OPERATIONS MANAGEMENT

A study on Tata Motors- Commercial Vehicles Division

Submitted by:
Batul A Hussain – L016
Chavi Passary – L019
Khushi Kakkad – L036
Tanvi Muthyala – L059

Under the guidance of:

Prof. Anantha Murthy NK
Faculty, NMIMS– Bengaluru Campus

Address:
Lakshmipura Village, Anekal Taluk,
Bannerghatta Main Rd, Kalkere,
Bengaluru, Karnataka 560083
 Acknowledgment

We want to express our gratitude and appreciation to all those who helped complete this report. Firstly, we
would like to extend our sincere thanks to the Institute for allowing us to learn and grow as students. The
knowledge and skills we have acquired during our time here have been instrumental in shaping our
academic journey and have been invaluable in preparing this report. We would also like to acknowledge the
crucial role of the institute in providing the resources necessary to aid our findings.

Special thanks are due to Prof. Anantha Murthy NK, whose help & stimulating suggestions helped us in the
time research in writing this report. His guidance, encouragement, and constructive feedback have been
indispensable in helping us develop an understanding of operations management principles.

Furthermore, we would like to acknowledge the support of my family and friends. Their constant
encouragement and motivation have inspired me greatly, and I am truly grateful for their unwavering
support throughout this journey.

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 Preface

This report presents an in-depth analysis of the operations management of the commercial vehicles division
of Tata Motors. Tata Motors is a leading global automobile company with a significant presence in
commercial vehicles. The report provides an overview of the company's operations management practices,
focusing on the commercial vehicles division.

The operations management of Tata Motors plays a critical role in the company's success, particularly in the
competitive commercial vehicles market. The report examines the various aspects of the division's
operations management, including production processes, quality control, and sustainability initiatives.

The report draws on secondary sources, including industry reports and academic literature, to
comprehensively understand the division's operations management.

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Plagiarism Report

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 Table Of Contents

S.no. Particulars Pg. no.

1. Chapter 1: Introduction 05-10

2. Chapter 2: Framework of Study 11-12

3. Chapter 3: Findings & Analysis 13-26

4. Chapter 4: Conclusions, suggestions & recommendations 27

5. Bibliography 28

6. Annexure I & II 29-30

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 CHAPTER 1
Introduction
Economic Outlook
Global economy outlook
According to the International Monetary Fund (IMF)’s World Economic Outlook growth projections
released in October 2022, the world economy grew by 6 % in CY211 due to economic recovery and the
lower base. For CY22, the forecast for global economic growth slashed to 3.2% citing disruptions due to the
Russia & Ukraine conflict and higher-than-expected inflation worldwide. The CY23 is projected to slow
down to 2.7% mainly due to tightening global financial conditions, expectations of steeper interest rate hikes
by major central banks to fight inflation, a sharper slowdown in China and spillover effects from the war in
Ukraine with gas supplies from Russia to Europe tightening. The IMF projects world economic growth
between 2.6%-3.3% yearly (Y-o-Y) basis for the next five years.

Indian Economy Outlook

• GDP growth & outlook

In Q1FY23, India recorded 13.5% growth in GDP which can largely be attributed to better performance by
the agriculture and services sectors. Following this double-digit growth, Q2FY23 witnessed 6.3% growth.
Compared to the previous quarter, this slowdown in growth can be accounted for by the normalisation of the
base and a contraction in the manufacturing sector’s output. Prospectively, the announcements in the Union
Budget 2022-23 on boosting public infrastructure through enhanced capital expenditure are expected to
augment growth and crowd in private investment through significant multiplier effects in FY23.
However, heightened inflationary pressures and resultant policy tightening may risk the growth potential.

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With the increased demand for contact-intensive sectors and positive business and consumer sentiment,
discretionary spending and urban consumption are expected to bolster economic growth. Along with
growing government support and a push towards capex, investment activities are expected to stay upright
through improving bank credit and rising capacity utilisation. On the other hand, headwinds from
geopolitical tensions, tightening global financial conditions and slowing external demand pose downside
risks to net exports and India’s GDP outlook.

