TATA MOTORS

Tata Motors Ltd. is a multinational company, based in Mumbai, India. It is part of the Tata
Group and formerly known as Tata Engineering and Locomotive Company. Tata Motors is
the largest automobile company in India, with consolidated revenues of $ 20 million in 2009-
10. Tata Motors is number one in commercial vehicles and among the best players in the
sector of passenger vehicles. Tata Motors has produced compact cars, segments of mid-size
vehicles and utility. The company is the largest manufacturer of heavy trucks in the fourth
place, a global manufacturer of buses in the second place, and employs 50 000 (2010)
workers. Since its launch in 1954, Tata Motors production is over 4 million vehicles, in India
alone. Tata Motors implemented SAP-SRM project for end to end supply chain integration
(from Purchase, Supply, production, payment etc.). Major areas of improvement are in
inventory management, procurement management, resource planning, supply chain
management, logistics and production scheduling in the operations department. In Finance
module SAP ERP has helped in consolidation of general cost, credit control, day-to-day
billing etc. In Human Resource Department they have implemented a uniform and single
platform for over 50,000 employees. Overall all the departments and processes are integrated
at all levels. Production employees could now work on real time basis as they have access to
the data base of the company. They are also more closely controlled and approach able to
updated processes across the manufacturing plants spread all over the world.

For Tata Motors SAP setting up in the whole automotive industry worldwide has made
possible connect and cooperate within themselves. Tata motors are aiming to enhance their
business portfolio as they are planning to implement Sap application for all IT processes but
leaving out Customer Relationship Management (CRM) and Product Life-cycle
Management.(PLC).

SAP ERP PLATFORM

SAP ERP is an enterprise resource planning software developed by the German

company SAP SE. SAP ERP incorporates the key business functions of an organization. The
latest version (SAP ERP 6.0) was made available in 2006. The most recent Enhancement
Package (EHP8) for SAP ERP 6.0 was released in 2016.

Business Processes included in SAP ERP are Operations (Sales & Distribution, Materials
Management, production planning and Quality Management), Financials (Financial
Accounting, Management Accounting, Financial Supply Chain Management), Human
Capital Management (Training, Payroll, e-Recruiting) and Corporate Services.

DEVELOPMENT

An ERP was built based on the former SAP R/3 software. SAP R/3, which was officially
launched on 6 July 1992, consisted of various applications on top of SAP Basis, SAP's set
of middleware programs and tools. All applications were built on top of the SAP Web
Application Server. Extension sets were used to deliver new features and keep the core as
stable as possible. The Web Application Server contained all the capabilities of SAP Basis.

A complete architecture change took place with the introduction of mySAP ERP in 2004. R/3
Enterprise was replaced with the introduction of ERP Central Component (SAP ECC). The
SAP Business Warehouse, SAP Strategic Enterprise Management and Internet Transaction
Server were also merged into SAP ECC, allowing users to run them under one instance. The
SAP Web Application Server was wrapped into SAP NetWeaver, which was introduced in
2003. Architectural changes were also made to support enterprise service architecture to
transition customers to a Service-oriented architecture.

IMPLEMENTATION

SAP ERP consists of several modules, including Financial Accounting (FI), Controlling
(CO), Asset Accounting (AA), Sales & Distribution (SD), Material Management (MM),
Product Planning (PP), Quality Management (QM), Project System (PS), Planned
Maintenance (PM), Human Resources (HR). SAP ERP collects and combines data from the
separate modules to provide the company or organization with enterprise resource planning.

Typical implementation phases:

 Phase 1 – Project Preparation

 Phase 2 – Business Blueprint
 Phase 3 – Realization
 Phase 4 – Final Preparation
 Phase 5 – Golive Support
Companies planning to implement or upgrade an SAP ERP system should pay strict attention
to system integration to save their SAP ERP implementation from failure. With system
integration in place, data flows move completely and correctly among various SAP ERP
components, thereby not only streamlining business processes but also eliminating or
minimizing redundant data entry efforts

MARKET STUDY:

Advantages of SAP over other ERP solutions:

 Market Leader in its segment.

 Package suited for Tata Motors.
 It had a readymade process for auto manufacturers therefore, customization
requirement is less.
 Allows easier global integration (barriers of currency exchange rates, language, and
culture can be bridged automatically)
 Updates only need to be done once to be implemented company-wide
 Provides real-time information, reducing the possibility of redundancy errors

Objectives for SAP in TATA Motors:

 To improve revenue collection from sales

 To reduce application of efforts and increasing efficiency.
 To reduce cost by improvement in operations area.
 To increase productivity.
 To give timely and appropriate response to the customers.
 To downsize business processes across all manufacturing units.
 To develop platform for organization wide communication.
 Most importantly cost reduction in various departments.
 To have proper inventory management system to reduced inventory.
 To synchronize production scheduling with sales of product.
Significant benefits achieved by Tata motors due to SAP ERP solution implementation:

 Increase in productivity and cost control.

 Reduction in number of different application runs on them as well as the no. of
servers.
 Introduction of disaster recovery management done for one entity.
 Significant reduction in the number of non-value-added activities.
 With the implementation of SAP, a Business Process Reengineering was also initiated
to achieve uniform process with all business users.
 There is an efficiency increase in inventory management and check over receivables
and other credit control.
 SAP has created service platforms for IT, Human Resources and Financial Services,
due to this there has been reduction of almost 2 weeks time in financial
consolidations.
 SAP Solution has also helped Tata Motors to meet all their customers’ needs and
service them better.
 Since the information is on real time basis, Tata motors are able to respond timely to
their customers, vendors and suppliers demands.
 There will be better control on receivables and credit control.
 A single unified database
 Procurement process from various vendors will be automated.
 There is catalogue content management which helps in coordinating with suppliers.
 Streamline procurement process management among different locations worldwide.
 Quick and live auctions for competitive pricing.
 Transparency in the process for supplies and payments status to suppliers through
portal is achieved.
 Higher negotiation power due to the availability of all the data of the world..
 Parts validation through spend control and analysis.
 Keeping records of daily billing (invoices), receivables, and sales.