TATA MOTORS

Global Footprint
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 North Africa Egypt West Africa Senegal LATAM Brazil West Asia Saudi Arabia Iraq, Iran South Africa South Africa* East Africa Kenya* South East Asia Malaysia* Thailand South Asia Bangladesh * Nepal, Sri Lanka West Europe U.K. Italy Russia* Ukraine* Central Asia Afghanistan Uzbekistan

East Asia China South Korea*

* Assembly Operations also

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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
Tata Motors Limited is Indias 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 worlds fourth largest truck manufacturer, and the worlds second largest bus manufacturer. Tata Motors is also expanding its international footprint, established through export since 1961. The companys 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.

 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
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

MIS provides
1. Accurate and timely production and cost information on all phases of the business 2. Data in the proper form needed for decision making 3. Accounting information that will allow fast, accurate development of business financial documents 4. A means for efficiently and effectively monitoring and controlling business production costs

Inventory Management
Reasons to hold inventory 1. Matching supply with demand 2. Prevent stockouts 3. Lower purchasing costs Reasons not to hold inventory 1. High maintenance cost 2. High protection cost 3. Depreciation and obsolescence 4. Taxes

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 & JVs TACO group of companies , Tata Cummins Centralized Strategic Sourcing for key components FIPs, Steel etc. Group resources Tata Steel and Tata International . Localized supplier base at mfg. locations low inventory levels.
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Process Benchmarking
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
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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.

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