TATA MOTORS

Established in 1945, Indias largest automobile company Key growth business for the Tata stable, and currently contributes $4.6 billion or about 20% to the group's total revenue Employs 30000+ employees

Information Technology background

Tata Motor IT solutions ,business and services are provided by Tata Technologies, a fully owned subsidiary of Tata Motors Basic IT strategies and details are finalized in an IT balanced scorecard in which the various projects are defined for the next 12 months and listed in order of priority

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Reasons For Implementation of ERP

Corporate office of Tata Motors is located in Mumbai 4 major plants located in different parts of India 42 Regional and Sales offices 27 spare parts warehouses Produces almost all major aggregates, components, forgings and castings R&D centers are located in South Korea, Spain and UK 1,400 in-house engineers and scientists Spare part dealer network consists of 1200 touch points given its sheer size and distributed units there was no online real time data available which led to production loss sales, finance and production planning systems were independent of each other hence information flow across the organization was very cumbersome a need for collaboration between vehicle manufacturers and dealers was felt with legacy-based systems, the environment produced inconsistent data, making interpretations difficult and resulting in inefficient planning for capacity and spare parts Tata motors wanted to scale production and increase its capacity, hence a need for backward integration of the processes was required

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WHY SAP: Tata motors perspective

SAP is the world leader in ERP systems for manufacturing companies Ready made processes for auto manufacturers level of customization required is less The success of SAP SCM module hinged on the success of the Tata Motors implementation

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Goals mySAP implementation

Improved Sales Revenue Cost Reduction Reduced Inventory Improved Production Scheduling Improved Productivity Enhanced organization-wide communication

SAP Product Implementation

Functional and Technical Consulting for implementation of mySAP portfolio of products SAP R/3 Implementations including Industry Specific Solutions BIW, CRM, SRM, APO, SCM, Enterprise Portals Change Management SAP Implmentation Audit Identification of Risk Factors Risk mitigation Planning Solution / System Optimization System Operations Plan

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Project Scope - mySAP

Phase 1
Pilot implementation covering: four locations for selected product categories and four vendors each for direct and indirect materials

Phase 2
Rollout of mySAP for Direct and InDirect Materials for balance Product Categories and Vendors covering all locations Also implement Invoice entry and Approval Modules. Was primed by Tata Technologies Limited 1997 : SAP version 3.4 was implemented Constrained by the WAN architecture in the country their first implementation was a decentralized one. They had four servers: 3 for their manufacturing plants at Jamshedpur, Lucknow and Pune 1 for their sales and corporate services at Mumbai. 2003 : upgraded to version 4.6 migrated to single server architecture Triggered by need to consolidate operations at Daewoo, Korea and the Pune operations. 3000 users, and the company implemented over twenty modules of SAP. Production bottleneck is reduced as scheduling is very good and Vendor end system has been integrated with
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VCM ( the legacy system) which is yet to be incorporated within SAP The range of SAP functionality used is perhaps one of the largest and successful in the automobile industry worldwide Disaster Recovery infrastructure to blend with ERP System Seamless integration with Enterprise Applications like PLM and CRM Customizations: Enhanced automatic Invoice Verification: 12000 invoices a day Automated payment and recoveries for transporters: 4,50,000 vehicles annually Participants: Suppliers, Dealers, Sales & Service Centers and even Bankers

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mySAP SRM 40 Implementation @Tata Motors

Rechristened as Project VECTOR: Value Enhancement by Collaboration through Technology and Operational Restructuring

Project VECTOR Mission:

Revolutionize the supply chain by uncovering the hidden
value through technology driven Sourcing and collaborative Purchasing

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Project VECTOR Goals

Automate procurement process Enhance Supplier capability through catalogue content management Streamline procurement process across locations Quick sourcing through live auctions Clear visibility of supplies and payments status to suppliers through portal. Bring global Spend visibility to maximize negotiation power Parts rationalization through spend analysis Competitive price through live auctions Harness state of the art technology Netweaver, Web enabled collaboration

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Organization Chart for implementation

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SAP Commitment
SAP SCM module success hinges on a robust implementation in
TATA Motors

Expertise

Tata Motors
Lead Manageme nt
Top Management

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Logical Structure

Evaluation of tender
Quality aspects Competitive price rates among consignor Freight rates Price conditions ( transit insurance, packaging ) Tax structure to be applied on consignor Location basis

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Supplier Relationship Management

Self Service procurement. Catalog and Content Management. Strategic Purchasing Scenario: Spend Analysis, Contract Monitoring. Sourcing Scenario: Rfq, Rfx. Supplier Self Registration Module. Live Auction Cockpit Order Collaboration Scenario with full support for Goods Movement. Contract Re-Negotiation Scenario for Retrospective Price Amendments.

Usage of SAP Netweaver: People Integration, Process

Integration and Information Integration

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Business Process Supply Strategy Development

DEFINITION Supply Strategy Development is initiated by assessing the organizations supply needs. Products and/or product groups are combined into sourcing categories. Categories are positioned according to their business impact. Market information, technology and industry trends are collected along with information about the supply base. Based on the analysis of this combined information a supply strategy is derived for each of the souring categories.

EXAMPLES
A company opens a new facility in East Asia, and defines the sourcing strategy for that region. Analysis of hidden procurement costs kicks off a supplier de-proliferation initiative

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Overall Benefits
Overall Integration of the departments Finance, Sales, Production etc. On Demand Decision making data Backward Demand Integration Reduction in inventory cost as real time info is available Reduction in production bottleneck with better scheduling Seamless integration across the Supply Chain Standardization of processes across plants at various locations Reduction in manual efforts of Invoice Capture Reduction in Transaction Cost & Compress Cycle time

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Conclusion
ERP is a key backbone application for companies in a fast changing industry like steel. Given an awareness of the best practices and a good understanding of the project complexities, the risks in an ERP implementation are usually outweighed by the benefits . The ERP discussion is often one of mindset more than one of standalone business cases. While implementing ERP can be challenging and demands sustained commitment from top executive levels, it is fundamental to enhancing the competitive position of a company in the dynamic environment of the steel industry today.

Bibliography
ERP Demystified second edition(Book) ---Alex Leon http://www.tatamotors.com/ http://www.expresscomputeronline.com/20071029/managem ent01.shtml http://whitepapers.zdnet.com/abstract.aspx?docid=353998

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