TATA INDICA

THE MAKING OF THE SMALL CAR

 INTRODUCTION
PEN INSU LA R LO CO MO TIV E
•IN 1923 THE
CO MP AN Y ESTABLISHED IN TATA ,JAMSHEDPUR.
•IN 1927 PENINSULAR WAS TAKEN OVER BY EAST INDIA
RAILWAY.

•1945 TATA SONS PURCHASED THE PLANT FROM GOVT.

OF INDIA TO MANUFACTURING STEAM LOCOMOTIVE BOILERS
AND OTHER ENGINEERING PRODUCT UNDER THE NAME OF
TATA LOCOMOTIVE AND ENGINEERING COMPANY.

•IN 1947 IT STARTED PRODUCING BOILERS FOR IMPORTED

LOCOMOTIVE .

•IN 1954 THE COMPANY ENTERED INTO A TECHNICAL

COLLABORATION WITH DAIMLER-BENZ TO MANUFACTURE
AUTOMOTIVE.
•IN 1960 THE COMPANY’S NAME CHANGE TO TATA ENGINEERING AND
LOCOMOTIVE COMPANY LTD.(TELCO).

•IN 1961 IT STARTED ITS MANUFACTURING OF CONSTRUCTION

EQUIPMENTS.

•IN 1966 IT ACQUIRED INVESTA MACHINE TOOLS CO. AND SET UP A

MACHINE TOOL DIVISION AT PUNE.

•IN 1977 TELCO PRODUCED ITS 1st COMMERCIAL VEHICLE.

•IN 1983 TELCO STARTED TO PRODUCED HEAVY COMMERCIAL VEHICLE .

•IN 1986 TELCO LAUNCHED ITS 1st LCV –TATA-407.

•IN 1991 TELCO LAUNCHED ITS PASSENGERS CARS TATA SIERRA AND TATA
ESTATE.
THE SUCCESS STORY OF TATA INDICA
RATAN TATA THE CHAIRMAN OF TELCO THOUGHT TO
PRODUCE A SMALL CAR.

WHICH SHOULD BE PRICED LIKE MARUTI 800.SHAPE LIKE

ZEN AND SPACIOUS LIKE AMBASSADOR.

IN 1995 TELCO ANNOUNCED TO LAUNCH A SMALL CAR

INDICA.

TELCO WAS FAMOUS FOR PRODUCING COMMERCIAL

VEHICLES THAT’S WHY THEY WANTED TO CHANGE THEIR
IMAGE.

FOR PRODUCING INDICA TELCO OUTSOURCED ITS 80%

COMPONENTS FROM 200 VENDORS .(1200 OF THE 1500
PLUS COMPONENTS).

GENERALLY A CAR TOOK 48 MONTHS BUT TELCO

COMPLETED INDICA IN JUST 31 MONTHS BY FOCUSING
ON SUPPLY CHAIN.
 CHALLENGES
AT THE TIME OF STARTED THIS
PROJECT TELCO HAD THE BIG
CHALLENGE THAT ,THEY HAVE TO
PRODUCE THEIR COMPONENTS BY
OWN OR THEY HAVE TO
OUTSOURCED COMPONENTS.
FINALLY THEY HAVE DECIDED TO
OUTSOURCED COMPONENTS AND USE
THEIR OWN ENGINEERS FOR
MODIFICATION.
THAT’S WHY THEY SET UP ENGINEERING
RESEARCH CENTER AT PUNE IN
MAHARASHTRA.
 OUTSOURCING
COMPONENTS SUPPLIER
COMPONENTS
5 DOOR HATCHBACK I.DE.A(ITALY)
ENGINE INSTITUT FRANCAIS DU PETROL
FRANCE
ASSEMBLY LINE NISSAN’S PLANT (AUSTRALIA)
PRESSES MERCEDES BENZ
PISTONS AND PISTON RINGS INDIA PISTONS
ELECTRIC COMPONENTS AND LUCAS-TVS
FUEL INJECTION SYSTEM
STEERING SYSTEM RANE TRW STEERING SYSTEM
RADIATOR TATA-TOYO
FRONT AND REAR TATA AUTO PLASTICS
BUMPER,DASHBOARD,INSIDE
TRIMS.
FUEL LINES IMPERIAL AUTO
 CREATION OF STRONG VENDOR BASE
•FOR SELECTING VENDOR TELCO SET A SIMPLE YARDSTICK.

•IN THE 1st STEP INITIAL ASSESSMENT TEAM FROM TELCO EVALUATE
THE SUPPLIER ON THE FORMAT PROVIDED BY TELCO.

