Operations Management Tata Motors

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BSM311-Operations Management Submission 7th January 2013

Arif Tigadi 1109988

Operations Management Strategy of Tata Motors

Word count : 5051

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BSM311-Operations Management Submission 7th January 2013

Arif Tigadi 1109988

Executive summary: This report discusses the Operation management of India’s leading and the largest automobile manufacturer “Tata Motors”. In today’s business environment Operations management plays an important role in deciding the success of the company .Operations management uses the input resources to produce output to fulfil the market requirement. This report discusses the operation strategy adopted by Tata motors used in the manufacturing of its vehicles in India and its strong value chain which has led to the innovation of new developments, one of which is world’s cheapest car “Tata Nano”. After continuous improvement in their operations today, Tata motors are rapidly increasing their footprints globally. With the recent acquisition of two iconic brands Land Rover and Jaguar by Ford motors the company has entered into high end luxury segment. The automobile industries in the world adopts either a low cost strategy or a High cost strategy , but Tata motors have been involved in both the strategies , while “Tata Nano” the world’s cheapest car meets the demand of common man the acquisition of Jaguar and Land rover shows us that Tata motors is targeting high end consumers. If Tata motors are successful in this operational strategy they will have a high margin and high volume revenue which will diminish each other’s risk. The valuable theories and models such as Transformation model, Four V‘s ,Value chain analysis and Michael Porters diamond model will show the strength and weakness of operations management adopted by Tata motors and will give the detail understanding of the insight of the value added by each activity to get the required output.

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BSM311-Operations Management Submission 7th January 2013

Arif Tigadi 1109988

Table of Contents Executive Summary 1. Introduction to Tata motors. 2. Strategy of Tata motors operation management 2.1 Transformation process model 2.2 Transformation process model for Tata motors 2.3 A typology of operations 3. Nature of product and services of Tata motors 4. Operational objectives of Tata motors 5. Manufacturing and product design of Tata motors 5.1 Product design 5.2 Manufacturing process and flow at Tata motors 6. Quality management at Tata motors 7. Tata motors strategy for new product introduction 8. Support of information technology for Tata motors operation 9. Value chain analysis 9.1 value chain analysis for Tata motors 10. Measuring performance improvements 11. Conclusion and recommendation for Tata motors operations 3 4

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BSM311-Operations Management Submission 7th January 2013 1. Introduction to “Tata Motors Limited”

Arif Tigadi 1109988

Tata Motors Limited is India's leading and largest automobile manufacturer, with consolidated revenues of INR 1, 65,654 cores (USD 32.5 billion) in 2011-12. It is the leader in commercial vehicles in each segment, and among the top three in passenger vehicles with winning products in the compact, midsize car and utility vehicle segments. It is the world's fourth largest truck and bus manufacturer. (http://tatamotors.com/know-us/company-profile.php) Tata Motors was established in 1945 and has its presence spread across India and the world. First vehicle from Tata Motors was rolled out in 1954 and today 7.5 million Tata vehicles ply on Indian road. Over 55,000 employees are guided by the vision to be “best in manner in which we operate best in the products we deliver and best in our value system and ethics”. (http://tatamotors.com/knowus/company-profile.php). Tata Motors is the first Indian company from the engineering sector to be listed in New York Stock Exchange (September 2004).Through its subsidiaries and associate companies it has emerged as an...
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