TATA Motors’ Production Process: An Overview

A business process is a set of procedures that are frequently repeated by an organization to achieve a certain objective. This report discusses the production process of TATA Motors, which was established in 1945 and has a market value of $37 billion. The production business process includes processes for input, carrying out manufacturing tasks, preparing the product, and finally distributing it to the points of sale. The conversion of resources and raw materials into consumable commodities is a part of the business process. This section will analyze the production process at Tata Motors in particular. The operations involved in Tata Motors' business process include ordering raw materials supplies and equipment, producing the requested items, and then distributing the vehicles.  

ICON College of Technology and Management
Department of Business and Management Studies
BSc (Hons) Business and Management
DataLab: Generation, Analysis, Iteration
Coursework Title
Data Analytics Portfolio
Tutor: Dr S. Soroosh
Submitted by: Gokhan Kapucu
ID No:
Session: February 2023

Table of Contents
Introduction........................................................................................................................3
1. Task 1: Business Procedures and the Company.......................................................4
1.1 Business Process Map / Flow Chart....................................................................4
1.2: Principal/Crucial business Judgments....................................................................6
1.3: Digital Transformation of Business.........................................................................7
1.3.1 Inventory Management......................................................................................7
1.3.2 Recruitment.....................................................................................................7
1.3.3 Preserving Customer Data.................................................................................8
2. Task 2. Data Management Systems.............................................................................9
2.1 information / Data Management System..................................................................9
2.2 Database Management System.........................................................................10
3. Task 3: Business Intelligent (BL) tools........................................................................12
3.1 Possibilities For Smart Tools And Systems...........................................................12
3.2 Business Intelligent (BI) support............................................................................13
Conclusion.......................................................................................................................15
4. Reference list...............................................................................................................16
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Introduction
A business process, in its simplest form, is a set of procedures that are frequently
repeated by an organization to achieve a certain objective (Villanova University, 2022).
Numerous repetitions of a process are possible, and to make them effective and
efficient, they are frequently carefully designed and continuously adjusted. Contrarily,
putting procedures into place creates consistency, which makes it possible to give
customers goods, services, and customer support of a higher caliber. Business
processes and its related activities are the main talking point of the report that follows.
Business processes include, for instance, operational processes, sales processes,
human resources processes, and supply chain procedures. This paper will just discuss
the production process to make it simpler for the readers to grasp. The chosen business
is TATA Motors. At present, TATA Motors’s market value stands at $37 billion (Tata
Motors, 2021). Even though Jamsetji Tata established the TATA Group in 1868, TATA
Motors only officially launches in 1945. And as of right now, this enormous corporation
employs 52,351 people and has sold more than 10,86,734 cars over its eight decades
of operation (Tata Motors, 2020). Processes for input, carrying out manufacturing tasks,
preparing the product, and finally distributing it to the points of sale are all included in
the production business process.
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1. Task 1: Business Procedures and the Company
The conversion of resources and raw materials into consumable commodities is a part
of the business process. Depending on the product or service produced and supplied to
the client segment, business processes may differ from one firm to another. This section
will analyse the production process at Tata Motors in particular.
1.1 Business Process Map / Flow Chart
TATA Engineering and Locomotive Company (TELCO) was founded by TATA Group in
1945 (Tata Motors, 2021). 2003 saw a name change to TATA Motors. For both middle-
class and upper-class customers, they manufacture cars in the mid-range to luxury
category. Over 25 different locations in India, Europe, China, the United Kingdom, and
North America house Tata Motors' production plants. (Facilities, 2009). Moreover, Tata
Motors is present in more than 170 countries. For ease of comprehension of Tata's
production process, its flow chart is shown in a visual version below. A workflow chart is
essentially a diagram that depicts the many business processes graphically as well as
who is in charge of what task at what stage of the process. SmartArt makes creating it
simple. In essence, it mixes standard shapes and symbols into a work flow to indicate
the sequential completion of tasks from beginning to end. The operations involved in
Tata Motors' business process include ordering raw materials supplies and equipment,
producing the requested items, and then distributing the vehicles.
