TATA MOTORS

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TATA MOTORS:

TATA MOTORS

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Malaysia* Thailand Bangladesh * Nepal, Sri Lanka Kenya* Russia* Ukraine* U.K. Italy Senegal Afghanistan Uzbekistan Brazil South Africa* Egypt Saudi Arabia Iraq, Iran China South Korea* LATAM West Africa North Africa West Europe Central Asia East Asia South Asia South East Asia West Asia East Africa South Africa * Assembly Operations also OTHER COLLABORATIONS/M&A & JVs Tata Daewoo Commercial Vehicle Hispano in Spain & Marcopolo In Brazil JV with Jardine Matheson for ConcordeMotors Technology Tie Ups at Spain,Italy Global Footprint 2

Inventory Management on Tata Motors:

Inventory Management on Tata Motors Prepared by:- Manank dave (11041) Vijay Devjani ( 11044) Hemal Rawal (11123) Nisha Nankani ( 11089) Vina Mulani ( 11085) Mruntunjay Bhartiya ( 11012)

Company Profile:

Company Profile Tata Motors Limited is India’s largest automobile company, with revenues of Rs.35651.48 crores (USD 8.8 bn ) in 2007-08. It is a leader in commercial vehicle in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize cars and utility vehicle segments. The company is world’s fourth largest truck manufacturer, and the world’s second largest bus manufacturer . Tata Motors is also expanding its international footprint, established through export 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 and South America. It has franchisee/joint venture assembly operations in Malaysia, Kenya, Bangladesh, Ukraine, Russia and Senegal. Tata Motors recently acquired the Jaguar and Land Rover businesses from Ford Motor company for a net consideration of US $ 2.3 bn.

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Products: Passenger Cars : • TATA Indica • TATA Indigo • TATA Indigo Marina • TATA Indica Vista • TATA Nano Utility Vehicles (SUV & MUV): • TATA Sumo • TATA Safari

Why It Is Important to Understand the Cost Relationships in Production and Inventory Management:

Why It Is Important to Understand the Cost Relationships in Production and Inventory Management They affect the economic efficiency (profits) of the firm. An understanding of these relationships helps managers make more effective production decisions. As a result, managers are better able to meet their financial objectives

Management Information Systems:

Management Information Systems MIS provides Accurate and timely production and cost information on all phases of the business Data in the proper form needed for decision making Accounting information that will allow fast, accurate development of business financial documents A means for efficiently and effectively monitoring and controlling business production costs

Inventory Management:

Inventory Management Reasons to hold inventory Matching supply with demand Prevent stockouts Lower purchasing costs Reasons not to hold inventory High maintenance cost High protection cost Depreciation and obsolescence Taxes

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Procurement E procurement initiative. Global Sourcing Team – China , a key destination for sourcing essential items like tires, power steering units etc., Steel procured from Belarus Long term relationships with a stable and loyal pool of suppliers. Technology driven procurement – SAP and VCM. Strategic subsidiaries & JV’s – TACO group of companies , Tata Cummins Centralized Strategic Sourcing for key components – FIP’s, Steel etc. Group resources – Tata Steel and Tata International . Localized supplier base at mfg. locations – low inventory levels. 9

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Optimize the value chain using distributed Manufacturing The power of IT has been extensively leveraged State-of-the-art CAD and CAM services integrated design across multiple disciplines IT helped the company shrink the design cycle time BSM tools from BMC Software played a key role TML decided to adopt IT service management concepts outlined in the ISO 20000:05 international standards, as well as best practices outlined in the IT Infrastructure Library® (ITIL®) Version 3 Process Benchmarking 10

Process Benchmarking :

Process Benchmarking service-oriented management architecture that treated services as assets and managed them on a life cycle basis. In-house manufacturing capability with CNC manufacturing operations have implemented Six-sigma, Kaizen & TPM . 11