads
NVB, Country Managers,
MR, IB, product
management team,
CFTs, FIBERS, ERM,
HR, CSR, CIO, CFO
BOD, Strategy D
planning, Finance
ERM, HR, CSR
Materials, Mfg.,
Internal Audit
Planning & Environment, CFO, CIO
Strategy planning, Strategy planning,

team, Bus, SC, OC, team, Bus, SC,
MC, ECOB, BOD
OC,MC, ECOB,
BOD
Bus, Strategy
planning team,
Corporate Finance
SC, OC, MC, ECOB,
BOD, Erm
Resource
Allocation
Impact Analyses
on Bus
Country analysis
Critical blind spots
Breakthroughs &
innovations
needed
Risk Mitigation
plans
C
LOB, Product D
development
analysis, Financial
viability analysis,
Supply chain
analysis, Manpower
Analysis & Plan
Risk 7 other
Analyses as
Strategic
Challenges and
advantages
(Ref OP 21)
Quarterly Scan by Market Research

Monthly Scan by Business Planning (Month Thru Lenses)
16
All Scs
Assessment
Feedback
Consultant
Feedback
S C Feedback
Evalu
ate
Review BU
Evaluate the
Monthly Learning
Cycle
Strategy
Strategic Planning
Review (&
Process &
modify if
Incorporate
required) BSCs
Improvements
and initiatives
in next years SPP
ST Blind spots
Verify
achievement of
plans & balance
All Scs monthly

OC, MC, ECOB,
BOD
Strategy planning
team, BOD
Annual Learning Cycle

Cascaded
BSCs (Ref Fig
2.1-05, 07 & 08)
March-April
Every Year
Modifications in
strategy, initiatives
& Action Plans
Action Plans on
Red areas
Reviews of Risk
mitigation plans
Evalu
ate
Operating PlansProduct, Marketing,

Manufacturing,
Sourcing, HR
CAPEX, Revenue,
budgets BSC &
initiatives / Action
Plans
Develop next level

BSCs & initiatives
for
Plants / functions
Factories/ROs/
Divisions,
CXs/AOs/
Departments
Deploy plans and
balance
Five Year Plan 2010-15 and AOP/BSC every year

Quarterly / Half yearly / Annual Review
BU Strategic
Objectives and
action plans
As listed in Fig
2.1-2
Monthly updated
BSCs
rove
BSC
Strategic
Initiatives and
action plan
Imp
Strategic
Strategic
Objectives
rvo e
As listed in Fig
2.1-2
Analysis
Imp
Steps
Inputs
Activities
Environment
Scan
Revie
Key
Participants
ew
Revi
Outputs
Review & Improve
Strategic
Challenges &
Advantages
Time
Line
Strategy Deployment
Improvements
to the SPP
April - March
Every Year
TATA MOTORS
Fig. 2.1-02
Inputs and Outputs to SPS
Group involved mainly...
Key Factors
Key inputs from...
Tools & Techniques used

for Analysis
Collected through...
Outputs, few examples
All Functions :
HR, PSD, SSG, Materials, NPI, S&M
Regional Managers, Dealer Councils,
IB Product Managers, Finance and
Business Planning, Environment, CS,
Scs, Risk Management, etc
Strengths,
Weakness
Opportunities &
Threats
Operations, Functions,
HR, Vendor, Supply Chain,
Customer needs,
Competitive environment
scan, Resource
allocations, Community
Process measures, PMS,

Q12, Supplier Capabilities
assessment, VOC, VOD,
QFD, Product & Market
Studies, FIBRES, SAM
reports, channel partners,
Sigma levels, Trend analysis,

Skill gap analysis, Demand
analysis, Correlation, Cost
benefit, product performance
comparison
Product knowledge, Domestic & Country

information, Customer information,Manufacturing
road map, Manpower & high level skill overview,
Breakthroughs and innovations needed,
Economic & Regulatory Scenario, Trends in
Transportation Specific competition studies, etc
Finance and Business Planning,

ERC, Planning, NPI, Strategic
Sourcing, IT, Environment, Risk
Management, Corporate Planning
Early Indications of
major shifts in
Technology
Product & Process

technologies, New
products, innovations,
blind spots
Visit to Auto shows, ERC,

NPI, Planning, Vendors,
Consultants, Early Vendor
Involvement, benchmarking
Product range comparisons,

Product benchmarking,
Process benchmarking, Tear
down, scanning the web
Product knowledge, Technologies, Manufacturing

and IT Roadmaps, Current and Potential
Technology & Capability, Current & Potential
capacity Breakthrough needed, innovations

S&M, Dealer Council, CC, ERC/NPI
Strategic Sourcing and IT, Risk
Management
major shifts
Markets, Products,
Customer
preferences,
Competition
Sales & Marketing,

Customer Care, QFD,
Blind spots, VOC
Visits to Auto shows,

Sectorial studies, SIAM,
VOC, VOD, QFD, FIBRES,
Market Research studies,
Segment studies
Market and customers

surveys, Regression
analysis, VOC, Customer
satisfaction surveys, QFD,
etc
Product knowledge, Market and Customer

knowledge, Economics & Regulatory Scenario,
Technology, Manufacturing and IT Roadmaps,
Current & Potential Technology & Capability, Current
& Potential Technology & Capability, Current 7
Potential capacity, Regulatory requirements
breakthroughs needed, innovations through brain
storming, Market Research reports

ERC, Planning, NPI, Strategic
Sourcing, IT, Environment, Risk
Management, Corporate Planning
major shifts in
Regulatory
environment
Changes in regulations,
draft regulations, blind
spots
Regulations & drafts,

interactions with regulatory
bodies, ERC, NPI, Planning
Liaisoning with Govt. bodies

and authorities, interactions
with Regulatory bodies,
representation in various
regulatory bodies, Scanning
the web sites
Economics & Regulatory Scenario, Technology,

Manufacturing and IT Roadmaps, Current and
Potential Technology & Capability, Current 7
Potential capacity, Regulatory requirements
breakthroughs needed, innovations through brain
storming
Corp Planning, Finance and

Business Planning, ERC/NPI
Enterprise Risk Management, Mds
and Presidents Office
Long Team
Organizational
Sustainability
including needed
core competency
Risks (Financial,
Regulatory, Political,
Business, Social, Ethical
etc)
Interactions with statutory

bodies, Acts, WTO Audit
reports, World Bank studies,
CS reports, internal and
external assessments
Scenario analysis,
Compliance analysis, Risk
Heat map, COSO
framework, GRI and CS
framework, Risk analysis
Mission, Vision statement Preliminary Strategic

Challenges and CSFs, Current and Potential
Capacity, Process linkages, shareholders /
Analyst inputs, innovations
Mds and Presidents Office, SPP

team, Business Planning, All
Functions
Ability to Execute
Strategic plan
Strategic objectives,
inputs from all
stakeholders
SPP process steps,

interactions with
stakeholders
Cost benefit analysis,

Contingency plans, Trends
and analysis
Scenario analysis documents, BSC reviews,

Project Reviews
Reviews the plans, achievements and gaps with respect to previous year are taken as inputs for next year
Fig. 2.1-03
Scenario Planning Process
Fig. 2.1-04
Key Focal Issue
Core Competency Determination Process

Inputs from (Fig 2.1-02) Environment scan
Driving Forces
Early Warning
Signals
Critical
Uncertainties
Implications and
Options
Scenario Framework
Strengths
Weakness
Threats
Opportunities
Strategic
Advantages
Strategic
Challenges
Scenarios
Narratives
challenges, advantages and core competencies.

The core competencies thus identified are put through the following
test by the SCs while finalizing the strategy document to validate the
parameters and address the potential need for new core
competencies: 1. Does it provide potential access to different
markets? 2. Does it make a significant contribution to the perceived
customer benefits on the end product/ service?
3. Is it difficult for the competitors to imitate? Both CV and PC have
distinct core competencies (as indicated in figure 2.1-04&05). The
organization is currently deliberating on the need for a common core
competency across the BUs.
ST and LT planning time horizons
The planning horizons are systematically set to match with the
Industry conditions:
Long term planning horizons in the automobile industry globally
are primarily dictated by product development cycles. These
timeframes can extend from 3 to over 4 years for a full new product
(from concept to launch). Hence long term planning horizon is set to
5 years However, this is a rolling plan which gets validated every
year on account of dynamics in the operating environment.
Short term horizon is set to 1 year (AOP/BSC) to cater to the
TATA MOTORS
Screen all Strategic

Advantages
ST / LT
Leverage on ST
advantages
Cause:
Internal Factors
Core
competencies
deployment of detailed goals down the organisation and to align it to

the annual planning and budgeting cycles. The eight steps SPS
addresses the short & long-term planning time horizons.
2.1a2- Strategy Considerations:
The SPS process framework (Fig 2.1-01, Fig 2.1-02) ensures that
SPS addresses the key factors of SWOT, emerging trends in the
market and the environment at large to arrive at the future
projections keeping in mind the long term sustainability of the
organisation. The mode of collection of data, it's sources and the
corresponding tools and techniques deployed for analysis to arrive
at the relevant outputs (Fig2.1-03).
17
Budgeting is done for revenue and capital requirements.

2.1 b Strategic Objectives
2.1 b1 Key Strategic Objectives
Strategic objectives are derived at the end of step 4 of the SPS.
Given below are the Strategic Objectives and important goals
derived by the specific business unit's using SPP and considering a
time frame of 5 years:
CVBU
1. Growth in volumes
Achieve and maintain market share of 62%
Expand presence in emerging global markets
2. Grow global MHCV trucks and IMHCV bus volumes to be
amongst the top 3 in trucks & top 2 in buses
3. Lead creation of and aggressively grow SCV segment globally
4. Increase share of non-cyclical revenue from aftermarket and
defence business
5. Generate target revenue & ROCE to be amongst the highest in
the global CV industry in 2014-15
PCBU
1. EBIDTA > 7.5% by FY15
2. Be amongst top 2 by market share in India by FY15
3. Achieve top quartile performance in customer experience by
FY15
4. Achieve significant presence in select International markets
5. Build up on Value for Money brand into a more aspirational and
desirable brand
The Strategic objectives are broken down into four Balanced
Scorecard perspectives, namely: Financial, Customer, Business
process and Learning & Growth. This ensures a cause and effect
relationship from action plans to the Strategic Objectives. Progress
on each of the strategic objectives is monitored through identified
KPMs. The targets for these KPMs are set for a time frame of 2-3
years. The BSC and strategic maps for specific BUs, the detailed
strategic objectives, their time frames, related goals, KPMs and
benchmarks for the BUs with performance projections and
comparative data will be shown during the site visit. (Fig 2.2-05 to 08)
2.1 b2 Strategic Objective Considerations
Strategic Advantages and Strategic Challenges
Step 3 of the SPS identifies TML level strategic challenges and
advantages. This forms the foundation for determining the strategic
objectives in step 4 which are clearly articulated for the respective
business unit's. The senior leadership team ensures collection and
analysis of feedback in the context of strategic challenges and
advantages (OP-21) from various stakeholders before defining &
signing off the 3-5 year plans.
The Strategic Objectives are also developed to balance and address
stakeholder needs and strengthen the performance (OP21 and Fig
2.1-01). Strategy map and BSC creation process help in deciding the
strategic objectives in the Financial and Customer perspectives.
Objectives in the Business process perspective address the
operational challenges. The Learning & Growth objectives address
the challenges faced in people-related issues.
Opportunities for innovation in products, operations, and in
business model:
Key product and process innovation are integral to the SPS that
provides significant competitive advantage to the business.
For example CVBU product innovations have stretched across Ace
Zip, Magic Iris, CNG Products, Ultra and Prima Modular Chassis.
Similarly in PCBU the focus has been in addressing the emerging
LT sustainability
During the SPS, the long term opportunities are discussed to include
expansion into future potential markets - domestic and international.
Product strategy and development plans are aimed at long term
sustainability supported by improvement in NPI, supply chain and
implementing new technologies.
Projections of future performance As part of Environment
Scan, it gathers critical attributes from the plans and strategies of
competitors domestic and international players. As an example,
price positioning of various models, product portfolio and cost
drivers (level of outsourcing and indigenisation) of existing and
potential competitors are factored in the SPS.
Key changes taking place in the domestic and international markets
are continuously monitored (Fig. OP 18) as part of SPS to keep the
market-related action plans current. It also aids in exercising
strategic options on new products and countries to be explored.
As a part of the strategy for identified international markets, countryspecific inputs are considered for devising respective countrys
strategies.
Ability to execute
TML has over the years re-organized it's structure to enable
seamless transition of customer needs into definitive products and
customer experiences.
NPI synthesizes customer needs and interfaces across Sales and
Marketing, ERC, Supply chain and manufacturing to develop and
position product offerings in the market to retain leadership with
respect to competition. In order to assess sufficiency of our
processes to deliver as per the strategic plan, the process
capabilities of the manufacturing, supply chain and support
processes are assessed, action plans are developed and deployed
within timelines to address the identified gaps. Various efforts like
engagement of Dr N Kano, Dr Wolfarm Liedtke are undertaken
periodically to strengthen the processes and enhance capabilities.
The HR Strategy supports this by developing talent and leadership,
building a high engagement culture, a strong powerful brand, having
a customer centric organization and driving excellence through
seamless integration of verticals and business. There is a
continuous attempt to simplify and enable technology driven people,
processes embedded in high performance work systems to
reinforce One Tata Motors Culture which is truly merit driven.
The timely changes (Fig. 2.1-06) have enabled the organisation in
rapidly and smoothly executing action plans to achieve objectives
set by SPS (Fig. 7.1-134 to 139).
Once the strategies are firmed up, financial resources both in long
and short-term are allocated in line with action plan requirements.
Fig. 2.1-06
Trigger for change
Changes in Organisation Structure
Changes in Org Structure
2006
Aligned with LOBs
2007
Global Footprints
2008
Creating
differentiator
ERC, Product Mgmt teams in IB

TMETC, TMTL , South Africa,
Business Development team in IB
Synergy in S&M, CC and
Assembly Plant in Thailand for Pick-ups
2009
Synergy with the partners
Vendor Council Support Centre
2010
Aligning S&M for

future businesses
Restructuring at Sales & Marketing.

LATAM & ASEAN identified as focused
regions
2011
To bring synergy across,

faster learning & sharing & Quality and Safety as Central Functions
focus on deliverables
2012
Need for Workforce

& Rural focus
PACT (HR), IR, Quality, Sales &

Mktg, Rural Marketing
18
TATA MOTORS
Sustainability supported by key metric Reduction of Carbon

Footprint addresses the aspiration on Climate Change. This initiative
is totally aligned with the National Action Plan on Climate Change.
Enhance ability to adapt to sudden shifts in market conditions
The review process enables the organisation to identify new
challenges and make course corrections to ensure Strategic
Objectives are realised. Sudden shifts in market conditions are
addressed not only through the reviews on progress of key
deliverables but analysis of changing trends and the responses to
changes in external environment. The rolling plan at PCBU helped
the organisation to respond to market requirements for a vehicle like
SUMO GOLD.
2.2 Strategy Implementation
2.2 a Action Plan Development and Deployment
2.2 a1 Action Plan Development...
Action plans are developed during Strategic Direction setting (step
4) and Target setting phases (step 5) of the SPS by the OC, MC and
SC.
ST and LT action plansThe strategic initiatives support in
meeting various strategic objectives. (Refer Fig 2.2-05 to 08 for
examples).
Key planned changes
Some of the key planned changes are as follows:
Focus on rural areas for PC and SCV business
Introduction of Gen 3 NPI process for product development
Introduction of M0 range (positioned between PRIMA and
existing vehicles)
Development and introduction of new products for Defence
segments
Four councils for overall supplier improvements
Operate with changes
Key planned changes are introduced through the formation of CFTs
whereby action plans with corresponding targets are developed by
representatives across functions. The CFTs are resourced to
execute the plans some of which are described as examples above.
2.2 a2 Action Plan Implementation...
Each of the Objectives within the BSC is owned by a Senior leader
supported by a team. To ensure the realisation of the objectives, key
strategic initiatives are deployed and assigned to experts / process
owners. These teams are provided with time bound charters and
resources to achieve the milestones. The teams then develop key
metrics and milestones which are tracked periodically (Fig. 2.2-03).
climate change needs through greater compliance of the regulatory

requirements for emission controls, reduction in GHG emissions,
and development of hybrid, electric vehicles on new product
platforms eg. Vista EV, CNG and LPG vehicles are amongst the top
quartile with high mileage and low emissions.
This is a continuous effort across the BUs and has most recently
been exemplified by process innovations through deployment of
TQM Framework in PCBU and increased sourcing from low cost
countries, HR & field force re-organization etc .
The organization is evolving new business models such as DTC,
CKD Operations outside India, Rural Marketing, Rural Financing
Tie-up with financial and non financial institutions, higher levels of
outsourcing/contracting in new plants (Pantnagar, Sanand,
Dharwad).
The cascade process (Fig 2.2-03 & 4.1-01) ensures that the
opportunities for breakthroughs and innovations are identified and
worked on systematically.
Capitalising on Current Core Competencies and address
potential need for new Core Competencies
TML has a mix of strategic objectives to take advantage of the
current core competencies and build abilities to acquire the future
core competencies.
For example, The aspirational targets on cost, inventory and new
products are set. These would be achieved by leveraging current
core competency.
Fig. 2.1-05
Core Competencies of PCBU & CVBU
CVBU
Ability to innovate low total cost of ownership solutions.
PCBU
Ability to offer value for money through innovation, cost effective design,
development and manufacturing of passenger cars
TML aspires to become a world class quality manufacturer while

maintaining the current advantages on costs. Our strategic objective
of enhancing in-house manufacturing quality as well as getting to the
benchmark supplier PPM levels are a few first steps towards building
future core competency.
Currently CVBU and PCBU have distinctly demarcated MVVs and
core competencies based on their individual contexts. TML is in the
process of defining a unified MVV for the integrated corporation
which will pave the way for determining the need for and thereby
articulation of a unified core competency.
Balance ST and LT Challenges and Opportunities
The BSC provides the organization, a mechanism to invest in the
long-term, even as the measures and targets are outlined in time
frames of a year and longer. Additionally, the BSCs are cascaded
down to KPMs to monitor and review progress on implementation of
various strategic objectives. (Fig 2.2-05 to 08)
The KPIs metrics are either strategic or tactical in nature. Resource
allocation is balanced to address the near term needs (as in annual
business plans, BSC for the year) and longer term requirements.
For example, the tactical goal of increasing the number of 1S/2S
outlets in far-flung rural areas will give us a strategic advantage in the
longer term of countering the aggressive entry of various MNCs in
the domestic market by leveraging on wide spread network.
Emerging climate change needs
As part of the SPS, inputs are gathered from various stakeholders
(fig 2.1-04) and analyzed before finalizing the strategies for TML.
The interests of multiple stakeholders are covered through various
strategic objectives (Fig 2.2-05 to 08)
For example - Strategic Objective Enhancing Corporate
TATA MOTORS
Fig. 2.2-01
Initiative Tracking Examples
Status Update - B2: Offer financing at lower cost and

improve availability of finance
S.No
Baseline
(10 - 11)
Metrics
% share of vehicles financed by PCG

1
PCG banks targeted for tieups
2
S.No Critical Milestones FY12
1
Overall
Status
Target
(11 - 12)
14%
17%
30
16
Status Update / Remarks
YTD Actual
(Apr - May)
12%
19
Status
Induction of 4 new large PSU Banks

MoUs signed with Allahabad Bank and Bank of Baroda
Plan to target 10 banks in FY12
Partnerships with regional rural Three states selecte d for pilot AP, UP and TN
banks
MoU signed with Allahabad UP Grameen Bank
Standard Operating Procedure(SOP) for tie-up, roll out
and increasing PCG penetration circulated to area teams
governance mechanism to be institutionalized
Governance mechanism for
Pilot for portal based Yes/No : First time in CV industry.
managing PCG relationships
Initiated with 2 large PSU banks (BOI, Allahabad Bank)
Dealer incentive structure to be rolled out to other regions
Partnerships with PCG banks
Dedicated finance support

organisation within S&M team
3-member team at HO; 2-3 FTE per region
Key Risks and Mitigation Plans

Big players like SBI may go slow because of past
NPA losses
Dealer does not put in adequate efforts to build
relationship at grass root levels
19
Have meeting with senior management to resolve.

Work with more players.
Dealer alignment to long term CVBU strategy.
Appropriate incentive structure
The team gets in touch with members of the workforce, key suppliers
and partners, as appropriate, to ensure action plan implementation
as per timelines.( Example Fig. 2.2-02)
Another example is the EXCEED initiative to go beyond customer
satisfaction for passenger car business. The initiative is being
cascaded at multiple levels to ensure alignment with people and
processes.
As the initiatives and their outcomes stabilize over time, the
initiatives are redefined and / or absorbed as part of the work system.
For example, the cost reduction initiative commenced a decade ago.
This approach provided TML with consistent financial benefit's
annually and was therefore included as part of the Vendor
Management System as Integrated Cost Reduction (ICR). Similar is
the example of the Design & Development Initiative of Integrated
Cost Management (ICM) for new products. Related key metrics then
become part of BSCs.
2.2a3 Resources Allocation
TML follows the Budgeting process comprising of Revenue
and Capital Budgets for allocating the necessary financial and
other resources to the business. A bottom up approach is used in
deciding the budgets under the two heads. Revenue budget takes
care of the current obligations of running the business.
Capital budget takes care of the medium and long term
requirements. The allocation of the resources for the various
initiatives is as per the plan of achieving milestones which is
determined by the initiative owner.
The budgeting process is initiated once a year and the budgets are
re-evaluated further, during the mid-term to ensure that budgets and
initiatives are in synchronization with the current market conditions
The responsibility of the budgeting exercise finally lies with the
MANCOM and approval for the same is sought from the Board.
Assessment of risks inherent in the action plans are made by
respective initiative owners. The risk assessment outcomes form a
major factor in deciding resource allocation.
2.2a4 Workforce Plans
The HR Steering Committee (Fig 5.0 03 Integrated HR Planning
and Execution Structure) conducts annual exercise to develop HR
strategy and key HR Plans aligned to the overall TML strategy. This
Fig. 2.2-02
gets cascaded into individual action plans/KRAs through PACT.

An HR BSC (sample) detailing key workforce plan is in place
(Fig. 2.2-01) which outlines ST&LT objectives and action plans.
HR Systems & Processes (Refer Cat 5.0) address the needs of the
workforce and any potential changes to workforce capability and
capacity needs. Refer Cat 7.3, for workforce focussed outcomes,
which includes measures to track HRs progress-to-plan in an
integrated manner (Fig. 2.2-04).
2.2a5 Key Performance Measures The 40 initiatives/ action plans
(22CV+18PC) identified for TML are tracked using identified metrics
and targets with timelines. While status on these KPMs provide the
achievement levels, the effectiveness of the initiatives are
understood by tracking KPMs against the strategic objectives in the
BSCs. The performance measures with targets for each initiative will
be made available during the site visit.
KPMs in the BSCs and against the initiatives are cascaded to next
levels. Each of these KPMs and targets are available as MPA target
of a Manager/EG officer. This ensures that measurement systems
and people are aligned to the action plans. The targets related to
stakeholders other than workforce are communicated through
periodic dealer and supplier meets, vendor quality councils, as also
through channels like SRM and CRM-DMS.
2.2 a6 Action Plans Modification
The SPS ensures that the changes in the environment are tracked
and any changes required in the Action plans or the targets are
Fig. 2.2-03
Objective : Low cost product through cost
reduction without affecting quality
CVBU Level
Measures : Reduce cost at every plant
Objective Flow
Objective : Cost saving through various

initiatives like VE, Suggestions, DMCR, etc.
Plant/Function (Non Plant)
Measures : Reduce cost at every

Model/Aggregate
Means of S & M =
Objectives of AO
Agility and Changes in Action Plans Identification & Execution
Establishing need for modified Action Plans

Board Reviews Every Qtr.
Strategy Cascade Example
Objective : Cost saving through value

Engineering
Factory/Region Office
Measures : Find the opportunity and act to

reduce cost without affecting quality
Means of RO =
Objectives of AO
Objective : Cost reduction through direct

material cost saving
Centre of excellence
(Area office/Departments)
Measures : Explore alternate material

alternate source to reduce cost
Execution of modified Action Plans

No
Management
Committee
Escalation
* Environment
Scan
Step 1
Fig 2.1-01
Meets every
15 days
Breakthrough
Actions
required?
STOP
Yes
Operations
Committee
Reviews at
Each Level
Yes
Update
Strategy
Document
Modify
Strategy?
Meets every
30 days
Steering
Committee
Meets every
month
AO
Targets
Individual
KRAs
No
SQDCME Measurement
Impart training and work in teams
to reduce cost through
value engineering
Major Performance Area
SQDCME/
VMCDRE
Employee
Targets
Cost saving target : Rs 15

Lakhs/Year
Yes
Update
Capital
Budgets
Update
Capex ?
Operational issues
Plant / Non plant / Ros /

Area offices CFTs
quickly communicated to the respective agencies and acted upon

across the customer response chain from the front line to the back
end on the shop floor through the Steering Committee mechanism.
With the recent commodity price hikes, action plans were modified
such as launch of Project CREST, avoidance of non-essential
expenditure, optimum utilization of human resource, etc. The robust
review mechanism (Fig 1.1-09 and 2.2-02) and SPS helped TML in
faster execution. The quick response helped the organisation to deal
with the challenging situation (Fig. 2.2-02). Further this year 201112, due to the increase in demand of SCV products, Pantnagar
plant responded positively and could surpass production of 1000
vehicles per day.
No
Yes
Modify Action
Plans?
Update
Action Plans
No
Yes
Modify KPIs /
KRAs ?
Update
KPIs / KRAs
No
Finalise
proposal and
implement
20
TATA MOTORS
forecasts, Governing body projections (e.g. SEBI), extrapolated

from the historic performance, product or service game changers, if
any.
Product life cycle or customer life cycle, sustainability of the current
performance levels (e.g., an unsustainable market share may
decrease), capacity or capability of people and capacity of facilities,
etc. The SC uses these projections (Fig. 2.2-09) as an input during
the SPS. SC addresses If there are current or projected gaps in
performance against competitors or comparisons and drilled down
for actions (Fig 2.2-02). Performance projections for some KPMs are
illustrated in Fig 2.2-04.
2.2b Performance Projections

TML analyses data and makes projections in the context of 5 year
horizon for all key performance measures and compares (Bench
Marking process, Fig 4.1-06) with the best available information
about competitors.
If competitor information is unavailable, then use of other
appropriate comparisons and benchmarks in addition to TMLs best
post performance, projections are collated and determined from
wide variety of sources like third party market research, FIBRES
project, company data etc., to ensure reliability and accuracy,
calculated performance levels based on current activities, Internet
projections data of key factors, including - Industry performance,
Industry studies, consultant forecasts, Financial institutions
Fig. 2.2-04
Human Resource Plan (HR Plans in detail can be shown at The Time of Site Visit)
Strategic Objective
Linkage
to TML
BSC
2011-12
Key Performance
Measure
2012-13
2013-14
2014-15
Target
Actual
Target
Target
Target
5.08
6.1
6.2
6.2
Maximise return on human capital

Enhance Productivity
OL2
Valuable added per unit

wage bill
Optimise HR Costs
OF1
Wage bill - Deviation of -2%

from approved budget
2774
2701
3238
3771
4565
Manpower planning and Right sizing

to be a lean and flexible organisation
OF1
Headcount
30691
29217
31928
38581
41422
Employee Engagement - Enhance

Employee Satisfaction and Team work
OL3
Q12 Score
Capability Building (Build strategic

and leadership competencies)
OL4
Training Effectiveness
-CIRO I (all internal
programs)
Non-Management - 4.55 Non-Management - 4.20 Non-Management - 4.55 Non-Management - 4.60 Non-Management - 4.65
Management - 3.80
Management - 3.85
Management - 3.80
Management - 3.90
Management - 3.63
3.64
3.46
3.50
3.55
Fig. 2.2-05
TML BSC
Financial
Perspective
S. No.
OF 1
Customer perspective
Internal Business Processes Perspective
People, Leaning and Growth
Perspective
Strategic Objectives
Ensure sustainable profitable growth
OC 1
Expand global market footprint with focus on emerging

markets
Enhance India market share
OC 2
Enhance customer satisfaction by offering immediate,

accessible and affordable services through customer life-cycle
OF 2
OC 3
OC 4
Widen sales, distribution and services network in India while

ensuring quality and focusing on rural reach
Sales and service network expansion in key existing
international markets.
OP 1
Robust NPI processes to ensure flawless and timely new

product launch within cost targets
OP 2
Leverage strategic supplier relationships to sustain cost

leadership while improving quality
OP 3
OP 4
OP 5
3.55
Improve warranty performance