Press Shop- After collecting raw materials the production process starts in the body
shop, where rolls of cold steel are brought to this facility and processed by an
automated washing, blanking, and stacking line made by a "Heilbronn" company.
Different panels are produced on this machine, which is efficient as well as cost
effective at the same time, at a pace of 34 stampings per minute (Team-BHP, 2021).
Most of the steel used in Tata Motors' cars comes from Posco and Tata Steel. Because
they themselves produce the inputs, steels, TATA Motors gets it at a relatively low price
which helps to minimize cost. Most of these parts are not just bought from any source;
rather, the Indian Head Office's supply chain is used to acquire them which ensures
profit maximization. Thanks to the enormous global network of suppliers and distributors
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that is under the control of the Tata Group, it is now feasible to get all required
components quickly, easily, and affordably. Depending on the type of the automobile, it
takes about 17 to 18 hours to produce it from the press shop to final assembly(Facilities,
2009).
Weld Shop- To begin the operations in the assembly plant, firstly the components and
raw materials are taking out from the warehouse. When the vehicle is finished at the
body shop, the panels are then piled up on stands and transported to the welding shop.
Due to the utilisation of top-notch equipment that was imported from Germany by
businesses like Kuka, HLS, and Nothelfer, the welding shop can create its products at a
lower cost. The majority of the job in the weld shop is carried out by robots, which
enables businesses to increase revenues while simultaneously cutting costs. The
factory produces a total of 1900 corpses in three shifts, with a cycle period of 54 to 90
seconds (Team-BHP, 2021).
Figure 1: illustrates the TATA Motors business production process (Cutout Pro, 2019).
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Paint shop- After the process at the weld shop is finished, the body moves on to the
paint shop, where an automatic robot polishes, paints, and applies a polymer protective
colour coating. This use of robots hugely cuts down the cost which ensuring high
quality. Then, particular colours are painted on the body in accordance with the desires
of the clients.
Engine Shop- In parallel, the parts from the warehouse are also used to construct the
engine and power train. Both are assembled on the chassis assembly line. There are
two shifts in the final assembly factory, and this line has a daily production capacity of
1000 automobiles. Additionally, a car is completed in 67 seconds thanks to the
manufacturing method, which is based on the TQM (Total Quality Management)
concept (Team-BHP, 2021).
Final Fitment and Testing- Along with these time-consuming procedures, the quality of
the output automobiles is continually monitored throughout the process before the
finished product is produced. Even though goods are inspected for quality at each stage
and at the final stage of the process, a separate unit is set up specifically to guarantee
high-quality items. In this location, there are about 5 workers. Additionally, they took the
effort to verify security and quality. The car is then constructed at the dispatch zone
before moving either to inventory or a dealer ship shop.
1.2: Principal/Crucial business Judgments
Considering their total production and distribution processes, major automakers like
TATA Motors must make crucial judgments. Cost reduction and profit maximization are
the two goals of the procedure. Management of locations, research and development of
new models, inventory, pricing, and marketing strategy are just a few of the important
decisions made by TATA Motors.
Management of locations- The global network of the TATA Motors Group, which
consists of approximately 6,600 contact points for TATA Motors and 2,726 merchants
for JLR, spans more than 170 countries (Tata Motors, 2022). TATA Motors also has
other mid-level factories in addition to these extremely large production facilities. The
automaker chose these strategic sites to provide better control over the production and
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marketing of cars and to lower the total cost of their completed goods. Therefore, it is
evident that the bulk of the plants TATA Motors has built are located in places where
labour is cheap and the government offers them a high degree of priority. In the
domestic and foreign markets, Tata Motors Limited sold 81,069 automobiles as of
January 2023 (TATA Motors Sales, 2023). To guarantee a consistent production
process, equipment accessibility, quality control, etc., these factories must be located
strategically. The sites are also strategically important in terms of the accessibility of
trained labour, tax breaks, and transportation, all of which work together to provide
TATA Motors a respectably high profit margin while also ensuring that expenses are
maintained to a minimum.
Research and Development of New Models- Regardless of location, the auto
manufacturing business has a high level of competition. New car sales are currently
declining globally as time passes. In order to sustain a steady growth in sales, Tata
Motors is doing this by spending a significant sum of money on the research and
development of new vehicles. The research & development process may seem to be
costly at first, but in the long term, it gives TATA Motors important information about
how to cut expenses while still boosting profit margins.