• Industrial Growth
Improved core sector and capital goods sector help in IIP growth momentum.
On a cumulative basis, IIP grew by 11.4% in FY22. However, this high growth is mainly backed by a low
base of FY21. FY22 IIP was higher by 2.0% compared with the pre-pandemic level of FY20, indicating that
while economic recovery is underway, it is still very nascent. India’s industrial production contracted by
4.0% in October-2022 from a growth of 3.5% in September-2022 due to a high base effect and weaker
performance in the manufacturing sector. The slowdown in external demand also played a critical role in
pulling down IIP growth this month. Despite this, the continuous government support for capex and the rise
in the intent to invest by the private sector is expected to keep the growth momentum alive in the capital
goods and infrastructure sector.

Going ahead, moderating inflation in the economy is likely to support domestic demand in the
coming months, The easing of global commodity prices is also expected to aid the manufacturing sector by
reducing the input cost in the coming quarter.

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Indian Automotive Industry

• Overview
The automotive industry is considered one of the primary drivers of economic growth due to its linkages
with multiple industries. The growth of this sector benefits the commodity sector as vehicle manufacturing
require steel, aluminium, plastic, etc. It also holds importance for the NBFC/Banks in the form of
automobile
financing. Moreover, it is a crucial source of demand for the oil & gas industry. The automobile industry in
India is one of the largest in the world, with domestic sales of about 17.5 million units in FY22. Its
contribution to the GDP of India stands at around 7%. There has been a consistent decline in sales over the
past two years: FY20 was impacted by the consumption slowdown, and FY21 was impacted by the Covid-
19-induced lockdown restrictions apart from an overall economic slowdown. The automobile industry’s
performance during FY22 is also weak, with domestic sales declining by 5.9% compared to the previous
year owing to the second wave of Covid-19, a hike in vehicle prices, rising fuel prices and semiconductor
shortage.

Chart: Domestic sales of automobiles in India

India was the fifth-largest auto market in FY20 and is expected to be the third-largest in terms of volume
by FY26. Across segments of the industry, India is positioned amongst the leading markets globally. India
is the largest manufacturer of two-wheelers, three-wheelers as well as tractors. It is also among the top 5
manufacturers of passenger and commercial vehicles. The major growth drivers for the automobile
industry in India are growing household income, favourable demographics with a large proportion of
the young population, expanding R&D hub and government support.

• Indian Automotive Market segment

The Indian automobile market can be categorised into four segments – two-wheelers, three-wheelers,
passenger vehicles and commercial vehicles.
Two-wheelers and passenger vehicles dominate the domestic Indian auto market. Two-wheelers and
passenger cars contributed about 77% and 16% of total automobile sales in FY22. The
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share of various segments in automobile sales and production in India in FY22 is depicted below:

Chart: Share of different categories in automobile sales

The passenger vehicle segment will continue to grow with an increasing preference for premium vehicles.
The commercial vehicle segment is anticipated to see continued demand due to structural upcycle. The rural
market demand is also expected to increase at the onset of the harvesting season, thus increasing farm
income which will further drive sales, especially in the two-wheeler and tractor segment. On the other hand,
exports are expected to decline going forward due to ongoing geopolitical tension and a globally high
inflationary and interest rate environment.

Indian Commercial Vehicle Industry

• Overview

The Indian Commercial Vehicle (CV) Industry is the economy’s lifeline. About two-thirds of goods and
87% of the passenger traffic in the country moves via road. Past trends have shown that CV demand is
closely correlated with the GDP growth rate of the country. Therefore, it is believed that a phase of growth
or slowdown in CV demand is a harbinger of an upturn or downturn in the economy, respectively.

The historical trend of production and domestic sales of CVs in India is depicted below:

The domestic sales of commercial vehicles in India have declined in recent years due to the economic
slowdown in FY20 and the Covid-19 pandemic in FY21. However, the sales improved by 26% in FY22
with the government’s continued focus on improving infrastructure and construction activities.

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Commercial Vehicle Segments

In India, the CV segment is divided between Light Commercial vehicles (LCVs) and Medium & Heavy
Commercial Vehicles (M&HCVs) based on tonnage. Vehicles with Gross Vehicle Weight (GVW) below
7.5T are classified as LCVs, whereas vehicles with GVW above 7.5T are categorised as M&HCVs.

