By Thwishaalika Vasireddy 13184813 05/04/2017 OPERATIONS MANAGEMENT Assessment 1 – Component 1   TABLE OF CONTENT 1. CONTENT 3 2. ANALYSIS 6 3. CONCLUSION 7 4. REFERENCES 8 1. CONTENT 1.1 Company Profile Tata Motors Limited is an Indian multinational automotive manufacturing company founded in the year 1945 headquartered in Mumbai, India. It is a member of the Tata Group. Its products include passenger cars, trucks, vans, coaches, buses, sports cars and military vehicles. Tata motors are India’s leading automobile manufacture which is in the top most 5 manufactures in commercial vehicle in the world. Tata Motors is currently the global player which is not just limited to Indian markets but also started expanding into several International Markets across the world. (Tata Motors.2017). It has also purchased the British companies like Land Rover and Jaguar. TMS is first Indian company which has been listed in the stock exchange in New York. Tata Motors has auto manufacturing in India, as well as in Argentina, South Africa, Great Britain and Thailand. It has research and development centres in India, South Korea, Great Britain and Spain. Tata Motors principal subsidiaries purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo. Tata Motors has a bus-manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat Chrysler which manufactures automotive components and Fiat Chrysler and Tata branded vehicles. 1.2 Supply Chain Management of Tata Motors Supply Chain Management is the most necessary function and is the active management of the organization. The management is the relationship between operations and processes which operates within and also among the company. Supply chain management involves coordinating and integrating these flows both within and among companies. (Supply.2008). Supply chain has a concept of having an internal relationship between the processes and also an external relationship between the operations. Supply chain management at the end it is to achieve maximum customer value and competitive advantage in the market place by active streamlining of a business supply activities. (The Institute for supply management In Wisner, Tan and Leong, 2008, p.8). Tata Motors has operations which produce products is tangible. The automobile organization like Tata Motors produce tangible products like commercial vehicle, passenger vehicle, it also produces intangible which are services. Intangible outputs are the services such as information for safest measures like safe drive, fuel save, end of life vehicle process and as well as other services are provided by the organization to the stakeholder. Any organization has to manage two types of demands. The demands are independent where the management is highly depended on the certainty of the demand and if the demand is assumable it is called dependent demand. Independent demand is not predictable because such kind of demand will not be visible factors (Supply.2008). Logistic Supply chain management is used to gain competitive advantage which was very useful for Tata Motors by outsourcing their logistics to third parties. As, Tata Motors produced commercial vehicles, passenger vehicles, and defence vehicles. Their vehicles are mainly sold to agents, dealers, businesses, and army. They also sell their cars directly to customers like households, company owned showrooms and small business. Tata Motors was mainly trying increasing the deals and also establishing easy accessible service points across the country to provide quality services after sales of the organization. 1.1 Operation Management of Tata Motors Operation management always deal with the main purpose of the business which is to produce products and services. In the case of Tata Motors Operation Management plays a key role , such as seats, steering, clutch pads, etc. which will help to produce or assemble car, information such production process, People such as engineers, designers who will help to design and assemble car, facilities and machinery for the production and assemble different parts of the car. 2. ANALYSIS 2.1 Issues in Operation Management 1. One weakness that Tata Motors faces is its inability to meet safety standards. Although they have made the most inexpensive car out on the market, it has yet to pass all the safety standards which is a legal factor. Some consumers and pessimists inquire as to how Tata Motors can make such a cheap car and withstanding a car accident or not just falling apart after hitting something once. Pessimistic people also want to believe that car manufactures are already doing everything they can to keep costs low for the consumer, and if that is the case, then putting the cheapest car out on the market automatically questions if it is safe to drive. Tata Motors only have been making passenger cars for the approximately last ten years. This can be viewed as a weakness from a customer standpoint since a decade does not seem like a lot to consumers and therefore they will think that Tata