Inventory- In order to maintain the right amount of inventory throughout the whole year
and lower the cost of inventory management, Tata Motors must make judgements
regarding its inventory, which is equally important. To do this, the business employs
statisticians to forecast future sales using historical sales data. In this decision-making
process, factors including lead time, manufacturing rate, and customer demand are
considered. In addition to minimising the expenses connected with its inventory, this
might significantly increase the company's profitability. The corporation works hard to
ensure that inventory is properly maintained since it is the asset with the lowest degree
of liquidity.
1.3: Digital Transformation of Business
Digital transformation is the process through which significant changes to conventional
business are implemented. Companies go through a digital transformation by
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incorporating technology into all facets of their business, including inventory control,
human resources, financial analysis, etc. As a result, Tata Motors can use digital
transformation in the mentioned management process.
1.3.1 Inventory Management
Tata Motors can use just-in-time (JIT) technology and the KANBAN method for
inventory control in their management system. This particular technique keeps track of
production and sets orders for new shipments of components and materials utilising
just-in-time (JIT) manufacturing, which lowers the cost of maintaining inventory by
reducing the amount of time it is kept on hand. With the assistance of this digital
system, the business is in a position to combine the procurement of raw materials or
components according to the needs of the market at the moment. As a result, the cost
of storing them for an extended period of time is reduced.
1.3.2 Recruitment
Given that, as is widely known, labour costs account for a significant portion of output,
this digital revolution may also be used to reduce cost in human resource management
and recruitment. There are 78,906 people working at Tata Motors; of them, 23% are
women and 77% are males (Zippia, 2023). Such a large work force may make
maintaining records both time- and money-consuming. If TATA Motors uses software
like Excel and artificial intelligence, they will be able to gain a strategic advantage over
their cost-cutting initiatives. This action will raise labour standards while lowering
operational costs. Additionally, the business may utilize digital transformation to improve
the training time, which will greatly minimize the cost of the training period.
1.3.3 Preserving Customer Data
TATA Motors may also make use of a cloud-based system and specialized statistical
applications to save and analyse customer-related data for later use. Keeping track of
consumer information allows the company to make more informed decisions on how to
operate its operations, service its customers, and serve the market. This helps the
company lower its marketing costs, as well. By doing this, Tata Motors would be able to
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comprehend customer trends and wants. They will be able to expand their business and
maintain excellent standards thanks to this.
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2. Task 2. Data Management Systems
To organize information gathered from multiple sources, TATA motors used Big Data,
Oracle, My SQL, and Microsoft SQL server (The Economic Times Business Verticals,
2022). Business intelligent as well as other software tools from various Software making
organization are also of great importance. TATA Motors may potentially employ
specially created software or tools for their data management requirements.
2.1 Information / Data Management System
A software program called an information management system (IMS) controls how
information is gathered, processed, stored, and shared inside an organization.
Information is used by TATA Motors in every single aspect of its present company.
From production process to sales and human resources are the significant divisions of
the business that utilize information the most. Being a constant player in the worldwide
market, the corporation must cope with a diversified workforce from all over the world
with varying cultures, skills, and motivations (Bartleby research, 2020). Tata Motors
utilizes IMS to save costs at every stage of manufacturing. The system also helps them
find the least expensive component source and ensure a continuous inventory flow,
which gives them a strategic edge. As a result, the business must excel at managing all
phases of human resources management. The BI tool used by TATA Motors' human
resources division is called Hierology. Such technology helps the HR team to store and
analyse database of candidates from past and makes such search of new candidates
easily. The HR team can use technology to analyse how employees are growing in
various departments. It also can keep track of every record of work completed by
employees, as well as their failure rate, absence ratio, and other matrices, thanks to the
information management system. With the help of such a system in the HRM
department, management can keep track of expenses, the number of workers, and
remove redundant data storage to save time and effort on administrative activities. In
addition, these systems have a few benefits, including enhanced data management,
simplified communication, optimized customer relationship management, improved
financial management, and efficient management of human resources.