Manage environment through enhanced climate change
programme and excellence in corporate sustainability
Ensure safe working conditions across the company
Key Metrics
Domestic vehicle volume
Total gross revenue
PAT as percentage of net turnover
ROCE
Cash Flow
IB revenue as a percentage of total revenue
Domestic market share (PC/CV)
Percentage of sales from new products (PC/CV)
Service / Customer Satisfaction Index (TR iM/JDP)
Dealer /Distributor Satisfaction index
Rural touchpoints as percentage of national touchpoints (CV/PC)
Number of IB dealers and workshops
New products / variants launched
Timeliness of NPI launch
Average Due Date Performance Vs Budget
First Time Right Launch
No. of different type of problems / issues reported within 3 months of product launch
Deviation from stretched NPI cost targets at all NPI gates
Increase contribution from new products in last 5 years
Rationalise list of vendors and vendor managements organisation
In coming PPM levels (% Suppliers)
Vendor satisfaction index
Reduction in Warranty Costs
tCo2 per eq vehicle (CV/PC)
Severity rate (CV/PC)
Loss Time Injury Frequency Rate
Reporting of all Incidents major & minor and Investigation for Root Cause Analysis
Compliance to Regulatory Safety, Health & Environments requirements
Talent pool size
Talent Review Board for GM and above
Attrition rate: High performers (A and B+)
OL 1
Enhance talent attraction
OL 2
Increased employee engagement and creation of high

performance culture by enhancing performance management Employee engagement index
system
OL 3
Focus on developing leaders within the organisation
OL 4
OL 5
Enhance Innovations
Excel in journey to excel lance (TBEM)
TATA MOTORS
Succession plan readiness - number of key roles having identified successors (EG
2A and above)
IP Rs received during the year - Process
TBEM Score
21
Fig. 2.2-06A
Strategy Map for PCBU Commercial 2012-13
Customer
Finance
To be a formidable No.2 by 2015 in domestic market

OF1
Improve Nano Sales to match 10% of

2-wheeler volumes
OF2
OF4
Focus and Grow additional revenue streams

(TMA, TMI, Accessories, Ext.Warranty & VAS)
OF5
OC1
Improve market share with specific focus on UV
OC4
Make PCBU business the most sought after business

proposition amongst the channel partners
OF6
OC3
Ensure high referrals through consumers for

PCBU products & services
Strengthen and leverage Brand Image

amongst PC buyers
Provide convenient access to customers through

OC6touch points at sub-district levels, including unconventional
OP4
Improve Sales and Service processes at all Customer
touch points by robust deployment
OP3
OP7
OP5 Establish Benchmarking and Knowledge Management
OP6
OL1
OL2
Manage Risks at PC Commercial
OL3
Enhancing productivity at PC Commercial
Attract, Retain and Motivate Talent
OL4
Improve profitability
Offer intelligent and innovative products and services by utilizing

market and consumer insights and proactively participating in the NPI Process
Ensure efficient outbound supply chain
Processes
Learning & Growth
Improve Exchange Penetration to 25%
OC5
Improve sales in Emerging

Markets to 20 % of total sales
OF3
Ensure warm and efficient Customer Experience at

all touch points for sales & service
OC2
OP1
OP2
Ensure leadership position in sub 5

lac product segments
OL6
OL5
Enhance Employee Engagement and team work
Build a Customer Centric culture
Enhance CRM and Analytics usage to strengthen

Business decisions and growth
Safe working conditions at PC Commercial

and Channel partners
Build Strategic & Leadership competencies
Create a culture of high performance through PMS
The team here refers to the extended team - TML + channel partners
Fig. 2.2-06B
Strategy Map For Passenger Car Operations 2012-15
1. EBIDTA > 7.5% by FY15; 2. Be amongst top 2 by market share in India by FY15;
3. Achieve top quartile performance in customer experience by Fy15; 4. Achieve significant presence in select International markets
5. Build up on Value For Money brand in to a more aspirational & desirable brand
Customer
Finance
OPERATIONAL EXCELLENCE
OF1
OC1
EXECUTION EXCELLENCE
Achieve the stretched revenue and cost targets

considered in budgetary projections
Meet revenue growth & operating margin improvements in

new products as per strategy document
OF2
Achieve top quartile quality performance
OF2
GROWTH
Build up on Value For Money brand proposition to a

more aspirational & desirable brand
OC3
Reduce customer response time

OC4
Processes
OP1
OP2
Drive cost reduction in current and new products through ICR and ICM initiatives
Institutionalize Quality culture by achieving

World Class Quality (Level 3)
OP4
OP6
Institutionalize the product planning process and develop

product plans for domestic and international markets
Execute the platform strategy and aggregate commonality
Institutionalize 16 step Supplier Quality Improvement

Process through partnering approach
OP7
Learning & Growth
OP3
OL1
OL2
Strengthen the NPI process and improve execution to achieve

flawless launch quality, meeting cost & timeline target
Develop & institutionalize Innovation framework

in an environment which promotes experimentation
Be a good Corporate Citizen by strengthening

key communities and deploy Climate Change Policy
OP5
Leverage existing partnerships with JLR, FIAT

& develop new partnerships
to bridge gaps in products, processes & knowledge
Achieve Organisational Sustainability and Leadership

development at all levels to empower and energize
OL3
the organisation
OL4
Develop & execute an operations strategy

to achieve flexibility and standardization
to meet growth & capex targets
Leverage existing IT infrastructure to support above

objectives through information, knowledge management
& business analytics
OL5
Build a great place to work through
enhancement of Employee Engagement
Promote Safety, Quality

and problem solving culture
OL6
22
TATA MOTORS
Fig. 2.2-07
CVBU BSC
S. No. Strategic Objectives
Financial
OF1
OF2
OF3
OF4
OC1
Customer
OC2
OC3
OC4
Key Metrics
Domestic vehicle volume

Total gross revenue
Ensure sustainable profitable growth and dominant
EBIDTA as percentage of net turnover
leadership position in domestic market
ROCE (CVBU, pre-tax)
Cash Flow
Be a low cost manufacturer of CVs leveraging
Total cost reduction
economies of scale and low cost of products
Revenue from defence business, AMC, Recon, Insurance, Tata
Enhance revenue from non-cyclical businesses
OK, Telematics, spare parts and aggregates
Expand global market footprint with focus on
IB volumes
emerging markets
International Business revenue (gross)
Enhance India market share
Domestic market share
Enhance customer loyalty and satisfaction by
Number of customer loyalty service programs launched
offering services through customer life-cycle
Dealer/Distributor Satisfaction index
Sales satisfaction index (TRiM)
Number of Sales Touchpoints
Widest sales, distribution & services network in
Number of Service Touchpoints
india, ensuring quality and stakeholder satisfaction
Service Satisfaction Index CSI (TRiM)
Sales and service network expansion in key
Number of IB dealers and workshops
international markets
New products/variants launched
Timeliness of NPI launch
Average Due Date Performance vs Budget
People, Learning and Growth
Intemal Business Processes
OP1
Robust NPI processes to ensure flawless and timely

new product launch
First Time Right Launch

Number of different type of problems/issues reported within 3
months of product launch
% Volume through new products (launched in last 3 years)
% of spend with suppliers of strategic importance
OP2
Leverage strategic supplier relationships to sustain

cost leadership while improving quality
Vendor capacity expansion plan implementation achievement

Incoming PPM levels (% Suppliers)
Vendor satisfaction index
IPTV for MHCV / LCV / SCV / Bus
OP3
Leverage flexible manufacturing systems ensuring

improved quality level & employee productivity
OP4
Manage environment through enhanced climate

change programme and excellence in corporate
sustainability
OP5
Ensure safe working conditions across CVBU
OL1
Enhance talent attraction
% Adherence to 9 Box Frame work

Talent pool size
Employee engagement index
OL2
Increase employee engagement and creation of

high performance culture by enhancing
performance management system
OL3
Focus on developing leaders within the organisation
OL4
OL5
Enhance Innovations
Excel in journey to excellence (TBEM)
TATA MOTORS
Productivity (J/P/L/UT) Improvement

tCo2 per eq vehicle
Severity rate (JSR/P/L/U)
Loss Time Injury Frequency Rate
Total Recordable cases Frequency Rate
Attrition rate: High performers (A and B+)
Adherence to Performance Differentiation Curve
23
Succession plan readiness-number of key roles having

identified successors (EG 2A and above)
IPRs received during the year - Process
TBEM Score
Fig. 2.2-08
Internal Process Perspective
Customer Perspective
Financial
Perspective
S. No.
Key Performance Measures
OF1
Achieve the stretched revenue and cost targets considered in budgetary projections
OF2
Meet revenue growth & Operating margin improvements in new

products as per strategy document
Gross Revenue
EBIDTA Margin
Percentage revenue growth from new products
Operating margin growth
OC1
Achieve top quartile quality performance
OC2
Reduce customer response time
OC3
Build up on "Value For Money" brand proposition to a more aspirational & desirable brand
JD Power IQS (PCBU)

JD Power VDS (PCBU)
JD Power APEAL (PCBU)
Warranty IPTV 6 monthly
Customer rage issues pending for implementation of
detection strategy beyond 90 days
Brand Track Survey Results
OC4
Institutionalize the product planning process and develop product plans

for domestic and international markets
Progress against action plan for institutionalising Product

Planning process
OP1
Drive cost reduction in current and new products through ICR and ICM
initiatives.
ICR Percentage DMC reduction achieved against target
OP2
Institutionalize Quality culture by achieving World Class Quality (Level 3)
Nos of absolutes complied with for achieving Level 2
Strengthen the NPI process and improve execution to achieve flawless

launch quality meeting cost & timeline target
IT enablement of Gen 3 NPI process
OP3
OP4
Institutionalise "16 step Supplier Quality Improvement Process" through partnering

approach
New Projects: Percentage of components through Step 9

(3 stage PPAP) by SOP
OP5
Leverage existing partnerships with JLR, FIAT & develop new

partnerships to bridge gaps in products processes & knowledge
Progress against Plan
OP6
Execute the platform strategy and aggregate commonality
OP7
Execute operations strategy which supports growth objective while achieving

operating margins and Capex targets
ICM: DMC Actual against target (Mean of all projects)
Adherence to NPI Milestone for identified major projects
70% aggregate commonisation target for all new products within platform
30% aggregate commonisation target for all new products within platform
Progress against Plan
OL2
Develop & institutionalise "Innovation framework" in an environment which

promotes experimentation
Be a good Corporate Citizen by strengthening key communities and deploy
Climate Change Policy
OL3
Active Organisational Sustainability and Leadership development at all levels to empower

and energise the organisation
Sustainability Index
OL4
Promote Safety, Quality and problem solving culture
Severity rate, Frequency Rate (SR,FR)
OL5
Leverage existing IT infrastructure to support above objective through

information, knowledge management & business analytics improvements
Develop & Deploy knowledge management module
OL6
Build a great place to work through Enhancement of Employee

Engagement
Gallup Employee Engagement Score
OL1
Learning & Growth

Perspective
PCBU Operations BSC (Illustrative)

Streategic Objectives
Progress against plan for developing innovation framework

CSR Index
Achievement of Training Plan
Fig. 2.2-09
Performance Projection Sample KPMs (CVBU)

2010-11
Measures
(examples)
CVBU
2011-12
BM
Comp
BM
CVBU
Comp
160
75
210
15.9
62-63
16-17
62-64
975
592
1100
620
1250
3.63
3.83
Top 25
quartile
3.85
Top 25
quartile
EBIDTA (%)
153
81
Market Share %
61.4
Outlets (Nos.)
Q.12 Index
CVBU
2012-13
2013-14
BM
CVBU
Comp
Finance Perspective
78
215
Customer Perspective
17-18
62-64
Internal Processes
650
1300
Learning and Growth
Top 25
3.90
quartile
24
2014-15
BM
CVBU
Comp
BM
Actual
Perf.
Comp
80
220
82
17-18
62-64
18-20
700
1450
750
3.95
Top 25
quartile
4.0
TATA MOTORS
3 CUSTOMER FOCUS
CVBU Customer Support bags International Achievers Award for 'Best Practices in Business 2011'
CVBU Spare Parts team has received the 'Automotive Supply Chain Excellence Award' in the 5th Express,
Logistics & Supply Chain Conclave
Ranked as the 2nd most trusted in the category of four-wheelers in The Economic Times Brand Equity 'Most
Trusted Brands' survey for 2011
Customer Care (CVBU) has won the 'International Customer Service Excellence Award - Large business', at
the 10th Annual Australian Service Excellence Award (ASEA) 2011, held at Sydney
Most Preferred Brand, in the Commercial Vehicles category, at the second edition of the North-east Consumer
Awards 2011
Customer Support (CVBU) was awarded the People's Choice Stevie Awards 2012 for 'Favorite Customer
Service'
Customer Loyalty Continues Silver jubliee year celebration of the Tata 407
Launch of Tata Delight an exclusive Customer loyalty programme that offers great benefits, special privileges
and fabulous rewards
Brand promotional event of Tata Manza: Tata Motors partnered with ace fashion designer, Rajesh Pratap
Singh
Building Brand & Reaching to Customers - Successful participation in the Auto Expo 2012.
Mr. S. P. Joshi (VP - Customer Care, CVBU) was conferred the 'Customer Service Leader of the Year' at the 6th
Annual Stevie Awards 2012
3.
CUSTOMER FOCUS
Dealer council acts the sounding board for strategic and tactical
plans and as feedback mechanism about the competition and
market. The action are taken with the help of dealer councils to
improve products and services (Fig.3.1-02).
3.0 Customer Focus

TML has retained market leadership by anticipating customer needs
/ requirements in various segments and introducing a new series of
products in addition to existing products . This enables TML to have
large portfolio of products to satisfy customers . (Fig. 3.0-01).
Fig. 3.0-01
Products
Existing
New
Fig. 3.1-02
New Product Introduced

CVBU
Ex CV range,
LCV Pickup,
Xenon Euro 5,
Magic Iris, Ace Zip
PCBU
Sumo Gold,
Nano 2012, Indica eV2,
Indigo eCS
Aria
1. Data Source Social media

sites, Auto sites,
SIAM, ARAI,
VRDL, Channel
Partners, Vendors,
TNS JD Power
Surveys
5. Feedback from
customer on
improvements
Special focus to improve dealer profitability through

specific actions like increasing dealer margins in line with
key competitors, improving dealer retention through dealer
friendly retail schemes, decreasing dealer inventory holding
through changing focus from off-take to retail based incentive
schemes.
Focus put for increasing revenue through non-vehicular
businesses like - TMI, TMA, service, accessories, AMC,
extended warranty, value added services etc.
Special actions have also been initiated to eliminate dealer
discounts and territory infringements.
Partnering with D&B, TML has started a process of
monitoring and improving the dealer profitability
Quality of products
needs a lot of
improvement to compete
with the highly competitive
market place.
Dealers needed support
from TML on sourcing
and training quality
manpower for their
operations
On the area of quality improvement - the dealers have been

formally involved into the new product introduction process
in various stages through feedback, factory test drives and
interactions with the product development teams etc.
To address the issue of quality training of dealer staff, TML
has started the Sales Training Academy and have
deployed 45 trained Dronas for the training and coaching of
dealer sales and service teams.
TML had tied up with recruitment process outsourcing
agencies for a structured and ready source of manpower for
the dealers
Customer's feedback is obtained through various means on quality

of products, customer support and various transactions to receive
immediate and actionable feedback (Ref. 3.1-08). This enables to
tailor products and support services, new business positioning.
3.1a2 Listening to Former, Potential Customers
TML also conducts surveys on competitors' customers in all Various
market surveys are conducted to determine customer expectations,
market trends, customer buying behaviour and product performance
among different market segments to determine reasons for nonpurchase of vehicles (Fig. 3.1-03). Such feedback provides a trigger
to improve products / communication with customers. Potential
customers (like owners of three-wheelers) are often interviewed to: i)
seek their inputs on product features, and ii) find their acceptance of
new vehicles like Iris, Zip which are positioned essentially to attract
three-wheeler owners.
Listening & Learning Process

2. Listen from Current,
Former, Potential and
customers of
competition.
Action taken
Poor profitability of
dealerships resulting in
low engagement and low
interest in TML
dealership business
3.1 Voice of the Customer

3.1a Customer Listening
3.1a1 Listening to Current Customers
L&L approaches for different customer groups are (Fig. 3.1-01 and
06) essentially consist of a combination of secondary and primary
sources eg. Sales / Market data, Satisfaction Surveys, Customer
loyalty & retention data, Customer complaints, Post-launch
surveys, Customer clinics, Win-loss analysis, QFD, Mystery
Shopper etc. These approaches provide actionable data and
information on customers' current and emerging needs, customer
satisfaction / dissatisfaction levels, market / segment trends and
shifts. Actionable information is also collected from data sources.
This information helps to draw up action plans aimed at developing
new products, improving existing products / processes / systems,
and identifying new business opportunities.
Fig. 3.1-01
Voice of Dealers and Actions (Few Examples)
Voice of Dealer
3. Collect Data & analyze &

develop action plans
(Participants-S&M, Service,
NPI,ERC, Plant)
4. Implement Action Plans to
improve product &
processes
Social media is an emerging medium with large future potential. TML

has started to gather feedback from social media sites, automobile
related sites and feedback submission websites like Facebook,
Twitter, Teambhp, mouthshut.com etc. However its inputs are more
relevant for PCBU than CVBU, due to different customer profiles. A
formal process of treating Facebook as a source of complaints has
initiated in PCBU. TML has created product specific websites to
provide relevant information about products e.g.:
magiciris.tatamotors.com, ace.tatamotors.com, tatanano.com,
tatasumo.com, tataaria.com, tataventure.com.
In important international markets for CVBU such as Turkey, South
Africa, and Nepal and PCBU for Ghana, Nigeria, Turkey, Sri Lanka
and Nepal, customers are contacted over the phone to ascertain
their satisfaction with services provided to them. Instant Feedback &
Instant Redressal Forms (IFIR) are used at workshops to obtain
specific feedback on services offered. Any corrective action is
instant & immediately actioned by the CRM / CRO at the dealership.
Voice of Dealer
As dealers are the 1st customers and form the main channel of doing
business with the end-customers and are the key stake holder in
supporting the promotion and usage of the company's products and
services, the engagement of the channel partners form an important
part in the strategy to improve the support mechanisms of customer
for the use of TML products and services.
A cascaded structure of Regional Dealer Councils and National
Dealer Council in PCBU helps to understand the "Voice of Dealers"
Fig. 3.1-03
Listening & Learning Methods for Former, Potential and

Competitor Customers.
Customers Listen to
Interact with
VOC,House of Quality Customer clinic

Potential
Customers Product specific websites Product Demos
Observe
Auto Expo, Shows
Naka Visits
Customer Visits / meets
Product comparisons with

competition products
Former VOC,House of Quality

Customers CSI
Product Demos
Auto Expo, Shows
Customer Visits
Naka Visits
VOC,House of Quality
Product Demos
Auto Expo, Shows
Market Surveys
Benchmarking
Product comparisons with
Market Surveys
Competitor Market Surveys

Customers
CSI
CSI
competition products
The CRM-DMS data are analyzed for identifying new

requirements/needs and developing product / service offerings.
Introduction of ACE, Magic, ACE Zip, Magic Iris, Driver training
schools, 25KMPL IndicaV2, Nano are some examples of product
development based on the listening to customers.
The L&L continues to understand the customer's position on buying
25
TATA MOTORS
each customer group & Market segment (Ref. Fig. 3.1-05). To

illustrate, in satisfaction surveys for vehicles owned by individuals,
only one person is interviewed. However in satisfaction surveys on
institutions like Dealers / STUs / Defence, i) parameters for customer
satisfaction determination are widely different, and ii) a group of
individuals are surveyed - including CEO, Sales Manager, Workshop
Manager etc.
platform, PCBU classifies prospects into different categories like

green form, pink form, yellow form and white form whereas CVBU
classifies them as C0,C1,C2,C3 ( Fig. 3.2-14) . It uses call centres
for customer follow up. The regular feedback is taken from lost
prospects to identify reasons for not choosing TML product in spite of
the initial interest shown.
3.1b Determination of Customer Satisfaction and Engagement
3.b 1 Satisfaction & Engagement
Tata Motors' journey on Customer Satisfaction (Fig. 3.1-04) began
14 years back, and during this period the process has developed and
matured. Evaluation of customer satisfaction with Tata Motors is
conducted through a syndicated survey - conducted by world
renowned agencies: J D Power for PCBU and TNS for CVBU. Both
surveys begin with an exploratory phase to determine attributes
which influence customer satisfaction. Output of both surveys
includes segment-wise data on : i) Customer Engagement Rating of
Tata Motors vis--vis Competitors (Customer Engagement ratings
are computed as a combination of Overall Satisfaction, Loyalty and
Advocacy), ii) Areas of satisfaction and dissatisfaction on product,
sales, service, cost of operation, brand image etc., iii) Action-plan for
improvement.
Fig. 3.1-04
Fig. 3.1-05
Methods of measuring
Frequency Measures
Customer Satisfaction
External third party
Annually Ratings, Scores
industry survey for SSI &
rankings
CSI
BUs own Dealer wise
Quarterly/ Ratings, Scores
survey for Sales/Service Annually
rankings
Analysis of complaints
Monthly
CPTV, CCCT,
received through several
OCTV
modes & resolution
PSF sales through
Daily
Scores stage wise
internal tele calling
& CustomerAdvisor wise
PSF Service through
Daily
Scores Factor
internal telecalling
wise & Service
Advisor wise
Daily
Exchange
Exchange satisfaction
Satisfaction
through internal
Scores
telecalling
TMI - Policy sale and
Daily
Policy Sales &
Claim PSF through
Accident Claim
internal telecalling
PSF
Dealer Engagement
Annually Scores
Survey
Process for Customer and Dealer Satisfaction Survey
1. Input from marketing &

Customer Care for
discovery phase
6. Decide Action plan for

key improvement areas
By concern agencies
1. Decide survey
scope (Subsegment,
geography)
5. Data Analysis to
understand Satisfaction
Dissatisfaction
(Competitive)
3. Modify questioner
as per Segment
requirement
4. Conduct surveys Mailers, calls,

interviews etc.
Results
7.2-01,04
7.2-13
7.2-12
7.2-23 to 25
7.2-12
Satisfaction Surveys on Spare Parts are conducted among a variety

of stake-holders including: i) Retail customers, ii) Dealers,, iii) TASS,
iv) Distributors, v) Mechanics, and vi) Reborers (Fig. 7.2-10 to 12).
CEI indicators form an integral part of BSCs at various levels and its
reviews.
Learning/ Improvements
CVBU-IB uses expert agencies and consultancies for conducting
CSI studies in High volume countries like SriLanka, Nepal and
Highly competitive markets like UAE, South Africa. PCBU - IB does
CSI studies in focus markets like Ghana, Nigeria, Nepal, Turkey and
South Africa. These survey results are used to incentivise the
dealerships and for modifying existing systems to support increase
in sale. (e.g Customer Care Process Manual Implementation in
South Africa).
3.1b2 Satisfaction Relative to Competition
Syndicated satisfaction surveys are conducted by JD Power and
TNS .This provides relative satisfaction of customers in sales and
service with TML vis--vis major competitors (Fig. 3.1.05). This is
being done at an overall as well as at individual parameter levels.
The information is derived from various satisfaction surveys and
various L&L mechanisms. This further helps in understanding
important factors that drive markets and long term competitiveness.
3.1b3 Dissatisfaction
Customer dissatisfaction is measured separately and analyzed
segment wise and further supported by action plans. (Ref. Fig. 3.108 and 7.2-04).
The dissatisfied customers are addressed through root cause
analysis of complaints received through Complaint management
process, (Fig. 3.2.-13,15) Customer Care Team -CCT approach and
"Daily Service Synopsis". Regular reviews of customer complaints
are conducted with the field team to provide necessary support.
Tata Motors treats intermediaries like Dealers / TASS / TASC as its

first level customers and believes that only satisfied dealers can
create satisfied customers. Hence an annual Dealer Satisfaction
Survey is a part of its package of Satisfaction Surveys.
Dealer Satisfaction provides data on : i) relative importance of
various attributes considered, ii) dealer satisfaction rating on various
attributes and his position on dissatisfaction-satisfaction-delight
zones; iii) Likely Impact of Marginal Improvement, and iv) Actionplan. PSF-CSI which is obtained through Post Service Feedback
calling by Call Centre forms a major thrust area for ascertaining area
of improvement which is used for identifying Non-performing dealers
(NPD) & parameters where focused efforts are taken using Daily
management & PDCA approach to bridge the gaps. Mystery
shopper exercises also provide customers' perspective on
satisfaction / dissatisfaction with dealers vis--vis competitors. This
information is used to take corrective action like conducting training
programme.
Since Global presence is an important objective of Tata Motors,
Customer Satisfaction surveys are also conducted by IB.
Satisfaction surveys in IB markets are conducted by international
agencies like TNS and A.C. Nielsen. While selecting IB markets for
conducting satisfaction surveys following factors are considered: i)
importance of the market, ii) sales volume in the market to ensure
that adequate sample size is available to ensure statistical
significance of findings. Satisfaction surveys in IB markets provide
segment-wise data on: i) Customer engagement vis--vis major
competitors, and ii) action plan for improvement.
Determination Methods Differ among Customer Segments
Process of customer satisfaction is tailored to suit individual needs of
TATA MOTORS
Methods of Measuring Customer Satisfaction
26
Fig. 3.1-06
Listening & Learning Methods for Different Customer Segments
TML
1
2
3
4
Customer Meets
Fleet operator/BPO
operator meet
Customer calls
PCBU
1/yr
Regular
11
12
Brand Track
13
TNS & JDP Survey
14
Post Ad test
15
CRMDMS
16
17
Sales, MS &
Revenue trends
Win/ Loss analysis
18
QFD / VOC
19
Loyalty Programs
6
7
8
9
10
Defence
IB
NVB
Dom-Inst.i
Call centre
Customer
Complaints
Car / Customer
Clinic
Channel feedback/
MIS&DQCTC
Audits
Financier Feedback
SIAM,ARAI
meetings
Usage & Attitude
study
White form
Freq.
CVBU
2/yr
Institutional
Dom-Private
Taxi/comm.
Customer Segment
Personal
Potential
Competitors
Current
L&L Methods
Former
Customer type
Sr
No
Regular
Regular
Schedule
2/yr
1/yr
Regular
0.5/yr
Regular
2/yr
1/yr
Post
Campaign
Regular
12/yr
Regular
Need
based

Regular
Fig. 3.1-07
Analysis of data
Use of Data
customer expectations,
Preferences
Operating economics
Service requirements,
complaints analysis
Complaints, other
requirements
Product ,service quality
Product needs &
requirements
Service needs,
requirements
Customer credit rating,
funds requirements
Industry Trends,
Regulatory direction
Buying Behaviour
Demographics & lifestyle
habits
Media Habits Brand
perception
Vehicle performance,
design product quality
Comprehension, Recall,
Likeability, Effectiveness
Demographics & Win
loss analysis
Sales pipeline, sales
trend, competition
Product service
improvements
Product service
opportunities
Marketing Mix & service
planning
Product mix & service planning

Improvement of quality in cells &
service experience
Quality improvement
Product Design(NPI)
Input to SPP, Tactical Sales
decision
Input to SPP, Tactical sales
decision
Input to SPP, Technology
Roadmap
product & service planning,
Product positioning,
Customer Database, Marketing
mix
Brand positioning &
communication Strategy
Product design & Brand position
Quality& Process improvement
Communication & media
Strategy
Sales ,Network planning, Service
& Product performance
Tactical sales Decisions
Marketing And Sales Strategy
Input of SPP & NPI
Marketing Mix & service planning
Customer Life Cycle Stages and Relationship Status.
Customer Life
cycle stages
and Status.
1.Do not know
(Potential
customer)
A. Customer
Relationship status
level with TML
Has never used
product
2.Heard about
(Potential,
Current & Past
customers)
Visits website,
showrooms, Call
Centre/Sales
people,
3.Trying
offerings
Buys products and

uses services
4.Being
satisfied
Uses Service
centres, Sends
appreciation letters,
Repeats purchases
5.Being loyal
Repeat purchases
Buys similar
products
Customer Surveys, Customer clinics,

Customer Acquisition
6.Becoming an
advocate
7. Sale vehicle
Positive referral for

products & services
Sale old & buy new
TML vehicle
Customer Surveys, Customer clinics,