• Medium and Heavy Commercial Vehicle

The MHCV segment generally caters to the logistic companies for long-distance transport and companies in
the infrastructure, metal and mining sectors. Therefore, this segment’s growth is considered a good indicator
of industrial and infrastructure growth in the economy. The MHCV segment can be further classified into
two parts, trucks and buses.

• Commercial Light Vehicle

The LCV segment is usually required for short-haul transportation and last-mile connectivity. The growth of
this segment indicates an increase in consumption demand. The LCV segment can be classified into goods
carriers and passenger carriers.

Chart: Segment-wise market share of MHCVs & LCVs in India

The MHCV segment contributes to around 34% of total CV sales in India, while the LCV segment
contributes to about 66% share in H1FY23. The MHCV segment can be further classified into two parts –
Trucks and Buses. The LCV segment can be classified into goods carriers and passenger carriers.

• Key players in the CV Industry

The major players in the CV industry include Tata Motors Ltd, Ashok Leyland Ltd, Mahindra & Mahindra
Ltd, VE Commercial Vehicles Ltd, etc. The market share of different players in FY22 is depicted below:

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 Chart: Market Share of key CV players in H1FY23

About Tata Motors

TML was founded in 1945 under the name Tata Engineering and Locomotive Company. The firm
manufactures and sells motor vehicles for domestic and foreign markets. TML is part of the Indian
conglomerate Tata Group. The company owns ten manufacturing facilities in India, five in the UK and two in
Europe. The company also operates a vehicle and engine manufacturing facility in China through a joint
venture with Chery. Additionally, TML owns a total of 7 R&D/engineering and design centres
around the world. TML’s portfolio includes a wide range of motor vehicles, such as passenger cars,
SUVs, trucks, buses and defence vehicles.

Vision
By FY 2024, to become the most aspirational Indian auto brand, consistently winning by

• Delivering superior financial returns

• Driving sustainable mobility solutions

• Exceeding customer expectations, and

• Creating a highly engaged workforce

Mission
To innovate mobility solutions with a passion for enhancing the quality of life.

Offerings
1. Commercial vehicles- Cargo transportation, trucks, tippers, construcks, tractor trailers & other built-ins,
passenger transportation: vans, buses & coaches.
2. Passenger vehicles- Cars: hatchbacks, sedans and luxury cars.
3. Electric Vehicles
4. Vehicle Financing

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 CHAPTER 2
Framework for the study
Objectives of Study
1. To analyse the manufacturing processes, plant/layout, and sustainability practices of Tata Motors'
commercial vehicles segment.
2. To examine the role of innovation in Tata Motors' operations management strategy, including the
development of new products, services, and business models.
3. To assess the impact of globalisation on Tata Motors' operations management practices, including
managing global supply chains, international partnerships, and cross-cultural communication.
4. To explore sustainability initiatives and environmental practices.

Limitations of Study
1. Data availability: The report may be limited by data availability and quality. Tata Motors may keep all
of its operational data private, which may determine the depth and accuracy of the report.
2. Scope of analysis: The report may be limited by the scope of the study. For example, if the report only
focuses on the commercial vehicles segment of Tata Motors, it may not provide a comprehensive picture
of the company's overall operations.
3. Subjectivity: The report may be limited by the subjective opinions of the authors or researchers. For
example, different analysts may interpret the same data differently or use different methodologies to
analyse the data.

Model of study
Operations management (OM) is the administration of business practices within an organisation to achieve
the highest efficiency possible. Operations management aims to convert materials and labour into goods and
services as efficiently as possible. Corporate operations management professionals strive to maximise net
operating profit by balancing costs and revenue. Understanding issues, establishing performance measures,
collecting relevant data, analysing with scientific tools, and developing efficient solutions are all part of
operations management. A set of problem analysis tools and techniques is essential for success.

Operations management deals with various organisational issues that differ in terms of time frame, problem
nature, and resource commitment. Simple problems, such as dealing with a surge in demand or rerouting
jobs, can be solved quickly. In contrast, decisions about plant location, capacity expansion, and product
offerings require more resources and time. Alternative methodologies for dealing with these issues are
provided by operations management.

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Operations systems use transformation processes that convert inputs into outputs. This process's design,
planning, and control are prioritised by operations management.

By controlling operations, operations management aims to reduce costs and generate revenue. This
necessitates using an effective performance evaluation system to track progress and identify areas for
improvement. As a result, developing evaluation systems and methods to achieve targeted performance
measures is part of operations management.

