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Role of Management Information System In Tata motors

About Tata Motor ‡ Established in 1945, Tata Motors presence extends across the length and breath of India.

Tata Motors is India’s largest automobile company and the second largest in the passenger vehicles market . ‡ Over 3.5 million Tata vehicles have driven on Indian roads since the first one rolled out on 1954.

The company’s manufacturing base is spread across multiple plants, supported by a

nation wise dealership, sales and services and spare parts network comprising of about 1200 touch points.

Reasons For Implementation of ERP

-Tata motors had its manufacturing plants located in Pune, Jamshedpur and Lucknow. Its R&D centers were located in South Korea, Spain And UK. The corporate office of Tata motors was located in Mumbai .It has 42 regional and sales offices.

-Its Spare part dealer network consisted of 1200 touch points. It has 27 spare part warehouses

comprising of over 7,00,000 lakh unique materials.

-Given its sheer size and its distributed units there were no online real time data available.

-Inappropriate real time data led to production loss.

-The sales, finance and production planning systems were independent of each other and hence, the information flow was very cumbersome.

-There exited a need for collaboration between vehicle manufactures and dealers.

Selection of SAP as the ERP Package

SAP helps TATA motors in following ways:

-Drive adaptive manufacturing and procurement. It supports multiple manufacturing strategies, including repetitive, lean, flow, assemble-to order, and forecast driven processes. Company can plan, execute, analyze, and control manufacturing operations in sequenced -build and just in time production environments. The company can draw on information about planning, accounting, HR,

materials, warehouse operation, plant maintenance, and quality to keep production in

tune with overall business requirements and customer demands.

-Perform Model Option Planning The portfolio offers fully integrated solutions for planning, pricing, configuration, order processing, availability checking, production, billing and financial reporting,

giving the company a consistent view of the product in sales orders, production

plans, and profitability analysis.

-Manage the complete vehicle order-to-delivery process Manufacturers, dealers and importers can collaborate on full range of activities associated with selling and delivering vehicles. SAP gives importers a powerful channel based tool for procuring, selling, distributing and tracking vehicles and service parts, while enabling dealers to easily configure, search for obtain, and track vehicles for their customers.

-Manufacture and deliver components Suppliers in all tiers uses SAP for Automotive to ensure compliance with customer mandates for receipt of material releases; to synchronize production with demand; for data capture and error-proofing on the shop floor; for packaging, labeling and shipping; and for generating advance shipping notifications to maximize operational efficiency and effectiveness.

-Handle warranty claims with efficiency and accuracy SAP helps in processing warranty claims and automating the claims payment process for increased efficiency. Company can analyze, components and vehicles to drive strategies based on an understanding of factors such as part failures and returned part pattern and participation pattern for a given recall campaign.

-Streamline the service parts process This helps in performing time-phased demand and replenishment planning while handling procurement warehousing, distribution and workload scheduling.

-Collaborate across engineering and design SAP solutions provide tools for internal and external collaboration at every stage of engineering, including design and production start.

-Strengthens the management of programs and projects SAP solution help them by providing them tool they need to plan, manage and control programs and projects of any size.

-Manage relationship with customers and partners It provides the company with CRM management tool needed to manage sales and service interactions with all partners in their value network including dealers, suppliers, customers.

-Understand and Control Operations in Greater depth Comprehensive tools for Analytics, forecasting, and reporting help company plan budget, optimize internal and external processes, improve sales planning and monitoring; and work with a complete picture of operations.

-Improve the management of Enterprise Assets Support for enterprise asset management covers the complete asset

life-cycle the includes the specification and design, development and

procurement, operation, maintenance and disposal helping the company reduce operating cost.

SAP modules

FI / CO Finance /
FI / CO
Finance /
Control SRM
Control
SRM
MM
MM
PP
PP
QM
QM
SD
SD
ESM PM
ESM
PM

Materials

Production

Quality

Sales &

Ext. Services

Plant

Management

Planning

Management

Distribution

Management

Maint.

IPMS
IPMS
CRM PLM
CRM
PLM

Integrated Production Management

SAP modules FI / CO Finance / Control SRM MM PP QM SD ESM PM Materials

Supplier Relationship Management

Customer Relationship

Product Life-Cycle Management

Management

Critical Success Factors

Some of the CSFs that TATA Motors took into consideration are:

-Improved Sales revenue

-Cost Reduction -Reduced Inventory -Improved production scheduling -Improved Productivity -Enhanced organization-wide communication

Benefits After Implementing

SAP Supplier Collaboration • Provide supplier with order management system. • Reduce manual effect of invoice
SAP
Supplier
Collaboration
• Provide supplier with order management
system.
• Reduce manual effect of invoice capture.
Knowledge Management • E-Learning is convenient and faster knowledge sharing is done.
Knowledge
Management
• E-Learning is convenient and faster
knowledge sharing is done.
Monitoring and Control • Operation support, Decision support, Strategy development support.
Monitoring
and Control
• Operation support, Decision support,
Strategy development support.

Growth Of TATA Motors

65 40 25 20 Pre 1990 Mid 1990d Yearly Y2ky 2003 3
65
40
25
20
Pre 1990
Mid 1990d
Yearly Y2ky
2003
3

KEY FINDINGS

Over 3,000 Tata Motors users now work with SAP solutions.

Tata Motors claims to have the widest range of SAP functionality of any SAP installation.

Improvements identified in general costs, purchasing, resource planning, logistics, and the process for providing important financial information .

SAP provided a strong IT infrastructure to support Tata Motors’ aggressive globalization plans.

References

http://www.scribd.com/doc/14038469/Mis-Role-in-Production-12

http://www.scribd.com/doc/43274742/MIS-in-TATA

http://www.scribd.com/doc/53010794/28076685-Role-of-Management-

Information-System-in-Tata-Motors

http://www.scribd.com/doc/54411600/Role-of-Management-Information-System-

in-Tata-Motors