Tata Motors Ltd - Spare Parts & Services Division (Commercial Vehicles)

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Tata Motors Ltd. | Transforming spares supply chain using Theory Of Constraints

TATA

The world's top pig iron producer set a new record in blast furnace shutdown: completing the task in just 23 days, which is against the norm of 45-50 days, and at only 87% of the budgeted cost.

Tata Metaliks Ltd

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Vector’s Engineering &amp; Construction consulting practice, offers tailored solutions for Engineering, Procurement and Construction (EPC) companies, enabling them to identify and address constraints in project execution and operations that may hinder their sales growth and profitability.&nbsp;By implementing a unique Flow Management approach in its consulting assignments for construction projects, Vector has enabled clients such as Skipper Ltd., Bajaj Electricals (Engineering &amp; Projects Division), Godrej (Electricals &amp; Electronics Division), Tata BlueScope Steel Ltd., and KEI Industries Ltd. to complete projects ahead of schedule while increasing the number of projects executed within the company's allocated operating expenses.

An Engineering and Construction (EPC) company’s ability to grow and sustain sales and profits is limited by constraints in Project Management and Sales.

Consulting Services for Engineering and Construction Businesses

The growth of project organizations dealing with turnkey projects involving engineering, procurement and site construction has slowed down despite healthy demand because they operate in a highly uncertain environment (ROW issues, bureaucratic hurdles, etc.) Find out how companies can not only manage but also flourish in spite of these challenges.

Industries

Engineering & Construction

Success in projects: Lead times decreased by 25%, manufacturing output increased by 15%, and engineering productivity improved by 25%.

Tata Bluescope Steel Ltd

Vector has developed bespoke solutions for equipment manufacturing or custom manufacturing companies to help them identify and address constraints in operations, sales, spares &amp; services, or new product development that limit consistent sales and profit growth.&nbsp;Working with companies like Laxmi Machine Works (LMW), Godrej Material Handling, RPG Raychem, Kirloskar Oil Engines Ltd. Bajaj Electricals (Luminaries Division), amongst many others, Vector has helped clients bring about excellence in equipment delivery, turbo-charge their sales &amp; business development efforts and set new benchmarks in after-sales services.&nbsp;

An equipment manufacturing or custom manufacturing company’s ability to grow its sales and profits consistently is limited by constraints in the following areas like Operations, Sales, Spares and Services and New Product Development:

Consulting Services for Equipment Manufacturing Companies

Analyses of top custom manufacturing companies, including manufacturers of capital goods and custom manufacturers of machinery and equipment, which design a product and make to order, show that only a handful have realized healthy sales, profits & ROI in the last decade.

BA industries

Equipment Manufacturing BA

industries

Equipment Manufacturing

A breakthrough using Flow thinking in New Product Development doubled new product output, while overall production increased by 30%.

Tata Toyo Radiator Ltd

Vector’s unique solutions for auto OEMs and auto components manufacturers help them overcome constraints that hinder their organizational performance in new product development, manufacturing, distribution and sales.&nbsp;Over the years, Vector has worked with companies like Tata Motors – Commercial Vehicles (Spare Parts &amp; Services Division), Ashok Leyland, International Tractors Ltd. (Sonalika Tractors), Fleetguard Filters, JK Fenner (India) Ltd., TVS Motors and Royal Enfield to set new industry benchmarks in operational performance in different areas of business.

We offer consulting services to organizations engaged in manufacturing and distribution of automobiles or auto components. Our consulting methodology focuses on identifying the leverage point of an organization for intervention.

Auto OEMs & Auto Components Consulting Services

Auto OEMs, auto part manufacturers and auto aftermarket players constantly struggle with the auto industry's highly cyclical nature, i.e. an economic boom is generally accompanied by high sales, while sales usually suffer during economic downturns.

Auto and Auto Components

Vector’s unique solutions for auto OEMs and auto components manufacturers help them overcome constraints that hinder their organizational performance in new product development, manufacturing, distribution and sales.&nbsp;&nbsp;Over the years, Vector has worked with companies like Tata Motors – Commercial Vehicles (Spare Parts &amp; Services Division), Ashok Leyland, International Tractors Ltd. (Sonalika Tractors), Fleetguard Filters, JK Fenner (India) Ltd., TVS Motors and Royal Enfield to set new industry benchmarks in operational performance in different areas of business.

Tata Motors Ltd is the world's 17th-largest motor vehicle <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/research-and-publication/articles/auto-supply-chain-in-india-a-mishmash-of-push-and-pull-methods/">manufacturing </a>company, the fourth-largest truck manufacturer, and second-largest bus manufacturer. The company’s commercial vehicles spares business has partnered with Vector Consulting Group since June 2014 to build an agile <a target="_blank" rel="noopener noreferrer" href="https://www.vectorconsulting.in/en/research-and-publication/articles/spare-the-trouble/">supply chain</a> capable of delivering superior customer service. Strong after-sales service and excellent availability of genuine parts are crucial to driving vehicle sales. Ensuring spares availability for commercial vehicles is a significant challenge due to the vast variety of parts (potentially 1,20,000+) across a portfolio that includes trucks ranging from sub-tonne vehicles to 49-tonne mass movers, and passenger transporters from five-seater mini vans to 81-seater buses. Since it is necessary to maintain this extensive variety of parts over the long lifespan of vehicles (7+ years), Tata Motors, like most players in this segment, was operating with very high inventory levels and long lead times. By implementing the ‘pull’-based replenishment model (as opposed to the conventional forecast-based model) across 893 vendors and 200 dealers for 26,367 parts, which account for 95% of sales, the spares business has transformed its operations. &nbsp; The following benefits were achieved:&nbsp;

Tata Motors Commercial Vehicles improved central warehouse availability to 94% and saved Rs 10 Crs annually in freight costs by reforming spare parts operations.