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2.2 Database Management System
A database is a collection of structured data that is organized, and a database
management system (DBMS) provides an interface for the user to interact with the
database. The database changes depending on the type of business, its products,
department, etc. Both sales and HR are significant sources of organizational data for
growing and supporting businesses. When it comes to hiring, paying, promoting, and
reviewing employee performance, HR as a department works closely with practically
every other department of the company. TATA employs hierology, a business
intelligence technology, to assist the HRM team's analysis and archiving of data. An
employee's personal information, CV, attendance history, working standards, and
training and development information are all stored in a database used by TATA's HRIS
system. This data is utilized to create reports that support the business's strategic
decision-making procedures. On the other hand, a sales database is different from the
HR database. Information about customers, sales leads, sales transactions, and
marketing campaigns is frequently included in a sales database. The information is
used to monitor customer behaviour, sales performance, and marketing efficiency.
These databases are collected from POS points, websites and through paid marketing
campaigns. The sales database is set up to handle a lot of data quickly and efficiently,
as well as for sales data analysis. A sales Data base is very important because it helps
an organization by providing better sales performance, Enhanced customer service,
increased efficiency.
2.3 Big Data for Business
Generally speaking, "Big Data" refers to larger, more complex data sets. Due to their
enormity, these types of datasets simply cannot be handled by conventional data
processing software. Five qualities are often used to define big data: volume, value,
diversity, velocity, and truthfulness. But these massive volumes of data may be used to
use difficulties in business that were previously hard to address (Oracle, 2021). TATA
Motors uses big data to gather data on the movement of traffic as well as the location,
speed, and other driving characteristics of vehicles. In order to make sense of the data
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gathered from users and customers and implement changes, they collaborate with Tata
Insights and Quants (Tata iQ), a Big Data company (Agarwal, 2017). These data are
collected through telematics service.
Figure 2: TATA Motors' usage of big data (Tata Motors, 2021).
TATA Motors employs VICS to determine where there is a problem with traffic. On
major thoroughfares and at the street level, it gives real-time information about traffic
conditions. Titan function has recently become quite popular due to its effectiveness
and effectiveness. Yashwanth Kumar, Head of Analytics and Insight, and other senior
managers and analysts have highlighted the programs' positive aspects. They also
revealed how it was used in a variety of roles and departments (TATA Business
Excellence Group, 2020). Reactivating inactive clients, encouraging them to make
cross-divisional purchases, and encouraging them to make more purchases were all
parts of the customer relationship management approach. It has gradually created a
mature process for campaign management. Titan's analytics services cover
merchandising, retail, manufacturing, financial, and human resources (HR) tasks.
(TATA Business Excellence Group, 2020). Additionally, it is employed to provide
machine learning and artificial intelligence services throughout the company. As time
has gone on, Titan's analytics team has recognized the potential of fusing business
hypotheses with data insights and utilizing analytics as a key factor in driving business
success.
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3. Task 3: Business Intelligent (BL) tools
A sophisticated computer system known as a business intelligence (BI) tool is able to
gather, process, and analyse massive volumes of organized and unstructured data from
both internal and external systems. Some familiar (BI) tools are Microsoft Excel
Tableau, Microsoft Power BI, IBM Cognos Analytics, etc. Among these some of the
tools used by Tata motors are Trintech, Hierologyy, Power BI etc for there unique
characteristics and diverse applications.
3.1 Possibilities for Smart Tools and Systems
TATA motors started investing on BI from early 2010’s. Errors in business transactions
were affecting the company's warehouse information and rail shipments. The Hyperion
dashboard feature of that system enables executives to observe hot spots in their
business units and dig deeper to pinpoint issues and their causes. Employing what-if
research allowed managers to see delivery times in the present. Therefore, market
share for TATA grew by 29.16%.
Tableau: A computer science research at Stanford that intended to enhance the flow of
analysis and increase people's access to data through visualization led to the creation
of Tableau in 2003. (Stedman, 2020). Tata Motors uses it because it promotes
collaboration inside a firm by letting users disseminate data, dashboards, and reports to
others. It also helps them make better data-driven choices by giving them a full
perspective on their data and leveraging that data to drive change. In this, Tata Motors
is given a summary of the market's decision.