Customer Acquisition
Customer meetings, Phone calls,
Customer acquisition
B. Approaches and Tools to

understand customer relationship
status - supported by QMS
Customer Contact programmes,
Product promos, NPI/QFDs ,
Advertisements, CRM-DMS , Service
Policy design & development),
Customer Contact programmes,
Product promos, NPI/QFDs , Advt.
CRM-DMS , Service Policy design &
develop. Communication, Network
Mgt., Cust. Acquisition
Channel Partner Mgt. Phone calls,
Service visits to workshops, Spare
Parts Mgt, AMC, Customer
Acquisition
Customer. Eng. Surveys, After sales
Service, Customer meets, Key
Account Management, Customer
Complaint Management
27
C. Approaches & tools to

improve customer relationship
status -supported by QMS
Marketing efforts Customer
Surveys, advertisements and
commercials
Product Selection support,
Customer Sales survey, QFDs,
win-loss analysis, etc
Product & Service Selection

support, Customer Centricity,
After Sales survey, QFDs,
Finance & insurance Services
Customer Satisfaction &
Dissatisfaction Surveys, After
Sales Surveys, CAC, Customer
Clinics, Recon, Exchange offers,
TMA ,Pre owned vehicles
Feedback from Customer
Surveys, Customer meets,
Channel partner meets,
Customer Clinics, KAM
Customer Surveys, Key Account
Management
Recon, Exchange offers, Tata
Motor Assured second hand
vehicles
D. Approaches & tools to track progress

on improving their relationship status
Follow-up with the customers through
Mailers ,Out-calls, Number of visits to
web site ,mails received from customers,
Data updates on CRM-DMS
Customer Acquisition, Adherence to
Customer Contact programme
Data updates and analytics on CRMDMS, Customer Acquisition, Sales

reviews
Customer Engagement Index, After
Sales satisfaction (PSF), Customer
Complaints resolution.
Customer Engagement Index, After

Sales satisfaction (PSF), Customer
Complaints resolution, Service revenue,
Repeat Purchase , loyalty index
Number of vehicles sold through positive
referrals, Advocacy index
Revenue from Recon, Exchange offers,
Tata Motor Assured second hand
vehicles
TATA MOTORS
Fig. 3.1-08
Post Transaction
follow-up process
steps
Service Policy
Design & Deployment
for new/ existing
offerings
2. Network
Management
Post Transaction Follow-up
Who is Involved
Measurement
Timing of the
Step
Actions Taken Based On The Feedback
LOB Heads
New offerings and adherence

to NPI service activities
Ongoing

and Head, Network
Management
RM (CCs)
No. of LOIs and COBs
Ongoing
CSI on service parameters,

Post Service Feedback
4. After
Customer
Relationship Building
5. AMC Business
Management
RM (CCs)
CSI on service parameters,

Service Market share
Service
requests from
customer
Customer
surveys
Inputs are analyzed from various sources and

the changes requirements in offerings
identified. New offerings designed to meet the
requirements
After customer requirements, market is
surveyed. Market Survey for prospecting fresh
applicants is done
Vehicle reports for Warranty/ paid repairs,
Free/Paid services, AMC repairs, Acci dent &
Onsite repairs are analyzed and acted on
Feedback from customer surveys are analysed
and market coverage plan is made
Head, AMC
Channel Partners
% PBT for AMC
Acquisition of
customer
Spare Parts
Management
7. Customer
Complaints
Management
RECON Business
Management
Head, Spare Parts

RM (CCs), RPMs, PMs
Head, Customer
Complaint Mgmt
CSI on spares availability
In line with
Business plan
Complaint made
Head, Recon and

Channel Partners
No. of aggregates are made

available
Business
potential studies
9. Warranty
Management
Head, Customer Support,

Channel Partners
DSI - Satisfaction with

warranty & FS bill Settlement
Claims raised
3. Service Process
Management
% of customer complaints
resolved
NPI process helps in addressing the requirements and exceeding

the expectations of customer groups and market segments based
on Market research, QFD, VoC, Customer clinics, listening &
learning.
Attract New Customers
The processes like "Identifying customer requirements" (Fig. 3.201), "Innovation in Product Offering" (Fig. 3.2-02), "New Customers
and Relationships" (Fig. 3.2-03), QFD , L&L and VOC are used to
attract current, new and potential customers and markets. This is
further supported by customer support approaches (Fig. 3.2-04),
Customer Acquisition system and gates of NPI.
CVBU has engaged more than 1300 rural youth for initiative Project
Neev. Project Neev coves 350 outlets in 3 States for promoting
SCV's. Over 5000 SCV's have been sold. In PCBU emerging
markets have been activated to tap rural markets, small cities and
towns. Over last 36 months, TML added 150+ products and variants
in the market place. Many new initiatives are deployed for improving
customer support (Fig. 3.2-06).
Product failure issues are reviewed regularly in Customer Service,

QA and ERC meetings and specific action items are implemented
as appropriate.
Learning and Improvements
Initiatives like Project EXCEED, Tata alert, e-learning, Dealer
Training, Service training are used further to reduce dissatisfaction
levels. These dissatisfies are used in After Market support process to
improve product/service offerings. The Post Sales and Post Service
PSF results and the dissatisfied cases thereof are reported
throughout the organization as well as to the dealers using the CRM
Analytics platform for taking necessary and timely corrective
actions. The actions are also integrated with the incentives of the
Dealer Employees (Fig. 3.2-16).
3.2 Customer Engagement:
3.2 a. Product Offerings and Customer Support
3.2 a1 Product Offerings
The product portfolio is reviewed during Strategic planning process
(Current, potential products, services) including opportunities for
innovation. The identification of changes required is done through
analysis of customer needs and requirements as a part of customer
listening (Fig 3.1-06). The action plans are derived and implemented
through NPI and after sales support processes.
Fig. 3.2-01
1. Listen & Learning

Posts (Customer
Clinics / VOC)
7.Implementation in Process/
Product / Services SPS & Reviews
6. Change
Approval
TATA MOTORS
Fig. 3.2.-02 Innovation in Product Offerings to Meet and Exceed Requirements
Processes used to
innovate Product
Offerings
Customer Requirements Identification
2. Information
Analysis and
Action plan
5. SPS &
Reviews
Claims raised by channel partners are settled

by way of crediting the Amount. AMC process
is improved, in case of opportunities
Make part available & increase the reach as
per demand
Complaints are analyzed & a monthly report is
generated & disseminated to all agencies
concerned in the company
Franchisees are selected for reconditioning of
aggregates. Quality & inventory is controlled by
processes
Warrant claim settlement time is reduced
Stagegate NPI
process (QFD;
Sales & Marketing
processes;
usage and attitude
studies,
ethnographic /
observational studies;
Customer Support
processes;
TMA
3.
a. New Requirements
b. Product (QFD)/Process
(PDPI) Improvements
c. New Segment
d. Additional learning
post required
4. Decide the scope and plan

for product / service offerings
Methods used to validate

that the Offerings meet
requirements & exceed
expectations of
Customer Groups
QFDs, Customer Clinics,
L&L
Listening and Learning
approaches
JDP / TNS Customer
Satisfaction, Surveys
DQCTC, Service Edge,
AMC,
Loyalty, repeat purchase
28
Methods used to validate

that the Offerings meet
requirements and exceed
expectations of Market
Segments
QFDs, JDP/ TNS, APEAL,
IQS survey
Market Share, Sales
Volume; New Product
volumes;
JDP / TNS CSI ,
SSI Survey
Performance on free &
paid service, AMC,
Service Market revenue
Pre-owned cars and
exchange business,
RECON
Fig. 3.2.-03
Process steps used Using to attract

to identify Offerings new customers
Understanding the
New Product
requirements of
Introduction
potential , future
Process/QFD,
customers & deliver
Service Policy
the product &
Design
services)
Fig. 3.2.-04
and warehouses in improving their safety performance by making

norms, conducting audits and trainings.
The network expansion drive has led to PCBU network becoming
stronger by 250 dealerships and 600 customer access points spread
over 401 cities. After-sales support is extended through 837 service
locations and 21 spare part distributors. CVBU is represented by
1350 sales touch points and 1500+ service touch points spread
across the country
The network development decisions are based on a data driven
analysis of various parameters like geographical market reach at
district and city levels, total industry size in the geographical area,
current dealership effectiveness and competitive network
penetration. CVBU has rolled out "SCV-Platinum range" of 3S setups aimed at improving rural with optimal investments.
On opening up of Nano retail in different parts of the country, PCBU
has taken several innovative measures to expand the reach to the
target audience by the following means:
1. Using the existing authorized service center network of PCBU
(TASCs) for display and sale of Nano
2. Opening up of small special Nano access points (SNAPs) in rural
and semi urban areas,
3. Tying up with Big Bazaar outlets in select locations for display and
booking of Nano
Vary for Different Customers, Customer Groups The
mechanisms and approaches (Figs. 3.2-05, 07) are customized and
vary for different customers, customer groups and segments. For
Govt. / Defense business, a separate group interacts with Govt
agencies to understand and fulfill their requirements. Focused
market development is performed through Sectorial process which
addresses Industry-specific & customer requirements by designing
products for reducing overall transportation cost and increased
Safety, access customers through a widespread network touch
points for Sales & Service and product specific websites.
Determination of Key Support Requirements
Standard formats are used to collect customer support requirements
such as enquiry for sales, spares service (Fig. 3.2-03, 05) Through
CRM-DMS system these requirements are deployed across
geographies.
New Customers and Relationships

Using to expand relationships
with existing customers
Creation of new L&L posts
Creation of new or modifying the
contact and access mechanisms
Key Account Management
Key Products & Changes to Customer Support
New Product offerings: Domestic - Star bus ultra, Magic IRIS & ZIP, Aria,
Sumo Gold, Indica eV2, Indigo eCS, Vista Sedan Class, Venture.
IB - Prima in South Africa, Tata Marco polo Bus, ACE EX Bangladesh, LPT 2116,
2123 in Myanmar, LPO 1618 with ABS in Kuwait, Xenon Euro 5 with Airbags and
ABS in Italy, ACE Left Hand Drive in Afghanistan, Nano in Nepal and Sri Lanka,
Manza in Sri Lanka.
Changes in Customer Support: Project EXCEED, Project 1660, Speedo Bay,
Tata Alert, Project Green, e-learning, TASS Council, STC modernization, Tata
Authorized Service Point, Focused network development in Rural areas, Works
Manager Certification Program, Driving license renewal reminder, Driver Training
Institute, Mobile training van, TASS Distributor Network, Part Distributor for Army,
Exclusive Dealerships for Nano and UVs, Refurbished Vehicle Business (TATA
OK), Insurance Business (TMI), Financing Initiative, Tata Motors Assured.
IB - Customer Care Process and FMC - Full maintenance Contract in South
Africa, Digital customer care in Nepal & Bangladesh.
3.2 a2 Customer Support.

Enable Customers to Seek Information & Customer Support.
Determine key mechanisms Key access mechanisms (Fig 3.2-05)
supports the use of products and enable customers to seek
information and conduct their business to get meaningful feedbacks
Key means of Customer Support
Key means of customer support are face to face interactions, web
site , Internet etc (Fig 3.2-06). L&L methods and approaches give an
opportunity to get in touch with customers for various purposes and
facilitate meaningful interaction..While the dealer network is being
expanded for customer reach, with specific focus to semi-urban and
rural territories, the existing network is also being upgraded to
enhance the quality of customer experience .It helps dealers, RSO
Fig. 3.2-05
Key approaches
Key Access Mechanisms and Key Contact Requirements - CVBU
Access mechanism
Contact Performance Requirement
Diff Customers,
Groups & market
segments
Results
?
Seek information:
Tata Motors website,

Dealers, Offices near all major Markets
Information Request All access points/CAC-Toll Free/ Website
?
Conduct Business:
Sale of Products
Dealerships, Govt., Institutional, Direct Sales
24 hrs - call centre CAC, Key Account Portal
Breakdown
Assistance
All dealer, TASS and service offices
Enquiries and sales
Vehicle Service
Vehicle repairs
VOR due to parts
Spare parts
?
Make Complaints:
Complaints
Response within 24 hours
TASS Dealerships and TASS

Regional warehouse to supply parts
Dealers, distributors, retailers(>8000), e-cats
Driven by customer needs

Report Action taken within 1 hour
Assistance within 24 hours
?
Customers to be acknowledged immediately
?
Job card preparation <10 minutes
?
Delivery time< 24 hrs for minor repairs and < 3
days for major repairs
Reliable repairs no repeat complaints
Easy accessibility
Within 3 days
Ready availability of parts and genuine spares
Dealers / all offices

CAC Centre, Key Acct Portal, Website
Complaint resolution in 3 days

Acknowledgement within 24hrs
Dealer / TASS
All
7.1-05
All
7.5-36
Same day fulfilment
29
All
M&HCV, Bus, LCV
7.1-06, 08, 13 - 15
7.1-11
M&HCV, Bus, LCV

NVB
NVB
7.1-14
7.1-13
All
7.1-03 - 05
TATA MOTORS
Fig. 3.2-06
3.2 a3 Customer Segmentation.

TML uses Market and customer segmentation process (Fig. 3.2-08)
inline with Industry, SIAM, RTA practises / guidelines. The customer
needs like service, spares and other value added services are
addressed through Non-Vehicle Business (NVB) line. In each of the
segments mentioned above, there are smaller niche segments with
peculiar / specific needs, e.g. cargo, construction, cement
transportation, school buses etc. where TML develops specific
products to cater to their specific needs.
Customer Support Methods
a. Face to face Interaction- Meets Campaigns Surveys Customer Clinics prima

training for S/A Works mgr Aggregate Trg centre in Kenya & Mozambique
Drivers training school in Nigeria& Bangladesh, Construk support, DTC Fleet
Management, Key Account Management- KAM
b. Websites & Internet:- Product specific websites, CRM-DMS
c. Forums - 24*7 Toll Free Number, Mobile-SMS TASC, TASP,TASO,
Distributers
d. Communication & Advertisements - Mailers Letters Demos and Promos
Out-calls Publications, Exhibitions, Samarpit for customer support and
'STRIDE' magazine and Tata Reach newsletter for IB dealers, Samvad, CV
Buzz, CV Talk,
Key communication mechanisms: Channel Partners -Dealerships, TASSs,
Distributors, Part Distributors & retailers, Annual meets, Regional meets,
SHQ/RO/AO, Web site, CRM-DMS, CAC and monthly report, CCT, excl
dealerships, Service circulars, Daily Service Synopsis, etc
Processes - Market Development, After market support processes
Market and Customer Segmentation

2. Identity Customer
requirements and
determine customer
segments and market
groups
1. L & L Posts - Products, Services, NVB
5. Create New L & L Post
Key Access Mechanisms and Contacts Requirements - PCBU
9. Feedback to L & L
Fig. 3.2-07
Fig. 3.2-08
4. Create New Segment
No
3. Existing Segment?
Yes
IB
8. Address Segment
RTA
Domestic
6. Domestic
or
IB Segment?
7. Address Segment
SIAM
Customer* = Current, Future, Potential, Competitors customer
These segments are analysed at least once a year in SPS (Fig. 2.101) which gives us gaps and opportunities for new product
development (NPI process inputs) and improve the existing
products. e.g. Star Bus Ultra . Channel partner network (Fig. 7.1-10)
addresses various customer requirements of sale and service with
reasonable proximity.
Trends in customer satisfaction (Figs. 7.2-01 to 13) and in market
shares (Figs. 7.5-36 to 57) indicate that segmentation approach is
effective. The effectiveness of the segmentation process is reviewed
in SC.
The basis of segmentation, its advantages, impact to gain
dominance in industry, is shared with channel partners and their
views are incorporated while updating segmentation process on an
annual basis, e.g. The channel partners are aligned towards
segmentation through separate dealerships specific to LOBs.
For pursuing relevant market segments for growth; prioritization is
based on
1. 'Market Attractiveness' (Total Industry Volume -TIV),
2. Market Strategy and
3. Organizational Capability (resources such as funds, people).
The process (Fig. 3.2-09) is used to determine which customers,
customer groups, and market segments to pursue (Targeting) in the
global auto scene. The entry into any potential market is evaluated
on market accessibility, product suitability, market size and
profitability. Once the market is deemed to be attractive, a systematic
process is used to 'open up' and to 'develop' the market selection.
The targeting of customers is also based on a detailed study focused
on understanding which customer expectations influence and
ultimately drive purchase decisions.
Consider Customers of CompetitorsWhile identifying market
segments & customer groups, all customers of competitor, potential
customer and market are included.
Determine which Customers, Customer Groups
SegmentsThe Determination of the customer, customer groups
Exclusive CS website
Legend : Contact Requirements: I = seek Information, B = conduct Business, C = Complain
Ensure Key Support Requirements Deployed..

Customer support requirements become inputs to key customer
facing process. These outcomes are measured and reviewed
periodically. Performance gaps are identified and improved up on.
This ensures that all customer support requirements are deployed to
all processes and peoples. E.g. initiatives like Tata Alert, Onsite
service support package.
Identify Current & Future Customer Groups & Market Segments
Various L&L mechanisms (Fig. 3.1-06) use information from expert's
report, industry journals, SIAM reports to understand the needs and
requirements and preferences of customers. Accordingly TML has
organised itself into "Domestic & International Market." which are
further classified based on product application like trucks & buses. It
follows GVW based classification adopted by SIAM & RTA. SIAM
provides competition data like volume & Mkt share on monthly basis.
SIAM has created Mini/ Micro truck segment where products like
Ace, Ace Zip, Magic and IRIS are covered. It also caters to
requirements of government and other institutional customers like
STUs and Defence.
TATA MOTORS
30
Fig. 3.2-09
TML builds and manages relationship with customers using

approaches like KAM, Customer meets, Customer complaint
resolution, (Fig. 3.2-11) for few examples of relationship building.
IB Market Attractiveness Matrix
Based on regulations,
Country risk,
localization, distribution
& predictability
No
Future Possibility
1. Market Accessible?
Fig. 3.2-11
No
Includes products for

pipeline for next 6 yrs
2. Product Suitable ?
Products
No
Potential volumes
Approaches for
To await new product
3. Market Large enough ?
Not to enter
4. Market Profitable ?
and market segments to pursue business for current and upcoming

products is done on the basis of market accessibility, Product
suitability, Market size and profitability.
The segmentation process is revisited annually with inputs from
multiple listening and learning, various feedback mechanisms,
inputs from SC. The segmentation process gets revisited during
deliberations for current and potential customer groups and market
segments as part of the environmental scan of the SPS .
3.2a4 Use of Customer Data
Present and potential customer data is obtained from Customer
Clinic, VoC, Customer Complaints etc. and is analysed for
improvements, innovations, prioritisations and product launches.
Market Development system uses directions from SPS to improve
marketing and increase its focus on customers (Fig. 3.2-10).
Customer perspective in BSC ensures customer focus which is
cascaded to operational level BSC and PMS, SQDCME, VMCDRE.
e.g.LCV Fuel efficiency improvement by 8%,NVH reduction on MCV
buses in Qatar, Colours in Nano 2012 model, etc.
Fig. 3.2-10
Customer
Present
&
Potential
Complaints
Customer Clinic
Competitive
Information
3.2a4
Customer
Data
4.1a3
Selection of
measurement,
Innovation
Prioritization of
Product
launches
Private
Institutional
International
Indv Key STU Defence
Cust Cust
??? ? ?
??? ?
??? ?
??? ?
??? ?
??? ?
??? ?
??? ?
?
?
?
?
?
?
?
??? ? ?
??? ?
??? ?
??? ?
??? ?
?
?
?
?
??? ? ?
??? ? ?
To Acquire New Customers

Customer Acquisition System (Fig. 3.2-14) establishes how it tracks
the customers (new/ potential/ repeat / competition/ lost customers)
for pre-sale & post sale of its products. It takes inputs from
customers/ customer referrals, CRM-DMS and links to market
development process. This helps to track sales performance against
the targets virtually on a daily basis. The information gathered in L&L
approaches get used to both for short term (ST) and long term (LT) to
remain focused on changing needs of customers.
E.g LOB specific dealerships which were appointed for better
business focus have resulted in increase of market share. e.g. In
UV's the market share went up from 9% to 15%.
To Retain Customers, Meet their Requirements & Exceed their
Expectations
TML uses Customer life cycle approach right from 'Do not know' to
'Becoming an advocate (Figs. 3.1-07, 3.2-12,13,15).
The processes and approaches (Figs. 3.1-07, 08) are used in
meeting customer requirements and exceeding their expectations at
each stage of life cycle.
To Increase their Engagement
TML ensures customer engagement through Customer
Relationship Building process (Fig 3.2-03). This process is targeted
to achieve Loyalty, advocacy and customer satisfaction (Figs. 7.214, 15). Relationship Building process is deployed with IT support
thorough SAP and CRM-DMS. CRM-DMS is focused on customer
relationship management providing entire tracking right from the
enquiry, purchase of vehicle till resale.
The Analytics module provides results on Sales and Service
performances on real-time basis. This triggers actions for acquiring
new customers, repeat purchases, referrals and providing better
solutions to customers. MIS of 'Lost Customer' gives an opportunity
Analysis of Customer data

VOC / Surveys
Cust. Life
cycle stages
1 to 7
Key Account
2,3,4,5,6
Management *
Customer Meets
1 to 7
Training -Driving
3,4,5,6
High Mileage Awards*
4,5,6,7
Technical Seminars
3,4,5,6,7
Customer newsletters*
3,4,5,6,7
Complaints resolution
3,4,5,6,7
Outcalls, Advts,
1, 2
meeting customers of
competition
Approaches for Services
Fuel saving/service
3,4,5,6,7
campaigns
Customer Meets
1 to 7
Training -Servicing
3,4,5,7
AMC Contracts
3,4,5,6
Parts retailers
3,4,5,6
development
Mechanic /retailers
3,4,5,6
meet*
Complaints resolution
3,4,5,6,7
Addn. resources not

commensurate with
market yield - to exit
No
EBITDA to be Positive
Customer Relationship Building Approaches & Methods
2.1a2,
2.1b,
6.1 a &
6.2b 3
3.2b Building Customer Relationships

3.2b1 Relationship Management
Build & Manage Relationships TML use Customer Acquisition,
to identify, acquire and maintain Customer Relationships. CRMDMS tracks all the transactions with customer till the vehicle is sold
by him after usage. Continuous communication mechanism like
updated customer database in CRM-DMS, mailers/SMS with
existing/lost customers, is used for product information, services
campaigns, etc.
CVBU uses value added services such as Recon, Construck onsite
support, Fleet Management, AMC, Refurbished vehicle business,
Pre-Owned Business, TMI, Finance for dealers & customer,
insurance for customers, loyalty programme etc. for relationship
building. Customer Meets, Campaigns & technical seminars are
conducted to build positive customer engagement.
31
TATA MOTORS
to go back to them with better offerings.

TML is one among few CV manufactures globally & first in India to
implement KAM (Key accounts Management) process. Key
customers get preferences in delivery, services, Rate Contract, AMC
contracts, RECON, plant visits.
Onsite Driver, Mechanic trainings & Veh. Check-up camps, etc.
Further Key customers are entitled to free loyalty benefits under Tata
Emperor Loyalty programme.
TML is driving a new initiative, 'Retail Channel financing' to provide
competitive edge to its dealers and customers by optimizing
'financer spread' for arranging funds at low cost & fast disbursement.
It is also driving innovative insurance solutions for protecting the
Steering Committees,
Process Owners
Sales & Marketing,
Customer Support
Sales & Marketing,
Customer Support
Steering Committees,
Process Owners
Sales & Marketing,
Customer Support
Process Owners
This process includes acquiring new customers,

meeting & exceeding requirements, expectation
and increasing engagement
Stage II
Quotation
Stage III
Advance
Payment
Stage IV
Vehicle
delivery
C1
C2
C3
C0
Prospect Customers
(Universe)
Fig. 3.2-15
Complaint Management Process PCBU
e-mails/Website/Toll-free
Knowing the impact on positive referrals - Number

of business transactions through positive
referrals are tracked and monitored by S &M. CRM-DMS tool gives the analytics
5. Review Results Volumes, Growth in

Customer base
6. Determine customer
contact requirements thru L
& L approaches. Also
collate and use inputs
received from Channel
Partners
7. Review the process
Sales & Marketing,

Customer Support
Knowing the impact on repeat business Number

of repeat business transactions are
tracked and monitored by S &M. CRM - DMS tool gives the analytics. This gets reviewed periodically
4. Acquire new customers,

repeat customers, referrals
Who is involved
Customer Acquisition Process
Stage I
Enquiry/
Contact
Customer Relationship Building
Process steps for Customer

Relationship Building
1. Determine Customer
contact requirements.
Modify existing one
2. Performance review and
analysis of current
approaches
3. Deploy CRM approach
Knowing the impact of the steps on customer loyalty - This gets tracked in the TNS
survey and the action plans to improve it across the Organisation
Fig. 3.2-12
Fig. 3.2-14
Verbal Complaints
P&F Complaints > 3 days old
CRM DMS Complaint Modular

Acknowledgment to Customer through Letter
Dally Report to Dealer
Owner on Complaints by
CRO (C-0)
90% CLOSURE AT THIS LEVEL
Excalation to WM (1-days), OM and Owner (3-days)
Escalation to C-7 Form for

complaint greater than 3 days
Complaints received at Tata

Motors Area Office, Regional
offices, BHQ to be forwarded
to Dealer Principal
Escalation to CBM=TML
through c-7 (within + days)
Complaints Open > 3 days - Follow Up by R O with Dealer CRM

Technical Issues : BOP
Spare Parts : BPO
Complaints Open > 7 days - Follow Up by CH Q with OMRCCMRC M
Pre-ciosure by Dealer & Closure conformation by Region based on
allm Note/Closure Letter
Complaint closed in system by SHQ after final Verification
Fig. 3.2-13
Complaint Management Process at CVBU

Inform Customer
All types of
Customer
Complaints/Issues
through all media
and from all touch
points
Input to
NPI for products
& variants
No
Is it Product
related?
Log on the
complaint in CMS
and acknowledge
to customer
Allot the complaint to

agency responsible
and keep the track
it get resolved
No
5
Is it Safety or
Catastrophic?
No
Escalate to higher
agency
Priorities and
take up the
complaints in
No Plant CCT
meetings based
Resolved?
on the incidence,
cost and
Yes
customer issues
RMCC alerts Parts

Dept. Head CC,
ED. CV and Plants
Review
with
Plant
Heads
Discuss the complaint on

Issue in Weekly
meetings
d
Action
Plan
Arrange Swing
Units
Close the
Complain / Issue,
Prepare MIS,
circulate and share
the findings in
Steering Committee
Inform Customer
32
Take up the
complaints or
No Issues to Steering
Resolved?
Committee level.
Validate action
plans
Yes
Inform Customer
Roll out
g Ready at
RWH for
replacement
Input to
NPI
Root cause analysis and

prepare periodical Product
performance reports
e Urgent Stock to
Request to parts
Dept
TATA MOTORS
Yes
Resolved in
stipulated time
frame?
Yes
Yes
PDPI
Inform the action taken, along

with the Break Point to the Field
through Circulars. Carry out the
action required in the Field
(Retro fitments/Trials)
Monitor the complaint

status and tends for
stipulated period.
Monitor effectiveness of
the action taken
Improved the
process
feedback loop
closed
Such complaints received are passed-on to the CAC for registration

and resolution.
Ensure that complaints are resolved promptlyThe process has inbuilt escalation loop (Figs. 3.2-13,15) for resolution. Senior
management is kept posted about the key customers complaints in
SC meetings and Customer Care Team (CCT) meetings. The
resolution of complaints is shared with the customers by CAC. The
time taken for resolution, improvement in performance, is a key
measure of the process.
Enable to Recover Customers' Confidence
The systematic process of CMP (Fig 3.2-13,15,16) to respond to
customers and has in-built escalation mechanisms for appropriate
actions on the complaints received.
cash flow of its customer. Through AMC, Recon, Fleet Management

businesses.
TML engages with customers on regular basis. Sales Planning,
Project VISHWAS, Project Parivartan, Project Kaushal, Driver
Training, KAIZEN, Construk, ISO, Green Workshops, e-learning,
Proj Suraksha, WM Certification, etc (Fig. 7.1-09) are deployed at
dealerships. These projects are aiding better service to the
customers and build healthier relationships. The Customer
Acquisition(Fig 3.2-14) is among the key processes of customer
engagement. The focus is on migrating customers from need
identification (C0) to purchase of the vehicle (C3) stage. This
process facilitates building pre/ post purchase relationship leading to
repeat purchase (C3 to C0) & positive referrals. CVBU uses '4 Box'
approach as an input to NPI process (Figs. 6.2-06, 07) primarily
addressing customer needs and expectations through innovative
products. Non-product customer needs are catered thorough
aftermarket support processes.
3.2b2 Complaint Management
The complaint management process (Figs. 3.2-13,15) ensures that
complaints are addressed by respective functions such as ERC,
Manufacturing, Vendor management, etc through timely resolutions.
Root cause is analyzed and corrected for effective complaint
resolution. Repetitive complaint data is tracked and result relation is
reviewed up to the Steering Committee level. The effectiveness of
this overall process is reflected in the Loyalty Index (Fig. 7.2-14).
Complaints are captured 24*7 by the Customer Assistance Centre
(CAC), channel partners and TML officers at various touch points.
Fig. 3.2-16
Fig. 3.2-17
Trigger/Findings
Delay in warranty claim/free
service settlement
Building Relationships Improvements
Source
Need to improve service

