Project Management Tata Nano

IILM INSTITUTE FOR HIGHER EDUCATION

Module Instructor: Ms. Rajkumari Mittal Work done by: Aasif Iqubal, Akshat Mehta, Alapatti Sriram, Anjini Reddy, Kumari Shanta, Vishnu Vg

We express our sincere thanks to our teacher Ms. Rajkumari Mittal Maam for extending support & providing us with this unique opportunity to explore academic interests in the field of Project Management. It has been very enriching & enlightening experience to work under their valuable guidance. We would like to thank our faculty for the knowledge they have shared in compiling the project and extended guidance. Perfect & precious guidance, hard work, single-minded dedication and full encouragement helped us to complete the project study successfully. We are also thankful to those who helped intellectually in preparation of this project directly or indirectly. Aasif Iqubal Akshat Mehta Alapatti Sriram Anjini Reddy Kumari Shanta Vishnu Vg

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This report is submitted after complete study on the subject Project Management undertaken in the Elective course of our curriculum. The project was executed in order to understand the Project management concepts through the project Tata Nano. We, Shanta, Aasif, Akshat, Alapatti, Vishnu, Anjini; Students of IILM Gurgaon, 1st year, have undergone careful Research on various factors of a Tata Nano project management. This is our original work and has not been submitted earlier to IILM or to any other Institution for the fulfilment of the requirement for any course of study. We also declare that no chapter of this manuscript in whole or in part is lifted and incorporated in this report from any earlier/other work done by us or others.

Place: Gurgaon (Haryana) Date: 27th August, 2013

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Tata Motors history started in the middle of 1900s. Tata Motors was established as Tata Engineering and Locomotive Company Limited (TELCO) in the year of 1945. The main aim of the company was to manufacture locomotives and engineering products. After three years of its incorporation, it launched a steam road roller in association with the UK based Marshall Sons. Tata Motors Limited is Indias largest automobile company, with revenues of US $32.67 billion in 2012. It is the leader in the commercial vehicles segment and comes among the top three in passenger vehicle segment with winning products in the compact, mid-size car and utility vehicle segments. Tata Motors is the worlds fourth largest truck manufacturer and second largest bus manufacturer in the world. In March 2008, Tata Motors acquired Fords UK based car brands Jaguar and Land Rover (BBC News, 2008). Achieving all the milestones, the founder Mr. Ratan Naval Tata (Chairman of Tata Group), felt that there is a need for an innovation in the automobile sector of Tata. And as a dream Nano came into the existence. According to Mr. Ratan Tata TATA Nano has got to do something for Indians and the transport system. Unavailability of good transport and poor quality of mass transport is a common problem in India. The scenario where a father is driving a two wheeler with his elder child standing in front and wife sitting behind holding a baby is normal in this country. This is a relatively an unsafe mode of a family transportation. Hence, with this idea in mind Tata Nano was created as a safer form of transport. RATAN TATA. The above statement makes clear how the idea for an affordable vehicle car was generated in the mind of Tata.

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The incorporation of Tata Nano got a huge public and media attention due to the reason of being low price target. According to The Financial Times report: "If ever there were a symbol of Indias ambitions to become a modern nation it would surely be the Nano the tiny car with the even tinier price-tag. Nano is a triumph of homegrown engineering the $2,200 (1,490, 1,186) Nano encapsulates the dream of millions of Indians groping for a shot at urban prosperity." After the launch of Nano it was believed that the car is expected to boost Indian economy by creating several entrepreneurial opportunities across India and it will also expand the Indian car market by 65%. The car is a visionary dream of Mr. Ratan Tata, Chairman of the Tata Group and according to him it as an eco-friendly "people's car". Tata Nano got a good appreciation by many sources and the media since its launch for its low cost and eco-friendly initiatives that include using compressed-air as fuel and an electric-version (E-Nano) car. The Cost-cutting features of Tata Nano include the following technical specifications: The Nano's trunk is only accessible from inside the car as the rear hatch does not open. A windscreen wiper instead of the usual pair has been incorporated. There is no power steering, unnecessary due to its light weight. There are three lug nuts on the wheels instead of the usual four. There is only one wing mirror. Radio or CD player is optional (the idea picked on some basic car models in North America) There is no airbags on any model. The car has 624cc rear engine with 2 cylinders only.

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No air conditioning in base model (as on most basic car models in Europe and North America

The project management process comprises of all the phases required to design and deliver specific projects to consumer mass. The Nano project started in the year of 2003. The project was assigned to Mr. Girish Wagh (Vice President & Head Small Car Project of Tata Motors), the key figure in Tata Nano project. He was the leader of a 500 member team developers of Nano. The key concept in the mind of team behind the project was to maintain the low price target of the car.

Tata Nano project followed several planning element, some of them are listed below: Safety standard (properly designed and built car) Power Affordability STP (Segmentation Targeting positioning)

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Tata Nano has segmented the target customers and positioned Nano on the basis of following variables used: Geographic: Target geography of Nano are both rural and urban Demographic: family size & income. Behavioral: On the behavioral basis Nano was aimed to be benefit & user status. Target Market: Target market include two wheeler segment, second hand car user, auto rickshaw market, middle and lower income group people. Positioning: Positioning of Tata Nano was done in the minds of consumer as Peoples car. Strategic options: Strategic targeting was focused on undifferentiated marketing.