•IN THE 2nd STAGE THERE WAS A QUALITY SYSTEM SURVEY BY TELCO
QUALITY AUDIT TEAM.

•THE 3rd STAGE CALLED MANUFACTURING VALIDATION TO ENSURE

THAT THE SUPPLIER WAS FOLLOWING THE PROPER MANUFACTURING
PROCESS OR NOT.THIS IS CALLED PRODUCTION PART APPROVAL
PROCESS(PPAP) WHICH CERTIFIED THE PRODUCTION QUALITY.

•TELCO SETUP SUPPLIER QUALITY IMPROVE TEAM TO IMPROVE THE

VENDOR QUALITY SYSTEM TO ENSURE THAT THEY PRODUCE QUALITY
PRODUCT.

•IT INCLUDED 13 STEP QUALITY IMPROVEMENT PROGRAMME.

•TELCO SET A PARTICULAR TARGET FOR EACH VENDOR.

•TELCO TREAT THEIR VENDORS AS PARTNERS AND ALWAYS

SUPPORTED
AND HELPED THEIR VENDORS.

•THAT’S WHY THEIR VENDORS COMPLETE THEIR TARGET AT

EXACT TIME BY GIVING THEIR HEART AND SOUL.
 TRANSFORMATIONS

• Cost
• Quality
• Delivery
• Performance
• Flexibility
• Innovativeness
 Cost
1. TELCO REDUCE LOGISTIC COST BY JUST IN
TIME BASIS.
• JUST IN TIME INVENTORY SYSTEM.
• REDUCE TRANSPORTATION COST.
• ACCURATE DEMAND FORECASTING.
 QUALITY
1. FOR SELECTING THE BEST QUALITY VENDOR BASE
THEY HAVE 3 PARAMETERS .

• IN THE 1st STEP INITIAL ASSESSMENT TEAM FROM

TELCO EVALUATE THE SUPPLIER ON THE FORMAT
PROVIDED BY TELCO.

• IN THE 2nd STAGE THERE WAS A QUALITY SYSTEM

SURVEY BY TELCO QUALITY AUDIT TEAM.

• THE 3rd STAGE CALLED MANUFACTURING VALIDATION

TO ENSURE THAT THE SUPPLIER WAS FOLLOWING
THE PROPER MANUFACTURING PROCESS OR NOT.THIS
IS CALLED PRODUCTION PART APPROVAL
PROCESS(PPAP) WHICH CERTIFIED THE PRODUCTION
 DELIVERY

• TELCO SETUP ONLINE SERVICE, VERY

SMALL APERATURE TERMINAL(VSAT) TO
REDUCE ORDER PROCESSING TIME.

• FOR FASTEST DELIVERY TELCO USES ONLY

3 LEVELS WHETHER THE OTHER COMPANY
USE 5 LEVELS.
 PERFORMANCE
•TELCO SET THE TARGET FOR THEIR VENDORS.

•TELCO TREAT THEIR VENDORS AS PARTNERS.

•TELCO USE THEIR ENGINEERS FOR MODIFICATION OF

THE COMPONENTS SUPPLIED BY
VENDORS.

•TELCO TRAINED THE SUPPLIER ENGINEERS IN ITS R&D

CENTER AT PUNE.

•TELCO GIVE FULL SUPPORT TO THEIR VENDORS.

 FLEXIBILITY
•TELCO WAS VERY FLEXIBLE AT THE
TIME OF SELECTING VENDOR.

•TELCO CHOOSE WORLD CLASS

VENDORS FOR THEIR REQUIRED
COMPONENTS.
 INNOVATIVENESS
•TELCO COMEUP WITH AN UNIQUE IDEA
THAT THEY WILL USE ONLINE SERVICE
FOR SPEEDY COMMUNICATION,VERY
SMALL APERTURE TERMINAL(VSAT).

•TELCO SETUP 3 LEVELS PROGAMME

FOR SPEEDY DELIVERY.
 CONCLUSION
•AT LAST WE CAN SAY THAT OPERATION
MANAGEMENT IS REALLY A BACKBONE FOR ANY
ORGANISATION.

•WITH THE HELP OF OPERATION MANAGEMENT WE

CAN IMPROVE ALL THE AREA OF ORGANISATION LIKE
MARKETTING,FINANCE,HRM,MIS,INVENTORY
MANAGEMENT.

•OPERATION MANAGEMENT CREATE A RELATIONSHIP

BETWEEN ALL THE AREA OF AN ORGANISATION.
THANKING YOU
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