OPTIMISING THE PRODUCTION ENVIRONMENT An Intelligent Approach Towards Assessing Total Cost of Ownership

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1 OPTIMISING THE PRODUCTION ENVIRONMENT An Intelligent Approach Towards Assessing Total Cost of Ownership SOURCING

2 PRODUCT DEVELOPMENT IS AT THE CORE OF EVERYTHING WE DO We empower our clients to make their product dreams a reality by designing, engineering, validating and industrialising better products. Unlike any other organisation in our sector, beyond engineering and product development, we've had the curiosity to pursue the optimisation of end to end manufacturing. The result is a complete understanding of the benefits associated with the digitalisation of modern manufacturing. Architected well, the complete product realisation lifecycle is a virtuous feedback loop designed to embrace the data that supports the continuous improvement of better products. Engineering, Research & Development

3 WHY TATA TECHNOLOGIES? Tata Technologies leverages over 25 years of cumulative knowledge and experience to help the world's leading manufacturers to create great products and to select, deploy and adopt the technologies that underpin the entire product realisation lifecycle. Drawing on a combination of people, process and technology, we drive efficiencies and innovation to help our clients meet the design, engineering and production challenges. CONNECTING THE MANUFACTURING ENTERPRISE Connected Enterprise IT solutions from Tata Technologies enables businesses to optimise the application of technology for the manufacturing sector, removing critical data discontinuities and enabling a platform for the complete digitalisation of modern manufacturing. Our vast experience of product development and manufacturing engineering helps provide enterprise-wide visibility of the key performance indicators of seamless manufacturing execution. CONNECTED ENTERPRISE IT (CEIT) SOLUTIONS Enabling smart connected factories Delivering global solutions for digital manufacturing Extending the digital lifecycle into effective manufacturing with ERP, MES, SCM, CXM, businesswide analytics and intelligence, complemented by world-class Application Maintenance Services (AMS) Other legacy IT systems Capacity to Create Process to Create Manufacturing Enterprise IT Sourcing

4 VISIONING PROCESSES. REDEFINING STRATEGY. OPTIMISING YOUR PRODUCTION ENVIRONMENT FROM STRATEGY THROUGH IMPLEMENTATION AND BEYOND Businesses today operate in the real world, where there starting point for product realisation maps out the future are limited resources, compelling needs and real supply chain optimised for each stage of production. competitors that form a part of the evolving ecosystem. Strategic sourcing the process of improving and re- An Intelligently Different sourcing strategy can significantly evaluating business related purchases and their lower the cost of goods and provide sustainable procurement is therefore necessary. This allows an improvements in procurement and sourcing that translate organisation to become more efficient and effective directly to the bottom line for businesses. over a period of time and stave off any process inadequacies. Strategic sourcing, considered as the

5 Reporting Solutions Standard Reports and Dashboards KPI Measurement/ Operational Intelligence Notifications SMS Alerts AMS Multi Level Support Onsite Offshore Onsite/Offshore Mixed OUR VALUE PROPOSITION Solution Design and Implementation Approach ASAP PRINCE2 RDS Consulting Strategic Sourcing Contract Management Requisition Payment Spend Analysis SAR CoE Solution Roll-out Multisite Roll-Out Platform Migrations Program/Project Management Change Management Integration Capabilities ECC-ARIBA ECC-SRM ECC-Connect Partner LEADING EDGE 25+ years of close association with automotive, aerospace and industrial heavy machinery manufacturing organisations enable the specialised team of practitioners from Tata Technologies to manage and support the entire sourcing program. Our highly experienced practitioners improve operational efficiencies thereby providing cutting-edge consulting and implementation solutions for strategic sourcing. Driving operational excellence goals for an organisation combining technology and domain expertise, our specialised practitioners implement solutions for complex problems and provide information in real-time. IMPROVED PERFORMANCE THROUGH BUSINESS METRICS 10% 10% 85% Reduction in material price i.e savings using ebidding tool Reduction in inventory Plus excise posting and invoice posting achieved through automation 20% 40% Reduced cycle time by reducing cycle time in communication Reduced total cost of ownership using online auction 40% Improvement in turnaround time of vehicles 60% 100% 60% Reduction in time required for Design Release to Contract process of parts for NPI projects Control on budgetary cost deviation for NPI projects eliminating cost overruns Reduction in manpower on account of cost, by improving communication and transactional efficiencies Sourcing

6 SERVICE OFFERINGS Procurement Procurement Business Intelligence Supplier Portal Benefits Management e-requisitioning Contract Compliance Catalog Based Procurement Procurement Performance Management Master Data Management Spend Analysis Online RFQ Processing for Direct and Establish Source of Supply Indirect Material Auction Reverse and Forward Contract Lifecycle Management Drawing and Document Collaboration Automated Invoice and Payment Processing Category Management Strategic Sourcing Category Strategy Category Strategy Outsourcing Outsourcing Total Cost of Ownership Total Cost of Ownership Implement Category Strategy Implement Category Strategy Monitor Category Strategy Monitor Category Strategy

7 BETTER SOLUTIONS. BETTER OUTCOMES. Supplier Base Management Supplier Evaluation Supplier Relationship Management Supplier Performance Evaluation Contract Management Supplier Development Supplier Quality Product Part Approval Process (PPAP) and re-ppap Automated Issue Management System (AIMS) Supplier Delivery Optimisation Supplier Cost Reduction Supplier Exit Supplier Relationship Transformation Risk Management Product Development Supply Chain Risk Management Project and Portfolio Management Category and Commodity Risk Management Module (PPM) Sustainable Procurement Event Tracking System (ets) Module Supplier Risk Management Capital Budgeting(eCAPEX) Module Integrated Cost Management(eICM) REACH Compliance Sourcing