CSI survey
levels of key customers
High vehicle downtime due to CSI survey
non-availability of spares
Need to explore service
market
Integration of end customer
knowledge
Complaint Management Process enables TML to
Process to ensure that the complaint management

Recovers customer
Enhances customer
Enhances customer
confidence
satisfaction,
engagement,
- Immediate
- Discuss and
- Fast recognition of
recognition for
escalate the
the complaint,
issue.
complaints when
Feedback and
- Closing the loop as
they are repetitive,
closing within the
soon as the complaint is - Provide training or
committed time
closed.
awareness to
lines, Warranty and
In case of design change customer to avoid
Goodwill claims are
where time line is long
future recurrences,
settled as per
enough, keep in touch
Visits to plants,
norms, Training,
with the customer
Ensure the
Customer
processes are
meets/visits to
improved after the
plants, Melas,
resolution of
Seasonal Greetings,
complaints
Maintenance seminars
Improvements
DSI Survey Warranty on web. Warranty

authorization to Channel Partner
was fully empowered
Launched Sampoorna Seva,
Loyalty cards, Construck
Set-up of 4 Regional Warehouses.
Channel enhancement-42
distributors, 5000+retailers
CSI Survey Bumper to Bumper Campaign,

Focus on Services marketing
QFD
Customer database extending
into a comprehensive CRM-DMS
package enabled through web
This is supported by the approaches (Fig. 3.2-17) such as daily

synopsis, CCT meetings, and warranty complaints are part of daily,
weekly and monthly reviews to cater to customer complaints.
Customer dissatisfaction is minimized (as well as loss of repeat
business) by ensuring complaints are promptly and effectively
addressed, resolved and communicated to the customer.
Repeat complaints are tracked and reviewed to enhance customer
confidence. It has achieved significant volume growth while
improving customer satisfaction.
33
TATA MOTORS
MEASUREMENT, ANALYSIS AND

KNOWLEDGE MANAGEMENT
17 Awards at the 22nd National Convention, organized by the Indian National Suggestion Schemes'
Association (INSSAN), held at Jamshedpur
The Indian Engineering Export Promotion Council (EEPC) has conferred Tata Motors with the 'Top Exporter for
the Year 2010-11' (Silver Trophy), for its outstanding contribution in engineering exports, in the motor vehicle large enterprise category
Tata Safari enters the Limca Book of Records for highest raid by the paraplegic woman covering 3,000 km in 10
days.
Jamshedpur plant bagged the Enterprise Performance Excellence for the Year Award 2010-11
Lucknow plant won 12 awards in the 13th National Suggestion Summit, organized by the Indian National
Suggestion Schemes' Association (INSSAN), which was held in New Delhi on 3rd and 4th June, 2011
Safalta & Parivartan teams bagged the 1st prize at the 24th CII Quality Circle Competition 2011 (Northern
region)
Pantnagar plant won 1st Prize at the Indian National Suggestion Schemes' Association (INSSAN), Western
India Chapter (WIC) Suggestion Competition
Pantnagar plant has won the CII Environmental Best Practices Award 2012 in the Innovative Environmental
Project category, for 'Recycling paint sludge into reusable industrial primer'. Not only did the plant win the
award for the second consecutive year, but also was the only company short listed in the auto sector, amongst
the 127 participants
Total IPR crossed the milestone of 1500.
4.
MEASUREMENT, ANALYSIS & KNOWLEDGE MANAGEMENT

overall performance measurement as overall goals/targets gets
cascaded in the BSCs and then to individual KPIs through PACT
process.
Key Organisation Performance Measures: Each process
contains relevant performance measures (Ref. Figs. 6.2-01 and Fig.
6.2-02). Key organizational performance measures including shortand longer-term financial measures are shown in BSCs (Figs. 2.2-05
to 08). PLM ERP CRM systems (Fig. 4.1-03) integrate
information across the functions (e.g. sales, production and costing
data are integrated) to enable organisational level decision making
4.0 Measurement, Analysis and Knowledge Management

4.1 Measurement, Analysis and Improvement of Organisational
Performance
The Performance Measurement system (Fig. 4.1-01) at the
organisational level uses the business policies to drive and change
the business, whereas at the operational level, the detailed work
instructions and procedures (ISO/TS) are used to run the business.
4.1a Performance Measurement
The Performance Measurement System articulates and identifies
organizational objectives. The process begins with gathering
requirements and expectations of stakeholders. The data is then
analysed and integrated with the Leadership System (Fig. 1.1-01),
SPS (Fig. 2.1-01) and BSC (Fig. 2.2-07) for determining the goals,
challenges and strategies.
Balanced Scorecard approach is used as a strategy implementation
measurement tool to deploy the goals and strategies. Steering
Committees (SCs/OCs/MCs and Board) at various levels (Fig. 1.109) analyse performance and evolve action plans for
implementation.
Wide range of Engineering and Business Application Systems
(Fig.4.1-03) are used including CAD/CAE, Product Life Cycle
Management (PLM), ERP, Business Warehouse (BW), Supplier
Relationship Management, IT service management, Customer
Relationship Management - Dealer Management System (CRMDMS), Digital Product Development, manufacturing execution
system and Web Applications for managing its data and
information.
It captures Knowledge assets, comparative data, best practices,
learning and ensures transfer of knowledge across the organization
through various Knowledge Management (KM) practices. TML is an
industry benchmark for ERP, CRM-DMS and SRM Implementation.
Tata Technologies Limited (TTL), a subsidiary company of Tata
Motors Ltd and IBM, are the major IT Service providers.
4.1a1 Performance Measures - Select, Collect, Align and
Integrate
Select - The strategic objectives (Figs. 2.2-05 to 08) form the basis
for selection of performance measures (Fig. 4.1-04), which leads to
the identification of various levels of process measures (Fig. 4.1-07).
These are documented in the BSC as well as process charts.
The BSC development process (including target setting) ensures
that the measures focus on stakeholders requirements, linked to the
objectives and are a mix of leading & lagging measures as well.
Collect - Information is collected and integrated for review through
the entire set of integrated Engineering and Information systems. All
key data and information is captured at the source.
Fig. 4.1-02
Business Alignment and Integration
Align with strategic

direction
Top of
SPP
Organisation BSC
Down in the MPAs and
organisation Team Goals
Fig. 4.1-03
IT Landscape
TML Value Chain

Product
Development
Sourcing
PLM - Team Centre
LM, SM - Is Auto
PLM Team Centre
SQDCM (daily work

management)
MIP & DQCTC (daily work

management)
Integration across units, work groups & Supplier / Partner

Employees Individual Targets - PMS-KRAs (PACT)
Dealer
performance
requirements
Performance Management System

and Steering Committee reviews
Alignment
Objectives, Measures & Targets
Regional Office Level BSCs/BOS
Customer
Service
Retail
SEIBEL - CRM /DMS
SAP - Is Auto
Warranty
Customer Portal
MES
SAP - BW
SEIBEL - CRM
SAP ECC 6 (FI, CO, CRM, HR, PM, QM)
Commercial Objectives(BSC/BOS)
Departmental Level BSCs/BOS
Distribution
TML Support Function
TML Objectives
Supplier
performance
requirements
MES - RA
Digital Manufacturing
DELMIA
BSC/BOS
Sales, Marketing & CS BSCs/BOS
Sales
&
Marketing
SAP ECC 6 - IS AUTO (MM, PP, QM, APO, SRM, SD, Logistic, BIW etc)
Euclid
Catia V5
TML Vision & Strategy
Divisional Level BSCs/BOS
Manufacturing
TML Core Business Function
Performance Measurement System
Plant Level Objectives(BSC/BOS)
TML Steering Committee

Plant and Functional SCs and SLAs
ISO/TS procedures, Business Application
Systems (IT), CFTs and SDTs
on areas like product mix, business planning etc. Visual displays of

performance on BSC/SQDCME/VMCDRE measures are used to
integrate upstream/downstream organisation and systems/
processes supported by environmental, green and low carbon
growth related measures in the BSCs. These are used for tracking
and monitoring daily operations. Reviews of BSCs comprise
performance analysis and corrective actions at operational levels.
Steering committee members own the processes and are supported
by a team that is responsible for ensuring the relevance of the
associated metrics, for gathering and reporting the information, as
well as for evaluating/improving the processes. Process owners
have the responsibility to learn from and share with other process
owners.
Cross Location Teams and Central Process Teams (CLTs/CPTs, e.g.
HR teams) approach has integrated learning and sharing into the
processes. This has helped in commonisation of the processes
TML Strategic Function
Fig. 4.1-01
Integrate with various Functions
across locations and speedy adoption of the best practices of one

location to other locations (KTL and KPO). This has led to substantial
gains in terms of cost, quality, delivery of vehicles and new product
introduction, etc.
Frequently measures are determinedEven though the
measures are determined once during the creation of BSC in the
beginning of year, the measures are reviewed every month and
wherever required the changes are made. During the MTR, all
parameters undergo review.
Align and integrate data & information for tracking: Data and
information is aggregated in the monthly BSC/SQDCME/MIS for the
respective area which are further aggregated at organization level.
Align- Use of KPM tree is an approach for systematically cascading

metrics and defining ownerships at the respective organizational
levels. This helps to ensure organisational alignment. BSCs are
cascaded (Fig 4.1-01) down to divisions/in BOS.
Integrate- As explained in the (Figs. 4.1-01 and 4.1-02), data and
information are aligned and integrated for daily management and
34
TATA MOTORS
Such performance reports are reviewed (Fig. 1.1-09) and analysed

at various levels (Fig. 4.1-01), gaps are identified to develop further
improvements.
The Process Owners identify opportunities to close the comparative
gaps between actual, stretch targets, and initiatives/projects are
launched for driving improvements. Analysis and findings of the
daily reports (e.g. daily sales, production & productivity) are used to
support operational decision-making. The monthly aggregated
MIS/BSCs are finalized at all levels.
InnovationBSC/SQDCME/VMCDRE and SLA reviews give
opportunities for innovation in processes as well as products and
trigger problem solving opportunities through CFTs. The formation of
a Learning and Benchmarking Centre, IPR Cell, initiatives like
ICR/ICM, KTL/KPO to drive innovations are using benchmarking
data and information. Ace, Winger, Magic and Nano products have
changed the urban transportation system and Nano being a case
revolutionising the global passenger car market. Many of TML
products and processes have received innovation awards and
patents. Refer Figs. 1.1-06 and 4.1-08 for examples on business
level innovation and process level innovations.
4.1a2 Comparative Data
There is an approach for selecting and using comparative/
competitive/ benchmark data (Figs. OP-17 & 18). That is obtained
from sources such as Consultants, Industry Associations, Foreign
Visits, trade shows, printed material, seminars, suppliers /
customers, JVs, TKC, etc. (Fig. 4.1-05) While making the Short term
and Long term strategy, external consultants helped to get global
benchmarks. These data help in decision making and gap analysis
triggering breakthrough improvements and innovations in products,
processes and its performance (Figs. 4.1-04 and 4.1-06).
TML uses various types of comparisons target KPMs, sources of
operational & strategic decision-making, comparative data, and its
usage (Fig. 4.1-07). For obtaining competitive information, an
approach is used to understand competitors strategies by working
backwards from publicly available data and information, as one of
the inputs to the SPS.
Fig. 4.1-04
Fig. 4.1-05
Select and drive the initiative

that may support ISO/TS
procedures or sub process
to address the strategic
objective through its
measures
Determine the quantities and targets

Cascade to the nest level that contributes directly or
indirectly and align with strategic objectives to help in
meeting the targets
Analyze performance of measures with respective targets,
take corrective or preventive actions and review /
rationalize measures
Identifying performance parameters on which our

organisation needs to improve
Selecting Competitors from both domestic and global

industry for benchmarks
Gathering benchmark data & analysing our

performance levels on the parameters identified
Deciding upon the performance levels we need to

attain, resources available & extent of the gap to be
covered through the best practices available
Using the data & information and Best practices to

support operations and strategic decision making and
innovation to reach target
Fig. 4.1-07
Level of Comparison
Global
Use of Comparative Data at Various Levels
KPM
ROCE, EVA, NPI
measures, EBIDTA
Industry/Competition/
Fuel Efficiency, New

product features & pricing
Group Companies
SLA, Processes, TCOC

data
Inter Plant
PDI Defects /Veh, PQI,

Vendor Rating, Productivity
Within Division
BSCs KPMs
TATA MOTORS
Improve the benchmark process
Benchmarking Process
4.1a3 Customer Data

The customer data (VOC, Surveys, Complaints, Customer clinic,
competitive information) collected through various interactions are
used for selection of measures, improvements, innovation
prioritisation and products (Fig. 3.2-10).
TML listens to and interacts with customers to obtain actionable
information and feedback on products and services through VOC /
L&L processes (Figs. 3.1-01, 03, 06) Factors affecting their
transportation needs, service requirements and other preferences
are systematically collected. Customers, Channel Partners, Goods
Producers, Government undertakings, Financers, Drivers and
Mechanics are approached to understand their requirements
comprehensively.
The data captured through VOC / L&L process (Figs. 3.1-02, 06)
through formal and informal methods such as customer meets
(external and internal), customer complaints, warranty information,
STU technical seminars, Customer Satisfaction and Dissatisfaction
studies, etc is used by the process owners in selective manner for
operational and strategic decision making. The customer inputs
P
PDPI Continue till last operational monitoring level
Select the measure wrt to

the ISO/TS measures that
address the strategic
objective completely
Actions taken
407 Pickup launched. Non Vehicle business Volume of Engines
Customer Contact Points increased in South,
Pace with Ace project for increasing sales
Fig. 4.1-06
Strategic Objectives
Identify the critical business/operational processes or
from the ISO/TS procedures for meeting each of the
strategic objectives
Use of FIBRES Findings
Information collected
Competitors Product
Strategy
Competitors
Distribution Strategy
Process for Selection of Measures and Analysis
Information Sources: Performance

requirements, Benchmarks,
Comparative information, customer
& supplier feedback, surveys, process
requirements and measures, strategic
action plans, business results,
existing performance results,
changes in Govt. policies, employee
and community diversity
To verify the comprehensiveness

of a measure with respect to:
Benchmark measures, compatibility
with existing ERP systems,
addressing stakeholder
requirements, action nature of
outcome of the measure
VOC and QFD studies are used for benchmarking product features
for existing and new products. Tear-Down Analysis and extensive
in-house tests are conducted to compare and improve features, and
performance of vehicles / aggregates / processes.
InnovationTML has launched various innovative products and
approaches (Figs. 4.1.06 and 8). Recently launched, Magic Iris &
Nano 2012 are an example of such innovations. The Innovision as
an internal programme and have captured more than 200
innovations from all spheres including non-plant functions. As a part
of Tata Innovista, more than 193 innovations are captured in 2011.
Source / Mode used

FIBRES Study, Acquisitions, APQC, JUSE, JVs,
Collaborations, Research agencies, Consultants
Product Comparison by ERC, common
suppliers/customers, Consultants, annual reports,
Benchmarking Centre at ERC
TBEM external Assessment, Group Company
visits, Business Excellence conventions, TKC
Warranty Data, Reviews, SAP, CFT/CLT sharing,
Process Owner review, Internal Assessment,
Monthly reports, Plant level VC sharing, KTL
Divisional reviews, Systematic collection of data
35
Effective use in improvement

Strategy process & doc, target setting,
process improvements, market expansion
Design Improvements & Product
Positioning, product performance
improvement,
Process & quality improvement,
empowering the lowest level employees t
Process Improvements, Ensuring
Uniformity, best practices replication
Process & performance Improvements
Fig. 4.1-08
Areas/Function
Sales/Marketing
Materials
Engine
Vehicle
are performed to support senior leaders organisational performance

review and SPS (Fig. 2.1-01). In addition, SCs at all levels analyse,
Some Examples of Innovation
Innovative Approach
Benefits
Process Innovation
Sales Planning Process Customer Engagement (7.2.1
SMS on mobile to CROs to 15)
e-Procurement, ICR
Step change in cost
reduction (Fig.7.5-30 to 32, 35)
Product Innovation
Fuel efficiency
Customers are happy, (Fig
7.1-20)
Aggregate life
Cost of ownership (Fig. 7.1.1)
Fig. 4.1-09
Strategic objective
Some Examples of New Measures Taken Up

Measures introduced
Owner/Function
No of Ideas captured and
Cost reduction
Manufacturing
converted
Labour and spare parts
Dealer satisfaction
earnings/day, Dealer
Customer Support
Satisfaction at IB
Offer world class
Customer Satisfaction at IB
IB Group
product & Service at Shipment sales
the competitive price Volumes in new markets
Grow revenues from Body Builder Quality rating
Business Planning
Fully Built Vehicles
% Body Builder > 80% rating
Enhance value for
No. of Green dealerships
Customer Support
channel partner
become the trigger for incorporating innovations to create value for

the customer.
In International business customer contact, customer clinic,
distributor meets, etc has been deployed in all focus markets to
capture the VOC. VOC of competitors customers provides valuable
inputs to improve product offerings. Customers rate TML on
attributes relative to the competition. Product related inputs are
taken up for product improvements / new products through the NPI
process. Non-product attributes are taken up for service or work
system improvements / changes. Customer Engagement studies
include current, former and competitions customers. The periodic
studies reveal the changes in the needs/expectations of customer.
4.1a4 Measurement Agility
The performance measurement system (Fig. 4.1-01) is evaluated as
a part of SPS (Fig. 2.1-01), through Leadership System (Fig. 1.1-01),
and BSC (Figs. 2.2-05 to 08). The performance is measured with the
help of BSC and reviews at all levels. During monthly BSC reviews,
KPMs are reviewed with the help of initiative templates /KPM
performance analysis. This helps in keeping the KPMs current (Fig.
4.1-09).
Ensuring measurement system is sensitive To keep the
performance measurement system sensitive to rapid or unexpected
changes, reviews are conducted such as monthly BSC/BOS
reviews, fortnightly MC reviews for strategic / concurrent for shortand long-term actions. This is supported by systems such as SAP,
BSC, BW. For example, Magic IRIS and Ace ZIP being the new
addition in the LCV category, the reviews are done for LCV market
share with and without ACE & IRIS to gauge the market response
and trends. Products like Vista refresh and Indica eV2, Nano 2012
have come up through JDP analysis.
4.1b Performance Analysis and Review
Review of the Organisation Performance & Capabilities
The performance and capabilities are reviewed during the monthly
BSC/SC meetings at the organization level and the findings and
action plans are communicated down to the departmental levels
through various forums in plant and non-plant areas (Figs. 4.1-01
and 02), to align and integrate these in their reviews. The
composition of each SC ensures the participation of all senior
leaders.
Analyses performed to support the reviewsSeveral analyses
(Fig. 4.1-12) and correlation of lead and lag measures (Fig. 4.1-11)
ensure that the conclusions drawn are valid and review performance
measures using appropriate analysis and validation tools (to
validate the conclusions and) to identify factors influencing
performance and areas requiring actions for recovery. The services
of reputed consultants and experts are also sought for analyses of
future trends and validation, which is an input to the SPS. (e.g. recent
exercise of scenario planning)
Use of the reviews to respondDuring the BSC, MIS and Strategy
reviews (includes project reviews) on various forums, organisational
success is measured against targets, competitive performance is
gauged against comparisons (e.g. market share) and strategic
objectives & initiatives along with action plans are reviewed against
QCD parameters (Fig. 4.1-10).
To assess ability to respond... The reviews of all strategic plans
and goals take place at least once in a month (MC: fortnightly) (Figs.
2.2-02 and 1.1-02).
Operational reviews happen on weekly and daily basis at each
location. These frequent reviews help to assess ability to respond to
rapidly changing needs and challenges in the market place
environment. (e.g. Adoption of WCQ, Gen3 NPI process, project
EXCEED for PCBU).
Board Reviews the Performance
Governance Board (OP-11) with the help of its committees and
MC/OC/SC reviews (Fig. 1.1-09) the organization performance and
the overall progress of the strategic objectives, initiatives /action
plans, including progress on Safety, Sustainability, Business
Excellence and Climate Change (Figs. OP-11, 1.1-09 and 4.1-01).
4.1c Performance Improvement
4.1c1 Best Practice Sharing
Findings of the organization level analyses are communicated
through OC/SC reviews (Fig. 1.1-09) and priorities for improvements
(e.g. Kaizen events at Vendors and Dealers) and breakthroughs
(e.g. new markets, cost reduction) are communicated to
plant/functional SCs, employees, channel partners and suppliers as
Fig. 4.1-10
Stakeholder
Communication of TMLs Performance Analysis
Analysis of Results Communicated
Employee
Channel Partners
Customers
Company Performance,
Expectations, Market Condition,
New Trends
New Product Launches
Vendors
Shareholders
Financial Performance
Society
CSR, GRI reports, Energy Reports
Medium of Communication
Communication Session by senior leaders, Reviews,
Internal magazines, e-flashes, intranet, KM Site posters
Dealer Meets, Channel Chat
Customers Meet, Advertisements, OK TATA, website,
magazine, customer complaints call centres
Vendors Meet, Interaction during NPI, Kaizen, target &
Performance sharing, Failed part analysis review
AGMs, Annual Reports, Quarterly Publications,
Analyst reports, NYSE disclosure, Media release
Advertisements, Society forums, website
36
Who Communicates
Corp. Communications,
Mfg/Plant/HR/Divn Head, etc
SHQ, Corp. Comm.
Materials, NPI Teams
Board of Directors
Corp. Communications
TATA MOTORS
Fig. 4.1-11
Strategic objective
Quality
Productivity
Cost
Cost of Transaction
Lead Measures
% Processes improved
Kaizen (Nos. of exercise)
1st shot ok on process lines
% Ideas Syndicated
Enforce electronic
communication with all
suppliers
Fig. 4.1-12
Reviews
Organisation
Performance
Review
(Run)
Strategic
Planning
(Change)
workgroups. Information thus flows in a waterfall manner throughout

the organization. The action translates items from the reviews into
department and work group action plans. SC members themselves
drive the initiatives and the processes, which helps in fast
dissemination/sharing of analysis/decisions to the related work
group.
Organisation level analysis thus impacts the operations at plant
/factory/CX level or other lowest level functions to create a focus on
specific daily performance measures and the actions required.
Results are communicated and improvement priorities are deployed
to collaborators, suppliers and channel partners. This ensures
alignment in improvement actions.
Strategic objectives (Figs. 2.2-05 to 08) are linked with processes
(Fig 6.2-01) and its measures and focused strategic initiatives.
Reviews of these objectives and measures identify gaps.
Appropriate action plans are prepared and implemented to bridge
these gaps.
Performance against the benchmarks and comparisons drive
systematic evaluation & improvement of the key systems and
processes. The assessments of processes also help in identifying
process design gaps. For examples, CRM DMS process was added
to the IT System set to bring more focus in the organisation. All the
stakeholders are connected and are able to create, share and
distribute information.
Business strategy is cascaded to IT strategy and roadmap using
Gartner IT Strategy framework (Fig. 4.2-01), which address all 12
pillars in holistic manner.
4.2 Management of Information, Knowledge and Information
Technology
4.2a Data, Information and Knowledge Management
The IT System is used to enable, improve and integrate TML
business processes. This is reaffirmed by various awards won such
as NASSCOM CNBC IT user award, IT service management award,
Innovista award in recent past.
IT strategy is evaluated, improved, and deployed using an integrated
framework of business context and IT services (Fig. 4.2-01).
Corporate IT team and IT BRMs (Business Relationship Managers)
spearhead the roll out of IT roadmap across business units and
functions involving business process owners.
Information Management process is driven by the strategic direction
set by the Corporate and Plant/Functional Balanced Scorecards.
Environment scan (Fig. 2.1-01) is done and Business strategy, user
requirements are collated by IT team and BRMs to prepare
background for IT Roadmap.
The process of drafting the IT roadmap includes Technology
Environment Scan that is culled from global agencies such as
Gartner and other leading Research agencies, inputs from IT
service providers (TTL and IBM), benchmarks relevant to IT from
major automakers and user feedback from surveys (IT survey is
improved this year and questions are made more stringent covering
all the areas in IT). Based on Corporate and Functional BSCs a
Three year rolling IT roadmap is derived and segregated into Run,
Grow, and Transform categories. This plan is shared with Mancom
and SCs. The IT Roadmap is cascaded into an IT BSC.
IT Portfolio management process facilitates in monitoring IT projects
(controlling document SOW: Statement of Work) and IT sustenance.
In IT BSC, IT sustenance and improvement parameters are
monitored (Controlling Document: SLA) and compared with the
industry benchmarks. Every year the user feedback is taken through
Lead and Lag Measures
Lag Measures
Warranty Cost (Rs)
Productivity
improvement (%)
Cost Red in Rs
Early Supplier
Commitments on
cost red (Rs)
Examples of Analysis Performed
Areas
Types of Analyses
EVA, Profitability, Variance, Ratio,
Finance
Sensitivity, ICR, ICM
Growth, Market Share,
Market
Regression Analysis,
Customer Value Analysis, JDP
Customer Won-Lost Analysis, Conjoint Analysis ,
Warranty analysis
Cause-Effect Analysis, Regression Analysis,
Operational Pareto Analysis,
Root Cause Analysis
Product
Project Appraisals, NPV, IRR
Strategy
(NPI, APL), Aggregate commonisation
SWOT, Decision Tree,
Profit
Scenario Analysis, Project Appraisals,
Strategy
Long Term Cash Flow
expectations in terms of BSC objectives/ KPMs and initiatives and

action plans. Innovations and breakthroughs are part of strategic
goals of BSC and the stretched targets.
4.1c2 Future Performance
SPS (Fig. 2.1-01) describes the usage of performance review
findings, comparative data to set the organisational targets. TML
conduct a five-year projection analysis (ST/LT) for all key
performance measures and compare (Benchmarking process, Fig
4.1-06) them with the best information available about competitors.
Projections are collated & determined from wide variety of sources
like third party market research, FIBRES project, company data etc
to ensure reliability and accuracy, calculated performance levels
based on current activities, internal projections data of key factors,
including - industry performance, industry studies, consultants
forecasts, financial institutions forecasts, Governing body
projections (e.g. SEBI), extrapolated from the historic performance,
product or service game changers, if any, product life cycle or
customer life cycle, sustainability of the current performance levels
(e.g. an unsustainable market share may decrease), capacity or
capability of people and capacity of facilities etc. The SC uses these
projections as an input during the SPS. Corrective/containment
actions are initiated using CFT approach (Fig. 2.2-02 & 03).
4.1c3 Continuous Improvement and Innovation
Organisational performance review meetings are prioritized for
continuous or breakthrough improvements leading to innovations
and these are deployed across organisation (Fig. 4.1-08).
In addition to the extensive communication of appropriate business
results and analyses (Fig. 4.1-12) through IT communication and
cascading of the higher level BSCs to the next levels, ensures the
alignment throughout organization. This ensures availability of
information at the grass root level giving managers and employees
the foundation for effective decision-making. Functional leaders,
who participate in SC meetings and other reviews, initiate
communication of the results of the organizational-level analyses by
sharing learning at meetings with respective Division/Department
SC members.
The members in turn disseminate key results to teams and
TATA MOTORS
37
a survey (Fig. 7.1-83) and interactive sessions, which is

consolidated and included in strategic/tactical initiatives. An
integrated framework of IT based on world-class standard products
and platforms (e.g. CRM, PLM, SAP, etc) exists. To address other
employee needs, web based systems are used, e.g. intranet
mytatamotors. It substantiates the alignment and integration of IT
with the business (Fig 4.2-02).
The deployment of systems and applications typically includes
super users and IT BRM as part of the project team to make sure that
all user requirements are delivered to their satisfaction. User survey
and Service Desk assessment give improvement leads to robust IT
Fig. 4.2-01
Business
Relationship
Fig. 4.2-02
2
User Driven IT Governance at Tata Motors
Business Strategy, User needs

collated by BRMs
3
1
Environment
Scan
4.2a2
IT Portfolio
Management
(RGT)
Benchmarking with Best
Run
(R)
Grow
(G)
-in-class
Transform
(G)
IT Governance
Assessment
IT Sustenance/
Improvements (R)
IT Roadmap
IT BSC
IT Service Desk
Assessment
IT Strategy and Roadmap is executed using