Principles of operations management- by Dr Richard Schonberger

• Team up with customers- Understand what they buy and how they use it, and organise product families
accordingly.

• Continuous and rapid advancement- Aim for continuous improvement to consistently deliver the best
quality, a faster response to customer demand, and maximum flexibility. As a result, it provides more
value and flexibility.

• Unified purpose- Participate frontline employees in strategic discussions to ensure they understand the
purpose of their work and have a say in what changes are made.

• Know the competition- Know their customers, best practices, and competitive advantages.

• Maintain your equipment- Instead of making a new purchase, consider improving current assets first.

• Simply "best" equipment- Keep the equipment as simple and flexible as possible while remaining
affordable.

• Minimize human error- Upgrade the equipment and hold front-line employees accountable.

• Cut time- Reduce the time it takes for a product to reach a customer by speeding up processes and
delivery.
*Note these are some and not all of the principles listed by Dr Richard Schonberger

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 CHAPTER 3
Analysis & Findings
Tata Commercial Vehicles
‘CONNECTING ASPIRATIONS’ THROUGH INNOVATIVE MOBILITY SOLUTIONS

Tata Motors Limited (TML) is one of India’s biggest automobile manufacturing companies with an
extensive portfolio of integrated, smart and e-mobility solutions.

Product Line
Product Innovation Accelerating Growth
Their wide range of CVs includes the globally benchmarked Tata Prima, Signa and Ultra trucks in the
MHCV & ILCV segments; the category-defining Tata Ace in the SCV segment; the Tata Intra, India’s
first compact truck; and the Tata Yodha in the Pickup segment. In FY22, they launched their product with
exciting variants focused on sustainable mobility solutions.

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Key Highlights FY22

• Improved market share by +250 bps while gaining across all four segments.

• Introduced 80+ products, 120+ variants in FY22.

• ACE EV launched with a strong order book of 39,000 vehicles.

• Expedited digitalisation journey: Upgrade Fleet Edge, connected vehicle platform. Launched E-
Dukaan, an online spares marketplace.

• Strengthened play in EV buses through an own maintain and operate model offered at a per-km rate.

Financial Metrics

Strategic Overview
They want to continue to focus on the megatrends impacting the CV industry. The aim is to strengthen their
leadership position, leveraging new growth areas in products and services.

• Digitalisation: Continue to pursue digitalization across the value chain aggressively.

• Non-Vehicle and International businesses continue to be a clear priority.

• Green mass-mobility solution strengthens presence in EV buses and fleet contracts

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Production System

Tata Motors is one of India's leading manufacturers of commercial vehicles and is known for its extensive
use of operations management practices. Some of the critical operations management practices used by Tata
Motors in its commercial vehicles division are:

• Lean manufacturing: Tata Motors follows lean manufacturing principles to ensure the efficient use of
resources, reduce waste and enhance production efficiency. The company has implemented the 5S (Sort,
Set in Order, Shine, Standardize and Sustain) system in its manufacturing plants to improve safety,
cleanliness, and efficiency.

• Modular platform strategy: Tata Motors uses a modular platform strategy to develop its commercial
vehicles. The company has developed a range of modular platforms that can be customised to meet the
specific needs of its customers. This approach helps Tata Motors reduce development time and costs
while improving product quality.

• Just-in-time (JIT) production: Tata Motors uses a just-in-time (JIT) production system to reduce
inventory and improve production efficiency. The company has established a network of suppliers and
logistics providers to ensure that parts and components are delivered to its manufacturing plants on time
and in the right quantities rather than producing large batches of products in advance.

• Automation: Tata Motors has invested in automation technologies to improve the efficiency and
consistency of its manufacturing operations. The company uses advanced robotics and automation
systems to perform welding, painting, and assembly tasks.

• Quality management: Tata Motors strongly emphasises quality management in its commercial vehicles
division. The company has implemented a Total Quality Management (TQM) system to ensure that
every stage of the manufacturing process is optimised for quality, efficiency, and safety.

• Service network: Tata Motors has an extensive service network to support its commercial vehicle
customers. The company has established a network of authorised service centres and mobile service vans
to provide maintenance and repair services to its customers.

