BUSINESS EXCELLENCE MODEL LEARN FROM TATA NANO ( The presentation is collection of comments from Media & my own perception of this Glorious modern day

BUSINESS EXCELLENCE MODEL LEARN BUSINESS EXCELLENCE MODEL LEARN FROM TATA NANOFROM TATA NANO

( The presentation is collection of ( The presentation is collection of comments from Media & my own comments from Media & my own perception of this Glorious modern perception of this Glorious modern day success by Indian Enterprise ) day success by Indian Enterprise )

Tata Nano- Business excellence Model

• We see all the ingredients of Business Excellence indicated above in TATA NANO

• “Innovation”, Over 40 International Patents filed.

Many Innovations is bound to exert Pressures from Customers for Other Automotive Companies offering higher cost models.


• “Leadership”, Tata was exhorting the team to dream of

building a low-cost car that would cost only marginally more than a two-wheeler and revolutionize personal transport in India. Only in a country like India or Pakistan can a low-cost car be made he insisted. After the Launch at Delhi Pargrathi Maidan Rata Tata Said

‘A promise fulfilled and a Dream realized ‘

YOUTH POWER: The average age of the 600-member team that delivered the Nano is a mere 30


• ” Agreed Direction” A car for the common man in not more

than USD 2500 – RS 1 LAC“ Mr Tata was present at every

testing and he made all the decisions. He was very focused on what the customer would like’’.


• “ Partnership with Vendors” – LEAN PRINCIPLE IN ACTION – Long term

collaboration with all vendors , suppliers, service providers and working in partnership with them to realize the Goals

• “ Aligned People / Team” ‘Make me also part of the team. I am one of

you and I will be happy to assist you in whatever way I can ‘ -- Ratan TATA


• “ Team Work “ Team of Over 900 Engineers, Managers, Vendors,

other service providers worked as a very close knit and harmonious team to realize this great achievement.

When Tata engineers began making the Nano, it was seen as an act of faith

What they have accomplished is an act of courage

• NANO is the making of a Modern Classic - Times Of India


• “People Focus” Top TATA Management personally

ensuring people focus for all those directly or indirectly associated with TATA NANO Project and resolving all related issues.

“ People are our key assets and I have utmost faith in them that they will achieve our dream “ RT


• ” Processes and Systems” Processes and System driven by the

Team responsible for ‘ TATA BUSINESS-PROCESS-EXCELLENCE MODEL ‘

• “ Culture” Of course the CORE TATA

Professional Management Culture


• “ Efficiency” A direction pursued across all TATA Enterprises

• “ Lean Principles “ Lean In Action! What else!! Ingredients of LEAN

MANAGEMENT are seen as 1) Long Term Thinking, 2) Concern for Social Welfare, 3) Top Management Commitment, 4) Team Based approach 5) People Empowerment, 6) Partnership with Vendors, 7) RESPECT for people, 8) INNOVATION 9) Aim for Perfection


• “ Knowledge Management Principles” KM approach pursued for the NANO Project with all

Partners ,Vendors, Service providers in an environment of Knowledge Sharing Culture , creating Knowledge Repository, enabling effective REUSE where applicable…….This Process is driven by TATA BUSINESS PROCESS EXCELLENCE MODEL…

• “ CSR – Corporate Social Responsibility “ CSR is a Core Policy across all TATA Enterprises . MORE

EMPHASIZE in TATA NANO with clear policy statement ‘ Our aim in TATA Nano shall be more towards SHARING WEALTH and social well being than ,

profit making ‘

.

Tata had told a Financial Times correspondent on the sidelines of the Geneva Auto Show that he was thinking of making a car that would cost about € 2,000. Adjusted against the then exchange rate of the rupee, that translated to Rs 1 lakh. Tata says he had never really defined the project in his head exclusively by its pricing. “It was the media that said it,” says Tata. “But we decided to accept the challenge….” With that resolution, Tata imprisoned himself and his engineers in a promise to fulfil which they would have to all but rewrite the principles of automotive engineering.