Project and Maintenance Governance
IT Strategy Framework
IT Management
Technology/ Partner
Management
Demand
Control
Supply
Business Context
IT Principles
IT Services
Business Success
IT Governance
Enterprise Architecture
Business Capabilities
IT Financial Management
People
IT Contribution
Metrics
Sourcing
policies and procedures. Access controls, which are configured from

the lowest level of transactions to the highest levels of MIS across
the IT systems. Comprehensive IT management includes
procedures like timely backup, archiving and disaster recovery of
data.
4.2 a2 Data and Information Availability
Making data accessible to employees, suppliers Intranet web site
mytatmotors provides comprehensive data/systems (which won
the award as best Intranet at ABCI in recent past) to all employees
and internet website www.tatamotors.com facilitates accessibility of
Fig. 4.2-03
Risks & Issues
Property of
Data, Info. &
Knowledge
Governance Framework. Governance meeting ensures proactive IT

support beyond SLAs.
4.2a1 Data, Information, and Knowledge
Properties of Data, Information and Knowledge are focused,
critically assessed and action plans developed & deployed
successfully through systematic approaches (Fig. 4.2-03).
Properties like integrity are ensured through policies and
procedures. Data integrity is ensured through maker, checker &
approver approach. Cross platform transfer of data is secured by
automated link and in-built Audit Trail in the system. Validation is
done through internal and external customer audits and surveys .
Reliability and accuracy is built into IT systems and technologybased conceptualizations that have heuristics embedded in
procedures and programmed logic. In-built checks in the system
help to detect and prevent occurrence of errors before the data
enters into the system.
Additionally, audit firms provide periodic audit of reliability and
controls on financials. Vulnerability Assessment and Penetration
Testing (neutral assessment) are conducted periodically to ensure
system security and reliability.
TML is one of the few corporate listed on NYSE and mandatory SOX
compliance is ensured through integrated IT systems addressing all
the essential data and information properties. For ensuring integrity,
reliability, security and confidentiality, a high level Management
Information Security Forum (MISF) is formed to provide clear
guidelines on security related initiatives. Chief Information Security
Officer (CISO) co-ordinates the security initiatives and
implementation across the organisation. This role also escalates the
issues, if any. MISF consisting of senior management participation of
all the functions is responsible for the periodic evaluation of the
adequacy of security policies and procedures.
Timeliness is addressed through the real time system support (PLM
and CRM)
Security and confidentiality is addressed through a series of
Accuracy
Integrity
Reliability
Timeliness
Security
Confidentiality
Ensuring Data, Information and Knowledge Properties

Process to ensure this property is achieved and
maintained: Few examples
Data
Information
Knowledge
Capturing at
Capturing at
Audits, Variance
Source
Source/point
Reports
User interface, Online
Advance fault
restricted
analyses,
reporting facility
access
Single server
Online Data
Accounting
Strict schedules for
updation
Process
batch reports,
Audits
Systems
Integration
Data entry at
Automated
Audits, SLAs
source
thru barcodes
Access Control Backup policy Information Security
Configuration,
for databases Policy, Access
through firewall,
& server
Disaster Recovery
Policy
User codes &
Function & role User level
password, TCoC
access &
based
authorisation undertaking
information
product and other company information to all stakeholders (Fig. 4.204). LAN (Local Area Network), VPN (Virtual Private Network) is
being used to connect all locations, subsidiary companies and
Internet to connect stakeholders (Dealers, Vendors, Suppliers,
Community, Banks, etc). Customers can access the TML website
and CAC. Vendors and channel partners/collaborators are
connected through SRM and CRM. CRM is rolled out overseas in
countries where infrastructure support is available such as Bhutan,
Nepal, Bangladesh and Sri Lanka. Analytics has been provided to
20000+ users across TML and channel partners/collaborators.
The Analytics dashboards are being used to take effective decisions
based on real time data across all the business aspects. The dash
board also helps to track vehicles leads, vehicle application,
workshop Profitability, customer satisfaction indices, complaints and
failures. Dash boards are also made available for enterprise
systems and being used in operations, service and quality related
areas.
CRM, an innovation in IT - Tata Motors uses its rich customer
database for customer centric activities using the SMS, Emailer and
Portal media. CRM Call Centre has built innovative capability of
38
TATA MOTORS
Fig. 4.2-04
Stakeholder
Employees
Vendors
Collaborators
Channel Partners
Mechanism
SAP, PLM, Daily, weekly, Regular review meetings, Inhouse magazines, Town hall meets, Intranets, E-mail /
Internet, knowledge sites, Dept web sites or folders,
SAP-BW, business analytics(SAP BI/BOBJ), MiNT, TML
Global portal, SAP HR, KNOME
Design Collaboration, SRM linked to SAP for vendors
to access through Internet, Supplier meets, e-sourcing
platform, SAP, Kaizen at Vendor, E-mail/phones,
Supplier portal (SRM), PLM, add c-Folder, JIS
through SRM / MES
Dealer Analytics, Siebel-CRMDMS, SAP, Dealer meets,
Dealers magazines,
Data/Information Availability & Accessibility Mechanisms

Type of Information
Transaction & MIS reports in Financial Accounting, Planning,
Manufacturing, Materials, Sales & After Sales, Import, Export, Maintenance,
Asset Mgt., HR Payroll, Functional data & information, Product & process
information, Company policies/standards & information, Performance
appraisals, Ideas sharing, Competitive Information
Vendor schedules, performance, transaction details. Share of Business,
resolution of issues, Warranty Data, Business Targets, Quality, Parameters
such as rejection, segregation, etc
Dealer Dashboards, Transactional information related to sales, after-sales,

customers & Hire Purchase, Chassis Delivery, Company information, New
products, Day to day interaction, Issues Resolution
Company Information, Product Information, Customer Complaints
Resolution
Siebel-CRM, Key Account Portal, Call Centre, SMS,

Remote training, Company web-site, Annual Reports,
CAC, Print & TV advertisements, OK Tata, Customer
meet, Service campaign, AGM, Press, Meeting with
Government & local communities, magazine, customer
complaints, quarterly meets, NYSE disclosure etc.
Regulatory Agencies Statutory Information on web sites and Legatrix
Electronic reports and updates on statutory requirements, Periodic Reports
MOUs / agreements
/ Government
Frequency of review - As and when required for effective running of the business
Customers,
Shareholders &
community
converting warm leads into hot leads, thereby increasing the vehicle
sales.
SMS is extensively used for sending information and reminders,
some examples being an SMS to the customer on the completion of
the servicing of his vehicle, hourly SMS to sales managers about
retails during month ends, festive and birthday greetings to
customers. Emails are used for promoting new vehicle launches and
campaigns.
Portals are being used for both displaying information to customers
as in the case of Key Accounts, or for enabling transactions like a
Test Drive request, which gets close-looped by the request getting
allotted to earmarked Dealership CR officers along with the
Customer Relationship Officer details being sent to the customer via
an SMS. Learnings from this system are getting horizontally
deployed in manufacturing to provide information on breakdowns &
hourly production.
These systems/platforms help to communicate with its extended
enterprise on a real-time basis, e.g., material procurement, payment
to vendors and delivery of vehicles and resolution of complaints from
end customers. Organizational, policy and other HR information are
disseminated among the employees through the Employee Self
Service applications (SAPHR) and Enterprise portal. Additionally
Wi-Fi Connectivity has also been deployed selectively.
4.2a3 Knowledge Management
The three-tier KM structure (Fig. 4.2.05) uses various knowledge
transfer mechanisms at strategic, business process and subprocess level, which delivers value to organisation and customers
through improvement of processes, products and services.
Knowledge can be classified into three broad categories knowledge of markets & competition, knowledge of delivery
processes & technology and knowledge of operating practices.
As part of Knowledge Management, the focus has been on capturing
of best practices, learning and ensuring transfer and the use of the
knowledge across various KM practices.
Collection & transfer of workforce knowledgeWorkforce
knowledge is collected and transferred through sharing sessions,
presentations, Ideas shared and suggestions given, horizontal
deployment, Panther teams, KTL / KPOs and improvement
formats, Inter-Plant Sharing sessions, Process teams, exhibitions
TATA MOTORS
and auto shows, etc. Intranet provides opportunities for workforce to

learn and share and also build knowledge repositories such as
mytatamotors, locational updates, KNOME, SRM C Folder etc.
Transfer of relevant knowledge from and to customers:
Customer feedback gathered from direct survey and QFD exercises
(L&L) about their experience and knowledge provides important
input to NPI and design modifications. Customer knowledge is
gathered and transferred in the response chain on regular basis
through communication sessions, customer meets, Naka, Panther &
Field Visits, Vendor meets, Early Involvement of vendors,
Technology days, Dealer meets and strategy sessions etc. help in
sharing the knowledge from collaborators, suppliers and dealers
(Fig. 4.2-06).
Knowledge of delivery processes & technology available globally is
considered, analysed and benchmarked during the facility planning,
selection & installation and the most suitable ones are selected to
deliver the high quality products at the affordable cost. Regular
upgrade projects are also taken for keeping the process
technologies updated (collaborators & consultants).
Identification, sharing & implementation of Best Practices:
Identification of best practises is done through TPM, Six Sigma, SDT
presentations, Process reviews, SQDCME, SDT, Experts, and BSC
Knowledge Management Structure at TML
(Operations)
Experts / CoPs
Suggestion Schemes
CX, SDT, Work Teams,
Collaborators
Improvement groups
Mentoring, Training
Periodicals
Best Practice sharing sessions
Supported by Knowledge Management tools (IT and non IT )
39
Impact on Market Share, CSI, ST and LT plans
Sub
Processes
Knowledge of
Practices,
processes,
operations,
methods, etc
and new Projects
Mentoring, Training
Vendors
(Business)
Review meetings
Experts
CFT, CLT
Improvement, upgradation
Channel Partners
EPM
Processes
Knowledge of
Technology,
engineering,
equipments,
other industries
Strategic Planning
OC, SC Meetings
Review Forums
Stakeholder Meets
Consultants
Market Scans
Employees
Strategic
Knowledge of
Product,
competition,
business,
customer, etc
Measures : Efficiency and Effectiveness
Stakeholders
Transfer Mechanisms
Customers
Fig. 4.2-05
reviews etc. (Fig. 4.2-07). TQM and KTL initiatives help in sharing of
the knowledge across & within the locations (horizontal
deployment). Implementation groups (e.g. planning) and initiative
owners help in implementing the ideas and best practices. Some of
the Knowledge Management initiatives are also supported by IT.
The intranet mytatamotors has brought the various initiatives under
one umbrella for consolidated knowledge base.
Assembly and Transfer of Relevant Knowledge to SPP
All analyses such as vendor and channel partner capabilities, HR,
Market and Customer knowledge (through Market Research and
Channel partners), knowledge gathered from all stakeholders are
used as a part of SPS . All input elements to the SPS are analysed
through knowledge deposited in various databases. For example,
FIBRES report, (Fig. 4.1-05) HR report, Sales Review report etc.
4.2b Management of Information Resources & Technology...
4.2 b1 Hardware & Software Properties...
A set of processes to ensure that hardware and software is reliable,
secure, user friendly and environmental-friendly is detailed out
(Fig. 4.2-07). Robust processes such as IT Governance Frame
work, IT Strategy & Planning, Service Management, IT Security and
control. Single data entry points ensure the data reliability, security
and integrity e.g. ERC for Design BOM.
All the applications are electronically linked and there is no manual
intervention in data transfer between applications and thereby
leading to data integrity (Fig 4.2-09). Downtime metrics is
maintained by Infrastructure Monitoring Team (IBM) for each server
to ensure that uptime exceeds the contractual obligations (Fig. 7.184). In order to adopt best practices to keep the technology
(Hardware and software) current, Enterprise Architecture processes
are integrated with all IT processes.
implemented in line with ITIL standards).

The complaints logged into system are addressed by domain
experts. TML has adopted an Information Security Policy (10
domains of BS7799). A framework is established to initiate and
control policy implementation (Fig 7.1-86).
A Disaster Recovery (DR) Policy document is prepared, circulated
and implemented by CIO at all locations. A formal Disaster
Recovery System is in place to protect the critical data and
information. Reliable and secure network (VPN) is provided to all
locations to access central systems that support the enterprise
operations (Fig. 4.2-08).
As per the policy a parallel back-up server has been installed at other
safe location which supports in case of emergencies and it is tested
periodically as per the schedule. Apart from seeking user feedback
after every service delivery, a formal comprehensive
Users/customer satisfaction survey is carried out to assess and
Fig. 4.2-07
Network
Hardware
Reliability
Software
Fig. 4.2-06
Sources of Knowledge to Enrich Processes, Examples
Knowledge IN
Knowledge OUT
Seminars, exhibitions, Auto shows,
KAIZEN at Channel partners
KAIZEN / 3P
Technology Days by Suppliers
Seminars / Exhibitions
Employee Trainings , SDT Forum
Vendor Processes Audit
BE Assessment / Audit Reports
Training to Dealers
TKC, Group cos. and assessors
Tata Group conventions
Consultants, Trainers, Dignitaries,
TQMS studies, CII, FICCI,
Guests, APQC, JUSE, TQMS
ASQ/ISQ Forums
Benchmarking: Tata Group & other
Tata Group cos. & other industries
organisations, JVs
Process reviews, learning from other Best practices shared with Tata
Group companies
processes
Gartner membership for best-in-class Group IT Forum incl TML and
IT processes, CIO and ISMG Forum subsidiaries
The hardware selection process ensures that the hardware is

environment-friendly and it is not only easy to dispose off but also
consume less resource (e.g. water, electricity, use of flat screens
etc.).
4.2 b2 Emergency Availability
System criticality is analyzed and appropriate Disaster Recovery
(DR) strategy is put in place to ensure the availability of Hardware,
Software, System and data (Fig. 4.2-08). Regular scheduled mock
drill is in place. A support team of IBM and TTL (Infrastructure and
Business systems Service Provider), available round the clock,
takes up troubleshooting through world-class IT Service
Management Process with inbuilt escalation and service level
component.
Tools are implemented which give proactive alerts to Data centre
teams by integrated Tivoli Remedy alert (BMC Remedy is
Approaches for H/W & S/W Properties

Security
User Friendliness
Environment
Friendliness
Scalable Hardware
purchases from OEMs
like IBM, Compaq, Silicon
Graphics, etc. AMCs
cover 99% Uptime &
Routine Preventive
Maintenance
Hardware is manned &

entry to data centre is
restricted. Desktop
protected with power on
password
Open-ended world
class OS like Unix,
Linux, Microsoft NT
& Windows,
Procurement
based on user
requirements,
Demo by vendors
for confirmation.
World class datacentre
Desktop laptop
in sleep mode
setting,
Implementation
of server
virtualisation,
strategy of
replacing
printing setup
with Network
printers
Usage of industry
standard tested active
and passive components
for Network. Redundant
paths for important
network backbone
segments. If one path is
down, the alternative
path ensures
connectivity. SLA with
IBM to ensure uptime
LAN isolated from the

external world. Security is
ensured as high-end
firewalls with deep
inspection functionality in
high availability
configuration is
implemented which
ensures internal network
is protected from external
attacks like unauthorized
intrusion or access.
Standard software
viz., MS-exchange,
Internet Explorer
etc. are used
across network for
communication
locally and across
geographical
boundaries.
Business
systems with
workflows
developed to
reduce paper
consumption,
e.g. online
travel, leave,
PMS,
suggestions etc.
Conversion of all
SAP reports to
PDF format
World Class Products like

SAP (ERP), Seibel
(CRM) and Team Centre
(PLM), Latest CAD-CAM
Tools (Catia, PRO-E,
etc), Delmia, etc.
User access based on

need to know need to do,
after pre-defined approval
to relevant area &
protected by username &
password. Technical
Security at Database,
Operating Sys&
Application level, Virus
protection at all network
Entry points. SOX for
security & confidentiality
Controlled
Methodology of
Deployment with
joint teams from
TTL & TML for
requirement
analysis, design &
testing,
ergonomically
designed software
packages from
world class
vendors. User
Acceptance Tests
Usage of WAN
optimiser which
compresses
total data to
almost one third
hence reducing
the data
consumption
24 Hrs x 365 days maintenance support for hardware & software as per users requirements.
ITSM on ITIL foundation for management of IT infrastructure/services
improve services and make it user-friendly, e.g. Introduction of IT

annual report, IT tips/Newsletter to improve user awareness is
appreciated by all the users.
Failovers and Redundancies are built into the systems wherein
servers and networks always have failover mechanism, backups
and DR critical systems have disaster recovery mechanisms.
Apart from data backup taken for all business critical applications, IT
supports back of vital data stored in emails and personal machines
depending upon criticality of the data and its business impact. For
example, emails, business critical data on Personal Machines is
backed up based on this criteria.
40
TATA MOTORS
Hardware, Peripherals, Network, etc) (Fig. 4.2-10 to 13). IBM

ensures availability of state-of-the-art technology and capacity in
terms of hardware and storage. The SLA agreement between IBM
and TML-TML controls the service standards and levels.
Monthly update on this is circulated to all concerned. Relevant
upgrades and requirements are initiated and executed through an
annual CAPEX exercise and also through periodic reviews.
Keeping the Mechanisms Current

Data & Information Changes in the KPMs form the basis of
changes in the corresponding data availability mechanisms.
Digitised BSC/SQDCME audits lead to selection of appropriate
KPMs that indicate effectiveness rather than activity completion.
Once new KPMs are evolved, the methodology of data-capture,
frequency of reporting and agency responsible are identified.
SAP (Fig 7.1-81) and its interface with the other systems helps to
keep the data current, e.g., product price updation is synchronised
with those in CRM such that the dealers have the current
information. New Business requirements (Fig. 4.2.02) come from
the user to IT BRMs.
The IT processes ensure that data and information availability
mechanisms and systems, including software & hardware systems,
are kept current with organisational & changing business scenario,
needs and directions (Fig. 4.2-09). IT Governance Framework, IT
Strategy and Planning, IT Service Management and Manage IT
Security & Control, CRM processes are assessed, reviewed and
improved every year. IT roadmap, IT BSC and SLAs are reviewed
every month to see that latest requirements are considered.
Hardware, Software & Technological changes: To improve IT
roadmap framework, The Gartner methodology is adopted (best-inclass BM partners) with detailed workout for all IT strategy pillars (Fig
4.2-01). Strategy execution plan is integrated with budgeting cycle.
Proactiveness of Enterprise architecture and IT services is ensured
by revisiting software advancement in Engineering Systems (e.g.
PLM), Business Applications (e.g. SAP) and IT Infrastructure (e.g.
Fig. 4.2-11
Robust Disaster Recovery Process

Criticality How data recovery is addressed
High
Storage of backup tapes onsite
and offsite
High
Fail Over server
High
Disaster recovery server
High
(Disaster Strategy is implemented
High
depending upon system criticality)
High
High
High
High
Medium
MiNT Utilisation
68
60
45
52
40
20
0
17
10
1
2007 2008 2009 2010 2011 2012
Year
183 Applications as on
May 2012
Fig. 4.2-10
Total Workflows Sum of issues
CVBU
PCBU
ERC - Non vehicle
programs
IT Office
K-blk
MSD
PE
Sanand
Thiland
TMETC
Grand Total
565
1671
27
4924
21103
2273
13
45
107
28
5
15
1
2477
344
2247
2676
209
659
7
3
34445
Digital Product Development
Indica (Pre-IDeA), Zing, Magna, Indica (Post-IDeA), Zing,

Indica (Varient),
SFC Truck, LP 207
Magna, Safari, Modifications Zing, Magna, Safari,
in Estate Sierra
Sumo DX, New 407
Introduction of 3D CAD/CAM
Type
MINT Applications Launched

80
No of Apps
Fig. 4.2-08
Systems
PLM
APO
SCM
SAP Logistics
SAP HR
CRM
SRM
MES
Messaging
Web based systems
Fig. 4.2-09
Interconnected IT Systems
Data
Creation, Usage Integrity Check
Reliability
classification Change
in
Check
and
system
Maintain
in system
-Data created through
Maker, Checker &
World class
Approver approach
IT Solutions
Product
PLM
SAP
-Across platform transfer /Platforms
of data secured by
(PLM-Team
automated link
Centre,
In built Audit Trails in the ERP-SAP,
SAP
SAP,
SAP system
ECC
SRM
SRM, CRMAcross platform transfer Siebel,
IPMS /
of data secured by
SAP
IPMS-SAP)
MES
automated link
are used.
Process
1) Data created through These are
tested
maker, checker &
SAP
thoroughly
approver approach
SAP,
ECC,
before
CRM
2)
Across
platform
CRM
transfer of data secured implementat
ion and are
by automated link
periodically
People
SAP HR SAP
HR
In built Audit Trails in the updated and
checked
SAP system
SAP
Money
SAP
ECC
Introduction of CAE
Simulation, Capacity
Enhancement in CAD/CAM
Indica & Variants, Sumo Faclit, Vista, Newsafari,

World Truck, ACE & Variants, Indigo & Variants, Nano,
Y1, Penguin, Dolphin, Winger, Xenon, Bus Programs
New
Vehicle
Maturity of CAE Simulation, Maturity of CAE Simulation and 3D CAD/CAM Capacity Programs
Y2K Compliance, Maturity Enhancement ib CAD/CAM, DP LAB, PLM, dNPI,
of 3D CAD/CAM and CAID Introduction of MPM Solution
3D for All
Digital Manufacturing
CFD
PLM
KBE (KNEXT)
Vehicle Performance
NVH Analysis
Adding
Behavior
to DMU
KBE (ICAD)
Sheet Metal Forming Simulation
Durability abd Crash Simulation
3D CAD Modeling
2D Manual Drawing
1986
TATA MOTORS
1992
1996
2000
41
2004
2008
2012
....2014
Fig. 4.2-12
Management of Issues (MiNT)
PLM
CAE
PDM / INDENT
Learning
Styling
CIP Initiative
PE
BOM
Demerits Tracking
MINT
PCBU PROJECTS
CVBU DEFENSE PROJECTS
OTHER PROJECTS IN MINT
1.
2.
3.
4.
1.
2.
3.
4.
5.
6.
7.
8.
9.
1.
2.
3.
4.
5.
6.
7.
8.
9.
All Indica family

All Indigo family
Sumo Grande
Safari major facelift
SMALL CAR/ SUVPROJECTS
1. Nano
2. ARIA
Y1, BVW
World truck
MHCV Tipper / Tipper
PRIMA, Pelican
Penguin, Winger
J&R Defence
All Ace variants
Hybrib and HCV Bus
LKN Bus
MIRRP Carplant System

BOM Dicorepancies Resolution System
Proto Vehicle Tracking System
PE PLM
Diagnostics Project Audit
Safety Monitoring System
Customer Complaint Resolution System
Stylling Issues
PE MINT, PDM MINT
DEMERIT, ICR & SOFTWARE

TRACKING PROJECTS
1. Indicruz Demerit Tracking

2. Indigo XL CNG Quality
Matrix VLO
3. Nano ICR
4. ICR 1011 Carplant
5. ICR Xets Carplant
6. CAE Issue Tracker
7. M8D D8, M8D PTC
8. M8D 8GI, M8D M8C
Fig. 4.2-13
Ace
Apr 05
Mar 05
Project Migration in PLM
Hi Deck
Bus
Apr 06
Mar 06
New
Indica
Oct 06
Small
Car
Jun 06
Jun 06
World
Truck
May 06
Sep 06
Dicor
Eng
May 06
New
LCV
Jan 07
Dec 06
APL live in PLM for ACE

and Small Car Nov 06
Aggregate Aggregate
TPLs
TPLs
Apt 07
Jun 07
Mar 07
Indicruz
Mar 07
From 2008 to 2011 all projects migrated to PLM
42
Jun 07
New
LCV
Carry
over
May 07
Phoenix
Sep 07
Sep 07
Auto Cluster server made

operational
Nov 07
Jan 08
New
Indica
Engine
Aug 07
Hinjewadi Clustermade
fully operational
ERC groups moves to
Hinjewadi Nov 07
Mar 08
Xenon
Mar 08
PCBU Planning
Live in PLM
TATA MOTORS
5 WORKFORCE FOCUS
Tata Motors Hospital, Jamshedpur secured the 3rd Position at the 11th National Supervisory Skills
Competition, organized by Confederation of Indian Industry, eastern region
Jamshedpur plant bagged the First Prize at the NITIE Lakshya 2011 - 'On the job achievers contest', in the
Operations Management module
Pantnagar plant has bagged 07 awards in the 13th Indian National Suggestion Summit Schemes' Association
(INSSAN)
Pantnagar plant was adjudged to be in 5 Star (highest) category, in its Safety & Health Management Systems,
by British Safety Council, UK
Pantnagar plant was conferred upon with the Sword of Honor Award by British Safety Council, UK
Pantnagar plant has been conferred with the prestigious 'Safety Innovation Award 2011' at the 8th Safety
Convention of the Institution of Engineers (India), held in New Delhi
The Sanand plant has won 10 awards at the Annual Regional Convention 2011, organised by INSSAN (Indian
National Suggestion Schemes' Association), held in New Delhi
Sanand plant receives the 'Golden Peacock HR Excellence Award-2011
Tata Marcopolo Motors Ltd has been honored with Unnatha Suraksha Puraskara for Best Safety Performance
in the category of Manufacture/Assembly of Transport Machinery, Motor Vehicle & Construction Machinery,
awarded by National Safety Council, Karnataka Chapter at Safety Awards - 2011
Kalasagar, the performing arts and cultural wing of Tata Motors Pune, has won the 1st prize (Best Diwali Issue)
for its Diwali issue of 2011, in the competition held by Sukhkarta Sanskrutik Pratishthan (Pune)
5.
WORKFORCE FOCUS
The verticals of 'Performance & Rewards', 'Talent Management',
'Learning & Development', 'Employee Engagement' and 'Talent
Acquisition' are being replicated in business units in a matrix
environment . This gives the benefits of integration and expertise
and enables execution of Human Capital Strategy. The verticals
improvise and institutionalize processes and execute the same with
the support of Location HR. HR Processes and Practices have
continued to evolve in line with the changing business realities to
secure the delight of end-customer (Fig. 5.0-03). Given the entry of
many international players in the Indian automobile space,
customer-centricity has become the biggest differentiator. There is a
surge to collaborate along the HR verticals to build a highly engaged
organisation.
5.0 Workforce Focus

HR function establishes its objectives from the overall TML Strategy
(OP-21 and 2.2.a4 response). The Human Capital Strategy is
designed around TML's Vision for CVBU - 'Double revenues by 2015
and maintain market dominant position' and PCBU - 'Be a
formidable No.2 by 2015 in domestic market'. The three planks of HR
Strategy Talent & Leadership', 'Organisational Renewal' and
'Organisational Enablers' are aimed at building sustained customer
delight and business are performance.
Fig. 5.0-01
Human Capital Strategy

Sustained Customer
Delight and Business
Performance (OP2.b)
Fig. 5.0-03
Talent &
Leadership
Organizational
Renewal
Organizational
Enablers
Enabling
Business
Growth
(OP 2.b)
Strategic Talent
Management and
Leadership
development
(HRP/5.2.c.1/3)
Customer-centic
Organization
Re-Design
High
Engagement
Culture
(HRC/5.2.a.1)
Performance and rewards

management to inculcate
Meritocracy and
High-Performance Culture
(HRF/HRP/5.1.a/b.2, & 5.2.a.3)
Evolution of HR Systems and Processes
Learning and
Capacity
Development
(HRP5.2.c.1/2)
Seamless
Integration
Reinforce
One TATA Motors
Culture
(HRC/5.2.a1/2)
People to be Driver of Results

OP 1.a.3
Powerful
Employer
Brand
(HRP/5.1.a.2)
Maturity of
HR
Systems
and
Process
Simple and
IT Enabled People
Processes
Enabling
Organization
Development
(OP 2.b)
HRF/HRP/HRC refer to Financial, Process & Customer