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Plant location: Jamshedpur

Tata Motors' first manufacturing facility, the Jamshedpur Plant, opened in June 1945. It has cutting-edge
manufacturing and assembly lines that can turn out a medium or heavy truck every five minutes. The plant
was awarded World Class Quality Level III certification in December 2017.

Tata Motors' commercial vehicle production in Jamshedpur is built on innovation and global technology.
Through technological collaboration with Daimler-Benz of Germany, it pioneered global trucking
technology in India with the first commercial vehicle rolled out of the Jamshedpur plant. Since then, the
plant has supplied India with some of its most technologically advanced and high-performing medium and
heavy commercial vehicles (M&HCV) for the civilian and defence sectors.

Over 200 models are produced here for local and export markets, which include multi-axle trucks, tractor-
trailers, tippers, and special application vehicles.
Jamshedpur also has a world-class engineering and research centre that can design complex vehicles using
3D visualisation and integrating intelligent electronic vehicular control systems and hybrid technologies.
The plant is home to a world-class test track dating back to 1955 as India's first test track.

Fact File-

• ERC, world-class test track, test incentres, engine factory, frame factory, foundry, and vendor park are
among the facilities.

• World-class Indoor & Outdoor test track

• Jamshedpur has India's cleanest and greenest foundry, with a capacity of 40,000 metric tonnes.

• Area: 603 acres, plus a 1200-acre township.

• The number of permanent employees is 7755.

• Jamshedpur is the only plant with its hospital and township (Tata Motors Hospital) (Telco Township).

Tata Motors Jamshedpur plant layout

The Tata Motors Jamshedpur plant's manufacturing and assembly lines can roll out a medium or heavy truck
every five minutes. It houses various facilities such as the Engineering Research Centre (ERC), world-class
test track, testing centres, engine factory, frame factory, foundry, and vendor park.

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The plant layout is designed to optimise the production process, improve efficiency, and reduce costs. The
manufacturing process at the Jamshedpur plant is organised in a flow line, which involves a series of
interlinked and interconnected steps. The plant follows the just-in-time (JIT) and Kaizen production
systems, which aim to reduce inventory levels and waste, increase efficiency, and improve quality.

The plant layout at Jamshedpur is also designed to accommodate various types of commercial vehicles,
ranging from multi-axle trucks, tractor-trailers, and tippers, to special application vehicles catering to the
civilian and defence sectors. The plant has also established its hospital and township, home to its employees
and their families. The plant has achieved various milestones in its history, including producing the first
truck with the Tata 'T' logo in 1969 and reaching a production milestone of two million vehicles in 2013.

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Plant location: Pune

Tata Motors' Pune facility is located in Maharashtra's Pimpri-Chinchwad industrial belt. This facility's state-
of-the-art R&D centre sets the standard for automotive research and development in India. The Pune facility
also houses some of the best manufacturing facilities in the automotive industry, such as its Product
Engineering Division, which has one of the country's largest and most versatile tool-making divisions.

The Pune plant is the most versatile of Tata Motors' manufacturing facilities, producing commercial and
passenger vehicles. It boasts of providing more value per vehicle because it is a highly vertically integrated
plant in core processes such as engines, transmissions, paint shops, etc.

The commercial vehicle plant at the facility produces around 60 base models with three or four variants
each. Six assembly lines handle the diverse range of vehicles that leave the plant, such as HMCV, ILCV
trucks, ICV bus chassis, ICV Ultra range trucks and bus chassis, and so on. Working in two shifts, it can
produce 730 vehicles per day. Tata Motors' Defense vehicle line is also manufactured here.
The ERC is equipped with state-of-the-art testing facilities like:

• Outdoor testing

• Indoor testing (testing individual components, sub-assemblies, various vehicle systems like wipers, door
locks, window winding, etc.)

• Materials lab

• Homologation and product evaluation

• Noise, vibration and harshness

• Advanced engineering (hybrids, EVs, etc.)

• Electronics

• Crash testing

• Environmental science and IPR

• Climate control

• Engine development and testing

• Prototyping

• Styling studio

• Vehicle integration teams

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Fact File-

• The commercial vehicle plant was established in 1964.

• Asia's first anechoic chamber

• Sprawls over 930 acres.