“ A promise fulfilled and a dream realized “ said TATA when our Correspondant met him …….

Financial Times U K reports ……..

TATAs have shown the world what Indian engineering is truly capable of….

UNION MINISTER FOR COMMERCE AND TRADE Mr KAMALNATH at the Launch of TATA NANO at AUTO EXPO DELHI ……..

“ This day will go down as a red-letter day in Indian automotive history. We should be proud on our achievement and what we have shown to the World…”

“ There is a lot of Learning from Tata's Nano. It is an excellent show piece of Indial low cost Engineering Skills

The innovations of the $2,500 car carry important lessons for the Western executives “

BUSINESS WEEK during launch of TATA NANO at AUTO EXPO

BUSINESS WEEK during launch of TATA NANO at AUTO EXPO reports…

More fundamentally, the engineers worked to do more with less. The car is smaller in overall dimensions than the Maruti, but it offers about 20% more seating capacity as a result of design choices such as putting the wheels at the extreme edges of the car.

BUSINESS WEEK during launch of TATA NANO at AUTO EXPO reports…

The Nano is also much lighter than comparable models as a result of efforts to reduce the amount of steel in the car (including the use of an aluminum engine) and the use of lightweight steel where possible. The car currently meets all Indian emission, pollution, and safety standards, though it only attains a maximum speed of about 65 mph. The fuel efficiency is attractive—50 miles to the gallon.

LONDON TIMES during launch of TATA NANO at AUTO EXPO reports…

This new car TATA NANO represents real innovation and Indian Engineering Skills

Too often, when we think of innovation, we focus on product innovation using breakthrough technologies; often, specifically, on patents. Tata Motors has filed for about 36 patents associated with the design of the Nano, which contrasts with the roughly 280 patents awarded to General Motors (GM) every year.

Business Week Report A Modular Design Revolution in TATA NANO

The most innovative aspect of the Nano: its modular design. The Nano is constructed of components that can be built and shipped separately to be assembled in a variety of locations. In effect, the Nano is being sold in kits that are distributed, assembled, and serviced by local entrepreneurs

Business Week Report A Modular Design Revolution in TATA NANO

As Ratan Tata, chairman of the Tata group of companies, observed in an interview with The Times of London: "A bunch of entrepreneurs could establish an assembly operation and Tata Motors would train their people, would oversee their quality assurance and they would become satellite assembly operations for us. So we would create entrepreneurs across the country that would produce the car.

“ We would produce the mass items and ship it to them as kits. That is my idea of dispersing wealth. The service person would be like an insurance agent who would be trained, have a cell phone and scooter and would be assigned to a set of customers."

In fact, Tata envisions going even further, providing the tools for local mechanics to assemble the car in existing auto shops or even in new garages created to cater to remote rural customers.

A Modular Design Revolution in TATA NANO

What are the broader lessons that Western executives should learn from this TATA NANO innovation story?

Emerging markets are a fertile ground for innovation. The challenge of reaching dispersed, low-income consumers in emerging markets often spurs significant innovation. Western executives should be careful about compartmentalizing the impact of these innovations on the edge of the global economy.

What's initially on the edge soon comes to the core

Find ways to help customers and others on the edge to tinker with your products. Modular and open product designs help engage large numbers of motivated users in tailoring and pushing the performance boundaries of your products, leading to significant insight into unmet customer needs and creative approaches to addressing those needs.


Pay attention to institutional innovation. Western executives often become too narrowly focused on product or process innovation. Far higher returns may come from investing in institutional innovation - redefining the roles and relationships that bring together independent entities to deliver more value to the market. Tata is innovating in all three dimensions simultaneously.


Rethink distribution models. In our relentless quest for operating efficiency, we have gone for more standardisation and fewer business partners in our efforts to reach customers. As customers gain more power, they will demand more tailoring and value-added service to meet their needs. Companies that innovate on this dimension are likely to be richly rewarded.


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BUSINESS EXCELLENCE MODEL LEARN FROM TATA NANO ( The presentation is collection of comments from Media & my own perception of this Glorious modern day