Perspectives of HR BSC and each of the strategic objectives are
mapped to corresponding category responses.
The nimble organizational structures are designed around customer
requirements and drive business performance through clear
accountabilities (Fig. 5.0-01). The structure is supported by powerful
enablers on building a high performance work system through
performance coaching and performance differentiation. There is a
focus on technological enablement and high employee engagement
to build a powerful "One Tata Motors Culture" through
standardization and integration of HR practices. As part of
organization renewal initiatives for organization redesign, role
clarification and decision rights have been launched. Additionally,
projects to ensure simplified and IT enabled people processes such
as online travel claims, leave approval, suggestions management
have been kick started. The Integrated HR Planning and Execution
Structure (Fig. 5.0-02) ensure effective delivery of HR services
across locations.
All process
revisited
against the
global
benchmarks
and improved
Strengthening
of verticals
and
horizontals to
take HR
management
to next higher
level
2008-09
2009-10
Restructuring
and
revamping
the HR
strategy
and
roadmap to
enhance
sustained
customer
delight and
business
performance
Creation of
matrix
structure for
HR,
organization,
implementation
of new
Performance
and Rewards
system and
increasing
thrust on
employee
learning and
engagement
to built global
competencies
2010-11
2011-12
5.1 Workforce Environment

5.1.a Workforce Capability & Capacity
5.1.a.1 Capability & Capacity
To keep the business aligned and integrated, TML identifies the
necessary capabilities and characteristics needed by workforce,
both existing and potential through inputs provided to SPS (Fig. 2.102), HR Planning Activities (Fig. 2.2-04) and Learning Advisory
Councils (Ref. 5.2.c.1). Manpower Planning Process (MPP)
(Fig.5.1-01) is for mapping of Workforce Capacity and Capability
needs, which includes critical skills, job requirements and staffing
levels. Based on volume requirements, Plants and Functional
Heads make their yearly resource plans which are discussed with
HR//PSD/Manpower Planning teams for the assessment of total
workforce capability and capacity for each area of operation. These
requirements are then factored into ST and LT HR Plans. Industry
benchmarks and internal benchmarks are compared with the
workload derived (e.g. Standard Man Hours (SMH) per man)
Fig. 5.0-02
Integrated HR Planning and Execution Structure
existing skills and competency database and HR plans are updated.
HR Structure & Participants
Roles
Org. Loc.
With this training, re-training, redeployment or phased movement of
Framework
A I A I
workforce is planned e.g. resource requirements for the new lines
Review and Approval
are worked out, experienced workforce is redeployed and some
Management
of all major HR
?workforce is sourced based on the requirements of skills and
Ref Fig 1.1-09
Committee
Systems and
?
competencies. Based on this, positioning or redeployment of
Processes
manpower is done and/or additional manpower for skill sets and
Head HR, Loc.
numbers is sourced. MPP gets revisited every year and changes
HR Steering
Prepare and review HR
?
?
?
HR/IR Heads, HR
are built in during Mid-Term Review (MTR). Workforce productivity is
Committee
Plans and Processes
Vertical Heads
measured through various metrics such as value added per unit
Location HR
wage bill and equivalent vehicles per person per year or Actual manLocation HR
Heads and
Execution of HR Plans
?
?
hours (Fig. 7.3-7).
Structure
Location HR
and Processes
5.1.a.2 New Workforce Members
Teams
Recruit, Hire, Place and Retain New Members
Standardize/customize,
HR Members from
?
?
?
?
CFTs
improve/change
As an equal opportunity employer, fair work practices are built into
locations
systems
Talent Acquisition (TA) process (Fig. 5.1-01).
Org: Organisational, Loc: Locational, A: Alignment and I: Integration
43
TATA MOTORS
Fig. 5.1-01
Manpower Planning and Talent Acquisition Process

Receive Plant wise yearly
Production, Sales
and Outsourcing
plans form
Business Planning
Business
Strategy
Approval
of
wage bill
by Mancom
Plant PSD and Location HR assess workforce capability and

capacity considering new start ups, no. of shifts required,
also taking stock of skill matrix, productivity indicators
like HPV, Eq. Veh/person/year etc.
Preparation of Wage bill by

Corporate HR incorporating
the projected manpower and
other salary assumptions
Communication of
approved budget (manpower
and costs) to all PSDs and
Commercial HR by
Corporate HR
Collation and Validation of

requirement centrally by
Corporate HR along with
Location HR/PSDs
Workout granular
details around
job description/
specification
At half year a Mid Term review (MTR) of

wage bill and manpower requirement
is done jointly by Plant PSDS,
Commercial and Corporate HR based on
fresh volume projections
Fig. 5.1-03
Workout Source
of Hiring
Including Internal
and External
Plant PSDs validate the

manpower requirement
every month for resp.
plants. based on monthly
production plans
Team structures/CFTs/SDTs,
Suggestion Scheme, Innovision, Job
Rotations & IJPs, Systematic
employee movement within
domestic and international business,
Parivartan, Gallup survey, FGDs
and online mechanisms
Plants PSDs, Location HR

then workout the manpower
requirement for Plants and
Commercial HR for
commercial functions
Implement hiring process

from CV short listing,
Prelim/Final Interview, Offer
Making and Negotiation
Fig. 5.1-04
Sources of Hiring Talent
Tata Motors Schemes
Tata Group Sources
TAS Officers, HRDP

Managers, Group CA
Trainees, Tata Group
Career Opportunities
(tataworld.com),
Second Career
Internship Program
(SCIP), International
Internship Program
Managerial Workforce: IJP; ERP; Cadre

Recruitment Processes: PGT, GET, OT
schemes; DET; Lateral Hiring and
Project Based Deployment.
Non - Management Workforce:
Technical Trainee Scheme and
pool of FTAs / TMSTs
Talent intake at entry level is through hiring from premier

engineering and management institutes for the managerial cadre
and through technical trainee schemes for the operatives. Cadre
recruitment process selects talent and grooms them with a view to
developing 'Future Managers' in line with the strategic objectives of
the organisation. The intake process is established and continuous
efforts are made towards brand building at premium campuses.
Initiatives such as summer internships, case study competitions,
sponsorship of technical and cultural events, guest lectures are
some of the efforts to become the Employer of Choice which is
tracked through annual A C Nielsen Campus Track Study
(Fig. 7.3-13).
TML is ranked seventh among Top 15 Companies visiting Top 25
Business Schools (Source: Outlook-MDRA ranking 2011). It hires
PG students with specializations in HR, S&M, Operations, Safety
and other functions. Further, fresh talent with PG in Economics,
Psychology, Commerce and Statistics is recruited through the OT
Scheme. The Cadre recruits undergo a 6-12 month on the job
training period with various rotational assignments. These
assignments may be cross functional and are chosen to give them
exposure across locations and business units. Post training, the
trainees are placed in functional areas based on their performance
reviews and overall organizational needs. IJPs enable movement of
employees across functions and business units ensuring transfer of
knowledge and learning within the organization. Systematic
approaches ensure capitalisation of diverse ideas (Fig. 5.1-03). A
transparent hiring and induction program, employee-friendly
policies and benefits, motivational schemes, grievance redressal,
informal mentoring and other such initiatives help in employees'
assimilation/retention. IB resource requirements are addressed by
selecting candidates from the domestic talent pool who are then
provided culture and language trainings to prepare them for
international assignments.
TATA MOTORS
Special task force formed by Pune HR

team to support hiring when setting up
Dharwad plant; Innovation:: Driverless
Chassis Dynamometer, Noise
Pollution Control using in - house
developed KBE Application
Evolution and Improvement of Talent Acquisition Process: TA

team constantly endeavours to improve recruitment efficiency
(Fig. 5.1-04). To explore an alternate channel for sourcing talent
Employee Referral Program "Friend++" was revamped. It has also
established IJP Policy "Opportunities++" where internal job
openings are posted on intranet and employees get preference in
taking up challenging roles in the organisation.
Offer Acceptance,
Medical fitness,
On boarding
and Background
Verifications
It ensures that the recruitment catchment area is spread across the

country which ensures diversity in ideas, culture, experience and
approaches. For specific projects, employees across locations,
functions and cultures form CFTs and work on critical assignments.
To build in diversity in the workforce through recruitment, multiple
sourcing channels are used as outlined in table below (Fig. 5.1-02)
Fig. 5.1-02
Capitalising Diverse Ideas
Processes to capitalize on diverse Examples of ideas captured and

ideas and thinking
implemented
From Employees
E & I in Talent Acquisition Process
Area
Trigger
Freeze on Slow Down
Talent
Acquisition
Year
08-09
Cadre
Towards One
Employees Tata Motors
Culture
09-10
Talent
Enable
Acquisition Continuous
Process
Improvement
11-12
Improvement & Innovation done

External recruitment process frozen.
Workforce from manufacturing
locations trained and deployed on short
term sales assignments. e.g. Panther
Project
Internal and External Studies carried
out for GET program. Programs
standardised across locations and
deployed.
Change in Notice Period to align with
external talent market; Launched
ERP; Re-articulated Compensation
Philosophy and changes in
compensation structure; Launched
Applicant Tracking System and Online
Onboarding System Project to provide
consistent experience for all new
hires; Leverage technology (VC) to
reduce cost of hire.
5.1.a.3 Work Accomplishment:

Manage & Organise Workforce to Accomplish
Individual work and performance objectives of the workforce are
directly linked to business objectives to be accomplished at the
highest level (Ref. response to 2.1.b.1). The systematic
BSC/SQDCME/ VMCDRE/PACT cascade (Fig. 5.2-03) breaks the
work down to individual action plans/objectives. Each work unit is
staffed based on a process (Fig. 5.1-01) which assesses the amount
of work, layout, production rate and space required.
TML addresses factors of 'managing and organising the workforce to
accomplish' desired work in a systematic way (Fig. 5.1-05).
Accomplish the work of the organization: Work system structure
(Fig. 6.1-01) determines work content, volumes and quality
specifications. With this, capability and capacity requirements are
matched to the cascade of goals (Fig. 4.1-01) during deployment.
5.1.a.4 Workforce Change Management
TML prepares its workforce for changing capability and capacity
needs through continuous review and course correction. Review
and Improvement processes (Fig. 2.1-01, Fig. 1.1-09, OP-19,
Response to 5.2.c) enable to anticipate and capture changes in the
external market and their implications on the business and
organization strategy (Fig. 5.1-06). It prepares workforce for
changing capability through training and education, with the aim of
enhancing their knowledge, skills and abilities and investing in their
44
continuous development to meet the demands posed by changes in

the external environment. Manpower planning process (Fig. 5.1-01)
is used to prepare for and manage changing workforce capacity
requirements based on market demand and fluctuating volumes.
Fig. 5.1-05
Organize and
manage
workforce to:
Methods to Manage and Organise Work
Approach
Deployment
Capitalise on
Core
Competencies
Matrix structure;
CFTs/SDTs ;
Knowledge/best
practise sharing;
Process and
systems cascade
Systems and processes linked to the

overall business output (Fig. 6.1-02).,
e.g. In plants, team members are
aligned to business targets of
SQDCME, through SDT, and on
monthly basis make business gap
presentation to senior management.
Innovations linked to the strategic
advantages (Figs. OP-21, 2.1-04, 05),
e.g. rewarding low lifecycle cost
innovations such as Ace & Magic, dual
reporting to business & corporate
functions, international deployment
of talent for Greenfield projects.
Reinforce
Customer and
Business Focus
SPS, strategy
cascade and
implementation,
customer
feedback,
midyear reviews
and course
correction (Fig.
1.1-09), LACs
(Ref 5.2.c.1) and
exposure to sales
environment.
(Fig. 2.1-01) Customer and business

focussed objectives get cascaded to
individual work plans. Course correction
is done through MTRs, feedback/
performance coaching for managers
and sun rise meetings for operatives.
Managers and Senior Leaders are
assessed and held accountable for
results based on metrics that focus on
enhancing customer satisfaction
(Fig 2.2-05, 07 & 08) and achieving
business objectives. Skill gaps or
capability requirements reinforce
customer focus identified through LAC
considering the inputs received from
customers by the business.
Address
Strategic
Challenge and
Exceed
Performance
expectations
Rigorous strategy
planning (SPS),
BSC approach,
SQDCME/VMCD
RE and PACT
cascade,
Performance Pay
Each strategic challenge is identified

and then interpreted as wide range of
strategic initiatives through SPS (Fig.
2.1-01), action plans to address
challenges are developed and cascaded
through BSC/PACT. (Fig. 1.1-01) for review
structure. BSC cascade and individual
performance linked goal setting, coaching
and midterm review/feedback through
PACT. Ratings and compensation based
on performance achieved vs. goals
Fig. 5.1-06
Preparing for Changing Capability and Capacity Needs
Area Managed:
Workforce Needs
Organization need
for continuity
Org. need to
prevent and
minimize impact of
workforce
reductions
Prepare and
manage periods of
workforce growth
5.1b. Workforce Climate

5.1b.1 Workplace Environment
To ensure health accessibility, TML has medical centres across all
plant locations and external tie-ups with hospitals at both plant and
non-plant locations. It complies with statutory requirements such as
bi-annual health check-ups for employees working in hazardous
areas. Workplace assessments by external agencies and OHSAS
18001 certification result in proactive action such as preventive
health check-ups and awareness programs. It also customizes
medical support provided based on different workplace
environments/workforce segments such as audiometry for
employees working in high noise areas, lady doctors for female
employees and so on.
Security department ensures protection of company property and
personnel through patrolling, gate manning, installation of CCTV
cameras for surveillance and so on. It has laid down security
procedures such as gate check-in check-out, vigilance, investigation
of security incidents and complies with all statutory requirements. It
also proactively undertakes preventive initiatives such as mock
drills, surprise checks and education on security policies and
procedures.
Employees participate through initiatives such as Kaizen, 5S and
Suggestion Schemes in improving the health and security related
processes. Performance measures and improvement goals on
workplace health and security can be presented during site visit.
In an effort towards continuously improving and ensuring high safety
standards, this year TML has engaged with M/s DuPont for a 3
year period in CVBU plants and with British Safety Council for PCBU
plants.
The engagement was preceded by Safety Assessment/ Diagnostic
of the As-Is situation which involved: a) Safety Perception Survey
b) one on one interviews with the leadership at various locations and
c) Site visits by DuPont team. The Objective is achievement of safety
excellence and transformation of safety culture in a compressed
time frame. The current status of engagement is as under:
1. EGs at all the locations have been trained on 'Leading Safety
Efforts' and Safety Professionals have been trained on 'Safe Pro'
tailor made for them.
2. Corporate sub-committees are formed to facilitate key initiatives
on safety. SHE Council meets monthly where Senior Leadership
reviews progress and quarterly updates are shared with the
MANCOM.
3. The 5 point approach followed: 1.Safety Observation,
2.Standards & Procedures, 3.Training & Capability Building,
4.Incident Investigation and 5.Contractor Safety Management.
4. Skills' building in Safety observation process and Incident
investigation has been done rigorously through training,
coaching and hand holding.
5. Ten key standards and procedures have been identified on
priority which would be common across all plants.
6. Driving Safety initiative under i-drive safe encompasses DDT
(Defensive Driving Training). This classroom training is followed
by on the road practical assessment and the driver is classified
under high risk, medium risk and low/no risk.
Office and Establishments Safety: There is also a focus on
enhancing safety standards across offices, warehouses, dealers,
TSS, FBV and RSO. The safety norms for dealers, warehouses and
offices are developed, safety audits are conducted and safety
committees are formed in some of these establishments. Office
Safety Auditing Procedure and checklist made for TML has been
adopted by the entire Tata Group through the Tata Group Safety
Steering Committee. Capability building on audit requirements has
been conducted through TQMS.
Approaches & processes for preparing the

workforce for changing needs in:
Capability
Capacity
TNI, IRC/JDC Meetings;
Manpower
CFTs/SDTs; Job Rotations
assessment
and Manpower
Training & Development ;
planning,
Succession Planning/Talent
Rightsizing;
Pipeline; Knowledge Management.
Recruitment of
Use of flexible workforce,
Temps; Job
outsourcing, redeployment to other
Rotations,
lines/locations, cross trade
Redeployments
training/multi skilling.
CFTs; Training
The increased volume requirements and
are met by pool of skilled temporary Development.
workforce.
45
TATA MOTORS
Safety communication and branding has been implemented to

promote a culture of safety in office. A number of initiatives and
proactive steps have been taken to increase safety awareness and
seek employee participation such as Chemical Safety, Disaster
Management National Safety Week Celebrations and so on. LOTO
implementation has been done for all plants to ensure safety during
maintenance. For PCBU plants, Safety Score cards have been
implemented for monitoring and reviewing safety parameters.
Contractor Safety Management has been strengthened through
monthly reviews, tool box talks and reduction in accidents.
PCBU Pune has developed in-house HIRA software for
standardizing HIRAs and minimizing perception errors. This year
Pantnagar plant won the prestigious "Sword of Honour" for adopting
best in class safety standards. Ref. Cat 7.3 for performance
measures and improvement goals on workplace environment. (E.g.
British Safety Council Health and Safety Management Audit
results)
5.1.b.2 Workforce Policies & Benefits
People Policies and Practices are being reviewed (Fig. 5.1-07) to put
in place policies and benefits that are in line with changing workforce
demographics, progressive, best in class, employee friendly as well
as ensure long term viability for the organisation. The current policy
revision focuses on the employee groups in the EG, TM and
Supervisory segment. This year Perquisite Car, Mobile and
International Assignments Handbook for international business
were revised.
The policies and benefits for Operatives will be reviewed
subsequently. 'Parivartan', a listening post to engage with
employees on the entire gamut of people policies and practices
segment is an effort to make policy design a participative and
inclusive process. Policies are being designed to support different
workforce segments and help addressing different requirements.
Participative wage settlement and negotiation process with union
captures diverse needs of non-management workforce at various
locations and helps improve services and benefits. Crche facility
and superannuation allowance are a few examples of policies
catering to the needs of different workforce segments.
Fig. 5.1-07
Capture
employee
feedback and
concerns
through
PARIVARTAN,
Gallup Survey
and location
HR teams
questionnaire. This survey is done annually for all management

employees and on sample basis for non-management employees.
A separate survey is administered to the sample population of the
flexible workforce by the IR team to gauge their satisfaction levels.
Analysis as shown in (Fig. 5.2-01) Step 4 done on the results
received helps determine the key factors that affect employee
satisfaction (Ref. response to 5.2b.1). Based on Gallup Q12 action
plans are put in place at three levels - Organization, Business Units
and Line Manager Level - to enable workforce engagement.
Fig. 5.2-01
1
6
Organization, Line
managers, HR,
Feedback Loop,
Process champions
Questionnaire Development:
Separate questionnaire for the

management and the
non-management in 2 and 4
languages respectively
Reviewed at 5 Levels:
Results Communication and

Impact Planning:
Survey Result roll out and
use of Gallup online tool for
action planning at 3 levels :
Organizational, Business unit
and Line Managers
Data Collection:
100% managerial and
10% Non-managerial
identified through random
sampling
Determine the key

factors that affect
results:
Determine what are
the needs of the key
groups
Analysis:
Understand correlation
Organizational, and
Business unit, Location,
Grade, Divisional level
analysis on Managers
Score card, Management
and Non-Management
Update the
Questionnaire
5.2a.2 Organisational Culture

The Organisational Leadership System (Fig. 1.1-01) and matrix
reporting relationships drive and foster an organisational culture that
is characterised by open and two-way communication, high
performance and an engaged workforce with the help of various
methods, approaches and processes (Fig. 5.2-02) that ensures
empowerment, alignment and integration.
The strategic direction and goals are determined at MD's level and
are cascaded through BSC and PACT. Review mechanisms (Fig.
1.1-09) are in place to monitor the same.
The culture benefits from the diverse ideas, backgrounds, and
thinking of our diverse workforce (Fig. 5.1-03).
Fig. 5.2-02
Fostering an Organisation Culture Characterised by
Open door policy; Town hall meetings; Chairmans Address;

Open
Internal newsletters/magazines and Corporate
Communication Communication; mytatamotors - intranet; Knowme skip levels, Parivartan and FGDs
BSC cascade sessions; performance linked pay, rewards
and promotion; identification of top talent; executive
selection scheme/FTSS; Individual goal setting through
High
PACT and relative grading/normalisation exercise:
CFTs/SDTs and special programs such as to achieve
Performance
operational excellence, PCBU plant shave embarked on a
journey of TQM there by developing problem solving attitude
and making it an organizational DNA
Design
policies in
discussion
with HR
leadership,
Business HR
teams and
subsequently
validate with
business
leaders,
Mancom
members
Engaged
Workforce
5.2 Workforce Engagement

5.2a Workforce Performance
5.2a.1 Elements of Engagement
Gallup Q12 and enterprise level surveys, FGDs and skip

levels to identify opportunity areas, action planning and
implementation of engagement initiatives, performance
feedback, coaching and mentoring, job rotations, learning
and development opportunities, multiskilling, faster career
progressions and other such mechanisms are utilized to
better engage the workforce.
5.2.a.3 Performance Management

Gallup survey analysis suggested that employees wanted a change
in the existing PMS. To address the need for change, a modified
PMS framework and the revamped system - Performance
Assessment and Coaching Tool (PACT, Fig. 5.2-03) was introduced
this year, which is applicable to all full time employees from
supervisory grade onwards. PACT communication has been
completed across business units and locations explaining the shift in
philosophy and the process details on handling various aspects of
the PMS.
12
Gallup Q tool, an employee perception survey, has been adapted

to measure employee engagement across all employee groups
including the enterprise level factors affecting employee
engagement, satisfaction & morale.
Employee feedback on various parameters which emerge through
the discovery phase of the engagement survey, exit interviews
analysis and focus group meetings help review and revise the
TATA MOTORS
Discovery Phase:
Structured interview
with key stakeholders
and high Performance
Policy Review Process

External
Benchmarking
of benefits
and policies
(with representative
companies,
including
Automobile
companies ,
TATA group
companies
and
companies
from other
sectors)
Engagement Process for Management & Operatives
46
capability development (Fig. 5.2-04) will create a healthy

performance spiral which will support high performance culture and
work force engagement. Non-management employees are
assessed on SQDCME parameters as per Performance linked
benefit/Promotion scheme.
High performance in plants is sustained through performance based
payment system and SDT formation, which takes into account
performances on SQDCME parameters whereas for commercial
functions VMCDRE index forms the basis for performance linked
payment. Team performance at team member level is managed
through monthly SDT audits and subsequent review of top teams by
Senior Management. PACT's effectiveness is measured by
employee feedback through various two way forums such as IRC /
JDC, skip level meetings, Gallup and Dip stick surveys.
Employee Rewards - The workforce performance management
system is directly linked with compensation related decisions such
as increments and performance pay. TML follows an annual salary
revision cycle and outputs from PACT such as individual ratings,
company performance and promotion recommendations are used to
decide the employee salary revisions.
Annual surveys provide information on industry trends and company
positioning with the competition. The data, along with business
performance during the year, are used to decide on the increments.
The performance pay plan is designed to differentiate in payout
based on the performance. It is driven by both individual and
corporate performance. The corporate factor of performance pay is
higher for higher work levels, reflecting the increased responsibility
for business results.
Organization level BSC is cascaded into various BU Scorecards

and then into individual goals through PACT. Individual goals are
further classified into strategic, tactical and individual to ensure
balance and alignment of organization, department and
individual objectives. This SMART goal setting process aligns
individuals to the strategic objectives of the organization thereby
reinforcing customer and business focus. Additionally, over the
last two years competitions like "Imagineering", "Innovision",
"Innovista" and "Innomatix" have been conducted to promote risk
taking for innovations. Innovation is also formally fostered through
appropriate MPA as part of individual goal setting to address
business requirements.
Objective of PACT is to enable setting of performance standards
and goals for the employee, clearly communicating performance
expectations, support employee in accomplishing goals by
maintaining dialogue between employee and appraiser, ensuring
that the employee's performance is on track by assessing
performance formally at mid-year and end of year, identifying
top talent as well as employees whose contribution needs
improvement, linking the rewards received by employees to their
performance and identifying training needs of employees.
The table below outlines the PACT process and timelines:
(Fig. 5.2-03)
Fig. 5.2-03
PACT Process Flow
Planning Performance
Develop BU
Scorecard
Cascade BSC to
Department
level
Set Individual
Goals
Conduct Midterm Review
1st Feb to 1st Mar
1st Mar to 15th Mar
15th Mar to 30th Apr
1st Oct to 30th Nov
Share Rating
and Feedback
Normalize
Ratings
Conduct
Clarificatory
Discussions
15th May to 30th Jun
30th Apr to 15th May
15th Mar to 30th Apr
Fig. 5.2-04
Q12, Employee
Forum
Linkage of PACT with other HR processes
PACT
Training, Talent
Management/
Promotions,
Rewards
5.2b Assessment of Workforce Engagement

5.2b.1 Assessment of Engagement
The Organization assesses (Fig. 5.2-01) workforce engagement by
way of structured surveys administered to the different workforce
groups and segments.
Various formal & informal methods are used to determine key factors
affecting employee engagement & satisfaction (Fig. 5.2-06).
It describes various qualitative and quantitative methods used to
capture feedback of diverse workforce & segments that enables HR
and Senior Leadership to identify critical issues which are consistent
across employees.
Additionally, with the objective of reinforcing 'One Tata Motors
Culture', VConnect - Tata Motors Employee Engagement Initiative
has been launched (Fig. 5.2-05). VConnect encompasses both
elements of 'Fun at work' and Q12 action planning to drive
engagement. This year also saw the launch of ONE thematic
engagement calendar across locations, Gallup online tool for action
Assessing Performance
PACT as a philosophy encourages managers to provide continuous

and timely feedback to employees on performance and behavioral
dimensions; the intent is not only to review past performance but
also to provide coaching to enable and sustain high performance by
removing road blocks. Employees are rated on a 4 point
behaviourally anchored rating scale - Exceptional Contribution,
Strong Contribution, Satisfactory Contribution and Contribution
Needs Improvement: (CNI). PACT has introduced the concept of PIP
(Performance Improvement Process) at the BU/ Function level for
CNI cases. In the event that after providing all support (via PIP) for a
period of 6 months, the CNI population does not come up the curve;
the management may take a performance outplacement decision.
Post ratings, normalization by an independent PAC ensures fair
discussion and assessment of talent in an unbiased manner. This
process has yielded good dividends as a result of which number of
appraisal grievances came down substantially last year, thus, we
have moved away from appraiser centric decisions and towards
creating a high performance work culture through PACT. PACT
process has major linkages with other HR systems as shown below:
PACT ratings also have an important bearing on career growth of all
employees. Variable pay component is based on individual and
company performance. Increments are also a function of the
employee's rating.
The multi pronged approach of early talent identification, coaching,
mentoring, clear goal setting coupled with robust PACT process
steps (Fig. 5.2-03) and strong inter linkages with rewards and
Fig. 5.2-05
Enhancement in the Engagement Process
2007-08 - Increased survey participation rate through a blended survey

administration method, extensive communication of Employee Engagement
Survey to specific teams, employee involvement in action planning, Train the
Manager Workshop, Review of Action Planning across locations
2009-10 - On-line survey and presentations across all locations for reviews. Train
the trainer for process champions
2010-11 - Instructional design programme for train-the-trainers
2011-12 - Gallup online tool launched - An interactive platform that provides local
teams and leaders with a suite of tools that drive action, accountability and
sustainability.
47
TATA MOTORS
planning & Engagement scores becoming part of Leadership BSC.