• The largest engine development facility in India

• India's first comprehensive vehicle crash testing facility

• India's only full-fledged climate testing facility

• The only pedestrian testing facility in India

• World-class press shop technology, a cutting-edge CED painting facility, a robotic flexible welding cell,
conveyorized vehicle assembly lines, steering robots, BUZZ testing, complete environment testing, and a
suspension parameter measuring machine are among the facilities.

Tata Motors Pune Plant layout

The Tata Motors plant in Pune is one of the company's critical manufacturing facilities, producing a wide
range of commercial and passenger vehicles. The plant layout maximises efficiency and productivity while
minimizing waste and reducing costs.

The plant has a well-planned layout that ensures smooth material flow and optimal use of resources. The
layout minimises the distance travelled by materials and components, reducing material handling time and
costs. The plant has a dedicated material handling system that includes conveyors, cranes, and other
automated equipment, which ensures the safe and efficient movement of materials and components
throughout the facility.

The plant layout emphasises safety and ergonomics, with dedicated workstations that minimise fatigue and
discomfort. The workstations have modern tools and equipment that make the work more accessible and
efficient.

In addition to the main manufacturing facilities, the Tata Motors plant in Pune also has a research and
development centre responsible for developing new products and technologies. The R&D centre is centred
on advanced equipment and testing facilities, enabling the company to design and develop high-quality
products that meet the changing market’s needs.

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Inventory Management

Inventory management is crucial to any business, including Tata Motors Commercial. Effective inventory
management helps a company optimise its cash flow, reduce carrying costs, minimise stockouts, and
ultimately enhance customer satisfaction. Tata Motors Commercial can use various inventory management
techniques such as ABC analysis, just-in-time (JIT), economic order quantity (EOQ), and safety stock to
manage its inventory.

Kanban Cards: Tata Motors uses Kanban cards to signal when parts or components are needed in
production. When a part or component is used, the Kanban card is attached to the container or pallet and
sent back to the supplier to request a replacement. This helps to ensure that inventory levels are kept at
optimal levels, and that production does not halt due to a shortage of materials.

Pull System: Tata Motors uses a pull system in which production is based on customer demand. The
Kanban system helps to support this by signalling when materials or parts are needed in the production

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process, ensuring that only the required quantity of products is produced, reducing inventory costs, and
minimising waste.

Continuous Improvement: Tata Motors continuously reviews and improves its Kanban system to optimise
inventory levels and improve the supply chain. They analyse lead times, production rates, and demand to
identify areas for improvement and implement changes to improve efficiency.

Procurement
Tata Motors Commercial Vehicles Division’s procurement pointers to note are:
• Technology-driven procurement- SAP & VCM
• Strategic subsidiaries & JVs- TACO group of companies, Tata Cummins
• Centralised strategic sourcing for critical components- FIP’s Steel etc.
• Group resources: Tata Steel & Tata International
• Localized supplier base at manufacturing levels helps with low inventory levels

Quality
All Tata Motors’ commercial vehicle processes are subject to focused quality control. They consider how a
step might be completed more quickly and effectively to increase process efficiency. They employ tools for
continuous improvement, defect prevention, and the reducing action and waste in the supply chain as part of
their quality management system (QMS).
As a result of adopting a "process approach," which emphasizes outputs and customer satisfaction first, they
work their way backward backwards through process to determine what can be done to improve customer
satisfaction. The plan-do-check-act (PDCA) philosophy of total quality management (TQM) is deeply
ingrained in this system.

Total Quality Management

Total Quality Management (TQM) is a management framework based on the belief that an organisation can
achieve long-term success by having all its members, from entry-level workers to top executives, focus on
improving quality and, as a result, providing customer satisfaction. . TQM prescribes a number of
approaches for organizations to take in order to achieve this, with the path to successful continuous
improvement centred on the use of strategy, data, and effective communication to in still quality into the
organization's culture and processes.

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Plan-Do-Check-Act

The PDCA/PDSA framework is effective in all styles of businesses. By dissecting processes or products into
smaller steps or development stages and looking for ways to improve each, it can be used to improve any of
them.

