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TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 1
IT needs of Automotive industry
30th April 2010
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 2
Slide 2
TVS Motor Company• 3 manufacturing units• One vehicle rolled-out every 10 seconds
PT TVS Motor Company - Indonesia• 1.5 lakh vehicle capacity• In-house designed
Sundaram -Clayton• Three manufacturing Units• 8 warehouses in USA and Europe
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 3
Slide 3
Harita Seating Systems• Seats for Two-wheelers to Trains• 4 manufacturing units
Sundaram Auto Components• High precision Plastic and Rubber components• 5 manufacturing units
Harita NTI• Bio degradable plastics, Petroleum from plastic wastes • Corrosive preventive applications
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 4
Slide 4
OEM – Supplier challenges
OEM – Supplier collaboration
Multi disciplinary engineering
Globalization
Reduced development
budget
Reduced development
cycleQuality issues
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 5
Slide 5
Daimler
Honda
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 6
Slide 6
Daimler
Honda
Different folks
different strokes
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 7
Slide 7
Ancillary
OEM
Ancillary 3
Ancillary 2
Customer centric processes
Ancillary OEM Dealer Customer
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 8
Slide 8
Data exchange on delivery
ASNs
Invoice data
Quality compliance
Barcode
Post delivery
Payment
WarrantyContinuous improvementService
General
DMSVMI - vendor managed inventory
OEM production sch.Traceability – fitment in vehicle
Ancillary customer centric processes
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 9
Slide 9
Strength and Opportunities
• Lean production capability• Low cost skilled workforce• Leaning from exports• Deep pockets / brand image Basic ERP in placeCollaboration toll – portal based
Ancillary customer centric areas
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 10
Slide 10
Weakness and threats
• Variance processes and formats
• Lack of visibility in supply chain
• Absence of common portal for OEMs
• Speed – Lead time is still high
• Poor documentation culture
• Not first time right
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 11
Slide 11
A typical voice of ancillary• Account holders are compelled to download GRN, order schedules and
other data, customer by customer • Item requirements are given by both, verbal and written messages. • Some OEMs insist on barcodes attached to invoices, adding to labor
work. - different process by different OEMs• Lack of details in remittance advice from customers, do not give
invoice wise data and details of deduction at the item level, leading to considerable reconciliation work.
• Bank reconciliation process could be improved or eliminated if OEM payment details are available through the Real time gross settlement scheme.
Direct data exchange between OEM and T1 ??
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 12
Slide 12
Penetration needed……
Operational• Standardized formats and data exchange• Cloud based :
– ERP for SMB– FEA tools– Messaging
• Cost effective mobile applications
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 13
Slide 13
Few challenges…..
• Building adequate bandwidth in IT for managing this framework– High attrition rate– Combination of business – IT skill
• Devoting significant amount of time for IT by Business leadership team and next level – Innovation of today is infrastructure of next year– Business looking use IT as strategic intent
• Maturing IT practices through rigorous PDCA and institutionalizing these practices across enterprise
Issues internal
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 14
Slide 14
Few challenges…..
• OEM – ancillary collaboration
• Ancillary supplying to many OEMs
• Role of logistics
• Sharing of best practices
• Need for high transparency
• Sub optimization
Issues across industry
TVSM / Operating Plan / Board / 21-Apr-2009Slide no. 15
Slide 15© SAP Summit 08 / Page 15
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