5.2b.2 Correlation with Business Results
Contrary to the classical thinking on Employee Engagement, Tata
Motors believes it to be a perceived state of an employee's mind of
what and how it makes him/her feel at Tata Motors. It therefore does
not have a mathematical formula or statistical relationship to prove
its co-relation with Business results. Various employee engagement
programs/ interventions under the flagship brand VConnect, the
Tata Motors Employee Engagement initiative are a step in the
direction to create positive impact on employee morale thereby
fuelling productivity & sustaining business in the markets we operate
in and wish to grow our footprints as a strategic intent.
Fig. 5.2-06
capturing needs, designing and deploying learning programs in

domain. CoEs are structured to focus on building functional and
technical capabilities (Manufacturing Excellence & Innovation,
Operator Training, Dealer Training, Commercial and Corporate
CoE) and behavioural capabilities (Global Leadership and
Management CoE) (Fig. 5.2-08).
Tata Motors Academy is a defined structure that has enabled to
Fig. 5.2-08
Learning Centres of Excellence

Functional and Technical Capabilities
(Manufacturing Excellence and Innovation, Operator
Training, Commercial, Dealer and Corporate Learning)
Formal & Informal Assessment Methods
Management Workforce
Processes
Application of outcomes
To identify thrust area and use findings to
Q12 Gallup align and prepare action plans at three levels
Dipstick
Survey
To identify progress on survey results

communication and action planning
Learning Support Services

(Continuing Education, Learning Technologies, Instruction Design, Performance
Consulting and Organization Development Learning Infrastructure and Communication)
Index
Scores and
qualitative inputs
on Process
improvements
Strategic Learning Partners

(TMTC, B-Schools/Universities, Training Consultants and other Partners)
balance focus on various forms of capability development. Different

verticals ensure that the learning agenda is aligned with the
business objectives and functional strategies. Currently, TMA
intends to direct 60% focus on technical and functional capability
development and balance on leadership and managerial skills
development (Fig. 5.2-09).
5.2c.2 Effectiveness of training: is evaluated through CIRO
Capture satisfaction, motivation and retention

related inputs to improve processes Exit Analysis
action by Line HR
Process
Feedback on people policies and
improvements &
practices
Policy changes
Exit
Interviews
Parivartan
New Hire
Feedback
Feedback on Recruitment, Joining

experience and Engagement
Q12 Gallup
IRC / JDC
Interactions
Non-Management Workforce
To identify thrust areas and use
findings to align and prepare action
plans.
Track and resolve issues around
absenteeism, grievances, safety, and
health and productivity. Actions by the
IR team.
Process
improvements
Fig. 5.2-09
Q12 ndex
No. of issues &
grievance
resolution
Get participants
feedback for all
programmes
Within 3 months send

feedback Form to supervisor of
participant for identified
key programmes
CIRO 2
score is less
than
threshold
No
CIRO 1
score is
less than
threshold
The Functional/BU councils ensure alignment between the

directions set by the apex council and what happens at the
operational level.
No
Continue the
programme
Yes
Review programme
design, content &
faculty
Use the data to:

l
Improve training
coordination
l
Modify the
programme/faculty
l
Future
programmes
Yes
Implementation of strategy in location is carried

forward by location councils.
Operative training involves preparing the workforce to meet

changing business requirements through knowledge, skills and
behaviour-based programs. Operatives are trained in
apprenticeship schools, as well as on-the-job by the managers.
Location Technical Training set-up caters to all the training
requirements falling in its area, e.g. Jamshedpur, Pune and Lucknow
plants provide NCVT training for potential operatives.
3 tiered structure of LAC
L&D system addresses the various segments of workforce through a

systematic approach with inputs flowing from the LACs. The Tata
Motors Academy (TMA) has been created with different verticals for
covering diverse needs of different categories of employees and
functions. L&D is structured into CoEs. CoEs are instrumental in
TATA MOTORS
Individual learning needs

identified through PACT
CIRO Feedback Process
Fig. 5.2-10
Setting broad level directions for learning in line with the

Apex vision of the organisation
council
Location council
Functional/Technical
learning needs identified
by Functional Heads and
validated by LACs
model. CIRO-II measures participant's as well as superior's

feedback on the outcome of the training against the program's
objectives. It focuses on transfer of knowledge/skills at the
workplace by the participants as endorsed by their superior.
Efficiency: CIRO-I measures efficiency of the training program
delivered, gathered as feedback from the participants immediately
post training completion. It focuses on pre-programme information,
learning environment and faculty evaluation. Corrective actions are
initiated based on the CIRO feedback (Fig. 5.2-10) received leading
to improvements in the programs. (Ref. Fig 7.3-40 to 48 for L&D
efficiency and effectiveness measures).
Learning Advisory Council (LAC) Structure
BU/Function
at council
Learning Needs Identification Sources
Business capability building

needs identified by LAC
5.2c Workforce And Leader Development

5.2c.1 Learning And Development System
Workforce and Leader Development Processes focus on identifying
knowledge and skill gaps (Fig. 5.2-08) and preparing employees for
the changes in external environment to meet organization's strategic
objectives. The processes of workforce development are closely
aligned with learning governance body called Learning Advisory
Council (LAC) (Fig. 5.2-07). LACs ensure alignment of learning to
business and functional strategic objectives by involving all
stakeholders and capturing their requirements. Three key roles of
LACs are designing, implementing and reviewing learning efforts.
Fig. 5.2-07
Behavioural Capabilities
(Global Leadership and
Management Learning)
Cross Functional Programs and Processes

(Project Management, Conflict Resolution, Innovation and Working in Teams)
Measures
Q12
Tata Motors Academy (TMA)
48
selection process is in place to support it (Fig 5.2-11) Employees

from talent pool are handpicked for specific assignments and new
projects such as for IB operations employees from talent pool or with
the relevant domestic experience are given priority. ESS provides
career progression opportunities in general management.
Other schemes such as TSS, CMS and OMS provide faster career
progression in the specific functional area. Employees are also
encouraged to apply to group level TAS scheme. The MAC and DC
process assess and hone skills of employees to be a part of the
talent pool. Careers of Officer level employees are managed through
PACT and Internal Officer Trainee Scheme. Career progression
opportunities are available to Non-Management employees on
gaining respective educational qualifications and skills (Fig. 5.2-12).
The technical training set-ups have been consistently rated as the

'Best Training Establishment' in the country. The prime objective is to
develop, sustain and continuously upgrade the workforce to keep
pace with enhanced customer needs and expectations, increased
competition, ever-changing technology and stringent legislative
provisions.
5.2c.3 Career Progression
Different approaches are followed to manage careers of
management and non-management employees. Management
employees are given the opportunity to apply through internal
careers within Tata Motors and also at the Tata Group level.
Employees get the opportunity to move to higher levels through
voluntary and non voluntary mechanisms. A fair and transparent
Parameters
Core competencies,
strategic challenges,
and accomplishment
of ST and LT action
plans
Organisational
Performance
Improvement and
Innovation
Ethics and ethical

business practices
Customer Focus
Executive (TM/EG)
e.g. Fast track selection, Technical
specialist, Talent management,
Development centres
Managerial
Cadre
Officer
e.g. Internal Graduate trainee
engineer, officer trainee scheme,
Master Craftsman, Mechatronics
Officer
Bargainable
e.g. SVCVP scheme,
Master Craftsman,
Mechatronics scheme
Officer to Managerial
Cadre scheme
Bargainable to
Supervisor scheme
Succession Planning is currently focused on senior management

positions only. It involves detailed discussions between HR and
Senior Management to identify possible successors. The process
involves identification of 'drop dead' and two 'successors' to prepare
for the short and medium term. The shortlists are determined
through discussion between HR and Business Leaders based on
the needs of the role/position by studying candidate's profile,
performance history and career aspirations. The shortlists may
consist of people from the talent pool as well as employees from
subsidiaries/associate companies. Identified successors are
groomed through pre-defined business and leadership programs
and on-the-job coaching.
Fig. 5.2-13
Nine-box Framework
s
cu
Fo
Box 7
Box9
t
en
em
g
ga
En
Box 4
on
d
an
Re
Box 5
Box 8
en
t&
t
ow
Gr
h
pm
lo
ve
Fo
Un cus
de on
r-p M
erf an
or ag
ma in
nc g
e
Box 1
n
io
nt
te
De
Box 2
Reinforcement of new
knowledge and skills
on the job
Approach
Apex LAC defines the broad level learning and
development strategy (both ST and LT) in line with
the organisations core competencies, strategic
challenges and action plan. This strategy breaks
down in to BU level and then into location level
strategies, which capture both LT and ST learning
needs and focus areas.
While focusing on the Business Strategy BU/
Locations LACs identify areas of improvement in
terms of capability and performance. The focus
areas/skill gaps identified are then built into the
Annual Learning Calendar in the form of various
initiatives/learning programs such as Autonovatx, a
functional capability building initiative that focuses on
6 key technical areas of improvement.
All new hires are sensitized towards high standard of
ethics which prevails in Tata Motors through the
Induction process, which make it compulsory for new
hires to complete TCoC module and certification.
Processes are in place to identify customer centricity/
satisfactionn of both internal and external customer
(e.g. Parivartan, CSI). The results serve as triggers/
inputs towards identifying skill gaps and designing
learning programs such as coaching skills for
appraisers or customer focus module in Certified
Sales Manager training.
Self-identified learning needs and career aspirations
(Fig. 5.2-09) are captured through PACT in discussion
with immediate manager/supervisor. Managers and
senior leaders can nominate direct reports for
Invitation only learning programs. Needs identified by
senior leaders at locations are captured, prioritized
and approved by location LAC. All these approaches
provide inputs to the design of learning calendar and
individual learning plans.
To tap huge resources of knowledge residing inside
the organization and to facilitate transfer of knowledge
from retiring workforce members - subject matter
experts are identified by LACs who actively participate
in content development and delivery of functional
learning programs through iTeach (Internal Trainer
Development Program); Successor handover,
shadowing and on-boarding.
Participation in CFTs, rotational assignment/projects,
international assignments, redeployment and
exposure to green field setups. Stretch roles/
assignments, cross - functional assignments,
certification exams, Executive Development Program
(EDP),transition point trainings, access to learning &
development opportunities at TMTC, visit ing external
speakers, coaching and feedback and LMS.
Safety awareness and education through focused
learning efforts such as Safe Pro for location safety
teams, internal communication and so on. Skill
building for safety observation, incident investigation
and safety audits. Carbon footprint mapping and
awareness programs to create environmental
consciousness.
so
cu
Transfer of
knowledge from
departing or retiring
workforce members
Career Progression Methods

Fast Track Selection Scheme is identified as best
practice and learned by other group companies
Fo
Learning and
Development Needs:
Self-identified and
those identified by
Supervisors,
Managers and Senior
Leaders
Safe and carbon

conscious work
environment
Fig. 5.2-12
Approach towards addressing Workforce Development
LEADERSHIP POTENTIAL
Fig. 5.2-11
Box 6
Box 3
DELIVERED PERFORMANCE
This year a new approach towards succession planning has been

adopted. It has implemented 'Leadership Pipeline Model'
(Fig. 5.2-13 Nine Box Framework) to calibrate senior leaders based
on their exhibited performance and existing potential. The outcome
of this calibration will help identify, develop and nurture leadership
talent and enable succession pipeline readiness as well as groom or
hire decisions. The first phase has commenced with the calibration
of senior management.
49
TATA MOTORS
6 OPERATIONS FOCUS
Top spot in the Manufacturer SUV Class and the top 2 positions in the Manufacturer Car class at the Dakshin
Dare 2011 Rally.
Company of the Year for the Automotive & Transport Equipment category in 2011 International Business
Awards by M/s.Stevie Awards Inc, USA
Winner of North American Die Casting Association's (NADCA) International Die Casting Competition Award
2011, in the Aluminium category, for excellence in Aluminium Die Casting (over 10lbs.)
Tata Genuine Parts team was conferred with the 'Corporate Excellence Award' at the 66th Annual All India
Achiever's Forum (AIAF), for its supply chain innovation of delivering parts for designated vehicles, anywhere
in India, within 24 hours
Tata Genuine Parts (CVBU) bagged the Indian Achievers Forum Award 2011-12 in the manufacturing
category, for Best Practices in Business
Lucknow Plant won the second prize, at National Energy Conservation Award (NECA)-2011, in the automobile
manufacturing category
4 CVBU members from Lucknow plant won laurels at the Indian Society for Quality (ISQ) Awards 2011
Lucknow plant has bagged 5 awards at the 24th CII Quality Control Circle Preliminary Competition (QCCPC)
2011 in the northern region
Pantnagar plant has won the Best in Class Manufacturing Award 2011-12 for its 'Operational Excellence'
Pune plant won the Certificate of Merit at the National Conservation Award 2011 in the automobile
manufacturing category
6.
OPERATIONS FOCUS
quarterly technical seminar, Technology days, and needs faced by
the business. IT enabled eTS for Project monitoring, e-CAPEX for
budget monitoring, Digital Mock up for virtual product development
are few examples of improvements and innovation in work systems
design to improve effectiveness.
Capitalize on core competency The work systems & key work processes (KWPs) are designed to
strengthen and capitalize on core competencies of business units of
the organization (Fig 6.1-02). All the systems & work processes are
managed and evaluated and improved on regular basis to ensure
capitalisation on core competencies. The core competencies are
delivered with the active support of work systems and processes.
Deciding which processes are internal
'Make Vs Buy' (Fig 6.1-03) process is used to decide which
processes within the overall work systems will be internal and which
will need and use external resources to the benefits of TML based
on existing Core Competencies, time to acquire new competencies,
use of the new competencies in future, overall cost effectiveness,
availability of technology, and resources.
Based on the above whenever any product, process or service is
being designed and developed for the customer (Internal and
External both), the concerned system owner, decides the design
parameters or criteria. For example, in ERC - styling, craftsmanship,
Engine Management Systems are outsourced for capability;
activities like vehicle calibration and testing for capacity constraints
and certain technology items like AMT (Automatic transmission)
after evaluating cost benefit analysis. In manufacturing, in-house
critical finishing operations of engine components such as cylinder
block & cylinder head are done while many other components such
as pistons, valves, FIPs, electrical items are outsourced.
6.1a2 - Work System Requirements The key Work System requirements are determined from key
Strategic Objectives / Goals and stakeholder expectations which are
set during Strategy Planning System (SPS) (Fig 2.1-01). Inputs
captured through mechanisms like VOC, QFD from the end
customers and through SLA's from the internal customers are
6.0 Operations Focus

Over decades of automobile manufacturing, focus on operations
has been key to TML's business across plants and business units. All
stakeholders' requirements are well integrated in organizational
strategy and its work systems & processes. This leads to
systematically designed work processes across all functions where
the respective process owner manages, reviews, innovates its
processes. Adherence and innovation in work systems and
processes provides the much needed improvements in efficiency
and high standards of quality. Over years these systems and
processes have been revisited and refined to incorporate changes in
business environment and stakeholder requirements.
TML adopted ISO/TS 16949 Quality Management Systems,
automotive-specific ISO standard. TML also adopted OHSAS
18001, Du Pont and British Safety council for safety, ISO 14001 EMS
system, SA 8000, and the TPM methodology. These help the
organization to sharpen focus on quality, productivity, safety, cost
and customer, as also standardize it's processes and drive
continuous improvements across the organization.
6.1 Work Systems
6.1a Work Systems Design
6.1a1 Design Concepts
The work Systems have evolved over a period of time. TML designs
and innovates the work systems to achieve vision and meet
changing customer requirements. The work systems structure (Fig
6.1-01) in organization, engages with stakeholders to design,
manage and improve and innovate work systems on continuous
basis. The redesign of work systems, when indicated by a change in
internal or external environment, begins with strategic planning,
which incorporates feedback from customers, suppliers, partners
and market sources, as well as information from audits/ TBEM
Assessment/Consultants. These inputs are also used to validate or
update the current work system design.
PDPI and PDCA are the frameworks used for system design and
improvement. Innovations in work systems are also driven through
listening and learning posts and initiatives like Imagineering,
Fig. 6.1-01
Work System Structure

Vendor Management
Finance
Need & Feedback Environment scanning /

Internal / External surveys (Fig 3.1.04)
Listening and Learning Mechanism
(Fig 3.1.06 / 4.2.01) Complaint Mgt
(Fig.3.2.13 and 15) Customer Loyalty & Retain
Customer
Dealers and
Service
Centres
Competitors
Suppliers
Collaborator
Government
Agencies
Market Development
HR
Communication
Mfg.
VMC
CC
ERM
Benchmark Data / New Trends

Thro' Industry Surveys / Business Society & Forum
Sales
Planning
Acquisition
IT&
Governance
KM
Facilities
Leadership
SPP
Outsourced Product / Services SCM / Contract

Review / SAT Audits / Technology Days
Environment Management
Utilities
NPI
After Market
Support
Technology / Infrastructure / Facility / Knowledge

Sharing Thro' Alliance / JV / License
Channel Partner
Management
Process management through ISO/TS 16949, OHSAS, EMS, SOX

Regulatory and Statutory Norms
Thro' Legislations / Consents
P
D
Customer Centric
Priorities for Improvements and

InnovationInnovation
4.1.a.1 & 5.1.a.2
Value / Process driven
Productivity driven, team working
Focused downward, empowerment
Collaborative approach
Culture
Culture
Innovation NPI Process
Core competencies
A
C
High performance
Create Mechanisms : Kaizen events, WCQ - BIQ events, Imagineering, Suggestions, CFTs, Quality Circle
Build innovative mindset amongst People : Through Training Inputs, concepts of stretch targets, Empowerment, Exposure through various forums viz ., exhibitions,
seminars, auto -shows etc.
Promote Innovation culture: Leadership drives Performance improvements and change management process. Eg. ICM, ICR drives
50
TATA MOTORS
Fig. 6.1-02
organizational success and sustainability (Fig. 6.1-04).

6.1b2 Cost Control
Integrated cost reduction (ICR) supported by CREST initiative plays
the key role in continuous cost reduction of products.
Integrated cost management (ICM) during the development of new
products helps in launching the cost effective new products. Various
initiatives by manufacturing teams help in reduction of variable
conversion cost (VCC) in a systematic way. This focused approach
towards systematic cost reduction helped TML to deliver cost
effective products and build it's core competencies over the years.
As part of work systems management, a variety of control
mechanisms, tools & techniques (Fig 6.1-05) are used to control &
minimize overall costs related to defects, rework, warranty cost,
customer productivity losses and inspection & audit costs.
Prevention of defects, service errors and rework The "inprocess" measures help processes to become more predictive wrt
likely defects & reworks and thereby helping in addressing their
prevention proactively. The tools such as DFMEA, DFM, DFA, IT
enabled digital simulations, CFT approach, benchmarking, pilot
runs (Alpha, Beta, PO, PP, PL) for robust product development
during product design, and PFMEA is used for designing /
controlling manufacturing processes.
Poka-yoke, Kaizen, Suggestion Schemes etc (Fig. 7.1-54 and 7.156) are used extensively in-house and at suppliers end to proactively
prevent defects and rework. With substantial increase in the number
of ISO/TS certified suppliers (Fig. 7.1-64) the defect prevention is
further enhanced.
The system and process owners review the service errors (through
SQDCME / VMCDRE / SLAs) and rework based on external and
internal customer feedback to minimise cost and improve
effectiveness. The checks and balances (Eg. SOX, SAP & CRM
DMS) ensure prevention of service errors. Gunwatta Rakshaks/
SDT QP leaders are empowered to raise the alarm or even to stop
the line for any serious quality defect found which in turn helps in
reduction in rework.
Minimising warranty cost With the help of systematic processes
for selection of vendors and continuous monitoring of incoming
material ppm levels, deployment of SQIG/ VQA teams to support
vendors in improving their quality management systems helped
organization in reduction of warranty cost on regular basis. To
minimize warranty cost, failed warranty parts are taken up for root
cause analyses. Action plans are carried out in association with
internal agencies as well as vendors.
Minimising customers' productivity losses In line with the
organizations core competencies, all the key work systems are
designed and managed to ensure manufacturing and delivery of
reliable products and services. This helps the customers to run their
products with minimum interruptions/ breakdowns. The Customer
Capitalising on Core Competency
CVBU
CVBU
PCBU
PCBU
Ability to innovate Low Life
Ability to innovate Value for
Cycle Cost solutions
money solutions.
Developing reliable & cost effective sources, ensuring
Vender Management low ppm levels to improve product quality and
customer satisfaction, Value Engineering
Channel Partner
Increase penetration and enhance reach provide
Management
cost effective sales & service , extended hours.
Development of product what customers and market
New Product
wants with safe reliable and environment friendly
Introduction
value for money products with low life-cycle cost
Provide cost effective service, extended hours, provide
After Market Support spare, AMC, reconditioned engines and refurbished
vehicles to customers for maintaining low life cycle cost
Delivery of Quality, cost effective and reliable products,
support to key customers & institutions, manage safe,
Manufacturing
working conditions.
Optimisation of resources, innovative and optimised
Facilities
plan and facilities to help manufacturing delivery of
Management
value for money products
Human Resource
Management
To strengthen innovative work culture, develop trained

and skilled workforce-both back-end and front-end
manage safety
Information and KM:
E-CRM strong support through better IT support, use

of knowledge back into the processes and products
to make more efficient and cost effective product,
Suggestion Scheme Portal.
converted into requirements of systems and processes

(Fig 6.2-01, 02 ). TS 16949, SA 8000, ISO 14001, OHSAS 18000 are
also used as key requirements for design of work systems and
processes.
The changing customers, collaborators, channel partners, suppliers
and other stakeholder needs are incorporated (Fig 1.1-1&10) in real
time through periodic BSC reviews, Process reviews (Fig 1.1-09).
Safety and Climate Change are the integral part of overall work
system. Vendor parks at Pantnagar, Sanand are some of the
examples where work system design has helped in reducing carbon
footprints etc.
6.1b Work System Management
6.1b1 Work System Implementation
The work systems structure (Fig. 6.1-01) details the basis of
managing and implementing the work systems at Tata Motors. TML
uses PDCA in implementation to improve overall work system
effectiveness. BSC covers requirements of all stakeholders and
periodic reviews of BSCs at various levels help in identifying gaps
and actions for improvements. These reviews incorporate inputs
from JV partners, dealers, customers, government and regulatory
agencies, and vendors to capture changing requirements and
expectations. These help in delivering customer value,
Fig. 6.1-03
Triggers
Decision making Processes (Make) VS (Buy)

Define
Deliverables:
Make or Buy Decision Criteria
Execution of Decision
Internally Design,Prove / Validate
and Incorporate Technology (ERC)
Strategic
Priorities
Market dynamics &
competitive Scenario
New Need/
Compliance
TATA MOTORS
Quality, Cost ,
Productivity,
Cycle time
TAKT time
other
performance
criteria
-Core competency
-Cost Benefit Analysis
-Availability of Technology
-Resource availability
-Past performance
Make
Buy
Internally Plan ,Prove / Validate

and Hand over Process (T.& PS.)
Outsource Product / Service
(Purchase)
Buy/ Collaborate Technology
(ERC/ I.T.)
51
Customer /
End User
Feedback
Fig. 6.1-04
No
Process
NPI
Key work Systems & Improvements

Customer Value
Embedding latest
Technology offerings
in products based on
customer Expectations
Offering Value for money
proposition
Organisation Success
Well designed
products increases
market acceptability
and leads to
organizational
success Timely
introduction of
new products to
market
Maximum utilization
of Platform methodology Delivering the
changing product
mix requirements
Flexibility & scalability

to accommodate
changing requirements. Continuous
QCD improvements
Vendor
3 Management
processes
Strategic Sourcing
initiatives SRM
Alliance with suppliers

pioneer in latest
technology products
Marketing,
Sales &
QA,HR, IT,
5 Finance,
Cost Mgmt.
Prompt response to
customer concerns and
escalate it to appropriate
agencies for faster
resolution Through
appropriate communication channels, DQCTC
MIP, Daily Management
Competitive Warranty
Offerings Spare Parts
availability
Ensuring process
adherence driving
excellence
Market Research,
CRM DMS
Controlling key value

creation processes
System
Design of new
products/new
platform helps in
maintaining a
competitive edge in
the market and brings
long term sustainability
Continual product
up gradation to meet
market expectations
and customer
preferences
Achieving consistency in
product performance
2 Manufacturing through capable and
Reliable processes
Better Quality Product
Development of capable
and reliable supplier
base
Fig. 6.1-05
Sustainability
Manufacturing
Vendor
Management
Controlling & Minimising overall costs : examples
In-process
control
Triggers for Actions taken

to minimise
actions
overall costs
Key Systems and processes, examples
Tools &
techniques
used
Market
1st shot ok,
impact, BSC
Cpk and Ppk
reviews
studies, Near
Misses, PDI gates
Cost reduction,
reduction in
rework /
rejections
Kaizen, Value
Engineering,
Poka-Yoke, DOE,
TQM Initiative (CLT)
Vendor rating,
Procurement
cost, incoming
parts ppm levels
Self certified
Vendors,
Out sourcing
and kitting of
assemblies
Dealers
empowered to
settle warranty
Vendor Assessment
Rating system,
Cost benefit
analysis, SRM
After Market Response time,

cycle time of
Support
warranty
Vendor meet,
BSC and
process
reviews
BSC and
process
reviews
Warranty on web,
Use of CRM
Support Systems and processes, examples

Human
Resource
Customer
Engagement,
Retention, and
Loyalty
Finance
On-time services,
man-days lost
BSC and
process
reviews
CPTs formed
to improve
processes by
removing mudas
Cross Functional
and Locational
Team working,
Brainstorming
Response time,
Funds
disbursement
Business
analysis,
benchmarking
Creation of
Shared
Services to
help Suppliers
as Single point
window
BPR, Redesigning
of the processes,
error-proofing,
Role based
authorisation
contractors and transporters. It defines responsibilities and prompts

the key personnel to carry out rescue operations, evacuations, firefighting, co-ordination and communication. Disaster and Fire control
rooms are maintained.
6.2 Work Process
6.2a Work Process Design
6.2a1 Work Design Concepts
The key work systems structure (Fig 6.1-01) includes collating
requirements of process, understanding of the requirements,
identification and design of key process steps, performance
measures and the control mechanisms.
The work process design approaches are based on the competitive
environment (OP-12 and 17) & complexity of manufacturing, product
life cycle, nature of new products (new platform, facelift, variants,
etc), changing customer needs & expectations (Fig 3.1-03 and 06).
Various factors such as safety; reliability & durability; statutory &
regulatory requirements; environmental impact; "green" design &
manufacturing; DFM, DFSS, measurement capability, process
capability ; supplier capability & supply chain requirements are
considered during work process design.
The Process Owners / Functional Heads design and implement
work processes to ensure that processes meet key requirements.
cycle time, incorporation of organizational knowledge, efficiency and
effectiveness factors are also built into the design.
Product Excellence and New Product Introduction
To achieve business objectives, New Product Introduction process
is designed to execute TML's product plan using market trends,
customer insights, competitors' actions, regulatory and statutory
requirements and technology roadmap.
A process with six distinct milestones/ gateways, NPI process starts
at the product conception stage and extends up to launch.
(Fig. 6.2-05, 06) The process uses CFT approach and integrates
various functions, e.g. Marketing, ERC, Quality Assurance, Vendor
Management, Engineering Change Management to ensure smooth
delivery of new products.
To handle complexity without compromising on productivity, this
Supports in meeting
the organizational
agility
Support monitors, evaluates and implements necessary actions to

minimize losses to customer on account of VOR. If required,
customer is given service vehicles to ensure customers' business
continuity. CVBU has started initiative to pay customer in case of
vehicle is not serviced in specified time period under customer
friendly initiative -- 'Tatpar'. RECON Business helps the Customer
to avoid their productivity losses during critical / aggregates failures.
Minimising cost of inspection, audit cost With the increasing
number of CQ vendors and ISO/TS certified vendors, the cost
involved in inspection and audits of incoming material is reduced on
consistent basis. The overall costs associated with the inspections,
tests & process performance are controlled & minimized by ensuring
that the systems and processes remain in-control to deliver desired
output from both in-house and suppliers operations and processes.
The processes are further supported by in-process inspection and
"self certification by operator". (P2C and SPS ).
6.1c Emergency readiness
The operations and validations (Fig 1.2-06, 6.1 - 06, 6.1-07) ensure
workplace preparedness for disasters or emergencies, business
continuity of operations and recovery. The plant operations,
RO/AO/country offices, stockyards, and suppliers & dealers network
situated across the country and in some international locations,
decentralizes risk of natural calamities and ensure business
continuity for customers and temporary redeployment option for
employees. Continuity of operations is ensured in totality by the
Emergency Preparedness and Procedures at each location.
All systems at each site have been designed to function
independently to minimize the risk. The operations are successfully
managed for last five decades without a single break.
As a part of Disaster Recovery Systems (Fig 6.1-07), on site
emergency action plans ensure preparedness in the event of any
major accident/ incidents and give guidelines for employees,
52
TATA MOTORS
Fig. 6.1-06
strengthened by TMETC, TDCV, Hispano, FIAT; design houses like

