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Content
How things changed at TML in general and Foundry in particular
New Realities
01
New unprecedented challenges at TML and TML Foundry
Challenges
02
Challenged by Uncertainty at many avenues, opportunities identified
Opportunities
03
Steps taken to tackle the situations and turn the business profitable
Transformation Journey
04
05
Summing Up
Viewpoints on steps taken
06
Way To Success
Summary and Winning Decisively
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2.80 3.00 3.30 3.40
2.80 2.70
0.69 0.71
0.86 1.00
0.72 0.57
0.00
1.00
2.00
3.00
4.00
5.00
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
In
millions
Market Size – Sales Volume
PV CV
Vehicle sales was already showing downwards trend since FY 2020 and Covid
made it more worse. It was very challenging time as sales and demand were at
all time low, revenue was at threat of being zero and cash burn was at
threatening level.
COVID affected us in very worst manner possible, it took away our precious gems
and family members of organization. We, at TATA Motors, value people more
than business and it was a shock to us and challenge too, to protect our
employees when we were resuming operations. Many safety measures and
covid precautions at work place became new normal
Workplaces, offices and canteens were places
were people shared their times and was no
restriction. It changed after reopening. Social
distancing measures, staggered canteen timing,
no public transport for coming to offices, reduced
manpower/rotation of manpower became new
normal.
Digitization was adopted at pace. From
meetings to attendance inquiry, from
trainings to leave application and
salary slip, everything went online.
Focus on industry 4.0 increased due to the
lessons learnt from Pandemic. Smart factories
can be operated remotely with optimized
workforce and work content reduction.
Many projects completed of this kind at TATA
Motors. E.g. thermal analyzer and alarm
escalation in foundry for furnace shell
temperature.
Sales
Employees
Manufacturing
Technologies
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Engineering
Operations
Employee
Morale
Human Resources
Liquidity
Financials
Shut down of
Manufacturing:
With Lockdown in force
across the country, TML has
to shut down its
manufacturing plant at all
locations.
With ease of lockdown
measures by government,
manufacturing resumed but
with quarantine and social
distancing measures in place,
it was challenging to produce
vehicles.
Engineering:
New products designing, modelling, integration and
prototyping faced a roadblock due to closing of physical
sites, supplier’s site closing and non availability of team
due to lockdown and quarantine measures in place.
Supply Chain:
China and other countries being the major the auto
component supplier, supply chain disrupted badly
due to trade and legal barriers set by government.
Domestic suppliers also suffered to fulfil the
demand due to raw material shortage. Along with
this social distancing measures limited the
production capability of domestic parts suppliers.
Employee Engagement:
Lockdown confined the employees into their
homes leading to disconnect from the
organisations and learning. BSVI was
launched recently and continuous learning of
employees were hampering
Employee Morale & Health:
Depressions, uncertainty about health of self
and family members, Uncertainty about job
and salary put biggest assets of organisation
on risk.
Resuming of operations was equally risky as
threat of spreading infections inside
organisation was still there.
Sales and Marketing:
Sales was already plunging in FY 19-20, COVID
made it worse. Demand went to decade lowest
and posed a serious threat to the existence of
business.
With physical showrooms and ad campaign on
halt, made marketing of new launches and BSVI
tougher.
Financing:
With uncertainty in
economy, plunging
demand, stressed
spending by consumers,
stress on banking system,
fear of recession made
the financing of new
vehicles tougher and it
lead to very low demand
of vehicles.
Liquidity:
With nearly zero revenue during lockdown
and no near sight relief lead to cash burn
from organisation. Organisation was in
serious threat of running out of cash flow and
more debt ridden.
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Strategy
•Newer Avenues-Differentiating capabilities
in terms of Cost reduction, Policy
management etc.