Motors is inexperienced car manufacturing. One of the major opportunities that Tata Motor faces is that as of right now 90 percent of China and India's adult population do not own cars, partly because cars are costly and require more expenses after purchased. So the market for a low-priced car is huge which benefits Tata Motors perfectly since they produce the lowest priced car on the market. This is a huge opportunity for Tata Motors because if they can get their feet into that market of people that do not have cars because they cannot afford them, then they will make large profits down the road. 2. To talk about another difficulties in Tata Motor is the JLR acquisition. In 2nd 2008, Tata Motor acquired the Jaguar Land Rover Business from the Ford Motor Company for a net consideration of $2.3 billion. Shortly after the acquisition in 2008, Tata Motors itself noticed itself encumbered with a debt of Rs. 21,900 crore, an unbearable situation for the company who were practically debt free. As the product wasn’t moving and the stock was hitting the bottom at Rs. 126.45 on 20th November 2008. Market capitalization was reduced than what it had paid for JLR. One of the Tata executive said that the “The global slowdown put the company under tremendous pressure because the management of JLR had just separated from one big organization and was attaching itself to another not-so-big group and they were not yet kind of experienced living independently” (2010, November 14). That is when Ratan Tata made it clear that JLR acquisition was never a mistake and it would work out. The fiscal ended in March 2009 where the Tata Motors first showed its annual loss in least seven years. The JLR unit made a loss of Rs. 1800 crore. Cash was the No.1 priority for Tata’s as the JLR was haemorrhaging money and company needed to look help from outside. Since, the JLR did not have cash management system of its own, Tata Motors turned to KMPG consultants. After Tata facing much more issues and JLR was unprofitable. The KMPG consultants then started “cash started to be managed on an hour-to-hour basis— what cheque was going out, what cheque was coming in” (2010, November 14). Then during spring March Munich- based Roland Berger Strategy consultants were to keep tab on the costs. Thus, the only aim for Roland Berger was very simple: make JLR profitable. 3. The last weakness which is mentioned is the leadership changes which was been affected to the sales of the company. Tata Group surprisingly removed Cyrus Mistry of the board. The auto manufacture, which contain of the Jaguar Land Rover in UK and the Tata Motors in India. This is the second largest revenue generator of the company. Ever since then, the Stock has fallen down in the range for 1 to 4 percent each. It was much higher than expected for the fall in the shares is higher than the marginal level. Slowly they gain profit as they have their own new ideas to develop for as everyone are silent because of the Chairman being out. 3. CONCLUSION To conclude, these are the operations management issues of the Tata Motors which is the largest organization out in the market who is established in various fields. There would definitely be problems and also ups and downs for any company. Tata Motors have had ups and as well as down to speak off. Tata Motors has its Statistics up and down for the past few years. It had also acquired the luxury JLR, the Nano is also another issue for Tata Motors which has its own advantages and disadvantages. Last but not the least the leadership has also been a major factor for Tata Motors revenue. In Operations Management there are many issues where the company or an organization faces its own problems because the management is the relationship between operations and processes. 4. REFERENCES Largest Indian Automobile Manufacturer. (n.d.). Retrieved April 05, 2017, from http://www.tatamotors.com/ Philip Kotler, K. L. (2009). Marketing Management. Pearson Prentice Hall. Naresh K. Malhotra, Satyabhushan Dash (2011). Operation managment S L Gupta (2012), sales and Operation management. Shoshanah Cohen, Joseph Roussel(2005), Strategic Supply Chain Management. India's Largest Automotive Industry. (n.d.). Retrieved April 05, 2017, from http://www.tatamotors.com/about-us/company-profile/ Management Discussion and Analysis | Tata Motors Annual Report 2014-15. (n.d.). Retrieved April 05, 2017, from http://www.tatamotors.com/investors/financials/70-ar-html/mda4.html Sood, V. (Ed.). (2010, November 14). How Tata Motors turned JLR around. Retrieved April 07, 2017, from http://www.livemint.com/Companies/UhROXPttBWa40lVOgtS6wL/How-Tata-Motors-turned-JLR-around.html Tata's return fails to cheer group stocks. (2016, December 02). Retrieved April 07, 2017, from http://www.thehindu.com/business/markets/Tata%E2%80%99s-return-fails-to-cheer-group-stocks/article16081526.ece Rossolillo, Nicholas. "3 Reasons Tata Motors' Stock Is Tanking." The Motley Fool. 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