Management Information System in Tata Motors

MANAGEMENT INFORMATION SYSTEM
IN TATA MOTORS
INTRODUCTION
The use of information technology, people, and business processes to record,
store, and analyse data to provide information that decision makers can utilise to
make day-to-day decisions is known as management information systems
(MIS). Management Information Systems is the full version of MIS. The goal of
management information systems (MIS) is to harvest data from a variety of
sources and create insights that help businesses grow.
Tata Motors is the largest vehicle manufacturer in India. With winning products
in the compact, mid-size car, and utility vehicle segments, it is the market leader
in commercial vehicles in each group and the second largest in the passenger
vehicle market in India. The firm is the world's second-largest medium and
heavy bus manufacturer and the fifth-largest medium and heavy commercial
vehicle manufacturer.
Tata Motors has a presence across the length and breadth of India, having been
founded in 1945. Since the first one was released in 1954, over 3.5 million Tata
vehicles have been driven on Indian roads. The company's manufacturing base
is dispersed across numerous locations, and it is backed up by a nationwide
dealership, sales and service network, and spare parts network with over 1,200
touch points.
BACKGROUND
Tata Motors is a major division of the Tata Group, India's largest company with
major holdings in steel, information technology, commercial and passenger
vehicles, chemicals, and telecommunications. The 140-year-old Tata Group,
dubbed "India's General Electric" by some, is well-known not only for its
economic acumen but also for its numerous social and educational initiatives
that have made significant contributions to India’s development.
Tata Motors is a crucial growing business for the Tatas, accounting for roughly
20% of the company's overall sales. It primarily produces heavy and light
commercial vehicles, with Ratan Tata spearheading the company's move into
passenger cars. Tata trucks are the market leader in India for medium and heavy
commercial vehicles (MCVs and HCVs), accounting for around 65 percent of
the market.
With teething troubles on some of its models (and heavy competition in the
Indian passenger car market), such as the Tata Indica, the numbers for
passenger vehicles are less remarkable (compact car). TTM also sells the Tata
Safari SUV and Tata Sumo MUV, as well as a slightly modified version of the
Indica dubbed the Indigo, in the mid-size car sector.
The $2200 (Rs. 1 lac) automobile, TTM's most ambitious project, was unveiled
in March 2009 and is by far Tata's biggest push into the passenger car category.
At this pricing bracket, there were no competitors. The "bottom of the pyramid"
- or lower middle-class to middle-class Indians wishing to upgrade from a two-
wheeler to a car - was the target market.
INFORMATION TECHNOLOGY BACKGROUND

IT is seen as a critical global role for Tata. It is part of the management services
division in terms of management. The Chief Information Officer's primary
responsibility is to supply each department with the necessary IT resources and
tools, as well as to assess whether Tata Motors should adopt new technologies
and IT solutions.
In close collaboration with management and Tata Technologies, a wholly
owned subsidiary of Tata Motors that provides business and IT services, he
creates a three-year strategy. The basic IT strategy is determined by this plan.
The facts are formalised in an IT balanced scorecard, which lists the various
initiatives in order of priority for the following 12 months.
A distinction is made between project work and maintenance chores in general.
Both are the responsibility of Tata Technologies. External specialists from
relevant fields are consulted as needed. Any disagreements about the long-term
implications of specific requirements are resolved in collaboration with the
business team. The focus is on striking a balance between business benefits and
the necessary investments. A WAN architecture consists of a combination of
dedicated intercity / intra-city links, VSATs, and VPN connections through a
service provider's network. Monitoring tools such as Cisco Works, Packeteer,
and other advanced tools are used to continuously monitor the LAN and WAN.
SAP as ERP Package