•Business Restructuring – Identifying less
profitable business areas, high revenue
generating businesses and smart
investment
•Product Portfolio restructuring- Identifying
customer needs from untouched market
areas, and developing products catering to
those customers. With less dependence on
public transport a big market was there for
personal vehicles
Operations & Supply
Chain
•Redesigning the workspace for efficient
utilization of space
•Future ready supply chain network –
Reducing dependence on foreign suppliers
for auto parts and developing domestic
capabilities for critical parts production
•Smart goals and decisions – Data Driven
decisions to decide on operations cost
optimization, holding strategic
investments.
Workforce
•HR policy restructuring – Keeping in mind
that COVID will stay for long Policies to be
framed futuristically for remote working,
health support, salary and perks, leaves
etc.
•Skill training to workforce : Multi skilled
workforce development will prove to be a
vital cog for the future development.
•IT and shared services infrastructure
development - Building capable IT
infrastructure for remote working need s
and minimum human interference.
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RESPOND RESET REBOUND
Manufacturing
1. Safety Measures Strengthening
Before Restart
2. Equipment and Machines Health
Check Up before restart
1. Backup plans for sudden
health emergencies, track
and trace employee
movement
1. Investment in new technologies.
2. Cost effective manufacturing projects
to be taken
3. Industry 4.0
Human Resources
1. Safeguarding Employees
Welfare (health, salary etc.)
2. Communication and
Engagement with Employees
1. Managing Employees
Productivity
2. Skill Developments and
Training
1. Step towards resilient organisation –
TQM approach and other policy
management
2. Use of IT for better HR experience
Sales and Marketing
1. Engaging with customers
2. Smoothen the experience of
customer from Offline to Online
transformation
1. Setting up remote processes
and use of IT
1. Innovate new sales model/ direct sales
models
2. New product portfolios – such as CNG
and EV in Commercial vehicle Space
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1.Marking at workplaces to
maintain social distancing
2.Separation by white boards
in canteen.
3.Attendance by
swiping IR cards in place of
biometrics
4. Sanitisers and soap
solutions at workplace
1. Complete check up of all machineries one
week before restart.
2. Trial runs to check any errors or malfunctions
in machines
1. Awareness sessions in plant for employees
2. Employee tracking through Aarogya bot in
telegram.
3. Regular health tacking and employee
movement tracking divisionwise
4. Ramp up of medical facilities at TML Hospital
1. Rigorous cost saving drive through VAVE
and DMCR.
2. Steel CFT for reduction of Steel usage in
vehicles.
3. Casting CFT to increase yield of all cast
parts and weight reduction of cast parts
in vehicles
1. Investment in smart and more
product efficient machines.
2. Installation of LAEMPE cold box
core making machines in Foundry
for core making.
1. Focus on connected machines.
2. Use of data analytics to build smart factory,
e.g. use of remote pyrometer in Foundry for
pouring temperature recording,
3. Use of thermal analyser to detect and control
shell temperature of furnace.
Manufacturing
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Employee
Care
Employee
Morale
Employee
Engagement
1.Online
Trainings of
employees
through MS
Teams on BSVI
and other new
technologies.
2. Various online
activities to keep
employees engaged
such as essays,
blogs writing etc.
3. Regular updates
about organization
through online
mode, suggestion
schemes for
employees for
tackling situations
through online
mode.
1.New culture
credo of TATA
Motors to uplift the
employee morale.
2. Sanitizers, Nose
Mask, Soaps at
plant made readily
accessible at all
areas to make
employees feel safe
and secure.
3.Accolades for
employees in
monetary form,
who perform
exceptionally well.
1. Launch of TML
Aarogya bot to
keep track of
employees health
through telegram.
2.Vaccination drives
across the locations
for employees and
their families.
3.To support
families of
deceased
employees, launch
of compensation
policy.
