erp iplementation_group6

8/7/2019 erp iplementation_group6

http://slidepdf.com/reader/full/erp-iplementationgroup6 1/3

IMPLEMENTATION

OF

ERP

COMPANY: TATA MOTORS

GROUP 6:-

NAMAN SINGH (75)

RAJAT MANI SHUKLA (38)

MAYANK UPPAL (29)

SAUGATA GIRI (62)

SHEKHAR BOSE (50)



Introduction

Tata Motors is India¶s largest automobile company. The company is the world¶s fifth largest

medium and heavy commercial vehicle manufacturer and the world¶s second-largest medium

and heavy bus manufacturer. The company¶s 29,600 employees are guided by the vision to be

³best in the manner in which we operate, best in the products we deliver and best in our value

system and ethics´ Established in 1945, Tata Motors¶ presence extends across the length and

breath of India. Over 3.5 million Tata vehicles have driven on Indian roads since the first one

rolled out on 1954.The company¶s manufacturing base is spread across multiple plants,

supported by a nationwide dealership, sales and services and spare parts network comprising

of about 1,200 touch points. The company also has a strong auto finance operation, Tata

Motors Finance for supporting customers in purchasing Tata Motors vehicles.

History of IT in Tata Motors

At Tata IT is seen as an important global function. Organizationally it is incorporated into the

management services division. The role of CIO was to identify the need of IT wherever

necessary and implement it. At that time Tata technologies was the IT consultant for Tata

motors and it handled all the issues of the company. If required external consultants were

consulted from relevant area.

Before implementing the SAP ERP Solution, there were several home-grownapplications that managed all of the company¶s IT requirements. Since they were developed

over long periods of time, they were on multiple platforms and hence difficult to merge. The biggest drawback of the legacy applications was that they were function and location specific

and were built on local and individual perception of needs. Common and rationalized processes and practices across all organizational units were not enforced. Therefore,

managing functions like HR, sales and finance across three manufacturing units spread across

the country and their corporate office was tedious and time-consuming. Integrated functionslike materials management and payment processing were separate entities, causing delays in

individual transactions. This led to unnecessary increase in overhead costs and duplicated

efforts at each unit. Tata Motors soon understood that the need of the hour was a unified real

time database that gave up-to-date information to all their stakeholders - both internal and

external. They had to move from their legacy decentralized platforms into a consolidated

enterprise platform and rationalize the business processes across the various units. This

would give them an enterprise perspective both across process and IT infrastructure. The

company could then serve their customers much better and faster, even while reducing

operational costs and cutting manufacturing cycle times.

SAP ERP Implementation:-

Tata Motors outsourced their IT to Tata Technologies, which is their 100% subsidiarycompany. So Tata Technologies became their implementation partner. SAP India also

organized some consulting for them, which had consultants from both India and abroad.Various business processes like materials, finance, logistics, etc. were stripped down

to their basic components and a lot of re-engineering had to be done, as all these processes

became location-independent. Tata Motors also opted for the standard cost functionality, hich

was a significant business process change for them.



The scope of the process were:-

Phase 1

y Pilot implementation covering:

y four locations for selected product categories and

y our vendors each for direct and indirect materials.

Phase 2

y Rollout of mySAP for Direct and Indirect Materials for balance ProductCategories and Vendors covering all locations.

y Also implement Service Procurement, Confirmation, Invoice entry andApproval Modules.

Phase 1 of mySAP implementation was primed by SAP Consulting.

Phase 2 was primed by Tata Technologies Limited

y 1997 : SAP version 3.4 was implemented

y Constrained by the WAN architecture in the country their first

implementation was a decentralized one. They had four servers:

y 3 for their manufacturing plants at Jamshedpur, Lucknow and Pune

y 1 for their sales and corporate services at Mumbai.2003 : upgraded to version 4.6

y Migrated to single server architecture

y Triggered by need to consolidate operations at Daewoo,Korea and

the Pune operations.

y 3000 users, and the company implemented over twenty modules of SAP.

y The range of SAP functionality used is perhaps one of the largest and

successful in the automobile industry worldwide

y Disaster Recovery infrastructure to blend with ERP System

y Seamless integration with Enterprise Applications like PLM and CRM

y Customization:

Enhanced automatic Invoice Verification: 12000 invoices a day, Automated payment and

recoveries for transporters:4,50,000 vehicles annually

Participants: Suppliers, Dealers, Sales & Service Centers and even Bankers

The entire SAP implementation process is headed by theSteering committee

that¶s includes the CEO,CIO and functional heads.

Benefits

With the SAP ERP Solution in place, Tata Motors has experienced significant benefits in productivity and cost control. The number of servers as well as the number of different

applications run on them has been greatly reduced. The disaster recovery management is

being done only for one entity rather than for every application. Non-value-add activitieshave been lowered. The implementation of a single SAP instance forced a much requiredchange in the organization. A BPR to achieve uniform processes with business users talking

the same language was the outcome.There is a significant reduction in inventories and better

control over receivables and other credit control. A shared services platform has also been

created for IT and shared financial services.

Documents

erp iplementation_group6