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Tata Auto Plastic Systems Ltd

About Company:

TAPS is the auto component vendor company of the Tata Group. It is oneof 12 operating subsidiary of Tata Group.

Offerings:

Plastic interiors & exteriors, air vents, dash boards, door pads, bumpers,and trims etc. for automotive industry

Achievement:

TAPS has won GM Supplier of the Year 2003

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Product & Services

It is engaged in design, development, manufacture and supply ofinterior and exterior plastic parts to global majors

It is a QS 9000 and ISO 14001 certified company

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Strategy of Tata Auto Plastic Systems

Breakthrough results = Strategy Maps+ Balanced Scorecard+ Strategy-Focused Organization

Its internal competencies build around two strategic themes: CostLeadership and Innovation

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Vision and Mission

Mission:Exceed the expectations of our customersExcellence in technology and engineering

Core Values :

Simplicity, Frugality, Integrity, Respect and Harmony

Vision: To evolve globally as a value creator for automotive customers byspecializing in cost cutting through Engineering solutions and SupplyChain Management

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Tata Auto Plastics Systems (TAPS) trategy Map

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Financial Measures

O b je ct i ve s Me a su re s

F i n a ni alP e r s pe c t i ve

:F1 Increase ROCE Return on capital employed

:F2 Increase Customer Base Number of new OEMs

Sales from new OEMs

:F3 Increase business with existing customer ( )Sales turnover fromexisting OEMs

Sales of new products withexisting OEMs

:F4 Build export business Sales from export business

:F5 Maximize asset utiliztion Asset turnover

:F6 Become industry cost leader /Operating cost sales

Cost reduction achieved over,standard cost by product

family

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Customer Perspective Measurses

O b je ct i ve s M ea s u re s

C u s t oe rP e r s pe c t i ve

: - -C1 Preferred low cost full service-supplier of hight value added

products and services

( )Value of request for quotes RFQs-received as full service supplier of

modules of systems

( -Value of oders as FSS Full service)suppliers

:C2 Full program management atsignificantly lower cost and shorterlead times

Value of RFQs obtained for full program

Value of orders obtained for fullprogram

:C3 Provide value for money throughtlow cost manufacturing that meetsword class quality and delivery

expectations

Cutomer satisfactin index. .Number of quality issues raised in J D

power report

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Internal Perspective Measures

Objective s Measures

InternlPerspective:P1 Build competency to integrate

/components to achieve module suppliesCapability index

:P2 Upgrade manufacuring process toachive customer expectations on quality

levels

Part per million customer rejects

:P3 Upgrade delivery process capabilityto meet delivery requirements of Indianand overseas customers in a cost

effective manner

,Percentage delivery compliance on time infull

Capability index

Reudction in logistics cost compared tostandard cost:P4 Optimize use of assests and build

.process to minimize operation costOverall equipment effectivenessMaterial cost against standard cost

Energy cost as percent of salesDirect labour cost as percent of sales

:P5 Excel in customer relationshipmanagement

Relationship index

:P6 Build partner relationship toupgrade technology and expand business Number of new technologies aquired throughrelationshipsGrowth in turnover through partner

relationship:P7 Improve capabilities in design

,tooling testing and project managementCapability index

Year to year reduction in lead time forproduct development

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Learning & Growth Perspective Measures

Ob j e ct iv e s M e as ur e s

L e a r nn gn dG r o w tP e r s pe c t i ve

:L1 Create climate foraction throught alignment

and empowerment

Number of employees whose key performanceappraisals are linked to strategic objectives

Empowerment index

Number of Key business Processes empowered to lowerlevels

:L2 Build competencies Strategic skill coverage ratio

:L3 Integrate IT in allbusiness process

Percentage of processes covered by IT

IT effectiveness satisfaction survey

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RESULTS

TAPS executives are using the Balanced Scorecard to balanceexpectations among its various stakeholders

The strategy map and scorecard have brought clarity andalignment so that the organizations is now focused in keystrategic performance areas

Various initiatives linked to scorecard have become morefocused and have resulted in teams achieving much better results

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EXAMPLES

TAPS industry cost leadership objectives in the financial perspectivehelped it identify various measures to control cost, such as the ratio ofoperations cost to sales and cost reduction achieved over standard cost

A focused review of the performance on these measures on a monthlybasis has identified areas for improvement.

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Contd...

The objective of building competencies in the learning and growthperspective led to identifying knowledge and skill gaps in key functionalareas

The company has developed a road map to bridge the gaps

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hank youerry Christmas