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To define a project is an important aspect of project, as this stage needs to collect proper information which is used throughout the phases of project life cycle in order to meet the needs of all stakeholders. Clear definition of a project helps to measure the performance against the strategic plan of the organization. There are some steps needed to follow in order to define a project: To define the scope of the project: In the project scope we need to define the project objective, deliverables, Milestones, technical requirements, limits and exclusions and customer feedback. Establish the project priorities: The priorities for the project are decided by project priority matrix. To create WBS (Work Breakdown Structure): Once the scope and deliverables are defined the whole project work is divided into smaller work elements. Integration of WBS with the organization is the step after WBS is created.

Here we have created the WBS of Tata Nano project. The WBS comprises of three level deliverables which finally clubbed to get work packages.

MS Project sheet of WB Have to attach file ms project

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For Tata Nano project we have clubbed the list of activities that included in the project management process with the total duration consumed in the particular process.
List of project activities Market Research Manufacturing site selection Preparing planning document Total project cost estimation Submission of application Application Approval/Disapproval G e t t i n g Notification Prototyping the model Designing Standards Obtaining permission Issue Tender for raw material Procedure of material Preparing manufacturing Site Constructing Foundation Constructing Plant Starting up manufacturing Commissioning production Testing product First public Appearance Duration 81 days 26 days 31 days 36 days 07days 16 days 10 days 363 days 153 days 22 days 07 days 61 days 20 days 25 days 130 days 12days 11 days 41 day 07 days

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Activity task schedule- MS Project Have to attach file

Gantt chart- MS Project Have to attach file ms project

Key component suppliers of Nano are setup to get the maximum benefits of their low cost technologies that made the worlds cheapest car a reality, with global biggies such as NissanRenault , Toyota, VW and Honda approaching them for parts for their low cost cars.

Tata Nano Car was designed at Italy's Institute of Development in Automotive Engineering. Stages in designing the car are listed below: To Benchmark existing products and perform trend analysis

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Set targets for the project Finalize the of style and packaging of the project Engine design Body, trims and fitments, and other aggregates assembling Manufacturing of prototypes Test of prototypes Finalize the design selected. Near about 80 percent of the cars equipments were outsourced from more than 100 vendors. Some vendors are from the Tata Group such as Tata Ficosa , Tata Toyo Radiators, Tata Visteon, Tata Yazaki, Tata Ficosa, TACO IPD etc. Apart from TATA Group there are other vendors also like, Dephi, Caparo, Bosch, Continental AG, Denso, FAG, SaintGobain, Mahle, HIS Auto, TRW, GKN, Ficosa, and Visteon. The car is assembled by the trained mechanical experts with the outsourced parts of the car.

Project quality is an essential element in the manufacturing and designing phase of a project. Quality management has to be followed in the areas such as: Technical specifications Design parameters Safety norms Marketing strategies

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Pricing Tata Nano has incorporated several quality management standards in the Nano project. Some of them are listed below: Eco friendly variants and initiatives of Tata Nano Electric driven train or electric version of the car.

T a t a N a n o f o l l o w s t h e s a f e t y p a r a m e t e r s as per cars specification as well as the production safety parameters Parameters for Specification are The electric version of Tata Nano consists of an airbag system. Tata Nano has sheet metal body with crumple zones, intrusion-resistant doors, seatbelts, strong seats and anchorages and tubeless tires as safety features i n c l u d e d t o its specification. P a r a m e t e r s f o r production safety are Helmets, Gloves, Goggles for the workers Electrical Safety measures Fire safety measures Distance between the machinery

Proper monitoring and control mechanism helps the project to complete with ease and

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delivered to mass. As far as Tata Nanos process monitoring and control is concerned, here are the key areas that require consistent monitoring and controlling to be done: For Market Research work the true data has to be collected as per the precise research results are extremely needed to complete a good project. Site selection is an important aspect that needs to be monitored properly in order to avoid further obstructions. Designing Standard and specifications of the project should be monitored to satisfy the consumer needs. Control the price of raw material, as raw materials are the substrate for the manufacture of product. At last, Manufacturing has to be monitored to give the project final outcome.

Tata Nano complies with Bharat Stage-III and Euro-IV emission standards. The car has passed the testing procedure of frontal crash and the side impact crash Tata Nano passed the required 'homologationtests with Pune based Automotive Research Association of India (ARAI). Tata Nano got to score around 24 km per litre during its homologation tests with ARAI.

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There are more than 100 vendors contributing to the Tata Nano. Proper allocation of resource is very important factor of the resource management. Here is shown the supplier and their products, these are the part of the Nano project

Tata has done a strategic site implementation. When the project got hampered in Singur, Tata decided to start and set up the plant in Sanand, Gujarat. There are

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advantages of the Sanand site selection cities like Rajkot (near to Sanand) where near about 30% of Nano's components are manufactured. Another site administration network includes the satellite plant at Pant Nagar where assembly lines of Ace Truck have been modified to produce Nanos.