Trintech: provides businesses with financial solutions. This program can help TATA
resolve its financial problems. It also instructs Tata Motors on how to reduce operating
expenses. thus, boosting profit margin.
Hireology: It helps the employees to do their toughest work at organization. It aids with
personnel management activities so that the company may increase the effectiveness
of their HR management and save money (Stedman, 2020). Through it, TATA can hire
the best personnel who can support local growth.
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Microsoft Excel: Tata Motors uses Microsoft Excel, one of the most well-known BI tools,
in all areas of their organization. It provides Tata Motors with a mechanism to handle a
significant amount of staff data, sales records, and inventories.
Power BI: TATA motors also use Power BI for Savings and Accuracy. Non-technical
business personnel may acquire, analyse, display, and share data using Microsoft
Power BI, a business intelligence (BI) platform (Stedman, 2020). Power BI is a Microsoft
product, therefore using and implementing it is simpler. Despite having a straightforward
user interface, it is highly useful and strong when compared to other
3.2 Business Intelligent (BI) support
The firm, its competitiveness, its clients, or its other stakeholders may benefit from the
use of the intelligent instruments known as BI. Because the majority of BI are created to
facilitate and improve company processes. These tools are used to maximize resource
utilization in addition to utilizing technical advances. The following details their support:
Competitiveness: Mentioned Business tools helps TATA motors to gain Competitive
Advantage, building Profitable Customer Relationship, ensure better decision making,
preventing fraud as well established better internal control. Tools like Trintech gives
insights about Tata motors overall financial situation which evidently leads to cost
management, increase efficiency, improved data analysis, enhanced collaboration,
better cyber security and profit maximization steps. Companies can automate their
business operations in the future to cut costs by employing these techniques (Stedman,
2020).
Stakeholders: Any constituency that is affected by firms’ performance and decision is
known as stakeholder. TATA Motors can compile reliable performance statistics about
its business and deliver a balanced, full balance sheet by using tools like Excel.
Stakeholders such as Executives can make informed decision with the help of BI tools
other constituencies like Sales and Marketing teams as well as operation team can
easily identify new opportunities and better target their efforts. with the help of the data,
stakeholders keep an eye on the business's performance and make the appropriate
choices regarding their involvement with and effect on the enterprise.
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Customers: TATA can connect the touchpoints of its customers using BI technologies.
The BI tools discussed above enable instant access to a single customer view, ongoing
service case management, and customer purchase history analysis to determine where
a client is in the sales cycle (Stedman, 2020). Additionally, these technologies may help
customers buy the automobiles they want and help businesses analyse customer needs
so they can deliver excellent products.
3.3 Reflection on the BI tools
Although business intelligence technologies are a huge help to businesses, customers,
and stakeholders, they come with a harsh reality. Intelligent technologies are altering
employment rates and raising security concerns, to focus on the larger commercial
regions. Below, we discuss these:
Increasing Unemployment Rate: BI is being used in small and medium-sized
businesses to assist in the management of large amounts of data. Then, in terms of
absenteeism rates at work, it involved designing and creating a web application based
on Business Intelligence (BI) Indicators to pinpoint the reasons behind an increase in
absenteeism rates and examine the link between the high rate of absences and
employees' health and lifestyles. As we know, computer programs can easily
outperform humans. And this same thing happening in many industries. BI is replacing
any educated employees which results in a high unemployment rate.
Increasing Security Issues: Giant Organizations like TATA motors dependent on Power
BI, Trintech, Hierology services to handle essential big data, Additionally, the business
depends on the third party to conduct necessary security measures. Such reliance can
occasionally raise security issues.
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Conclusion
Data analysis' primary goal is to uncover the hidden significance and connections
between data. The analysis entails gathering trustworthy data and researching it to have
a better understanding of the market and the goods and services that should be created
or provided to the target market. The analysis's final output provides a rough prediction
of the future, which may be quite helpful. The paper includes actions for outlining and
analysing a company's business processes, advantages of digitalizing processes,
database management systems, tools, and BI application in a corporation's pursuit of
profit maximization
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