Trilix with specialization in different aspects of vehicle design; and
product prototyping and test facilities abroad. Relevant new
technologies incorporated in products include state-of-the-art
advanced engine technology, dynamic stability controls emergency
brake assist, EPS, ABS & Airbag technologies, GPS systems, IVN,
CNG Bus, Ambulance Winger and Prima series of heavy trucks, Ace
Electric Hybrid Bus, DIVO, Y1 Platform.
TML is an industry leader in the use of IT for Product Lifecycle
Management as also managing the business operations. It has
pioneered in deploying processes such as SAP, CRM-DMS,
sourcing.
Potential need for agility
TML has continuously improved it's product portfolio. In view of
fierce competition and requirement of reduced cycle time for the
introduction of new products, a separate unique organizational set
up has been created in record time for development of Ultra low cost
car-Nano.
Cycle time, productivity, cost control, efficiency and
effectiveness
Cycle time, productivity, cost, cycle time, productivity, cost control
and other efficiency and effectiveness measures are incorporated
during design of process using PDPI (OP 19) and also based on
inputs from various organizational reviews. All key processes have
defined effectiveness and efficiency measures which are
customer/user driven (Figs. 6.2-01 & 02). In-process measures and
tools and techniques (Fig. 6.1-05) are used for controlling overall
cost of processes.
6.2a2 Work Process Requirements
KWP's requirements (Fig. 6.2-01) are determined through a
collaborative approach with process users and owners, where
changes incorporated based on strategic objectives (Fig 2.2-05, 07
and 08), action plans, daily operating measures (SQDCME &
VMCDRE), order & delivery plans. The changing needs of
customers, collaborators, channel partner, supplier and other
stakeholder are incorporated.
All Systems are designed considering requirements including safety
and green requirements from internal customers (e.g. IT
satisfaction), external customers (e.g. delivery), suppliers/ vendors
(e.g. vendor satisfaction), channel partners (e.g. Channel partner
satisfaction) and collaborator's feedback (e.g. SLAs) as well as other
stakeholder feedback such as ERM, NPI, OHSAS, and Vendor
Management. Each system and process responds to these
requirements at their design stage. The key work processes and
their Key requirements are identified and listed.
6.2b Work Process Management
6.2b1 Key Work Process Implementation
Process management is characterized by mechanisms such VOC
and other listening and learning systems for external customers and
SLAs for internal customers.
In-process (Efficiency) and end-process (Effectiveness) measures
(Fig. 4.1-04) are selected keeping in view the stakeholder
requirements .
These set of measures are part of BSCs, SQDCME/VMCDRE and
individual MPAs. Implementation of work processes ensures
meeting desired design requirements.
Respective process and measure owners analyse performance
trends during regular reviews. Action plans are developed,
implemented and monitored through these reviews. Changing
performance requirements get included during the regular BSC,
SQDCME and VMCDRE reviews.
Disaster and Emergency Preparedness
Processes to
Process used to incorporate these factors into
ensure
the readiness of Key Work Processes:
Preparedness for:
Disasters Emerge- Prevention Manage- Continuity
Recovery
ncies
Of
ment
Operations
Work ERM &
System Blind
spots,
EMS,
Data
Disaster
management,
Training
Work Business
place Risk plan,
Medical &
Health
support,
Training
PDPI, ERM, PDPI,

PDPI, ERM, PDPI, ERM,
Mock drills, ERM,
Vendor
Vendor and
5S, Regula- OHSAS, and
Dealer
tory norms, Audits, Dealer
management,
Data
Improve- managem On-loading,
back-up
ments ent, Data Training
on the recovery,
audit
findings
On-site Mock drills, Training, Loading Ensuring supply
Emerg- Audits,
5S, Safety back ups, to work
Daily
ency
supply of stations by ondrills
Officers, and audits, power,
Plan,
loading or by
Medical Training
OHSAS water,
another supplier,
& Health
Production keeping on-line
audits,
support,
Related systems up
materials,
ERM &
Blind
spots,
On-site
emergency
plan,
Training
process is deployed with a strong IT backbone: eNPI portal. It

supports Product Portfolio Management (PPM), event tracking,
CAPEX management and issue management.
For example, whenever a new product has to be developed, it is
discussed in the steering committee and then marketing gives inputs
through IT enabled PPM module whereupon technical and financial
feasibility is worked out and if found feasible and approved by the
Senior Management, the project is executed through IT enabled eTS
and budget is monitored through e-CAPEX module.
PCBU has benchmarked it's NPI process with JLR and has adopted
'attribute focused' product development structure and subsequently
customized it to the local culture and environment with a strong
customer focus. 13 Product Attribute Teams (PATs), consequently
formed, define, establish and aid the delivery of key attributes on
products. Based on learning from JLR, this process is being
Fig. 6.1-07
Disaster and Recovery System
For employees and facilities (Plants & Non Plants, IB)

On Site emergency Action Plan (location specific): Fire / Explosion, Major accidents
like building collapse etc. Installation of EMS system (Fig 1.2-3)
For shareholders and
For shareholders
andcustomers
customers
Business Risk Plan : Operational risk, Financial risk, Risk of Fraud. Periodic Due
Diligence Audits to mitigate the risk of non-compliance with statutory requirements.
For Data (Plants & Non Plants, IB)

Data Security and information storage / retrieval system: Information technology
services for managing system security and data access control configuration,
Information storage, retrieval and recovery of data
For Business (Plants & Non Plants, IB)

Financial, Societal and other business risk management: Risks due to Credit, liquidity,
Interest rate, foreign exchange, Regulatory norms, National and international market, etc.
upgraded from Gen 2 to Gen 3.

Incorporating new technology and organizational knowledge
TML has drawn up Technology Roadmap with a planning horizon of
ten years, for development of various vehicle systems e.g.
powertrain, electronics, active and passive safety, climate change.
This is integrated with the 5-year product development plan. Based
on this technology road map, the main activity of product design,
analysis, prototyping and validation is carried out at ERC.
Product design and development processes at ERC are
TATA MOTORS
53
process establishment, ability to deliver at set rate is verified through

PPAP. This ensures proper selection and vendors capability to
deliver.
Vendors are encouraged to accredit themselves to ISO 9001/ ISO
TS 16949 which become part of their vendor rating system.
Evaluating supplier performance The Quality, Cost and
Delivery performances of the suppliers are maintained on
transaction basis in SAP and used in deriving the quarterly 'Vendor
Rating'. The performance of the suppliers is communicated to all
concerned on periodic basis. Regular audits are carried out to check
the performance of the vendors The QCD performance is used to
allocate the share-of-business to vendors and suppliers by Head,
Materials and MPC jointly.
Suppliers are audited for quality compliance and improvement as
per plan. Their Share of Business (SOB) variance report is analysed
for delivery. Suppliers with high vendor rating are considered for new
part development and higher SOB.
Dealing with poorly performing suppliers Daily rejection
booking in SAP, rework and delivery data captured gives early
indications on supplier performance which are discussed internally
for further investigations and improvements. In case of gaps against
the targets, VQA/SQIG teams are deputed to support and improve
vendor performance. Systematic process (Fig. 6.2-04) is followed to
improve vendors performance. Even though there are financial
penalties, reduction in SOB and shifting to an alternate supplier as
an extreme measure in case of repetitive rejections and rework,
thrust is given to extend support to suppliers (by way of training, audit
feedbacks, deputation of internal experts, tools/aids etc) in
improving their overall performance.
TML takes services from TRIGO, QGS for improving outgoing
quality from suppliers. Vendor support centre (VSC) extends support
to the vendors with Kaizens events to improve their processes.
Vendors are rated on scale of A to E and suppliers with rating D & E
are asked to present improvement action plans.
Suppliers are also involved in discussions related to customer
feedback. Vendor council meets have agenda to discuss on
warranty and SPD related issues, suppliers are involved in failed
part analysis. Also, in supplier selection for proprietary items,
emphasis is given to suppliers having wide service network, e.g.
Batteries, FIP, alternators and starters. This helps in further getting
closer to customers.
6.2b3 Process Improvement
Key work processes have efficiency measures to track process level
controls and effectiveness measures to track the final outcomes.
System and Process owners conduct periodic reviews for better
performance and improvements with respect to quality, cost and
productivity. In case of any gaps in performance PDPI / PDCA
process is used.
The tools and techniques such as PDCA, Pareto Analysis, Cause &
Effect Diagram, Why-Why Analysis, Six Sigma (DMAIC),
Benchmarking etc are used to reduce variability and to improve
products and services. Central Quality supports in conducting
studies and suggests improvements in process capability (Cp, Cpk),
DoE, Process Control Charts / CTQ charts etc. After analyses of
existing procedures / work instructions, necessary changes are
planned, implemented and reviewed with respect to it's impact on
the overall process and business. These process improvement
approaches are extended to suppliers as well as even to channel
partners and customers. QMS audits and reviews of performance
against BSC targets further drive process improvements.
World Class QualityIt is a Global Manufacturing System (GMS)
adopted by GM, Toyota, Suzuki etc. It calls for involvement of all
people including vendors. The major pillars of WCQ are, a) People
Involvement, b) Standardization, c) Built in Quality (BIQ), d) Short
Quality Management Systems are linked to the higher-level

processes and get implemented through established ISO/TS
processes and work instructions.
For After-Sales-Service process, the system owner tracks measures
like CSI, DSI and complaint response time to ensure overall process
effectiveness.
6.2b2 Supply-Chain Management
TML uses Vendor Management System (also supported by
Manufacturing System) to manage the supply chain across all
locations. It helps to improve the performance of suppliers. It
includes processes for selecting suppliers with the aim of optimising
supplier base and increasing supplier partnering relationships.
Enlistment of New Vendors, Development of Item, Early Vendor
Integration, Material Scheduling, Procurement & Logistics, Monitor
& Improve Vendor Performance, Make Vs Buy Decision making and
Integrated Cost Reduction are also part of vendor management
system.
More than 900 vendors support for producing the vehicles and some
of them are common across all locations. These vendors are
categorised in various material groups such as Sheet metal,
Castings/Forgings, Rubber/Plastic, Proprietary/Aggregates, etc.
Managing supply chain TML is proactive in dealing with
Vendors. Vendor meets are organized on monthly and yearly basis.
Plant level monthly vendor communication meetings focuses on
next month's production plans which are emerged out of Sales &
Operations Planning CFT. Vendors expectations, needs and
requirements are also understood and resolved subsequently.
Yearly vendor meet is organized which has participation from Top
Strategic Suppliers & Senior Management of Tata Motors. It is a
forum where TML highlights recent achievements and the future
challenges and also felicitates the excellent performing vendors for
their invaluable efforts towards the contribution to company's
growth.
A unique initiative i.e. 'Vendor Council' is formed to leverage mutual
strengths of suppliers and Tata Motors to achieve business goals .
The council steering committee has 36 members (equal
representation from vendors and TML senior leadership) which is
further divided into four subcommittees' i.e. Quality, technology,
Efficiency and Relationship. These subcommittees meet on
quarterly basis to discuss issues and concerns of common interest.
The structure is supported by regional chapters of the council which
disseminate council work among 550+ members throughout the
country. These committees have not only strengthened the
relationships but also improved overall way of working as many
projects such as training, Joint technology development (more than
100 projects are being evaluated) capacity planning, consolidated
buying, Best practices knowledge book publication etc are being
executed through this platform.
Last decade thrust is given to build vendor parks nearby (e.g.
Pantnagar, Sanand and Dharwad locations) the new plants or
upcoming plants to resolve logistics issues and also to improve the
supply chain efficiency.
SRM - is deployed to benefit both suppliers and TML. All material
schedules and performance of the suppliers is displayed on this web
site. SRM is further extended to share technical and commercial
data with supplier through "C folder" portal which helps for
collaborative product development.
Ensuring that selected suppliers are qualified and positioned
All Vendors are selected as per "New Supplier Selection Process"
(Fig 6.2-03). In-depth CFT audit, verification of vendors capabilities
are the steps followed to select a vendor. Once on board, vendor
participates in the product development and prototyping phases.
Before launch of the product, once again supplier readiness,
54
TATA MOTORS
Lead Time, and, e) Continual Improvement.

Forward Model QualityStructured method of APQP defines and
establishes steps necessary to ensure product meets customer
requirements with Quality in house and vendors. It also supports to:
l
Move from understanding customer needs to getting customer
perceived quality in the product
l
First time right product with no failures
l
Manage change effectively and Control deviations
l
Percolate process approach across the organization
Process owners improve their processes every year. These
improvements help improve overall health of work processes, that
Fig. 6.2-03
1. Supplier
Database
Capacity,
Capability,
Specialty
further strengthens work systems.

The overall process improvement culture enables receiving national
and international recognitions throughout the year. The above
initiatives are aimed at strengthening process improvements across
the value chain.
Fig. 6.2-04
Supplier Performance Enhancement

Gradation based
on ratings
New Supplier Selection Process

2. Prospective
Suppliers
3. Performance
Assessment of
Prospective
Suppliers by CFT
Supplier Performance Enhancement
Communication to suppliers with OFIs Identified
4. Matl. Head & MPC

Proposed and Plant
Head approves
supplier
Meeting with Supplier Senior Management with action plan for OFIs
CFT Supplier Visit - Generate time bound action plan
Review action plan generated with supplier for execution
7. Performance Assessment
of Existing Suppliers on
monthly basis.
6. Current Supplier
5. Finance divn.
generate Supplier
code, update
supplier database.
Critical issues . bottleneck to be reviewed for resolution

Performance Monitoring
Fig. 6.2-01
System
Market
Development
Key System and Work Processes

Method To Determine
Requirements
Analyse inputs from
strategy on areas to focus on;
Study requirements of
various customer groups,
Analyse products and
markets of competition
*Few In - process/Efficiency
measures
Key Work Processes
Understand
Market Share
Domestic &
Volume
International
Delta market share y-o-y
Markets, Explore
opportunities and
Strengthen presence
in chosen segments
Requirements
Outputs (Effectiveness
measures)
Results
Key accounts touched

CE I
DSI
7.2-01 to 17
7.5-33 to 61
No. of CPs
No. of TASSs
Spare part performance
No. of CPs and outlets

available
CSI
DSI
7.2-01 to 17
7.2-27 to 30
Forecasting, sales
targets (Domestic & IB ),
Sales Pipeline analysis
Service, Touch
points and reach,
targeted retail Sales,
CPs to meet access
requirements,
markets, CSI, DSI
Achieve targeted
Sales (domestic &IB)
with better predictability
C0 to C3 pipeline
Monthly reviews
Monthly pipeline
Sales Volumes
7.5-33 to 61
New Product
Introduction
Study best practices from

global auto companies,
Competitive analyses, Compare
with best-in-class performance
data on NPI measures.
Feedback from Channel partners,
Institutional Customers
Develop products /
Classifications as
per strategy to meet
Domestic Market
requirements &
country specific
requirements by IB
Adherence to time schedule

(part of NPI index)
New Products introduced

NPI Index
7.1-57 to 59
S&O P
Planning
Analyse requirements of Sales,

Manufacturing and customers
Fulfilment of market
demand, Model wise
production as per schedule
Vendor
Management
Analyse requirements from

suppliers for support, Analyse
strategy and sourcing strategy
Convert sales
Adherence to S&OP Schedule
requirements into
plant wise production
for on time delivery
Develop &
Vendors wi th VQR>80%,
maintain bank of
SSI
reliable vendors
Competent vendor base,

Satisfied vendor base, Cost
Reduction, Vendor satisfaction
7.1-60 to 64,
68
7.1-51 to 52
Manufacturing Analyse inputs from Sales &

Marketing, ERC, NPI &
PSD, Despatch plan s from
domestic sales/ IB. Warranty
& PDI analysis. SQDCME
Analyses, Safety Process
Product Quality,
Cost, On -time
delivery
Cpk, PDI, Inventory Levels,

Productivity, VCC, DMC,
PQI, Asset Turns, Warranty
Cost, BEP , Transit Accidents ,
SR, FR, Near Misses.
Vehicles, Aggregates,
component , Spare parts as
per call up, Improvement in
complaints trend, Machine
availability
7.1-53, 65 to
67, 71, 75,
76, 77
After -Market
Support
Providing Efficient
and Cost Effective
After Sales
Services
CSI/DSI , Complaint response

time
Warranty settlements
Satisfied customers and

dealers
7.2-11 to 17
Channel
partner
Management
Country Scan for new dealer/

TA SS locations, Customer/
CP Feedback
Customer
Acquisition
TATA MOTORS
Analyse Customer feedback

through questionnaire and
direct interactions, Analyse
CP capability to deliver ,
Study competition offerings
55
100%
achieved
Fig. 6.2-02
Process
Process
Key Support Process
Reference
Processes
Method
Method To
to Determine
Requirements
*Few In-process
measures
Requirements
Requirements
Results
Examples
Outputs
Outputs
Key Support work systems (* While measures

easures in italics are in-process measures, others are end-process measures)
Human
Resource
management
Management
Facilities
Management
Finance &
Budgeting
Information
and KM
Utility and
Environment
Management
Workforce
Focus
Employee satisfaction
surveys
TMLs requirements
from HR systems. TML
strategy
Source/ enhance Human

Capital, Attract, retain &
motivate talent, create
Create &&
maintain high performance
culture, improve quality of life
of employees, competency
building, Build safety culture
ESI, Employee Cost

Attrition Rate, Value
Added per Unit
Wage Bill, Safety,
Competency index
Competent,
Competent,
motivated
motivated
and
andsatisfied
satisfied
employees
employeesinin
required
strength
required
Culture
of
strength
High
Performance.
Culture
of
High
Facilities /
Tooling for
Production /
Services
Operations TML
Operation
TMLand
andManufacturing
Manufacturing
Focus
strategy
strategyand
andLT
LTplans,
plans,
Statutory
Statutoryrequirements
requirements
&&regulations,
regulations,Requirements
from Mfg. units
Provide infrastructure
facilities & Tooling to Plants,
adhere to project
requirements
Adherence to
schedule
Strategy
Planning
BU and Finance
strategy, Analyse inputs
from GAAP regulations,
SC requirements for
financial operations
required, global best
practices, Audit
audit reports
Efficient Funds Management

Statutory Compliance
Support for Decision Making
Receivables (Days of
Sales), Working
Capital, Interest
Cost,
Measurement
Measurem
ent &
and
Knowledg
Knowledge
Management
Analyse TML SC needs

and expectations, Global
best practices, users
requirement on IT
Systematize Data collection,

analysis and reporting
Knowledge gathering,
storage and sharing
System up time,
Customer
Satisfaction,
Adherence to IT
roadmap, Ideas
shared & replicated
Operations
Focus
TML strategy & LT

plans, Statutory &
regulatory requirements,
EMS requirements,
Climate change & carbon
footprint
Provide facilities, ensure

compliance with
Environment Policy &
Statutory Requirements,
Climate Change and Low
carbon growth
Compliance with
Statutory and
Environmental Norms
Energy Consumption
Water Consumption,
Carbon footprint
7.1
Funds Availability,
Low Interest
Cost, Financial
Analysis, Budget
Controls WC
Control, Statutory
Compliance
Statutory
IT Roadmap,
IT Capex,
Knowledge
repositories
and platforms
for sharing
7.5
7.1, 78 to 86
Facilities/Tooling
for Production/
Services Statutory
Compliance
7.4, 21 to 43
Environment
Protection
NPI Process (CVBU)
Activities
Phases
Fig. 6.2-05
Duration of Projects range between approx 6 to 40 months according
accordito type
to type
of product/variant
of product/variant
2. Concept Evaluation
3. Concept
Development
Concept alternatives
QFD
Styling themes
Packaging
Manufacturing
Feasibility
Cost Targeting based
on low life cycle cost
Performance & weight

analysis
Style & specification
development & freeze
Vehicle & Aggregate
plans
Product costing
Financial analysis
1. Product Strategy &

Planning
Market analysis
Competitor
assessment
Explore Production
options
Product Planning
Study of Low Life
Cycle cost
4. Product Design &

Development
5. Design validation &

Productionisation
Design analysis &

simulation
Alpha prototype tests
Aggregate Tests
Crash Tests
Manufacturing
Planning
Detail costing Low
life cycle cost
7. Ramp Up
6. Pre Production
Full design validation

Beta prototype test
Production tooling
Vendor parts development
Install & commission
facilities
Quality proving &

process validation
P0 & PP Builds
Vendor parts
approval
Homologation
Service design &
related activities
Ramp up
Pre-Launch Build
Integrated product
development and
involved all important
Departments and
Gateways
Functions (Fig 6.1

Pl
Project
Initiation
Key participants
participants Gateway Deliverables
NPI system takes

care of Safety
and environment
related concerns
right from the
concept stage
7.3
SPP
(Fig 2.1-01
step 2)
DR0
Product Strategy
Review
DR0 Sign offs
Nine Box &
supporting
documents
START
DR1
Concept selection
DR1 Sign offs
Product profile &
tech targets
Recommended style
theme
Preliminary cost with
targets
Preliminary business
case
DR2
DR3
Concept & project

approval
Design Release
DR2 Sign offs

Product specs&
features list
Vehicle test plan
Style & packaging
sign off
Time & Resource
Plan
Full business case
DR3 Sign offs

Design release
Long lead tooling
signed off
Component
reliability plan
Business case
validation
DR4
Production Release
DR4 Sign offs
Critical issues
brochure
Vehicle test
requirements
met
Control plans
sign off
DR5
Project Review
Launch
DR5 Sign offs

Launch volumes
QP build
completion
Vendor parts fully
approved
Ramp up
production
Benchmarked by many
Tata and Non Tata
companies
More than 160 launches
in last 6 years
We have Industry
leadership
Innovate Low Life Cycle Cost solutions through out all phases
CFT Leader, LOBs, ERC,
Planning, Market
Research
Project Manager, LOBs

ERC, MFG, Finance,
Planning, ADD
Project Manager, PE,

LOBs, ERC, ADD,
Finance, Planning,
MFG, CQ, S&M, CC
Project Manager, ERC,

ADD, CQ, Finance,
Planning, PE, CC
Project Manager, ERC,

CQ, PE, Finance,
Planning, CC
Project Manager, ADD, Project Manager,

MFG, CQ, Finance,
LOBs, ADD, MFG,
Planning, LOBs, CC
Planning, CQ, Matls,
Finance, S&M, CC
NPI Office
56
TATA MOTORS
Fig. 6.2-06
NPI Process (PCBU)
Process overview
PI
DR0
PIP
Complete
Product Definition
Product Profile
Sign off
DR Gateays
Project Milestones
DR1
DR4
DR5
L
Launch
Quality
Verification
Production
sign off
(SOP)
16
17
DR3
Pencil Down
Theme
Selection
PIP
Marketing
Concept Freeze,
Eng. Targets Sign off
DR2
Project Approval,
Digital Validation
Complete
Tooling Kick off
(UN)
Supplier
Selection
Market equation sign off

(Volumes, Price & Contribution)
Final Ext + Int
1:1 Scale Model
Engineeing Target book sign off
Aesthetic
Sign off
Confirmation
Theme Selection Exterior
Model
Final Class A
Half tub
release
Model Sign
Theme Selection interior
off
10
Tooling Kick off

(UP)
11
Component
Validation
12
PAT
Verification
13
14
15
PO
Build
PPAP
PP
Build
Launch Preparation
Product Definition
PAT Process
Design (Styling) - Ext.
Design (Styling) - Int.
Engineering
Feasibility Check
Aggreagte Options Finalization
Feasibility CAE
V1 Release
CAE 1
CAE 0
Build/Proto
Buck
Physical Validation &

Feedback
Mule A
Buck
Feedback
C & T Document Release
SQIP (Vendor Dev.)
UP2
V2 Release
Mule B
Simultanious Engg.
Mfg. Planning
LOI
Alpha 1
Supplier Alpha
Drawings parts
receipt ordering
Cost Management (ICM)

Forward Quality / APQP
LQOS / Launch Management
Customer Support
Aggregate DMC estimate

HOQ
Prep
DMC Sign off
DFMEA
Quality Plan
DVP
QIB Actions
Sign off Effectiveness Check
HOQ
Check
Quality Target
Sign off
sign off
Service
Strategy
Beta
TTO
PO
UP SL
TKO
UP LL
TKO
T0 Parts
TF Parts
SOP
PP
Beta Verification
Part Development
PO, PP Verification
Textured Parts
PPAP
Level 2
PPAP
Level 1
DVP Completion
FTN sign off
Inspection
Fixtures ordering
Pattern &
Design
Pre-Machining
Equipment
Pre-acceptance
Facilities
installation complete
Equipment trials
Process Proving
Production
Sign off
Assembly & Tryout

Machining
Buy off
Shipment & HLTO
Laser cut parts
Die cut parts
DMC report for
DMC tracking - Target Vs Actual status
Pricing
Proto
Inspection Fixtures,
QIB
E-Cube, Blue buck Audits
Vehicle
QIB Handover
Handover to
to Plant
PlantQA
QA
QIB Verification
VehicleDemerit
Dmerit Audits
Quality gauges identification
Audit
Quality VerificationQuality Verification
QualityConsistancy
ConsistencyAudits
Audits
Quality
LQOS Process
EPC, Technical
Literature release
Service ability, Maintainability and Wire & Tube Workshops
Requirements and Concept Development
TATA MOTORS
Alpha 2
Alpha Validation
Process Simulations Digital build

Early Feasibility Study
DFMs
Selection of SE
Consultant
Equipment
Equipment
Supplier Selection
Ordering
BIW Tooling & Panels
V3 (Beta) Release
CAE Final
CAE 2/3
Mule Validation
Tech. review
RFQ
release
Engineering Sign off
Homologation
UP3
Alpha 2 Release
UN
TKO
3 Suppliers on
board for EVI
Vehicle Testing and Validation Complete
UN3
Tooling KO and Part Avl.

SAT Visits
Data Released
for E Cube &
Blue Buck Mfg
TRM Sing off
Component level Testing Complete
UP1
UP0
V0 Release
Digital Validation (CAE)
DVP Sign off

UN2
UN1
UN0
Upperbody (UP)
SRM
Vehicle Design & Development
Packaging Sign off
Underbody (UN)
Digital Optical
Quality Sign off
Product Audits & Field Testing
Engineering & Process Design ,Validation
57
Dealer Training
Launch
Launch
of
Tata Sumo,
LPT 709
Launch
Sumo Gold
&
ACE Zip,
Tata Prima
in SA
launch of
Tata
Sumo deluxe
Launch of
Tata Safari
first
SUV Indica
ACE plant
at
Pantnagar,
Nano plant
at
Sanand,
Launch
of
1109 Truck,
CNG bus
Launch
Tata 207DI,
Tata Indigo
Launch
of Novus
in Korea,
Sumo Victa,
Indigo Marina,
TML Listed in
NYSE
TATA MOTORS LIMITED - MILESTONES

TBEM Application 2012 Mytml

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MANAGEMENT SUMMARY

The Tata Group comprises of over 90 companies in seven business

Tata Motors Commercial Vehicle Business Unit (CVBU) is the

Piaggio, Force and Mahindras have also launched small 4 wheeler

Medium and Heavy Tata Trucks

Light Commercial truck (LCV), segment is relatively insulated

Light Commercial truck (LCV)

Small Commercial Trucks & Small Passenger Carriers

influenced by changing trends in income demographics, increased

Tata Motors Passenger Car Business Unit:

respective segments. Indian passenger car industry has come a

Range Rover Sport

Tata Motors aspires to be a strong number two player with a market

Delivery mechanism for Products, Service and Parts

Domestic Market - Delivery of Service

Domestic Market - Delivery of Spare parts

International Market - Delivery of Vehicle, Service and Spare parts

Domestic Market - Pre-owned Car Business (TMA)

The organisational culture is open and participative thus promoting

TML Other Services

Direct customers, Spares, Recon, AMC, Financial Services, DTC type

VMCDRE and various communication mechanisms such as Maha

Work force Profile

* Flexi workforce is also deployed based on market demands

Health & Safety Requirements

Certification from IGBC and our Dharwad plant is in pipeline. The

Key Workforce Benefits

Canteens, Transport, Time-Off from work, Financial Support & Retirement

More details are provided in section: Workforce Focus

Technology / Equipment/ Facilities

Product Design, Development and Testing

Operating Policies & Procedures

reviews which focus on business level strategic initiatives.

Suppliers, Partners, Collaborators and Distributors

Role they play in our

Regulations and Accreditations

Governance Structure at Tata Motors

GRI, CSR, Carbon

Contracts, trainers, consultants,

Dealers, TASS &

P.1 b ORGANIZATIONAL RELATIONSHIPS

CRM & DMS,

Customers Present and Emerging Requirements

Present Key Customer

Future / Emerging Key

Fuel Efficiency, Low life cycle

Ease of Service, High Torque

Ashok Leyland, Mahindra Navistar,

More no. of seats per ton of

Affordable Climate control,

Force motors, AL, Eicher, Swaraj

Fuel Efficiency, Low life cycle

Low Repair time, Driver Comfort &

Eicher, Mahindra, Ashok Leyland

Fuel Efficiency, Low life cycle

Ease of Service, Safety,

Availability of spares, Finance

Convenience of distribution points

Spurious part manufacturers

Performance features, fits &

Global Automobile Players

Personal city car

Small foot print, Spaciousness

Low price, Low running cost