• Plan
First, identify and comprehend one’s problems or opportunity before developing a plan. Its possible that the
quality of a finished product isn't high enough or that a particular step in your marketing strategy could
produce better results.
Investigate all of the available information. Develop a robust implementation plan after developing and
screening ideas.
Make sure to define your success criteria clearly and make them as quantifiable as you can. In the Check
stage, you'll come back to them later.
• Do
Test a potential solution safely with a small-scale pilot project after you've identified it. This will
demonstrate whether your suggested changes produce the desired results and, if not, will cause the least
disruption to the rest of your business. For instance, you could plan a trial within a division, in a specific
region, or with a specific people.
Collect data as you run the pilot project to demonstrate whether the change has succeeded. This will be
useful in the following step.
• Check
Assess the success of your idea by comparing the outcomes of your pilot project to the standards you
established in Step 1, Plan.
If not, go back to Step 1. If so, move on to Step 4, Act.
• Act
Here is where you put your solution into action. But remember that PDCA/PDSA is a loop, not a sequential
process. The improved method or end new standard, but one should keep on looking to improve it further.

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Certifications
To provide superior experiences, Tata Motors ensures that all its facilities use standardized systems. Their
manufacturing divisions have received certification for the OHSAS 18001 standard, ISO 9001, ISO 14001,
and ISO TS 16949 (QMS standard for the automotive industry) (Occupational Health and Safety). They
have made it mandatory for all of their suppliers to adopt the ISO 9001/TS 16949 QMS framework in order
to ensure dependable and responsible suppliers for automotive production and service parts. The quality,
environmental, and safety management systems are also promoted to their dealers.
They have created an excellence culture throughout their operations by adhering strictly to the highest
standards in quality. This results from their dedication to the well-being of people, the environment, and the
entire ecosystem.
To reach higher benchmarks on Quality, Tata Motor’s commercial vehicles has internalised global best
practices and sustainable technologies within the organisation

Six Sigma

Six Sigma is the methodical use of statistical tools for problem-solving that identifies wasteful costs and
directs you to specific actions you should take to improve. To gain a thorough understanding of performance
and the major factors influencing the caliber of a company's goods and services, these tools employ a refined
methodology of measurement and discovery. Six Sigma represents the pinnacle of quality and the virtually
complete elimination of flaws from all products and processes within an organization. Customer satisfaction
rises as sigma level rises, while cycle time decreases and costs decline at the same time. Six Sigma is a
method for mathematically analyzing particular issues in production or other areas of a business's
operations. It is resolved using a methodical system. Therefore, Six Sigma is a Business Philosophy to
Increase Customer Satisfaction, a Tool to Remove Process Variation, and a Metric of World Class
Companies Allowing Process Comparisons.

It has two significant methodologies – DMAIC and DMADV. DMAIC is an acronym for define, measure,
analyse, improve and control. It is one of the most widely used methodologies in the world. It focuses on
improving the organisation’s existing products. This method focal point is to find and eliminate the
problem's underlying cause, seen that the improvement is maintained. Whereas ADV they have design and
verify instead of improve and control, also called DFSS. Here the organisation creates a new product or
service from scratch.

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DMAIC
Tata Motors held a DMAIC procedure for preventing scoring: surface damage caused by accumulated small
seminors caused by sliding under inadequate lubrication or harsh operating conditions, on bearing shells, in
the year 2014.

Following was the time plan followed by them:

The departments that were involved are:

Define:
Now the problem they identified was scoring in bearing shells of main bearing and crack pin bearings, due
to which many engines were brought for inspection.
This problem was taken to determine and eliminate the causes of bearing and reduce the possibility of the
same. They created a operation sequence for bearing inspection.

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Measure:
Month wise bearing inspection details –

They categorised the types of scoring, recorded them with photographs and formulated time-wise charts for
bearing inspection.

Analyse:
Following the possible factors of bearing scoring were analysed, and a cause and effect diagram of all the
reasons was mapped.

Improve:
To solve the problem, they spoke to engineers and made charts for timely lubricating and replacing the parts
after using them for the mentioned hours.
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Control:
Once those improvements were implemented, they ensured the sustaining measures were applied throughout
by continuous monitoring.

First-Time Right Capability

In Tata Motors, initiatives like "first time right capability" and a "quality management system" have a
significant effect on the organization while acting as a standard set of guidelines and a yardstick for
improvement.