Online Meetings and trainings
Vaccination
and
Testing
Support
DRISHTI – Online HR
activities
Accolades for boosting Employee
morale
Suggestion Schemes – online for
all employees
Employee Engagement
Through Various online
activities
Human Resources
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Offline-Online Integration
1.Click to Drive initiative – End to end
digital sales initiative giving real feel
of vehicle to customers
2. Online sale of CV through
bookonline.tatamotors.com
IT infrastructure for R&D
1.Digital composition methods
along with compact idea
simulations for modelling and
styling while WFH
2.Common database building for
across the location team and low
data consumption.
Marketing Initiatives:
1.#ThankYouIndianTruckers
initiative.
2.Video release of new products
on social media to spread the
word
Customer engagement-
1.Using various online platforms
2.Connecting with customers over
phone calls, emails, whatsapp etc.
Support to Customer
Community:
1.Free sanitizer, mask and food
to truck drivers during COVID.
2.Extended Warranty and free
service to customers
1 2 3 4 5
Online Sales Platform
ThankYouIndianTruckers
Customer Engagement through
various initiatives
Engineering Development
and R&D from WFH
Extended Warranty
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Culture Credo :
COVID was once in a lifetime unprecedented event and
it needed a equally strong response from us to emerge
as winner. TATA Motors went for complete culture
overhaul of the organisation and launched Culture
Credo. It enabled us to Be Bold, Own the problems,
Solve it together, and being empathetic towards other.
In our opinion it is a game changer as it has lifted the
morale of employees multiple folds and set us on a fast
paced journey.
Online Meetings and Trainings: IT
development
Online meetings and trainings has given
flexibility to the working style and
timing to TATA Motors. During offline
meetings there were some inhibitors
which has been removed by this. Cross
location meetings and discussions,
timely attendance and effectiveness has
been increased
ACCOLADES and Recognition:
Earlier there wasn’t any monetary reward system in
TATA Motors. But organisation took it as opportunity and
introduced the ACCOLADES. Now every employee’s
smallest contribution to the company is being noticed
and rewarded. This has acted as a boost to the morale of
employees and helped in improving productivity.
New LAEMPE core making
machine
Industry 4.0 project at
Foundry
Investment in new technologies:
1. Laempe core making machine installed in foundry to
increase the capacity of Foundry, this will leverage us
to produce more vehicles and capture more markets
during demand pickup.
2. Process control improvement at Foundry by installing
thermal analyser and laser temperature sensor.
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Marketing Initiative:
#ThankYouIndianTrucker was launched during the time of
COVID and it was well received by the audience and
customers and it created a hype in market about the TATA
Products.
We are very sure it had and will generate more demands
for the TATA vehicles.
Online – Offline Integration
Launch of Click To Drive was one of the best innovation
during COVID. It created a bigger market place for TATA
Motors and opened the door of untouched markets.
With fear of COVID decreasing the use of public
transports , demand of personal vehicle was rising and it
was very apt timing to get the market acquisition.
Engineering and R&D:
With use of digital composition methods, faster roll out of
new products launches were made possible. Apart from this
utilisation of software product licenses increased by 25
percent due to more efficient work from home and online
work model.
Customer Engagement
With various initiatives TATA Motors tried to remain engaged with customers and with this
organisation also tried to spread awareness about the COVID and prevention from it. We
think that it connected the people with TATA and it touched the heart of Indians that “we are
doing Business but not for Business.”
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HR Policies and IT
1. Culture Credo launched to uplift morale.
2. Digitization – Online Meeting, Training
3. Drishti App – One stop solution for all HR activities
4. Accolades- Monetary awards and recognition to
promote quality works
Sales and Marketing
1. Thank You Indian Truckers – an one of
its kind marketing initiative to address
the drivers community during COVID.
2. Extended warranty – To support
customers.
3. Click to Drive – Leveraging IT to
integrate online – offline car buying
experience
Coming Out As Winners
1. Gain in Market Share and Sales
volume increased across CV and PV
2. TATA Motors won Best Use of
Video marketing on social Media
Platforms by Play digital media.
3. TATA Motors awarded CV
manufacturer of the year award by
Apollo.