The project to deliver worlds cheapest car has started in 2003 and it completed with all the specifications met. The car was presented by Indias TATA Motors at the 9 th annual Auto Expo on the January 10, 2008 in Pragati Maidan in New Delhi, India. Commercially the Tata Nano got launched on 23rd March 2009.

Every project faces certain challenges which results into the increase delay time as well as cost enhancement of the project. Tata Nano project in the same way faced certain challenges while production schedules. The main obstacles or constraints for the projects are listed below: As the project was planned according to the delivery of a low cost car but the rising cost of materials affected the project and the share price started depreciating which created difficulty for Nano project. The other main problem faced by Tata Nano was the delay time of the project as the whole plant got to relocate to the other place and there was risk associated to the new manufacturing and it took time to get settle over there.

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The biggest hurdle for the project was the controversy of Singur plant, West Bengal. There was a fear in the mind of people that the farmers and the environment will get affected due to the start of manufacturing plant on the fertile land. There were lots of protests done against this. The final outcome came out as Tata had to relocate the plant to Gujarat (Sanand plant). This relocation affected the project by dallying it as well as the money invested in the Singur plant (1500crore) was wasted due to the controversies. The other limitation faced during the project was by the product development as they had to work with a huge limitation of Rs 1 lakh constraints.

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Emerging and developing markets are fertile ground for such innovations as Nano performed. The challenge to fulfill the demand of the low income category helps the project to deliver the huge mass consumer base in the future and Tata Motors have understood and explored this challenge to become the leader. As consumers gain more power they tend to demand more tailoring and value added services to meet their need or expectations. The organization that meets the requirement gets competitive advantage. After 100 years to Henry Ford era Tata Nano has given a new platform to the consumers to explore more opportunities.

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Tata Nano project has got huge appreciations from not only India but globally also. Despite the obstacles and challenge or controversies from the country people the car has delivered as the peoples car fulfilling all the expectations of the consumers. There were certain facts that we came across such as the Singur plant issue which delayed the project. These hurdles would have been identified in the beginning of the project as a part of market research. Because as a planned project perspective it is necessary to identify and mitigate these kind of risks. There were some communication issues as well. The car Nano was positioned as it was a cheap car rather than an innovative car. And in a country (India) where ownership of a car is considered to be aspirational, it was not the right brand statement to be projected. Many people use to say like as they cannot afford anything else so they thought to buy a Nano. The shareholders of Tata seemed to be little unhappy as due to Nano the share prices of Tata Motors decreased. Hence, as a project perspective there is needed to be fully packed with all sorts of things starting from the initial project planning to the final delivery stage.

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We would like to conclude the project as only one statement that Tata Nano is an exemplary project and a beautiful example of re-engineering work done. The project target was clear and it delivered to the people as peoples car. The project has shattered many myths of people such as cheap is unsafe, rear engine cars are not safer to use, the cheaper engine will pollute the environment (623 cc engine produces comparatively lesser carbon dioxide than normal small car) etc. So from a project perspective we can say that Tata Nano has presented an innovative aspect of small affordable car with comparatively lesser cost.

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 Gray, Larsen; Project Management; 4th Edition;2010 http://www.tatamotors.com/ Jessie Scanlon; What Can Tata's Nano Teach Detroit?; Bloomberg Businessweek; March 18,2009 The Making of Tata Nano - NatGeo Channel The Tata Nano case- Making of the World's Cheapest Car; ICMR Overdrive Team, Network18; Tata Nano: The innovations by the team; March 19,2009 Shirin kumaana-wadia; Game Changer: The TATA Nano Story; Parsi Khabar;May 3, 2010 Indrajit Gupta & R Sriram; Interview with Ratan Tata: Making of Nano;The Economics Times;Jan11,2008 Nandini Sen Gupta & Sumit Chaturvedi; Global biggies to source parts from Nano vendors for low-cost models;The Economics Times;Nov 19,2009 Tata Nano changes low-cost development;Engineering;Automotive News Chanchal Pal Chauhan; Nano may steer clear of Sona, eyes cheaper option; The Economic Times;April 07,2008 http://www.tata.in/company/Media/inside.aspx?artid=yDqY06emZOw= The past, present and future of Tata Nano;Rediff.com;15June,2011 Milestones achieved under Ratan Tata;Business today Magazine;28 December,2012 Tata Nano Singur controversy; Little car, big conflict; Bases Wikki Magazine N. Madhavan; Nano: The blemish on Ratan Tata's otherwise brilliant run; Business Today magazine;29 January,2013 Matt Eyring; Learning from Tata's Nano Mistakes; Harvard Business Review; January 11, 2011 Ernst & Young was one of the largest professional services firms in the world. It was founded in 1989. (Source: http://en.wikipedia.org) "Will the Nano Change India's Auto Industry'," http://business.rediff.com, March 25, 2009

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