8 OUR STRATEGIC SOURCING FRAMEWORK Our Strategic Sourcing solutions ensure optimised supply chain by streamlining processes. Implementing strategic sourcing solutions that can significantly lower the cost of goods and provide sustainable improvements in procurement and sourcing that translate directly to the bottom line for businesses. We develop customised line-of-business applications to meet the organisation's business objectives and ensure quick and cost-effective implementation. Objectives Reduce Cost of Ownership Symmetric to Business Objectives Improved Business Outcomes and Focus On Sinewy Processes Best-in-quality, Flexible and Industry Benchmarked Solutions Industry-Wide Coverage Enablers Transform Realise Enable Enablers Inputs People Domain Experts Process Owners SMEs Business Workshops Deliver Transformational Opportunities Opportunities for Improvements Strategic Inputs Tools Connect Partner Ariba SAP SRM Work streams Process Quality Delivery Matrices Plan Execute Verify Business Analysis Service Efficiency Implement Process Improvement Proposal Service Practice SAP Java.NET Infrastructure Scalable Data Center Secured ODEC Blueprint Gap Analysis Deliverables Process Improvement Proposal Enhanced Productivity Industry Practice Automotive Aerospace Industrial Heavy Machinery Jump Start Launch Operational Excellence Strategic Solutions Tata Technologies Differentiator Specially developed solution fitment to cater to varied industries Resource and technical expertise across large scale automotive OEMs Consult-Implement- Change Management Methodology till benefit realisation for client World-class delivery models (Onsite/ Offshore/Nearshore) Customised pricing models (Outcome based/pay-as-yougo/savings realisation)

9 KEY DRIVERS TO SUCCESS ACCELERATING PROGRESS. DRIVING RESULTS. Large customer network across the value chain Value management methodology, including benchmarking with peers /competitors and a business case to support business process and KPI Man years implementation experience Experienced employees on multiple projects Registered as a VAR partner for SAP Single preferred partner for a large number of OEMs for rolling out sourcing transformation programs Sourcing

10 VALUE DELIVERED Tata Technologies was instrumental in supporting the automaker in increasing sales of its new product line and populate the sales pipeline, through customised predictive and consultative models that enhanced lead generation activities. THE COMPANY An Indian multinational automotive I would like to appreciate the efforts of Tata Technologies in the SRM manufacturing company headquartered in program at our organisation. Tata Technologies has been with us in the business capital of the country and a our SRM journey right from the stage of inception and we consider subsidiary of one of the largest Indian them to be our strategic IT business partner. The SRM program began conglomerates that manufactures and with a few hundred users and has grown to a mature stage consisting assembles vehicles across its plants across of over 3000 vendors. We are glad to associate with Tata the country. Technologies, since it has been with us through thick and thin and has enabled a successful implementation. Chief Information Officer, A leading Indian multinational automotive manufacturer

11 CHALLENGE The client needed to constantly improve operational efficiency and reduce time-to-market for new product introduction and the sourcing solutions projects had multiple challenges to deal with, such as: Lack of uniform and standardised processes across business locations RESULTS Visible reduction in cycle time across Design Release to Contract/Process Stages, i.e. from three months to 15 days Delays in non-purchase processes like bid list approval and technical review leading to status forfeiture Disintegration with the PLM system resulting in incorrect or at times absent engineering drawings Improved level of productivity due to increased throughput and reduction in cycle time Nonstandard and non-uniform documentation of purchase interaction with the supplier base Absence of an automated Delegation of Authority (DoA) approval process SOLUTION Implementation of SAP Supplier Relationship Management (SRM) Enterprise Buyer Professional (EBP) suite to tackle the above mentioned challenges and streamline all necessary and pivotal processes. Sourcing

12 ABOUT TATA TECHNOLOGIES Tata Technologies, founded in 1989, enables ambitious manufacturing companies to design and build better products through engineering services outsourcing and the application of information technology to product development and manufacturing enterprise processes. With over 8,500 professionals, representing 28 nationalities, Tata Technologies focuses on the manufacturing industry - covering every aspect of the value chain from conceptualisation, manufacturing, aftermarket and maintenance repair overhaul support. Tata Technologies supports clients through engineering services outsourcing, product development, IT services and product management solutions. Tata Technologies serves clients in 27 countries, with a delivery model specifically designed for engineering and IT engagements that offers a unique blend of deep, local expertise integrated with 16 global delivery centres across Europe, North America and Asia Pacific. 8,500+ Professionals 3 Regions Europe, North America, Asia-Pacific 16 Global Delivery Centres Detroit - Novi, Detroit - Troy, Chicago (USA), Coventry & Bristol (UK), New Delhi, BlueRidge Pune, Hinjawadi Pune, Bengaluru & Thane (India), Bangkok (Thailand), Brasov, Craiova & Iasi (Romania), Shanghai (China) and linkedin.com/company/tata-technologies NORTH AMERICA W. Eleven Mile Road Novi, MI USA Tel EUROPE The Enterprise Centre Coventry University Technology Park Puma Way, Coventry, UK CV12TT Tel. +44 (0) ASIA-PACIFIC 25, Rajiv Gandhi Infotech Park Hinjawadi, Pune India Tel Making product development dreams a reality since Copyright 2016 Tata Technologies. All rights reserved.