The concept of ensuring that any procedure is performed correctly the first time and every time is known as
'First Time Right,' and it stems from Six Sigma. Manufacturers, for example, can use it to ensure that the
first time yield is 100% and that no rework or scrap is required.
Of course, no manufacturer would consciously choose between having a perfect FTR score and having
100% first time yield. However, existing operational inefficiencies on the shop floor are likely to be
impeding the perfect score.
FTR is a valuable KPI to track because it can reveal flaws in the design and execution of shop-floor
processes and highlight avoidable losses. A 'First Time Right' score, on the other hand, cannot contribute to
continuous improvement if manufacturers are unable to act on it.

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 CHAPTER 4
Conclusions, Suggestions & Recommendations

The commercial vehicles segment is expected to continue its growth trajectory from the structural upcycle
over the near to medium term. Given the improvement in the macroeconomic conditions, the sales are
expected to remain healthy, backed by demand from construction and infrastructure development projects
and e-commerce sectors. Replacement demand is also likely to increase, prompting fleet
operators to shift towards more fuel-efficient vehicles with better loading capacity. Additionally, the vehicle
scrappage policy for commercial vehicles will be implemented from April 2023. Commercial cars older
than 15 must undergo a mandatory fitness test; if they fail the test, they must be replaced. This will again
increase the replacement demand for commercial vehicles.

The higher revenue growth of the TATA Motors Commercial Vehicles segment was driven by an improved
product mix, better realizations and pricing actions taken to mitigate the impact of commodity inflation.
However, profitability remained under pressure as
severe commodity inflation dented the margins. Operating leverage from higher revenues drove near-
breakeven EBIT margin in FY22.

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 Bibliography

• https://www.academia.edu/37062520/TOP_10_SUPPLY_CHAIN_MANAGEMENT_PAPERS_RECO
MMENDED_READING

• https://www.researchgate.net/publication/278029600_A_Study_of_Evolution_and_Future_of_Supply_C
hain_Management

• Operations and Supply Chain Management- Robert Jacobs

• https://www.icmrindia.org/casestudies/catalogue/Operations/OPEA003.htm

• https://www.academia.edu/6512117/Tata_motors

• file:///C:/Users/DELL/Downloads/EMIS%20Insights%20-
%20India%20Automotive%20Sector%20Report%202022%204th%20Quarter.pdf

• https://www.autocarpro.in/news-national/tata-motors-boosting-capacity-to-sell-half-a-million-cars-
annually-81399

• https://www.tatamotors.com/media/press-releases/

• https://www.mindtools.com/as2l5i1/pdca-plan-do-check-act

• https://www.techtarget.com/searchcio/definition/Total-Quality-Management

• https://www.tatamotors.com/innovation/

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Annexure-I

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 Annexure-II

Government Policy
• Main Bodies
The Department of Heavy Industry (DHI), part of the Ministry of Heavy Industries & Public Enterprises,
is responsible for India’s automotive industry. It also administers the Automotive Research
Association of India (ARAI). The Society of Indian Automobile Manufacturers (SIAM) is a non-profit
The national body represents all primary vehicle and vehicular engine manufacturers in India. The
Automotive Component Manufacturers Association (ACMA) brings together more than 800
manufacturers who contribute more than 85% of the auto component segment’s turnover. The
Confederation of Indian Industry (CII) is a non-government, non-profit organisation that plays a
proactive role in industry policy development in India. The Society of Manufacturers of Electric
Vehicles (SMEV) is a Delhi-based body representing electric vehicles and component manufacturers in
the passenger vehicle, bus, and two- and three-wheeler segments.

• Automotive Mission Plan (2016-2026)

India’s AMP 2026 has set four significant objectives for developing the Indian automotive industry.
First, it aims to increase the contribution of the automotive sector to the country's GDP from 7% in
FY2016 to over 12% in FY2026. Second, it seeks to create 65mn new direct and indirect jobs (compared
to an increment of 25mn in the previous decade). The third objective is to promote safe, efficient and
comfortable mobility with an eye on environmental protection and affordability. The fourth goal is to
increase the share of motor vehicle exports over total output (the industry can
increase the percentage to 40% by FY2026). However, the economic deceleration in FY2020 and the
adverse effects of the COVID-19 pandemic in FY2021 has negatively affected the investment capacity of
key players. In September 2020, SIAM declared that government support for demand stimulus is
required to achieve the goals set by AMP 2026.

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