Tata Motors has production units in Pune, Jamshedpur, and Lucknow in 1998. It
has R&D centres in South Korea, Spain, and the United Kingdom. Tata Motors'
corporate headquarters were in Mumbai. It employed 1,400 engineers and
scientists. There were 1200 touch points in its spare part dealer network. It had
27 spare part warehouses with approximately 700,000 different materials in
them. The bill of materials contains 17 levels. It has 42 sales and regional
offices. There was no online real-time data available due to its sheer size and
scattered units.
To make matters worse, the use of incorrect real-time data resulted in
production losses. There was no integration with the current legacy system. .
Because the sales, finance, and production planning systems were all separate,
information flow across the firm was extremely inefficient. Collaboration
between vehicle makers and dealers was required. Tata Motors has a manual
dealer management system in which each dealer is responsible for their own
details. The environment produced inconsistent data with legacy-based systems,
making interpretation difficult and resulting in wasteful capacity and spare parts
planning. Tata Motors needed to scale up manufacturing and boost capacity,
hence the process had to be backward integrated.
SAP for Automotive solutions helped Tata Motors in the following activities
SAP's SAP for Automotive solution portfolio, created exclusively for the
automotive industry, helps firms address business issues and capitalise on new
opportunities. SAP helps firms to manage and integrate important business
operations and cooperate with partners across the value network, based on more
than 30 years of experience working with automotive organisations. SAP®
solutions are now used by over 1,600 automotive companies across the world.
SAP for Automotive serves all aspects of the automotive sector, including
supply chain planning, manufacturing, and logistics, sales and marketing, and
customer service. OEMs can get help with everything from research and
development through planning, manufacturing, and vehicle end-of-life issues.It
equips suppliers with the resources they need to manage product development,
quoting, production, procurement, and logistics. It also allows sales and service
businesses to handle operations like vehicle configuration, service-parts
shipping, and warranty claims, among other things.
SAP for Automotive is developed to assist automotive businesses of all sizes.
Finance, regulatory compliance, human capital management, and corporate
services are just a few of the operations that require tools and capabilities.
SAP for Automotive solutions helped Tata Motors in the following activities:
 Encourage flexible manufacturing and procurement.
 Make model-options planning.
 Oversee the entire vehicle order to delivery process.
 Produce and distribute components
 Handle warranty claims in a timely and accurate manner.
 Streamline the process of ordering service components.
 Collaborate on engineering and design projects.
 Program and project management should be improved.
 Deploy shared enterprise services
 Gain a better understanding of and control over operations.
 Enhance the administration of corporate assets
 Ensure that all government requirements are followed.
Supplier Relationship Management:

Tata Motors was the first customer to apply and deploy all of SRM's scenarios.
These are the following::
 Procurement via self-service.
 Content and Catalogue Management
 Spend Analysis and Contract Monitoring in a Strategic Purchasing
Scenario
 Scenario of Sourcing
 Module for Supplier Self-Registration.
 Auction will be held live. Scenario of Cockpit Order Collaboration with
Full Goods Movement Support.
 Retrospective Price Modifications Contract Re-Negotiation Scenario
 People Integration, Process Integration, and Information Integration using
SAP Net Weaver.
CONCLUSION :
Following an internal reengineering exercise in 1998, Tata Motors took the first
major step toward a contemporary IT landscape by deploying SAP R/3 for core
business procedures. SAP enabled the multiple sites to boost automation and
establish a foundation for linked procedures.
The installation had noticeable effects, but they were not far-reaching. At the
transaction level, improvements such as a more efficient way to acquire
information or a more carefully defined workflow could not be felt. Tata Motors
had to undertake a number of system improvements to meet performance
requirements due to the required process volume.
The organisation kept as near to the standard version as feasible by
consolidating five systems on one server with one database. The company as a
whole, as well as developers, are now considerably more involved. Tata Motors'
IT division has been run on the basis of "controlled programming" since the
adoption.

Management Information System in Tata Motors

Uploaded by

Copyright:

Available Formats

Management Information System in Tata Motors

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Management Information System in Tata Motors

Uploaded by

Copyright:

Available Formats

MANAGEMENT INFORMATION SYSTEM

INFORMATION TECHNOLOGY BACKGROUND

SAP as ERP Package

Supplier Relationship Management:

You might also like